Document:

<PAGE>
                                                                   EXHIBIT 10(d)

                        QUARTERLY SERVICER'S CERTIFICATE

                             CONSUMERS FUNDING LLC
                $468,592,000 SECURITIZATION BONDS, SERIES 2001-1

Pursuant to Section 3.05 of the Servicing Agreement dated as of November 8, 2001
   (the "Consumers Servicing Agreement") between Consumers Energy Company, as
               Servicer and Consumers Funding LLC, as Issuer, the
                    Servicer does hereby certify as follows:

 Capitalized terms used in the Quarterly Servicer's Certificate (the "Quarterly
   Certificate") have their respective meanings as set forth in the Agreement.
   References herein to certain sections and subsections are references to the
                      respective sections of the Agreement.

            Billing Periods: January 2004, February 2004, March 2004
                          Payment Date: April 20, 2004

<TABLE>
<S>                                                                                                         <C>
1. COLLECTIONS ALLOCABLE AND AGGREGATE AMOUNTS AVAILABLE FOR THE CURRENT PAYMENT DATE:
   i.     Remittances for the January 2004 Collection Period                                                  $3,886,644.00
   ii.    Remittances for the February 2004 Collection Period                                                 $4,565,254.00
   iii.   Remittances for the March 2004 Collection Period                                                    $3,866,880.00
   iv.    Remittances for the Collection Period                                                                       $0.00
   v.     Remittances for the Collection Period                                                                       $0.00
   vi.    Remittances for the Collection Period                                                                       $0.00
   vii.   Remittances for the Collection Period                                                                       $0.00
   viii.  Net Earnings on Collection Account                                                                     $26,575.29
   ix.    Net Earnings on Capital Subaccount                                                                      $5,362.59
   x.     Net Earnings on Overcollateralization Subaccount                                                          $795.20
   xi.    Net Earnings on Reserve Subaccount                                                                      $5,513.95
                                                                                                            ---------------
          GENERAL SUBACCOUNT BALANCE                                                                         $12,357,025.03

   xii.   Reserve Subaccount Balance                                                                          $2,465,221.93
   xiii.  Overcollateralization Subaccount Balance                                                              $376,547.14
   xiv.   Capital Subaccount Balance (less $100K)                                                             $2,242,960.00
   xv.    Capital Reserve Subaccount Balance                                                                   $100,000.00
                                                                                                            ---------------
   xvi.   COLLECTION ACCOUNT BALANCE                                                                         $17,541,754.10

2. OUTSTANDING PRINCIPAL BALANCE AND COLLECTION ACCOUNT BALANCE AS OF PRIOR PAYMENT DATE:
   i.     Class A-1 Principal Balance                                                                                 $0.00
   ii.    Class A-2 Principal Balance                                                                        $60,523,311.52
   iii.   Class A-3 Principal Balance                                                                        $31,000,000.00
   iv.    Class A-4 Principal Balance                                                                        $95,000,000.00
   v.     Class A-5 Principal Balance                                                                       $117,000,000.00
   vi.    Class A-6 Principal Balance                                                                       $115,592,000.00
                                                                                                            ---------------
   VII.   SECURITIZATION BOND PRINCIPAL BALANCE                                                             $419,115,311.52

   viii.  Reserve Subaccount Balance                                                                          $2,465,221.93
   ix.    Overcollateralization Subaccount Balance                                                              $376,547.14
   x.     Capital Subaccount Balance                                                                          $2,242,960.00
   xi.    Capital Reserve Subaccount Balance                                                                    $100,000.00

3. REQUIRED FUNDING/PAYMENTS AS OF CURRENT PAYMENT DATE:
   i.     Projected Class A-1 Bond Balance                                                                            $0.00
   ii.    Projected Class A-2 Bond Balance                                                                   $53,595,934.22
   iii.   Projected Class A-3 Bond Balance                                                                   $31,000,000.00
   iv.    Projected Class A-4 Bond Balance                                                                   $95,000,000.00
   v.     Projected Class A-5 Bond Balance                                                                  $117,000,000.00
   vi.    Projected Class A-6 Bond Balance                                                                  $115,592,000.00
                                                                                                            ---------------
   VII.   PROJECTED SECURITIZATION BOND BALANCE                                                             $412,187,934.22

   viii.  Required Class A-1 Coupon (2.59% per annum rate)                                                            $0.00
   ix.    Required Class A-2 Coupon (3.80% per annum rate)                                                      $574,971.46
</TABLE>

                                  Page 2 of 5
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<TABLE>
<S>                                                                                                         <C>
   x.     Required Class A-3 Coupon (4.55% per annum rate)                                                      $352,625.00
   xi.    Required Class A-4 Coupon (4.98% per annum rate)                                                    $1,182,750.00
   xii.   Required Class A-5 Coupon (5.43% per annum rate)                                                    $1,588,275.00
   xiii.  Required Class A-6 Coupon (5.76% per annum rate)                                                    $1,664,524.80
   xiv.   Required Overcollateralization Funding                                                                 $41,838.57
   xv.    Required Capital Subaccount Funding                                                                         $0.00

4. ALLOCATION OF REMITTANCES AS OF CURRENT PAYMENT DATE PURSUANT TO 8.02 OF THE INDENTURE:
   i.     Bond Trustee Fees and Expenses                                                                              $0.00
   ii.    Servicing Fee                                                                                         $261,947.07
   iii.   Cumulative Monthly Administration Fee during Relevant Quarter                                          $20,000.00
   iv.    Independent Managers Fee                                                                                $1,750.00
   v.     Operating Expenses (subject to cap of $100,000/quarter)                                                $10,462.59
   VI.    QUARTERLY INTEREST                                                                                  $5,363,146.26
           1. Class A-1 Bond Coupon Payment                                                                           $0.00
           2. Class A-2 Bond Coupon Payment                                                                     $574,971.46
           3. Class A-3 Bond Coupon Payment                                                                     $352,625.00
           4. Class A-4 Bond Coupon Payment                                                                   $1,182,750.00
           5. Class A-5 Bond Coupon Payment                                                                   $1,588,275.00
           6. Class A-6 Bond Coupon Payment                                                                   $1,664,524.80
   vii.   Principal Due and Payable as a Result of Event of Default or on Final Maturity Date                         $0.00
   VIII.  QUARTERLY PRINCIPAL                                                                                 $6,927,377.30
           1. Class A-1 Bond Principal Payment                                                                        $0.00
           2. Class A-2 Bond Principal Payment                                                                $6,927,377.30
           3. Class A-3 Bond Principal Payment                                                                        $0.00
           4. Class A-4 Bond Principal Payment                                                                        $0.00
           5. Class A-5 Bond Principal Payment                                                                        $0.00
           6. Class A-6 Bond Principal Payment                                                                        $0.00
   ix.    Operating Expenses (in excess of $100,000)                                                                  $0.00
   x.     Funding of Capital Subaccount (to required level)                                                           $0.00
   xi.    Funding of Overcollateralization Subaccount (to required level)                                        $41,838.57
   xii.   Net Earnings on Capital Subaccount Released to Issuer                                                   $5,362.59
   xiii.  Deposits to Reserve Subaccount                                                                              $0.00
   xiv.   Released to Issuer upon Series Retirement:  Collection Account                                              $0.00

5. OUTSTANDING PRINCIPAL BALANCE AND COLLECTION ACCOUNT BALANCE AS OF CURRENT PAYMENT DATE:
   (AFTER GIVING EFFECT TO PAYMENTS TO BE MADE ON SUCH PAYMENT DATE):
   i.     Class A-1 Principal Balance                                                                                 $0.00
   ii.    Class A-2 Principal Balance                                                                        $53,595,934.22
   iii.   Class A-3 Principal Balance                                                                        $31,000,000.00
   iv.    Class A-4 Principal Balance                                                                        $95,000,000.00
   v.     Class A-5 Principal Balance                                                                       $117,000,000.00
   vi.    Class A-6 Principal Balance                                                                       $115,592,000.00

   VII.   SECURITIZATION BOND PRINCIPAL BALANCE                                                             $412,187,934.22

   viii.  Reserve Subaccount Balance                                                                          $2,190,362.58
   ix.    Overcollateralization Subaccount Balance                                                              $418,385.71
   x.     Capital Subaccount Balance                                                                          $2,242,960.00
   xi.    Capital Reserve Subaccount Balance                                                                    $100,000.00
</TABLE>

                                  Page 3 of 5
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<TABLE>
<S>                                                                                                         <C>
6. SUBACCOUNT DRAWS AS OF CURRENT PAYMENT DATE (IF APPLICABLE, PURSUANT TO SECTION 8.02 OF THE INDENTURE):
   i.     Reserve Subaccount                                                                                    $274,859.35
   ii.    Overcollateralization Subaccount                                                                            $0.00
   iii.   Capital Subaccount                                                                                          $0.00
   iv.    Capital Reserve Subaccount                                                                                  $0.00
                                                                                                                      -----
   V.     TOTAL DRAWS                                                                                           $274,859.35

7. SHORTFALLS IN INTEREST AND PRINCIPAL PAYMENTS AS OF CURRENT PAYMENT DATE:
   I.     QUARTERLY INTEREST                                                                                          $0.00
          1.  Class A-1 Bond Coupon Payment                                                                           $0.00
          2.  Class A-2 Bond Coupon Payment                                                                           $0.00
          3.  Class A-3 Bond Coupon Payment                                                                           $0.00
          4.  Class A-4 Bond Coupon Payment                                                                           $0.00
          5.  Class A-5 Bond Coupon Payment                                                                           $0.00
          6.  Class A-6 Bond Coupon Payment                                                                           $0.00
   II.    QUARTERLY PRINCIPAL                                                                                         $0.00
          1.  Class A-1 Bond Principal Payment                                                                        $0.00
          2.  Class A-2 Bond Principal Payment                                                                        $0.00
          3.  Class A-3 Bond Principal Payment                                                                        $0.00
          4.  Class A-4 Bond Principal Payment                                                                        $0.00
          5.  Class A-5 Bond Principal Payment                                                                        $0.00
          6.  Class A-6 Bond Principal Payment                                                                        $0.00

8. SHORTFALLS IN REQUIRED SUBACCOUNT LEVELS AS OF CURRENT PAYMENT DATE:
   i.     Overcollateralization Subaccount                                                                            $0.00
   ii.    Capital Subaccount                                                                                          $0.00
</TABLE>

IN WITNESS HEREOF, the undersigned has duly executed and delivered this
Quarterly Servicer's Certificate this 19th day of April, 2004.

Consumers Energy Company, as Servicer

by: /s/ Laura L Mountcastle
        -------------------
        Laura L. Mountcastle
        Chief Executive Officer, President, Chief Financial Officer and
        Treasurer

                                  Page 4 of 5<PAGE>
                                                                    Exhibit 10-a

                               ARVINMERITOR, INC.

                            2004 DIRECTORS STOCK PLAN

1.   PURPOSE OF THE PLAN.

     The purpose of the 2004 Directors Stock Plan (the Plan) is to link the
     compensation of non-employee directors of ArvinMeritor, Inc. (ArvinMeritor)
     directly with the interests of the ArvinMeritor shareowners.

2.   PARTICIPANTS.

     Participants in the Plan shall consist of directors of ArvinMeritor who are
     not employees of ArvinMeritor or any of its subsidiaries (Non-Employee
     Directors). The term "subsidiary" as used in the Plan means a corporation
     more than 50% of the voting stock of which, or an unincorporated business
     entity more than 50% of the equity interest in which, shall at the time be
     owned directly or indirectly by ArvinMeritor.

3.   SHARES RESERVED UNDER THE PLAN.

     Subject to the provisions of Section 14, there shall be reserved for
     delivery under the Plan 275,000 shares of Common Stock, par value $1.00 per
     share, of ArvinMeritor (Shares). Shares to be delivered under the Plan may
     be authorized and unissued Shares, Shares held in treasury or any
     combination thereof. Shares with respect to the unexercised, undistributed
     or unearned portion of any terminated or forfeited award or grant made
     pursuant to the Plan shall be available for further awards or grants.

4.   ADMINISTRATION OF THE PLAN.

     The Plan shall be administered by the Corporate Governance and Nominating
     Committee (the Committee) of the Board of Directors of ArvinMeritor (the
     Board), subject to the right of the Board, in its sole discretion, to
     exercise or authorize another committee or person to exercise some or all
     of the responsibilities, powers and authority vested in the Committee under
     the Plan. The Committee (or the Board or any other committee or person
     authorized by the Board) shall have authority to interpret the Plan, and to
     prescribe, amend and rescind rules and regulations relating to the
     administration of the Plan, and all such interpretations, rules and
     regulations shall be conclusive and binding on all persons.

                                      B-1
<PAGE>
5.   EFFECTIVE DATE OF THE PLAN.

     The Plan has been approved by the Board and shall be submitted to the
     shareowners of ArvinMeritor for approval at the Annual Meeting of
     Shareowners to be held in 2004 and, if approved by the shareowners, shall
     become effective on the date and at the time of such approval.

6.   RESTRICTED SHARE UNITS.

     (a)  Annual Awards. Immediately following each Annual Meeting of
          Shareowners of ArvinMeritor, each Non-Employee Director who is elected
          a director at, or who was previously elected and continues as a
          director after, that Annual Meeting may be awarded a right to receive
          Shares (Restricted Share Units) upon the terms and conditions set
          forth in the Plan and the applicable award agreement. The number of
          Restricted Share Units, if any, so awarded (the Annual RSU Amount)
          shall be fixed from time to time by the Board. Unless otherwise
          provided in the applicable award agreement, (i) each Restricted Share
          Unit shall be paid or settled by the issuance of one Share after the
          earliest of (A) six (6) years from the date of the award, (B) ten days
          after the Non-Employee Director retires from the Board after reaching
          age 72 and having served at least three years as a director or (C) the
          date the Non-Employee Director resigns from the Board or ceases to be
          a director by reason of the antitrust laws, compliance with
          ArvinMeritor's conflict of interest policies, death, disability or
          other circumstances that the Board determines not to be adverse to the
          best interests of ArvinMeritor and (ii) if the Non-Employee Director
          ceases to be a director prior to six years from the date of the award
          of the Restricted Share Unit for any reason other than as described in
          clause (i)(B) or clause (i)(C) above, such Restricted Share Unit will
          terminate and all right, title and interest of the Non-Employee
          Director thereunder will be forfeited. A participant shall not be
          required to make any payment for any Restricted Share Units or Shares
          delivered under this Section 6. Upon the delivery of Shares under this
          Section 6, the recipient shall have the entire beneficial ownership
          interest in, and all rights and privileges of a shareowner as to those
          Shares, including the right to vote the Shares and to receive
          dividends thereon.

     (b)  Discretionary Awards. At such times as the Board may determine, the
          Board may award to each Non-Employee Director, or to one or more
          designated Non-Employee Directors, such additional number of
          Restricted Share Units as the Board in its sole discretion shall
          determine.

     (c)  Dividend Equivalents. If and to the extent provided for in the
          applicable award agreement, a recipient of Restricted Share Units
          shall be entitled,

                                      B-2
<PAGE>
          during the period after the Restricted Share Units are awarded and
          until the termination and forfeiture or payment and settlement
          thereof, to receive dividend equivalents in respect of such Restricted
          Share Units equal to the amount or value of any cash or other
          dividends or distributions payable on an equivalent number of Shares.
          Any such dividend equivalents shall be paid, with or without interest,
          as and when provided for in the applicable award agreement.

     (d)  Deferrals. If and to the extent provided for in the applicable award
          agreement and on such terms and conditions as may be set forth
          therein, a Non-Employee Director may from time to time elect in
          advance to defer the issuance and delivery of Shares otherwise
          issuable in respect of Restricted Share Units held by the Non-Employee
          Director.

7.   SHARES.

     (a)  Annual Awards. Immediately following each Annual Meeting of
          Shareowners of ArvinMeritor, each Non-Employee Director who is elected
          a director at, or who was previously elected and continues as a
          director after, that Annual Meeting may receive an award of Shares.
          The number of Shares, if any, so awarded (the Annual Share Amount)
          shall be fixed from time to time by the Board. A participant shall not
          be required to make any payment for any Shares delivered under this
          Section 7. Upon the delivery of Shares under this Section 7, the
          recipient shall have the entire beneficial ownership interest in, and
          all rights and privileges of a shareowner as to those Shares,
          including the right to vote the Shares and to receive dividends
          thereon.

     (b)  Discretionary Awards. At such times as the Board may determine, the
          Board may award to each Non-Employee Director, or to one or more
          designated Non-Employee Directors, such additional number of Shares as
          the Board in its sole discretion shall determine.

8.   RESTRICTED SHARES.

     (a)  Annual Awards. Immediately following each Annual Meeting of
          Shareowners of ArvinMeritor, each Non-Employee Director who is elected
          a director at, or who was previously elected and continues as a
          director after, that Annual Meeting may receive an award of restricted
          Shares (Restricted Shares). The number of Restricted Shares, if any,
          so awarded (the Annual Restricted Share Amount) shall be fixed from
          time to time by the Board. A participant shall not be required to make
          any payment for any Restricted Shares delivered under this Section 8.
          Upon receipt of an award of Restricted Shares, the recipient shall
          have the right to vote the Restricted Shares and to receive dividends
          thereon, and the

                                      B-3
<PAGE>
          Restricted Shares shall have all the attributes of outstanding Shares,
          except that the Restricted Shares shall be held in book-entry accounts
          subject to the direction of ArvinMeritor (or if ArvinMeritor elects,
          certificates therefor may be issued in the recipient's name but
          delivered to and held by ArvinMeritor). Unless otherwise provided in
          the applicable award agreement, (i) the Restricted Shares so held
          shall be delivered to the Non-Employee Director and cease to be
          Restricted Shares upon the earliest of (A) the date the restrictions
          set forth in the applicable award agreement lapse, (B) ten days after
          the Non-Employee Director retires from the Board after reaching age 72
          and having served at least three years as a director or (C) the date
          the Non-Employee Director resigns from the Board or ceases to be a
          director by reason of the antitrust laws, compliance with
          ArvinMeritor's conflict of interest policies, death, disability or
          other circumstances the Board determines not to be adverse to the best
          interests of ArvinMeritor and (ii) if the Non-Employee Director ceases
          to be a director for any reason other than as described in clause
          (i)(B) or clause (i)(C) above prior to the date the restrictions set
          forth in the applicable award agreement lapse, all right, title and
          interest of the Non-Employee Director in such Restricted Shares shall
          be forfeited and such Restricted Shares shall be transferred to
          ArvinMeritor.

     (b)  Discretionary Awards. At such times as the Board may determine, the
          Board may award to each Non-Employee Director, or to one or more
          designated Non-Employee Directors, such additional number of
          Restricted Shares as the Board in its sole discretion shall determine.

9.   STOCK OPTIONS.

     (a)  Annual Grants. Immediately following each Annual Meeting of
          Shareowners of ArvinMeritor, each Non-Employee Director who is elected
          a director at, or was previously elected and continues as a director
          after, that Annual Meeting may be granted an option (Option) to
          purchase Shares. The number of Shares subject to Options, if any, so
          granted (the Annual Option Amount) shall be fixed from time to time by
          the Board.

     (b)  Discretionary Grants. At such times as the Board may determine, the
          Board may grant to each Non-Employee Director, or to one or more
          designated Non-Employee Directors, Options for such additional number
          of Shares as the Board in its sole discretion shall determine.

     (c)  Exercise Price. The exercise price per Share for each Option granted
          under this Section 9 shall be one-hundred percent (100%) of the Fair
          Market Value (as defined below) of the Shares on the date of grant.

                                      B-4
<PAGE>
     (d)  Exercise and Termination. The purchase price of the Shares with
          respect to which an Option or portion thereof is exercised shall be
          payable in full in cash, Shares valued at their Fair Market Value on
          the date of exercise, or a combination thereof. Unless otherwise
          provided in the applicable award agreement: (i) each Option may be
          exercised in whole or in part at any time after it becomes
          exercisable, (ii) each Option shall become exercisable in three
          approximately equal installments on each of the first, second and
          third anniversaries of the date the Option is granted and (iii) no
          Option shall be exercisable prior to one year or after ten years from
          the date of the grant thereof; provided, however, that (A) if the
          holder of an Option dies, the Option may be exercised from and after
          the date of the optionee's death for a period of three years (or until
          the expiration date specified in the Option if earlier) even if it was
          not exercisable at the date of death; (B) if an optionee retires after
          reaching age 72 and having served at least three years as a director,
          all Options then held by that optionee shall be exercisable even if
          they were not exercisable at the optionee's retirement date, provided,
          however, that each such Option shall expire at the earlier of five
          years after the date of the optionee's retirement or the expiration
          date specified in the Option; (C) if an optionee ceases to be a
          director by reason of disability or resignation from the Board for
          reasons of the antitrust laws, compliance with ArvinMeritor's conflict
          of interest policies or other circumstances that the Board determines
          not to be adverse to the best interests of ArvinMeritor, all Options
          then held by such optionee may be exercised from and after such
          termination date for a period of one year (or until the expiration
          date specified in the Option, if earlier), even if they were not
          exercisable at such termination date, unless otherwise determined by
          the Board; and (D) if an optionee ceases to be a director while
          holding unexercised Options for any reason not specified above, such
          Options are then void.

     (e)  Nonassignability. Except as otherwise provided in an applicable award
          agreement, Options granted under the Plan are not transferable other
          than (i) by will or by the laws of descent and distribution or (ii) by
          gift to the grantee's spouse or natural, adopted or step-children or
          grandchildren (Immediate Family Members) or to a trust for the benefit
          of one or more of the grantee's Immediate Family Members or to a
          family charitable trust established by the grantee or a member of the
          grantee's family.

10.  STOCK APPRECIATION RIGHTS.

     (a)  Annual Grants. Immediately following each Annual Meeting of
          Shareowners of ArvinMeritor, each Non-Employee Director who is elected
          a director at, or was previously elected and continues as a director
          after, that Annual Meeting may be granted Stock Appreciation Rights
          (as defined below). The number of Stock Appreciation Rights, if any,
          so

                                      B-5
<PAGE>
          granted (the Annual SAR Amount) shall be fixed from time to time by
          the Board. Tandem SARs (as defined below) may be granted at the time
          of grant of an Option or at any time thereafter during the term of an
          Option.

     (b)  Discretionary Grants. At such times as the Board may determine, the
          Board may grant to each Non-Employee Director, or to one or more
          designated Non-Employee Directors, awards of such additional number of
          Stock Appreciation Rights as the Board in its sole discretion shall
          determine.

     (c)  Exercise and Other Terms. A Tandem SAR shall be exercisable only when
          and to the extent that the related Option is exercisable and in lieu
          thereof. Freestanding SARs (as defined below) may be granted on terms
          and conditions determined by the Committee, consistent with the
          provisions of the Plan. The payment to which the grantee of a Stock
          Appreciation Right is entitled upon exercise thereof may be made in
          Shares valued at their Fair Market Value on the date of exercise, or
          in cash or partly in cash and partly in Shares, as the Committee may
          determine. Upon exercise of a Tandem SAR and surrender of the related
          Option or part thereof, such Option, to the extent surrendered, shall
          not thereafter be exercisable, and the Shares covered by the
          surrendered Option shall not again be available for grants pursuant to
          the Plan. Upon exercise of a Freestanding SAR, any Shares delivered in
          payment thereof shall not again be available for grants pursuant to
          the Plan. Unless otherwise provided in the applicable award agreement:
          (i) each Freestanding SAR may be exercised in whole or in part at any
          time after it becomes exercisable, (ii) each Freestanding SAR shall
          become exercisable in three approximately equal installments on each
          of the first, second and third anniversaries of the date the
          Freestanding SAR is granted and (iii) no Freestanding SAR shall be
          exercisable prior to one year or after ten years from the date of the
          grant thereof; provided, however, that (A) if the holder of a
          Freestanding SAR dies, the Freestanding SAR may be exercised from and
          after the date of the Non-Employee Director's death for a period of
          three years (or until the expiration date specified in the
          Freestanding SAR if earlier) even if it was not exercisable at the
          date of death; (B) if a Non-Employee Director retires after reaching
          age 72 and having served at least three years as a director, all
          Freestanding SARs then held by that Non-Employee Director shall be
          exercisable even if they were not exercisable at the Non-Employee
          Director's retirement date, provided, however, that each such
          Freestanding SAR shall expire at the earlier of five years after the
          date of the Non-Employee Director's retirement or the expiration date
          specified in the Freestanding SAR; (C) if a Non-Employee Director
          ceases to be a director by reason of disability or resignation from
          the Board for reasons of the antitrust laws, compliance with
          ArvinMeritor's conflict of interest

                                      B-6
<PAGE>
          policies or other circumstances that the Board determines not to be
          adverse to the best interests of ArvinMeritor, all Freestanding SARs
          then held by such Non-Employee Director may be exercised from and
          after such termination date for a period of one year (or until the
          expiration date specified in the Freestanding SAR, if earlier), even
          if they were not exercisable at such termination date, unless
          otherwise determined by the Board; and (D) if a Non-Employee Director
          ceases to be a director while holding unexercised Freestanding SARs
          for any reason not specified above, such Freestanding SARs are then
          void.

     (d)  Definitions. For purposes of the Plan, "Stock Appreciation Right" or
          "SAR" means a right granted to a Non-Employee Director (i) in
          conjunction with all or any part of any Option, which entitles the
          Non-Employee Director, upon exercise of such right, to surrender such
          Option, or any part thereof, and to receive a payment equal to the
          excess of the Fair Market Value on the date of such exercise of the
          Shares covered by such Option, or part thereof, over the purchase
          price of such Shares pursuant to the Option (a Tandem SAR) or (ii)
          separate and apart from any Option, which entitles the Non-Employee
          Director, upon exercise of such right, to receive a payment measured
          by the increase in the Fair Market Value of a number of Shares
          designated by such right from the date of grant of such right to the
          date on which the Non-Employee Director exercises such right (a
          Freestanding SAR).

11.  PRO RATA AWARDS.

     Each Non-Employee Director who is elected a director at any meeting of the
     Board shall receive effective immediately after that meeting an award of
     one hundred percent (100%) of the Annual RSU Amount, the Annual Share
     Amount, the Annual Restricted Share Amount, the Annual Option Amount and
     the Annual SAR Amount (the "Annual Grant Amount") if elected after an
     Annual Meeting of Shareowners and prior to May 1; an award of seventy-five
     percent (75%) of the Annual Grant Amount if elected between May 1 and July
     31; an award of fifty percent (50%) of the Annual Grant Amount if elected
     between August 1 and October 31; and an award of twenty-five percent (25%)
     of the Annual Grant Amount if elected between November 1 and the next
     Annual Meeting of Shareowners.

12.  RESTRICTED SHARE UNITS OR RESTRICTED SHARES IN LIEU OF CASH COMPENSATION OR
     SHARES.

     (a)  Each Non-Employee Director may elect each year, not later than
          December 31 of the year preceding the year as to which deferral of
          fees is to be applicable, to defer all or any portion of the cash
          retainer to be paid for Board or other service related to Board
          activities in the following calendar year through the issuance or
          transfer of Restricted Share Units

                                      B-7
<PAGE>
          or Restricted Shares, valued at the Fair Market Value of the Shares on
          the date when each payment of such retainer amount would otherwise be
          made in cash. Such Restricted Share Units or Restricted Shares shall
          be the same as and subject to the same provisions as are applicable to
          Restricted Share Units and Restricted Shares that may be awarded
          pursuant to Sections 6 and 8, respectively.

     (b)  Each Non-Employee Director may elect each year, not later than
          December 31 of the year preceding the year in which an annual award of
          Shares is to be made pursuant to Section 7(a), to receive the annual
          award in the form of Restricted Share Units or Restricted Shares. Such
          Restricted Share Units or Restricted Shares shall be the same as and
          subject to the same provisions as are applicable to Restricted Share
          Units and Restricted Shares that may be awarded pursuant to Sections 6
          and 8, respectively.

13.  AWARD AGREEMENTS.

     Each award or grant under the Plan may be evidenced by an award agreement
     setting forth such terms and conditions of the award or grant, not
     inconsistent with the terms of the Plan, as the Committee shall determine.
     In the event of any conflict between an award agreement and the Plan, the
     terms of the Plan shall govern.

14.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

     If there shall be any change in or affecting Shares on account of any
     merger, consolidation, reorganization, recapitalization, reclassification,
     stock dividend, stock split or combination, or other distribution to
     holders of Shares (other than a cash dividend), there shall be made or
     taken such amendments to the Plan and outstanding awards or grants and
     award agreements and such adjustments and actions thereunder as the Board
     may deem appropriate under the circumstances.

15.  GOVERNMENT AND OTHER REGULATIONS.

     The obligations of ArvinMeritor to issue or deliver Shares under the Plan
     or upon exercise of Options granted under the Plan shall be subject to (a)
     all applicable laws, rules and regulations and such approvals by any
     governmental agencies as may be required, including, without limitation,
     compliance with the Securities Act of 1933, as amended, and (b) the
     condition that such Shares shall have been duly listed on the New York
     Stock Exchange.

                                      B-8
<PAGE>
16.  AMENDMENT AND TERMINATION OF THE PLAN.

     The Plan may be amended by the Board in any respect, provided that, without
     shareowner approval, no amendment shall (a) materially increase the number
     of Shares available under the Plan (other than adjustments pursuant to
     Section 14), (b) expand the types of awards available under the Plan, (c)
     materially expand the class of directors eligible to participate in the
     Plan, (d) materially change the method of determining the exercise price of
     Options under the Plan or (e) otherwise be effective to the extent that
     shareowner approval is necessary to comply with applicable requirements of
     the New York Stock Exchange. The Plan may also be terminated at any time by
     the Board. Termination of the Plan shall not affect the rights of
     Non-Employee Directors with respect to awards previously granted to them
     and all unexpired awards shall continue in force and effect after
     termination of the Plan except as they may lapse or be terminated by their
     own terms and conditions.

17.  MISCELLANEOUS.

     (a)  Nothing contained in the Plan shall be deemed to confer upon any
          person any right to continue as a director of or to be associated in
          any other way with ArvinMeritor.

     (b)  For purposes of the Plan, the "Fair Market Value" of Shares means the
          closing sale price of the Shares as reported in the New York Stock
          Exchange -- Composite Transactions on the date of a determination (or
          on the next preceding day that Shares were traded if they were not
          traded on the date of a determination).

     (c)  Notwithstanding any other provision of the Plan, if a Change of
          Control as defined in Section 8.10 of ArvinMeritor's Amended By-Laws
          shall occur, then, unless prior to the occurrence thereof the Board of
          Directors shall determine otherwise by vote of at least two-thirds of
          its members, (i) all Options and Stock Appreciation Rights then
          outstanding pursuant to the Plan shall forthwith become fully
          exercisable whether or not then exercisable, (ii) the restrictions on
          all Restricted Shares awarded under the Plan shall forthwith lapse and
          (iii) all outstanding Restricted Share Units shall forthwith be paid
          or settled by the issuance of Shares thereunder.

     (d)  To the extent that Federal laws do not otherwise control, the Plan and
          all determinations made and actions taken pursuant hereto shall be
          governed by the laws of the State of Delaware.

                                       B-9

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