Document:

Exhibit 10.1

          [*] indicates that a confidential portion of the text of this
            agreement has been omitted and filed separately with the
                       Securities and Exchange Commission.

                        JOINT VENTURE FORMATION AGREEMENT

                                  by and among

                           NC-M CHASSIS SYSTEMS, LLC,

                           DAIMLERCHRYSLER CORPORATION

                                       and

                              METALDYNE CORPORATION

                          Dated as of December 8, 2002

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                                TABLE OF CONTENTS

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                                    ARTICLE I

                                   DEFINITIONS

1.1       Definitions........................................................1

                                   ARTICLE II

                             CONTRIBUTION OF ASSETS

2.1       Contribution of Assets............................................15
2.2       Excluded Assets...................................................17
2.3       Issuance of Units.................................................18
2.4       Assumption of Liabilities.........................................18
2.5       Excluded Liabilities..............................................19
2.6       Nonassignable Assets and Approvals................................20
2.7       Opening Balance Sheet.............................................21

                                   ARTICLE III

                     SALE AND PURCHASE OF TRANSFERRED UNITS

3.1       Sale and Purchase of Transferred Units............................22
3.2       Purchase Price for Transferred Units..............................22

                                   ARTICLE IV

                                   THE CLOSING

4.1       Closing...........................................................22
4.2       Closing Deliveries of Seller......................................22
4.3       Closing Deliveries of the Company.................................23
4.4       Closing Deliveries of Metaldyne...................................24

                                    ARTICLE V

                    REPRESENTATIONS AND WARRANTIES OF SELLER

5.1       Due Incorporation.................................................24
5.2       Due Authorization.................................................25
5.3       Consents and Approvals; No Violations.............................25
5.4       Financial Statements..............................................25

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5.5       Conduct of Business...............................................26
5.6       Title to Properties...............................................27
5.7       Sufficiency of Transferred Assets.................................27
5.8       Real Property.....................................................27
5.9       Personal Property.................................................28
5.10      Inventory.........................................................28
5.11      Engineering and Development.......................................28
5.12      Intellectual Property.............................................28
5.13      Contracts.........................................................29
5.14      No Defaults or Violations.........................................31
5.15      Governmental Approvals............................................31
5.16      Insurance.........................................................31
5.17      Employment and Labor Matters......................................31
5.18      Capital Improvements..............................................32
5.19      Taxes.............................................................32
5.20      Product Claims and Product Warranty...............................32
5.21      Environmental Matters.............................................33
5.22      Litigation........................................................34
5.23      Brokers...........................................................34
5.24      Customers and Suppliers...........................................34
5.25      Health and Safety; Asbestos.......................................35
5.26      Disclosure........................................................35
5.27      No Other Representations or Warranties............................35

                                   ARTICLE VI

               ADDITIONAL REPRESENTATIONS AND WARRANTIES OF SELLER

6.1       Due Formation.....................................................36
6.2       Due Authorization.................................................36
6.3       Consents and Approvals; No Violations.............................36
6.4       Capitalization; Title to Units....................................37
6.5       No Liabilities....................................................37
6.6       Brokers...........................................................37
6.7       No Other Representations or Warranties............................38

                                   ARTICLE VII

                   REPRESENTATIONS AND WARRANTIES OF METALDYNE

7.1       Due Incorporation.................................................38
7.2       Due Authorization.................................................38
7.3       Consents and Approvals; No Violations.............................39
7.4       Subsidiaries; Equity Investments..................................39
7.5       Capitalization....................................................40

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7.6       Metaldyne SEC Documents...........................................41
7.7       Financial Statements..............................................41
7.8       Conduct of Business...............................................42
7.9       Insurance.........................................................43
7.10      Litigation........................................................43
7.11      Outstanding Debt..................................................43
7.12      No Undisclosed Liabilities........................................44
7.13      Brokers...........................................................44
7.14      Investment Company Act............................................44
7.15      Registration Rights...............................................44
7.16      No Other Representations or Warranties............................44

                                  ARTICLE VIII

                                    COVENANTS

8.1       Implementing Agreement............................................44
8.2       Access to Information and Facilities..............................45
8.3       Consents and Approvals............................................45
8.4       Use of Name.......................................................45
8.5       Transfer Taxes....................................................46
8.6       Publicity.........................................................46
8.7       Preservation of Business..........................................46
8.8       Tax Matters.......................................................48
8.9       Maintenance of Insurance..........................................48
8.10      Title Insurance...................................................49
8.11      Survey............................................................49
8.12      Financial Statements..............................................49
8.13      Further Assurances................................................50
8.14      UAW Agreement.....................................................50
8.15      Demolition........................................................51
8.16      Baseline Environmental Remediation................................51
8.17      Intellectual Property Licenses; Discussions Regarding
              Ownership of Certain Intellectual Property....................52
8.18      Notification of Certain Matters...................................54
8.19      Cooperation on Subsequent Litigation..............................54
8.20      Board Approval....................................................54
8.21      Finalization of Exhibits..........................................54

                                   ARTICLE IX

                CONDITIONS PRECEDENT TO OBLIGATIONS OF EACH PARTY

9.1       Governmental Approvals............................................55
9.2       No Adverse Proceedings............................................55

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                                    ARTICLE X

                     CONDITIONS PRECEDENT TO OBLIGATIONS OF
                             THE COMPANY AND SELLER

10.1      Accuracy of Representations and Warranties........................55
10.2      Compliance with Agreements and Covenants..........................55
10.3      Certificates......................................................56
10.4      Requisite Consents................................................56
10.5      No Metaldyne Material Adverse Change..............................56
10.6      Board Approval....................................................56

                                   ARTICLE XI

                CONDITIONS PRECEDENT TO OBLIGATIONS OF METALDYNE

11.1      Accuracy of Representations and Warranties........................56
11.2      Compliance with Agreements and Covenants..........................56
11.3      Certificates......................................................57
11.4      Contribution......................................................57
11.5      Requisite Consents................................................57
11.6      No Business Material Adverse Change...............................57
11.7      Board Approval....................................................57

                                   ARTICLE XII

                                   TERMINATION

12.1      Termination.......................................................57
12.2      Effect of Termination.............................................58

                                  ARTICLE XIII

                                 INDEMNIFICATION

13.1      Survival..........................................................58
13.2      Indemnification by Seller.........................................59
13.3      Indemnification by Metaldyne......................................60
13.4      Limitations on Liability..........................................60
13.5      Claims............................................................62
13.6      Notice of Third Party Claims; Assumption of Defense...............62
13.7      Settlement or Compromise..........................................64
13.8      Shared Liability..................................................64
13.9      Environmental Indemnification by Seller...........................64
13.10     Resolution of Indemnification Disputes............................66

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                                   ARTICLE XIV

                                  MISCELLANEOUS

14.1      Expenses..........................................................67
14.2      Amendment.........................................................67
14.3      Notices...........................................................67
14.4      Waivers...........................................................69
14.5      Counterparts......................................................69
14.6      Headings..........................................................69
14.7      Interpretation....................................................70
14.8      Applicable Law....................................................70
14.9      Jurisdiction; Waiver of Jury Trial................................70
14.10     Assignment........................................................71
14.11     No Third Party Beneficiaries......................................71
14.12     Severability......................................................71
14.13     Remedies Cumulative...............................................71
14.14     Investigation.....................................................71
14.15     Entire Understanding..............................................72

EXHIBITS

Exhibit A                   Form of Employee Matters Agreement
Exhibit B                   Form of Supply Agreement
Exhibit C                   Form of Management Agreement
Exhibit D                   Form of Operating Agreement
Exhibit E                   Form of Deed
Exhibit F                   Form of Bill of Sale
Exhibit G                   Description of the Facility
Exhibit H                   Forms of FIRPTA Certificates

                                      -v-
<PAGE>

                        JOINT VENTURE FORMATION AGREEMENT

     JOINT VENTURE FORMATION AGREEMENT (this "Agreement"), dated as of December
8, 2002, by and among NC-M Chassis Systems, LLC, a Delaware limited liability
company (the "Company"), DaimlerChrysler Corporation, a Delaware corporation
("Seller"), and Metaldyne Corporation, a Delaware corporation ("Metaldyne").

     WHEREAS, Seller is currently engaged in the business of designing and
engineering ball joints and manufacturing and assembling suspension (including
ball joints), exhaust manifold, transmission, steering and engine components for
Seller's cars and trucks and as aftermarket parts therefor (such business as
conducted at the Facility (as defined below) and not at any other location, the
"Business");

     WHEREAS, Seller and Metaldyne have agreed to form a joint venture to own
and operate the Business and the Facility on the terms and conditions set forth
in this Agreement;

     WHEREAS, Seller has formed the Company to serve as the vehicle for the
joint venture;

     WHEREAS, the parties have agreed that Seller will contribute and assign to
the Company, and that the Company will receive and assume from Seller, the
Transferred Assets (as defined below) and the Assumed Liabilities (as defined
below), in exchange for the issuance by the Company to Seller of 100% of the
Class A Units (as defined below) and 100% of the Class B Units (as defined
below) of the Company, all upon the terms and subject to the conditions of this
Agreement;

     WHEREAS, Seller has agreed to sell, transfer and convey 40% of the Class A
Units (the "Transferred Units") to Metaldyne, and Metaldyne has agreed to
purchase the Transferred Units from Seller (the "Transfer"), upon the terms and
subject to the conditions set forth in this Agreement; and

     WHEREAS, under certain circumstances in the future as provided for in the
Operating Agreement (as defined below), (i) Metaldyne may acquire from Seller
the remaining Class A Units and 100% of the Class B Units or (ii) Seller may
reacquire from Metaldyne the Transferred Units (either of the foregoing, the "JV
Termination").

     NOW, THEREFORE, in consideration of the foregoing and the covenants,
agreements, representations and warranties contained herein, the parties hereto
hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     1.1 Definitions. Unless otherwise defined in this Agreement, the following
terms shall have the respective meanings set forth below:

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                                      -2-

     "Accountant" shall have the meaning set forth in Section 2.7(b).

     "Affiliate" shall mean, with respect to any Person, any other Person that,
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, such Person, where "control"
means, with respect to any Person the possession, directly or indirectly, of the
power to direct the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

     "Agreement" shall mean this Joint Venture Formation Agreement, including
all exhibits and schedules hereto, as amended from time to time.

     "Assets" shall mean, collectively, the Transferred Assets and the Excluded
Assets.

     "Assumed Contracts" shall mean all Contracts used exclusively in or related
exclusively to, or, except with respect to the Intellectual Property and
information technology systems and related software and documentation, used
primarily in or related primarily to or necessary for, the conduct of the
Business or the ownership or operation of the Facility, other than the Excluded
Contracts; provided, however, that any Contracts between the Business, on the
one hand, and Seller or any of its Affiliates, on the other hand, shall not be
Assumed Contracts.

     "Assumed Liabilities" shall have the meaning set forth in Section 2.4.

     "Ball Joints" shall mean all Current Products that are ball joints or ball
and socket joints, including, without limitation, all integral and cartridge
style designs, and all components thereof, including, without limitation, all
castings, forgings, casings, pivots, bellows, bearings, shells, studs, seals,
liners, sockets, heads, shrouds, housings and covers.

     "Business" shall have the meaning set forth in the recitals to this
Agreement.

     "Business Day" shall mean a day other than Saturday, Sunday or any other
day on which commercial banks in New York, New York are authorized or required
by Law to close.

     "Business Material Adverse Change" shall mean a change (or historical
circumstance or event resulting in a prospective change) that is materially
adverse with respect to either (i) the business, operations, assets,
liabilities, results of operations, cash flows or financial condition of the
Business, taken as a whole or (ii) the ability of Seller to consummate the
Transactions; provided, however, that any change (or historical circumstance or
event resulting in a prospective change) that is generally applicable to (A) the
industries and markets in which Seller and its Subsidiaries operate their
respective businesses, (B) the United States or global economy or (C) the United
States securities markets shall be excluded from the determination of a Business
Material Adverse Change; and provided, further, that any change (or historical
circumstance or event resulting in a prospective change) resulting from or
arising out of the execution of this Agreement or the announcement of this
Agreement and the transactions contemplated hereby shall also be excluded from
the determination of a Business Material Adverse Change.

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                                      -3-

     "Business Material Adverse Effect" shall mean an effect (or historical
circumstance or event resulting in a prospective effect) that is materially
adverse with respect to either (i) the business, operations, assets,
liabilities, results of operations, cash flows or financial condition of the
Business, taken as a whole or (ii) the ability of Seller to consummate the
Transactions; provided, however, that any effect (or historical circumstance or
event resulting in a prospective effect) that is generally applicable to (A) the
industries and markets in which Seller and its Subsidiaries operate their
respective businesses, (B) the United States or global economy or (C) the United
States securities markets shall be excluded from the determination of a Business
Material Adverse Effect; and provided, further, that any effect (or historical
circumstance or event resulting in a prospective effect) resulting from or
arising out of the execution of this Agreement or the announcement of this
Agreement and the transactions contemplated hereby shall also be excluded from
the determination of a Business Material Adverse Effect.

     "Cap" shall have the meaning set forth in Section 13.4(a).

     "Capital Stock" means: (i) in the case of a corporation, capital stock;
(ii) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
capital stock; (iii) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and (iv) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

     "CERCLA" shall have the meaning set forth in Section 5.21(d).

     "Class A Units" shall mean the Class A limited liability company interests
in the Company.

     "Class B Units" shall mean the Class B limited liability company interests
in the Company.

     "Closing" shall have the meaning set forth in Section 4.1.

     "Closing Date" shall have the meaning set forth in Section 4.1.

     "Code" shall mean the United States Internal Revenue Code of 1986, as
amended.

     "Common Stock" shall have the meaning set forth in Section 7.5(a).

     "Company" shall have the meaning set forth in the preamble to this
Agreement.

     "Company Indemnified Parties" shall mean the Company and each of its
Subsidiaries and their respective officers, directors, employees, members,
managers, agents and representatives; provided, however, that in no event shall
Seller be deemed a Company Indemnified Party.

     "Company Material Adverse Effect" shall mean an effect (or historical
circumstance or event resulting in a prospective effect) that is materially
adverse with respect to either (i) the busi-

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                                      -4-

ness, operations, assets, liabilities, results of operations, cash flows or
financial condition of the Company before or after giving effect to the
Contribution or (ii) the ability of the Company to consummate the Transactions;
provided, however, that any effect (or historical circumstance or event
resulting in a prospective effect) that is generally applicable to (A) the
industries and markets in which the Company will operate the Business, (B) the
United States or global economy or (C) the United States securities markets
shall be excluded from the determination of a Company Material Adverse Effect;
and provided, further, that any effect (or historical circumstance or event
resulting in a prospective effect) resulting from or arising out of the
execution of this Agreement or the announcement of this Agreement and the
transactions contemplated hereby shall also be excluded from the determination
of a Company Material Adverse Effect.

     "Complete Financial Statements" shall have the meaning set forth in Section
8.12.

     "Consultant" shall have the meaning set forth in Section 8.16(a).

     "Contract" shall mean any contract, lease, commitment, understanding, sales
order, purchase order, rental agreement, insurance policy, agreement, indenture,
mortgage, note, bond, right, instrument of indebtedness, guarantee, warrant,
instrument, plan, permit or license, and any and all other binding arrangements.

     "Contribution" shall mean the transactions set forth in clauses (i) and
(ii) of the definition of the term "Transactions" herein.

     "CPR" shall have the meaning set forth in Section 13.10.

     "Current Process" means any process used by Seller at the Facility as of
the Closing Date or within the 12-month period prior to the Closing Date to
manufacture any Current Product or other product.

     "Current Product" means any product manufactured by Seller at the Facility
as of the Closing Date or within the 12-month period prior to the Closing Date
and listed on Schedule A to the Supply Agreement.

     "Customer Lists" shall have the meaning set forth in Section 2.1(g).

     "DaimlerChrysler Call Option Closing" shall have the meaning set forth in
the Operating Agreement.

     "DaimlerChrysler Indemnified Parties" shall mean Seller, each of its
Subsidiaries and each of their respective Affiliates and the respective
officers, directors, employees, members, managers, agents and representatives of
Seller, its Subsidiaries and their respective Affiliates; provided, however,
that in no event shall the Company or any of its Subsidiaries be deemed a
DaimlerChrysler Indemnified Party.

<PAGE>
                                      -5-

     "Deed" shall mean a special or limited warranty deed including warranties
against grantor's acts relating to the Real Property in recordable form granted
by Seller in favor of the Company substantially in the form of Exhibit E.

     "Demolition Costs" shall have the meaning set forth in Section 8.15.

     "Dispute" shall have the meaning set forth in Section 13.10.

     "Dollars" or numbers preceded by the symbol "$" shall mean amounts in
United States Dollars.

     "Employee Benefit Plan" shall mean any "employee benefit pension plan" as
defined in Section 3(2) of ERISA, "welfare benefit plan" as defined in Section
3(1) of ERISA, stock bonus, stock option, restricted stock, stock appreciation
right, stock purchase, bonus, incentive, deferred compensation, severance and
vacation plans, employment or consulting agreements, and any other employee
benefit plans, programs, policies or arrangements, covering employees (or former
or future employees) of Seller engaged in the Business which is maintained or
contributed to by Seller or any of its ERISA Affiliates or to which Seller or
any of its ERISA Affiliates contributes or is obligated to make payments
thereunder or otherwise may have any Liability.

     "Employee Matters Agreement" shall mean the Employee Matters Agreement by
and among Seller, the Company and Metaldyne substantially in the form of Exhibit
A.

     "End Date" shall have the meaning set forth in Section 12.1(b)(i).
"Environment" shall mean any of the following media: (i) land, including surface
land, sub-surface strata, sea bed and river bed under water (as defined in
clause (ii) hereof), and any natural or man-made structures, (ii) water,
including coastal and inland waters, surface waters, ground waters, drinking
water supplies and waters in drains and sewers, surface and sub-surface strata;
and (iii) air, including indoor and outdoor air and air within buildings and
other man-made or natural structures above or below ground, in each case,
including any living organism or system supported by such media.

     "Environmental Claim" shall mean any notice, claim, demand, action, suit,
complaint, proceeding or communication by any Governmental Authority or other
Person alleging Liability or potential Liability that affects or would
reasonably be expected to affect the Business or any of the Transferred Assets
(including, without limitation, the Facility) relating to, arising out of, in
connection with, based on or resulting from any Environmental Law or
Environmental Permit.

     "Environmental Condition" shall mean (i) any environmental contamination or
pollution or threatened contamination or pollution arising out of any Release or
threatened Release of Hazardous Materials that could form the basis for any
Environmental Claim against the Business or any of the Transferred Assets, or
(ii) any other circumstance or condition that would reasonably be expected to
give rise to any violation or alleged violation of any Environmental Law or
Environmental Permit or any Liability or potential Liability under any
Environmental Law that would reasonably be

<PAGE>
                                      -6-

expected to form the basis for any Environmental Claim against the Business or
any of the Transferred Assets.

     "Environmental Laws" shall mean the common law and all applicable federal,
state, local and foreign Laws, in each case as in effect as of the Closing Date,
relating in any manner to contamination, pollution or protection of human health
or the Environment including, without limitation: the Clean Air Act, as amended,
U.S.C. ss.ss. 7401 et seq.; the Clean Water Act, as amended, 33 U.S.C. ss.ss.
1251 et seq.; CERCLA; the Resource Conservation and Recovery Act, as amended, 42
U.S.C. ss.ss. 6901 et seq.; the Emergency Planning and Community Right-to-Know
Act, 42 U.S.C. ss.ss. 11001 et seq.; the Toxic Substances Control Act, 15 U.S.C.
ss.ss. 2601 et seq.; the Federal Insecticide, Fungicide and Rodenticide Act, as
amended, 7 U.S.C. ss.ss. 136 et seq.; and any applicable state and local Laws,
in each case as in effect as of the Closing Date, regulating the same subject
matter as the aforementioned Laws.

     "Environmental Liability" means all Losses incurred or suffered by a
Company Indemnified Party or Metaldyne Indemnified Party after the Closing to
the extent relating to, arising out of, in connection with or in respect of any
Environmental Condition that existed or occurred on or prior to the JV
Termination Date, including any Environmental Claim in respect of any such
Environmental Condition.

     "Environmental Permits" shall mean all permits, licenses, registrations and
other Governmental Approvals required to be in effect as of the Closing Date
under Environmental Laws for the conduct of the Business as presently conducted
or the ownership or use of the Transferred Assets (including, without
limitation, the Facility) as presently owned or used.

     "Environmental Reports" shall mean all non-privileged applications,
notifications, reports, studies, assessments and audits that address any
assessment or analysis of the Environment, or relate to the Transferred Assets
(including, without limitation, the Facility), or address any issue of
noncompliance with, or Liability under, any Environmental Law that may affect
the Business or the Transferred Assets (including, without limitation, the
Facility).

     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" shall mean any person (as defined in Section 3(9) of
ERISA) that is or has been a member of any group of persons described in Section
414(b), (c), (m), (o) or (t) of the Code.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended,
and applicable rules and regulations promulgated thereunder, and any successor
to such statute, rules or regulations.

     "Excluded Assets" shall have the meaning set forth in Section 2.2.

     "Excluded Contracts" shall have the meaning set forth in Section 2.2(g).

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                                      -7-

     "Excluded Liabilities" shall have the meaning set forth in Section 2.5.

     "Facility" shall mean the plant located in New Castle, Indiana and more
particularly described on Exhibit G, including the land and all improvements,
buildings, structures and fixtures located thereon and all other appurtenances
thereto.

     "Filed Intellectual Property" means all patents, patent applications,
copyright registrations, applications to register copyrights, registered
trademarks, and applications to register trademarks owned by Seller that are
being transferred to Company under Section 2.1(f).

     "Financial Statements" shall have the meaning set forth in Section 5.4.

     "Financing Notice" shall have the meaning set forth in Section 8.12.

     "Forge Building" shall mean the building indicated on the map included in
the description of the Facility attached as Exhibit G.

     "FIRPTA Certificates" shall mean affidavits of Seller as required by
Section 1445 of the Code in the forms attached hereto as Exhibit H.

     "GAAP" shall mean generally accepted accounting principles in the United
States in effect from time to time.

     "Governmental Approvals" shall mean any consent, approval, authorization,
waiver, permit, grant, franchise, concession, agreement, license, exemption or
order of, registration, certificate, declaration or filing with, or report or
notice of or to, any Governmental Authority.

     "Governmental Authority" shall mean the United States of America or any
other nation, any state or other political subdivision thereof, or any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of government or any agency or department or subdivision of any
governmental authority, including the United States federal government or any
state or local government.

     "Hazardous Material" shall mean any pollutant, contaminant, chemical,
material, substance, waste or constituent (including, without limitation, crude
oil or any other petroleum product and asbestos) subject to regulation under, or
which can give rise to Liability under, any Environmental Law.

     "HSR Act" shall mean the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, and applicable rules and regulations promulgated thereunder,
and any successor to such statute, rules or regulations.

     "Indebtedness" shall mean, with respect to any Person, any indebtedness of
such Person, whether or not contingent: (i) in respect of borrowed money; (ii)
evidenced by bonds, notes, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof); (iii) in respect of
banker's acceptances; (iv) representing capital lease obligations; (v)
representing the

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                                      -8-

balance deferred and unpaid of the purchase price of any property, except any
such balance that constitutes an accrued expense or trade payable; or (vi)
representing any interest rate or currency hedging obligations, if and to the
extent any of the preceding items (other than letters of credit and hedging
obligations) would appear as a Liability upon a balance sheet of such Person
prepared in accordance with GAAP. In addition, "Indebtedness" includes (a)
indebtedness of others secured by a Lien on any asset of such Person (whether or
not such Indebtedness is assumed by such Person), (b) obligations with respect
to self-insurance arrangements, including for workers' compensation, and (c) to
the extent not otherwise included, the guarantee by such Person of indebtedness
of others.

     "Indemnified Claim" shall have the meaning set forth in Section 13.8.

     "Indemnified Person" shall mean the Person or Persons entitled to, or
claiming a right to, indemnification under Article XIII.

     "Indemnifying Person" shall mean the Person or Persons claimed by the
Indemnified Person to be obligated to provide indemnification under Article
XIII.

     "Intellectual Property" means (a) patents, utility models, trademarks,
service marks, rights in designs, trade or business names, copyrights (including
rights in computer software), and all rights or forms of protection of a similar
nature or having equivalent effect to any of the foregoing which may subsist
anywhere in the world, (b) applications for any of the foregoing, and (c)
know-how and technical and proprietary information, including all trade dress,
business and product names, logos, slogans, trade secrets, industrial models,
processes, specifications, plans, guidelines, standards, data, tests,
benchmarking, technical reports, designs, methodologies, computer programs
(including all source codes) and related documentation, technical information,
manufacturing, engineering and technical drawings.

     "Interim Survey" shall mean a survey of the Real Property, prepared by a
certified or registered surveyor reasonably acceptable to Metaldyne and the
Title Company and certified to the Company, Metaldyne and the Title Company,
complying with the current minimum standard requirements for boundary surveys in
the State of Indiana and (a) locating any easements, licenses, rights of way or
other items of record disclosed in the Title Commitment; and (b) disclosing any
encroachment, gap, gore or other defect with respect to the boundaries of the
Real Property.

     "Inventory" shall have the meaning set forth in Section 2.1(d).

     "IRS" shall mean the Internal Revenue Service.

     "JV Termination" shall have the meaning set forth in the recitals to this
Agreement.

     "JV Termination Date" means the date of the Metaldyne Call Option Closing,
Metaldyne Put Option Closing or the DaimlerChrysler Call Option Closing,
whichever occurs.

     "Knowledge" shall mean (i) with respect to Seller, the actual knowledge,
after due inquiry, of one or more of the personnel of Seller who have
supervisory, operational or administrative responsibility in respect of the
matter in question; and (ii) with respect to Metaldyne, the actual

<PAGE>
                                      -9-

knowledge, after due inquiry, of one or more of the personnel of Metaldyne who
have supervisory, operational or administrative responsibility in respect of the
matter in question.

     "Known Environmental Conditions" shall mean (i) all Environmental
Conditions set forth on Schedule 1.2 [*].

     "KPMG" shall have the meaning set forth in Section 8.12.

     "Law" shall mean any law, statute, regulation, ordinance, rule, order,
decree, judgment, consent decree, settlement agreement or governmental
requirement enacted, promulgated, entered into, agreed or imposed by any
Governmental Authority.

     "Liability" shall mean any liability or obligation, whether such liability
or obligation relates to payment, performance or otherwise, is known or unknown,
absolute or contingent, accrued or unaccrued, disputed or undisputed, liquidated
or unliquidated, secured or unsecured, joint or several, due or to become due,
vested or unvested, executory, determined, determinable or otherwise, and
whether or not such liability or obligation would be required to be reflected or
reserved against on financial statements of the obligor under GAAP.

     "Lien" shall mean any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind, whether or not filed, recorded or otherwise perfected
under applicable Law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to
sell or give a security interest in and any filing of or agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes)
of any jurisdiction.

     "Loss" or "Losses" shall mean any and all Liabilities, losses, costs,
claims, charges, damages (including out-of-pocket special, exemplary, punitive
and consequential damages), deficiencies, fines, penalties and expenses
(including reasonable attorneys' and other reasonable advisors' and consultants'
fees and expenses and reasonable out-of-pocket costs of investigation and
litigation of claims). In the event any of the foregoing are indemnifiable
hereunder, the terms "Loss" and "Losses" shall include any and all reasonable
attorneys' and other advisors' fees and expenses and costs of investigation and
litigation of claims incurred by the Indemnified Person in enforcing such
indemnity.

     "Management Agreement" shall mean the Management Services Agreement by and
among Metaldyne, the Company and Seller substantially in the form of Exhibit C.

     "Metaldyne" shall have the meaning set forth in the preamble to this
Agreement.

     "Metaldyne Call Option" shall have the meaning set forth in the Operating
Agreement.

     "Metaldyne Call Option Closing" shall have the meaning set forth in the
Operating Agreement.

     "Metaldyne Call Option Closing Date" shall have the meaning set forth in
the Operating Agreement.

<PAGE>
                                      -10-

     "Metaldyne Disclosure Schedules" shall have the meaning set forth in
Article VII.

     "Metaldyne Indemnified Parties" shall mean Metaldyne, each of its
Subsidiaries and each of their respective Affiliates and the respective
officers, directors, employees, members, managers, agents and representatives of
Metaldyne, its Subsidiaries and their respective Affiliates; provided, however,
that in no event shall the Company or any of its Subsidiaries be deemed a
Metaldyne Indemnified Party.

     "Metaldyne Material Adverse Change" shall mean a change (or historical
circumstance or event resulting in a prospective change) that is materially
adverse with respect to either (a) the business, operations, assets,
liabilities, results of operations, cash flows or financial condition of
Metaldyne and its Subsidiaries, taken as a whole, or (b) the ability of
Metaldyne to consummate the Transactions; provided, however, that any change (or
historical circumstance or event resulting in a prospective change) that is
generally applicable to (A) the industries and markets in which Metaldyne and
its Subsidiaries operate their respective businesses, (B) the United States or
global economy or (C) the United States securities markets shall be excluded
from the determination of a Metaldyne Material Adverse Change; and provided,
further, that any change (or historical circumstance or event resulting in a
prospective change) resulting from or arising out of the execution of this
Agreement or the announcement of this Agreement and the transactions
contemplated hereby shall also be excluded from the determination of a Metaldyne
Material Adverse Change.

     "Metaldyne Material Adverse Effect" shall mean an effect (or historical
circumstance or event resulting in a prospective effect) that is materially
adverse with respect to either (i) the business, operations, assets,
liabilities, results of operations, cash flows or financial condition of
Metaldyne and its Subsidiaries, taken as a whole, or (ii) the ability of
Metaldyne to consummate the Transactions; provided, however, that any effect (or
historical circumstance or event resulting in a prospective effect) that is
generally applicable to (A) the industries and markets in which Metaldyne and
its Subsidiaries operate their respective businesses, (B) the United States or
global economy or (C) the United States securities markets shall be excluded
from the determination of a Metaldyne Material Adverse Effect; and provided,
further, that any effect (or historical circumstance or event resulting in a
prospective effect) resulting from or arising out of the execution of this
Agreement or the announcement of this Agreement and the transactions
contemplated hereby shall also be excluded from the determination of a Metaldyne
Material Adverse Effect.

     "Metaldyne Objection Notice" shall have the meaning set forth in Section
2.7(b).

     "Metaldyne Put Option Closing" shall have the meaning set forth in the
Operating Agreement.

     "Metaldyne SEC Documents" shall have the meaning set forth in Section
7.6(a).

<PAGE>
                                      -11-

     "Metaldyne Shareholders Agreement" shall mean the Shareholders Agreement,
dated as of November 28, 2000, as supplemented and amended, by and among
Metaldyne (as successor to Mascotech, Inc.) and certain shareholders of
Metaldyne.

     "Non-Assigned Assets" shall have the meaning set forth in Section 2.6.

     "North Building" shall mean the building indicated on the map included in
the description of the Facility attached as Exhibit G.

     "Opening Balance Sheet" shall have the meaning set forth in Section 2.7(a).

     "Operating Agreement" shall mean the Amended and Restated Operating
Agreement of the Company by and among the Company, Seller and Metaldyne
substantially in the form of Exhibit D.

     "OSHA" shall have the meaning set forth in Section 5.25.

     "Permitted Liens" shall mean:

          (a) the Liens set forth on Schedule 1.3;

          (b) Liens for current Taxes not yet due and payable or being contested
     in good faith by appropriate proceedings;

          (c) mechanics', materialmen's, workmen's, repairmen's, warehousemen's,
     carriers' or other like Liens, in each case, arising or incurred in the
     ordinary course of business;

          (d) with respect to the Real Property, (i) easements, licenses,
     covenants, rights-of-way and other similar encumbrances and restrictions
     which are a matter of public record arising after the date hereof and which
     would not reasonably be expected, individually or in the aggregate, to
     materially and adversely affect the use of the Real Property as currently
     used by Seller and (ii) zoning, building and other similar restrictions
     pursuant to applicable Law;

          (e) Liens created by the Company or Metaldyne; and

          (f) other Liens that, in the aggregate, would not require payments in
     excess of $10,000 to have discharged and released.

     "Person" shall mean any individual, partnership, corporation, limited
liability company, association, joint stock company, trust, joint venture,
unincorporated organization, firm, proprietorship or other business entity or a
Governmental Authority.

     "Phase II ESA" shall have the meaning set forth in Section 8.16(a).

     "Preferred Stock" shall have the meaning set forth in Section 7.5(a).

<PAGE>
                                      -12-

     "Prepaid Expenses" shall mean all prepaid expenses, including, without
limitation, ad valorem taxes, leases and rentals.

     "Product" shall have the meaning set forth in the Supply Agreement.

     "Real Property" shall have the meaning set forth in Section 5.8(a).

     "Related Agreement" shall mean any Contract or other document that is or is
to be entered into at or prior to the Closing pursuant to, or in connection
with, this Agreement, including, without limitation, the Employee Matters
Agreement, the Supply Agreement, the Management Agreement, the Operating
Agreement and the Transition Services Agreement.

     "Release" shall mean any releasing, spilling, seeping, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping
or disposing of any Hazardous Materials into the Environment (including the
abandonment or discarding of barrels, containers, tanks or other receptacles
containing Hazardous Materials).

     "Relief Letter" shall have the meaning set forth in Section 8.12.

     "Remedial Action" shall mean all actions required by any Environmental Law
or any Governmental Authority under any Environmental Law: (i) to clean up,
remove, treat, abate or in any other way address any Environmental Condition;
(ii) to prevent the Release or threat of Release or minimize the further Release
of any Hazardous Materials so that it does not migrate or endanger or threaten
to endanger human health or the Environment; and (iii) to perform pre-remedial
studies and investigations in connection with any Release or threatened Release.

     "Remediation Standards" means either numeric or narrative standards to
which Hazardous Materials in, on or around land must be remediated as
established pursuant to Environmental Laws by the Governmental Authority with
jurisdiction over such land.

     "Rules" shall have the meaning set forth in Section 13.10.

     "SEC" shall have the meaning set forth in Section 7.6(a).

     "Securities Act" shall mean the Securities Act of 1933, as amended, and
applicable rules and regulations promulgated thereunder, and any successor to
such statute, rules or regulations.

     "Seller" shall have the meaning set forth in the preamble to this
Agreement.

     "Seller Disclosure Schedules" shall have the meaning set forth in Article
V.

     "Seller Related Intellectual Property" shall mean any Intellectual Property
pertaining to any product the Company supplies to Seller or its Affiliates or
which the Company is designing and/or developing for supply to Seller or its
Affiliates pursuant to any vehicle development program of Seller or its
Affiliates.

<PAGE>
                                      -13-

     "Seller's Accounting Principles" shall have the meaning set forth in
Section 5.4.

     "Series A-1 Preferred Stock" shall have the meaning set forth in Section
7.2(b).

     "Series A-2 Preferred Stock" shall have the meaning set forth in Section
7.2(b).

     "Special Tooling" shall mean unique tools which are specifically designed
to hold parts in place, determine a part's location within the machine and/or
provide a placeholder for attaching cutting inserts, drills, dies or measuring
sensors. For avoidance of doubt, "Special Tooling" does not include any part of
an original equipments' or original machine's design or construction package.

     "Subsidiary" shall mean, with respect to any Person: (i) any other Person
of which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person (or a combination thereof); and (ii) any partnership
or limited liability company (a) the sole general partner or member or the
managing general partner or member of which is such Person or a Subsidiary of
such Person or (b) the only general partners or members of which are such Person
or one or more Subsidiaries of such Person (or any combination thereof).

     "Supply Agreement" shall mean the Supply Agreement by and between Seller
and the Company substantially in the form of Exhibit B.

     "Survey" shall mean a survey of the Real Property, dated within 30 days of
the Closing Date, prepared by a certified or registered surveyor reasonably
acceptable to Metaldyne and the Title Company and certified to the Company,
Metaldyne and the Title Company, in form and substance satisfactory to Metaldyne
and the Title Company and not disclosing any matters (other than Permitted
Liens) to which Metaldyne has reasonably objected within fifteen (15) days after
receipt of the same, complying with the current Minimum Standard Detail
Requirements for ALTA/ACSM Land Title Surveys and such of the ALTA/ASCM Table
Requirements as Metaldyne or the Title Company shall reasonably request and (a)
setting forth an accurate description of each parcel of the Real Property, (b)
locating all improvements, Liens (setting forth the recording information of any
recorded instruments), setback lines, alleys, streets and roads, (c) showing any
encroachments upon or by any improvements on the Facility and (d) showing all
dedicated public streets providing access to the Facility and the municipal
address of any improvements located on the Real Property.

     "Tax Return" shall mean any report, return or other information required to
be supplied to a Governmental Authority in connection with any Taxes.

     "Taxes" shall mean all taxes, charges, fees, duties, levies or other
assessments related to the Business, including income, gross receipts, net
proceeds, ad valorem, turnover, real and personal property (tangible and
intangible), sales, use, franchise, excise, value added, stamp, leasing, lease,
user, transfer, fuel, excess profits, occupational, interest equalization,
windfall profits, severance, employee's income withholding, other withholding,
unemployment and Social Security taxes,

<PAGE>
                                      -14-

which are imposed by any Governmental Authority, including any interest,
penalties or additions to tax attributable thereto.

     "Threshold Amount" shall have the meaning set forth in Section 13.4(a).

     "Title Company" shall mean Chicago Title Insurance Company or another
nationally recognized title insurance company reasonably satisfactory to
Metaldyne.

     "Title Policy" shall mean an owner's title insurance policy issued to the
Company with respect to the Real Property, in form and substance satisfactory to
Metaldyne and not disclosing any material matters to which Metaldyne has
reasonably objected within fifteen (15) days after receipt of the same, together
with endorsements thereto reasonably requested and paid for by Metaldyne
(including, without limitation, access, zoning, comprehensive, non-imputation
and contiguity endorsements), in an amount determined by Metaldyne but in no
event to exceed the reasonable commercial value of the Real Property, insuring
the Company and issued as of the Closing Date by the Title Company, showing the
Company to have a valid fee interest in the Real Property.

     "Transactions" shall mean: (i) the contribution by Seller to the Company of
the Transferred Assets and the assignment and assumption by the Company from
Seller of the Assumed Liabilities contemplated by this Agreement; (ii) the
issuance of the Units by the Company to Seller contemplated by this Agreement;
(iii) the Transfer; and (iv) the other transactions contemplated by this
Agreement and the Related Agreements.

     "Transfer" has the meaning set forth in the recitals to this Agreement.

     "Transfer Taxes" shall have the meaning set forth in Section 8.5(a).

     "Transferred Assets" shall have the meaning set forth in Section 2.1.

     "Transferred Intellectual Property" shall have the meaning set forth in
Section 2.1(f).

     "Transferred Units" shall have the meaning set forth in the recitals to
this Agreement.

     "Transition Services Agreement" shall mean the Transition Services
Agreement by and between Seller and the Company substantially in the form
attached to the Operating Agreement.

     "UAW" shall mean International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America.

     "Units" shall mean, collectively, the Class A Units and the Class B Units.

     "Unknown Environmental Conditions" shall mean all Environmental Conditions
other than Known Environmental Conditions.

     "WARN Act" shall have the meaning set forth in Section 2.4(d).

<PAGE>
                                      -15-

                                   ARTICLE II

                             CONTRIBUTION OF ASSETS

     2.1 Contribution of Assets. Subject to Section 2.2 and the other terms and
conditions of this Agreement, at the Closing, Seller shall contribute, transfer,
assign and deliver to the Company, or cause to be contributed, transferred,
assigned and delivered to the Company, free and clear of any Liens except for
Permitted Liens, and the Company shall receive and assume from Seller, all of
Seller's right, title and interest in and to the Transferred Assets. To the
extent that the Transferred Assets consist of written documents (including
microfilm and computer files) which are necessary for Seller's records, Seller
may either deliver to the Company a duplicate copy of such documents and retain
the original or deliver to the Company the original of such documents and retain
a duplicate copy; provided, however, that Seller shall deliver the original of
any such document when delivery of the original is necessary or desirable to
effectuate the transfer of any Transferred Asset.

     For purposes of this Agreement, "Transferred Assets" shall mean all of the
assets used exclusively in or related exclusively to, or, except with respect to
the Intellectual Property and information technology systems and related
software and documentation, used primarily in or related primarily to or
necessary for, the conduct of the Business or ownership or operation of the
Facility, real, personal or mixed, tangible or intangible, whether now existing
or acquired prior to the Closing Date as the same may exist on the Closing Date,
including, without limitation, the following assets to the extent used
exclusively in or related exclusively to, or, except with respect to the
Intellectual Property and information technology systems and related software
and documentation, used primarily in or related primarily to or necessary for,
the conduct of the Business or ownership or operation of the Facility (but
excluding in all cases the Excluded Assets):

          (a) the Facility;

          (b) all owned Real Property described on Schedule 2.1(b) and all
     improvements, buildings, structures and fixtures located thereon and all
     other appurtenances thereto;

          (c) all fixtures and other fixed assets, machinery, equipment, tools
     (other than Special Tooling), dies, furniture, furnishings and in-bound
     material containers and all other tangible assets, including, without
     limitation, those listed on the plant asset listing report dated October
     31, 2002 attached hereto as Schedule 2.1(c), subject to such additions,
     substitutions or deletions thereto, in compliance with Section 8.7, as
     shall have occurred in the ordinary course of business, consistent with
     past practice, prior to the Closing Date;

          (d) all inventories of raw materials, work-in-process, in-plant
     finished components, spare parts, replacement and component parts, office
     and other supplies (the "Inventory");

          (e) all Assumed Contracts;

<PAGE>
                                      -16-

          (f) notwithstanding any other provision of this Section 2.1, only the
     Intellectual Property used by Seller exclusively in or related exclusively
     to the conduct of the Business at the Facility, including, without
     limitation, all Intellectual Property in, relating to or covering all
     Current Processes used exclusively at the Facility (the "Transferred
     Intellectual Property");

          (g) all customer lists and records which relate to the historical
     supply of products from the Facility (the "Customer Lists");

          (h) all rights, claims, credits, guarantees, warranties, causes of
     action or rights of set-off against third parties to the extent related to
     the Transferred Assets or the Assumed Liabilities, including, without
     limitation, all construction and capital equipment warranties and
     unliquidated rights under manufacturers' and vendors' warranties, other
     than in relation to Liabilities that are the obligation of Seller or rights
     to sue for and remedies against past infringements of any Intellectual
     Property rights of Seller;

          (i) all books, records, manuals and other materials used exclusively
     in or related exclusively to the conduct of the Business (in any form or
     medium), advertising matter, catalogues, price lists, distribution lists,
     photographs, production data, sales and promotional materials and records,
     manufacturing and quality control records and procedures, blueprints,
     research and development files, records, data and laboratory books, media
     materials and plates, accounting records and sales order files, except to
     the extent Seller is required by applicable Law or any Excluded Contract to
     retain such documents; provided, however, that the Company shall receive
     copies of any books, records, manuals and other materials necessary to
     operate the Business;

          (j) to the extent their transfer is permitted by applicable Law, all
     Governmental Approvals used exclusively in or related exclusively to the
     conduct of the Business, including, without limitation, NAFTA
     certifications, and all applications therefor and records relating thereto;

          (k) the systems and databases listed on Schedule 2.1(k);

          (l) all goodwill;

          (m) to the extent their transfer is permitted by applicable Law, any
     Tax abatements related to the Business;

          (n) the motor vehicles owned or leased by Seller and listed on
     Schedule 2.1(n); and

          (o) any and all other assets and rights that are not of the type or
     character referenced in Section 2.1(a)-(n) and that are used exclusively in
     or relate exclusively to, or, except with respect to the Intellectual
     Property and information technology systems and related software and
     documentation, are used primarily in or relate primarily to or are
     necessary for, the conduct of the Business or the ownership or operation of
     the Facility.

<PAGE>
                                      -17-

     2.2 Excluded Assets. Notwithstanding any other provision of this Agreement,
the Transferred Assets shall not include the following assets (the "Excluded
Assets"):

          (a) Seller's rights under this Agreement and the Related Agreements to
     which Seller is to be a party;

          (b) Seller's ledgers, journals and Tax Returns, product design and
     verification data pertaining to Current Products and past products
     manufactured at the Facility (including, without limitation, drawings, CAD
     files, computer models and test data), and any other documents not covered
     by Section 2.1(i);

          (c) any assets relating to benefits provided or Employee Benefit Plans
     maintained by Seller for any employees engaged in the Business;

          (d) the Intellectual Property in the design and configuration of the
     Current Products, all Intellectual Property not used exclusively at the
     Facility in the conduct of the Business or that relates exclusively to the
     conduct of the Business at the Facility, and all trademarks, service marks
     and trade names of Seller and Seller's Affiliates;

          (e) the finished goods inventory in transit;

          (f) all prepaid expenses and Taxes, cash (including petty cash) on
     hand, cash equivalents and bank accounts and securities on hand or on
     deposit;

          (g) the Contracts listed on Schedule 2.2(g) (the "Excluded
     Contracts");

          (h) all Special Tooling;

          (i) any software, whether owned by Seller or third parties, that is
     not located exclusively at the Facility;

          (j) all of Seller's proprietary engineering and production designs and
     drawings;

          (k) all outbound material containers, returnable containers, racks and
     drums used for shipping supplies and products;

          (l) all intracompany receivables owing by Seller, accounts and notes
     receivable from third parties other than Seller, chattel paper and other
     rights to receive payment from third parties existing as of the Closing
     Date;

          (m) the motor vehicles owned or leased by Seller and listed in
     Schedule 2.2(m);

          (n) all Contracts of insurance and policies of insurance, including,
     without limitation, casualty, liability or group life, health or accident
     insurance;

<PAGE>
                                      -18-

          (o) all Governmental Approvals (i) that are not used exclusively in or
     related exclusively to the conduct of the Business or (ii) whose transfer
     is not permitted by applicable Law;

          (p) to the extent not used exclusively in or not related exclusively
     to the conduct of the Business, all books, records, manuals and other
     materials (in any form or medium), advertising matter, catalogues, price
     lists, distribution lists, photographs, production data, sales and
     promotional materials and records, manufacturing and quality control
     records and procedures, blueprints, research and development files,
     records, data and laboratory books, media materials and plates, accounting
     records and sales order files;

          (q) all rights to any refunds, credits, duty drawbacks or claims
     (including, in each case, interest with respect thereto) in respect of
     Taxes paid or required to be paid by Seller or any Affiliate of Seller
     pursuant to this Agreement or otherwise, to any Governmental Authority for
     any period;

          (r) other than claims described in Section 2.1(h) and claims against
     third parties with respect to Assumed Liabilities, all claims and rights
     against third parties relating to the operation of the Business prior to
     the Closing Date, including, without limitation, claims against the
     Seller's insurance carriers;

          (s) all fixed assets, machinery, equipment and tools of Seller used
     primarily or exclusively in, or related primarily or exclusively to, the
     design or development of products manufactured at the Facility that are
     located at Seller's headquarters in Auburn Hills, Michigan (other than
     those assets listed on Schedule 2.1(f));

          (t) all returns and other Tax records pertaining to the operations of
     Seller (including the Facility) for all taxable periods prior to the
     Closing; and

          (u) all signage making use of any trademarks, service marks or trade
     name of Seller or any of its Affiliates.

     2.3 Issuance of Units. In consideration for the Transferred Assets, the
Company shall issue to Seller, at the Closing, 100% of the Class A Units and
100% of the Class B Units.

     2.4 Assumption of Liabilities. In addition to the issuance of the Units in
accordance with Section 2.3, at the Closing, the Company shall, by appropriate
instruments reasonably satisfactory to the Company and Metaldyne to be executed
and delivered at Closing, assume and agree to pay, perform and discharge the
following Liabilities (the "Assumed Liabilities"):

          (a) all Liabilities under the Assumed Contracts which by the terms of
     the Assumed Contracts arise from performance or non-performance after the
     Closing Date under the Assumed Contracts, but only when and to the extent
     the Company receives the corresponding benefits of such Assumed Contracts;

<PAGE>
                                      -19-

          (b) all Liabilities for the purchase of raw materials, parts, supplies
     and repair and maintenance materials under open supply contracts, purchase
     orders and commitments set forth on Schedule 2.4 or given or made after the
     date hereof consistent with Section 8.7;

          (c) all Liabilities arising from the conduct of the Business and the
     ownership and operation of the Facility from and after the Closing Date;

          (d) except as provided in the Employee Matters Agreement, all
     Liabilities arising under the Worker Adjustment and Retraining Notification
     Act of 1988 (the "WARN Act") relating to, arising out of, or incurred in
     connection with any closure or shutdown, or deemed closure or shutdown,
     partial or otherwise, of the Facility, the Business or the operations
     thereof after the JV Termination Date;

          (e) all current liabilities of the business set forth on the Opening
     Balance Sheet (and not in the notes thereto) using Seller's Accounting
     Principles; and

          (f) (i) any Liabilities relating to, arising out of, in connection
     with or in respect of any Environmental Condition that did not exist or had
     not occurred on or prior to the JV Termination Date, including any
     Environmental Claim in respect of any such Environmental Condition, and
     (ii) to the extent Seller is not required to indemnify and hold harmless
     the Company Indemnified Parties and Metaldyne Indemnified Parties therefrom
     under Section 13.9(b), any Environmental Liabilities relating to, arising
     out of, in connection with or in respect of any Unknown Environmental
     Conditions.

     2.5 Excluded Liabilities. Notwithstanding any other provision of this
Agreement, the Assumed Liabilities shall not include the following Liabilities
(the "Excluded Liabilities"):

          (a) except with respect to Environmental Liabilities (which are
     covered by clause (b) below), any Liabilities of Seller relating to,
     arising out of or in connection with the ownership or operation of the
     Business or the Assets or otherwise prior to the Closing, other than the
     Assumed Liabilities;

          (b) (i) any Environmental Liabilities relating to, arising out of, in
     connection with or in respect of any Known Environmental Conditions and
     (ii) to the extent Seller is required to indemnify and hold harmless the
     Company Indemnified Parties and Metaldyne Indemnified Parties therefrom
     under Section 13.9(b), any Environmental Liabilities relating to, arising
     out of, in connection with or in respect of any Unknown Environmental
     Conditions;

          (c) any Liabilities under Assumed Contracts which by the terms of such
     Assumed Contracts were due or to be performed or otherwise arose prior to
     the Closing;

          (d) any Liabilities relating to past, present or future employees of
     Seller engaged in the Business or otherwise relating to Employee Benefit
     Plans for past, present or future employees of Seller engaged in the
     Business, whether prior to or after the Closing, including, without
     limitation, liabilities under ERISA, workers' compensation laws or
     employment laws;

<PAGE>
                                      -20-

          (e) any Liabilities of Seller under or relating to labor relations,
     and any grievances, lawsuit or claim of any kind by any employee of Seller
     whether or not relating to employment in the Business prior to the Closing
     or thereafter under the Employee Matters Agreement;

          (f) any Liabilities arising out of any action, suit or proceeding
     relating to the Business or the Transferred Assets to the extent based upon
     an event occurring or a claim arising (i) prior to the Closing, other than
     the Assumed Liabilities, or (ii) after the Closing, in each case with
     respect to claims relating to the design, manufacture or sale of products
     by Seller prior to the Closing, including warranty and product liability
     claims;

          (g) any Tax liabilities of Seller;

          (h) any Liabilities for Indebtedness incurred by Seller or any of its
     Affiliates;

          (i) any brokers' or finders' fees, or other Liability of Seller for
     costs and expenses (including fees and expenses relating to professional
     advisors (legal, financial, accounting or otherwise)) incurred in
     connection with this Agreement or any Related Agreement;

          (j) any Liability to the extent relating to, arising out of or in
     connection with the Excluded Assets;

          (k) any Liability relating to, arising out of or in connection with
     Seller's demolition of the North Building or the Forge Building pursuant to
     Section 8.15; provided, however, that the Excluded Liabilities shall not
     include any Demolition Costs in excess of $6,000,000 in the aggregate;

          (l) any Liability relating to, arising out of or in connection with
     the capital improvement projects described on Schedule 2.5(l);

          (m) any Liability or obligation for chargebacks relating to, arising
     out of or in connection with the manufacture or production of products at
     the Facility prior to the Closing; and

          (n) all other Liabilities not expressly constituting Assumed
     Liabilities.

     2.6 Nonassignable Assets and Approvals. In the case of any Governmental
Approvals or any Assumed Contracts which by their terms or by virtue of their
subject matter are not assignable to the Company and which are included among
the Transferred Assets (collectively, the "Non-Assigned Assets"), Seller agrees
to use its commercially reasonable efforts to obtain, as soon as practicable
prior to the Closing Date, any written consents necessary to convey to the
Company the benefit thereof; provided, however, that Seller shall not be
obligated to pay any amount in consideration of any such consent, other than (a)
nominal filing, application or similar costs or fees, (b) nominal amounts to
cover processing and review by third parties of such consents, including de
minimis amounts of attorneys' fees, and (c) any amounts that were due and
payable prior to Closing, which

<PAGE>
                                      -21-

amounts are required by Contract or applicable Law to be paid prior to
consummation of the transactions contemplated hereby. In the event that any such
consent is not obtained by the Closing Date, Seller agrees to continue to use
its commercially reasonable efforts to obtain such written consent and to
cooperate with the Company so that the Company can obtain the benefits of such
Non-Assigned Asset until such consent is obtained to the extent permitted by
applicable Law. Nothing in this Agreement shall be construed as an attempt or an
agreement to assign or cause the assignment of any Non-Assigned Asset, unless
the necessary consent shall have been given.

     2.7 Opening Balance Sheet. (a) Within sixty (60) days after the Closing
Date, Seller shall prepare and deliver to Metaldyne a draft balance sheet of the
Company as of the Closing Date (the "Opening Balance Sheet"), which shall be
prepared in accordance with the principles set forth in Schedule 2.7.

     (b) Metaldyne shall have a period of twenty (20) days following receipt of
the Opening Balance Sheet from Seller pursuant to Section 2.7(a) within which to
review the Opening Balance Sheet. If Metaldyne has any objections to the draft
Opening Balance Sheet, it will deliver to Seller a detailed statement describing
such objections (the "Metaldyne Objection Notice") within such twenty (20) day
review period. Seller and Metaldyne will use their respective commercially
reasonable efforts to resolve any such objections set forth in the Metaldyne
Objection Notice. If a final resolution is not obtained within a period of
twenty (20) days following delivery of a Metaldyne Objection Notice, Seller and
Metaldyne will select and jointly engage a nationally-recognized accounting firm
mutually acceptable to them (the "Accountant") to resolve any remaining
objections. The Accountant shall promptly, but in no event later than twenty
(20) days following its engagement by Seller and Metaldyne, deliver to Seller
and Metaldyne its decision as to any remaining objections set forth in the
Metaldyne Objection Notice. The decision of the Accountant shall be final and
binding on Seller and Metaldyne. If Seller and Metaldyne are unable to agree on
the choice of an accounting firm, they will select a nationally-recognized
accounting firm by lot (after excluding their respective independent public
accountants).

     (c) The Company will revise the draft Opening Balance Sheet as appropriate
to reflect the resolution of any objections set forth in the Metaldyne Objection
Notice (as agreed upon by the Seller and Metaldyne or as determined by the
Accountant) and deliver it to Metaldyne within twenty (20) days after the final
resolution of such objections. Such revised draft shall be the Opening Balance
Sheet.

     (d) If any unresolved objections are submitted to the Accountant for
resolution as provided above, the fees and expenses of the Accountant shall be
borne 50% by Seller and 50% by Metaldyne. The Company will provide reasonable
access to the work papers necessary for the preparation of the Opening Balance
Sheet to Seller, Metaldyne and the Accountant during the preparation by Seller
of the Opening Balance Sheet, the review by Metaldyne of the Opening Balance
Sheet, and the resolution of any objections with respect thereto.

<PAGE>
                                      -22-

                                   ARTICLE III

                     SALE AND PURCHASE OF TRANSFERRED UNITS

     3.1 Sale and Purchase of Transferred Units. Upon the terms and subject to
the conditions of this Agreement, at the Closing, Seller shall sell, transfer
and convey to Metaldyne, free and clear of any Liens or any other limitation or
restriction other than as set forth in the Operating Agreement, and Metaldyne
shall purchase from Seller, the Transferred Units.

     3.2 Purchase Price for Transferred Units. In consideration for the
Transferred Units, Metaldyne shall pay to Seller, at the Closing, $20,000,000 by
wire transfer of immediately available funds to the account designated by Seller
on Schedule 3.2.

                                   ARTICLE IV

                                   THE CLOSING

     4.1 Closing. Upon the terms and subject to the conditions of this
Agreement, the closing of the Transactions (the "Closing") shall take place at
the offices of DaimlerChrysler Corporation, 1000 Chrysler Drive, Auburn Hills,
Michigan, at 10:00 A.M. (local time) on the last Business Day of the calendar
month in which the conditions set forth in Articles IX, X and XI are satisfied
or waived (other than conditions which by their nature are to be satisfied at
the Closing, but subject to the satisfaction or waiver of those conditions), or
at such other place, time or date as the parties hereto may agree. The term
"Closing Date" shall mean the date on which the Closing actually occurs.

     4.2 Closing Deliveries of Seller. In addition to any other documents to be
delivered by Seller under the provisions of this Agreement, at the Closing,
Seller shall deliver, or cause to be delivered, to the Company and Metaldyne the
following:

          (a) a Deed;

          (b) a Title Policy;

          (c) the FIRPTA Certificates;

          (d) a duly executed bill of sale, assignment and general conveyance,
     substantially in the form of Exhibit F hereto, dated the Closing Date, with
     respect to the Transferred Assets (other than any Transferred Asset to be
     transferred pursuant to any other instrument referred to in any other
     clause of this Section 4.2);

          (e) duly executed assignments, in form and substance reasonably
     satisfactory to Seller and Metaldyne, of all Contracts, Intellectual
     Property and Governmental Approvals constituting Transferred Assets, dated
     the Closing Date, assigning to the Company all of Seller's right, title and
     interest therein and thereto, with any required consent endorsed thereon or
     provided therewith;

<PAGE>
                                      -23-

          (f) certificates of title to all owned vehicles included in the
     Transferred Assets to be transferred to the Company hereunder, duly
     endorsed for transfer to the Company as of the Closing Date;

          (g) separate trademark assignments, each dated the Closing Date,
     assigning to the Company any United States trademark registrations included
     in the Transferred Assets;

          (h) such other and further instruments of conveyance, assignment and
     transfer as Metaldyne shall reasonably request and that are necessary for
     the effective conveyance, assignment and transfer of any of the Transferred
     Assets to the Company;

          (i) one or more certificates representing the Transferred Units, duly
     endorsed for transfer;

          (j) the certificate contemplated by Section 11.3;

          (k) duly executed counterparts of the Employee Matters Agreement, the
     Supply Agreement, the Management Agreement and the Operating Agreement to
     each of the other parties thereto; and

          (l) a certificate of Seller, signed by an authorized officer of
     Seller, certifying as to (i) the corporate resolutions of Seller
     authorizing the consummation of the transactions contemplated by this
     Agreement and the Related Agreements, (ii) the incumbency of the officers
     of Seller executing this Agreement and the Related Agreements to which it
     is a party, (iii) the good standing under applicable Law of Seller, (iv)
     Seller's certificate of incorporation, as amended, certified as of the
     Closing Date, by the Secretary of State of the State of Delaware, and (v)
     Seller's bylaws, certified to be true, correct, complete and in full force
     and effect and unmodified as of the Closing Date.

     4.3 Closing Deliveries of the Company. In addition to any other documents
to be delivered by the Company under the provisions of this Agreement, at the
Closing, the Company shall deliver, or cause to be delivered, to Seller the
following:

          (a) one or more certificates, registered in the name of
     DaimlerChrysler Corporation, representing 100% of the Class A Units and
     100% of the Class B Units;

          (b) the certificate contemplated by Section 11.3;

          (c) duly executed counterparts of the Employee Matters Agreement, the
     Supply Agreement, the Management Agreement and the Operating Agreement to
     each of the other parties thereto; and

          (d) a certificate of the Company, signed by an authorized officer of
     the Company, certifying as to (i) the corporate resolutions of the Company
     authorizing the consummation of the transactions contemplated by this
     Agreement and the Related Agreements, (ii) the incumbency of the officers
     of the Company executing this Agreement and the Related Agreements

<PAGE>
                                      -24-

     to which it is a party, (iii) the good standing under applicable Law of the
     Company, (iv) the Company's certificate of formation, as amended, certified
     as of the Closing Date, by the Secretary of State of the State of Delaware,
     and (v) the Company's limited liability company operating agreement,
     certified to be true, correct, complete and in full force and effect and
     unmodified as of the Closing Date.

     4.4 Closing Deliveries of Metaldyne. In addition to any other documents to
be delivered by Metaldyne under the provisions of this Agreement, at the
Closing, Metaldyne shall deliver or cause to be delivered, to Seller the
following:

          (a) the purchase price for the Transferred Units as provided in
     Section 3.2;

          (b) the certificate contemplated by Section 10.3;

          (c) duly executed counterparts of the Employee Matters Agreement, the
     Management Agreement and the Operating Agreement to each of the other
     parties thereto; and

          (d) a certificate of Metaldyne, signed by an authorized officer of
     Metaldyne, certifying as to (i) the corporate resolutions of Metaldyne
     authorizing the execution of this Agreement and the Related Agreements and
     the consummation of the transactions contemplated thereby, (ii) the
     incumbency of the officers of Metaldyne executing this Agreement and the
     Related Agreements to which it is a party, (iii) the good standing under
     applicable Law of Metaldyne, (iv) Metaldyne's certificate of incorporation,
     as amended, certified as of the Closing Date, by the Secretary of State of
     the State of Delaware, and (v) Metaldyne's bylaws, certified to be true,
     correct, complete and in full force and effect and unmodified as of the
     Closing Date.

                                    ARTICLE V

                    REPRESENTATIONS AND WARRANTIES OF Seller

     Seller represents and warrants to the Company and Metaldyne that, except as
set forth in the corresponding schedule of the disclosure schedules delivered by
Seller to the Company and Metaldyne immediately prior to execution of this
Agreement (the "Seller Disclosure Schedules") (it being agreed that disclosure
of any item on a particular Schedule of the Seller Disclosure Schedules shall be
deemed disclosure of such item on each other Schedule of the Seller Disclosure
Schedules where the relevance of such item to such other Schedule is reasonably
apparent on its face):

     5.1 Due Incorporation. Seller is a corporation duly incorporated, validly
existing and in good standing under the Laws of the State of Delaware, with all
requisite corporate power and authority to own, lease and operate the
Transferred Assets and to carry on the Business as they are now being owned,
leased, operated and conducted. Seller is licensed or qualified to do business
and is in good standing as a foreign corporation in each jurisdiction where the
nature of the Transferred Assets and the Business requires such licensing or
qualification, except where the failure to be so licensed or qualified would not
reasonably be expected to have a Business Material Adverse Effect.

<PAGE>
                                      -25-

Accurate and complete copies of the certificate of incorporation and bylaws of
Seller as currently in effect have been delivered to Metaldyne.

     5.2 Due Authorization. Seller has full corporate power and authority to
execute and deliver this Agreement and the Related Agreements to which it is to
be a party and to perform its obligations and consummate the transactions
contemplated hereby and thereby. The execution, delivery and performance by
Seller of this Agreement and the Related Agreements to which it is to be a party
have been duly and validly approved by all corporate actions or proceedings on
the part of Seller necessary to authorize this Agreement, the Related Agreements
to which it is to be a party and the transactions contemplated hereby and
thereby. Seller has duly and validly executed and delivered this Agreement and,
on the Closing Date, will have duly and validly executed and delivered the
Related Agreements to which it is to be a party. This Agreement constitutes and,
on the Closing Date, the Related Agreements to which it is to be a party will
constitute (assuming, in each case, due execution and delivery by the other
parties thereto), legal, valid and binding obligations of Seller, enforceable
against Seller in accordance with their respective terms, except to the extent
such enforceability may be limited by applicable bankruptcy, insolvency,
moratorium, reorganization, fraudulent transfer or other similar laws of general
applicability relating to or affecting creditors' rights from time to time in
effect and general principles of equity, including concepts of materiality,
reasonableness, good faith and fair dealing, regardless of whether in a
proceeding in equity or at law.

     5.3 Consents and Approvals; No Violations. (a) Schedule 5.3 of the Seller
Disclosure Schedules lists all material Governmental Approvals and consents,
authorizations or approvals of, or filings or registrations with, any other
Person not a party to this Agreement that are required to be made or obtained by
Seller in connection with the execution, delivery and performance by Seller of
this Agreement or the Related Agreements to which it is to be a party or the
consummation of the transactions contemplated hereby or thereby.

     (b) The execution, delivery and performance by Seller of this Agreement and
the Related Agreements to which it is to be a party and the consummation of the
transactions contemplated hereby and thereby do not and will not: (i) violate
any Law applicable to Seller; (ii) violate, result in the breach, acceleration,
termination, modification or cancellation of, require any consent under, result
in the creation of any Lien upon any of the Transferred Assets under, or give
any third party the right to accelerate, terminate, modify or cancel, any
Assumed Contract or any other material Contract or other Liability to which
Seller is a party or by which Seller or any of the Transferred Assets are bound
or subject, (iii) constitute an event which, after notice or lapse of time or
both, would result in any such violation, breach, acceleration, termination,
cancellation, require any such consent, result in any such Lien or give rise to
any such right or (iv) violate or conflict with any provision of any of, or
cause the dissolution of Seller pursuant to, the certificate of incorporation or
bylaws of Seller or the Delaware General Corporation Law, except, in the case of
clauses (i), (ii) and (iii) above, for such exceptions as would not reasonably
be expected to have, individually or in the aggregate, a Business Material
Adverse Effect.

     5.4 Financial Statements. Schedule 5.4 of the Seller Disclosure Schedule
sets forth the unaudited general ledger trial balance of the Business as of
September 30, 2002 (the "Financial Statements"). The Financial Statements fairly
present, in all material respects, the assets

<PAGE>
                                      -26-

and liabilities of the Business as of the date thereof and the revenues and
direct operating expenses of the Business for the nine months ended September
30, 2002, in each case, in conformity with the financial accounting principles
and practices ordinarily used by Seller in the preparation of financial
statements for the Business, as described on Schedule 5.4 of the Seller
Disclosure Schedule, consistently applied ("Seller's Accounting Principles").
Each of the Company and Metaldyne acknowledge that (a) the Business is a fully
integrated operation of Seller, (b) the Financial Statements have been derived
from the consolidated financial statements and accounting records of Seller, and
(c) the Business relies on Seller for administrative, management and other
services.

     5.5 Conduct of Business. Since January 1, 2002, Seller has conducted the
Business in the ordinary course of business and consistent with past practice
and has not:

          (a) suffered any damage, destruction or Loss to any of its assets
     (whether or not covered by insurance) that has had or would reasonably be
     expected to have, individually or in the aggregate, a Business Material
     Adverse Effect;

          (b) taken any action or failed to take any action, or made any
     expenditure or failed to make any expenditure, or entered into or
     authorized any Contract or transaction in connection with the Business, in
     each case having a value in excess of $250,000, other than in the ordinary
     course of business and consistent with past practice;

          (c) sold, transferred, conveyed, assigned or otherwise disposed of any
     assets that, if not sold, transferred, conveyed, assigned or otherwise
     disposed of prior to the Closing, would constitute Transferred Assets or
     any other material assets of the Business, in each case having a value in
     excess of $250,000, except sales of Inventory in the ordinary course of
     business and consistent with past practice;

          (d) made any material changes in the accounting or tax systems,
     policies, principles or practices of the Business, except as required by
     applicable Law, GAAP or as applicable to all or a substantial portion of
     Seller's facilities or operations;

          (e) acquired or leased any assets of the Business outside the ordinary
     course of business or any assets which are material to the Business, in
     each case having a value in excess of $250,000, or made any Transferred
     Assets subject to any Lien except for Permitted Liens;

          (f) terminated or modified, amended or otherwise altered or changed
     any of the material terms or provisions of any Assumed Contract the terms
     of which provide for, individually or in the aggregate, amounts to be paid
     either to or by Seller or the Business in excess of $250,000; or

          (g) agreed to any repricing, giveback or discount pursuant to or in
     connection with any Assumed Contract resulting in payments in excess of
     $250,000 which is not provided for by the terms of such Assumed Contract.

<PAGE>
                                      -27-

     5.6 Title to Properties. Other than Intellectual Property, which is
addressed in Section 5.12, Seller has good and marketable title to, is the
lawful owner or lessee of, and has the right to contribute, transfer, assign and
deliver to the Company, all of the Transferred Assets, in each case, free and
clear of any Liens except for Permitted Liens. At and as of the Closing Date,
Seller will convey the Transferred Assets to the Company by deeds, bills of
sale, certificates of title and other instruments of assignment and transfer
effective to vest in the Company, good and valid record and marketable title to
or leasehold interests in all of the Transferred Assets, free and clear of all
Liens except for Permitted Liens.

     5.7 Sufficiency of Transferred Assets. Other than Intellectual Property of
third parties (which is addressed in Section 5.12), the Transferred Assets and
the Excluded Assets, taken as a whole, comprise all assets and rights used or
useful for the continued conduct of the Business as presently conducted. Other
than Intellectual Property of third parties, the Transferred Assets and the
Excluded Assets, taken as a whole, constitute substantially all the properties
and assets relating to or used or held for use in connection with the Business
during the past 12 months (except Inventory sold, cash disposed of, accounts
receivable collected, prepaid expenses realized, Contracts fully performed, and
assets replaced by equivalent or similar assets, in each case in the ordinary
course of business). Except for the Excluded Assets and Intellectual Property of
third parties, there are no assets used in the operation of the Business and
owned by any Person other than Seller that will not be leased or licensed to the
Company under valid, current leases or license arrangements.

     5.8 Real Property. (a) Schedule 5.8 of the Seller Disclosure Schedules sets
forth an accurate and complete list of all real property owned (including,
without limitation, the Facility) by Seller and any easement rights appurtenant
to the real property or otherwise available to Seller and used primarily or
exclusively in, related primarily or exclusively to, or necessary for, the
conduct of the Business or ownership or operation of the Facility (the "Real
Property"), and sets forth the address and owner of each parcel. Accurate and
complete copies of each deed, title insurance policy and survey related to such
Real Property have previously been provided to Metaldyne. With respect to the
Real Property, to the Knowledge of Seller, the activities carried on by Seller
in all buildings, plants, facilities, installations, fixtures and other
structures or improvements included as part of, or located on or at, the Real
Property, and the buildings, plants, facilities, installations, fixtures and
other structures or improvements themselves, are not in violation of, or in
conflict with, any applicable zoning or building regulations or ordinance or any
other applicable Law relating to real property or improvements thereon.

     (b) There are no mortgages, deeds of trust, ground leases, security
interests or similar encumbrances on the owned Real Property.

     (c) There is no real property used primarily or exclusively in, related
primarily or exclusively to, or necessary for, the conduct of the Business or
ownership or operation of the Facility that is not owned by Seller.

     (d) All water, sewer, gas, electric, telephone, drainage and other
utilities required by applicable Law or necessary for the current or planned
operation of the Real Property have been installed and connected pursuant to
valid permits.

<PAGE>
                                      -28-

     (e) Seller has received no written notice from any Governmental Authority
of any violation of any applicable Law or Governmental Approval issued with
respect to any of the Real Property that has not been corrected heretofore or
which would not reasonably be expected to have, individually or in the
aggregate, a Business Material Adverse Effect. Seller has received no written
notice of any pending or threatened real estate tax deficiency or reassessment
or condemnation of all or any portion of any of the Real Property.

     5.9 Personal Property. Schedule 5.9 of the Seller Disclosure Schedules sets
forth an accurate and complete list of all of the tangible personal property
used primarily or exclusively in, related primarily or exclusively to, or,
except with respect to information technology systems not exclusive to the
Facility and related software and documentation, necessary for, the conduct of
the Business or the operation of the Facility and owned by Seller having an
original acquisition cost of $250,000 or more. Schedule 5.9 of the Seller
Disclosure Schedules also sets forth all material leases of personal property
binding upon Seller and used primarily or exclusively in, related primarily or
exclusively to, or, except with respect to information technology systems not
exclusive to the Facility and related software and documentation, necessary for,
the conduct of the Business, and all material items of personal property covered
thereby.

     5.10 Inventory. The Inventory included in the Financial Statements or
acquired since September 30, 2002: (i) was acquired and has been maintained in
the ordinary course of business, (ii) is of good and merchantable quality; (iii)
is not obsolete; (iv) is valued at an amount not in excess of the lower of cost
or net realizable value; (v) is not subject to any write-down or write-off other
than reserves and allowances set forth on the Financial Statements or, with
respect to Inventory acquired or produced since the September 30, 2002, reserves
and allowances proportionate to the reserves and allowances for Inventory set
forth on the Balance Sheet; and (vi) is located at the Facility. Since September
30, 2002, no items of Inventory have been sold or disposed of except in the
ordinary course of business. Seller is not under any Liability or obligation
with respect to the return of Inventory in the possession of suppliers,
distributors, reseller or customers, other than in the ordinary course of
business and in amounts consistent with past practice. The Inventory (other than
the finished goods inventory in transit which constitute Excluded Assets) shall
be of a type and quality useable or saleable (subject, in the case of raw
materials and work-in-process, to completion of the production process) by the
Company in the ordinary course of business consistent with past practice.

     5.11 Engineering and Development. Seller has no capitalized engineering and
development expenses with respect to the Business.

     5.12 Intellectual Property. (a) Schedule 5.12 of the Seller Disclosure
Schedules sets forth an accurate and complete list of (i) all Filed Intellectual
Property and (ii) all Contracts involving the licensing of any Intellectual
Property (other than commercially available software used on personal computers)
to Seller that is used in and is material to the conduct of the Business and/or
the operation of the Facility as presently conducted and/or operated.

<PAGE>
                                      -29-

          (b) With respect to all Intellectual Property included in the
     Transferred Assets:

               (i) all owned Intellectual Property is owned by Seller free and
          clear of all Liens except for Permitted Liens, and is not subject to
          any license, royalty or other agreement;

               (ii) except for owned Intellectual Property, to the Knowledge of
          Seller, all Intellectual Property is the subject of a valid license in
          favor of Seller or Seller otherwise has a valid right to use it;

               (iii) no Intellectual Property has been or is the subject of any
          pending or, to the Knowledge of Seller, threatened litigation or claim
          alleging infringement;

               (iv) to the Knowledge of Seller, no Person has infringed,
          violated or misappropriated or now infringes, violates or
          misappropriates the rights of Seller with respect to any Intellectual
          Property;

               (v) to the Knowledge of Seller, no party to any license or
          royalty agreement relating to Intellectual Property to which Seller is
          a party is in breach or default, and no written notice of termination
          has been given or is threatened;

               (vi) (A) no product manufactured in the conduct of the Business
          or any process used in the conduct of the Business or the operation of
          the Facility to manufacture any such product is the subject of any
          pending or, to the Knowledge of Seller, threatened litigation or claim
          alleging infringement of an Intellectual Property right of any third
          party, (B) to the Knowledge of Seller, no Current Product or Current
          Process has infringed, violated or misappropriated or now infringes,
          violates or misappropriates any Intellectual Property or confidential
          or proprietary rights of any third party and (C) Seller has not
          received any notice from any third party alleging that any Current
          Product or Current Process infringes any Intellectual Property or
          confidential or proprietary rights of such third party; and

               (vii) to the Knowledge of Seller, the Intellectual Property
          included in the Transferred Assets or licensed to Company under this
          Agreement, other than the Intellectual Property set forth on Schedule
          5.12(vii), comprises all of the Intellectual Property necessary for
          the Company to conduct and operate the Business and the Facility as
          presently conducted and/or operated and to manufacture the Launch
          Products (as defined in the Supply Agreement). Metaldyne acknowledges
          that Seller shall have a period of five (5) Business Days after the
          date hereof within which to deliver to Metaldyne an updated Schedule
          5.12(vii), and any such updates shall be deemed to have been delivered
          as of the date hereof for all purposes of this Agreement.

     5.13 Contracts. (a) Schedule 5.13 of the Seller Disclosure Schedules sets
forth an accurate and complete list of all the Contracts of the following types
to which Seller is a party or by which Seller or any of the Transferred Assets
is bound and which relate exclusively to, or, except with respect to the
Intellectual Property and information technology systems and related software
and

<PAGE>
                                      -30-

documentation, relate primarily to or are necessary for, the conduct of the
Business or the ownership or operation of the Facility:

          (i) any collective bargaining agreement, as well as any document
     modifying, terminating or extending such agreement and any letters of
     understanding or side agreements with respect to such agreements;

          (ii) any Contract or other arrangement of any kind between the
     Business, on the one hand, and Seller's other businesses or any Affiliate
     of Seller, on the other hand;

          (iii) any Contract with any officer or director of Seller or any of
     its Affiliates;

          (iv) any Contract with any employee located at the Facility involving
     an annual payment outside of salary and benefits in excess of $10,000;

          (v) any Assumed Contract with a sales representative, manufacturer's
     representative, promoter, producer, sponsor, distributor, dealer, broker,
     sales agency, advertising agency or other Person engaged in sales,
     distributing or promotional activities, or any Assumed Contract to act as
     one of the foregoing on behalf of any Person;

          (vi) any Assumed Contract of any nature which involves the payment or
     series of payments or receipt of cash or other property, an unperformed
     commitment, or goods or services, or any combination thereof having a value
     in excess of $200,000 per annum;

          (vii) any Contract involving the formation or operation of a
     partnership, joint venture or other cooperative undertaking;

          (viii) any Contract involving any restrictions with respect to the
     geographical area of operations or scope or type of the Business, or, to
     the Knowledge of Seller, any employee of Seller engaged in the Business
     (other than covenants of which the Business is a beneficiary in employment
     or consulting agreements);

          (ix) any Contract (other than this Agreement and the Related
     Agreements), whether or not fully performed, relating to any acquisition or
     disposition of Seller or any predecessor in interest to Seller, or any
     acquisition or disposition of any Assets (other than sales of inventory in
     the ordinary course of business), in each involving amounts in excess of
     $250,000; and

          (x) any Contract containing an option to purchase or sell any
     Transferred Assets or assets that, if sold prior to the Closing, would have
     been Transferred Assets, or containing any right of first refusal to
     acquire or sell any Transferred Assets, in each case having a value in
     excess of $50,000, other than sales of Inventory in the ordinary course of
     business.

     (b) Seller has delivered to the Company accurate and complete copies of
each Contract listed on Schedule 5.13 of the Seller Disclosure Schedules, and
Schedule 5.13 of the Seller Disclosure Schedules contains a written description
of each oral arrangement of the kind listed

<PAGE>
                                      -31-

Known to Seller. All such Contracts, to the extent such Contracts are Assumed
Contracts, are valid and enforceable obligations of Seller and, to the Knowledge
of Seller, each other party thereto and are not subject to termination as a
result of the Transactions. Seller has not received any written notice of
default or termination (or threatened termination) with respect to any such
Assumed Contract.

     (c) Seller has not breached in any material respect any provision of, nor
is it in default in any material respect under the terms of, any material
Assumed Contract, and, to the Knowledge of Seller, no other party to any
material Assumed Contract has breached in any material respect such material
Assumed Contract or is in default (with or without notice or the passage of
time, or both) in any material respect thereunder.

     5.14 No Defaults or Violations. (a) Seller has not breached any provision
of, nor is in default under the terms of, its certificate of incorporation or
bylaws.

     (b) Seller is in compliance with, and no violation exists under, any and
all Laws applicable to the Business, except for such noncompliance or violations
that, individually or in the aggregate would not reasonably be expected to have
a Business Material Adverse Effect.

     (c) Since January 1, 2002, no written notice from any Governmental
Authority has been received by Seller claiming any violation of any applicable
Law (including any building, zoning or other ordinance) or requiring any work,
construction or expenditure, or asserting any Tax, assessment or penalty, in
each case material to the Business taken as a whole. As to any such notice from
any Governmental Authority received prior to January 1, 2002, all matters
therein have been resolved.

     5.15 Governmental Approvals. Schedule 5.15 of the Seller Disclosure
Schedules sets forth an accurate and complete list of all material Governmental
Approvals held by Seller relating to the Business. Seller holds all material
Governmental Approvals that are necessary for the lawful operation of the
Business as presently conducted.

     5.16 Insurance. Seller maintains insurance that is adequate to protect
Seller, the Business and the Facility and their respective conditions against
the Liabilities, claims and risks against which it is customary for companies
involved in the businesses conducted by Seller, the Business and the Facility to
insure.

     5.17 Employment and Labor Matters. (a) Schedule 5.17 of the Seller
Disclosure Schedules sets forth any employment or consulting Contract currently
in effect which relates to the Business that is not terminable at will (other
than collective bargaining agreements or agreements with the sole purpose of
providing for the confidentiality of proprietary information or assignment of
inventions).

     (b) Schedule 5.17 of the Seller Disclosure Schedules sets forth or
describes: (i) all existing and proposed collective bargaining agreements with
respect to any employees engaged in the Business and located at the Facility;
(ii) any existing or proposed mid-term bargaining agreement, effects bargaining
agreement or plant closure agreement with respect to any employees engaged in
the

<PAGE>
                                      -32-

Business and located at the Facility; (iii) any other Contract, written or oral,
affecting the Business with any trade or labor union, employees' association or
similar organization; and (iv) any actual or threatened material labor disputes
affecting the operation of the Facility. Seller and its Subsidiaries have good
labor relations, and Seller has no Knowledge of any facts indicating that the
consummation of the Transactions will have a material adverse effect on such
labor relations or that any key employee engaged in the Business intends to
terminate its employment.

     (c) Seller is in material compliance with all Contracts, including
collective bargaining agreements, relating to employment, employment practices,
wages, hours and terms and conditions of employment of the employees engaged in
the Business. Seller is in material compliance with all applicable Laws with
respect to employment and employment practices, terms and conditions of
employment, wages and hours of work affecting the Business.

     (d) Neither Seller nor any of its ERISA Affiliates has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA or Section
412 of the Code which could reasonably be expected to result in Liability to the
Company.

     5.18 Capital Improvements. The Operating Budget and Capital Plan (as
defined in the Operating Agreement) sets forth a list of all capital
improvements or purchases or other capital expenditures of Seller with respect
to the Business or the Assets that have not been completed prior to the date
hereof.

     5.19 Taxes. (a) All material Taxes that Seller is required by applicable
Law to withhold or collect, including sales and use taxes, and amounts required
to be withheld from employees, have been duly withheld or collected and, to the
extent required, have been paid over to the proper Governmental Authorities or
properly deposited for such purpose. All material information returns relating
to the Business or the Transferred Assets required to be filed by Seller have
been filed, or extensions therefor have been granted, and all statements
required to be furnished to payees by Seller have been furnished to such payees,
and the information set forth on such information returns and statements is
accurate and complete.

     (b) Seller is not a "foreign person" as defined in Section 1445(f)(3) of
the Code.

     5.20 Product Claims and Product Warranty. Schedule 5.20 of the Seller
Disclosure Schedules sets forth an accurate and complete list of all claims,
actions or lawsuits involving any product manufactured or produced at the
Facility that resulted in a settlement or verdict in excess of $500,000 in the
past three (3) years, or that are currently pending or, to the Knowledge of
Seller, threatened, in each case based upon an alleged defect in design,
manufacture, materials or workmanship of any such product, or any alleged
failure to warn or from any breach of express or implied specifications or
warranties or representations. There has not been, nor is there under
consideration or investigation by Seller, any recall, rework, retrofit or
consumer advisory warning concerning any product manufactured or produced at the
Facility or any recall conducted by or on behalf of any entity involving any
such product.

<PAGE>
                                      -33-

     5.21 Environmental Matters. (a) (i) Seller is in compliance in all material
respects with all Environmental Laws applicable to the Business as presently
conducted and the Transferred Assets as presently operated and used and
possesses and complies in all material respects with all Environmental Permits
presently required under such Environmental Laws, and (ii) to the Knowledge of
Seller, there are no present or past Environmental Conditions.

     (b) There is no pending or, to the Knowledge of Seller, threatened
Environmental Claim against Seller relating to the Business or the Transferred
Assets or against any entity relating to the Business or the Transferred Assets
for which Seller may have any Liability.

     (c) To the Knowledge of Seller, there are no Hazardous Materials or other
conditions at, under or emanating from, and there has been no Release at, on or
adjoining, any of the Real Property that would reasonably be expected to give
rise to an Environmental Claim against or Liability of Seller under any
Environmental Law.

     (d) (i) None of the Real Property is (A) listed or proposed for listing on
the National Priorities List promulgated under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), or (B)
listed on the Comprehensive Environmental Response, Compensation, and Liability
Information System promulgated under CERCLA or (C) listed on any comparable list
promulgated or published by any Governmental Authority (including, without
limitation, any such list relating to gasoline or petroleum or oil) and (ii) no
Lien has been recorded under any Environmental Law with respect to any of the
Real Property.

     (e) Seller has not assumed, contractually or by operation of applicable
Law, any Liabilities of any third party under any Environmental Law that affects
the Business or the Transferred Assets.

     (f) The execution and delivery by Seller of this Agreement and the Related
Agreements to which it is to be a party and the consummation by Seller of the
Transactions will not require any Remedial Action under any Environmental Law.

     (g) Seller is not now conducting any Remedial Action under any
Environmental Law, nor is Seller obligated under any order, decree or agreement
with any Governmental Authority to conduct any such Remedial Action, in each
case related to the Business and involving amounts in excess of $100,000.

     (h) To the Knowledge of Seller, there are no underground storage tanks or
related piping, surface impoundments, land disposal sites or friable asbestos
containing material at the Real Property.

     (i) Schedule 5.21 of the Seller Disclosure Schedules sets forth an accurate
and complete list of all Environmental Reports and written notices and
correspondence to or from any Governmental Authority in the possession or
control of Seller or any of its Affiliates in connection with any Environmental
Conditions or current or planned Remedial Action with respect to the Business,
the Real Property (including, without limitation, the Facility) or any other
Transferred Assets. A

<PAGE>
                                      -34-

copy of such Environmental Reports and written notices and correspondence has
previously been provided to Metaldyne.

     (j) Schedule 1.2 sets forth all Environmental Conditions of which Seller
has any Knowledge.

     5.22 Litigation. (a) There are no actions, suits, claims, notices of
potential claims, requests for accommodation, arbitrations, regulatory
proceedings or other litigation, proceedings or governmental investigations
pending or, to the Knowledge of Seller, threatened against or affecting the
Business or any of the Transferred Assets that would reasonably be expected to
have, individually or in the aggregate, a Business Material Adverse Effect.
Seller is not subject to any order, judgment, decree, injunction, stipulation or
consent order of or with any court or other Governmental Authority affecting the
Business or the Transferred Assets. Since January 1, 2000, Seller has not
entered into any agreement to settle or compromise any proceeding pending or
threatened against or affecting the Business or any of the Transferred Assets
which has involved any Liability other than the payment of money or for which
the Business has any continuing Liability.

     (b) There are no claims, actions, suits, proceedings or investigations
pending or, to the Knowledge of Seller, threatened by or against Seller, any of
its officers, directors, employees or agents in their capacities as such, or the
Business or any of the Transferred Assets, with respect to this Agreement or the
Related Agreements, or in connection with the Transactions.

     5.23 Brokers. Except for Donnelly, Penman, French, Haggarty & Co., Seller
has not used any broker or finder in connection with the Transactions, and none
of the Company, Metaldyne or any of their respective Affiliates has or shall
have any Liability or otherwise suffer or incur any Loss as a result of, or in
connection with, any brokerage or finder's fee or other commission of any Person
retained by Seller or any of its Affiliates in connection with this Agreement,
the Related Agreements or any of the Transactions.

     5.24 Customers and Suppliers. (a) Since September 30, 2001, none of the top
five customers (as identified by Seller's product platform group) of or top ten
suppliers (including subcontractors thereof) to the Business, in each case
measured by dollar volume for the twelve months ended as of September 30, 2002,
has (i) notified Seller in writing that it intends to discontinue its
relationship with Seller, (ii) notified Seller in writing that it intends to
materially reduce its trading with or provision of supplies to Seller, or (iii)
materially changed the terms on which it is prepared to purchase from, trade
with or supply Seller. Schedule 5.24 of the Seller Disclosure Schedules sets
forth an accurate and complete list of each material Assumed Contract with the
suppliers of the Business, in each case involving annual payments in excess of
$50,000. Copies of each such Assumed Contract and of each standard business
agreement (i.e., purchase orders, invoices and the like) used by Seller have
previously been provided to Metaldyne.

     (b) There are no material disputes with any of the top ten suppliers of the
Business for the 12 months ended November 30, 2002, including, but not limited
to, disputes regarding tooling monies, expenses for premium freight, expenses
arising from quality issues and costs arising from capacity disputes.

<PAGE>
                                      -35-

     5.25 Health and Safety; Asbestos. (a) The Facility is in compliance with
the Occupational Safety and Health Act, as amended ("OSHA"), and all other
applicable Laws with respect to occupational safety and health, except for
failures to so comply that would not reasonably be expected to have,
individually or in the aggregate, a Business Material Adverse Effect. There are
no actions, suits, claims, notices of potential claims, regulatory proceedings
or other litigation, proceedings or governmental investigations pending or, to
the Knowledge of Seller, threatened against or affecting the Business of any of
the Transferred Assets, in each case based upon an alleged violation of OSHA or
any other applicable Law with respect to occupational safety and health, except
such as would not reasonably be expected to have, individually or in the
aggregate, a Business Material Adverse Effect.

     (b) There are no actions, suits, claims, notices of potential claims,
regulatory proceedings or other litigation, proceedings or governmental
investigations pending or, to the Knowledge of Seller, threatened against or
affecting the Business of any of the Transferred Assets, in each case based upon
an alleged exposure to asbestos at the Facility or the Real Property or based
upon an alleged exposure to any other substance or condition at the Facility or
the Real Property that is alleged to violate OSHA or any other applicable Law
with respect to occupational safety and health.

     5.26 Disclosure. Seller has previously provided or made available to
Metaldyne accurate and complete copies, in all material respects, of each
document listed or referred to on the schedules to this Agreement.

     5.27 No Other Representations or Warranties. Except for the representations
and warranties of Seller expressly set forth in this Agreement or any of the
Related Agreements, neither Seller nor any other Person makes any other express
or implied representation or warranty on behalf of Seller, in each case, in
respect to the Business or the Transferred Assets. The representations and
warranties made in this Agreement and the Related Agreements in respect to the
Business or the Transferred Assets are in lieu of all other warranties Seller
might have given the Company or Metaldyne, including, without limitation,
implied warranties of merchantability and implied warranties of fitness for
intended use. All other warranties that Seller or anyone purporting to represent
Seller gave or might have given, or which might be provided or implied by
applicable law or commercial practice, in respect to the Business or the
Transferred Assets are hereby expressly excluded.

                                   ARTICLE VI

               ADDITIONAL REPRESENTATIONS AND WARRANTIES OF SELLER

     In addition to the representations and warranties in Article IV, Seller
represents and warrants to Metaldyne that, except as set forth in the
corresponding schedule of the Seller Disclosure Schedules delivered by Seller to
Metaldyne immediately prior to execution of this Agreement (it being agreed that
disclosure of any item on a particular Schedule of the Seller Disclosure
Schedules shall be deemed disclosure of such item on each other Schedule of the
Seller Disclosure Schedules where the relevance of such item to such other
Schedule is reasonably apparent on its face):

<PAGE>
                                      -36-

     6.1 Due Formation. The Company is a limited liability company duly formed,
validly existing and in good standing under the Laws of the State of Delaware,
with all requisite power and authority to own, lease and operate the Transferred
Assets and to carry on the Business as it is now being owned, leased, operated
and conducted. As of the Closing Date, the Company will be licensed or qualified
to do business and will be in good standing as a foreign limited liability
company in each jurisdiction where the nature of Transferred Assets and the
Business requires such licensing or qualification, except where the failure to
be so licensed or qualified would not reasonably be expected to have a Company
Material Adverse Effect. Accurate and complete copies of (i) the certificate of
formation and any limited liability company operating agreement of the Company
as currently in effect and (ii) the books and records of the Company have been
delivered to Metaldyne. Before giving effect to the Contribution, the Company
will have no assets or operations other than those related to its formation.

     6.2 Due Authorization. The Company has full power and authority to execute
and deliver this Agreement and the Related Agreements to which it is to be a
party and to perform its obligations and consummate the transactions
contemplated hereby and thereby. The execution, delivery and performance by the
Company of this Agreement and the Related Agreements to which it is to be a
party have been duly and validly approved by all actions or proceedings on the
part of the Company necessary to authorize this Agreement, the Related
Agreements to which it is to be a party or the transactions contemplated hereby
and thereby. The Company has duly and validly executed and delivered this
Agreement and, on the Closing Date, will have duly and validly executed and
delivered the Related Agreements to which it is to be a party. This Agreement
constitutes and, on the Closing Date, the Related Agreements to which it is to
be a party will constitute (assuming, in each case, due execution and delivery
by the other parties thereto), legal, valid and binding obligations of the
Company, enforceable against the Company in accordance with their respective
terms, except to the extent such enforceability may be limited by applicable
bankruptcy, insolvency, moratorium, reorganization, fraudulent transfer or other
similar laws of general applicability relating to or affecting creditors' rights
from time to time in effect and general principles of equity, including concepts
of materiality, reasonableness, good faith and fair dealing, regardless of
whether in a proceeding in equity or at law.

     6.3 Consents and Approvals; No Violations. (a) Schedule 6.3 of the Seller
Disclosure Schedule lists all material Governmental Approvals and consents,
authorizations or approvals of, or filings or registrations with, any other
Person not a party to this Agreement that are required to be made or obtained by
the Company in connection with the execution, delivery and performance by the
Company of this Agreement or the Related Agreements to which it is to be a party
or the consummation of the transactions contemplated hereby or thereby.

     (b) The execution, delivery and performance by the Company of this
Agreement and the Related Agreements to which it is to be a party and the
consummation of the transactions contemplated hereby and thereby do not and will
not: (i) violate any Law applicable to the Company, except for such violations
as would not reasonably be expected to have, individually or in the aggregate, a
Company Material Adverse Effect; or (ii) violate or conflict with any provision
of any of, or cause the dissolution of the Company pursuant to, the certificate
of formation or any limited liability operating agreement of the Company or the
Delaware Limited Liability Company Act.

<PAGE>
                                      -37-

     (c) The Company is not, and before giving effect to the Contribution the
Company will not be, a party to any Contract other than this Agreement or the
Related Agreements.

     6.4 Capitalization; Title to Units. (a) The authorized Capital Stock of the
Company consists of 100 Class A Units and 100 Class B Units. As of the date
hereof, there is outstanding one Class A Unit, which is owned beneficially and
of record by Seller, and no Class B Units. As of the Closing Date after giving
effect to the Contribution but before giving effect to the Transfer, there will
be outstanding 100 Class A Units and 100 Class B Units, all of which will be
owned beneficially and of record by Seller. As of the Closing Date after giving
effect to all of the Transactions, there will be outstanding 100 Class A Units,
60% of which will be owned beneficially and of record by Seller and 40% of which
will be owned beneficially and of record by Metaldyne, and 100 Class B Units,
all of which will be owned beneficially and of record by Seller. All outstanding
Units of the Company have been duly authorized and validly issued and are fully
paid and non-assessable. Except as contemplated by this Agreement or the Related
Agreements, there are no outstanding (i) limited liability company interests or
voting securities of the Company, (ii) securities of the Company convertible
into or exchangeable for limited liability company interests or voting
securities of the Company or (iii) options, agreements or other rights to
acquire from the Company or Seller, or other obligations of the Company to
issue, any limited liability company interests, voting securities or securities
convertible into or exchangeable for limited liability company interests or
voting securities of the Company. There are no outstanding obligations of the
Company to repurchase, redeem or otherwise acquire any securities.

     (b) As of the date hereof, except for Seller, no Person has any rights as a
member or manager of the Company under any applicable Law. As of the Closing
Date after giving effect to Contribution and the Transfer, except for Seller and
Metaldyne, no Person will have any rights as a member or manager of the Company
under any applicable Law.

     (c) On the Closing Date after giving effect to the Contribution but before
giving effect to the Transfer, Seller will have good and valid title to the
Transferred Units, free and clear of any Liens. Upon the Transfer of the
Transferred Units to Metaldyne pursuant to this Agreement, Seller will convey
good and valid title to the Transferred Units, free and clear of any Liens or
any other restriction or limitation whatsoever, except as set forth in this
Agreement or the Related Agreements.

     6.5 No Liabilities. The Company has, and prior to the Contribution the
Company will have, no Liabilities or Indebtedness, other than in connection with
its formation. At the Closing, the Company will have no Indebtedness whatsoever
and no Liabilities, other than the Assumed Liabilities or in connection with
this Agreement and the Related Agreements.

     6.6 Brokers. The Company has not used any broker or finder in connection
with the Transactions, and none of the Company, Metaldyne or any of their
respective Affiliates has or shall have any Liability or otherwise suffer or
incur any Loss as a result of, or in connection with, any brokerage or finder's
fee or other commission of any Person retained by the Company or any of its
Affiliates in connection with this Agreement, the Related Agreements or any of
the Transactions.

<PAGE>
                                      -38-

     6.7 No Other Representations or Warranties. Except for the representations
and warranties of Seller expressly set forth in this Agreement or any of the
Related Agreements, neither Seller nor any other Person makes any other express
or implied representation or warranty on behalf of Seller, in each case, in
respect to the Company. The representations and warranties made in this
Agreement and the Related Agreements in respect to the Company are in lieu of
all other warranties Seller might have given Metaldyne. All other warranties
that Seller or anyone purporting to represent Seller gave or might have given,
or which might be provided or implied by applicable law or commercial practice,
in respect to the Company are hereby expressly excluded.

                                   ARTICLE VII

                   REPRESENTATIONS AND WARRANTIES OF METALDYNE

     Metaldyne represents and warrants to Seller, except as set forth in the
corresponding schedule of the disclosure schedules delivered by Metaldyne to
Seller and immediately prior to execution of this Agreement (the "Metaldyne
Disclosure Schedules") (it being agreed that disclosure of any item on a
particular Schedule of the Metaldyne Disclosure Schedules shall be deemed
disclosure of such item on each other Schedule of the Metaldyne Disclosure
Schedules where the relevance of such item to such other Schedule is reasonably
apparent on its face):

     7.1 Due Incorporation. Metaldyne is a corporation duly incorporated,
validly existing and in good standing under the Laws of the State of Delaware,
with all requisite corporate power and authority to own, lease and operate its
assets and to carry on its business as they are now being owned, leased,
operated and conducted. Metaldyne is licensed or qualified to do business and is
in good standing as a foreign corporation in each jurisdiction where the nature
of the its assets and business requires such licensing or qualification, except
where the failure to be so licensed or qualified would not reasonably be
expected to have a Metaldyne Material Adverse Effect. Accurate and complete
copies of the certificate of incorporation and bylaws of Metaldyne as currently
in effect have been delivered to Seller.

     7.2 Due Authorization. (a) Metaldyne has full corporate power and authority
to execute and deliver this Agreement and the Related Agreements to which it is
to be a party and to perform its obligations and consummate the transactions
contemplated hereby and thereby. The execution, delivery and performance by
Metaldyne of this Agreement and the Related Agreements to which it is to be a
party have been duly and validly approved by all other corporate actions or
proceedings on the part of Metaldyne necessary to authorize this Agreement, the
Related Agreements to which it is to be a party or the transactions contemplated
hereby and thereby. Metaldyne has duly and validly executed and delivered this
Agreement and, on the Closing Date, will have duly and validly executed and
delivered, the Related Agreements to which it is to be a party. This Agreement
constitutes and, on the Closing Date, the Related Agreements to which it is to
be a party will constitute (assuming, in each case, due execution and delivery
by the other parties thereto) legal, valid and binding obligations of Metaldyne,
enforceable against Metaldyne in accordance with their respective terms, except
to the extent such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization, fraudulent transfer or other similar
laws of general applicability relating to or affecting creditors' rights from
time to time in effect and general principles of equity, including concepts of

<PAGE>
                                      -39-

materiality, reasonableness, good faith and fair dealing, regardless of whether
in a proceeding in equity or at law.

     (b) The shares of Series A-1 Preferred Stock, par value $1.00 per share,
having the rights, privileges and preferences set forth in the form of
Certificate of Designation attached to the Operating Agreement (the "Series A-1
Preferred Stock"), issuable to Seller in connection with a Metaldyne Call Option
Closing have been duly authorized for issuance and sale to Seller pursuant to
the Operating Agreement, and, when issued and delivered by Metaldyne pursuant to
the Operating Agreement against payment of the consideration set forth therein,
will be validly issued, fully paid and non-assessable. The shares of the Series
A-2 Preferred Stock, par value $1.00 per share, having the rights, privileges
and preferences set forth in the Certificate of Designation attached to the
Operating Agreement (the "Series A-2 Preferred Stock"), issuable to the holders
of the Series A-1 Preferred Stock in exchange for shares of Series A-1 Preferred
Stock pursuant to such Certificate of Designation have been duly authorized for
issuance pursuant to the terms of such Certificate of Designation, and when
issued and delivered by Metaldyne pursuant thereto will be validly issued fully
paid and nonassessable. Any such issuance of shares of the Series A-1 Preferred
Stock or the Series A-2 Preferred Stock is not subject to any preemptive or
other similar rights of any security holder of Metaldyne.

     7.3 Consents and Approvals; No Violations. (a) Schedule 7.3 of the
Metaldyne Disclosure Schedules lists all material Governmental Approvals and no
consents, authorizations or approvals of, or filings or registrations with, any
Governmental Authority or any other Person not a party to this Agreement are
required to be made or obtained by Metaldyne or any of its Subsidiaries in
connection with the execution, delivery and performance by Metaldyne or any of
its Subsidiaries of this Agreement or the Related Agreements to which it is to
be a party or the consummation of the transactions contemplated hereby or
thereby.

     (b) The execution, delivery and performance by Metaldyne of this Agreement
and the Related Agreements to which it is to be a party and the consummation of
the transactions contemplated hereby and thereby do not and will not: (i)
violate any Law applicable to Metaldyne or any of its Subsidiaries; (ii)
violate, result in the breach, acceleration, termination, modification or
cancellation of, require any consent under, result in the creation of any Lien
upon any of the assets of Metaldyne or any of its Subsidiaries under, or give
any third party the right to accelerate, terminate, modify or cancel, any
Contract to which Metaldyne or any of its Subsidiaries is a party or by which
Metaldyne or any of its Subsidiaries or any of their assets are bound or
subject, (iii) constitute an event which, after notice or lapse of time or both,
would result in any such violation, breach, acceleration, termination,
cancellation, require any such consent, result in any such Lien or give rise to
any such right or (iv) violate or conflict with any provision of any of, or
cause the dissolution of Metaldyne or any of its Subsidiaries pursuant to, the
certificate of incorporation or bylaws of Metaldyne or any of its Subsidiaries
or the Delaware General Corporation Law, with such exceptions, in the case of
clauses (i), (ii) and (iii), as would not reasonably be expected to have,
individually or in the aggregate, a Metaldyne Material Adverse Effect.

     7.4 Subsidiaries; Equity Investments. (a) Each Subsidiary of Metaldyne is a
corporation or other entity duly incorporated or formed, validly existing and in
good standing under

<PAGE>
                                      -40-

the Laws of its jurisdiction of incorporation or formation and has all corporate
or comparable power and authority required to own, lease and operate its assets
and to carry on its business as they are now being owned, leased, operated or
conducted. Each such Subsidiary is licensed or qualified to do business and is
in good standing as a foreign corporation or other entity in each jurisdiction
where the nature of its assets and its business requires such licensing or
qualification, except where the failure to be so licensed or qualified would not
reasonably be expected to have, individually or in the aggregate, a Metaldyne
Material Adverse Effect.

     (b) All of the outstanding Capital Stock of, or other voting securities or
ownership interests in, each Subsidiary of Metaldyne is owned by Metaldyne,
directly or indirectly, free and clear of any Lien and free of any other
limitation or restriction (including any restriction on the right to vote, sell
or otherwise dispose of such Capital Stock or other voting securities or
ownership interests). All of the outstanding shares of Capital Stock of each
Subsidiary of Metaldyne have been validly issued and are fully paid and
non-assessable. There are no outstanding (i) securities of Metaldyne or any of
its Subsidiaries convertible into or exchangeable for shares of Capital Stock or
other voting securities or ownership interests in any Subsidiary of Metaldyne or
(ii) options or other rights to acquire from Metaldyne or any of its
Subsidiaries, or obligations of Metaldyne or any of its Subsidiaries to issue or
to repurchase, redeem or otherwise acquire, any Capital Stock or other voting
securities or ownership interests in, or any securities convertible into or
exchangeable for any Capital Stock or other voting securities or ownership
interests in, any Subsidiary of Metaldyne.

     7.5 Capitalization. (a) The authorized Capital Stock of Metaldyne consists
of 250,000,000 shares, par value $1.00 per share, of common stock (the "Common
Stock") and 25,000,000 shares, par value $1.00 per share, of preferred stock
(the "Preferred Stock"), of which 370,000 shares have been designated as Series
A Preferred Stock and 184,153 shares have been designated as Series B Preferred
Stock. As of the close of business on September 30, 2002, (i) 44,643,637 shares
of Common Stock were issued and outstanding, (ii) 545,154 shares of Preferred
Stock were issued and outstanding, of which 361,001 shares have been designated
as Series A Preferred Shares and 184,153 shares have been designated as Series B
Preferred Shares, (iii) no shares of Common Stock were held by Metaldyne in its
treasury; (iv) 644,540 shares of Preferred Stock have been reserved for issuance
as Series A-1 Preferred Stock and (iv) 644,540 shares of Preferred Stock have
been reserved for issuance as Series A-2 Preferred Stock. All outstanding shares
of Capital Stock have been duly authorized and validly issued and are fully paid
and nonassessable.

     (b) Except as set forth on Schedule 7.5 of the Metaldyne Disclosure
Schedules, there are no outstanding (i) shares of Capital Stock or voting
securities of Metaldyne, (ii) securities of Metaldyne convertible into or
exchangeable for shares of Capital Stock or voting securities of Metaldyne,
(iii) options, warrants or other rights agreements, arrangements or commitments
to acquire from Metaldyne, or obligations of Metaldyne to issue or to
repurchase, redeem or otherwise acquire or retire, any Capital Stock, voting
securities or securities convertible into or exchangeable for Capital Stock or
voting securities of Metaldyne or (iv) stock appreciation, phantom stock or
similar rights with respect to Metaldyne.

     (c) None of the outstanding shares of Capital Stock of Metaldyne were
issued in violation of preemptive or other similar rights of any security holder
of Metaldyne. Metaldyne has

<PAGE>
                                      -41-

not violated any applicable foreign, federal or state securities laws in
connection with the offer, sale or issuance of any of its Capital Stock or
rights to acquire Capital Stock, except for such violations that would not
reasonably be expected to have, individually or in the aggregate, a Metaldyne
Material Adverse Effect. In the event of the Metaldyne Call Option Closing, the
offer, sale and issuance of the Series A-1 Preferred Stock pursuant to the
Operating Agreement will not require registration under the Securities Act or
any applicable state securities laws (including as a result of integration of
one or more such offerings). Except as provided in the Metaldyne Shareholders
Agreement, there are no statutory or contractual stockholders preemptive rights
or rights of first refusal with respect to the issuance of the Series A-1
Preferred Stock pursuant to the Operating Agreement. There are no agreements
between Metaldyne's stockholders with respect to the voting or transfer of
Metaldyne's Capital Stock or with respect to any other aspect of Metaldyne's
affairs except as set forth in the Metaldyne Shareholders Agreement and/or the
Metaldyne SEC Documents.

     7.6 Metaldyne SEC Documents. (a) Metaldyne has delivered or made available
to Seller (i) Metaldyne's annual reports on Form 10-K for its fiscal year ended
December 31, 2001, (ii) its quarterly report on Form 10-Q for its fiscal quarter
ending September 30, 2002, (iii) its proxy statement relating to the 2002 annual
meeting of stockholders of Metaldyne and (iv) all of its other reports,
statements, schedules and registration statements filed with the Securities and
Exchange Commission (the "SEC") since December 31, 2001 (the documents referred
to in this Section 7.6(a), collectively, the "Metaldyne SEC Documents").

     (b) As of its filing date, each Metaldyne SEC Document complied as to form
in all material respects with the applicable requirements of the Exchange Act.

     (c) As of its filing date, each Metaldyne SEC Document did not contain any
untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in the light of the circumstances
under which they were made, not misleading. No Subsidiary of Metaldyne is
subject to the periodic reporting requirements of the Exchange Act. As of the
date hereof, there are no material unresolved comments issued by the staff of
the SEC with respect to any of the Metaldyne SEC Documents.

     (d) Except as set forth in the Metaldyne SEC Documents, (i) neither
Metaldyne nor any of its Subsidiaries is indebted to any director or officer of
Metaldyne or any of its Subsidiaries (except for amounts due as normal salaries
and bonuses, in reimbursement of ordinary business expenses and directors'
fees), (ii) no director or officer of Metaldyne is indebted to Metaldyne or any
of its Subsidiaries and (iii) there have been no other transactions of the type
required to be disclosed pursuant to Items 402 or 404 of Regulation S-K
promulgated by the SEC.

     7.7 Financial Statements. (a) The audited consolidated financial statements
and unaudited consolidated interim financial statements of Metaldyne included in
the Metaldyne SEC Documents fairly present, in all material respects, the
consolidated financial position of Metaldyne and its consolidated Subsidiaries
as of the dates thereof and their consolidated results of operations, changes in
stockholders equity and cash flows for the periods then ended (subject to normal
year-end adjustments and the absence of notes in the case of any unaudited
interim financial statements) in conformity with GAAP applied on a consistent
basis (except as may be indicated in the notes thereto).

<PAGE>
                                      -42-

     (b) The accountants who certified the financial statements and supporting
schedules included in Metaldyne's annual reports on Form 10-K for its fiscal
year ended December 31, 2001 are independent public accountants as required by
the Securities Act.

     7.8 Conduct of Business. Since September 30, 2002, Metaldyne and its
Subsidiaries, taken as a whole, have conducted their business in the ordinary
course of business and consistent with past practice and have not:

          (a) suffered any damage, destruction or Loss to any of their assets
     (whether or not covered by insurance) that has had or would reasonably be
     expected to have, individually or in the aggregate, a Metaldyne Material
     Adverse Effect;

          (b) taken any action or failed to take any action, or made any
     expenditure or failed to make any expenditure, or entered into or
     authorized any Contract or transaction, in each case having a value in
     excess of $1,000,000, other than in the ordinary course of business and
     consistent with past practice;

          (c) declared, set aside or paid any dividend or other distribution
     with respect to any shares of Capital Stock of Metaldyne, or repurchased,
     redeemed or otherwise acquired any outstanding shares of Capital Stock or
     other securities of, or other ownership interests in, Metaldyne or any of
     its Subsidiaries (other than ordinary course open market purchases made in
     connection with Metaldyne's stock incentive plan);

          (d) amended any material term of any outstanding security of Metaldyne
     or any of its Subsidiaries;

          (e) incurred, assumed or guaranteed any Indebtedness in excess of
     $1,000,000, individually or in the aggregate, other than (i) between
     Metaldyne and its Subsidiaries or between two or more of Metaldyne
     Subsidiaries or (ii) trade payables in the ordinary course of business
     consistent with past practice;

          (f) sold, transferred, conveyed, assigned or otherwise disposed of any
     assets of the business of Metaldyne or any of its Subsidiaries where the
     relevant asset has a value in excess of $1,000,000, except sales of (i)
     inventory in the ordinary course of business and consistent with past
     practice; (ii) accounts receivables in securitization financing
     transactions or (iii) equipment in sale leaseback financing transactions;

          (g) made any material changes in any method of the accounting or tax
     systems, policies, principles or practice by Metaldyne or any of its
     Subsidiaries, except as required by GAAP, Regulation S-X under the Exchange
     Act or other applicable Law;

          (h) acquired or leased any assets outside the ordinary course of
     business or made any of their material properties subject to any Lien;

          (i) authorized or made any capital expenditures which individually or
     in the aggregate are in excess of $1,000,000 other than capital
     expenditures contemplated by the

<PAGE>
                                      -43-

     budget for the business of Metaldyne and its Subsidiaries previously
     delivered or made available to Seller;

          (j) terminated or modified, amended or otherwise altered or changed
     any of the material terms or provisions of any material Contract the terms
     of which provide for, individually or in the aggregate, amounts to be paid
     either to or by Metaldyne or any of its Subsidiaries in excess of
     $1,000,000; or

          (k) (i) adopted or amended in any material respect any bonus, profit
     sharing, compensation, severance, termination, stock option, stock
     appreciation right, pension, retirement, employment or other employee
     benefit agreement, trust, plan or other arrangement for the benefit or
     welfare of any director or elected officer of Metaldyne or any of its
     Subsidiaries, (ii) increased in any material respect any compensation or
     fringe benefits of any director or elected officer of Metaldyne or any of
     its Subsidiaries or (iii) made payment of any benefit not required by any
     existing agreement or placed any assets in any trust for the benefit of any
     director or elected officer of Metaldyne or any of its Subsidiaries not
     required by any existing agreement.

     7.9 Insurance. Metaldyne and/or its Subsidiaries maintain insurance that is
adequate to protect Metaldyne and its Subsidiaries and their respective
financial conditions against the Liabilities, claims and risks against which it
is customary for companies involved in the businesses conducted by Metaldyne and
its Subsidiaries to insure.

     7.10 Litigation. (a) Except as set forth in the Metaldyne SEC Documents,
there are no actions or suits, arbitrations, regulatory proceedings or other
litigation, proceedings or governmental investigations pending or, to the
Knowledge of Metaldyne, threatened against or affecting the business of
Metaldyne or any of its Subsidiaries that would reasonably be expected to have,
individually or in the aggregate, a Metaldyne Material Adverse Effect. Except as
set forth in the Metaldyne SEC Documents, neither Metaldyne nor any of its
Subsidiaries is subject to any order, judgment, decree, injunction, stipulation
or consent order of or with any court or other Governmental Authority affecting
the business of Metaldyne or any of its Subsidiaries that would reasonably be
expected to have, individually or in the aggregate, a Metaldyne Material Adverse
Effect.

     (b) There are no claims, actions, suits, proceedings or investigations
pending or, to the Knowledge of Metaldyne, threatened by or against Metaldyne or
any of its Subsidiaries or any of their respective officers, directors,
employees or agents in their capacities as such, with respect to this Agreement
or the Related Agreements or in connection with the Transactions.

     7.11 Outstanding Debt. Except as set forth in the Metaldyne SEC Documents
(including, without limitation, as reflected in the financial statements
included in the Metaldyne SEC Documents), neither Metaldyne nor any of its
Subsidiaries has any outstanding Indebtedness or is a guarantor or otherwise
contingently liable for any such Indebtedness. There exists no default by
Metaldyne or any of its Subsidiaries (or to the Knowledge of Metaldyne, by any
other party) under the provisions of any instrument evidencing any Indebtedness
of Metaldyne or any of its Subsidiaries, or of any agreement relating thereto.

<PAGE>
                                      -44-

     7.12 No Undisclosed Liabilities. There are no liabilities or obligations of
Metaldyne or any of its Subsidiaries of any kind whatsoever, whether accrued,
contingent, absolute, determined, determinable or otherwise, other than: (a)
liabilities or obligations disclosed in the Metaldyne SEC Documents (including,
without limitation, liabilities and obligations provided for in the financial
statements included in the Metaldyne SEC Documents); (b) liabilities or
obligations incurred in the ordinary course of business consistent with past
practice since September 30, 2002; (c) liabilities or obligations under this
Agreement and the Related Agreements; and/or (d) liabilities or obligations that
would not reasonably be expected to have, individually or in the aggregate, a
Metaldyne Material Adverse Effect.

     7.13 Brokers. Metaldyne has not used any broker or finder in connection
with the Transactions, and neither Seller nor any Affiliate of Seller has or
shall have any Liability or otherwise suffer or incur any Loss as a result of,
or in connection with, any brokerage or finder's fee or other commission of any
Person retained by Metaldyne in connection with any of the Transactions.

     7.14 Investment Company Act. Neither Metaldyne nor any of its Subsidiaries
is, nor in the event of the Metaldyne Call Option Closing and the issuance and
sale of the Series A-1 Preferred Stock pursuant to the Operating Agreement and
after the application of the net proceeds therefrom will be, an "investment
company" or an entity "controlled" by an "investment company" as such terms are
defined in the Investment Company Act of 1940, as amended.

     7.15 Registration Rights. Except as provided by the Metaldyne Shareholders
Agreement or otherwise disclosed in the Metaldyne SEC Documents, there are no
Persons with registration rights or other similar rights to have any securities
registered by Metaldyne under the Securities Act.

     7.16 No Other Representations or Warranties. Except for the representations
and warranties of Metaldyne expressly set forth in this Agreement or any of the
Related Agreements, neither Metaldyne nor any other Person makes any other
express or implied representation or warranty on behalf of Metaldyne, in each
case, in respect to Metaldyne or any of its Subsidiaries. The representations
and warranties made in this Agreement and the Related Agreements in respect to
Metaldyne and its Subsidiaries are in lieu of all other warranties Metaldyne
might have given Seller. All other warranties that Metaldyne or anyone
purporting to represent Metaldyne gave or might have given, or which might be
provided or implied by applicable law or commercial practice, in respect to
Metaldyne or its Subsidiaries are hereby expressly excluded.

                                  ARTICLE VIII

                                    COVENANTS

     8.1 Implementing Agreement. On the terms and subject to the conditions
hereof, from and after the date hereof, each party hereto shall use its
commercially reasonable efforts to take all action required of it to fulfill its
obligations under the terms of this Agreement, and to facilitate the
consummation of the transactions contemplated hereby. Subject to the terms and
conditions of this Agreement, each party hereby agrees that it shall not,
directly or indirectly, take any other action (or

<PAGE>
                                      -45-

refrain from taking any action) that would reasonably be expected to have the
effect of preventing or materially delaying such party's performance of its
obligations under this Agreement, except as required by applicable Law. Each of
the parties shall keep the other parties reasonably apprised of the status of
matters relating to the completion of the transactions contemplated hereby,
including promptly furnishing the other with copies of material notices or other
material written communications received by any of them or by any of their
Subsidiaries, from any third party and/or Government Authority with respect to
the transactions contemplated by this Agreement, which would reasonably be
expected to result in the prevention or material delay of the transactions
contemplated hereby.

     8.2 Access to Information and Facilities. From and after the date hereof
and subject to applicable Law, Seller shall give Metaldyne and Metaldyne's
representatives reasonable access at reasonable times, on reasonable notice, to
all of the Transferred Assets and the books and records of Seller used in or
related to the Business (including, without limitation, the Facility), and shall
make Seller's officers, managers and employees who have responsibility for the
Business, reasonably available to Metaldyne and its representatives as Metaldyne
and its representatives, in each case, shall from time to time request upon
reasonable notice. All information and documents obtained by Metaldyne shall be
subject to the Confidentiality Agreement between Metaldyne and Seller dated
October 9, 2001.

     8.3 Consents and Approvals. Each of Seller and Metaldyne shall use its
commercially reasonable efforts to obtain all consents, approvals, certificates
and other documents required in connection with the performance by it of this
Agreement and the Related Agreements to which it is to be a party and the
consummation of the transactions contemplated hereby and thereby and which are
set forth on Schedules 5.3 and 6.3 of the Seller Disclosure Schedules and
Schedule 7.3 of the Metaldyne Disclosure Schedules; provided, however, that
neither Seller nor Metaldyne shall incur any obligation or be obligated to pay
any additional consideration therefor, other than (i) nominal filing,
application or similar costs or fees, (ii) nominal amounts to cover processing
and review by third parties of such consents, approvals, certificates and
documents, including de minimis amounts of attorneys' fees, and (iii) any
amounts that were due and payable prior to Closing, which amounts are required
by Contract or applicable Law to be paid prior to consummation of the
transactions contemplated hereby; provided, further, however, that no contact
shall be made by Seller or Metaldyne or any representative of Seller or
Metaldyne with any third party to obtain any such consent or approval except
following prior consultation with the other party. Each of Seller and Metaldyne
shall make all filings, applications, statements and reports to all Governmental
Authorities and other Persons that are required to be made by it prior to the
Closing Date by, or on behalf of, any such party pursuant to any applicable Law
or Contract in connection with this Agreement and the Related Agreements and the
transactions contemplated hereby and thereby.

     8.4 Use of Name. From and after the Closing Date, Seller agrees that it
shall not, and that it shall cause its Affiliates not to, directly or
indirectly, use as a trade name, trademark or service mark the name "NC-M
Chassis Systems", or any other name that is confusingly similar thereto in sound
or appearance. From and after the Closing Date, the Company agrees that it shall
not, and that it shall cause its Affiliates not to, directly or indirectly, use
as a trade name, trademark or service mark that is confusingly similar to any
trade name, trademark or service mark of Seller or of any of Seller's
Affiliates.

<PAGE>
                                      -46-

     8.5 Transfer Taxes. (a) Seller shall be responsible for the timely payment
of, and shall indemnify and hold harmless the Company against, all sales
(including, without limitation, bulk sales), use, value added, documentary,
stamp, gross receipts, registration, transfer, conveyance, real property gains
or transfer, excise, recording, license and other similar taxes and fees
("Transfer Taxes"), arising out of or in connection with or attributable to the
transactions effected pursuant to this Agreement and the Related Agreements.

     (b) As between Seller and the Company on the one hand, and Metaldyne, on
the other hand, the party that has the primary responsibility under applicable
Law for filing any Tax Return required to be filed in respect of Transfer Taxes
shall prepare and timely file such Tax Return; provided that such party's
preparation of such Tax Return shall be subject to the other party's approval,
which approval shall not be withheld unreasonably.

     (c) The parties will cooperate with each other in attempting to minimize
Transfer Taxes.

     8.6 Publicity. Subject to applicable Law, including the requirements of the
Exchange Act, each of the parties agree that, from and after the date hereof
through the earlier of the termination of this Agreement and January 1, 2005, no
public release or announcement concerning this Agreement, the Related Agreements
or the transactions contemplated hereby or thereby shall be issued without the
joint consent with the other parties, such consent not to be unreasonably
withheld or delayed, and, in connection therewith, the issuing party shall
provide each other party with a reasonable opportunity to review such proposed
release prior to publication thereof. Notwithstanding the foregoing, if any
party is required to disclose the terms of this Agreement or any Related
Agreement pursuant to the Securities Act or the Exchange Act, it shall use its
commercially reasonable efforts to avoid any such disclosure and shall, whenever
reasonably practicable, consult with the other party concerning the timing and
content of such disclosure before the same is made.

     8.7 Preservation of Business. From and after the date hereof until the
Closing Date, except as set forth on Schedule 8.7 or with the prior written
consent of Metaldyne (which consent shall not be unreasonably withheld or
delayed), Seller shall: (a) operate the Business only in the ordinary course of
business and consistent with past practice; (b) preserve intact the present
business organization and personnel of the Business and maintain the Transferred
Assets in their present repair, working order and operating condition, subject
only to ordinary wear and tear; (c) preserve the goodwill and business
relationships of the Business with customers, suppliers, independent
contractors, employees and other Persons material to the operation of the
Business; and (d) use commercially reasonable efforts to preserve in full force
and effect its permits and licenses included in the Transferred Assets.

     Without limiting the generality of the foregoing, from the date hereof
until the Closing Date, Seller shall not, without the prior written consent of
Metaldyne (which consent shall not be unreasonably withheld or delayed):

          (i) sell, transfer, convey, assign or otherwise dispose of any of the
     Transferred Assets or assets that, if not sold, transferred, conveyed,
     assigned or otherwise disposed of

<PAGE>
                                      -47-

     prior to the Closing, would constitute Transferred Assets, except sales of
     Inventory in the ordinary course of business and consistent with past
     practice;

          (ii) make any material changes in its accounting or tax systems,
     policies, principles or practices of the Business, except as required by
     applicable Law, GAAP or applicable to all or a substantial portion of
     Seller's facilities or operations;

          (iii) acquire or lease any assets of the Business outside the ordinary
     course of business or any assets which are material to the Business or make
     any Transferred Assets subject to any Lien, except for Permitted Liens;

          (iv) authorize or make any capital expenditures in connection with the
     Business which individually or in the aggregate are in excess of $1,000,000
     other than capital expenditures contemplated by Schedule 8.7;

          (v) terminate or modify, amend or otherwise alter or change any of the
     material terms or provisions of any Assumed Contract the terms of which
     provide for, individually or in the aggregate, amounts to be paid either to
     or by Seller or the Business in excess of $50,000; or

          (vi) agree to any repricing, giveback or discount pursuant to or in
     connection with any Assumed Contract which is not provided for by the terms
     of such Assumed Contract or resulting in payments in excess of $25,000.

     For the avoidance of doubt, notwithstanding anything to the contrary in
this Section 8.7, Seller shall have the right to, prior to the Closing, (i) take
any action to the extent such action is contemplated by the Agreement or any of
the Related Agreements, (ii) take any action to the extent undertaken at the
written request of Metaldyne, (iii) take or omit to take any action which it is
required to take or omit to take by applicable Law or any Governmental Authority
and (iv) take all such actions as are reasonably necessary to cause the
Agreement or the Related Agreements to be performed and the Transactions to be
consummated.

     8.8 Tax Matters. After the Closing, the Company shall file all Tax Returns
required to be filed by it as soon as practicable after the end of each Tax
year. The Company shall supply all holders of Units a copy of the Company's
federal and state income Tax Returns (in addition to any information returns
required to be provided). After the Closing Date, each of the parties shall (and
shall cause their respective Affiliates to) (i) assist in preparing the
Company's Tax Returns and (ii) cooperate fully in preparing for any audits of,
or disputes with any tax authority regarding, any Tax Return of the Company.
Seller shall not dispose of any Tax work papers, books or records relating to
the operation of the Business by the Company during the six (6) year period
following the Closing Date, and thereafter, if the Company provides notice to
Seller within six (6) months of the end of such six (6) year period, Seller
shall give the Company reasonable written notice before disposing of any such
items.

<PAGE>
                                      -48-

     8.9 Maintenance of Insurance. Seller shall continue to cover the Business
and the Transferred Assets under its then applicable insurance or self-insurance
program in effect from time to time through the JV Termination Date.

     8.10 Title Insurance. Seller shall arrange for the Company to receive a
Title Policy at the sole cost and expense of Seller, except that Metaldyne shall
pay any and all costs relating to any endorsements that it may request. Seller
shall deliver to the Title Company any affidavits or indemnities required by the
Title Company in connection with the delivery of the Title Policy.

     8.11 Survey. At or prior to the Closing, Seller shall deliver the Interim
Survey to Metaldyne and the Title Company, and within thirty (30) days of the
Closing, Seller shall deliver the Survey to Metaldyne and the Title Company. All
costs and expenses of the Interim Survey and the Survey shall be borne to the
extent of the first $50,000 by Seller and any excess by Metaldyne.

     8.12 Financial Statements. It is hereby acknowledged that Metaldyne has
submitted a letter to the SEC dated November 4, 2002 in which it is seeking
relief with respect to the requirements of Regulation S-X which may be
applicable to Metaldyne as a result of the transactions contemplated hereby (the
"Relief Letter"). Metaldyne agrees to use its reasonable best efforts to follow
up with the SEC to pursue the relief sought by the Relief Letter. To the extent
that any of the following requirements would be reduced or otherwise modified as
a result of the SEC's response to the Relief Letter or otherwise, Metaldyne
shall promptly (but in no event more than five (5) Business Days following
receipt of such response or other information) inform Seller and provide Seller
with the correspondence from the SEC to that effect and the following shall be
deemed modified to the extent thereof. If the SEC denies or fails to
definitively respond to the Relief Letter on or prior to the Closing Date,
following the Closing Date, Seller shall prepare and deliver to Metaldyne the
following financial statements (which shall be prepared in accordance with GAAP)
and, in the case of annual financial statements, shall cause KPMG LLP, its
independent auditors ("KPMG"), to audit and, in the case of unaudited quarterly
financial statements, to cause KPMG to conduct a SAS 71 review typical for a
public reporting entity: (1) to permit Metaldyne to make any required filings on
Form 8-K under the Exchange Act following the Closing Date, as soon as
reasonably possible but in no event later than 55 days after the Closing Date
(which time period shall be extended to 65 days in the event that the request in
the Relief Letter or the equivalent thereof is not granted and it would not
prejudice Metaldyne's ability to comply with its reporting obligations under the
Exchange Act), (x) audited financial statements (comprised of consolidated
balance sheets, statements of operations and cash flows and statements of
changes in shareholder's equity) of the Business for the two years ended
December 31, 2002 (and the statements of operations and cash flows and
statements of changes in shareholder's equity for the year ended December 31,
2000 if necessary in the reasonable opinion of Metaldyne's auditors to comply
with the requirements of Form 8-K based upon financial information supplied by
Seller to Metaldyne) and (y) with respect to quarterly periods occurring after
December 31, 2002 but prior to the Closing Date (if any), unaudited financial
statements of the Business (comprised of consolidated balance sheets, statements
of operations and cash flows and statements of changes in shareholder's equity),
together with the comparable quarterly period(s) of the immediately preceding
year; and (2) if Metaldyne provides to Seller a written notice (a "Financing
Notice") of an intention to undertake a securities offering (which notice shall
(1) state that Metaldyne intends to pursue a public or private securities
offering and (2) specifically list the financial information required in
connection

<PAGE>
                                      -49-

therewith), to permit Metaldyne to comply with the requirements of the
Securities Act, as promptly as reasonably possible following receipt of the
Financing Notice, such additional historical financial information as would be
required, in the reasonable opinion of Metaldyne's independent auditors, for
inclusion in a registration statement filed under the Securities Act in
accordance with the requirements of Regulation S-X under the Securities Act (all
such financial statements, together with the Financial Statements, the "Complete
Financial Statements"). In addition to the foregoing, Seller shall, and shall
cause KPMG to, cooperate with Metaldyne's independent auditors in the
preparation of such pro forma financial information as may be required to be
included in a filing on Form 8-K of Metaldyne or as Metaldyne may be required to
include in connection with any securities offering pursuant to the requirements
of Regulation S-X under the Securities Act or may be advised by the lead
underwriter or placement agent in any securities offering is highly advisable
for the securities offering. Metaldyne shall promptly reimburse Seller for all
out-of-pocket costs and expenses incurred in connection with KPMG LLP's audit
and review of the Complete Financial Statements (other than the Financial
Statements, which are not being prepared for this purpose) and in connection
with any securities offering. Each of the Company and Metaldyne acknowledge that
(a) the Complete Financial Statements are being prepared for the purpose of
complying with the rules and regulations of the SEC and (b) the financial
position of the Business as reflected in the Complete Financial Statements may
differ from that which would have resulted had the Business operated
autonomously or as an entity independent of Seller. In the event that the Seller
is unable to comply with the provisions of this Section notwithstanding the good
faith efforts of Seller, there shall be no liability on the part of Seller for a
breach of this Section and the only consequences will be those following from
the failure to provide the information under Article 15 of the Operating
Agreement.

     8.13 Further Assurances. From time to time, without further consideration,
each of the parties hereto will execute and deliver such documents as such other
party may reasonably request in order more effectively to consummate the
Transactions.

     8.14 UAW Agreement. (a) In its negotiations with the International UAW as
to a new collective bargaining agreement to become effective in 2003, Seller
shall use its commercially reasonable efforts (which in no event will include
agreeing to arrangements that, in Seller's reasonable judgment, would materially
and adversely affect any of Seller's facilities other than the Facility) to
negotiate the sale of the Facility and to obtain the Facility's complete
withdrawal from the DaimlerChrysler/UAW National Agreement including all side
letters, and including, but not limited to, provisions regarding labor
protection (including, but not limited to, the so-called the so-called ESL, BEL,
SWEL and any and all other job security and job security provisions),
outsourcing restrictions, job relocation provisions, mandatory classification
and training provisions, and all other terms and conditions which would in any
way limit the ability of Metaldyne and/or the Company to operate the Facility in
the manner contemplated by the collective bargaining agreement between Metaldyne
and/or the Company and UAW Local 371 following its possible exercise of the
Metaldyne Call Option under the Operating Agreement.

     (b) At the request of Metaldyne, Seller shall provide Metaldyne with
regular updates on negotiations with the International UAW to the extent the
negotiations impact the sale and the employee programs negotiated as part of the
sale of the Facility, as well as copies of all relevant provisions of any
tentative or final agreements reached.

<PAGE>
                                      -50-

     (c) Seller shall use its commercially reasonable efforts to assist
Metaldyne in obtaining all Local Qualified Collective Bargaining Agreements (as
defined in the Operating Agreement) and shall cause the Company to execute such
Local Qualified Collective Bargaining Agreements upon request by Metaldyne.

     8.15 Demolition. If Metaldyne so requests before the date that is six (6)
months following the later of the JV Termination Date or the date on which there
is no additional Product being made for Seller under the Supply Agreement in the
North Building or the Forge Building, Seller shall complete, in accordance with
all applicable Laws, the demolition of the North Building and the Forge Building
within eighteen (18) months after such request; provided that (i) Seller shall
not be obligated to spend more than $6,000,000 in the aggregate in Demolition
Costs and (ii) Seller shall control all actions relating to such demolition. The
parties acknowledge and agree that their mutual intent is for such demolition to
be completed on or prior to December 31, 2006. Seller shall (A) furnish to
Metaldyne in advance of commencing such demolition a written demolition plan and
provide Metaldyne with a reasonable opportunity to review and approve (which
approval shall not be unreasonably withheld or delayed) such plan (B) demolish
the North Building and the Forge Building in accordance with such approved plan
and (C) keep Metaldyne reasonably informed as to the progress of the same. For
purposes of this Section 8.15, "Demolition Costs" shall mean only Seller's
out-of-pocket costs directly related to the physical demolition of the North
Building and the Forge Building and, for the avoidance of doubt, shall not
include any other Liabilities that may arise out of or result from such
demolition, such as Liabilities under Environmental Laws or Environmental Claims
or the costs of any Remedial Action.

     8.16 Baseline Environmental Remediation. (a) Within thirty (30) days after
the Closing Date, Metaldyne shall engage a qualified environmental consultant
reasonably acceptable to Seller (the "Consultant") to conduct a comprehensive
Phase II Environmental Site Assessment ("Phase II ESA") of the Real Property
(including, without limitation, the Facility), or such portion thereof and any
other Transferred Assets as Metaldyne shall deem appropriate. The Phase II ESA
shall be completed by [*]. The purpose and intent of the Phase II ESA shall be
to identify Environmental Conditions at the Real Property (including, without
limitation, the Facility) and such other Transferred Assets. Seller shall
promptly provide the Consultant with all reasonable and necessary access to the
Real Property (including, without limitation, the Facility) and such other
Transferred Assets and to perform and complete its Phase II ESA. Within ten (10)
days of receiving the final Phase II ESA, Metaldyne shall provide copies of same
to Seller. [*] Metaldyne and Seller shall share equally the complete costs for
the preparation of the Phase II ESA, including all fees and expenses of the
Consultant. In selecting the Consultant to perform the Phase II ESA, Metaldyne
shall ensure that the terms of engagement include a provision that Seller may
rely upon the contents of the final Phase II ESA. The provisions of this Section
8.16 shall not in any way bar or preclude a claim by Metaldyne for
indemnification under the provisions of Section 13.9 for any Loss relating to,
arising from or in connection with an Environmental Condition not identified in
the Phase II ESA.

     (b) Seller shall provide Metaldyne with copies of all reports, notices and
correspondence that Seller or any of its Affiliates delivers to or receives from
any Governmental Authority in connection with any Environmental Conditions or
current or planned Remedial Action with respect to the Real Property (including,
without limitation, the Facility) and any other Transferred Assets.

<PAGE>
                                      -51-

Seller also shall copy Metaldyne on Environmental Reports regarding any current
or planned Remedial Action by Seller or any of its Affiliates with respect to
the Real Property. Seller agrees to comply with all applicable Environmental
Laws in connection with any Remedial Action with respect to the Real Property
(including, without limitation, the Facility) and any other Transferred Assets.

     (c) Each of Seller and Metaldyne agree to promptly notify the other in
writing upon being served with any summons, citation, subpoena, complaint,
indictment, information, notice of violation or other document relating to any
Environmental Conditions or Remedial Action with respect to the Real Property
(including, without limitation, the Facility) and any other Transferred Assets,
whether civil, criminal, or investigative; provided, however, that the failure
of a party to give such notice shall not adversely affect the party's rights
under this Agreement except to the extent that the party who is not promptly so
notified shall have been materially prejudiced as a result of such failure.

     8.17 Intellectual Property Licenses; Discussions Regarding Ownership of
Certain Intellectual Property. (a) The Company hereby grants to Seller and its
Affiliates a non-exclusive worldwide, paid-up, irrevocable and perpetual license
to the Transferred Intellectual Property to practice the same in connection with
the products of Seller or its Affiliates, including, without limitation, (i) to
make, have made, use, offer to sell, sell and import any products, and (ii) to
reproduce, distribute with their products, display publicly, perform publicly,
and prepare derivative works based upon, any copyrighted work.

     (b) Seller hereby grants to the Company a non-exclusive, worldwide,
paid-up, royalty-free, irrevocable and perpetual license (assignable to any
successor of the Company), with the right to sublicense, to use all Intellectual
Property presently owned by Seller in the designs of the Ball Joints and in the
Current Processes not transferred to the Company under Section 2.1 to make, have
made, import, use, offer to sell and sell any product to any Person. To the
extent Seller can sublicense the Company under any Intellectual Property
presently licensed from third parties in the designs of the Ball Joints or in
the Current Processes not transferred to the Company under Section 2.1 without
consent of or payment to such third parties, then Seller hereby grants to the
Company the sublicense that Seller is permitted to grant to the Company. Seller
also grants to the Company a non-exclusive, worldwide, paid-up, royalty-free
license to use all Intellectual Property presently owned by Seller in the
designs of all Current Products and Launch Products, other than the Ball Joints,
to make, have made, use, offer to sell and sell products only to Seller or to
Seller's Affiliates. Seller will also grant the Company that sublicense(s) under
the Settlement Agreement between Seller and the Lemelson Medical, Education and
Research Foundation Limited Partnership dated May 22, 1998 that it is permitted
to grant the Company under that Settlement Agreement.

     (c) All right, title and interest in and to all Intellectual Property
developed by the Company after the Closing Date, including, without limitation,
any improvement or modification on any Current Product or Current Process, shall
be the sole and exclusive property of the Company and Seller shall gain no
right, title or interest in such Intellectual Property by virtue of this
Agreement or any of the Related Agreements (other than as provided in a written
agreement between the Company and Seller, such as in a purchase order of Seller
under which the Company supplies products to Seller) or Seller's ownership of
any Units. In the event of the JV Termination pursuant to the Met-

<PAGE>
                                      -52-

aldyne Put Option Closing or the DaimlerChrysler Call Option Closing,
concurrently with such closing, the Company shall grant to Metaldyne a
non-exclusive, worldwide, paid-up, royalty free, assignable, irrevocable and
perpetual license, with the right to sublicense, to use all Intellectual
Property developed by the Company from the Closing Date through the JV
Termination Date, including, without limitation, any improvement or modification
in any Current Product or Current Process.

     (d) During the period from the date of this Agreement until the Metaldyne
Call Option Closing under the Operating Agreement:

          (i) If the Company licenses any Intellectual Property from any third
     party, the Company will ensure that the license (i) will survive the
     exercise of any put or call option under the Operating Agreement and (ii)
     is transferrable to any successor of the Company, including any Unitholder
     (as defined in the Operating Agreement).

          (ii) To the extent that Metaldyne or an Affiliate of Metaldyne
     performs any design or development work pertaining to any product that the
     Company produces or plans to produce, Metaldyne agrees to and hereby does
     grant the Company a non-exclusive, paid-up, royalty free, irrevocable,
     worldwide license, with the right to sublicense Seller and Seller's
     Affiliates as to any Seller Related Intellectual Property, to use any
     Intellectual Property in such design or development work in connection with
     the manufacture and sale of products, including, without limitation, to
     make, use, sell, offer to sell and import any product and any improvement
     thereof, and to reproduce, distribute in connection with the Company's
     products, display publicly, perform publicly and prepare derivative works
     based on any copyrighted work. Metaldyne or its Affiliates, as applicable,
     will also provide to the Company all information and documentation
     reasonably necessary for the Company to practice the Intellectual Property
     licensed under this Section 8.17(d)(ii) to the fullest extent under the
     license and to provide the same to Seller and its Affiliates as to all
     Seller Related Intellectual Property.

          (iii) To the extent that Metaldyne allows any of its Intellectual
     Property or Intellectual Property of any of its Affiliates to be
     incorporated into or used to make any product made or planned to be made by
     the Company, then Metaldyne grants the Company the license provided by
     Section 8.17(d)(ii).

     (e) During the period from Closing until the exercise of the Metaldyne Call
Option under the Operating Agreement, Seller agrees to negotiate in good faith
with the Company transferring ownership of any Intellectual Property in the
Current Processes that was not transferred to the Company under Section 2.1 and
any Intellectual Property in the Ball Joints. In the event that Seller agrees
(which decision will be at Seller's sole discretion) to transfer any such
Intellectual Property, it will be deemed included in the Transferred
Intellectual Property licensed to Seller and its Affiliates under Section
8.17(a).

     8.18 Notification of Certain Matters. From time to time prior to the
Closing Date, and as soon as reasonably practicable after becoming aware of such
a matter, Seller and Metaldyne, as applicable, shall promptly notify the other
of (i) any matter that, if known, existing or occurring as of

<PAGE>
                                      -53-

the date of this Agreement, would have been required to be set forth or
described on any schedule to this Agreement for which it has primary
responsibility, or that is necessary to complete or correct any information in
any of its representations or warranties contained in this Agreement, (ii) the
existence or non-existence of any circumstance or condition, or the occurrence
or non-occurrence of any event, that would be reasonably likely to cause any
condition to the obligations of such party to consummate the Transactions not to
be satisfied or (iii) the failure of such party to perform, comply with or
satisfy any covenant, agreement or conditions to be performed, complied with or
satisfied by it pursuant to this Agreement that would reasonably be likely to
result in any condition to the obligations of such party to consummate the
Transactions not to be satisfied.

     8.19 Cooperation on Subsequent Litigation. With respect to any action,
suit, claim, notice of potential claim, request for accommodation, arbitration,
regulatory proceeding or other litigation, proceedings or investigation by a
Government Authority affecting the Business or any of the Transferred Assets
that is initiated after the Closing Date (whether pending or threatened and
whether or not an indemnifiable claim pursuant to Article XIII), each party
hereto shall use its commercially reasonable efforts to cooperate with any other
party hereto in the defense or prosecution thereof, including, without
limitation, the sharing of any records an information reasonably relevant to
such claim and making a reasonable number of employees available on a mutually
convenient basis to provide additional information and explanation of any
material relevant to such claim.

     8.20 Board Approval. Promptly following the date hereof, but in no event
later than ten (10) Business Days hereafter, each of Seller and Metaldyne shall
use its reasonable best efforts and take such further actions as may be required
to obtain and secure the approval of its board of directors of this Agreement,
the Related Agreements and the transactions contemplated hereby and thereby.

     8.21 Finalization of Exhibits. Each of Seller and Metaldyne shall use its
reasonable best efforts to, as promptly as practicable after the date hereof,
(a) cooperate in drafting and finalizing forms of the Indenture, the Series A-1
Preferred Stock Investor Rights Agreement and the Senior Subordinated Notes
Registration Rights Agreements (each as defined in the Operating Agreement),
having substantially the terms set forth in the term sheets for each such
document attached to the Operating Agreement as of the date hereof and (b)
following finalization of such forms, take such actions as are necessary to
cause the Operating Agreement to be amended to replace the applicable term
sheets attached thereto with the applicable form.

                                   ARTICLE IX

                CONDITIONS PRECEDENT TO OBLIGATIONS OF EACH PARTY

     The obligations of each of the parties hereto to consummate the
Transactions are subject to the satisfaction, or wavier by each of the parties
hereto (to the extent permitted by applicable Law), of the following conditions:

<PAGE>
                                      -54-

     9.1 Governmental Approvals. Each of the parties hereto and any other Person
required in connection with the Transactions to make or obtain any Governmental
Approvals under applicable Law shall have made or obtained such Governmental
Approvals.

     9.2 No Adverse Proceedings. No applicable Law, temporary restraining order,
preliminary or permanent injunction or other judgment or order issued by any
court of competent jurisdiction or other Governmental Authority shall be in
effect preventing the consummation of the transactions contemplated by this
Agreement or any of the Related Agreements in any material respect or imposing
any material limitation on the ability of the Company to receive or own the
Transferred Assets (including, without limitation, the Facility) or to operate
the Business. No action, suit or proceeding shall have been instituted, or shall
be pending or threatened, by a Governmental Authority seeking to restrain or
prohibit the consummation of the transactions contemplated by this Agreement or
any of the Related Agreements in any material respect or to impose any material
limitation on the ability of the Company to receive or own the Transferred
Assets (including, without limitation, the Facility) or to operate the Business.

                                    ARTICLE X

                     CONDITIONS PRECEDENT TO OBLIGATIONS OF
                             THE COMPANY AND SELLER

     The obligations of the Company and Seller to consummate the Transactions
are subject to the satisfaction, or waiver by Seller (to the extent permitted by
applicable Law), of the following conditions:

     10.1 Accuracy of Representations and Warranties. The representations and
warranties of Metaldyne contained in Article VII shall be accurate and complete
when made and as of the Closing Date (except to the extent expressly made as of
an earlier date, in which case as of such date) except where the failure of such
representations and warranties to be so accurate and complete (without giving
effect to any limitation as to "materiality" or "Metaldyne Material Adverse
Effect" set forth therein) has not had and would not reasonably be expected to
have, individually or in the aggregate, a Metaldyne Material Adverse Effect.

     10.2 Compliance with Agreements and Covenants. Metaldyne shall have
performed and complied in all material respects with all of its covenants,
obligations and agreements contained in this Agreement to be performed and
complied with by it on or prior to the Closing Date.

     10.3 Certificates. Metaldyne shall have furnished to Seller a certificate,
dated the Closing Date, certifying as to the matters set forth in Sections 10.1
and 10.2.

     10.4 Requisite Consents. Metaldyne shall have obtained each of the consents
listed on Schedule 10.4.

<PAGE>
                                      -55-

     10.5 No Metaldyne Material Adverse Change. No Metaldyne Material Adverse
Change shall have occurred and be continuing, and no event shall have occurred
which would reasonably be expected to have, individually or in the aggregate, a
Metaldyne Material Adverse Effect.

     10.6 Board Approval. The board of directors of Seller shall have approved
this Agreement, the Related Agreements and the transactions contemplated hereby
and thereby.

                                   ARTICLE XI

                CONDITIONS PRECEDENT TO OBLIGATIONS OF METALDYNE

     The obligations of Metaldyne to consummate the Transactions are subject to
the satisfaction, or waiver by Metaldyne (to the extent permitted by applicable
Law), of the following conditions:

     11.1 Accuracy of Representations and Warranties. (a) The representations
and warranties of Seller contained in Article V shall be accurate and complete
when made and as of the Closing Date (except to the extent expressly made as of
an earlier date, in which case as of such date), except where the failure of
such representations and warranties to be so accurate and complete (without
giving effect to any limitation as to "materiality" or "Business Material
Adverse Effect" set forth therein) has not had and would not reasonably be
expected to have, individually or in the aggregate, a Business Material Adverse
Effect.

     (b) The representations and warranties of Seller contained in Article VI
shall be accurate and complete when made and as of the Closing Date (except to
the extent expressly made as of an earlier date, in which case as of such date),
except where the failure of such representations and warranties to be so
accurate and complete (without giving effect to any limitation as to
"materiality" or "Company Material Adverse Effect" set forth therein) has not
had and would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.

     11.2 Compliance with Agreements and Covenants. Each of the Company and
Seller shall have performed and complied in all material respects with all of
its covenants, obligations and agreements contained in this Agreement to be
performed and complied with by it on or prior to the Closing Date.

     11.3 Certificates. Seller shall have furnished to Metaldyne a certificate,
dated the Closing Date, certifying as to the matters set forth in Sections 11.1
and 11.2, and the Company shall have furnished to Metaldyne a certificate, dated
the Closing Date, certifying as to the matters set forth in Section 11.2.

     11.4 Contribution. The Contribution shall have occurred.

     11.5 Requisite Consents. Seller shall have obtained each of the consents
listed on Schedule 11.5.

<PAGE>
                                      -56-

     11.6 No Business Material Adverse Change. No Business Material Adverse
Change shall have occurred and be continuing, and no event shall have occurred
which would reasonably be expected to have, individually or in the aggregate, a
Business Material Adverse Effect or a Company Material Adverse Effect.

     11.7 Board Approval. The board of directors of Metaldyne shall have
approved this Agreement, the Related Agreements and the transactions
contemplated hereby and thereby.

                                   ARTICLE XII

                                   TERMINATION

     12.1 Termination. Anything in this Agreement to the contrary
notwithstanding, this Agreement may be terminated, and the transactions
contemplated hereby may be abandoned, in any of the following ways, at any time,
on or prior to the Closing Date:

          (a) by mutual written consent of each party hereto;

          (b) by any party, if:

               (i) the Closing has not occurred on or before February 28, 2003
          (the "End Date"), provided that the right to terminate this Agreement
          pursuant to this Section 12.1(b)(i) shall not be available to any
          party whose breach of any provision of this Agreement results in the
          failure of the Closing to occur by that time; or

               (ii) there shall be any applicable Law or regulation that makes
          consummation of the Transactions illegal or otherwise prohibited or
          any judgment, injunction, order or decree of any Governmental
          Authority having competent jurisdiction enjoining any party from
          consummating the Transactions is entered and such judgment,
          injunction, order or decree shall have become final and nonappealable;

          (c) by Seller, if there shall have been (i) a material breach of (A)
     any material covenant of Metaldyne or (B) any other covenant of Metaldyne,
     which breach would be reasonably expected to result, individually or in the
     aggregate, in the prevention or material delay of the transactions
     contemplated by this Agreement or have a Metaldyne Material Adverse Effect,
     or (ii) a breach of a representation or warranty of Metaldyne hereunder
     that would give rise to the failure of a condition set forth in Section
     10.1, and such breach is incapable of being remedied by the End Date or
     shall not have been remedied within twenty (20) Business Days after receipt
     by Metaldyne of a written notice from Seller specifying the breach and
     requesting that such breach be remedied; or

          (d) by Metaldyne, if there shall have been (i) a material breach of
     (A) any material covenant of Seller or (B) any other covenant of Seller,
     which breach would be reasonably expected to result, individually or in the
     aggregate, in the prevention or material delay of the transactions
     contemplated by this Agreement or have a Business Material Adverse Effect
     or a

<PAGE>
                                      -57-

     Company Material Adverse Effect, or (ii) a breach of a representation or
     warranty of the Company or Seller hereunder that would give rise to the
     failure of a condition set forth in Section 11.1, and such breach is
     incapable of being remedied by the End Date or shall not have been remedied
     within twenty (20) Business Days after receipt by Seller of a written
     notice from Metaldyne specifying the breach and requesting that such breach
     be remedied.

     12.2 Effect of Termination. If this Agreement is terminated and the
transactions contemplated hereby are abandoned pursuant to Section 12.1, this
Agreement shall become null and void and of no further force and effect and all
obligations of the parties hereunder shall terminate, except for the obligations
set forth in Sections 8.6, 14.1, 14.8, 14.9 and this Section 12.2, which shall
survive the termination of this Agreement, and except that if this Agreement is
terminated by any of the parties hereto because one or more of the conditions to
such party's obligations hereunder are not satisfied as a result of any other
party's failure to comply with any provision of this Agreement, such terminating
party's right to pursue all legal and equitable remedies for breach of contract
and damages shall survive such termination unimpaired.

                                  ARTICLE XIII

                                 INDEMNIFICATION

     13.1 Survival. The representations and warranties of the parties hereto
contained herein shall survive the Closing and remain in full force and effect
until the date that is eighteen (18) months following the JV Termination Date;
provided, however, that (i) the representations and warranties set forth in
Sections 5.1, 5.2, 5.12, 6.1, 6.2, 7.1 and 7.2 shall survive the Closing and
remain in full force and effect until the sixth anniversary of the JV
Termination Date, (ii) the representations and warranties set forth in Section
5.19 shall survive the Closing and remain in full force and effect until the
expiration of the applicable statute of limitation with respect to the matters
covered thereby and (iii) the representations and warranties set forth in
Sections 5.6, 6.4 and 6.5 shall survive the Closing and remain in full force and
effect indefinitely.

     13.2 Indemnification by Seller. Except with respect to any claim or
Liability arising out of or resulting from Environmental Law, Environmental
Conditions or Environmental Claims or any matters addressed by Section 2.5(b) or
Section 5.21, for which Section 13.9 shall provide the sole and exclusive remedy
of the Company and Metaldyne, and subject to Sections 13.4, 13.5, 13.6, 13.7,
13.8 and 13.10, Seller agrees to indemnify each of the Company Indemnified
Parties and Metaldyne Indemnified Parties against, and agrees to hold each of
them harmless from, any and all Losses incurred or suffered by them to the
extent relating to, arising out of, or resulting from, any of the following:

          (a) any breach by Seller of any of the representations or warranties
     of Seller contained in Articles V and VI of this Agreement, in each case
     when read without giving effect to any qualifier as to "materiality" or
     "Business Material Adverse Effect" or "Company Material Adverse Effect";

          (b) any breach by Seller of any of its covenants contained in this
     Agreement;

<PAGE>
                                      -58-

          (c) any of the Excluded Liabilities and any third party claims with
     respect thereto (other than Excluded Liabilities described in Section
     2.5(b), which are addressed in Section 13.9);

          (d) any third party claim for infringement of Intellectual Property
     arising from or related to (i) Seller's use of any process at the Facility
     or use, manufacture, offering for sale, sale or importing of any product in
     connection with the Business prior to the Closing; (ii) the Company's
     manufacturing, using, selling, importing or offering for sale any Product
     for sale only to Seller or an Affiliate of Seller at the time of sale
     (directly or indirectly through suppliers to Seller or Seller's Affiliates)
     to the extent that the claim of infringement is attributable to a design or
     design change created by Seller or to the use of a Current Process except
     to the extent the infringement is attributable to a change in such Current
     Process made after the Closing Date which was not created by Seller;

          (e) [*];

          (f) any third party claim for product liability or product warranty
     with respect to products manufactured or produced at the Facility prior to
     the JV Termination Date or arising from or related to product designs
     established by Seller before the JV Termination Date;

          (g) any costs, expenses, Taxes or other liabilities of Seller arising
     out of or in connection with Taxes arising out of the Business incurred
     through the Closing Date or otherwise resulting from the Transactions;

          (h) any employees of Seller engaged in the Business, including,
     without limitation, any severance or workers' compensation liability and
     any charge, complaint, investigation or proceeding by or before the
     National Labor Relations Board, the Department of Labor, the Equal
     Employment Opportunity Commission, the Occupational Health and Safety
     Administration or any comparable federal, state or local agency by or on
     behalf of any such employees or class of employees or by or before any
     Governmental Authority related to a purported violation of any applicable
     employment laws;

          (i) any employee benefit plan (within the meaning of Section 3(3) of
     ERISA) or other compensation plan or arrangement maintained or contributed
     to by Seller or any of its ERISA Affiliates (other than the Company); and

          (j) any failure to comply with applicable bulk sales laws.

     To the extent that (A) Seller fully satisfies any indemnification
obligation pursuant to Article XVI of the Operating Agreement, it shall have no
further obligation to any Company Indemnified Party or Metaldyne Indemnified
Party for such Loss and (B) Seller indemnifies any Company Indemnified Party or
Metaldyne Indemnified Party for any Loss pursuant to this Section 13.2, it shall
have no obligation to indemnify any other Company Indemnified Party or Metaldyne
Indemnified Party for the same Loss.

<PAGE>
                                      -59-

     13.3 Indemnification by Metaldyne. Subject to Sections 13.4, 13.5, 13.6,
13.7, 13.8 and 13.10, Metaldyne agrees to indemnify each of the DaimlerChrysler
Indemnified Parties against, and agrees to hold each of them harmless from, any
and all Losses incurred or suffered by it to the extent relating to, or arising
out of, or resulting from, (a) any breach by Metaldyne of any of the
representations, warranties or covenants of Metaldyne contained in Article VII
of this Agreement, in each case when read without giving effect to any qualifier
as to "materiality" or "Metaldyne Material Adverse Effect," (b) any breach by
Metaldyne of any of its covenants contained in this Agreement; (c) in the event
that Metaldyne exercises the Metaldyne Call Option and purchases from Seller the
remaining Class A Units and 100% of the Class B Units pursuant to the Operating
Agreement, from and after the JV Termination Date, the Assumed Liabilities and
any breach by the Company of any of its covenants contained in this Agreement;
(d) the use by Metaldyne or any third party of any of the financial information
provided by Seller pursuant to Section 8.12 (except to the extent any such
Losses result from fraud on the part of Seller); and (e) any product liability,
warranty or intellectual property infringement claim with respect to any product
sold after the JV Termination Date by the Company to any third party (other than
to a supplier of Seller or its Affiliates who supplies such product to Seller or
its Affiliates).

     13.4 Limitations on Liability. (a) Notwithstanding the provisions of
Section 13.2(a) or 13.3(a): (i) no Indemnified Person shall be entitled to make
a claim against an Indemnifying Person under Section 13.2(a) or 13.3(a) unless
such claim is made within any applicable survival period set forth in Section
13.1; (ii) the maximum amount of indemnification which can be required of any
Indemnifying Person under Section 13.2(a) or 13.3(a) shall be $10,000,000 (the
"Cap"); and (iii) no Indemnifying Person shall be required to indemnify, defend
or hold harmless any Indemnified Person from and against any Losses under
Section 13.2(a) or 13.3(a) unless and until the amount of all Losses under
Section 13.2(a) or 13.3(a), as the case may be, exceeds $500,000 in the
aggregate (the "Threshold Amount"), in which event the Indemnifying Person shall
be obligated to indemnify the Indemnified Person to the extent of all Losses
relating to such breach to the extent such Losses exceed the Threshold Amount,
subject to the Cap. Notwithstanding the foregoing, the Cap and the Threshold
Amount shall not apply to Losses relating to a breach of any representation or
warranty contained in Section 5.1, 5.2, 6.1, 6.2, 6.4, 7.1, 7.2 or 7.5. For the
avoidance of doubt, the Cap and the Threshold Amount shall not apply to Seller's
indemnification obligations under Sections 13.2(b) through (j) or 13.9 or
Metaldyne's indemnification obligations under Sections 13.3(b) through (e).

     (b) Notwithstanding anything to the contrary in this Agreement, the parties
acknowledge and agree that the only representations and warranties of Seller
with respect to (i) Taxes are set forth in Section 5.19, (ii) Intellectual
Property are set forth in Section 5.12 and (iii) the Environment are set forth
in Section 5.21, and that no other representations and warranties of the parties
contained in this Agreement shall give rise to any liability with respect to
such matters.

     (c) The amount of any Losses for which indemnification is provided under
this Article XIII shall be net of any amounts actually recovered by the
Indemnified Person under insurance policies of the Indemnified Person (net, in
each case, of all deductibles and costs, charges and expenses of the Indemnified
Person in connection with such recovery). If any Indemnified Person is at any
time entitled to recover under any third-party policy of insurance (excluding
any self-insurance that is not reinsured with a third party), in respect of any
Losses for which indemnification is sought

<PAGE>
                                      -60-

under this Article XIII, the Indemnified Person shall, at the request of the
Indemnifying Person, use its commercially reasonable efforts to enforce such
recovery at the expense of and for the benefit of the Indemnifying Person and,
in the event of recovery under such policy, reduce the amount of Losses for
which it is seeking indemnification under this Article XIII by the amount
recovered (net of all deductibles and costs, charges and expenses of the
Indemnified Person in connection with such recovery); provided, however, that
the Indemnified Person shall not be required to renew any insurance policy. If
any Indemnifying Person indemnifies an Indemnified Person for Losses pursuant to
this Article XIII and the Indemnified Person subsequently recovers from a third
Person any sum in respect of any event, change, development, circumstance or
state of facts giving rise to such Losses, the Indemnified Person shall repay to
the Indemnifying Person the lesser of (A) the Losses paid by the Indemnifying
Person to the Indemnified Person and relating to such event, change,
development, circumstance or state of facts and (B) the sum (including any
interest) recovered from such third Person, in either case net of any additional
Taxes directly incurred by the Indemnified Person as a result of its receipt of
such sum.

     (d) The liability of any Indemnifying Person under this Article XIII shall
be subject to reduction in an amount equal to the value of any net Tax benefit
realized by the Indemnified Person (by reason of a Tax deduction, basis
adjustment, shifting of income, credits and/or deductions, or otherwise from one
or more fiscal periods to another resulting, in each case, from any Loss
suffered by the Indemnified Person that forms the basis of the Indemnifying
Person's obligation hereunder), giving effect to any Tax liabilities of the
Indemnified Person arising as a result of any payments made by an Indemnifying
Person with respect to such claim for indemnification (but only to the extent
such payments are not treated, for income tax purposes, as adjustments to the
purchase price of a Transferred Asset).

     (e) To the extent permitted by applicable Law, no Indemnified Person shall
assert any right to recover, and the parties hereby waive any claim against any
Indemnifying Person for, special, exemplary, punitive or consequential damages
arising out of or resulting from any matter for which such party is entitled to
indemnification under this Article XIII, except to the extent such special,
exemplary, punitive or consequential damages are out-of-pocket.

     (f) Following the Closing, absent willful concealment or fraud, claims for
indemnification pursuant to this Article XIII and claims for specific
performance of covenants of the parties under this Agreement shall,
collectively, be the sole and exclusive remedies of the parties for claims and
damages arising out of this Agreement and the Transactions and the parties shall
not be entitled to bring, and hereby irrevocably waive, any other claims, rights
or causes of action against the other parties hereto, whether in equity or in
law. The right of indemnification provided in this Article XIII is solely for
the benefit of the Indemnified Persons referred to therein, and such right will
not be extended, directly or indirectly, to any other Person. For the avoidance
of doubt, this Section 13.4(f) shall not limit a party's ability to bring other
claims after Closing under any Related Agreement.

     (g) No liability shall arise in respect of any breach of any representation
or warranty, covenant or agreement herein to the extent that liability for such
breach occurs (or is increased) directly or indirectly as a result of any
retrospective application of a change in Law, or in accounting

<PAGE>
                                      -61-

policies, procedures or practices, announced, or if not announced in advance of
taking effect, taking effect, after the Closing Date, in each case, which has
retrospective effect.

     13.5 Claims. The provisions of this Section 13.5 shall be subject to
Section 13.6. As soon as is reasonably practicable but no later than thirty (30)
Business Days after becoming aware of a claim for indemnification under this
Agreement, the Indemnified Person shall promptly give notice to the Indemnifying
Person of such claim and the amount the Indemnified Person will be entitled to
receive hereunder from the Indemnifying Person, if known; provided that the
failure of the Indemnified Person to give notice shall not relieve the
Indemnifying Person of its obligations under this Article XIII except to the
extent (if any) that the Indemnifying Person shall have been prejudiced thereby.
The notice to be sent by the Indemnified Person to the Indemnifying Person
pursuant to this Section 13.5 shall include all information concerning the claim
of which the Indemnified Person is aware and which the Indemnified Person,
acting reasonably and in good faith, considers to be required by the
Indemnifying Person in order for the Indemnifying Person to evaluate such claim
and whether such claim gives rise to an indemnification obligation of the
Indemnifying Person hereunder.

     13.6 Notice of Third Party Claims; Assumption of Defense. (a) The
Indemnified Person shall give notice as promptly as is reasonably practicable to
the Indemnifying Person of the assertion of any claim, or the commencement of
any suit, action or proceeding, by any Person not a party hereto in respect of
which indemnity may be sought under this Agreement; provided that the failure of
the Indemnified Person to give notice shall not relieve the Indemnifying Person
of its obligations under this Article XIII except to the extent (if any) that
the Indemnifying Person shall have been prejudiced thereby. The notice to be
sent by the Indemnified Person to the Indemnifying Person pursuant to this
Section 13.6 shall include all information concerning the claim of which the
Indemnified Person is aware and which the Indemnified Person, acting reasonably
and in good faith, considers to be required by the Indemnifying Person in order
for the Indemnifying Person to evaluate such claim and whether such claim gives
rise to an indemnification obligation of the Indemnifying Person hereunder.
Following receipt of a notice from the Indemnified Person pursuant to this
Section 13.6, the Indemnified Person hereunder shall permit the Indemnifying
Person, at the Indemnifying Person's election, to assume, at its own expense,
the defense of any such claim, suit, action or proceeding with counsel selected
by the Indemnifying Person (and not reasonably objected to by the Indemnified
Person). Prior to any assumption of the defense of a claim, suit, action or
proceeding by the Indemnifying Person, the Indemnified Person shall not settle,
compromise or consent to any judgment in respect of any such claim, suit, action
or proceeding without the prior written consent of the Indemnifying Person
(which consent shall not be unreasonably withheld or delayed).

     (b) Following the Indemnifying Person's election to assume the defense of
any claim, action or proceeding pursuant to Section 13.6(a), (i) the Indemnified
Person shall deliver to the Indemnifying Person, in a timely fashion (which
shall be no later than fifteen (15) Business Days after the Indemnified Person's
receipt of notice of such election), copies of all notices and documents
(including court papers) received by the Indemnified Person relating to such
claim, action or proceeding and (ii) the Indemnified Person shall use its
commercially reasonable efforts to cooperate in the defense or prosecution
thereof as reasonably requested by the Indemnifying Person in the context of the
relevant claim, action or proceeding (including the quantum and nature of
damages sought thereunder). Such cooperation shall include the retention and
(upon the Indemnifying Person's re-

<PAGE>
                                      -62-

quest) the provision to the Indemnifying Person of records and information that
are reasonably relevant to such claim, action or proceeding, and making a
reasonable number of employees reasonably available on a mutually convenient
basis, to provide additional information and explanation of any material
provided hereunder; provided, however, that the foregoing is organized in a
manner as shall not unreasonably disrupt the normal operations of the
Indemnified Person's business having regard to the context in which such
cooperation is requested and of the relevant claim, action or proceeding
(including the quantum and nature of the damages sought thereunder).

     (c) The Indemnifying Person shall be liable for the reasonable fees and
expenses of counsel employed by the Indemnified Person for any period during
which the Indemnifying Person has not assumed the defense of a claim, action or
proceeding for which the Indemnified Person is entitled to indemnification
hereunder, except to the extent (if any) that the Indemnifying Person shall have
been prejudiced by the Indemnified Person's failure to give timely notice of
such claim, action or proceeding as required by Section 13.5.

     (d) If the Indemnifying Person assumes the defense of any claim, action or
proceeding pursuant to Section 13.6(a), the Indemnified Person shall have the
right (but not the duty) to participate in such defense and to employ counsel,
at its own expense, separate from the counsel employed by the Indemnifying
Person.

     (e) If the Indemnifying Person does not elect to assume defense of any
claim, action or proceeding pursuant to Section 13.6(a), the Indemnifying Person
may nevertheless participate (but not control) and employ its own counsel (not
reasonably objected to by the Indemnified Person), at its expense, in the
defense of such claim, action or proceeding.

     (f) Each party to this Agreement agrees to use its commercially reasonable
efforts to cooperate and cause its employees to cooperate with and assist the
appropriate Indemnifying Person and Indemnified Person in connection with any
claim, action, proceeding or liability for which indemnity is sought hereunder,
including, but not limited to claims, actions and proceedings with respect to
which an Indemnifying Person has elected to assume or participate in the
defense, including using its commercially reasonable efforts to mitigate or
resolve any such claim, action, proceeding or liability for which indemnity is
sought hereunder; provided, however, that in the event that the Indemnified
Person shall fail to use such commercially reasonable efforts to mitigate or
resolve any claim, action, proceeding or liability, then notwithstanding
anything else to the contrary contained in this Agreement, such failure shall
only affect the Indemnified Person's right to indemnification with respect to
such claim, action, proceeding or liability to the extent of any Losses that
could reasonably be expected to have been avoided if the Indemnified Person had
made such commercially reasonable efforts.

     13.7 Settlement or Compromise. Subject to Section 13.4, the Indemnifying
Person may, without the prior written consent of the Indemnified Person, settle
or compromise or consent to the entry of any judgment with respect to a claim or
any litigation resulting therefrom which is the subject of Section 13.6 if such
settlement, compromise or consent (i) includes an unconditional release of the
Indemnified Person from all liability arising out of such action, (ii) includes
no admission of fault or culpability by or on behalf of any Indemnified Person
or its businesses and (iii) provides

<PAGE>
                                      -63-

for settlement or relief solely in the form of monetary damages to be paid fully
by the Indemnifying Person. Any other type of settlement or compromise or
consent to the entry of any judgment shall not be undertaken by the Indemnifying
Person without obtaining the prior written consent of the Indemnified Person to
its terms, which consent shall not be unreasonably withheld or delayed; provided
that if the Indemnified Person shall have given such consent, the Indemnified
Person agrees that it shall, and shall cause its Affiliates to, submit to any
non-monetary relief of judgment arising out of or forming part of any such
settlement, compromise or consent.

     13.8 Shared Liability. With respect to any third party claim, action or
proceeding in relation to which an Indemnifying Person is required to indemnify
an Indemnified Person pursuant to this Article XIII (an "Indemnified Claim")
that is combined or joined with one or more claims, actions or proceedings that
are not Indemnified Claims or with respect to an Indemnified Claim under which
both the Indemnified Person and the Indemnifying Person may be liable, which
both desire to contest and control, the control of such claim, action or
proceeding shall rest with the Person having the larger amount in dispute, and
the Person in control may not settle or compromise any such claim without the
prior written consent of the other Person (such consent not to be unreasonably
withheld or delayed); provided, however, that if an Indemnifying Person may be
obligated to indemnify an Indemnified Person with respect to any Indemnified
Claim, the Indemnifying Person shall be deemed to have the amounts of such
Indemnified Claim in dispute.

     13.9 Environmental Indemnification by Seller. (a) Subject to the remaining
provisions of this Section 13.9, Seller agrees to indemnify each of the Company
Indemnified Parties and Metaldyne Indemnified Parties against, and agrees to
hold each of them harmless from, any and all Environmental Liabilities relating
to, arising out of, in connection with or in respect of any Known Environmental
Conditions. Seller's indemnification obligations under this Section 13.9(a)
shall not be subject to any limits as to amount or time.

     (b) Subject to the remaining provisions of this Section 13.9, Seller agrees
to indemnify each of the Company Indemnified Parties and Metaldyne Indemnified
Parties against, and agrees to hold each of them harmless from, any and all
Environmental Liabilities relating to, arising out of, in connection with or in
respect of any Unknown Environmental Conditions; provided, however, that: (i) no
Indemnified Person shall be entitled to make a claim against Seller under this
Section 13.9(b) unless such claim is made on or prior to [*]; and (ii) Seller
shall only be required to indemnify and hold harmless the Company Indemnified
Parties and Metaldyne Indemnified Parties from and against [*] of such
Environmental Liabilities unless and until the aggregate amount of all such
Environmental Liabilities exceeds [*], in which event Seller shall be obligated
to indemnify and hold harmless the Company Indemnified Parties and Metaldyne
Indemnified Parties from and against [*] of such Environment Liabilities in
excess of [*].

     (c) Notwithstanding any other provision of this Agreement, the
indemnification obligations of Seller under this Section 13.9 shall not be
subject to the provisions of Sections 13.5 through 13.8.

     (d) Notwithstanding any other provision of this Agreement, Seller shall
have no obligation to indemnify, defend or hold harmless the Company Indemnified
Parties or Metaldyne In-

<PAGE>
                                      -64-

demnified Parties for Environmental Liabilities or any Losses whatsoever under
this Section 13.9 to the extent such Environmental Liabilities or Losses (i)
arise out of or result from Remedial Action that exceeds the standards necessary
to (A) bring an Environmental Condition into compliance with Environmental Law
or (B) satisfy the requirements of an applicable Governmental Authority with
respect to an Environmental Condition to the extent required by Environmental
Law or (ii) result from or would not have arisen but for (A) Metaldyne or any
Metaldyne Indemnified Party undertaking any invasive drilling and sampling of
soil or groundwater other than as required by or for (w) the Phase II ESA, (x)
any Environmental Law in effect at the time of such drilling or sampling, any
Environmental Permit or any applicable Governmental Authority, (y) any
commercial transaction relating to or involving the Real Property or the
Transferred Assets (including, without limitation, the Facility) or (z) any
construction, erection, removal, repair, maintenance, demolition, alteration,
modification or relocation of any physical improvement or structure, (B) any
change of the use of any Real Property after the Closing Date to a
non-industrial or non-commercial use or (C) any disclosure by the Company,
Metaldyne or any of their Affiliates to any applicable Governmental Authority of
information or data, where such disclosure is not otherwise required by any
Environmental Law in effect at the time of such disclosure.

     (e) From and after the Closing, Seller shall control all Remedial Action
and negotiations with any Governmental Authority in respect of all Environmental
Conditions. Seller shall make its environmental personnel and consultants
reasonably available to Metaldyne to discuss Environmental Conditions. Metaldyne
shall provide Seller and its environmental consultants with reasonable access to
the Real Property and Seller shall provide Metaldyne with copies of all
non-privileged information with respect to Remedial Action to be taken in
respect of such Environmental Conditions. Such Remedial Actions shall be
performed in a commercially reasonable manner, including, to the extent allowed
or authorized by applicable Environmental Law or the Governmental Authority with
jurisdiction over a Remedial Action, the use of applicable Remediation
Standards. Seller shall select consultants and contractors to implement such
Remedial Action (not reasonably objected to by Metaldyne) and shall also provide
Metaldyne and its environmental consultants with copies of all non-privileged
Environmental Reports, analytical data, correspondence, directives, orders and
documents submitted to or received by Seller from any Governmental Authority in
connection with the Remedial Action and other non-privileged documents created
or received by or on behalf of Seller in connection with the Remedial Action.
Seller shall afford Metaldyne a reasonable opportunity to comment on Seller's
proposed response to an Environmental Condition, and Seller shall not
unreasonably refuse to incorporate Metaldyne's comments.

     (f) Metaldyne shall inform Seller promptly in writing of any Environmental
Condition or Environmental Claim in respect of which Seller may have an
indemnification obligation under this Section 13.9; provided that the failure of
Metaldyne to so promptly inform Seller shall not affect the rights of the
Company Indemnified Parties or Metaldyne Indemnified Parties Buyer except to the
extent (if any) that Seller shall have been prejudiced thereby.

     (g) Seller shall have no obligation to indemnify, defend and hold harmless
the Company Indemnified Parties and Metaldyne Indemnified Parties for
Environmental Liabilities under this Section 13.9 to the extent that such
Environmental Liabilities result solely from or to the extent such Environmental
Liabilities are increased as a result of any Environmental Law which is not

<PAGE>
                                      -65-

binding and in effect as of the Closing Date, or any Environmental Permit that
is not required to be in effect as of the Closing Date.

     (h) Following the Closing, absent willful concealment or fraud, claims for
indemnification pursuant to this Section 13.9 and claims for specific
performance of covenants of Seller under this Section 13.9 shall, collectively,
be the sole and exclusive remedies of the Company Indemnified Parties and
Metaldyne Indemnified Parties for claims and damages arising out of
Environmental Laws, Environmental Claims, Environmental Conditions,
Environmental Liabilities, Environmental Permits, Hazardous Materials or any
matters addressed in Section 2.5(b) or Section 5.21 or any Losses with respect
thereto, and the Company Indemnified Parties and Metaldyne Indemnified Parties
shall not be entitled to bring, and hereby irrevocably waive, any other claims,
rights or causes of action against Seller, whether in equity or in law. The
right of indemnification provided in this Section 13.9 is solely for the benefit
of the Company Indemnified Parties and Metaldyne Indemnified Parties, and such
right will not be extended, directly or indirectly, to any other Person. For the
avoidance of doubt, this Section 13.9(h) shall not limit a party's ability to
bring other claims after Closing under any Related Agreement.

     13.10 Resolution of Indemnification Disputes. If a dispute arises in
connection with determining the validity or amount of a claim for
indemnification for any Loss under this Agreement Article XIII (including
Section 13.9) (a "Dispute"), and if the Dispute cannot be settled through direct
discussions held in good faith between representatives of the Indemnifying
Person and representatives of the Indemnified Persons within one hundred twenty
(120) days following receipt of notice of a Dispute, the parties agree first to
endeavor to settle the dispute in an amicable manner by mediation administered
under the CPR Mediation Procedure established by the CPR Institute for Dispute
Resolution ("CPR") before resorting to arbitration. If a Dispute cannot be
resolved through such mediation process within sixty (60) days following the
appointment of the mediator, the Dispute will be settled finally by arbitration
under the CPR Rules for Non-Administered Arbitration (the "Rules"), then in
effect, by a sole arbitrator, chosen by agreement of the parties within twenty
(20) days of the receipt by the respondent of a copy of the notice of
arbitration. Any arbitrator appointed by CPR shall be a retired judge or a
practicing attorney with no less than ten (10) years of experience with large
commercial cases and an experienced arbitrator, except that in the case of a
Dispute with respect to a claim for indemnification under Section 13.9, the
arbitrator appointed by CPR shall be a nationally-recognized expert in
environmental matters and an experienced arbitrator. The arbitration will be
governed by the Federal Arbitration Act, 9 U.S.C. ss. 1 et seq. Any arbitrator
shall be bound to apply the terms of this Agreement and applicable Law pursuant
to Section 14.8. The hearing on the merits shall be held no later than six (6)
months after the appointment of the arbitrator unless the parties otherwise
agree or the arbitrator extends such time period for good cause shown. The award
shall be in writing and shall state the findings of fact and conclusions of law
on which it is based. The award of the arbitrator shall be final and binding on
the parties and judgment upon the award may be entered and enforced in any court
having jurisdiction. Unless the parties otherwise agree in writing, the
mediation and arbitration will be held in Detroit, Michigan. Each party shall
bear its own costs and expenses (including fees and disbursements of counsel)
and Seller and Metaldyne shall each bear one-half of the costs and expenses
payable to the mediator and arbitrator.

<PAGE>
                                      -66-

                                   ARTICLE XIV

                                  MISCEllANEOUS

     14.1 Expenses. Whether or not the transactions contemplated hereby are
consummated, each party hereto shall bear its own costs and expenses (including
the fees and disbursements of legal counsel, investment bankers, brokers and
accountants) with respect to the transactions contemplated hereby. Seller shall
pay all sales, use, stamp, transfer, service, recording, real estate and like
taxes or fees, if any, imposed by any Governmental Authority in connection with
the transactions, contemplated hereby.

     14.2 Amendment. This Agreement may be amended, modified, supplemented,
superseded or canceled, and any of the terms, covenants, representations,
warranties or conditions hereof may be waived, only by a written instrument
signed by each of the parties hereto or, in the case of waiver, by or on behalf
of the party waiving compliance.

     14.3 Notices. Any notice, request, instruction or other document to be
given or made hereunder by a party hereto shall be in writing and shall be
deemed to have been duly given or made: (a) on the date of receipt if given in
person; (b) on the date of transmission if sent by facsimile or e-mail with
receipt of delivery confirmation; (c) three (3) Business Days after being
deposited in the U.S. mail, certified or registered mail, postage prepaid,
return receipt requested; or (d) one (1) Business Day following sending by
overnight delivery via an internationally recognized courier service, in each
case, to the applicable party at the following addresses or facsimile numbers
(or at such other address or facsimile number for a party as shall be specified
by like notice):

                  If to Seller, addressed as follows:

                           DaimlerChrysler Corporation
                           1000 Chrysler Drive
                           Auburn Hills, Michigan  48326
                           Attention:  General Counsel
                           Facsimile:  (248) 512-1771
                           Email:  cnl1@dcx.com

                  with a copy to:

                           Jones, Day, Reavis & Pogue
                           77 W. Wacker, Suite 3500
                           Chicago, Illinois  60601
                           Attention:  Elizabeth C. Kitslaar
                           Facsimile:  (312) 782-8585
                           E-mail:  ekitslaar@jonesday.com

<PAGE>
                                      -67-

                  If to the Company, addressed as follows:

                           NC-M Chassis Systems, LLC
                           1817 I Avenue
                           New Castle, Indiana  47362
                           Attention:  Plant Manager
                           Facsimile:  (765) 521-1735
                           E-mail:     dw54@dcx.com

                  with a copy to:

                           Jones, Day, Reavis & Pogue
                           77 W. Wacker, Suite 3500
                           Chicago, Illinois  60601
                           Attention:  Elizabeth C. Kitslaar
                           Facsimile:  (312) 782-8585
                           E-mail:     ekitslaar@jonesday.com

                  If to Metaldyne, addressed as follows:

                           Metaldyne Corporation
                           47603 Halyard Drive
                           Plymouth, Michigan  48170
                           Attention:  Thomas A. Amato
                                          Jeffrey Pollock
                           Facsimile:  (734) 207-6741
                                       (734) 207-6797
                           E-mail:     thomasamato@metaldyne.com
                                       jeffpollock@metaldyne.com

                  with a copy to:

                           Cahill Gordon & Reindel
                           80 Pine Street
                           New York, New York  10005
                           Attention:  W. Leslie Duffy
                                         Jonathan A. Schaffzin
                           Facsimile:  (212) 269-5420
                           E-mail:     lduffy@cahill.com
                                       jschaffzin@cahill.com

Any rejection or other refusal to accept or the inability to deliver any such
notice because of a changed address of which no notice was given shall be deemed
to be receipt of the notice as of the date of such rejection, refusal or
inability to deliver.

<PAGE>
                                      -68-

     14.4 Waivers. The failure of a party hereto at any time or times to require
performance of any provision hereof shall in no manner affect its right at a
later time to enforce the same. No waiver by a party of any condition or of any
breach of any term, covenant, representation or warranty contained in this
Agreement shall be effective unless given in writing by the party entitled to
the benefits thereof, and no waiver in any one or more instances shall be deemed
to be a further or continuing waiver of any such condition or breach in other
instances or a waiver of any other condition or breach of any other term,
covenant, representation or warranty.

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

     14.6 Headings. The headings preceding the text of articles and sections
included in this Agreement and the headings to schedules attached to this
Agreement are for convenience only and shall not be deemed part of this
Agreement or be given any effect in interpreting this Agreement.

     14.7 Interpretation. Unless otherwise indicated, words describing the
singular number shall include the plural and vice versa, and words denoting each
gender shall include the other gender and words denoting natural persons shall
include corporations and partnerships and vice versa. The use of the terms
"including" or "included" shall in all cases herein mean "including, without
limitation" or "included, without limitation," respectively. Unless otherwise
indicated, references to articles, sections, subsections or schedules shall
refer to those portions of this Agreement. Consummation of the transactions
contemplated herein shall not be deemed a waiver of a breach of or inaccuracy in
any representation, warranty or covenant or of any party's rights and remedies
with regard thereto. No specific representation, warranty or covenant contained
herein shall limit the generality or applicability of a more general
representation, warranty or covenant contained herein. A breach of or inaccuracy
in any representation, warranty or covenant shall not be affected by the fact
that any more general or less general representation, warranty or covenant was
not also breached or inaccurate.

     14.8 Applicable Law. The validity, construction, enforcement,
interpretation and effect of this Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Michigan, without
giving effect to the principles of conflicts of law of such State.

     14.9 Jurisdiction; Waiver of Jury Trial. Except as otherwise expressly
provided in this Agreement or any Related Agreement, any suit, action or
proceeding seeking to enforce any provision of, or based on any matter arising
out of or in connection with, this Agreement or the Related Agreements shall be
brought in any United States federal or state court sitting in the State of
Michigan, and each of the parties hereby irrevocably and unconditionally
consents to the exclusive jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding, agrees that
it will not attempt to deny or defeat personal jurisdiction by motion or other
request for leave from any such court and irrevocably and unconditionally
waives, to the fullest extent permitted by applicable Law, any objection that it
may now or hereafter have to the laying of the venue of any such suit, action or
proceeding in any such court or that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum. Process in any such
suit, action or proceeding may be served on any party anywhere in the world,
whether within or with-

<PAGE>
                                      -69-

out the jurisdiction of any such court. Without limiting the foregoing, each
party agrees that service of process, summons or notice on such party as
provided in Section 14.3 shall be deemed effective service of process on such
party for any suit, action or proceeding brought in such court. Each party
agrees that a final judgment in any such suit, action or proceeding brought in
any such court shall be conclusive and binding upon such party and may be
enforced in any other courts to whose jurisdiction such party is or may be
subject, by suit upon judgment. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE RELATED AGREEMENTS
OR ANY DEALINGS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS
AGREEMENT OR THE RELATED AGREEMENTS. THE PARTIES ALSO WAIVE ANY BOND OR SURETY
OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF ANY
OF THE OTHER PARTIES. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT
RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW
AND STATUTORY CLAIMS. THE PARTIES ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO THIS AGREEMENT, THAT EACH HAS ALREADY RELIED ON THE
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON
THE WAIVER IN ITS RELATED FUTURE DEALINGS. THE PARTIES FURTHER WARRANT AND
REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT
OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS COMPLETED
HEREBY. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

     14.10 Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns;
provided, however, that no assignment of any rights or obligations shall be made
by (i) the Company or Seller without the written consent of Metaldyne or (ii)
the Company or Metaldyne without the written consent of Seller. Notwithstanding
the foregoing, each of the Company and Metaldyne may assign its rights or
obligations under this Agreement to the purchaser of any of the Real Property in
a sale leaseback transaction; provided that Metaldyne shall continue to,
directly or indirectly, operate the Business and the Facility.

     14.11 No Third Party Beneficiaries. This Agreement is solely for the
benefit of the parties hereto, and no provision of this Agreement shall be
deemed to confer upon other Person not a party hereto any legal or equitable
right or remedy, claim, Liability, reimbursement, cause of action or other
right.

     14.12 Severability. If any provision of this Agreement shall be held
invalid, illegal or unenforceable, the validity, legality or enforceability of
the other provisions shall not be affected

<PAGE>
                                      -70-

thereby, and there shall be deemed substituted for the provision at issue a
valid, legal and enforceable provision as similar as possible to the provision
at issue.

     14.13 Remedies Cumulative. The remedies provided in this Agreement shall be
cumulative and shall not preclude the assertion or exercise of any other rights
or remedies available by applicable Law, in equity or otherwise.

     14.14 Investigation. The right to indemnification, reimbursement or other
remedy based upon breach of any representations, warranties, covenants or
obligations hereunder shall not be affected by any investigation (including any
environmental investigation or assessment) conducted with respect to, or any
knowledge acquired (or capable of being acquired) at any time, with respect to
the accuracy or inaccuracy of or the performance or nonperformance of or
compliance or noncompliance with any such representation, warranty, covenant or
obligation. The waiver of any condition based upon the accuracy of any
representation or warranty, or on the performance of or compliance with any
covenant or obligation, will not affect the right to indemnification,
reimbursement or other remedy based upon such representations, warranties,
covenants and obligations.

     14.15 Entire Understanding. This Agreement, together with the exhibits and
schedules hereto and the Related Agreements, constitute the entire agreement and
understanding of the parties hereto and supersede any and all prior agreements,
representations, arrangements and understandings, both written and oral, among
the parties hereto with respect to the subject matter hereof. None of the
parties shall be liable or bound to any other party in any manner by any
representations, warranties or covenants relating to such subject matter except
as specifically set forth herein or in any Related Document.

                                    * * * * *

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the date first above written.

                                NC-M CHASSIS SYSTEMS, LLC

                                By:  /s/ Giovanni Bonadonna
                                     -----------------------------------------
                                       Name:   Giovanni Bonadonna
                                       Title:  Vice President

                                DAIMLERCHRYSLER CORPORATION

                                By:  /s/ John C. Stellman
                                     -----------------------------------------
                                       Name:   John C. Stellman
                                       Title:  Vice President Mergers &
                                               Acquisitions

                                METALDYNE CORPORATION

                                By:  /s/ Timothy D. Leuliette
                                     -----------------------------------------
                                       Name:   Timothy D. Leuliette
                                       Title:  President and CEO

                                      S-1Exhibit 10.2

                              AMENDED AND RESTATED
                               OPERATING AGREEMENT

                                       OF

                            NC-M CHASSIS SYSTEMS, LLC

                             Dated as of [ ], 200[ ]

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                               CERTAIN DEFINITIONS

SECTION 1.1           Certain Definitions....................................1
SECTION 1.2           Rules of Construction.................................13

                                   ARTICLE II

                             ORGANIZATIONAL MATTERS

SECTION 2.1           Formation.............................................14
SECTION 2.2           The Certificate, Etc..................................14
SECTION 2.3           Name..................................................14
SECTION 2.4           Purpose...............................................14
SECTION 2.5           Powers of the Company.................................15
SECTION 2.6           Representations and Warranties of the Company.........16
SECTION 2.7           Foreign Qualification.................................17
SECTION 2.8           Principal Office; Registered Office...................18
SECTION 2.9           Term..................................................18
SECTION 2.10          No State-Law Partnership..............................18

                                   ARTICLE III

                             UNITS; CAPITAL ACCOUNTS

SECTION 3.1           Unitholders...........................................18
SECTION 3.2           Unitholder Meetings...................................20
SECTION 3.3           Action of Unitholders by Written Consent or
                        Telephone Conference................................23
SECTION 3.4           Capital Accounts......................................24
SECTION 3.5           Negative Capital Accounts.............................25
SECTION 3.6           No Withdrawal.........................................25
SECTION 3.7           Certificates..........................................25
SECTION 3.8           Register..............................................25
SECTION 3.9           New Certificates......................................25
SECTION 3.10          Interest as a Security................................26
SECTION 3.11          Restrictive Legend....................................26

                                      -i-
<PAGE>
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                                                                            ----

                                   ARTICLE IV

                   DISTRIBUTIONS; REDEMPTIONS AND ALLOCATIONS

SECTION 4.1           Distributions.........................................26
SECTION 4.2           Allocations...........................................28
SECTION 4.3           Special Allocations...................................29
SECTION 4.4           Tax Allocations.......................................30
SECTION 4.5           Adjustment of Book Value of Assets....................31
SECTION 4.6           Indemnification for Payments on Behalf of a
                        Unitholder..........................................31

                                    ARTICLE V

                           BOARD OF MANAGERS; OFFICERS

SECTION 5.1           Management by the Board of Managers...................31
SECTION 5.2           Composition and Election of the Board of Managers.....33
SECTION 5.3           Board Meetings and Actions by Written Consent.........34
SECTION 5.4           Committees; Delegation of Authority and Duties........36
SECTION 5.5           Officers..............................................37

                                   ARTICLE VI

                  GENERAL RIGHTS AND OBLIGATIONS OF UNITHOLDERS

SECTION 6.1           Limitation of Liability...............................37
SECTION 6.2           Lack of Authority.....................................38
SECTION 6.3           No Right of Partition.................................38
SECTION 6.4           Unitholders' Right To Act.............................38
SECTION 6.5           Conflicts of Interest.................................38
SECTION 6.6           Transactions Between the Company and the Unitholders..39
SECTION 6.7           Right of Inspection...................................39

                                   ARTICLE VII

                         EXCULPATION AND INDEMNIFICATION

SECTION 7.1           Liability.............................................39
SECTION 7.2           Exculpation...........................................39
SECTION 7.3           Right to Indemnification..............................40
SECTION 7.4           Advance Payment.......................................40
SECTION 7.5           Indemnification of Employees and Agents...............40
SECTION 7.6           Appearance as a Witness...............................41
SECTION 7.7           Nonexclusivity of Rights..............................41
SECTION 7.8           Insurance.............................................41

                                      -ii-
<PAGE>
                                                                            Page
                                                                            ----

SECTION 7.9           Savings Clause........................................41

                                  ARTICLE VIII

                     BOOKS, RECORDS, ACCOUNTING AND REPORTS

SECTION 8.1           Records and Accounting................................41
SECTION 8.2           Fiscal Year...........................................42
SECTION 8.3           Reports...............................................42
SECTION 8.4           Transmission of Communications........................43
SECTION 8.5           Company Funds.........................................43
SECTION 8.6           Auditors..............................................43

                                   ARTICLE IX

                                      TAXES

SECTION 9.1           Tax Returns...........................................44
SECTION 9.2           Tax Elections.........................................44
SECTION 9.3           Tax Matters Partner...................................44

                                    ARTICLE X

                              TRANSFER OF INTERESTS

SECTION 10.1          Transfers by Unitholders..............................44
SECTION 10.2          Effect of Assignment..................................45
SECTION 10.3          Restrictions on Transfer..............................45
SECTION 10.4          Transfer Fees and Expenses............................45
SECTION 10.5          Void Transfers........................................46

                                   ARTICLE XI

                            ADMISSION OF UNITHOLDERS

SECTION 11.1          Substituted Unitholders...............................46
SECTION 11.2          Additional Unitholders................................46

                                   ARTICLE XII

                    WITHDRAWAL AND RESIGNATION OF UNITHOLDERS

SECTION 12.1          Withdrawal and Resignation of Unitholders.............46
SECTION 12.2          Withdrawal of a Unitholder............................47

                                     -iii-
<PAGE>
                                                                            Page
                                                                            ----

                                  ARTICLE XIII

                           DISSOLUTION AND LIQUIDATION

SECTION 13.1          Dissolution...........................................47
SECTION 13.2          Liquidation and Termination...........................47
SECTION 13.3          Cancellation of Certificate...........................48
SECTION 13.4          Reasonable Time for Winding Up........................48
SECTION 13.5          Return of Capital.....................................48
SECTION 13.6          Reserves Against Distributions........................48

                                   ARTICLE XIV

                                    VALUATION

SECTION 14.1          Determination.........................................49
SECTION 14.2          Fair Market Value.....................................49

                                   ARTICLE XV

                              CALL AND PUT OPTIONS

SECTION 15.1          Metaldyne Call Option.................................50
SECTION 15.2          Metaldyne Put Option..................................55
SECTION 15.3          DaimlerChrysler Call Option...........................57
SECTION 15.4          Suspension and Termination of Call and Put Options....58

                                   ARTICLE XVI

                     CERTAIN OBLIGATIONS OF DAIMLERCHRYSLER

SECTION 16.1          Certain Obligations of DaimlerChrysler During JV
                        Period..............................................59
SECTION 16.2          Certain Obligations of DaimlerChrysler During and
                        After JV Period.....................................59
SECTION 16.3          Additional Contributions..............................60

                                  ARTICLE XVII

                         NET WORKING CAPITAL ADJUSTMENT

SECTION 17.1          Net Working Capital Adjustment........................60

                                  ARTICLE XVIII

                               GENERAL PROVISIONS

SECTION 18.1          Power of Attorney.....................................61

                                      -iv-
<PAGE>
                                                                            Page
                                                                            ----

SECTION 18.2          Amendments............................................62
SECTION 18.3          Title to Company Assets...............................62
SECTION 18.4          Remedies..............................................62
SECTION 18.5          Successors and Assigns................................62
SECTION 18.6          Severability..........................................62
SECTION 18.7          Notice to Unitholder of Provisions....................63
SECTION 18.8          Counterparts..........................................63
SECTION 18.9          Consent to Jurisdiction; Waiver of Jury Trial.........63
SECTION 18.10         Descriptive Headings; Interpretation..................64
SECTION 18.11         Applicable Law........................................64
SECTION 18.12         Addresses and Notices.................................64
SECTION 18.13         Creditors.............................................65
SECTION 18.14         Waiver of Certain Rights..............................65
SECTION 18.15         Further Action........................................65
SECTION 18.16         Entire Agreement......................................65
SECTION 18.17         Delivery by Facsimile.................................65
SECTION 18.18         Survival..............................................66
SECTION 18.19         Dispute Resolution Procedures.........................66
SECTION 18.20         Public Statements.....................................67

SCHEDULES

Schedule A            Capital Accounts

EXHIBITS

Exhibit A             Board Actions Requiring Supermajority Approval
Exhibit B             Actions Requiring Supermajority Unitholder Approval
Exhibit C             Form of Securities Purchase Agreement
Exhibit D             Term Sheet for Series A-1 Preferred Stock Investor
                        Rights Agreement
Exhibit E             Term Sheet for Indenture and Senior Subordinated Notes
                        Registration Rights Agreement
Exhibit F             Form of Certificate of Designations
Exhibit G             Form of Legal Opinion
Exhibit H             Form of Transition Services Agreement
Exhibit I             Operating Budget and Capital Plan
Exhibit J             Government Approvals for Metaldyne Call Option Closing
Exhibit K             Form of Letter of Representations

                                      -v-
<PAGE>

     AMENDED AND RESTATED OPERATING AGREEMENT (this "Operating Agreement"),
dated as of [ ], 200[ ], by and among NC-M Chassis Systems, LLC (the "Company")
and the Unitholders (as defined below).

     WHEREAS, the Company was formed on December 6, 2002 for the purpose of
serving as the vehicle for the joint venture between the Initial Unitholders (as
defined below) to be formed pursuant to that certain Joint Venture Formation
Agreement, dated as of December 8, 2002, by and among the Company and the
Initial Unitholders (the "Formation Agreement");

     WHEREAS, pursuant to and subject to the terms and conditions of the
Formation Agreement, (i) DaimlerChrysler (as defined below) has contributed and
assigned to the Company, and the Company has received and assumed from
DaimlerChrysler, certain assets and liabilities of the Business (as defined
below) in exchange for the issuance by the Company to DaimlerChrysler of all of
the Units of the Company, and (ii) DaimlerChrysler has sold, transferred and
conveyed to Metaldyne (as defined below), and Metaldyne has purchased from
DaimlerChrysler, 40% of the Class A Units, all as set forth in the Formation
Agreement;

     WHEREAS, the execution and delivery of this Operating Agreement is a
condition to the formation of the joint venture and the closing of the
transactions contemplated by the Formation Agreement;

     WHEREAS, in accordance with Section 18-201(d) of the Delaware Act (as
defined below), the Unitholders are entering into this Operating Agreement in
order to set forth their agreement as to the affairs of the Company and the
conduct of its business.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

                                    ARTICLE I

                               CERTAIN DEFINITIONS

     SECTION 1.1 Certain Definitions. The following terms used herein shall have
the following meanings:

     "Accountant" has the meaning set forth in Section 17.1.

     "Additional Contributions" has the meaning set forth in Section 16.3.

     "Additional Unitholder" means a Person admitted to the Company as a
Unitholder pursuant to Section 11.2.

<PAGE>
                                      -2-

     "Adjusted Capital Account Deficit" means with respect to any Unitholder's
Capital Account as of the end of any Taxable Year, the amount by which the
balance in such Capital Account is less than zero. For this purpose, such
Capital Account balance shall be:

          (i) reduced for any items described in Treasury Regulation Section
     1.704-1(b)(2)(ii)(d)(4), (5) and (6); and

          (ii) increased for any amount such Unitholder is obligated to
     contribute or is treated as being obligated to contribute to the Company
     pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(c) (relating to
     partner liabilities to a partnership) or 1.704-2(g)(1) and 1.704-2(i)
     (relating to Minimum Gain).

     "Affiliate" with respect to any Person means any other Person that,
directly or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, such Person, where "control"
means, with respect to any Person, the possession, directly or indirectly, of
the power to direct the management and policies of a Person whether through the
ownership of voting securities, by contract or otherwise.

     "Assignee" means a Person to whom a Unit has been transferred in accordance
with the terms of this Operating Agreement and the other agreements contemplated
hereby, but who has not become a Unitholder pursuant to Article X.

     "Assumed Liabilities" has the meaning set forth in the Formation Agreement.

     "Board" means the Board of Managers established pursuant to Section 5.2.

     "Book Value" means, with respect to any asset of the Company, initially the
adjusted basis of such asset for federal income tax purposes; provided, however,
that (i) if any asset is contributed to the Company, the initial Book Value of
such asset shall equal its Fair Market Value on the date of contribution (as
agreed to by the Unitholders), and (ii) if the Capital Accounts of the
Unitholders are adjusted pursuant to Treasury Regulation Section 1.704-1(b) to
reflect the Fair Market Value of any asset of the Company, the Book Value of
such asset shall be adjusted to equal its respective Fair Market Value as of the
time of such adjustment, in accordance with such Treasury Regulation. The Book
Value of all assets of the Company shall be adjusted by depreciation and other
items as provided in Treasury Regulation Section 1.704-1(b)(2)(iv)(g) and any
other adjustment to the basis of such assets other than depreciation or
amortization.

     "Business" has the meaning set forth in the Formation Agreement.

     "Business Day" means a day other than Saturday, Sunday or any other day on
which commercial banks in New York, New York are authorized or required by
applicable Law to close.

     "Capital Account" means the capital account maintained for a Unitholder
pursuant to Section 3.4.

<PAGE>
                                      -3-

     "Capital Contributions" means, with respect to any Unitholder, any cash,
cash equivalents, promissory obligations, or the Fair Market Value of other
property, which a Unitholder contributes or is deemed to have contributed to the
Company with respect to any Unit pursuant to Section 3.1 net of any related
liabilities assumed by the Company or to which such property is subject.

     "Capital Stock" means: (i) in the case of a corporation, capital stock;
(ii) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
capital stock; (iii) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and (iv) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

     "Certificate" means the Company's Certificate of Formation as filed with
the Secretary of State of the State of Delaware on December 6, 2002, as it may
be amended from time to time.

     "Certificate of Designations" means the Certificate of Designations for the
Series A-1 Preferred Stock and the Series A-2 Preferred Stock in the form of
Exhibit F.

     "Change of Control" means, with respect to any Person ("Person A"), the
occurrence of any of the following: (a) a merger, consolidation, share exchange
or similar transaction involving Person A and one or more other Persons in which
Person A is not the surviving Person, other than a transaction in which at least
66 2/3% of the outstanding Capital Stock entitled to vote generally in the
election of the board of directors (or similar governing body) of the surviving
Person is beneficially owned by the holders of the outstanding Capital Stock
entitled to vote generally in the election of the board of directors (or similar
governing body) of Person A immediately prior to such transaction; (b) the sale
in one or more related transactions of all or substantially all of the assets,
businesses or revenue or income generating operations of Person A; (c) in the
case of Metaldyne, if Heartland Industrial Partners, L.P. and its Affiliates
cease to own 25% or more of the number of shares of Capital Stock entitled to
vote generally in the election of the board of directors of Metaldyne held by
them on the date hereof (appropriately adjusted for stock splits, combinations,
subdivisions, stock dividends and similar events); (d) any person or group
within the meaning of Section 13(d)(3) of the Exchange Act (other than, with
respect to Metaldyne, Heartland Industrial Partners, L.P. and its Affiliates)
shall attain beneficial ownership, within the meaning of Rule 13d-3 adopted
under the Exchange Act, of Capital Stock representing a majority of the voting
power for the election of the board of directors (or similar governing body) of
Person A; or (e) Person A shall engage in any transaction (or any series of
related transactions) with any other Person as a result of which the Person A
Holders do not have the right following the consummation of such transaction (or
such series of related transactions) to elect or to appoint a majority of the
board of directors (or similar governing body) of the surviving Person.

     "Class A Unit" means a Unit representing a fractional part of the Interest
of a Unitholder or Assignee and having the rights and obligations specified with
respect to the Class A Units in this Operating Agreement.

     "Class A Unitholder" means a Unitholder in its capacity as an owner of
Class A Units.

<PAGE>
                                      -4-

     "Class A Units Purchase Price" has the meaning set forth in Section
15.1(c)(i).

     "Class B Unit" means a Unit representing a fractional part of the Interest
of a Unitholder or Assignee and having the rights and obligations specified with
respect to the Class B Units in this Operating Agreement.

     "Class B Unitholder" means a Unitholder in its capacity as an owner of
Class B Units.

     "Class B Units Purchase Price" has the meaning set forth in Section
15.1(c)(ii).

     "Class B Unreturned Capital" means, as of any date, $185,000,000 minus the
aggregate amount of all Distributions made by the Company to the Class B
Unitholders as of such date that constitute a return of Class B Unreturned
Capital under Section 4.1(a)(i).

     "Code" means the United States Internal Revenue Code of 1986, as amended.

     "Company" means NC-M Chassis Systems, LLC, a Delaware limited liability
company, and any successor.

     "Company Material Adverse Change" means a change (or historical
circumstance or event resulting in a prospective change) that is materially
adverse with respect to the business, operations, assets, liabilities, results
of operations, cash flows or financial condition of the Company and its
Subsidiaries, taken as a whole; provided, however, that any change (or
historical circumstance or event resulting in a prospective change) that is
generally applicable to (i) the industries and markets in which the Company and
its Subsidiaries operate their respective businesses, (ii) the United States or
global economy or (iii) the United States securities markets shall be excluded
from the determination of Company Material Adverse Change; and provided,
further, that any change (or historical circumstance or event resulting in a
prospective change) resulting from or arising out of the exercise or the
consummation of the Metaldyne Call Option shall also be excluded from the
determination of a Company Material Adverse Change.

     "Company Material Adverse Effect" means an effect (or historical
circumstance or event resulting in a prospective effect) that is materially
adverse with respect to the business, operations, assets, liabilities, results
of operations, cash flows or financial condition of the Company and its
Subsidiaries, taken as a whole; provided, however, that any effect (or
historical circumstance or event resulting in a prospective effect) that is
generally applicable to (i) the industries and markets in which the Company and
its Subsidiaries operate their respective businesses, (ii) the United States or
global economy or (iii) the United States securities markets shall be excluded
from the determination of Company Material Adverse Effect; and provided,
further, that any effect (or historical circumstance or event resulting in a
prospective effect) resulting from or arising out of the exercise or the
consummation of the Metaldyne Call Option shall also be excluded from the
determination of a Company Material Adverse Effect.

     "Company Minimum Gain" means "partnership minimum gain" as defined in
Treasury Regulation Section 1.704-2(d).

<PAGE>
                                      -5-

     "Competition Laws" has the meaning set forth in Section 15.1(d)(iii).

     "Corporate Opportunity" means any potential investment, transaction,
business venture, contractual or other business relationship, prospective
economic advantage or other opportunity within or similar to the Company's
activities or lines of business or otherwise in which the Company may, but for
the provisions of Section 6.5, have an interest or expectancy.

     "DaimlerChrysler" means DaimlerChrysler Corporation, a Delaware
corporation, and any successor.

     "DaimlerChrysler Call Option" has the meaning set forth in Section 15.3(a).

     "DaimlerChrysler Call Option Closing" has the meaning set forth in Section
15.3(d)(i).

     "DaimlerChrysler Objection Notice" has the meaning set forth in Section
17.1.

     "Delaware Act" means the Delaware Limited Liability Company Act, 6 Del. L.
Section 18-101 et seq., as it may be amended from time to time, and any
successor to the Delaware Act.

     "Dispute" has the meaning set forth in Section 18.19.

     "Dispute Notice" has the meaning set forth in Section 18.19(a).

     "Distribution" means each distribution made by the Company to a Unitholder,
whether in cash, property or securities of the Company, and whether by
liquidating distribution, redemption, repurchase or otherwise; provided that any
recapitalization or exchange or conversion of securities of the Company and any
subdivision (by Unit split or otherwise) or any combination (by reverse Unit
split or otherwise) of any outstanding Units shall not be deemed a Distribution.

     "DOJ" has the meaning set forth in Section 15.1(d)(iii).

     "Employee Matters Agreement" means the Employee Matters Agreement, dated as
of the date hereof, by and among DaimlerChrysler, the Company and Metaldyne.

     "Excess Tax Distributions" has the meaning set forth in Section 4.1(b)(ii).

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
applicable rules and regulations promulgated thereunder, and any successor to
such statute, rules or regulations.

     "Facility" has the meaning set forth in the Formation Agreement.

     "Fair Market Value" means, with respect to any asset or equity interest,
its fair market value determined according to Article XIV.

     "Final Balance Sheet" has the meaning set forth in Section 17.1.

<PAGE>
                                      -6-

     "Final Net Working Capital" means the dollar amount of current assets set
forth on the Final Balance Sheet less the dollar amount of current liabilities
set forth on the Final Balance Sheet.

     "Fiscal Quarter" means the three-month period beginning with the first day
of the Fiscal Year and ending on the last day of the third month of such Fiscal
Year and each three-month period thereafter.

     "Fiscal Year" means the Company's annual accounting period established
pursuant to Section 8.2.

     "Formation Agreement" means the Joint Venture Formation Agreement, dated as
of December 8, 2002, by and among the Company and the Initial Unitholders, as
amended or modified from time to time in accordance with the terms thereof.

     "FTC" has the meaning set forth in Section 15.1(d)(iii).

     "GAAP" means generally accepted accounting principles in the United States
in effect from time to time.

     "General Ledger" has the meaning set forth in Section 8.3(a).

     "Governmental Approvals" shall mean any consent, approval, authorization,
waiver, permit, grant, franchise, concession, agreement, license, exemption or
order of, registration, certificate, declaration or filing with, or report or
notice of or to, any Governmental Authority.

     "Governmental Authority" means the United States of America or any other
nation, any state or other political subdivision thereof, or any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of government or any agency or department or subdivision of any
governmental authority, including the United States federal government or any
state or local government.

     "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended, and the rules and regulations promulgated thereunder.

     "Indebtedness" means, with respect to any Person, any indebtedness of such
Person, whether or not contingent: (i) in respect of borrowed money; (ii)
evidenced by bonds, notes, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof); (iii) in respect of
banker's acceptances; (iv) representing capital lease obligations; (v)
representing the balance deferred and unpaid of the purchase price of any
property, except any such balance that constitutes an accrued expense or trade
payable; and (vi) representing any interest rate or currency hedging
obligations, if and to the extent any of the preceding items (other than letters
of credit and hedging obligations) would appear as a liability upon a balance
sheet of such Person prepared in accordance with GAAP. In addition,
"Indebtedness" includes (a) all Indebtedness of others secured by a Lien on any
asset of such Person (whether or not such Indebtedness is assumed by such
Person), (b) obligations with respect to self-insurance arrangements, including
for workers' compensation, and (c) to the extent not otherwise included, the
guarantee by such Person of any Indebtedness of others.

<PAGE>
                                      -7-

     "Indenture" means the Indenture, to be dated as of the date of the
Metaldyne Call Option Closing, by and between Metaldyne and DaimlerChrysler,
having substantially the terms set forth on Exhibit E and to be in a form
mutually agreed by DaimlerChrysler and Metaldyne prior to the Closing Date (as
defined in the Formation Agreement).

     "Initial Unitholders" means DaimlerChrysler and Metaldyne.

     "Interest" means the interest of a Unitholder in Profits, Losses, and
Distributions.

     "International Qualified Collective Bargaining Agreement" means an
agreement between DaimlerChrysler and the International UAW constituting the
effective withdrawal of the Facility, including leased bargaining unit employees
as provided in the Employee Matters Agreement and any employees hired and
employed directly by the Company, from all terms and conditions of the
DaimlerChrysler/UAW National Agreement (including all side letters), including,
but not limited to, provisions regarding labor protection (including the
so-called ESS (BEL), SWEL sub pay, and any other job security or job guarantee
provisions), outsourcing restrictions, job relocation provisions, mandatory
classification and training provisions, and all other national terms and
conditions that would in any way limit the ability of the Company to operate the
Facility in any manner following the Metaldyne Call Option Closing.

     "Inventory" has the meaning set forth in the Formation Agreement.

     "JV Period" means the period beginning on the date of this Operating
Agreement and ending on the JV Termination Date.

     "JV Termination Date" means the date of the Metaldyne Call Option Closing,
Metaldyne Put Option Closing or the DaimlerChrysler Call Option Closing,
whichever occurs.

     "Law" means any law, statute, regulation, ordinance, rule, order, decree,
judgment, consent decree, settlement agreement or governmental requirement
enacted, promulgated, entered into, agreed to or imposed by any Governmental
Authority.

     "Leased Employees Qualified Collective Bargaining Agreements" means
agreements entered into voluntarily, without arbitration or court order, between
DaimlerChrysler and the International UAW, as well as any other unions,
governing DaimlerChrysler employees who will or may be leased to the Company
after the Metaldyne Call Option Closing, in form(s) satisfactory to Metaldyne in
its sole discretion in respect of its operation of the Business.

     "Letter of Representations" has the meaning set forth in Section
15.2(d)(iii)(B).

     "Liens" means any mortgage, lien, pledge, charge, security interest or
encumbrance of any kind, whether or not filed, recorded or otherwise perfected
under applicable Law, including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option or other agreement to
sell or give a security interest in and any filing of or agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes)
of any jurisdiction.

<PAGE>
                                      -8-

     "Local Qualified Collective Bargaining Agreements" means agreements entered
into voluntarily, without arbitration or court order, between the Company and
the International UAW and its Local 371, as well as any other unions, if any,
representing employees to be hired by the Company at the Facility after the
Metaldyne Call Option Closing, in form(s) satisfactory to Metaldyne in its sole
discretion.

     "Loss" means, for each Taxable Year or other period, an amount equal to the
Company's items of deduction and loss for such year or other period, determined
in accordance with Section 703(a) of the Code (including all items of loss or
deduction required to be stated separately under Section 703(a)(1) of the Code),
with the following adjustments:

          (i) any expenditures of the Company described in Section 705(a)(2)(B)
     of the Code or treated as Section 705(a)(2)(B) expenditures under Treasury
     Regulation Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into
     account in computing Loss, will be considered an item of Loss;

          (ii) loss resulting from any disposition of any assets of the Company
     with respect to which gain or loss is recognized for federal income tax
     purposes will be computed by reference to the Book Value of such asset,
     notwithstanding that the adjusted tax basis of such asset may differ from
     its Book Value;

          (iii) in lieu of depreciation, amortization and other cost recovery
     deductions taken into account in computing taxable income or loss, there
     will be taken into account depreciation, amortization and other cost
     recovery deductions for the Taxable Year or other period as determined in
     accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(g);

          (iv) any items of deduction and loss allocated pursuant to Section 4.4
     hereof shall not be considered in determining Loss; and

          (v) any decrease to Capital Accounts as a result of any adjustment to
     the Book Value of Company assets pursuant to Treasury Regulation Section
     1.704-1(b)(2)(iv)(f) shall constitute an item of Loss.

     "Management Agreement" means that the Management Agreement, dated as of the
date hereof, by and among the Company and the Initial Unitholders, as the same
may be amended from time to time pursuant to the terms thereof.

     "Manager" means a Person duly elected to the Board who, for purposes of the
Delaware Act, will be deemed a "manager" (as defined in the Delaware Act) but
will be subject to the rights, obligations, limitations and duties set forth in
this Operating Agreement.

     "Metaldyne" means Metaldyne Corporation, a Delaware corporation, and any
successor.

     "Metaldyne Call Option" has the meaning set forth in Section 15.1(a).

     "Metaldyne Call Option Closing" has the meaning set forth in Section
15.1(d)(iv).

<PAGE>
                                      -9-

     "Metaldyne Call Option Notice" has the meaning set forth in Section
15.1(d)(i).

     "Metaldyne Call Option Notice Date" has the meaning set forth in Section
15.1(d)(i).

     "Metaldyne Material Adverse Change" means a change (or historical
circumstance or event resulting in a prospective change) that is materially
adverse with respect to the business, operations, assets, liabilities, results
of operations, cash flows or financial condition of Metaldyne and its
Subsidiaries, taken as a whole; provided, however, that any change (or
historical circumstance or event resulting in a prospective change) that is
generally applicable to (i) the industries and markets in which Metaldyne and
its Subsidiaries operate their respective businesses, (ii) the United States or
global economy or (iii) the United States securities markets shall be excluded
from the determination of Metaldyne Material Adverse Change; and provided,
further, that any change (or historical circumstance or event resulting in a
prospective change) resulting from or arising out of the exercise or the
consummation of the Metaldyne Call Option shall also be excluded from the
determination of a Metaldyne Material Adverse Change.

     "Metaldyne Material Adverse Effect" means an effect (or historical
circumstance or event involving a prospective effect) that is materially adverse
with respect to the business, operations, assets, liabilities, results of
operations, cash flows or financial condition of Metaldyne and its Subsidiaries,
taken as a whole; provided, however, that any effect (or circumstance or event
involving a prospective effect) that is generally applicable to (i) the
industries and markets in which Metaldyne and its Subsidiaries operate their
respective businesses, (ii) the United States or global economy or (iii) the
United States securities markets shall be excluded from the determination of
Metaldyne Material Adverse Effect; and provided, further, that any effect (or
historical circumstance or event resulting in a prospective effect) resulting
from or arising out of the exercise or the consummation of the Metaldyne Call
Option shall also be excluded from the determination of a Metaldyne Material
Adverse Effect.

     "Metaldyne Put Option" has the meaning set forth in Section 15.2(a).

     "Metaldyne Put Option Closing" has the meaning set forth in Section
15.2(d)(i).

     "Minimum Gain" means the partnership minimum gain determined pursuant to
Treasury Regulation Section 1.704-2(d).

     "Net Loss" means, for any period, the excess of items of Loss over items of
Profit, if applicable, for such period determined without regard to any items of
Profit or Loss allocated pursuant to Section 4.3.

     "Net Profit" means, for any period, the excess of items of Profit over
items of Loss, if applicable, for such period determined without regard to any
items of Profit or Loss allocated pursuant to Section 4.3.

     "Nonrecourse Deductions" has the meaning set forth in Treasury Regulation
Section 1.704-2.

     "Notes" has the meaning set forth in Section 15.1(d)(v)(A)(3).

<PAGE>
                                      -10-

     "Officers" means each person designated as an officer of the Company to
whom authority and duties have been delegated pursuant to Section 5.5, subject
to any resolution of the Board appointing such person as an officer or relating
to such appointment.

     "Ongoing Financial Statements" has the meaning set forth in Section 8.3(a).

     "Operating Agreement" means this Amended and Restated Operating Agreement,
as amended or modified from time to time in accordance with the terms hereof.

     "Operating Budget and Capital Plan" means the operating budget and capital
plan of the Company attached hereto as Exhibit I.

     "Permitted Transferee" means with respect to any Unitholder, (A) any
wholly-owned Subsidiary of such Unitholder, (B) any other Unitholder or (C) any
Permitted Transferee of any other Unitholder.

     "Person" means any individual, partnership, corporation, limited liability
company, association, joint stock company, trust, joint venture, unincorporated
organization, firm, proprietorship or any other business entity or a
Governmental Authority.

     "Proceeding" has the meaning set forth in Section 7.3.

     "Profit" means, for each Taxable Year or other period, an amount equal to
the Company's taxable income and gain for such Taxable Year or other period,
determined in accordance with Section 703(a) of the Code (including all items of
income and gain required to be stated separately under Section 703(a)(1) of the
Code), with the following adjustments:

          (i) any income of the Company that is exempt from federal income tax
     and not otherwise taken into account in computing Profit or Loss will be
     considered an item of profit;

          (ii) gain resulting from any disposition of any assets of the Company
     with respect to which gain or loss is recognized for federal income tax
     purposes will be computed by reference to the Book Value of such property,
     notwithstanding that the adjusted tax basis of such property may differ
     from its Book Value;

          (iii) any items allocated pursuant to Section 4.4 hereof shall not be
     considered in determining Profit; and

          (iv) any increase to Capital Accounts as a result of any adjustment to
     the Book Value of Company assets pursuant to Treasury Regulation Section
     1.704-1(b)(2)(iv)(f) shall constitute an item of Profit.

     "Qualified Collective Bargaining Agreement Date" means the first date on
which (i) an International Qualified Collective Bargaining Agreement has been
duly ratified voluntarily, without arbitration or court order, by the UAW, (ii)
all Local Qualified Collective Bargaining Agreements have been duly ratified
voluntarily, without arbitration or court order, by those individuals to whom

<PAGE>
                                      -11-

Metaldyne has made a conditional offer of employment at the Facility and (iii)
legally enforceable and binding Leased Employees Qualified Collective Bargaining
Agreements have been duly executed.

     "Relief Letter" has the meaning set forth in Section 8.3(a).

     "Regulatory Allocations" has the meaning set forth in Section 4.3(f).

     "Regulatory Challenge" has the meaning set forth in Section 15.1(d)(iii).

     "Related Agreement" means any contract, lease, agreement, instrument or
other document that is or is to be entered into on or prior to the date hereof
pursuant to, or in connection with, this Operating Agreement, including, without
limitation, the Formation Agreement, the Employee Leasing Agreement, the Supply
Agreement, the Management Agreement, the Securities Purchase Agreement, the
Investor Rights Agreement, the Indenture and the Transition Services Agreement.

     "SEC" means the U.S. Securities and Exchange Commission.

     "Securities Act" means the Securities Act of 1933, as amended, and
applicable rules and regulations promulgated thereunder, and any successor to
such statute, rules or regulations.

     "Securities Purchase Agreement" means the Securities Purchase Agreement, to
be dated as of the date of the Metaldyne Call Option Closing, by and among
Metaldyne and the Class B Unitholders who receive Series A-1 Preferred Stock or
Senior Subordinated Notes at the Metaldyne Call Option Closing, substantially in
the form of Exhibit C.

     "Senior Subordinated Notes" means the $31,746,000 aggregate principal
amount of Metaldyne's 10% Senior Subordinates Notes, in the form required by the
Indenture.

     "Senior Subordinated Notes Registration Rights Agreement" means the
Registration Rights Agreement, to be dated as of the date of the Metaldyne Call
Option Closing, by and among Metaldyne and Class B Unitholders who receive
Senior Subordinated Notes at the Metaldyne Call Option Closing, having
substantially the terms set forth on Exhibit E and to be in a form mutually
agreed by DaimlerChrysler and Metaldyne prior to the Closing Date (as defined in
the Formation Agreement).

     "Series A-1 Preferred Stock" means Series A-1 Preferred Stock of Metaldyne
having the terms set forth in the Certificate of Designations.

     "Series A-1 Preferred Stock Investor Rights Agreement" means the Investor
Rights Agreement, to be dated as of the date of the Metaldyne Call Option
Closing, by and among Metaldyne and the Class B Unitholders who receive Series
A-1 Preferred Stock at the Metaldyne Call Option Closing, having substantially
the terms set forth on Exhibit D and to be in a form mutually agreed by
DaimlerChrysler and Metaldyne prior to the Closing Date (as defined in the
Formation Agreement).

     "Series A-2 Preferred Stock" means Series A-2 Preferred Stock of Metaldyne
having the terms set forth in the Certificate of Designations.

<PAGE>
                                      -12-

     "Shares" has the meaning set forth in Section 15.1(d)(v)(A)(4).

     "Subsidiary" means, with respect to any Person: (i) any other Person of
which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person (or a combination thereof); and (ii) any partnership
or limited liability company (a) the sole general partner or member or the
managing general partner or member of which is such Person or a Subsidiary of
such Person or (b) the only general partners or members of which are such Person
or one or more Subsidiaries of such Person (or any combination thereof).

     "Substituted Unitholder" means a Person that is admitted as a Unitholder to
the Company pursuant to Section 11.1.

     "Supply Agreement" means the Supply Agreement, dated as of the date hereof,
by and between the Company and DaimlerChrysler.

     "Taxes" shall mean all taxes, charges, fees, duties, levies or other
assessments related to the Business, including income, gross receipts, net
proceeds, ad valorem, turnover, real and personal property (tangible and
intangible), sales, use, franchise, excise, value added, stamp, leasing, lease,
user, transfer, fuel, excess profits, occupational, interest equalization,
windfall profits, severance, employee's income withholding, other withholding,
unemployment and Social Security taxes, which are imposed by any Governmental
Authority, including any interest, penalties or additions to tax attributable
thereto.

     "Tax Distribution" means a Distribution made pursuant to Section 4.1(b).

     "Tax Matters Partner" has the meaning set forth in Section 9.3.

     "Taxable Year" means the year of the Company for federal income tax
purposes, which shall be the Company's Fiscal Year unless the Board determines
otherwise in compliance with applicable Laws.

     "Transaction Documents" means the Formation Agreement, the Employee Leasing
Agreement, the Supply Agreement, the Management Agreement, this Operating
Agreement, the Securities Purchase Agreement, the Investor Rights Agreement, the
Indenture, the Transition Services Agreement and any other Related Agreements.

     "Transfer" means any sale, transfer, assignment, pledge, mortgage,
exchange, hypothecation, grant of a security interest or other direct or
indirect disposition or encumbrance of an interest (including, without
limitation, by operation of applicable Law) or the acts thereof. The terms
"Transferee," "Transferred" and other forms of the word "Transfer" shall have
correlative meanings.

     "Transition Services Agreement" means the Transition Services Agreement, to
be dated as of the date of the Metaldyne Call Option Closing, by and between the
Company and DaimlerChrysler, substantially in the form of Exhibit H.

<PAGE>
                                      -13-

     "Treasury Regulations" means the income tax regulations promulgated by the
U.S. Treasury Department pursuant to the Code and effective as of the date
hereof. Such term shall, at the Board's sole discretion, be deemed to include
any future amendments to such regulations and any corresponding provisions of
succeeding regulations (whether or not such amendments and corresponding
provisions are mandatory or discretionary; provided, however, that if they are
discretionary, the term "Treasury Regulations" shall not include them if
including them would have a material adverse effect on any Unitholder).

     "UAW" means International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America.

     "Unit" means an Interest of a Unitholder or an Assignee representing a
fractional part of the Interests of all Unitholders and Assignees and shall
include Class A Units, Class B Units and any Additional Units; provided that any
class or series of Units issued shall have relative rights, powers and duties
set forth in this Operating Agreement and the Interest represented by such class
or series of Units shall be determined in accordance with such relative rights,
powers and duties set forth in this Operating Agreement.

     "Unitholder" means any Initial Unitholder and any Person admitted to the
Company as an Additional Unitholder or Substituted Unitholder, in each case for
so long as such Person is shown on the Company's books and records as the owner
of one or more Units.

     "Unitholder Group" has the meaning set forth in Section 6.5.

     "Unitholder Minimum Gain" means the Company's "partner nonrecourse debt
minimum gain" as defined in Treasury Regulation Section 1.704-2(i)(2).

     "Unitholder Nonrecourse Deductions" means "partner nonrecourse deductions"
as defined in Treasury Regulation Section 1.704-2(i)(2).

     "Valuation Date" has the meaning set forth in Section 4.5.

     "Vice President Notice" has the meaning set forth in Section 18.19(a).

     SECTION 1.2 Rules of Construction.

     (a) Words used herein, regardless of the number and gender used, shall be
deemed and construed to include any other number, singular or plural, and any
other gender, masculine, feminine or neuter, as the context requires, and, as
used herein, unless the context requires otherwise, the words "hereof," "herein"
and "hereunder" and words of similar import shall refer to this Operating
Agreement as a whole and not to any particular provision of this Operating
Agreement.

     (b) A reference to any statute or statutory provision shall be construed as
a reference to the same as it may have been, or may from time to time be,
amended, modified or reenacted.

     (c) The terms "dollars" and "$" shall mean United States dollars.

<PAGE>
                                      -14-

     (d) The term "including" shall be deemed to mean "including without
limitation".

     (e) Article and section headings used in this Operating Agreement are for
convenience of reference only and shall not affect the interpretation of this
Operating Agreement.

     (f) This Operating Agreement is among financially sophisticated and
knowledgeable parties and is entered into by the parties in reliance upon the
economic and legal bargains contained herein and shall be interpreted and
construed in a fair and impartial manner without regard to such factors as the
party who prepared, or caused the preparation of, this Operating Agreement or
the relative bargaining power of the parties.

                                   ARTICLE II

                             ORGANIZATIONAL MATTERS

     SECTION 2.1 Formation. The Company has been organized as a Delaware limited
liability company by the filing with the Secretary of State of the State of
Delaware of the Certificate under and pursuant to the Delaware Act and shall be
continued in accordance with this Operating Agreement. The rights and
liabilities of the Unitholders shall be as provided in the Delaware Act, except
as otherwise provided in this Operating Agreement.

     SECTION 2.2 The Certificate, Etc. The Certificate was filed with the
Secretary of State of the State of Delaware on December 6, 2002. The Unitholders
hereby agree to execute, file and record all such other certificates and
documents, including amendments to the Certificate, and to do such other acts as
may be reasonably necessary to comply with all requirements for the formation,
continuation and operation of a limited liability company, the ownership of
property, and the conduct of business under the Laws of the State of Delaware
and any other jurisdiction in which the Company may own property or conduct
business.

     SECTION 2.3 Name. The name of the Company shall be "NC-M Chassis Systems,
LLC". The Board in its sole discretion may change the name of the Company at any
time and from time to time. Notification of any such change shall be given to
all Unitholders. The Company's business may be conducted under its name and/or
any other name or names deemed advisable by the Board.

     SECTION 2.4 Purpose.

     (a) General. Except as may be otherwise approved by the Board, the purpose
and business of the Company shall be to engage in any lawful act or activity
which may be conducted by a limited liability company formed pursuant to the
Delaware Act and engaging in all activities, contracts and agreements related to
or incidental to the above stated purposes as the Board may determine to be
appropriate from time to time. Notwithstanding anything herein to the contrary,
nothing set forth herein shall be construed as authorizing the Company to
possess any purpose or power, or to do any act or thing, forbidden by applicable
Law to a limited liability company organized under the Laws of the State of
Delaware.

<PAGE>
                                      -15-

     (b) Board of Managers. Subject to the provisions of this Operating
Agreement, (i) the Company may, with the approval of the Board when required
herein, enter into and perform under any and all documents, agreements and
instruments, all without any further act, vote or approval of any Unitholder;
and (ii) the Board may authorize any Person (including any Unitholder or
Officer) to enter into and perform under any document, agreement or instrument
on behalf of the Company.

     SECTION 2.5 Powers of the Company. Subject to the provisions of this
Operating Agreement (including, without limitation, Sections 3.2(j) and 5.3(g)),
the Company shall have the power and authority to take any and all actions
necessary, appropriate, proper, advisable, convenient or incidental to or for
the furtherance of the purposes set forth in Section 2.4, including, without
limitation, the power to do any and all of the following:

          (a) to conduct its business, carry on its operations and have and
     exercise the powers granted to a limited liability company by the Delaware
     Act in any state, territory, district or possession of the United States,
     or in any foreign country that may be necessary, convenient or incidental
     to the accomplishment of the purposes of the Company;

          (b) to acquire by purchase, lease, contribution of property or
     otherwise, own, hold, operate, maintain, finance, refinance, improve,
     lease, sell, convey, mortgage, transfer, demolish or dispose of any real or
     personal property that may be necessary, convenient or incidental to the
     accomplishment of the purposes of the Company;

          (c) to enter into, perform and carry out contracts of any kind,
     including, without limitation, contracts with any Unitholder or any
     Affiliate thereof, or any agent of the Company necessary to, in connection
     with, convenient to or incidental to the accomplishment of the purposes of
     the Company;

          (d) to purchase, take, receive, subscribe for or otherwise acquire,
     own, hold, vote, use, employ, sell, mortgage, lend, pledge, or otherwise
     dispose of, and otherwise use and deal in and with, shares or other
     interests in or obligations of domestic or foreign corporations,
     associations, general or limited partnerships (including the power to be
     admitted as a partner thereof and to exercise the rights and perform the
     duties created thereby), trusts, limited liability companies (including the
     power to be admitted as a Unitholder or appointed as a manager thereof and
     to exercise the rights and perform the duties created thereby) or
     individuals or direct or indirect obligations of the United States of
     America or any other nation or of any government, state, territory,
     governmental district or municipality or of any instrumentality of any of
     them;

          (e) to lend money for any proper purpose, to invest and reinvest its
     funds and to take and hold real and personal property for the payment of
     funds so loaned or invested;

          (f) to sue and be sued, complain and defend, and participate in
     administrative or other proceedings in its name;

<PAGE>
                                      -16-

          (g) to appoint employees, managers, contractors, advisors, attorneys,
     consultants and agents of the Company and define their duties and fix their
     compensation;

          (h) to indemnify any Person in accordance with the Delaware Act and to
     obtain any and all types of insurance;

          (i) to cease its activities and cancel its Certificate;

          (j) to negotiate, enter into, renegotiate, extend, renew, terminate,
     modify, amend, waive, execute, acknowledge or take any other action with
     respect to any lease, contract or security agreement in respect of any
     assets of the Company;

          (k) to borrow money and issue evidences of Indebtedness and guaranty
     indebtedness (whether of the Company or any of its Subsidiaries), and to
     secure the same by a mortgage, pledge or other Lien on the assets of the
     Company;

          (l) to pay, collect, compromise, litigate, arbitrate or otherwise
     adjust or settle any and all other claims or demands of or against the
     Company or to hold such proceeds against the payment of contingent
     liabilities;

          (m) to act as a trustee, executor, nominee, bailee, director, officer,
     agent or in some other fiduciary capacity for any Person and exercise all
     the powers, duties, rights and responsibilities associated therewith;

          (n) to take any and all actions necessary or appropriate as trustee,
     executor, nominee, bailee, director, officer, agent or other fiduciary,
     including the granting or approval of waivers, consents or amendments of
     rights or powers relating thereto and the execution of appropriate
     documents to evidence such waivers, consents or amendments;

          (o) to invest any funds of the Company pending distribution or payment
     of the same pursuant to the provisions of this Operating Agreement;

          (p) to prepay in whole or in part, refinance, recast, increase, modify
     or extend any Indebtedness of the Company and, in connection therewith,
     execute any extensions, renewals or modifications of any mortgage or
     security agreement securing such Indebtedness; and

          (q) to make, execute, acknowledge and file any and all documents or
     instruments necessary, convenient or incidental to the accomplishment of
     the purposes of the Company.

     SECTION 2.6 Representations and Warranties of the Company. As of the date
hereof, the Company by its execution of this Operating Agreement represents and
warrants to each Initial Unitholder and acknowledges that:

<PAGE>
                                      -17-

          (a) Organization. The Company (i) is duly organized, validly existing
     and in good standing under the Laws of the State of Delaware and (ii) has
     full power and authority to enter into and perform its obligations under
     this Operating Agreement.

          (b) Authority; Enforceability. The execution and delivery by the
     Company of this Operating Agreement, and its performance and consummation
     of the transactions contemplated hereby, have been duly authorized by all
     requisite action. This Operating Agreement constitutes a valid and legally
     binding obligation of the Company, enforceable against the Company in
     accordance with its terms, except as the same may be limited by applicable
     bankruptcy, insolvency, moratorium, reorganization, fraudulent transfer or
     other similar Laws of general applicability relating to or affecting
     creditors' rights from time to time in effect and general principles of
     equity, including concepts of materiality, reasonableness, good faith and
     fair dealing, regardless of whether in a proceeding in equity or at law.

          (c) Consents and Approvals. All authorizations, approvals and
     consents, if any, required to be obtained from, and all registrations,
     declarations and filings, if any, required to be made with, all
     Governmental Authorities to permit the Company to issue the Units and to
     execute and deliver, and to perform its obligations under, and to
     consummate the transactions contemplated by, this Operating Agreement have
     been obtained or made, as the case may be, and all such authorizations,
     approvals, consents, registrations, declarations and filings are in full
     force and effect.

          (d) No Violations. Except as otherwise may be required by this
     Operating Agreement, neither the issuance of the Units by the Company, the
     execution or delivery by the Company of this Operating Agreement, the
     performance by the Company of its obligations hereunder, nor the
     consummation by the Company of the transactions contemplated hereby, will
     (i) conflict with, violate or result in a breach of, any of the terms,
     conditions or provisions of any Law applicable to the Company, (ii)
     conflict with, violate or result in a breach of, or constitute a default
     under any of the terms, conditions or provisions of the Certificate, (iii)
     conflict with, violate or result in a material breach of, or constitute a
     material default under, any of the terms, conditions or provisions of any
     material loan agreement, indenture, trust deed or other agreement or
     instrument to which the Company is a party or by which it is bound, or (iv)
     result in the creation or imposition of any material Lien upon any material
     property or assets of the Company.

     SECTION 2.7 Foreign Qualification. The Board shall cause the Company to
comply, to the extent procedures are available and those matters are reasonably
within the control of the Board, with all requirements necessary to qualify the
Company as a foreign limited liability company in each jurisdiction other than
the State of Delaware where such qualification is necessary in order to conduct
the business of the Company. At the request of the Board or any Officer, each
Unitholder shall execute, acknowledge, swear to and deliver all certificates and
other instruments conforming with this Operating Agreement that are necessary or
appropriate to qualify, continue and terminate the Company as a foreign limited
liability company in all such jurisdictions in which the Company may or does
conduct business.

<PAGE>
                                      -18-

     SECTION 2.8 Principal Office; Registered Office. The principal office of
the Company shall be located at 1817 I Avenue, New Castle, Indiana 47362 or at
such other place as the Board may from time to time designate, and all business
and activities of the Company shall be deemed to have occurred at its principal
office. The Company may maintain offices at such other place or places as the
Board deems advisable. Notification of any such change shall be given to all
Unitholders. The registered office of the Company required by the Delaware Act
to be maintained in the State of Delaware shall be the office of the initial
registered agent named in the Certificate or such other office (which need not
be a place of business of the Company) as the Board may designate from time to
time in the manner provided by applicable Law. The registered agent of the
Company for service of process in the State of Delaware shall be the initial
registered agent named in the Certificate or such other Person or Persons as the
Board may designate from time to time in the manner provided by applicable Law.

     SECTION 2.9 Term. The term of the Company commenced upon the filing of the
Certificate in accordance with the Delaware Act and shall continue in existence
until termination and dissolution thereof in accordance with the provisions of
Article XIII.

     SECTION 2.10 No State-Law Partnership. The Unitholders intend that the
Company not be a partnership (including, without limitation, a limited
partnership), and that no Unitholder be a partner of any other Unitholder by
virtue of this Operating Agreement (except for tax purposes as set forth in the
next succeeding sentence of this Section 2.10), and neither this Operating
Agreement nor any other document entered into by the Company or any Unitholder
relating to the subject matter hereof shall be construed to suggest otherwise.
The Unitholders intend that the Company shall be treated as a partnership for
federal and, if applicable, state or local income tax purposes, and that each
Unitholder and the Company shall file all tax returns and shall otherwise take
all tax and financial reporting positions in a manner consistent with such
treatment. Without the vote of the holders of at least 66 2/3% of the
outstanding Class A Units, the Company shall not make an election to be treated
as a corporation for federal income tax purposes pursuant to Treasury Regulation
Section 301.7701-3 (or any successor regulation or provision) and, if
applicable, state and local income tax purposes.

                                   ARTICLE III

                             UNITS; CAPITAL ACCOUNTS

     SECTION 3.1 Unitholders.

     (a) Generally. The name, address, number of Units of each class or series,
Capital Contributions and Capital Account of each Unitholder are listed on
Schedule A. Any reference in this Operating Agreement to Schedule A shall be
deemed to be a reference to Schedule A as amended and in effect from time to
time. The Company and each Unitholder shall file all tax returns, including any
schedules thereto, in a manner consistent with the Capital Accounts. Each Person
listed on Schedule A, upon (i) his, her or its execution of this Operating
Agreement or a counterpart thereto and (ii) receipt (or deemed receipt) by the
Company of such Person's Capital Contribution as set forth on Schedule A, is
hereby admitted to the Company as a Unitholder of the Company. Each Unitholder's
interest in the Company, including such Unitholder's Interest in Profits, Losses
and Distributions of

<PAGE>
                                      -19-

the Company and the right to vote on certain matters as provided in this
Operating Agreement, shall be represented by the Units owned by such Unitholder.
The ownership of Units shall entitle each Unitholder to allocations of Profits,
Losses and Distributions as set forth in Article IV hereof. The Board may in its
discretion issue certificates to the Unitholders representing the Units held by
each Unitholder.

     (b) Representations and Warranties of Unitholders. Each Initial Unitholder,
as of the date hereof by its execution of this Operating Agreement, each other
Unitholder, as of the date of and by its acceptance of any Units, represents and
warrants to the Company and acknowledges that:

          (i) Organization. Such Unitholder is duly organized, validly existing
     and in good standing under the Laws of its jurisdiction of organization and
     has full power and authority to enter into and perform its obligations
     under this Operating Agreement;

          (ii) Authority; Enforceability. The execution and delivery by such
     Unitholder of this Operating Agreement, and its performance and
     consummation of the transactions contemplated hereby, have been duly
     authorized by all requisite action. This Operating Agreement constitutes a
     valid and legally binding obligation of such Unitholder, enforceable
     against such Unitholder in accordance with its terms, except as the same
     may be limited by applicable bankruptcy, insolvency, moratorium,
     reorganization, fraudulent transfer or other similar Laws of general
     applicability relating to or affecting creditors' rights from time to time
     in effect and general principles of equity, including concepts of
     materiality, reasonableness, good faith and fair dealing, regardless of
     whether in a proceeding in equity or at law.

          (iii) Consents and Approvals. All authorizations, approvals and
     consents, if any, required to be obtained from, and all registrations,
     declarations and filings, if any, required to be made with, all
     Governmental Authorities to permit such Unitholder to acquire its Units and
     to execute and deliver, and to perform its obligations under, and to
     consummate the transactions contemplated by, this Operating Agreement have
     been obtained or made, as the case may be, and all such authorizations,
     approvals, consents, registrations, declarations and filings are in full
     force and effect.

          (iv) No Violations. Except as otherwise may be required by this
     Operating Agreement, neither the acquisition by such Unitholder of the
     Units being acquired by it, the execution or delivery by such Unitholder of
     this Operating Agreement, the performance by such Unitholder of its
     obligations hereunder, nor the consummation by such Unitholder of the
     transactions contemplated hereby, will (A) conflict with, violate or result
     in a breach of any of the terms, conditions or provisions of any Law
     applicable to such Unitholder, (B) conflict with, violate or result in a
     breach of, or constitute a default under, any of the terms, conditions or
     provisions of its charter documents, (C) conflict with, violate or result
     in a material breach of, or constitute a material default under, any of the
     terms, conditions or provisions of any material loan agreement, indenture,
     trust deed or other agreement or instrument to which such Unitholder is a
     party or by which it is bound, or (D) result in the creation or imposition
     of any material Lien upon any material property or assets of such
     Unitholder.

<PAGE>
                                      -20-

     (c) No Liability of Unitholders.

          (i) Except as otherwise set forth in this Operating Agreement or
     required by applicable Law, no Unitholder shall have any personal liability
     whatsoever in such Unitholder's capacity as a Unitholder, whether to the
     Company, to any of the other Unitholders, to the creditors of the Company
     or to any other third party, for the debts, liabilities, commitments or any
     other obligations of the Company or for any losses of the Company. Each
     Unitholder shall be liable only to make such Unitholder's Capital
     Contribution to the Company, if any, and the other payments provided
     expressly herein.

          (ii) In accordance with the Delaware Act and the Laws of the State of
     Delaware, a Unitholder may, under certain circumstances, be required to
     return amounts previously distributed to such Unitholder. It is the intent
     of the Unitholders that no distribution to any Unitholder pursuant to
     Article IV shall be deemed a return of money or other property paid or
     distributed in violation of the Delaware Act. The payment of any such money
     or distribution of any such property to a Unitholder shall be deemed to be
     a compromise within the meaning of the Delaware Act, and the Unitholder
     receiving any such money or property shall not be required to return to any
     Person any such money or property. However, if any court of competent
     jurisdiction holds that, notwithstanding the provisions of this Operating
     Agreement, any Unitholder is obligated to make any such payment, such
     obligation shall be the obligation of such Unitholder and not of any other
     Unitholder.

     SECTION 3.2 Unitholder Meetings.

     (a) Voting of Unitholders.

          (i) The Class A Unitholders shall be entitled to vote on all matters
     submitted to the Unitholders for a vote, with each Class A Unit entitled to
     one vote. Except as otherwise required by applicable Law, or as provided
     below, the Class B Unitholders shall not be entitled to vote on any matters
     submitted to the Unitholders for a vote, except that the Class B
     Unitholders shall be entitled to vote separately as a class, with each
     Class B Unit entitled to one vote, on each of the following matters:

               (A) any action (including, without limitation, any repeal,
          amendment or modification to the Company's Certificate or this
          Operating Agreement) if such action materially and adversely changes
          any rights, privileges and preferences of the Class B Unitholders;

               (B) any increase in the number of Class B Units; or

               (C) the creation of any new class or series of Units, or
          reclassification of any Units on parity with or having a preference or
          priority over the Class B Units as to voting, dividend, or liquidation
          rights.

          (ii) A quorum shall be present at a meeting of Unitholders if the
     holders of a majority of the outstanding Class A Units are present at the
     meeting in person or by proxy and, if the Class B Unitholders are entitled
     to vote separately as a class on any matter to be decided at such meeting,
     if

<PAGE>
                                      -21-

     the holders of a majority of the outstanding Class B Units are present at
     the meeting of the Unitholders in person or by proxy.

          (iii) Except as otherwise provided for in this Operating Agreement
     (including, without limitation, in Section 3.2(j)) or required by
     applicable Law, all matters to be voted on by the Unitholders shall require
     the vote of the holders of a majority of the outstanding Class A Units
     present at a duly held meeting of Unitholders at which a quorum is present,
     and if the Class B Unitholders are entitled to vote separately as a class
     on any matter to be decided at a meeting, all matters to be voted on by the
     holders of Class B Units shall require the vote of the holders of a
     majority of the outstanding Class B Units present at a duly held meeting of
     the Unitholders at which a quorum of the holders of Class B Units is
     present. With respect to any matter, other than a matter for which the vote
     of the holders of a specified portion of all Class A Unitholders is
     expressly required by this Operating Agreement or applicable Law, the vote
     of the holders of a majority of the outstanding Class A Units present at a
     duly held meeting of Unitholders at which a quorum is present or, if the
     Class B Unitholders are entitled to vote separately as a class on any
     matter to be decided at a meeting, the vote of the holders of a majority of
     the outstanding Class B Units present at a duly held meeting of the
     Unitholders at which a quorum of the holders of Class B Units is present
     shall be the act of the Unitholders.

     (b) Place. All meetings of the Unitholders shall be held at the principal
place of business of the Company or at such other place within or without the
State of Delaware as shall be specified or fixed in the notices or waivers of
notice thereof; provided, however, that any or all Unitholders participating in
any such meeting by means of conference telephone or similar communications
equipment pursuant to Section 3.3(d) shall be deemed present at the meeting.

     (c) Adjournment. Notwithstanding the other provisions of the Certificate or
this Operating Agreement, the chairman of the meeting or the holders of 66 2/3%
of the outstanding Class A Units present at the meeting shall have the power to
adjourn such meeting from time to time, without any notice other than
announcement at the meeting of the time and place of the holding of the
adjourned meeting. If such meeting is adjourned by the Class A Unitholders, such
time and place shall be determined by a vote of the holders of 66 2/3% of the
outstanding Class A Units present at such meeting. Upon the resumption of such
adjourned meeting, any business may be transacted that might have been
transacted at the meeting as originally called.

     (d) Annual Meeting. An annual meeting of Unitholders, for the election of
the Managers and for the transaction of such other business as may properly come
before the meeting, shall be held at such place, within or without the State of
Delaware, on such date and at such time as the Board shall fix and set forth in
the notice of the meeting, which date shall be within thirteen (13) months
subsequent to the date of formation of the Company, in the case of the first
annual meeting of Unitholders, or the last annual meeting of Unitholders, in all
other cases.

     (e) Special Meetings. Special meetings of the Unitholders for any proper
purpose or purposes may be called at any time by the Board or the holders of 33
1/3% of the outstanding Class A Units or, if any matter arises as to which the
holders of the Class B Units are entitled to vote, the holders of 33 1/3% of the
outstanding Class B Units. If not otherwise stated in or fixed in accordance

<PAGE>
                                      -22-

with the remaining provisions hereof, the record date for determining Class A
Unitholders or Class B Unitholders, as the case may be, entitled to call a
special meeting is the date any Class A Unitholder or Class B Unitholder, as the
case may be, first signs the notice of that meeting. Only business within the
purpose or purposes described in the notice (or waiver thereof) required by this
Operating Agreement may be conducted at a special meeting of Unitholders.

     (f) Notice. A written or printed notice stating the place, day and hour of
the meeting and, in the case of a special meeting, the purpose or purposes for
which the meeting is called, shall be delivered not less than three (3) Business
Days or more than thirty (30) days before the date of the meeting, either
personally, by mail or by facsimile, by or at the direction of the Board or the
Class A Unitholders or Class B Unitholders, as the case may be, calling the
meeting to each Unitholder. If mailed, any such notice shall be deemed to be
delivered when deposited in the United States mail, addressed to each Unitholder
at its address provided for in the Company's books and records, or to such other
address or to the attention of such other Person as the recipient party has
specified by prior written notice to the sending party. Any Unitholder may waive
any such notice at any time in writing.

     (g) Record Date. The date on which notice of a meeting of Unitholders is
mailed or the date on which the resolution of the Board declaring a distribution
is adopted, as the case may be, shall be the record date for the determination
of the Unitholders entitled to notice of or to vote at such meeting (including
any adjournment thereof) or the Unitholders entitled to receive such
distribution.

     (h) Proxies. A Unitholder may vote either in person or by proxy executed in
writing by such Unitholder. A telegram, telex, cablegram, electronic delivery or
similar transmission by such Unitholder, or a photographic, photostatic,
facsimile or similar reproduction of a writing executed by such Unitholder,
shall be treated as an execution in writing for purposes of this Section 3.2(h).
Proxies for use at any meeting of Unitholders or in connection with the taking
of any action by written consent pursuant to Section 3.3 shall be filed with the
secretary of the Company, before or at the time of the meeting or execution of
the written consent, as the case may be. All proxies shall be received and taken
charge of and all ballots shall be received and canvassed by the secretary of
the Company, who shall decide all questions concerning the qualification of
voters, the validity of the proxies and the acceptance or rejection of votes,
unless an inspector or inspectors shall have been appointed by the chairman of
the meeting, in which event such inspector or inspectors shall decide all such
questions. No proxy shall be valid after eleven (11) months from the date of its
execution unless otherwise provided in the proxy. A proxy shall be revocable
unless the proxy form conspicuously states that the proxy is irrevocable and the
proxy is coupled with an interest. Should a proxy designate two or more Persons
to act as proxies, unless that instrument shall provide to the contrary, a
majority of such Persons present at any meeting at which their powers thereunder
are to be exercised shall have and may exercise all the powers of voting or
giving consents thereby conferred, or if only one be present, then such powers
may be exercised by that one; provided that if an even number attend and a
majority do not agree on any particular issue, the Company shall not be required
to recognize such proxy with respect to such issue if such proxy does not
specify how the Units that are the subject of such proxy are to be voted with
respect to such issue.

     (i) Conduct of Unitholder Meetings. All meetings of the Unitholders shall
be presided over by the chairman of the meeting, who shall be one of the
Chairman or Vice Chairman (or a repre-

<PAGE>
                                      -23-

sentative thereof). The chairman of any meeting of Unitholders shall determine
the order of business and the procedure at the meeting, including such
regulation of the manner of voting and the conduct of discussion as seem to him
in order.

     (j) Actions Requiring Supermajority Unitholder Approval. Notwithstanding
any other provision of this Operating Agreement, in addition to any vote
required by applicable Law, the vote of the holders of at least 66 2/3% of the
outstanding Class A Units shall be required to authorize the Company to take any
of the actions set forth on Exhibit B (and such vote shall be required for the
Company to take any action in its capacity as holder of voting securities of any
of its Subsidiaries with respect to any substantially similar actions proposed
to be taken by or with respect to such Subsidiary). The Company shall take any
and all actions as may be necessary or desirable to ensure that each Subsidiary
of the Company, before taking any actions substantially similar to those set
forth on Exhibit B, must receive the consent of the Company in its capacity as
holder of voting securities of such Subsidiary.

     SECTION 3.3 Action of Unitholders by Written Consent or Telephone
Conference.

     (a) Written Consent in Lieu of Meeting. Any action required or permitted to
be taken at any annual or special meeting of Unitholders may be taken without a
meeting, without prior notice and without a vote, if a consent or consents in
writing, setting forth the action so taken, shall be signed by the Class A
Unitholders or Class B Unitholders, as applicable, holding not less than the
minimum percentage of Class A Units or Class B Units, as applicable, that would
be necessary to take such action at a meeting at which all Class A Unitholders
or Class B Unitholders, as applicable, entitled to vote on the action were
present and voted. Every written consent shall bear the date of signature of
each Class A Unitholder or Class B Unitholder, as applicable, who signs the
consent. No written consent shall be effective to take the action that is the
subject to the consent unless, within sixty (60) days after the date of the
earliest dated consent delivered to the Company in the manner required by this
Section 3.3(a), a consent or consents signed by the Class A Unitholders or Class
B Unitholders, as applicable, holding not less than the minimum percentage of
Class A Units or Class B Units, as applicable, that would be necessary to take
the action that is the subject of the consent are delivered to the Company by
delivery to its registered office, its principal place of business or the
secretary of the Company. Delivery shall be by hand or certified or registered
mail, return receipt requested. Delivery to the Company's principal place of
business shall be addressed to the secretary of the Company. A telegram, telex,
cablegram, electronic delivery or similar transmission by a Class A Unitholder
or Class B Unitholder, as applicable, or a photographic, photostatic, facsimile
or similar reproduction of a writing signed by a Class A Unitholder or Class B
Unitholder, as applicable, shall be regarded as signed by the Class A Unitholder
or Class B Unitholder, as applicable, for purposes of this Section 3.3(a).
Prompt notice of the taking of any action, including a statement of the action
taken, by the Unitholders without a meeting shall be given to each Unitholder at
its address provided for in the Company's books and records, or to such other
address or to the attention of such other Person as the recipient party has
specified by prior written notice to the sending party.

     (b) Record Date. The record date for determining Unitholders entitled to
consent to action in writing without a meeting shall be the first date on which
a signed written consent setting forth

<PAGE>
                                      -24-

the action taken or proposed to be taken is delivered to the Company in the
manner required by Section 3.3(a).

     (c) Filings. If any action by Unitholders is taken by written consent, any
certificate or documents filed with the Secretary of State of Delaware as a
result of the taking of the action shall state, in lieu of any statement
required by the Delaware Act concerning any vote of Unitholders, that written
consent has been given in accordance with the provisions of the Delaware Act and
that any written notice required by the Delaware Act has been given.

     (d) Telephone Conference. Unitholders may participate in and hold a meeting
by means of conference telephone or similar communications equipment by means of
which all Persons participating in the meeting can hear each other, and
participation in such meeting shall constitute attendance and presence in person
at such meeting, except where a Person participates in the meeting for the
express purpose of objecting to the transaction of any business on the ground
that the meeting is not lawfully called or convened.

     SECTION 3.4 Capital Accounts. A separate Capital Account will be maintained
for each Unitholder in accordance with Treasury Regulation Section
1.704-1(b)(2)(iv). Consistent therewith, the Capital Account of each Unitholder
will be determined and adjusted as follows:

     (a) Each Unitholder's Capital Account will be credited with:

          (i) any contributions of cash made by such Unitholder to the capital
     of the Company plus the Fair Market Value of any property contributed by
     such Unitholder to the capital of the Company (net of any liabilities to
     which such property is subject or which are assumed by the Company in
     connection with the contribution);

          (ii) the Unitholder's distributive share of Net Profit, Profit and
     items thereof; and

          (iii) any other increases required by Treasury Regulation Section
     1.704-1(b)(2)(iv).

     (b) Each Unitholder's Capital Account will be debited with:

          (i) any distributions of cash made from the Company to such Unitholder
     plus the Fair Market Value of any property distributed in kind to such
     Unitholder (net of any liabilities to which such property is subject or
     which are assumed by such Unitholder in connection with the distribution);

          (ii) the Unitholder's distributive share of Net Loss, Loss and items
     thereof; and

          (iii) any other decreases required by Treasury Regulation Section
     1.704-1(b)(2)(iv).

<PAGE>
                                      -25-

The provisions of this Section 3.4 relating to the maintenance of Capital
Accounts have been included in this Operating Agreement to comply with Section
704(b) of the Code and the Treasury Regulations promulgated thereunder and will
be interpreted and applied in a manner consistent with those provisions.

     SECTION 3.5 Negative Capital Accounts. No Unitholder shall be required to
pay to any other Unitholder or the Company any deficit or negative balance which
may exist from time to time in such Unitholder's Capital Account (including upon
and after dissolution of the Company).

     SECTION 3.6 No Withdrawal. No Person shall be entitled to withdraw any part
of such Person's Capital Contributions or Capital Account or to receive any
Distribution from the Company, except as expressly provided herein.

     SECTION 3.7 Certificates. The interest owned by each of the Unitholders
(denominated in Units) shall be evidenced by one or more certificates. Each
certificate shall be executed by the Secretary of the Company (or other
individual designated by the Board).

     SECTION 3.8 Register. The Company shall keep or cause to be kept a register
in which, subject to such regulations as the Board may adopt, the Company will
provide for the registration of Units and the registration of Transfers of
Units. Upon surrender for registration of Transfer of any Certificate, and
subject to the further provisions of Section 3.7 and this Section 3.8 and the
limitations on Transfer contained elsewhere in this Operating Agreement, the
Company will cause the execution, in the name of the registered holder or the
designated transferee, of one or more new Certificates evidencing the same
aggregate number of Units as did the Certificate surrendered or such other
number as is appropriate in the event such Transfer is pursuant to exercise of a
call option or put option pursuant to Article XV. Every Certificate surrendered
for registration of Transfer shall be duly endorsed, or be accompanied by a
written instrument of Transfer in form satisfactory to the Board, duly executed
by the registered holder thereof or such holder's authorized attorney.

     SECTION 3.9 New Certificates. The Company shall issue a new certificate in
place of any Certificate previously issued if the record holder of the
certificate (a) makes proof by affidavit, in form and substance satisfactory to
the Board, that a previously issued certificate has been lost, destroyed or
stolen, (b) requests the issuance of a new certificate before the Company has
received notice that the certificate has been acquired by a purchaser for value
in good faith and without notice of an adverse claim, (c) if requested by the
Board, delivers to the Company a bond, in form and substance satisfactory to the
Board, with such surety or sureties and with fixed or open liability as the
Board may direct, to indemnify the Company, as registrar, against any claim that
may be made on account of the alleged loss, destruction or theft of the
certificate, and (d) satisfies any other reasonable requirements imposed by the
Board.

     SECTION 3.10 Interest as a Security. A Unit in the Company evidenced by a
certificate shall constitute a security for all purposes of Article 8 of the
Uniform Commercial Code promulgated by the National Conference of Commissioners
on Uniform State Laws, as in effect in the State of Delaware or any other
applicable jurisdiction. The Laws of the State of Delaware shall constitute the
local law of the Company's jurisdiction in its capacity as the issuer of Units.

<PAGE>
                                      -26-

     SECTION 3.11 Restrictive Legend. In addition to any other legends required
by applicable Law, each certificate evidencing any Unit shall bear a legend
reflecting the restrictions on the Transfer of such Unit contained in this
Operating Agreement in substantially the following form:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
         AMENDED AND RESTATED OPERATING AGREEMENT OF NC-M CHASSIS SYSTEMS, LLC
         (THE "COMPANY"). A COPY OF SUCH AGREEMENT IS AVAILABLE FOR INSPECTION
         AT THE PRINCIPAL OFFICE OF THE COMPANY.

                                   ARTICLE IV

                   DISTRIBUTIONS; REDEMPTIONS AND ALLOCATIONS

     SECTION 4.1 Distributions.

     (a) Distributions Generally. Subject to compliance with the provisions of
this Operating Agreement (including, without limitation, Sections 3.2(j) and
5.3(g)) and Section 18-607 of the Delaware Act, except as otherwise set forth in
this Section 4.1, the Board may cause the Company to make Distributions at any
time or from time to time. All Distributions shall be made only in the following
order and priority:

          (i) FIRST, to the Class B Unitholders, up to an amount equal to the
     Class B Unreturned Capital as of the time of such Distribution, allocated
     pro rata among the Class B Unitholders based on the respective number of
     Class B Units owned by each Class B Unitholder, and no Distribution or any
     portion thereof may be made pursuant to Section 4.1(a)(ii) until the entire
     amount of Class B Unreturned Capital as of the time of such Distribution
     has been paid in full.

          (ii) THEREAFTER, to the Class A Unitholders, all remaining amounts,
     allocated pro rata among the Class A Unitholders based on the respective
     balances of the Capital Account of each Class A Unitholder.

     (b) Tax Distributions.

          (i) So long as the Company is treated as a partnership for federal,
     state or local income tax purposes the Company shall distribute to each
     Unitholder after the end of each Taxable Year (but no later than the date
     the Company files its federal income tax return), to the extent that funds
     are legally available therefor, an amount of cash which in the good faith
     judgment of the Board equals the excess, if any, of (A) the product of (x)
     the amount of taxable income allocable to such Unitholder in respect of the
     period beginning on the first day of such Taxable Year and ending at the
     close of such Taxable Year, multiplied by (y) the combined maximum federal,
     state and local income tax rate to be applied with respect to such taxable
     income (calculated by using the highest maximum combined marginal federal,
     state and local income tax rates to which such Unitholder may be subject
     and taking into account the deductibility of state and local income tax for
     federal income tax purposes) for such

<PAGE>
                                      -27-

     Taxable Year (making an appropriate adjustment for any rate changes that
     take place during such Taxable Year) over (B) the sum of (x) all prior Tax
     Distributions made to such Unitholder during such Taxable Year and (y) all
     Distributions made to such Unitholder prior to the close of such Taxable
     Year pursuant to Section 4.1(a)(ii).

          (ii) So long as the Company is treated as a partnership for federal,
     state or local income tax purposes, to the extent funds are legally
     available therefor, the Company shall distribute to each Unitholder:

               (A) after the end of the first quarter of each Taxable Year of
          the Company, 25% of the amount the Company estimates that it will be
          required to distribute to each Unitholder in respect of such Taxable
          Year pursuant to Section 4.1(b)(i);

               (B) after the end of the second quarter of each Taxable Year of
          the Company, (x) 50% of the amount the Company estimates that it will
          be required to distribute to each Unitholder in respect of such
          Taxable Year pursuant to Section 4.1(b)(i) (determined without regard
          to the amount of any Tax Distributions made pursuant to this Section
          4.1(b)(ii)), less (y) the amount distributed to such Unitholder
          pursuant to Section 4.1(b)(ii)(A) for the first quarter of such
          Taxable Year; and

               (C) after the end of the third quarter of each Taxable Year of
          the Company, (x) 75% of the amount the Company estimates that it will
          be required to distribute to each Unitholder in respect of such
          Taxable Year pursuant to Section 4.1(b)(i) (determined without regard
          to the amount of any Tax Distributions made pursuant to this Section
          4.1(b)(ii)), less (y) the sum of the amounts distributed to such
          Unitholder pursuant to Section 4.1(b)(ii)(A) and (B) for the first and
          second quarters of such Taxable Year.

     If the total amount of the Distributions made by the Company to any
Unitholder pursuant to this Section 4.1(b)(ii) with respect to the first three
quarters of any Taxable Year exceeds the amount that the Company is required to
distribute to such Unitholder pursuant to Section 4.1(b)(i) for such Taxable
Year (such excess, the "Excess Tax Distributions"), then each Unitholder shall
return to the Company the Excess Tax Distributions for such Taxable Year within
thirty (30) days of receipt of notice from the Company that the return of such
Excess Tax Distributions is required.

          (iii) If the Company does not have funds legally available to
     distribute on a timely basis the full Tax Distributions required pursuant
     to this Section 4.1(b), then: (A) Tax Distributions shall be made to the
     Unitholders in proportion to the Tax Distributions they would have received
     had the full amount of funds been legally available; and (B) the unpaid
     amount shall (x) carry forward and be paid by the Company as soon as the
     Company has funds legally available and (y) bear interest at a rate of 8%
     from the date the unpaid amount would have been paid had the full amount of
     funds been legally available until the date such unpaid amount is paid.

     (c) Persons Receiving Distributions. Each Distribution shall be made to the
Persons shown on the Company's books and records as Unitholders as of the date
of such Distribution; pro-

<PAGE>
                                      -28-

vided, however, that any transferor and Permitted Transferee of Units may
mutually agree as to which of them should receive payment of any Distribution
under this Section 4.1.

         SECTION 4.2 Allocations. The following allocations shall be made for
each Taxable Year of after all allocations pursuant to Section 4.3 for such
Taxable Year:

     (a) Net Profit for a Taxable Year shall be allocated:

          (i) First, to the Class A Unitholders pro rata based on the respective
     number of Class A Units owned by each Class A Unitholder, to the extent of
     any excess of Net Losses allocated to the Class A Unitholders under Section
     4.2(b)(iv) for prior periods over Net Profits allocated to the Class A
     Unitholders under this Section 4.2(a)(i) for prior periods;

          (ii) Second, to the Class B Unitholders pro rata based on the
     respective number of Class B Units owned by each Class B Unitholder, to the
     extent of any excess of Net Losses allocated to the Class B Unitholders
     under Section 4.2(b)(iii) for prior periods over Net Profits allocated to
     the Class B Unitholders under this Section 4.2(a)(ii) for prior periods;

          (iii) Third, to the Class A Unitholders pro rata based on the
     respective number of Class A Units owned by each Class A Unitholder, to the
     extent of any excess of Net Losses allocated to the Class A Unitholders
     under Section 4.2(b)(ii) for prior periods over Net Profits allocated to
     the Class A Unitholders under this Section 4.2(a)(iii) for prior periods;

          (iv) Fourth, to DaimlerChrysler, to the extent of any excess of Net
     Losses allocated to DaimlerChrysler under Section 4.2(b)(i) for prior
     periods over Net Profits allocated to DaimlerChrysler under this Section
     4.2(a)(iv) for prior periods; and

          (v) Fifth, to the Class A Unitholders pro rata based on the respective
     number of Class A Units owned by each Class A Unitholder.

          (b) Net Loss for a Taxable Year shall be allocated:

          (i) First, to DaimlerChrysler, to the extent of any excess of (A) the
     sum of DaimlerChrysler's Additional Contributions under Article XVI and any
     Net Profits allocated to DaimlerChrysler under Section 4.2(a)(iv), over (B)
     Net Losses allocated to DaimlerChrysler under this Section 4.2(b)(i) for
     prior periods;

          (ii) Second, to the Class A Unitholders pro rata based on, and to the
     extent of, the positive balances of their Capital Accounts, excluding any
     Class B Unreturned Capital;

          (iii) Third, to the Class B Unitholders, to the extent of the
     remaining balance in its Capital Account; and

<PAGE>
                                      -29-

          (iv) Fourth, the Class A Unitholders pro rata based on the respective
     number of Class A Units owned by each Class A Unitholder.

     SECTION 4.3 Special Allocations. The following special allocations shall,
except as otherwise provided, be made in the following order:

          (a) Notwithstanding any other provision of this Article IV, if there
     is a net decrease in Company Minimum Gain or in any Unitholder Minimum Gain
     during any Taxable Year of the Company, prior to any other allocation
     pursuant hereto, such Unitholder shall be specially allocated items of
     Company Profit for such year (and, if necessary, subsequent years) in an
     amount and manner required by Treasury Regulation Sections 1.704-2(f) or
     1.704-2(i)(4), as appropriate. The items to be so allocated shall be
     determined in accordance with Treasury Regulation Section 1.704-2 in
     compliance with such Treasury Regulations.

          (b) Any Unitholder who unexpectedly receives an adjustment, allocation
     or distribution described in Treasury Regulation Section
     1.704-1(b)(2)(ii)(d)(4), (5) or (6) which causes or increases a negative
     balance in his or its Capital Account shall be allocated items of Profit
     sufficient to eliminate the negative balance in its Capital Account, as
     quickly as possible, to the extent and in the manner required by Treasury
     Regulation Section 1.704-1(b)(2)(ii)(d).

          (c) Nonrecourse Deductions for any Taxable Year of the Company or
     other period shall be allocated (as nearly as possible) under Treasury
     Regulation Section 1.704-2 to the Class A Unitholders pro rata in
     proportion to their respective ownership of Class A Units.

          (d) Any Unitholder Nonrecourse Deductions for any Taxable Year of the
     Company or other period shall be allocated to the Unitholder that made or
     guaranteed or is otherwise liable with respect to the loan to which such
     Unitholder Nonrecourse Deductions are attributable in accordance with
     principles under Treasury Regulation Section 1.704-2(i).

          (e) No allocation of Loss shall be made to any Unitholder if, as a
     result of such allocation, such Unitholder would have an Adjusted Capital
     Account Deficit. Any such disallowed allocation shall be made to the
     Unitholders entitled to receive such allocation under Treasury Regulation
     Section 1.704-1 in proportion to their respective ownership of Class A
     Units first (to the extent allowable under Treasury Regulation Section
     1.704-1) and thereafter in proportion to their respective ownership of
     Class B Units.

          (f) The allocations set forth in Sections 4.3(a) through (e) (the
     "Regulatory Allocations") are intended to comply with certain requirements
     of Sections 1.704-1(b) and 1.704-2 of the Treasury Regulations. The
     Regulatory Allocations may not be consistent with the manner in which the
     Unitholders intend to allocate Profit and Loss of the Company or make
     Distributions. Accordingly, notwithstanding the other provisions of this
     Article IV, but subject to the Regulatory Allocations, income, gain,
     deduction and loss shall be reallocated among the Unitholders so as to
     eliminate the effect of the Regulatory Allocations and thereby cause the
     respective Capital Accounts of the Unitholders to be in the amounts (or as
     close

<PAGE>
                                      -30-

     thereto as possible) they would have been if Profit and Loss (and such
     other items of income, gain, deduction and loss) had been allocated without
     reference to the Regulatory Allocations. In general, the Unitholders
     anticipate that this will be accomplished by specially allocating other
     Profit and Loss (and such other items of income, gain, deduction and loss)
     among the Unitholders so that the net amount of the Regulatory Allocations
     and such special allocations to each such Unitholder is zero.

     SECTION 4.4 Tax Allocations.

     (a) Except as otherwise provided in this Operating Agreement, all items of
Company income, gain, loss, deduction and any other allocation not otherwise
provided for shall be divided among the Unitholders in the same proportions as
they share the corresponding item of Profit and Loss, as the case may be, for
the Taxable Year.

     (b) Items of Company taxable income, gain, loss, and deduction with respect
to any property contributed to the capital of the Company shall be allocated
among the Unitholders in accordance with Code Section 704(c) so as to take
account of any variation between the adjusted basis of such property to the
Company for federal income tax purposes and its Book Value under the traditional
method as set forth in Treasury Regulation Section 1.704-3(b).

     (c) If the Book Value of any Company asset is adjusted pursuant to the
requirements of Treasury Regulation Section 1.704-1(b)(2)(iv)(e) or (f)
subsequent allocations of items of taxable income, gain, loss, and deduction
with respect to such asset shall take account of any variation between the
adjusted basis of such asset for federal income tax purposes and its Book Value
in the same manner as under Code Section 704(c) under the traditional method as
set forth in Treasury Regulation Section 1.704-3(b).

     (d) Allocations of tax credits, tax credit recapture, and any items related
thereto shall be allocated to the Unitholders according to their interests in
such items as determined by the Board taking into account the principles of
Treasury Regulation Section 1.704-1(b)(4)(ii).

     (e) Allocations pursuant to this Section 4.4 are solely for purposes of
federal, state and local taxes and shall not affect, or in any way be taken into
account in computing, any Unitholder's Capital Account or Interest in Profits,
Losses, Distributions, or other Company items pursuant to any provision of this
Operating Agreement.

     SECTION 4.5 Adjustment of Book Value of Assets. The Board shall adjust the
Book Value of each of the assets of the Company to equal such asset's gross Fair
Market Value in a manner consistent with Section 14.2 immediately prior to the
occurrence of each of the following events (the date of each such event, a
"Valuation Date"): (i) the acquisition of Units by any Unitholder in connection
with a contribution of money or other property (other than a de minimis amount);
(ii) the liquidation of the Company within the meaning of Treasury Regulation
Section 1.704-1(b)(2)(ii)(g) (other than a deemed liquidation described in
Treasury Regulation Section 1.704-1(b)(2)(iv)(l)) or (iii) any Distribution of
money or other property (other than a de minimis amount) by the Company to a
withdrawing or continuing Unitholder as consideration for an Interest in the
Company.

<PAGE>
                                      -31-

     SECTION 4.6 Indemnification for Payments on Behalf of a Unitholder. If the
Company is required by applicable Law to make any payment that is specifically
attributable to a Unitholder or a Unitholder's status as such (including federal
withholding taxes, state personal property taxes and state unincorporated
business taxes), the Company shall treat such payment as a Distribution to such
Unitholder for all purposes (including, for the avoidance of doubt, a Tax
Distribution made pursuant to Section 4.1(b)). If there are insufficient amounts
otherwise distributable to such Unitholder to be fully offset by such payment,
then such Unitholder shall indemnify the Company in full for the entire amount
not so offset (including interest, penalties and related expenses). The Company
may pursue and enforce all rights and remedies it may have against each
Unitholder under this Section 4.6, including instituting a lawsuit to collect
such indemnification with interest calculated at a rate equal to 8% per annum,
compounded as of the last day of each year (but not in excess of the highest
rate per annum permitted by applicable Law).

                                    ARTICLE V

                           BOARD OF MANAGERS; OFFICERS

     SECTION 5.1 Management by the Board of Managers.

     (a) Unitholders Elect Board. The Unitholders shall not manage and control
the business and affairs of the Company, except for situations in which the
approval of the Unitholders is required by this Operating Agreement (including,
without limitation, Section 3.2(j)) or non-waivable provisions of applicable
Law. The Board shall be elected by the Unitholders pursuant to Section 5.2(a).

     (b) Authority of Board of Managers.

          (i) Except for situations in which the approval of the Unitholders is
     required by this Operating Agreement (including, without limitation,
     Section 3.2(j)) or non-waivable provisions of applicable Law, subject to
     the provisions of Section 5.1(b)(ii), (x) the powers of the Company shall
     be exercised by or under the authority of, and the business and affairs of
     the Company shall be managed under the direction of, the Board and (y) the
     Board shall have all power and rights necessary, appropriate or advisable
     to effectuate and carry out all decisions and take all actions for the
     Company not otherwise provided for in this Operating Agreement, including,
     without limitation, the following:

               (A) entering into, making and performing contracts, agreements
          and other undertakings binding the Company that may be necessary,
          appropriate or advisable in furtherance of the purposes of the Company
          and making all decisions and waivers thereunder;

               (B) maintaining the assets of the Company in good order;

               (C) collecting sums due the Company;

               (D) opening and maintaining bank and investment accounts and
          arrangements, drawing checks and other orders for the payment of money
          and designating individuals with authority to sign or give
          instructions with respect to those accounts and arrangements;

<PAGE>
                                      -32-

               (E) to the extent that funds of the Company are available
          therefor, paying debts and obligations of the Company;

               (F) acquiring, utilizing for Company purposes and disposing of
          any asset of the Company;

               (G) hiring and employing executives, Officers, supervisors and
          other employees of, and consultants to, the Company;

               (H) selecting, removing and changing the authority and
          responsibility of lawyers, accountants and other advisers and
          consultants;

               (I) entering into guaranties on behalf of the Company's
          Subsidiaries;

               (J) obtaining insurance for the Company;

               (K) determining Distributions of cash and other property of the
          Company as provided in Article IV;

               (L) establishing reserves for commitments and obligations
          (contingent or otherwise) of the Company; and

               (M) establishing a seal for the Company.

          (ii) The Board may act (A) by resolutions adopted at a meeting duly
     held and by written consents pursuant to Section 5.3, (B) by delegating
     power and authority to committees pursuant to Section 5.4(a) and (b), (C)
     by delegating power and authority to one or more Persons (including any
     Manager) pursuant to Section 5.4(c) and (D) by delegating power and
     authority to any Officer pursuant to Section 5.5(a).

          (iii) Each Unitholder acknowledges and agrees that no Manager shall,
     as a result of being a Manager (as such), be bound to devote all of his
     business time to the affairs of the Company, and that he and his Affiliates
     do and will continue to engage for their own account and for the accounts
     of others in other business ventures. Each Unitholder further acknowledges
     and agrees that no Unitholder shall, as a result of being a Unitholder (as
     such), be bound to devote all of its business time to the affairs of the
     Company, and that it and its Affiliates do and will continue to engage for
     their own account and for the accounts of others in other business
     ventures.

     SECTION 5.2 Composition and Election of the Board of Managers.

     (a) Number and Election. The number of Managers on the Board shall be nine
(9). The Managers shall be designated as follows:

          (i) five (5) Managers will be designated by DaimlerChrysler; and

          (ii) four (4) Managers will be designated by Metaldyne.

<PAGE>
                                      -33-

     The initial Managers designated by DaimlerChrysler shall be [ ]. The
initial Managers designated by Metaldyne shall be [ ]. Each Class A Unitholder
agrees to vote all of its Class A Units at any annual or special meeting of
Unitholders called for the purpose of electing Managers to the Board, on in any
written consent executed in lieu of such a meeting of Unitholders, in favor of
the individuals designated by DaimlerChrysler and Metaldyne in accordance with
this Section 5.2 (including any replacements designated pursuant to Section
5.2(d)), and to take any and all other actions as may be necessary or desirable
to ensure that the Board is comprised in accordance with the foregoing at all
times.

     (b) Term. Members of the Board shall serve until their resignation, death
or removal or the election of their successors in accordance with the terms
hereof. Members of the Board need not be Unitholders and need not be residents
of the State of Delaware. A member of the Board may resign as such by delivering
his, her or its written resignation to the Company at the Company's principal
office addressed to the Board. Such resignation shall be effective upon receipt
unless it is specified to be effective at some other time or upon the happening
of some other event.

     (c) Removal and Resignation. Any Manager may be removed at any time, with
or without cause, by the Person or Persons entitled to designate such Manager
pursuant to Section 5.2(a). Any Manager or the entire Board may be removed at
any time, for "cause" (as defined below), by the vote of the holders of 66 2/3%
of Class A Units. For the purposes of this Section 5.2(c), "cause" shall mean
the conviction of any felony. Each Class A Unitholder agrees that it will not
vote any of its Class A Units at any annual or special meeting of Unitholders,
or in any written consent executed in lieu of such a meeting of Unitholders, in
favor of the removal of any Manager who shall have been designated pursuant to
Section 5.2(a) unless (i) such removal shall be for cause or (ii) the Person or
Persons entitled to designate such Manager shall have requested or consented to
such removal in writing. Each Class A Unitholder agrees to vote all of its Class
A Units at any annual or special meeting of Unitholders called for the purpose
of removing a Manager from the Board, or in any written consent executed in lieu
of such a meeting of Unitholders, in favor of the removal of any Manager who
shall have been designated pursuant to Section 5.2(a) if the Person or Persons
entitled to designate such Manager shall have requested or consented to such
removal in writing.

     (d) Vacancies. If there shall exist or occur any vacancy on the Board as a
result of the resignation, death or removal, with or without cause, of a
Manager, the Person or Persons entitled under Section 5.2(a) to designate such
Manager whose resignation, death or removal resulted in such vacancy may
designate another individual to fill such vacancy and serve as a Manager on the
Board. The Board shall appoint each Manager so designated to fill such vacancy
and such Manager hold office until his successor is duly elected and qualified
or until his earlier death, resignation or removal as provided herein.

     (e) Reimbursement. The Company shall pay all reimbursable out-of-pocket
costs and expenses incurred by each member of the Board incurred in the course
of their service hereunder, including in connection with attending regular and
special meetings of the Board, any board of managers or board of directors of
any of the Company's Subsidiaries and any committee thereof.

<PAGE>
                                      -34-

     (f) Compensation of Managers. Managers shall receive no compensation for
serving in such capacity.

     SECTION 5.3 Board Meetings and Actions by Written Consent.

     (a) Quorum; Voting. A majority of the total number of Managers must be
present (including pursuant to Section 5.3(g)) in order to constitute a quorum
for the transaction of business of the Board. Except as otherwise provided in
this Operating Agreement (including, without limitation, in Section 5.3(g)), the
act of a majority of the Managers present at a duly held meeting of the Board at
which a quorum is present shall be the act of the Board.

     (b) Place; Attendance. Meetings of the Board may be held at such place or
places as shall be determined from time to time by resolution of the Board. All
meetings of the Board shall be presided over by a Chairman who shall be a
Manager designated by DaimlerChrysler from time to time (and not unreasonably
objected to by Metaldyne). At all meetings of the Board, business shall be
transacted in such order as shall from time to time be determined by resolution
of the Board. Attendance of a Manager at a meeting shall constitute a waiver of
notice of such meeting, except where a Manager attends a meeting for the express
purpose of objecting to the transaction of any business on the ground that the
meeting is not lawfully called or convened.

     (c) Special Meetings. Special meetings of the Board may be called by any
Manager on at least 48 hours' notice to each other Manager. Such notice need not
state the purpose or purposes of, or the business to be transacted at, such
meeting, except as may otherwise be required by applicable Law or provided for
in this Operating Agreement. Any Manager may waive any such notice at any time
in writing.

     (d) Time, Place and Notice. Notice of regular meetings of the Board or of
any adjourned regular meeting will be given in writing at least ten (10)
Business Days prior to such meeting, unless otherwise agreed in writing by each
Unitholder. Notices of special meetings of the Board or of any adjourned special
meeting will be faxed to each Manager addressed to him or her at his or her
residence or usual place of business, so as to be received at least two (2)
Business Days before the day on which such meeting is to be held. Such notice
will include the purpose, time and place of such meeting and will set forth in
reasonable detail the matters to be considered at such meeting. However, notice
of any such meeting need not be given to any Manager if such notice is waived by
him or her in writing, whether before or after such meeting is held, or if he or
she is present at such meeting (unless such Manager objects, before any business
is conducted thereat, to the holding of such meeting without due notice), or
with respect to a regular meeting scheduled at a meeting of the Board held at
least twenty (20) calendar days prior to the date of a subsequent meeting.

     (e) Chairman and Vice Chairman. The Board shall designate one of the
Managers to serve as Chairman and a different Manager to serve as Vice Chairman.
The Chairman shall preside at all meetings of the Board. If the Chairman is
absent at any meeting of the Board, the Vice Chairman shall preside over such
Board meeting. If the Chairman and Vice Chairman are absent, the Managers
present shall designate a member to serve as interim chairman for that meeting.

<PAGE>
                                      -35-

     (f) Action by Written Consent or Telephone Conference. Any action permitted
or required by the Delaware Act, the Certificate or this Operating Agreement to
be taken at a meeting of the Board or any committee designated by the Board may
be taken without a meeting if a consent in writing, setting forth the action to
be taken, is signed by all the Managers or members of such committee, as the
case may be. Such consent shall have the same force and effect as a unanimous
vote at a meeting and may be stated as such in any document or instrument filed
with the Secretary of State of Delaware, and the execution of such consent shall
constitute attendance or presence in person at a meeting of the Board or any
such committee, as the case may be. Subject to the requirements of the Delaware
Act, the Certificate or this Operating Agreement for notice of meetings, unless
otherwise restricted by the Certificate, the Managers or members of any
committee designated by the Board may participate in and hold a meeting of the
Board or any committee, as the case may be, by means of a conference telephone
or similar communications equipment by means of which all persons participating
in the meeting can hear each other, and participation in such meeting shall
constitute attendance and presence in person at such meeting, except where a
person participates in the meeting for the express purpose of objecting to the
transaction of any business on the ground that the meeting is not lawfully
called or convened.

     (g) Board Actions Requiring Supermajority Approval. Notwithstanding any
other provision of this Operating Agreement, the vote of at least 66 2/3% of the
total number of Managers shall be required for the Board to approve any of the
actions set forth on Exhibit A (and such vote shall be required for the Company
to take any action in its capacity as holder of voting securities of any of its
Subsidiaries with respect to any substantially similar actions proposed to be
taken by or with respect to such Subsidiary). The Company shall take any and all
actions as may be necessary or desirable to ensure that each Subsidiary of the
Company, before taking any actions substantially similar to those set forth on
Exhibit A, must receive the consent of the Company in its capacity as holder of
voting securities of such Subsidiary.

     (h) Board Approval of Local Qualified Collective Bargaining Agreements.
Notwithstanding any other provision of this Operating Agreement, (i) a majority
of the Managers designated by Metaldyne shall constitute a quorum for purposes
of approving Local Qualified Collective Bargaining Agreements and (ii) with
respect to Local Qualified Collective Bargaining Agreements, the act of a
majority of the Managers designated by Metaldyne present at a duly held meeting
of the Board at which a quorum (as defined in clause (i) above) is present shall
be the act of the Board.

     SECTION 5.4 Committees; Delegation of Authority and Duties.

     (a) Committees. The Board may, from time to time, designate one or more
committees and delegate any of its authority and duties to any such committee;
provided that the Board may not delegate all of its authority and duties to any
such committee. At least one third of the members of each such committee must be
Managers designated by Metaldyne and no more than two thirds of the members of
each such committee must be Managers designated by DaimlerChrysler (other than
any committee constituted (i) for the purpose of assessing or determining any
matter in which Metaldyne or DaimlerChrysler, as the case may be, has any
interest materially adverse to any interest of the Company or any other
Unitholder or (ii) solely of independent Managers in order to comply with or to
be afforded protections under Delaware Law, including the Delaware Act). Subject
to Section 5.3(g),

<PAGE>
                                      -36-

at every meeting of any such committee, including, without limitation, the audit
committee, the presence of a majority of all the members thereof shall
constitute a quorum, and the affirmative vote of a majority of the members
present shall be necessary for the adoption of any resolution.

     (b) Audit Committee. The Board may establish an audit committee to select
the Company's independent accountants and to review the annual audit of the
Company's financial statements conducted by such accountants. Such committee
shall be comprised of three (3) Managers, one (1) of whom shall be a Manager
designated by Metaldyne and two (2) of whom shall be Managers designated by
DaimlerChrysler.

     (c) Delegation to Other Persons. The Board may, from time to time, delegate
to one or more Persons (including any Manager or Officer) such authority and
duties as the Board may deem advisable, including pursuant to a management
agreement or another with, or otherwise to, one or more Persons (including any
Manager). The Board also may assign titles (including chairman, vice chairman,
chief executive officer, president, chief financial officer, vice president,
secretary, assistant secretary, treasurer and assistant treasurer) to any
Manager, Unitholder or other individual and may delegate to such Manager,
Unitholder or other individual certain authority and duties. Any number of
titles may be held by the same Manager, Unitholder or other individual. Subject
to Section 5.3(g), any delegation pursuant to this Section 5.4(c) may be revoked
at any time by the Board, without prejudice, however, to any rights under the
provisions of any management, employment or other agreement pursuant to which
such delegation was made.

     SECTION 5.5 Officers.

     (a) Designation and Appointment. The Board may (but need not), from time to
time, designate and appoint one or more persons as an Officer of the Company. No
Officer need be a resident of the State of Delaware, a Unitholder or a Manager.
Any Officers so designated shall have such authority and perform such duties as
the Board may, from time to time, delegate to them. The Board may assign titles
to particular Officers. Unless the Board otherwise decides, if the title is one
commonly used for officers of a business corporation formed, the assignment of
such title shall constitute the delegation to such Officer of the authority and
duties that are normally associated with that office, subject to (i) any
specific delegation of authority and duties made to such Officer by the Board
pursuant to the third sentence of this Section 5.5(a) or (ii) any delegation of
authority and duties made to one or more Officers pursuant to the terms of
Sections 5.4(c) and 5.5(c). Each Officer shall hold office until such Officer's
successor shall be duly designated and shall qualify or until such Officer's
death or until such Officer shall resign or shall have been removed in the
manner hereinafter provided. Any number of offices may be held by the same
individual. The salaries or other compensation, if any, of the Officers and
agents of the Company shall be fixed from time to time by the Board.

     (b) Resignation. Any Officer (subject to any contract rights available to
the Company, if applicable) may resign as such at any time. Such resignation
shall be made in writing and shall take effect at the time specified therein, or
if no time be specified, at the time of its receipt by the Board. The acceptance
of a resignation shall not be necessary to make it effective, unless expressly
so provided in the resignation. Any Officer may be removed as such, either with
or without cause, by the

<PAGE>
                                      -37-

Board whenever in its judgment the best interests of the Company shall be served
thereby; provided, however, that such removal shall be without prejudice to the
contract rights, if any, of the individual so removed. Designation of an Officer
shall not of itself create contract rights. Any vacancy occurring in any office
of the Company may be filled by the Board.

     (c) Duties of Officers. Subject to Section 6.5, the Officers (including any
person designated by Metaldyne to function as an Officer), in the performance of
their duties as such, shall owe to the Unitholders duties of loyalty and due
care of the type owed by the officers of a corporation to such corporation and
its stockholders under the Laws of the State of Delaware.

                                   ARTICLE VI

                  GENERAL RIGHTS AND OBLIGATIONS OF UNITHOLDERS

     SECTION 6.1 Limitation of Liability. Except as otherwise provided by this
Operating Agreement or applicable Law, the debts, obligations and liabilities of
the Company, whether arising in contract, tort or otherwise, shall be solely the
debts, obligations, and liabilities of the Company, and no Unitholder shall be
obligated personally for any such debt, obligation or liability of the Company
solely by reason of being a Unitholder of the Company; provided, however, that a
Unitholder shall be required to return to the Company any Distribution made to
it in clear and manifest accounting or similar error. The immediately preceding
sentence shall constitute a compromise to which all Unitholders have consented
within the meaning of the Delaware Act. Notwithstanding any other provision of
this Operating Agreement, the failure of the Company to observe any formalities
or requirements relating to the exercise of its powers or management of its
business and affairs under this Operating Agreement or the Delaware Act shall
not be grounds for imposing personal liability on the Unitholders for
liabilities of the Company.

     SECTION 6.2 Lack of Authority. Without derogation to a Unitholder's rights
or obligations under any Related Agreement, no Unitholder in its capacity as
such (other than the members of the Board acting as the Board or an authorized
Officer of the Company acting as such) has the authority or power to act for or
on behalf of the Company in any manner, to do any act that would be (or could be
construed as) binding on the Company or to make any expenditures on behalf of
the Company, and the Unitholders hereby consent to the exercise by the Board of
the powers conferred on it by applicable Law and this Operating Agreement.

     SECTION 6.3 No Right of Partition. No Unitholder shall have the right to
seek or obtain partition by court decree or operation of applicable Law of any
Company property, or the right to own or use particular or individual assets of
the Company.

     SECTION 6.4 Unitholders' Right To Act. For situations which the approval of
any Unitholders or class thereof (rather than the approval of the Board on
behalf of the Unitholders) is required, the Unitholders shall act through
meetings and written consents as described in Section 3.2.

     SECTION 6.5 Conflicts of Interest. A Unitholder, its Affiliates and each of
their respective stockholders, directors, officers, controlling persons,
partners and employees (collectively, the

<PAGE>
                                      -38-

"Unitholder Group") may have business interests and engage in business
activities in addition or similar to those relating to the Company and its
Subsidiaries, except as any such Person may have otherwise agreed with the
Company or another Unitholder in writing. Neither the Company nor any other
Unitholders shall have any rights by virtue of this Operating Agreement , such
Person's status as a member of a Unitholder Group or ownership of Units or
otherwise, in any business ventures of any such Person except as and to the
extent expressly provided in any written agreement among the relevant parties.
Without limiting the generality of the foregoing and to the fullest extent
permitted by Delaware Law (but subject to this Section 6.5), except as otherwise
expressly provided in this Operating Agreement or any other written agreement
between the Company and a Unitholder, if any of the Unitholders, any of their
respective Affiliates (other than the Company) or any of their officers,
directors, agents, stockholders, members or partners acquires knowledge of, or
engages in or exploits, any Corporate Opportunity, the Company shall have no
interest or expectancy in, or in being offered an opportunity to participate in,
such Corporate Opportunity, any such interest or expectancy being hereby
renounced, so that, as a result of such renunciation, such Person (a) shall have
no duty to communicate or present such Corporate Opportunity to the Company, (b)
shall have the right to hold any such Corporate Opportunity for his, her or its
(and/or his, her or its officers', directors', agents', stockholders', members'
or partners') own account or to recommend, sell, assign, or transfer such
Corporate Opportunity to Persons other than the Company, and (c) shall not
breach any fiduciary duty to the Company, in such Person's capacity as a
Unitholder of the Company or otherwise, by reason of the fact that such Person
pursues or acquires such Corporate Opportunity for itself, directs, sells,
assigns, or transfers such Corporate Opportunity to another Person, or does not
communicate information regarding such Corporate Opportunity to the Company.

     SECTION 6.6 Transactions Between the Company and the Unitholders.
Notwithstanding that it may constitute a conflict of interest or Corporate
Opportunity in which the Company has an interest pursuant to Section 6.5, the
Unitholders or their Affiliates may engage in any transaction (including the
purchase, sale, lease or exchange of any property or rendering of any service or
the establishment of any salary, other compensation or other terms of
employment) with the Company (a) to the extent permitted by the Related
Agreements or (b) so long as such transaction is approved by the Board in
advance by the vote of 66 2/3% of the total number of Managers.

     SECTION 6.7 Right of Inspection. From and after the date hereof, the
Company will permit each Unitholder or its representatives, at such Unitholder's
expense, to visit any of the properties of the Company, to examine all its books
of account, records, reports and other papers, to make copies and extracts
therefrom, and to discuss its affairs, finances and accounts with its officers,
directors, key employees and independent accountants or any of them (and by this
provision the Company authorizes said accountants to discuss with said
Unitholder and its representatives the finances and affairs of the Company and
its subsidiaries; provided, however, that the Company shall be provided
reasonable advance notice of such Person's intention to speak with such
accountants and the Company shall be provided a reasonable opportunity to
address the questions or matters proposed to be discussed with the accountants
prior to such Person contacting the accountants directly), all at such
reasonable times and all on reasonable notice as may be reasonably requested by
such Unitholder.

<PAGE>
                                      -39-

                                   ARTICLE VII

                         EXCULPATION AND INDEMNIFICATION

     SECTION 7.1 Liability. Except as otherwise provided under the Laws of the
State of Delaware or pursuant to this Operating Agreement, the debts,
obligations and liabilities of the Company, whether arising in contract, tort or
otherwise, will be solely the debts, obligations and liabilities of the Company,
and no Manager or Officer will be obligated personally for any such debt,
obligation or liability of the Company.

     SECTION 7.2 Exculpation. Except as otherwise provided by this Operating
Agreement, no Officer or Manager shall be liable to any other Officer, Manager
or the Company or to any Unitholder for any loss, damage or claim suffered by
the Company as a result of actions taken in good faith and reasonably believed
by the Officer or Manger to be in, or not opposed to, the best interests of the
Company, unless such loss is caused by such Person's gross negligence, willful
misconduct, violation of applicable Law or material breach of this Operating
Agreement. The Officers and Managers shall not be liable for errors in judgment
or neglect or for any acts or omissions that do not constitute gross negligence,
willful misconduct, violation of applicable Law or material breach of this
Operating Agreement, if such person acted in good faith and reasonably believed
such action to be in, or not opposed to, the best interests of the Company. Any
Officer or Manager may consult with counsel, accountants and other professionals
in respect of Company affairs, and provided such Person acts in good faith
reliance upon the advice or opinion of such counsel, accountants or other
professionals, such Person shall not be liable for any loss suffered by the
Company in reliance thereon.

     SECTION 7.3 Right to Indemnification. Subject to the limitations and
conditions as provided in this Article VII, each Person who was or is made a
party or is threatened to be made a party to or is involved in any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or arbitrative (hereinafter a "Proceeding"), or any appeal in
such a Proceeding or any inquiry or investigation that could lead to such a
Proceeding, by reason of the fact that he or she is or was a Manager or Officer
shall be indemnified by the Company to the fullest extent permitted by the
Delaware Act, as the same exist or may hereafter be amended (but, in the case of
any such amendment, only to the extent that such amendment permits the Company
to provide broader indemnification rights than said applicable Law permitted the
Company to provide prior to such amendment), against judgments, penalties
(including excise and similar taxes and punitive damages), fines, settlements
and reasonable expenses (including attorneys' fees) actually incurred by such
Person in connection with such Proceeding, and indemnification under this
Article VII shall continue as to a Person who has ceased to serve in the
capacity which initially entitled such Person to indemnity hereunder. The rights
granted pursuant to this Article VII shall be deemed contract rights, and no
amendment, modification or repeal of this Article VII shall have the effect of
limiting or denying any such rights with respect to actions taken or Proceedings
arising prior to any amendment, modification or repeal. It is expressly
acknowledged that the indemnification provided in this Article VII could involve
indemnification for negligence or under theories of strict liability.
Notwithstanding the foregoing, no Officer or Manager shall be indemnified for
any claim initiated by such Officer or Manager against the Company, except to
the extent such claim is raised to recover an indemnity award to which such
Officer or Manager is entitled pursuant to this Section 7.3.

<PAGE>
                                      -40-

     SECTION 7.4 Advance Payment. Reasonable expenses incurred by a Person of
the type entitled to be indemnified under Section 7.3 who was, is or is
threatened to be made a named defendant or respondent in a Proceeding shall be
paid by the Company in advance of the final disposition of the Proceeding unless
otherwise determined by the Board in the specific case, upon receipt of an
undertaking by or on behalf of such Person to repay such amount if it shall
ultimately be determined that he or she is not entitled to be indemnified by the
Company.

     SECTION 7.5 Indemnification of Employees and Agents. The Company, by
adoption of a resolution of the Board, may indemnify and advance expenses to a
Person who is or was serving as an employee or agent of the Company who is not
and was not a Manager or Officer against any liability asserted against him and
incurred by him in such a capacity or arising out of his status as such a Person
to the same extent and subject to the same conditions under which it may
indemnify and advance expenses to Managers and Officers under this Article VII.

     SECTION 7.6 Appearance as a Witness. Notwithstanding any other provision of
this Article VII, the Company may pay or reimburse reasonable out-of-pocket
expenses incurred by a Manager or Officer in connection with his appearance as a
witness or other participation in a Proceeding at a time when he is not a named
defendant or respondent in the Proceeding.

     SECTION 7.7 Nonexclusivity of Rights. The right to indemnification and the
advancement and payment of expenses conferred in this Article VII shall not be
exclusive of any other right which a Manager, Officer or other Person
indemnified pursuant to Section 7.3 may have or hereafter acquire under any
applicable Law (common or statutory), provision of the Certificate or this
Operating Agreement, agreement, vote of Unitholders or disinterested Managers or
otherwise.

     SECTION 7.8 Insurance. The Company may purchase and maintain insurance, at
its expense, to protect itself and any Person who is or was serving as a
Manager, Officer or agent of the Company or is or was serving at the request of
the Company as a manager, director, officer, partner, venturer, proprietor,
trustee, employee, agent or similar functionary of another foreign or domestic
limited ability company, corporation, partnership, joint venture, sole
proprietorship, trust, employee benefit plan or other enterprise against any
expense, liability or loss, whether or not the Company would have the power to
indemnify such Person against such expense, liability or loss under this Article
VII.

     SECTION 7.9 Savings Clause. If this Article VII or any portion hereof shall
be invalidated on any ground by any court of competent jurisdiction, then the
Company shall nevertheless indemnify and hold harmless each Manager, Officer or
any other Person indemnified pursuant to this Article VII as to costs, charges
and expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement with respect to any action, suit or proceeding, whether civil,
criminal, administrative or investigative to the full extent permitted by any
applicable portion of this Article VII that shall not have been invalidated,
subject to applicable Law.

<PAGE>
                                      -41-

                                  ARTICLE VIII

                     BOOKS, RECORDS, ACCOUNTING AND REPORTS

     SECTION 8.1 Records and Accounting. The Company shall keep, or cause to be
kept, appropriate books and records with respect to the Company's business,
including all books and records necessary to provide any information, lists, and
copies of documents required to be provided pursuant to Section 8.3 or pursuant
to applicable Law. All matters concerning (a) the determination of the relative
amount of allocations and distributions among the Unitholders pursuant to
Articles III and IV and (b) subject to Section 5.3(g), accounting procedures and
determinations, and other determinations not specifically and expressly provided
for by the terms of this Operating Agreement, shall be determined by the Board,
whose determination shall be final and conclusive as to all of the Unitholders
absent manifest clerical error.

     SECTION 8.2 Fiscal Year. The fiscal year (the "Fiscal Year") of the Company
shall constitute the 12-month period ending on December 31 of each calendar
year, or such other annual accounting period as may be established by the Board
from time to time.

     SECTION 8.3 Reports.

     (a) Financial Information. It is acknowledged that ongoing financial
reporting by the Company is necessary to permit Metaldyne to comply with its
financial reporting and securities offerings requirements. To that end,
Metaldyne has agreed to provide such financial personnel and staff as may be
reasonably requested by the Company to assist the Company in the preparation of
the financial information required by this Section 8.3(a) on a timely basis.
While the financial information shall remain the responsibility of the Company,
the Company shall provide such information to Metaldyne personnel as may enable
them to assist the Company. In any event, the Company shall prepare and furnish
to Metaldyne not later than 15 days after period end (i) an annual, quarterly
and monthly unaudited general ledger trial balance of the Company and its
Subsidiaries (each, a "General Ledger"), which shall be prepared in accordance
with Seller's Accounting Principles (as defined in the Formation Agreement), and
(ii) an annual and quarterly unaudited statement of allocations (which shall
consist of the allocations described on Schedule 8.3 attached hereto) to be used
in conjunction with the annual and quarterly General Ledgers to produce the
financial statements described in the following sentence. Notwithstanding and in
addition to the foregoing, the Company shall be required to prepare and deliver
to all Unitholders (A) not later than 15 days prior to the date upon which
Metaldyne would be required to file its Annual Report on Form 10-K, consolidated
annual balance sheets and consolidated statements of operations and cash flows
and changes in shareholders' equity of the Company and its Subsidiaries, which
shall be prepared in accordance with GAAP, shall set forth in each case in
comparative form the figures for the previous year, and shall be audited by the
Company's independent accountants, and (B) not later than 15 days prior to the
date upon which Metaldyne would be required to file its Quarterly Report on Form
10-Q, consolidated unaudited quarterly balance sheets and consolidated unaudited
statements of operations and cash flows and changes in shareholders' equity of
the Company and its Subsidiaries, which shall be prepared on a basis consistent
with the annual financial statements referred to in clause (A) above, and shall
set forth in each case in comparative form year-to-date figures for the current
year and the comparable

<PAGE>
                                      -42-

period of the immediately preceding year and shall have been reviewed by such
auditors in accordance with the requirements of SAS 71 (collectively, the
"Ongoing Financial Statements"). The Ongoing Financial Statements shall be in
the form and for the periods that would be required for inclusion in a
registration statement filed under the Securities Act and shall comply with the
requirements of Regulation S-X under the Securities Act. It is hereby
acknowledged that Metaldyne has submitted a letter to the SEC dated November 4,
2002 in which it is seeking relief with respect to the requirements of
Regulation S-X which may be applicable to Metaldyne as a result of the
transactions contemplated by the Formation Agreement (the "Relief Letter").
Metaldyne agrees to use its reasonable best efforts to follow up with the SEC to
pursue the relief sought by the Relief Letter. To the extent that any of the
foregoing requirements would be reduced or otherwise modified as a result of the
SEC's response to the Relief Letter or otherwise, Metaldyne shall promptly (but
in no event more than five (5) Business Days following receipt of such response
or other information) inform the Company and provide the Company with the
correspondence from the SEC to that effect and the foregoing shall be deemed
modified to the extent thereof. The Company, DaimlerChrysler and Metaldyne shall
each cooperate with one another to ensure compliance with the foregoing on a
timely basis, as well as to ensure the availability of such historical and pro
forma financial information as may be reasonably required to comply with the
requirements of Regulation S-X under the Securities Act applicable to a
securities offering by Metaldyne. Notwithstanding any other provision of this
Operating Agreement, neither the Company nor DaimlerChrysler shall have any
liability to Metaldyne (or any of its Affiliates) for any of the financial
statements required by this Section 8.3 to the extent arising out of or
resulting from Metaldyne's (or any of its Affiliates') use thereof (including,
without limitation, the inclusion of such financial statements in any report or
registration statement filed under the Securities Act or the Exchange Act or any
other offering document used to sell securities of Metaldyne or any of its
Affiliates), and Metaldyne shall indemnify and hold harmless the Company and
DaimlerChrysler from any Losses arising out of or resulting from Metaldyne's (or
any of its Affiliates') use of such financial statements (including, without
limitation, the inclusion of such financial statements in any report or
registration statement filed under the Securities Act or the Exchange Act or any
other offering document used to sell securities of Metaldyne (or any of its
Affiliates).

     (b) Tax Information. The Company shall prepare all federal, foreign, state
and local income tax returns that the Company is required to file. The Company
shall deliver or cause to be delivered, within sixty (60) days after the end of
each Taxable Year, to each Person who was a Unitholder at any time during such
Taxable Year, all information necessary for the preparation of such Person's
federal, foreign, state and local income tax returns.

     (c) Business Reports. The Company shall prepare and deliver to each
Unitholder within fifteen (15) days after the end of each Fiscal Quarter a
report as to the implementation of the Company's Operating Budget and Capital
Plan during such Fiscal Quarter.

     SECTION 8.4 Transmission of Communications. Each Person that owns or
controls Units on behalf of, or for the benefit of, another Person or Persons
shall be responsible for conveying any report, notice or other communication
received from the Company to such other Person or Persons.

     SECTION 8.5 Company Funds. The Board and Officers may not commingle the
Company's funds with the funds of any Unitholders or Managers.

<PAGE>
                                      -43-

     SECTION 8.6 Auditors. The Company's independent auditors shall be a
nationally-recognized accounting firm appointed by the Board from time to time
in accordance with Section 5.3(g), and shall initially be KPMG LLP.

                                   ARTICLE IX

                                      TAXES

     SECTION 9.1 Tax Returns. The Company shall prepare and file all necessary
federal, state and local income tax returns, including making the elections
described in Section 9.2. Each Unitholder shall furnish to the Company all
pertinent information in its possession relating to Company operations that is
necessary to enable the Company's income tax returns to be prepared and filed.

     SECTION 9.2 Tax Elections. The Company shall make any election the Company
may deem appropriate and in the best interests of the Unitholders.

     SECTION 9.3 Tax Matters Partner. DaimlerChrysler shall be the "tax matters
partner" of the Company pursuant to Section 6231(a)(7) of the Code (the "Tax
Matters Partner"). The Tax Matters Partner shall take such action as may be
necessary to cause each other Unitholder to become a "notice partner" within the
meaning of Section 6223 of the Code. The Tax Matters Partner shall inform each
other Unitholder of all significant matters that may come to its attention in
its capacity as Tax Matters Partner by giving notice thereof on or before the
thirtieth (30th) business day after becoming aware thereof and, within that
time, shall forward to each other Unitholder copies of all significant written
communications he may receive in that capacity. The Tax Matters Partner may not
take any action contemplated by Sections 6222 through 6232 of the Code without
the consent of the Board, but this sentence does not authorize the Tax Matters
Partner (or any Manager) to take any action left to the determination of an
individual Unitholder under Sections 6222 through 6232 of the Code.

                                    ARTICLE X

                              TRANSFER OF INTERESTS

     SECTION 10.1 Transfers by Unitholders.

     (a) No Unitholder shall Transfer any interest in any Units except in
compliance with this Article X. No Unitholder shall Transfer all or any part of
any interest of such Unitholder's Units unless each of the following conditions
is satisfied:

          (i) either (A) the Transfer is made to one or more Permitted
     Transferees of such Unitholder, (B) the Transfer has been approved by each
     other Unitholder, which approval may be withheld in such Unitholder's sole
     discretion or (C) the Transfer is made pursuant to Article XV;

<PAGE>
                                      -44-

          (ii) except with respect to a Transfer pursuant to Article XV, each
     transferee executes a counterpart to this Operating Agreement pursuant to
     which such transferee shall agree to be bound by the provisions of this
     Operating Agreement; and

          (iii) the Transfer otherwise complies with the provisions of this
     Operating Agreement and applicable Laws, including federal and state
     securities Laws.

     (b) If any Unitholder that is a wholly-owned Subsidiary of Metaldyne or
DaimlerChrysler ceases to be a wholly-owned Subsidiary of Metaldyne or
DaimlerChrysler, as the case may be, such Unitholder shall Transfer, to a
Permitted Transferee of Metaldyne or DaimlerChrysler, as the case may be, all
the Units held by it, such Transfer to be effective no later than immediately
prior to the time at which such Unitholder ceases to be a wholly-owned
Subsidiary of Metaldyne or DaimlerChrysler, as the case may be.

     (c) Notwithstanding any of the provisions of this Operating Agreement, no
Transfer of Units shall in any way restrict or diminish any Unitholder's rights
with respect to the put options or call options set forth in Article XV.

     SECTION 10.2 Effect of Assignment.

     (a) Any Unitholder who shall assign any Units or other interest in the
Company shall cease to be a Unitholder of the Company with respect to such Units
or other interest and, except as expressly provided herein, shall no longer have
any rights or privileges of a Unitholder with respect to such Units or other
interest.

     (b) Any Person who acquires in any manner whatsoever any Units or other
interest in the Company, irrespective of whether such Person has accepted and
adopted in writing the terms and provisions of this Operating Agreement, shall
be deemed by the acceptance of the benefits of the acquisition thereof to have
agreed to be subject to and bound by all of the terms and conditions of this
Operating Agreement that any predecessor in such Units or other interest in the
Company of such Person was subject to or by which such predecessor was bound.

     SECTION 10.3 Restrictions on Transfer. In order to permit the Company to
qualify for the benefit of a "safe harbor" under Code Section 7704,
notwithstanding anything to the contrary in this Operating Agreement, no
Transfer of any Unit or economic interest shall be permitted or recognized by
the Company or the Board (within the meaning of Treasury Regulation Section
1.7704-1(d)) if and to the extent that such Transfer would cause the Company to
have more than 100 partners (within the meaning of Treasury Regulation Section
1.7704-1(h), including the look-through rule in Treasury Regulation Section
1.7704-1(h)(3)).

     SECTION 10.4 Transfer Fees and Expenses. The transferor and transferee of
any Units or other interest in the Company shall be jointly and severally
obligated to reimburse the Company for all reasonable expenses (including
attorneys' fees and expenses) of any Transfer or proposed Transfer, whether or
not consummated.

<PAGE>
                                      -45-

     SECTION 10.5 Void Transfers. Any Transfer by any Unitholder of any Units or
other interest in the Company in contravention of this Operating Agreement
(including, without limitation, the failure of the transferee to execute a
counterpart in accordance with Section 10.1(b)) or which would cause the Company
to not be treated as a partnership for U.S. federal income tax purposes shall be
void and ineffectual and shall not bind or be recognized by the Company or any
other party. No purported assignee shall have any right to any profits, losses
or distributions of the Company.

                                   ARTICLE XI

                            ADMISSION OF UNITHOLDERS

     SECTION 11.1 Substituted Unitholders. In connection with the Transfer of an
Interest of a Unitholder permitted under the terms of this Operating Agreement,
the transferee shall become a Substituted Unitholder on the effective date of
such Transfer, which effective date shall not be earlier than the date of
compliance with or waiver of the conditions to such Transfer (unless one of the
conditions to such Transfer is that Board or Unitholder approval is required for
the admission of such transferee, in which case such consent must first be
obtained), including executing counterparts of, and becoming a party to, this
Operating Agreement, and such admission shall be shown on the books and records
of the Company.

     SECTION 11.2 Additional Unitholders. Any Person to whom the Company issues
or sells Units in compliance with the terms of this Operating Agreement
(including, without limitation, Section 3.2(j)) may be admitted to the Company
as an Additional Unitholder upon furnishing to the Board (a) a letter of
acceptance, in form satisfactory to the Board, of all the terms and conditions
of this Operating Agreement, including the power of attorney granted in Section
18.1, and (b) such other documents or instruments as may be necessary or
appropriate to effect such Person's admission as a Unitholder. Such admission
shall become effective on the date on which the Board determines in its sole
discretion that such conditions have been satisfied and when any such admission
is shown on the books and records of the Company.

                                   ARTICLE XII

                    WITHDRAWAL AND RESIGNATION OF UNITHOLDERS

     SECTION 12.1 Withdrawal and Resignation of Unitholders. No Unitholder shall
have the power or right to withdraw or otherwise resign or be expelled from the
Company prior to the dissolution and winding up of the Company pursuant to this
Article XII, except as otherwise expressly permitted by this Operating
Agreement. Notwithstanding that payment on account of a withdrawal may be made
after the effective time of such withdrawal, any completely withdrawing
Unitholder will not be considered a Unitholder for any purpose after the
effective time of such complete withdrawal, and, in the case of a partial
withdrawal, such Unitholder's Capital Account (and corresponding voting and
other rights) shall be reduced for all other purposes hereunder upon the
effective time of such partial withdrawal.

<PAGE>
                                      -46-

     SECTION 12.2 Withdrawal of a Unitholder. No Unitholder shall have the power
or right to withdraw or otherwise resign from the Company except, simultaneous
with the Transfer of all of a Unitholder's Units in a Transfer permitted by this
Operating Agreement and, if such Transfer is to a person or entity that is not a
Unitholder, the admission of such person or entity as a Unitholder pursuant to
Section 11.1. Any purported resignation or withdrawal from the Company in
violation of this Article XII shall be void.

                                  ARTICLE XIII

                           DISSOLUTION AND LIQUIDATION

     SECTION 13.1 Dissolution. The Company shall not be dissolved by the
admission of Additional Unitholders or Substituted Unitholders, or by the death,
retirement, expulsion, bankruptcy or dissolution of a Unitholder or the
occurrence of any other event that terminates the continued membership of a
Unitholder in the Company. The Company may be dissolved, and its affairs may be
wound up, at any time by a determination of the Board. The Company shall be
dissolved, and its affairs shall be wound up, upon the entry of a decree of
judicial dissolution of the Company under Section 18-802 of the Delaware Act or
an administrative dissolution under Section 18-801 of the Delaware Act. Except
as otherwise set forth in this Article XIII, the Company is intended to have
perpetual existence.

     SECTION 13.2 Liquidation and Termination.

     (a) On dissolution of the Company, the Board shall act as liquidator or may
appoint one or more representatives or Unitholders as liquidator. The
liquidators shall proceed diligently to wind up the affairs of the Company, sell
all or any portion of the Company assets for cash or cash equivalents as they
deem appropriate, and make final distributions as provided herein and in the
Delaware Act. The costs of liquidation shall be borne as a Company expense.
Until final distribution, the liquidators shall continue to operate the Company
properties with all of the power and authority of the Board, without further
authorization or consent. The liquidators shall pay, satisfy, or discharge from
Company funds all of the debts, liabilities and obligations of the Company
(including all expenses incurred in liquidation) or otherwise make adequate
provision for payment and discharge thereof (including the establishment of a
cash fund for contingent liabilities in such amount and for such term as the
liquidators may reasonably determine) and shall promptly distribute the
remaining assets to the holders of Units in accordance with Section 4.1(a). Any
non-cash assets will first be written up or down to their Fair Market Value,
thus creating Profit or Loss (if any), which shall be allocated in accordance
with Sections 4.2 and 4.3. In making such distributions, the liquidators shall
allocate each type of asset (i.e., cash, cash equivalents, securities, etc.)
among the Unitholders ratably based upon the aggregate amounts to be distributed
with respect to the Units held by each such Unitholder. Any such distributions
in kind shall be subject to (i) such conditions relating to the disposition and
management of such assets as the liquidators deem reasonable and equitable and
(ii) the terms and conditions of any agreement governing such assets (or the
operation thereof or the holders thereof) at such time. The amount of the
distribution of any asset in kind shall be the Fair Market Value of such asset
reduced (but not below zero) by any liability encumbering such asset or to which
such asset is subject.

<PAGE>
                                      -47-

     (b) The distribution of cash and/or property to a Unitholder in accordance
with the provisions of this Section 13.2 constitutes a complete return to the
Unitholder of its Capital Contributions and a complete distribution to the
Unitholder of its interest in the Company and all the Company's property and
constitutes a compromise to which all Unitholders have consented within the
meaning of the Delaware Act. To the extent that a Unitholder is required to
return funds to the Company pursuant to this Operating Agreement or applicable
Law, such Unitholder shall have no claim against any other Unitholder for those
funds.

     SECTION 13.3 Cancellation of Certificate. On completion of the distribution
of Company assets as provided herein, the Company shall be terminated (and the
Company shall not be terminated prior to such time), and the Board (or such
other Person or Persons as the Delaware Act may require or permit) shall file a
certificate of cancellation with the Secretary of State of Delaware, cancel any
other filings made pursuant to this Operating Agreement that are or should be
canceled, and take such other actions as may be necessary to terminate the
Company. The Company shall be deemed to continue in existence for all purposes
of this Operating Agreement until it is terminated pursuant to this Section
13.3.

     SECTION 13.4 Reasonable Time for Winding Up. A reasonable time shall be
allowed for the orderly winding up of the business and affairs of the Company in
light of prevailing market conditions and the liquidation of its assets pursuant
to Section 13.2 in order to minimize any losses otherwise attendant upon such
winding up.

     SECTION 13.5 Return of Capital. The liquidators shall not be personally
liable for the return of Capital Contributions or any portion thereof to the
Unitholders (it being understood that any such return shall be made solely from
Company assets).

     SECTION 13.6 Reserves Against Distributions. The Board shall have the right
to withhold from Distributions payable to any Unitholder under this Operating
Agreement (other than Tax Distributions) amounts sufficient to pay and discharge
any reasonably anticipated contingent liabilities of the Company. Any amounts
remaining after payment and discharge of any such contingent liabilities of the
Company will be paid to the Unitholders from whom the Distributions were
withheld.

                                   ARTICLE XIV

                                    VALUATION

     SECTION 14.1 Determination. Subject to Sections 4.5 and 14.2, the Fair
Market Value of the assets of the Company will be determined by the Board (or,
if pursuant to Section 13.2, the liquidators) in its good faith judgment in such
manner as its deems reasonable and using all factors, information and data
deemed to be pertinent.

     SECTION 14.2 Fair Market Value. For purposes of this Operating Agreement,
the "Fair Market Value" of (i) a specific Company asset will mean the amount
which the Company would receive in an all-cash sale of such asset (assuming that
the asset is free and clear of all Liens) in an arm's-length transaction with an
unaffiliated third party consummated on the day immediately pre-

<PAGE>
                                      -48-

ceding the date on which the event occurred which necessitated the determination
of the Fair Market Value (and after giving effect to any transfer taxes payable
in connection with such sale); and (ii) the Company will mean the amount which
the Company would receive in an all-cash sale of all of its assets and
businesses as a going concern (free and clear of all Liens and after payment of
indebtedness for borrowed money) in an arm's-length transaction with an
unaffiliated third party consummated on the day immediately preceding the date
on which the event occurred which necessitated the determination of the Fair
Market Value (assuming that all of the proceeds from such sale were paid
directly to the Company other than an amount of such proceeds necessary to pay
transfer taxes payable in connection with such sale, which amount will not be
received or deemed received by the Company). After a determination of the Fair
Market Value of the Company is made as provided above, the Fair Market Value of
a Unit will be determined by making a calculation reflecting the cash
distributions which would be made to the Unitholders in accordance with this
Operating Agreement in respect of such Unit if the Company were deemed to have
received such Fair Market Value in cash and then distributed the same to the
Unitholders in accordance with the terms of this Operating Agreement incident to
the liquidation of the Company after payment to all of the Company's creditors
from such cash receipts other than payments to creditors who hold evidence of
indebtedness for borrowed money, the payment of which is already reflected in
the calculation of the Fair Market Value of the Company, and assuming that all
of the convertible debt and other convertible securities were repaid or
converted (whichever yields more cash to the holders of such convertible
securities) and all options to acquire Units (whether or not currently
exercisable) that have an exercise price below the Fair Market Value of such
Units were exercised and the exercise price therefor paid. Except as otherwise
provided herein or in any agreement, document or instrument contemplated hereby,
any amount to be paid under this Operating Agreement by reference to the Fair
Market Value shall be paid in full in cash, and any Unit being transferred in
exchange therefor will be transferred free and clear of all Liens.

                                   ARTICLE XV

                              CALL AND PUT OPTIONS

     SECTION 15.1 Metaldyne Call Option.

     (a) General. Metaldyne shall have the right, but not the obligation, to
purchase all, but not less than all, of the outstanding Class A Units and Class
B Units held by the other Unitholders (and their respective transferees) on the
terms and subject to the conditions set forth in this Section 15.1 (the
"Metaldyne Call Option").

     (b) Conditions to Exercise. Subject to Section 15.4, Metaldyne shall have
the right to exercise the Metaldyne Call Option at any time after the Qualified
Collective Bargaining Agreement Date.

     (c) Purchase Prices.

          (i) Class A Units. The aggregate purchase price for the Class A Units
     shall be $30,000,000 (the "Class A Units Purchase Price"). The Class A
     Units Purchase Price shall be payable

<PAGE>
                                      -49-

     at the Metaldyne Call Option Closing in cash by wire transfer of
     immediately available funds to a single account designated in writing by
     DaimlerChrysler (who shall act as paying agent for all Class A Unitholders)
     at least one Business Day prior to the Metaldyne Call Option Closing.

          (ii) Class B Units. The aggregate purchase price for the Class B Units
     shall be $185,000,000 the "Class B Units Purchase Price"). The Class B
     Units Purchase Price shall be payable at the Metaldyne Call Option Closing
     as follows: (A) 48% of the Class B Units Purchase Price shall be payable in
     cash by wire transfer of immediately available funds to a single account
     designated in writing by DaimlerChrysler (who shall act as paying agent for
     all Class B Unitholders) at least one Business Day prior to the Metaldyne
     Call Option Closing; and (B) the remainder of the Class B Units Purchase
     Price shall be payable in (1) Senior Subordinated Notes having an aggregate
     stated principal amount equal to 17.16% of the Class B Units Purchase Price
     and (2) Series A-1 Preferred Stock having an aggregate stated liquidation
     preference equal to 34.84% of the Class B Units Purchase Price.

     (d) Exercise and Closing.

          (i) Metaldyne shall exercise the Metaldyne Call Option (provided that
     the Metaldyne Call Option has not been suspended or terminated pursuant to
     Section 15.4) by delivering to DaimlerChrysler (as representative of all
     Class A Unitholders and Class B Unitholders) written notice of the exercise
     of the Metaldyne Call Option (the "Metaldyne Call Option Notice"). The date
     on which DaimlerChrysler receives the Metaldyne Call Option Notice shall be
     referred to as the "Metaldyne Call Option Notice Date".

          (ii) Promptly following the exercise of the Metaldyne Call Option
     pursuant to Section 15.1(d)(i), each of Metaldyne and the other Unitholders
     will use their commercially reasonable efforts to cause the Metaldyne Call
     Option Closing (as defined below) to occur pursuant to the terms of this
     Section 15.1.

          (iii) Promptly following the exercise of the Metaldyne Call Option
     pursuant to Section 15.1(d)(i), each of Metaldyne and the other Unitholders
     shall: (A) (1) make, or cause to be made, an appropriate filing of a
     notification and report form if required pursuant to the HSR Act or any
     other Competition Law (as defined below) with respect to the consummation
     of the Metaldyne Call Option as promptly as practicable after the Metaldyne
     Call Option Notice Date, (2) supply as promptly as practicable any
     additional information and documentary material that may be requested
     pursuant to the HSR Act or any other Competition Law and (3) otherwise use
     its commercially reasonable efforts to obtain clearance and to cause the
     expiration or termination of the applicable waiting periods thereunder as
     soon as practicable after the Metaldyne Call Option Notice Date; and (B)
     use its commercially reasonable efforts to (1) cooperate in all respects
     with each other in connection with any filing or submission and in
     connection with any investigation or other inquiry, including any
     proceeding initiated by any private party, (2) promptly inform the other
     parties of any communication received by such party from, or given by such
     party to, the Antitrust Division of the U.S. Department of Justice (the
     "DOJ"), the U.S. Federal Trade Commission (the "FTC") or any other
     Governmental Authority and of any material communication received or given
     in connection with any proceeding by a private party, in each case,
     regarding the consummation of the Metaldyne Call Option, and (3) per-

<PAGE>
                                      -50-

     mit the other parties to review any communication given by it to, and
     consult with one another in advance of any meeting or conference with, the
     DOJ, the FTC or any such other Governmental Authority or, in connection
     with any proceeding by a private party, with any other Person and, to the
     extent appropriate or permitted by the DOJ, the FTC or such other
     applicable Governmental Authority or such other Person, give the other
     parties the opportunity to attend and participate in such meetings and
     conferences. Subject to the terms and conditions of this Article XV, in
     furtherance and not in limitation of the foregoing sentence, if any
     administrative or judicial action or proceeding, including any proceeding
     by a private party, is instituted or threatened to be instituted
     challenging the consummation of the Metaldyne Call Option as violative of
     the Sherman Act, as amended, the HSR Act, the Federal Trade Commission Act,
     as amended (collectively, "Competition Laws") (a "Regulatory Challenge"),
     each of Metaldyne and the other Unitholders shall cooperate in all respects
     with each other and use their respective commercially reasonable efforts in
     order to contest and resist any such Regulatory Challenge and to have
     vacated, lifted, reversed or overturned any decree, injunction or other
     order, whether temporary, preliminary or permanent, that is in effect and
     prohibits, prevents or restricts the consummation of the Metaldyne Call
     Option. Notwithstanding anything in this Section 15.1(d)(iii) to the
     contrary, only the matters listed in Section 15.1(e) shall be conditions to
     the parties' respective obligations to consummate the Metaldyne Call
     Option.

          (iv) The closing of the purchase of the Class A Units and the Class B
     Units pursuant to the Metaldyne Call Option (the "Metaldyne Call Option
     Closing") shall take place at the offices of DaimlerChrysler Corporation,
     1000 Chrysler Drive, Auburn Hills, Michigan, at 10:00 A.M. (local time) on
     the last Business Day of the calendar month in which the conditions set
     forth in Section 15.1(e) are satisfied or waived (other than conditions
     which by their nature are to be satisfied at closing, but subject to the
     satisfaction or waiver of such conditions), or at such other place, time or
     date as Metaldyne and DaimlerChrysler shall agree.

          (v) At the Metaldyne Call Option Closing:

               (A) Metaldyne shall deliver to DaimlerChrysler, in its capacity
          as paying agent or representative for the Class A Unitholders and the
          Class B Unitholders, as the case may be:

                    1. the Class A Units Purchase Price as provided in Section
               15.1(c)(i);

                    2. the cash portion of the Class B Units Purchase Price as
               provided in Section 15.1(c)(ii)(A);

                    3. $31,746,000 aggregate principal amount of Senior
               Subordinated Notes (the "Notes"), in such denominations and
               registered in such names as shall be designated in writing by
               DaimlerChrysler at least one Business Day prior to the Metaldyne
               Call Option Closing;

                    4. one or more certificates representing $64,454,000
               aggregate liquidation preference of Series A-1 Preferred Stock
               (the "Shares"), in such denominations and registered in such
               names as shall be designated in writing by DaimlerChrysler at
               least one Business Day prior to the Metaldyne Call Option
               Closing;

<PAGE>
                                      -51-

                    5. a duly executed counterpart of the Securities Purchase
               Agreement;

                    6. a duly executed counterpart of the Series A-1 Preferred
               Stock Investor Rights Agreement;

                    7. a duly executed counterpart of the Senior Subordinated
               Notes Registration Rights Agreement;

                    8. a duly executed counterpart of the Indenture;

                    9. a certified copy of the Certificate of Designations
               certified by the Secretary of State of the State of Delaware; and

                    10. an opinion of Cahill Gordon & Reindel, substantially in
               the form of Exhibit G.

               (B) Each Class A Unitholder shall deliver to Metaldyne:

                    1. all certificates representing such Class A Unitholder's
               Class A Units, duly endorsed for the transfer of such Class A
               Units to Metaldyne; and

                    2. a duly executed counterpart of the Securities Purchase
               Agreement.

               (C) Each Class B Unitholder shall deliver to Metaldyne:

                    1. all certificates representing such Class B Unitholder's
               Class B Units, duly endorsed for the transfer of such Class B
               Units to Metaldyne;

                    2. a duly executed counterpart of the Securities Purchase
               Agreement;

                    3. a duly executed counterpart of the Series A-1 Preferred
               Stock Investor Rights Agreement;

                    4. a duly executed counterpart of the Senior Subordinated
               Notes Registration Rights Agreement; and

                    5. a duly executed counterpart of the Indenture.

               (D) DaimlerChrysler and the Company shall deliver to each other
          duly executed counterparts of the Transition Services Agreement.

     (e) Closing Conditions.

          (i) The obligation of each of Metaldyne, the Class A Unitholders and
     the Class B Unitholders to consummate the Metaldyne Call Option Closing
     shall be subject to the satisfaction, or waiver by

<PAGE>
                                      -52-

     each of them (to the extent permitted by applicable Law), at or prior to
     the date of the Metaldyne Call Option Closing, of the following conditions:

               (A) any waiting periods (or extensions thereof) applicable to the
          consummation of the Metaldyne Call Option under the HSR Act shall have
          expired or been terminated, and each of Metaldyne, the Class A
          Unitholders and the Class B Unitholders shall have made or obtained
          all Governmental Approvals under any other applicable Competition
          Laws; and

               (B) No applicable Law, temporary restraining order, preliminary
          or permanent injunction or other judgment or order issued by any court
          of competent jurisdiction or other Governmental Authority shall be in
          effect preventing the consummation of the Metaldyne Call Option in any
          material respect or imposing any material limitation on the ability of
          Metaldyne to receive or own the Units of the Company or of the Company
          to own its assets or to operate the Business. No action, suit or
          proceeding shall have been instituted, or shall be pending or
          threatened, by a Governmental Authority seeking to restrain or
          prohibit the consummation of Metaldyne Call Option in any material
          respect or to impose any material limitation on the ability of
          Metaldyne to receive or own the Units of the Company or of the Company
          to own its assets or to operate the Business.

          (ii) The obligation of Metaldyne to consummate the Metaldyne Call
     Option Closing shall be subject to the satisfaction, or waiver by Metaldyne
     (to the extent permitted by applicable Law), at or prior to the date of the
     Metaldyne Call Option Closing, of the following conditions:

               (A) each of the Class A Unitholders (other than Metaldyne or any
          of its Affiliates) and the Class B Unitholders shall have performed
          and complied with in all material respects all of its material
          covenants, obligations and agreements contained in this Operating
          Agreement to be performed and complied with by it at or prior to the
          Metaldyne Call Option Closing, including, without limitation, Sections
          15.1(d)(v)(B), (C) and (D);

               (B) DaimlerChrysler shall not be in material breach of, or be in
          material default under, any of its material obligations to Metaldyne
          or the Company under any of the Transaction Documents to which
          Metaldyne or the Company is a party;

               (C) all Governmental Approvals set forth on Exhibit J shall have
          been obtained;

               (D) no strike or other material work stoppage or material
          disruption of operations by employees at the Facility shall have
          occurred and be continuing, and no claim, charge, grievance, lawsuit
          or action of any kind shall have been asserted which challenges the
          rights to enter into or implement, or the legal enforceability of, the
          International Qualified Collective Bargaining Agreement, the Local
          Qualified Collective Bargaining Agreements or the Leased Employees
          Qualified Collective Bargaining Agreements by the UAW and which has a
          reasonable possibility of being successful on its merits; and

               (E) no Company Material Adverse Change shall have occurred since
          the date of this Operating Agreement and be continuing, and no event
          shall have occurred which would

<PAGE>
                                      -53-

          reasonably be expected to have, individually or in the aggregate, a
          Company Material Adverse Effect.

          (iii) The obligation of the Class A Unitholders (other than Metaldyne
     or any of its Affiliates) and the Class B Unitholders to consummate the
     Metaldyne Call Option Closing shall be subject to the satisfaction, or
     waiver by DaimlerChrysler (who shall act as representative of the
     Unitholders) (to the extent permitted by applicable Law), at or prior to
     the date of the Metaldyne Call Option Closing, of the following conditions:

               (A) Metaldyne shall have performed and complied with in all
          material respects all of its covenants, obligations and agreements
          contained in this Operating Agreement to be performed and complied
          with by it at or prior to the Metaldyne Call Option Closing,
          including, without limitation, Section 15.1(d)(v)(A);

               (B) Metaldyne shall not be in material breach of, or be in
          material default under, any of its material obligations to
          DaimlerChrysler under any of the Transaction Documents to which
          Metaldyne is a party;

               (C) Metaldyne shall have sufficient funds available to pay the
          Class A Units Purchase Price and the cash portion of the Class B Units
          Purchase Price to DaimlerChrysler at the Metaldyne Call Option
          Closing, and shall have all requisite authorizations and consents to
          issue and deliver the Notes and the Shares to DaimlerChrysler at the
          Metaldyne Call Option Closing; and

               (D) no Metaldyne Material Adverse Change shall have occurred
          since the date of this Operating Agreement and be continuing, and no
          event shall have occurred which would reasonably be expected to have,
          individually or in the aggregate, a Metaldyne Material Adverse Effect.

     (f) Rescission of Exercise.

          (i) Metaldyne may rescind its exercise of the Metaldyne Call Option at
     any time prior to the consummation of the Metaldyne Call Option Closing:

               (A) with the written consent of each Class A Unitholder and Class
          B Unitholder; or

               (B) if the Metaldyne Call Option Closing has not occurred on or
          before the 120th day following the Metaldyne Call Option Notice Date
          and any of the conditions to Metaldyne's obligations set forth in
          Section 15.1(e)(i) or 15.1(e)(ii) have not been satisfied or waived,
          provided that such failure is not attributable to a willful or
          intentional act or omission by Metaldyne; or

               (C) if the Metaldyne Call Option Closing has not occurred on or
          before the 210th day following the Metaldyne Call Option Notice Date
          for any reason; provided that such failure is not attributable to a
          willful or intentional act or omission by Metaldyne.

<PAGE>
                                      -54-

          (ii) Any Unitholder (other than Metaldyne or any of its Affiliates)
     may rescind the exercise of the Metaldyne Call Option at any time prior to
     the consummation of the Metaldyne Call Option Closing:

               (A) with the written consent of Metaldyne; or

               (B) if the Metaldyne Call Option Closing has not occurred on or
          before the 120th day following the Metaldyne Call Option Notice Date
          and any of the conditions to the Unitholders' obligations set forth in
          Section 15.1(e)(i) or 15.1(e)(iii) have not been satisfied or waived,
          provided that such failure is not attributable to a willful or
          intentional act or omission by such Unitholder; or

               (C) if the Metaldyne Call Option Closing has not occurred on or
          before the 210th day following the Metaldyne Call Option Notice Date
          for any reason; provided that such failure is not attributable to a
          willful or intentional act or omission by such Unitholder.

     SECTION 15.2 Metaldyne Put Option.

     (a) General. Metaldyne (and its transferees) shall have the right, but not
the obligation, to sell all, but not less than all, of its Class A Units to
DaimlerChrysler on the terms and subject to the conditions set forth in this
Section 15.2 (the "Metaldyne Put Option").

     (b) Conditions to Exercise. Subject to Section 15.4, Metaldyne (or such
transferees) shall have the right to exercise the Metaldyne Put Option:

          (i) at any time after January 31, 2004 if the Qualified Collective
     Bargaining Agreement Date has not occurred on or prior to January 31, 2004;
     or

          (ii) at any time after the rescission of any exercise of the Metaldyne
     Call Option in accordance with Section 15.1(f) other than the rescission of
     such exercise due to Metaldyne's failure to satisfy the condition set forth
     in Section 15.1(e)(iii)(C); or

          (iii) at any time after the Qualified Collective Bargaining Agreement
     Date and before Metaldyne exercises the Metaldyne Call Option pursuant to
     Section 15.1(d)(i) if the financial information required by Section 8.12 of
     the Formation Agreement to have been delivered to Metaldyne prior to the
     later of the Qualified Collective Bargaining Agreement Date or the date
     required by Section 8.12 of the Formation Agreement has not been delivered
     to Metaldyne.

     (c) Sale Price. The aggregate sale price for Metaldyne's Class A Units
shall be equal to $20,000,000. Such purchase price shall be payable by
DaimlerChrysler at the Metaldyne Put Option Closing by wire transfer of
immediately available funds to a single account designated in writing by
Metaldyne at least one Business Day prior to the Metaldyne Put Option Closing
Date.

<PAGE>
                                      -55-

     (d) Exercise and Closing.

          (i) Metaldyne shall exercise the Metaldyne Put Option (provided that
     the Metaldyne Put Option has not been suspended or terminated pursuant to
     Section 15.4) by delivering to DaimlerChrysler written notice of the
     exercise of the Metaldyne Put Option. The closing of the sale of
     Metaldyne's Class A Units to DaimlerChrysler pursuant to the Metaldyne Put
     Option (the "Metaldyne Put Option Closing") shall take place at the offices
     of DaimlerChrysler Corporation, 1000 Chrysler Drive, Auburn Hills, Michigan
     at 10:00 A.M. (local time) on the closing date specified in such notice,
     which closing date shall not be earlier than ten (10) Business Days nor
     later than twenty (20) Business Days following the date of such notice, or
     at such other place, time or date as Metaldyne and DaimlerChrysler shall
     agree.

          (ii) At the Metaldyne Put Option Closing, DaimlerChrysler shall
     deliver to Metaldyne the purchase price for Metaldyne's Class A Units as
     provided in Section 15.2(c);

          (iii) At the Metaldyne Put Option Closing, Metaldyne shall deliver to
     DaimlerChrysler:

               (A) all certificates representing Metaldyne's Class A Units, duly
          endorsed for the transfer of such Class A Units to DaimlerChrysler;
          and

               (B) a duly executed Letter of Representations, substantially in
          the form attached hereto as Exhibit K (the "Letter of
          Representations").

     (e) Rescission of Exercise. Metaldyne may rescind its exercise of the
Metaldyne Put Option at any time prior to the consummation of the Metaldyne Put
Option Closing.

     SECTION 15.3 DaimlerChrysler Call Option.

     (a) General. DaimlerChrysler shall have the right, but not the obligation,
to purchase all, but not less than all, of Metaldyne's (and its transferees)
Class A Units on the terms and subject to the conditions set forth in this
Section 15.3 (the "DaimlerChrysler Call Option").

     (b) Conditions to Exercise. Subject to Section 15.4, DaimlerChrysler shall
have the right to exercise the DaimlerChrysler Call Option:

          (i) at any time after the 20th Business Day following the Qualified
     Collective Bargaining Agreement Date if Metaldyne did not exercise the
     Metaldyne Call Option on or prior to such 20th Business Day; or

          (ii) at any time after the rescission of any exercise of the Metaldyne
     Call Option in accordance with Section 15.1(f); or

          (iii) at any time after January 31, 2004 if the Qualified Collective
     Bargaining Agreement Date has not occurred on or prior to January 31, 2004;
     or

          (iv) upon a Change of Control of Metaldyne.

<PAGE>
                                      -56-

     (c) Purchase Price. In the event the DaimlerChrysler Call Option is
exercised (i) pursuant to Section 15.3(b)(i) or (ii) pursuant to Section
15.3(b)(ii) where the rescission of the exercise of the Metaldyne Call Option
was due to Metaldyne's failure to satisfy the condition set forth in Section
15.1(e)(iii)(C) (other than due to DaimlerChrysler's failure to timely provide
to Metaldyne the financial information required by Section 8.12 of the Formation
Agreement), the aggregate purchase price for Metaldyne's Class A Units shall be
$1.00. Except as provided in the immediately preceding sentence, in the event
the DaimlerChrysler Call Option is exercised pursuant to Section 15.3(b)(ii),
(iii) or (iv), the aggregate purchase price for Metaldyne's Class A Units shall
be $20,000,000. Such purchase price shall be payable at the DaimlerChrysler Call
Option Closing by wire transfer of immediately available funds to a single
account designated in writing by Metaldyne at least one Business Day prior to
the DaimlerChrysler Call Option Closing Date.

     (d) Exercise and Closing.

          (i) DaimlerChrysler shall exercise the DaimlerChrysler Call Option by
     delivering to Metaldyne written notice of the exercise of the
     DaimlerChrysler Call Option. The closing of the purchase of Metaldyne's
     Class A Units by DaimlerChrysler pursuant to the DaimlerChrysler Call
     Option (the "DaimlerChrysler Call Option Closing") shall take place at the
     offices of DaimlerChrysler Corporation, 1000 Chrysler Drive, Auburn Hills,
     Michigan at 10:00 A.M. (local time) on the closing date specified in such
     notice, which closing date shall not be earlier than ten (10) Business Days
     nor later than twenty (20) Business Days following the date of such notice,
     or at such other place, time or date as Metaldyne and DaimlerChrysler shall
     agree.

          (ii) At the DaimlerChrysler Call Option Closing, DaimlerChrysler shall
     deliver to Metaldyne the applicable purchase price for Metaldyne's Class A
     Units as provided in Section 15.3(c).

          (iii) At the DaimlerChrysler Call Option Closing, Metaldyne shall
     deliver to DaimlerChrysler:

               (A) all certificates representing Metaldyne's Class A Units, duly
          endorsed for the transfer of such Class A Units to DaimlerChrysler;
          and

               (B) a duly executed Letter of Representations.

     (e) Rescission of Exercise. DaimlerChrysler may rescind its exercise of the
DaimlerChrysler Call Option at any time prior to the consummation of the
DaimlerChrysler Call Option Closing.

     (f) Sole Remedy. The right of DaimlerChrysler to exercise and close the
DaimlerChrysler Call Option on the terms and conditions set forth in this
Section 15.3 shall be the sole and exclusive remedy of DaimlerChrysler and its
successors and assigns with respect to the failure by Metaldyne to exercise or
close the Metaldyne Call Option or the Metaldyne Put Option pursuant to Section
15.1 or 15.2 or any breach by Metaldyne of its obligations under this Article
XV.

<PAGE>
                                      -57-

     SECTION 15.4 Suspension and Termination of Call and Put Options.
Notwithstanding any other provision of this Article XV:

          (a) The Metaldyne Call Option shall not be exercisable if (i)
     Metaldyne has exercised the Metaldyne Put Option (and such exercise has not
     been rescinded) in accordance with Section 15.2 or (ii) DaimlerChrysler has
     exercised the DaimlerChrysler Call Option (and such exercise has not been
     rescinded) in accordance with Section 15.3. The Metaldyne Call Option shall
     terminate upon the occurrence of either the Metaldyne Put Option Closing or
     the DaimlerChrysler Call Option Closing.

          (b) The Metaldyne Put Option shall not be exercisable if (i) Metaldyne
     has exercised the Metaldyne Call Option (and such exercise has not been
     rescinded) in accordance with Section 15.1 or (ii) DaimlerChrysler has
     exercised the DaimlerChrysler Call Option (and such exercise has not been
     rescinded) in accordance with Section 15.3. The Metaldyne Put Option shall
     terminate upon the occurrence of either the Metaldyne Call Option Closing
     or the DaimlerChrysler Call Option Closing.

          (c) The DaimlerChrysler Call Option shall not be exercisable if (i)
     Metaldyne has exercised the Metaldyne Call Option (and such exercise has
     not been rescinded) in accordance with Section 15.1 (provided, however,
     that the DaimlerChrysler Call Option shall be exercisable upon a Change of
     Control of Metaldyne whether or not Metaldyne has exercised the Metaldyne
     Call Option (and such exercise has not be rescinded) in accordance with
     Section 15.1), (ii) Metaldyne has exercised the Metaldyne Put Option (and
     such exercise has not been rescinded) in accordance with Section 15.2 or
     (iii) (A) DaimlerChrysler has breached its obligation to timely provide to
     Metaldyne the financial information required by Section 8.12 of the
     Formation Agreement, (B) such breach relates to financial information that
     is required in order for Metaldyne to satisfy the condition set forth in
     Section 15.1(e)(iii)(C) or satisfy its Exchange Act reporting requirements
     and (C) not more than 90 days have elapsed since the first date on which
     the DaimlerChrysler Call Option would otherwise have become exercisable
     (without regard to this Section 15.4(c)(iii)) pursuant to Section 15.3(b).
     The DaimlerChrysler Call Option shall terminate upon the occurrence of
     either the Metaldyne Call Option Closing or the Metaldyne Put Option
     Closing.

                                   ARTICLE XVI

                     CERTAIN OBLIGATIONS OF DAIMLERCHRYSLER

     SECTION 16.1 Certain Obligations of DaimlerChrysler During JV Period.
During the JV Period, DaimlerChrysler shall:

          (a) fund all operating costs of the Company consistent with the
     Company's Operating Budget and Capital Plan, as well as any additional
     unforeseen operating costs of the Company necessary to operate the Business
     and the Transferred Assets in the ordinary course of business, consistent
     with past practice or as may be required to enable Metaldyne to fulfill its
     obligations under the Supply Agreement as of the JV Termination Date;

<PAGE>
                                      -58-

          (b) fund all capital expenditures of the Company consistent with the
     Company's Operating Budget and Capital Plan, as well as any additional
     unforeseen capital expenditures of the Company necessary to operate the
     Business and the Transferred Assets in the ordinary course of business,
     consistent with past practice or as may be required to enable Metaldyne to
     fulfill its obligations under the Supply Agreement as of the JV Termination
     Date;

          (c) use its commercially reasonable efforts to preserve intact its
     current relationships and pricing with suppliers to the Company; and

          (d) permit the Company in cooperation with Metaldyne to conduct and
     prepare a report of Inventory at December 31, 2002 and at June 30, 2003.

     SECTION 16.2 Certain Obligations of DaimlerChrysler During and After JV
Period. During and after the JV Period, without regard to any time limits,
DaimlerChrysler shall:

          (a) fund any capital expenditures contractually committed by the
     Company during the JV Period but billed to the Company after the JV Period;

          (b) fund any capital expenditure for the CS or LX program not funded
     during the JV Period but necessary for the production needs of
     DaimlerChrysler to the extent presently planned (the anticipated funding
     for these programs is as shown in the Operating Budget and Capital Plan);

          (c) satisfy directly, or reimburse the Company, for any and all
     Indebtedness or other liabilities or obligations of the Company as of the
     JV Termination Date, whether or not shown on the Final Balance Sheet,
     except for trade payables related to purchases of Inventory shown on the
     Final Balance Sheet; and

          (d) if requested by Metaldyne within one (1) year following the
     Metaldyne Call Option Closing Date, terminate the ICD tooling contract with
     the Company at no economic cost to the Company or Metaldyne.

     If any of the obligations set forth in this Section 16.2 arise after JV
Termination Date, the Company will notify DaimlerChrysler and DaimlerChrysler
shall promptly satisfy directly, or reimburse the Company, in cash for such
obligation.

     SECTION 16.3 Additional Contributions. Any and all out-of-pocket
expenditures made by DaimlerChrysler to or on behalf of the Company pursuant to
Sections 16.1 and 16.2 during the JV Period shall be deemed to be additional
Capital Contributions ("Additional Contributions").

                                  ARTICLE XVII

                         NET WORKING CAPITAL ADJUSTMENT

     SECTION 17.1 Net Working Capital Adjustment. Within sixty (60) days after
the Metaldyne Call Option Closing, Metaldyne shall prepare and deliver to
DaimlerChrysler a draft balance

<PAGE>
                                      -59-

sheet of the Company as of the date of the Metaldyne Call Option Closing (the
"Final Balance Sheet"), which shall be prepared in accordance with the
principles set forth on Schedule 2.7 to the Formation Agreement, and a draft
calculation of the Final Net Working Capital based on such draft Final Balance
Sheet.

     DaimlerChrysler shall have a period of twenty (20) days following receipt
of the draft Final Balance Sheet and the draft calculation of the Final Net
Working Capital from Metaldyne within which to review the draft Final Balance
Sheet and the draft calculation of the Final Net Working Capital. If
DaimlerChrysler has any objections to the draft Final Balance Sheet and/or the
draft calculation of the Final Net Working Capital, it will deliver to Metaldyne
a detailed statement describing such objections (the "DaimlerChrysler Objection
Notice") within such twenty (20) day review period. DaimlerChrysler and
Metaldyne will use their respective commercially reasonable efforts to resolve
any such objections set forth in the DaimlerChrysler Objection Notice. If a
final resolution is not obtained within a period of twenty (20) days following
delivery of a DaimlerChrysler Objection Notice, DaimlerChrysler and Metaldyne
will select and jointly engage a nationally-recognized accounting firm mutually
acceptable to them (the "Accountant") to resolve any remaining objections. If
DaimlerChrysler and Metaldyne are unable to agree on the choice of an accounting
firm, they will select a nationally-recognized accounting firm by lot (after
excluding their respective independent public accountants). The Accountant shall
promptly, but in no event later than twenty (20) days following its engagement
by DaimlerChrysler and Metaldyne, deliver to DaimlerChrysler and Metaldyne its
decision as to any remaining objections set forth in the DaimlerChrysler
Objection Notice. The decision of the Accountant shall be final and binding on
DaimlerChrysler and Metaldyne.

     Metaldyne will revise the draft Final Balance Sheet and the draft
calculation of the Final Net Working Capital as appropriate to reflect the
resolution of any objections set forth in the DaimlerChrysler Objection Notice
(as agreed upon by DaimlerChrysler and Metaldyne or as determined by the
Accountant) and deliver them to DaimlerChrysler within twenty (20) days after
the final resolution of such objections. Such revised drafts shall be the Final
Balance Sheet and the Final Net Working Capital, respectively.

     In the event that the Final Net Working Capital is less than zero, the
Company shall assign to DaimlerChrysler, and DaimlerChrysler shall assume from
the Company, trade payables in the amount of such shortfall within 20 days
following the final resolution of the Final Net Working Capital.

     If any unresolved objections are submitted to the Accountant for resolution
as provided above, the fees and expenses of the Accountant shall be borne 50% by
DaimlerChrysler and 50% by Metaldyne. Metaldyne will provide reasonable access
to the work papers necessary for the preparation of the Final Balance Sheet and
the calculation of the Final Net Working Capital to DaimlerChrysler and the
Accountant during the preparation of the Final Balance Sheet and the calculation
of the Final Net Working Capital by Metaldyne, the review by DaimlerChrysler of
the Final Balance Sheet and the calculation of the Final Net Working Capital,
and the resolution of any objections with respect thereto.

<PAGE>
                                      -60-

                                  ARTICLE XVIII

                               GENERAL PROVISIONS

     SECTION 18.1 Power of Attorney. (a) Each Unitholder hereby constitutes and
appoints each member of the Board and the liquidators, with full power of
substitution, as his true and lawful agent and attorney-in-fact, with full power
and authority in his or its name, place and stead, to execute, swear to,
acknowledge, deliver, file and record in the appropriate public offices (i) this
Operating Agreement, all certificates, and other instruments and all amendments
(in the manner set forth herein) thereof in accordance with the terms hereof
which the Board deems appropriate or necessary to form, qualify, or continue the
qualification of, the Company as a limited liability company in the State of
Delaware and in all other jurisdictions in which the Company may conduct
business or own property; (ii) all conveyances and other instruments or
documents which the Board deems appropriate or necessary to reflect the
dissolution and liquidation of the Company pursuant to the terms of this
Operating Agreement, including a certificate of cancellation; and (iii) all
instruments relating to the admission withdrawal, or substitution of any
Unitholder pursuant to Articles XI and XII.

     (b) The foregoing power of attorney is irrevocable and coupled with an
interest, and shall survive the death, disability, incapacity, dissolution,
bankruptcy, insolvency, or termination of any Unitholder and the Transfer of all
or any portion of his or its Interest and shall extend to such Unitholder's
heirs, successors, assigns, and personal representatives.

     SECTION 18.2 Amendments. This Operating Agreement may be amended from time
to time by a written instrument by the holders of at least 66 2/3% of the
outstanding Class A Units; provided that no amendment or modification pursuant
to this Section 18.2 that would adversely affect any class or series of Units in
a manner different than other classes or series of Units (as the case may be)
shall be effective against the holders of such class or series of Units (as the
case may be) without the prior written consent of holders of a majority of the
outstanding Units of such class so adversely affected thereby; provided,
further, that no amendment or modification pursuant to this Section 18.2 that
would affect the rights of a Unitholder or group of Unitholders specifically
granted such rights by name shall be modified without the consent of that
Unitholder (or a majority of that group of Unitholders).

     SECTION 18.3 Title to Company Assets. Company assets shall be deemed to be
owned solely by the Company as an entity, and no Unitholder, individually or
collectively, shall have any ownership interest in such Company assets or any
portion thereof. Legal title to any or all the Company assets may be held in the
name of the Company or one or more nominees, as the Board may determine. The
Board hereby declares and warrants that any Company assets for which legal title
is held in its name or the name of any nominee shall be held in trust by the
Board or such nominee for the use and benefit of the Company in accordance with
the provisions of this Operating Agreement. All Company assets shall be recorded
as the property of the Company on its books and records, irrespective of the
name in which legal title to such Company assets is held. The interests of
Unitholders in the Company shall constitute personal property.

<PAGE>
                                      -61-

     SECTION 18.4 Remedies. Each Unitholder and the Company shall have all
rights and remedies set forth in this Operating Agreement and all legal and
equitable rights and remedies which such Person has been granted at any time
under any other agreement or contract and all of the rights which such Person
has at law or in equity. Any Person having any rights under any provision of
this Operating Agreement or any other agreements contemplated hereby shall be
entitled to enforce such rights specifically (without posting a bond or other
security), to recover damages by reason of any breach of any provision of this
Operating Agreement and to exercise all other rights under applicable Law.

     SECTION 18.5 Successors and Assigns. All covenants and agreements contained
in this Operating Agreement shall bind and inure to the benefit of the parties
hereto and their respective heirs, executors, administrators, successors, legal
representatives and permitted assigns, whether so expressed or not.

     SECTION 18.6 Severability. Whenever possible, each provision of this
Operating Agreement will be interpreted in such manner as to be effective and
valid under applicable Law, but if any provision of this Operating Agreement is
held to be invalid, illegal or unenforceable in any respect under any applicable
Law or rule in any jurisdiction, such invalidity, illegality or unenforceability
will not affect any other provision or the effectiveness or validity of any
provision in any other jurisdiction, and this Operating Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

     SECTION 18.7 Notice to Unitholder of Provisions. By executing this
Operating Agreement, each Unitholder acknowledges that it has actual notice of
(a) all of the provisions hereof (including the restrictions on the transfer set
forth herein) and (b) all of the provisions of the Certificate.

     SECTION 18.8 Counterparts. This Operating Agreement may be executed
counterparts each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     SECTION 18.9 Consent to Jurisdiction; Waiver of Jury Trial. Each Unitholder
irrevocably and unconditionally submits to the exclusive jurisdiction of the
United States District Court for the State of Delaware and the state courts of
the State of Delaware for the purposes of any suit, action or other proceeding
arising out of this Operating Agreement or any transaction contemplated hereby.
Each Unitholder further agrees that service of any process, summons, notice or
document by United States certified or registered mail to such Unitholder's
respective address set forth in the Company's books and records or such other
address or to the attention of such other Person as the recipient party has
specified by prior written notice to the sending party shall be effective
service of process in any action, suit or proceeding in Delaware with respect to
any matters to which it has submitted to jurisdiction as set forth above in the
immediately preceding sentence. Each Unitholder irrevocably and unconditionally
waives any objection to the laying of venue of any action, suit or proceeding
arising out of this Operating Agreement or the transactions contemplated hereby
in the United States District Court for the State of Delaware or the state
courts of the State of Delaware and hereby irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such action,

<PAGE>
                                      -62-

suit or proceeding brought in such court has been brought in an inconvenient
forum. Each party agrees that a final judgment in any such suit, action or
proceeding brought in any such court shall be conclusive and binding upon such
party and may be enforced in any other courts to whose jurisdiction such party
is or may be subject, by suit upon judgment. THE PARTIES ALSO WAIVE ANY BOND OR
SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED
OF ANY OF THE OTHER PARTIES. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT
RELATE TO THE SUBJECT MATTER OF THIS OPERATING AGREEMENT, INCLUDING, WITHOUT
LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS. THE PARTIES ACKNOWLEDGE THAT THIS WAIVER IS A
MATERIAL INDUCEMENT TO ENTER INTO THIS OPERATING AGREEMENT, THAT EACH HAS
ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS OPERATING AGREEMENT AND THAT
EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE
PARTIES FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH
ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS OPERATING AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO
THE TRANSACTIONS COMPLETED HEREBY. IN THE EVENT OF LITIGATION, THIS OPERATING
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     SECTION 18.10 Descriptive Headings; Interpretation. The descriptive
headings of this Operating Agreement are inserted for convenience only and do
not constitute a substantive part of this Operating Agreement. Whenever required
by the context, any pronoun used in this Operating Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns, pronouns and verbs shall include the plural and vice versa. The use of
the word "including" in this Operating Agreement shall be by way of example
rather than by limitation. Reference to any agreement, document or instrument
means such agreement, document, or instrument as amended or otherwise modified
from time to time in accordance with the terms thereof, and if applicable
hereof. Without limiting the generality of the immediately preceding sentence,
no amendment or other modification to any agreement, document or instrument that
requires the consent of any Person pursuant to the terms of this Operating
Agreement or any other agreement will be given effect hereunder unless such
Person has consented in writing to such amendment or modification. Wherever
required by the context, references to a Fiscal Year shall refer to a portion
thereof. The use of the words "or," "either," and "any" shall not be exclusive.
The parties hereto have participated jointly in the negotiation and drafting of
this Operating Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Operating Agreement shall be construed as if drafted
jointly by the parties hereto, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Operating Agreement. Wherever a conflict exists between this
Operating Agreement and any other agreement, this Operating Agreement shall
control but solely to the extent of such conflict.

<PAGE>
                                      -63-

     SECTION 18.11 Applicable Law. This Operating Agreement shall be governed
by, and construed in accordance with, the Laws of the State of Delaware, without
giving effect to any choice of law or conflict of law rules or provisions
(whether of the State of Delaware or any other jurisdiction) that would cause
the application of the Laws of any jurisdiction other than the State of
Delaware. Any dispute relating hereto shall be heard in the state or federal
courts of Delaware, and the parties agree to jurisdiction and venue therein.

     SECTION 18.12 Addresses and Notices. All notices, requests, instructions,
demands, or other communications to be given or delivered under or by reason of
the provisions of this Operating Agreement shall be in writing and shall be
deemed to have been duly given or made (a) on the date of receipt if given in
person, (b) on the date of transmission if sent by telecopy or e-mail with
receipt of delivery confirmation, (c) three (3) Business Days after being
deposited in the U.S. mail, certified or registered mail (postage prepaid,
return receipt requested), or (d) one (1) Business Day following sending by
overnight delivery via an internationally recognized courier service, in each
case, to the applicable party at the following addresses or facsimile numbers
(or at such other address or facsimile number for a party as shall be specified
by like notice). Such notices, demands, and other communications shall be sent
to the address for such recipient set forth in the Company's books and records,
or to such other address or to the attention of such other Person as the
recipient party has specified by prior written notice to the sending party. Any
notice to the Board or the Company shall be deemed given if received by the
Board at the principal office of the Company designated pursuant to Section 2.5.

     SECTION 18.13 Creditors. None of the provisions of this Operating Agreement
shall be for the benefit of or enforceable by any creditors of the Company or
any of its Affiliates, and no creditor who makes a loan to the Company or any of
its Affiliates may have or acquire (except pursuant to the terms of a separate
agreement executed by the Company in favor of such creditor) at any time as a
result of making the loan any direct or indirect interest in Company Profits,
Losses, Distributions, capital or property other than as a secured creditor.

     SECTION 18.14 Waiver of Certain Rights. No failure by any party to insist
upon the strict performance of any covenant, duty, agreement, or condition of
this Operating Agreement or to exercise any right or remedy consequent upon a
breach thereof shall constitute a waiver of any such breach or any other
covenant, duty, agreement, or condition.

     SECTION 18.15 Further Action. The parties shall execute and deliver all
documents, provide all information, and take or refrain from taking such actions
as may be necessary or appropriate to achieve the purposes of this Operating
Agreement.

     SECTION 18.16 Entire Agreement. This Operating Agreement, those documents
expressly referred to herein, the other documents of even date herewith, and the
other Transaction Documents constitute the entire agreement and understanding
among the parties thereto and supersede and preempt any prior understandings,
agreements, representations or arrangements written, or oral, by or among the
parties hereto.

<PAGE>
                                      -64-

     SECTION 18.17 Delivery by Facsimile. This Operating Agreement, the
agreements referred to herein, and each other agreement or instrument entered
into in connection herewith or therewith or contemplated hereby or thereby, and
any amendments hereto or thereto, to the extent signed and delivered by means of
a facsimile machine, shall be treated in all manner and respects as an original
agreement or instrument and shall be considered to have the same binding legal
effect as if it were the original signed version thereof delivered in person. At
the request of any party hereto or to any such agreement or instrument, each
other party hereto or thereto shall re-execute original forms thereof and
deliver them to all other parties. No party hereto or to any such agreement or
instrument shall raise the use of a facsimile machine to deliver a signature or
the fact that any signature or agreement or instrument was transmitted or
communicated through the use of a facsimile machine as a defense to the
formation or enforceability of a contract and each such party forever waives any
such defense.

     SECTION 18.18 Survival. Sections 4.6, 6.1, 7.1 and 7.2 shall survive and
continue in full force in accordance with its terms notwithstanding any
termination of this Operating Agreement or the dissolution of the Company.

     SECTION 18.19 Dispute Resolution Procedures. All controversies, claims or
disputes between the Unitholders or between the Company and any Unitholder that
arise out of or relate to this Operating Agreement (a "Dispute"), will be
resolved in accordance with the provisions of this Section 18.19.
Notwithstanding anything to the contrary contained in this Section 18.19, (i)
nothing in this Section 18.19(i) will limit the ability of the directors and
officers of any Unitholder from communicating directly with the directors and
officers of the other Unitholders and (ii) no act of the Board or failure to act
by the Board shall constitute a Dispute or form the basis for a Dispute subject
to the provisions of this Section 18.19.

          (a) Dispute Notice and Response. Any Unitholder may give another
     Unitholder written notice (a "Dispute Notice") of any Dispute which has not
     been resolved in the normal course of business. The Dispute Notice will
     include a statement setting forth the position of the Unitholder giving
     such notice, a summary of the arguments supporting such position and, if
     applicable, the relief sought. At the next regular or special meeting of
     the Board following the delivery of the Dispute Notice, the Board will
     attempt in good faith to resolve the Dispute. If the Dispute remains
     unresolved following such meeting, the initiating Unitholder may request in
     writing to the other Unitholders (a "Vice President Notice") that the
     Dispute be resolved by officers of the Unitholders (at the Vice President
     level or above and having experience in the subject matter of the Dispute)
     pursuant to Section 18.19(b).

          (b) Negotiation Between Vice Presidents.

               (i) Within 10 Business Days after delivery of a Vice President
          Notice, officers of the Unitholders (which officers shall hold the
          office of Vice President or a higher office and shall have experience
          in the subject matter of the Dispute) will meet or communicate by
          telephone at a mutually acceptable time and place, and thereafter as
          often as they reasonably deem necessary, and will negotiate in good
          faith to attempt to resolve the Dispute that is the subject of such
          Dispute Notice. If such Dispute has not been resolved within 180
          calendar days after delivery of the Dispute Notice, each Unitholder
          will be permitted to take such ac-

<PAGE>
                                      -65-

          tions at law or in equity as it is otherwise permitted to take or as
          may be available under applicable Law.

               (ii) All negotiations between the Vice Presidents or other
          officers pursuant to this Section 18.19(b) will be treated as
          compromise and settlement negotiations. Nothing said or disclosed, nor
          any document produced, in the course of such negotiations which is not
          otherwise independently discoverable will be offered or received as
          evidence or used for impeachment or for any other purpose in any
          current or future arbitration or litigation.

          (c) Right to Equitable Relief Preserved. Notwithstanding anything in
     this Operating Agreement to the contrary, any Unitholder or the Company may
     at any time seek from any court of the United States located in the State
     of Delaware or from any Delaware state court, any interim, provisional or
     injunctive relief that may be necessary to protect the rights or property
     of such party or maintain the status quo before, during or after the
     pendency of the negotiation process or the arbitration proceeding or any
     other proceeding contemplated by Section 18.19(b).

     SECTION 18.20 Public Statements. Subject to applicable Law, including the
requirements of the Exchange Act, each of the parties agree that, from and after
the date hereof through the earlier of the termination of this Operation
Agreement and January 1, 2005, no public release or announcement concerning this
Operating Agreement, the Related Agreements or the transactions contemplated
hereby or thereby shall be issued without the joint consent with the other
parties, such consent not to be unreasonably withheld or delayed, and, in
connection therewith, the issuing party shall provide each other with a
reasonable opportunity to review such proposed release prior to publication
thereof. Notwithstanding the foregoing, if any party is required to disclose the
terms of this Operating Agreement or any Related Agreement pursuant to the
Securities Act or the Exchange Act, it shall use its commercially reasonable
efforts to avoid any such disclosure and shall, whenever reasonably practicable,
consult with the other parties concerning the timing and content of such
disclosure before the same is made.

                            [Signature page follows]

<PAGE>

     IN WITNESS WHEREOF, the undersigned have executed or caused to be executed
on their behalf this Amended and Restated Operating Agreement as of the date
first written above.

                              NC-M CHASSIS SYSTEMS, LLC

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

                              DAIMLERCHRYSLER CORPORATION

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

                              METALDYNE CORPORATION

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

<PAGE>

                                   Schedule A

                                Capital Accounts

<TABLE>
<CAPTION>

                                                       Class A        Class B         Capital          Capital
Name                    Address                         Units          Units       Contributions       Account
----                    -------                         -----          -----       -------------       -------

<S>                                                       <C>           <C>          <C>               <C>
DaimlerChrysler         100 Chrysler Drive
Corporation             Auburn Hills, MI 48326            60            100          $215,000,000      $215,000,000

Metaldyne               47603 Halyard Drive
Corporation             Plymouth, MI 41870                40             0           $ 20,000,000      $ 20,000,000

</TABLE>

<PAGE>

                                    Exhibit A

                 Board Actions Requiring Supermajority Approval

1.   Establishing or making any amendment to or modification or replacement of
     the Company's Operating Budget and Capital Plan or approving any actions of
     the Company that are not in accordance with the Company's Operating Budget
     and Capital Plan.

2.   Appointing or removing Officers of the Company and determining or changing
     their titles, duties and compensation.

3.   Declaring or paying any dividend or other distribution to the holders of
     any Units or other interests or securities of the Company.

4.   Entering into or amending or terminating the Management Agreement or
     removing the plant manager designated by Metaldyne thereunder.

5.   Entering into or amending or terminating (except pursuant to its terms) any
     agreement, contract, transaction or arrangement which extends beyond
     December 31, 2003 or which is otherwise not in the ordinary course of
     business or which is otherwise material to the business of the Company, in
     each case except (A) renewing a purchase order in the ordinary course of
     business on terms substantially consistent with its existing terms or (B)
     otherwise in accordance with the Company's Operating Budget and Capital
     Plan.

6.   Incurrence by the Company of, or commitment by the Company to incur, any
     Indebtedness, other than (A) in accordance with the Company's Operating
     Budget and Capital Plan or (B) trade payables and other current liabilities
     arising in the ordinary course of business.

7.   Incurrence or making by the Company of, or commitment by the Company to
     incur or make, any capital expenditures in respect of any items or project
     which, in the aggregate, exceed the aggregate amount of budgeted capital
     expenditures set forth in the Company's Operating Budget and Capital Plan
     as then in effect by $250,000.

8.   Making by the Company of, or commitment by the Company to make, any loan or
     advance to any Person or entity, in each case except in accordance with the
     Company's Operating Budget and Capital Plan or otherwise in the ordinary
     course of business.

9.   Sale, lease, exchange or other disposition by the Company of less than
     substantially all of the assets or properties of the Company or the
     acquisition by the Company of any assets or properties, other than sales of
     inventory in the ordinary course of business.

10.  Entering into, terminating (except pursuant to its terms) or materially
     amending (i) any employment or consulting agreement, contract or
     commitment, in each case involving amounts in excess of $10,000, or (ii)
     any agreement, contract or commitment between the Company and (A) any of
     its Affiliates, any of its Managers, Officers or employees or any of its
     Unitholders,

<PAGE>
                                       -2-

     (B) any Affiliate of any of its Unitholders or (C) any Manager, Officer,
     employee, stockholder, member or partner of any of its Affiliates, any of
     its Unitholders or any Affiliate of any of its Unitholders.

11.  Entering into or amending or terminating (except pursuant to its terms) any
     collective bargaining agreement to which the Company is or would be a party
     or by which the Company is or would be bound, except for the Local
     Qualified Collective Bargaining Agreements.

12.  Commencement (including the filing of a counterclaim) or settlement of any
     litigation, regulatory proceeding or arbitration to which the Company is,
     or is to be, a party or by which the Company or any of its businesses,
     assets or properties would reasonably be expected to be affected, in each
     case involving amounts in controversy in excess of $50,000.

13.  Creation or sufferance of any Liens upon the assets or properties of the
     Company, other than (A) purchase money and statutory Liens securing
     payments not yet due and other Liens that, individually or in the
     aggregate, are not substantial in character or amount and do not materially
     impair the value of, or materially interfere with the use of, any of the
     assets or properties subject thereto or (B) in accordance with the
     Company's Operating Budget and Capital Plan.

14.  Entering into by the Company of any partnership or joint venture with, or
     the acquisition by the Company of any Capital Stock of, or other ownership
     interest in, any Person, or the making by the Company of any other
     investment in, or any guaranty by the Company of the obligations of, any
     Person, other than (A) in accordance with the Company's Operating Budget
     and Capital Plan or (B) investments in cash and cash equivalents.

15.  Removing KPMG LLP as the independent public accountants of the Company.

16.  (A) Adopting or changing any accounting principle which will materially
     affect (i) the operating income of the Company or (ii) any securityholder
     of the Company, in each case except as required by GAAP, DaimlerChrysler's
     accounting principles or applicable Law, or (B) making any election under
     Section 9.2 of this Agreement or adopting any position for purposes of any
     tax return, in each case that will have a material effect on any
     securityholder of the Company, except as required by applicable Law.

<PAGE>

                                    Exhibit B

               Actions Requiring Supermajority Unitholder Approval

1.   Amending or repealing the Company's Certificate or this Operating
     Agreement, including any change in the number of Managers constituting the
     entire Board or a quorum of the Board, other than as required by applicable
     Law.

2.   Issuance or sale of any Units or other interests in or securities of the
     Company or rights to acquire any Units or other interests in or securities
     of the Company (other than in accordance with the terms of any Units of the
     Company or this Operating Agreement).

3.   Making by the Company of, or commitment by the Company to make, any direct
     or indirect redemption, purchase or acquisition of any Units or other
     securities of the Company or rights to acquire Units or other securities of
     the Company (other than in accordance with the terms of any Units of the
     Company or this Operating Agreement).

4.   Approving or consummating any recapitalization of the Company's securities.

5.   Approving or consummating any merger, amalgamation, consolidation or other
     business combination with or into any Person (whether by security purchase,
     asset purchase or otherwise), any spin-off, split-up, roll-up or other
     reorganization of the Company, any sale of all or substantially all of the
     assets of the Company or any conversion of the Company into a corporation
     pursuant to Section 18-216 of the Delaware Act (or any successor section
     thereto), or adopting any plan with respect thereto.

6.   Approving or effecting any liquidation, winding-up or dissolution of the
     Company or adopting of any plan with respect thereto, unless such
     liquidation, winding-up or dissolution is ordered pursuant to a decree of
     the Court of Chancery of the State of Delaware pursuant to Section 18-802
     of the Delaware Act.

7.   Filing a petition under applicable bankruptcy or any other insolvency Law,
     or admitting in writing its bankruptcy, insolvency or general inability to
     pay its debts, or consenting to the appointment of or the taking possession
     by any receiver, liquidator, assignee, custodian, trustee or sequestrator
     or other Person performing similar functions.

8.   Making by the Company of any election to be treated other than as a
     partnership for tax purposes.

9.   Amending or modifying those actions requiring supermajority Board or
     Unitholder approval, including, but not limited to, those listed on this
     Exhibit B and Exhibit A.

10.  Taking any other action requiring a vote of members under applicable Law.

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