<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 5, 1998
REGISTRATION NO. 333-53491
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
AMENDMENT NO. 1
TO
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
------------------------
AMERICAN AXLE & MANUFACTURING
HOLDINGS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
<TABLE>
<S> <C> <C>
DELAWARE 3714 52-2100832
(STATE OR OTHER (PRIMARY STANDARD (I.R.S. EMPLOYER
JURISDICTION OF INDUSTRIAL IDENTIFICATION NUMBER)
INCORPORATION) CLASSIFICATION CODE NUMBER)
</TABLE>
------------------------
1840 HOLBROOK AVENUE
DETROIT, MICHIGAN 48212
(313) 974-2000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
------------------------
PATRICK S. LANCASTER
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
1840 HOLBROOK AVENUE
DETROIT, MICHIGAN 48212
(313) 974-2333
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
------------------------
Copies of all correspondence to:
<TABLE>
<S> <C>
WILSON S. NEELY MICHAEL A. CAMPBELL
SIMPSON THACHER & BARTLETT MAYER, BROWN & PLATT
425 LEXINGTON AVENUE 190 SOUTH LASALLE STREET
NEW YORK, NEW YORK 10017 CHICAGO, ILLINOIS 60603-3441
(212) 455-2000 (312) 782-0600
</TABLE>
------------------------
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: As soon as
practicable after this Registration Statement becomes effective.
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box. / /
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. / /
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. / /
If this Form is a post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. / /
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. / /
------------------------
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A),
MAY DETERMINE.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
(a) Exhibits
The following exhibits are filed herewith unless otherwise indicated.
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ----------- -------------------------------------------------------------------------------------------------------
<S> <C>
**1.01 -- Form of U.S. Purchase Agreement
**1.02 -- Form of International Purchase Agreement
**3.01 -- Certificate of Incorporation of the Company, as Amended
**3.02 -- Bylaws of the Company
**4.01 -- Specimen Stock Certificate
**5.01 -- Opinion of Simpson Thacher & Bartlett as to the legality of the Common Stock being registered
*10.01 -- Asset Purchase Agreement, dated February 18, 1994, between the American Axle & Manufacturing,
Inc. ('AAM, Inc.') and General Motors Corporation ('GM'), and all amendments thereto
+10.02 -- Component Supply Agreement, dated February 28, 1994, between AAM, Inc. and GM
10.02(a) -- Amendment No. 1 to Component Supply Agreement, dated February 28, 1994, between AAM, Inc. and GM
+10.02(b) -- Amendment No. 2 to Component Supply Agreement, dated February 7, 1996, between AAM, Inc. and GM
+10.02(c) -- Letter of Intent dated February 21, 1996, by G.M.T.G., GMT-800 PGM Worldwide Purchasing
('G.M.T.G') (re: front & rear axles)
+10.02(d) -- Letter of Intent dated February 21, 1996, by G.M.T.G. (re: front & rear propeller shafts)
+10.02(e) -- Letter Agreement dated June 25, 1997, between AAM, Inc. and GM
+10.02(f) -- Amended and Restated Memorandum of Understanding, dated September 2, 1997, between AAM, Inc. and
GM
10.02(g) -- MOU Extension Agreement, dated September 22, 1997, between AAM, Inc. and GM
+10.03 -- GMCL Purchase Order Agreement dated February 17, 1994 by and between AAM, Inc. and General Motors
of Canada Limited ('GMCL')
+10.04 -- AAM/GMCL Supply Agreement dated February 17, 1994 ('AAM/GMCL Supply Agreement') by and between
AAM, Inc. and GMCL
10.04(a) -- Amending Agreement dated as of September 5, 1996, between AAM, Inc. and GMCL
10.04(b) -- Amending Agreement dated as of October 7, 1996, between AAM, Inc. and GMCL
10.04(c) -- Amendment No. 1 to AAM/GMCL Supply Agreement dated February 17, 1994, between AAM, Inc. and GMCL
+10.05 -- Agreement dated February 17, 1997, between AAM, Inc. and GM
+10.05(a) -- Letter dated December 13, 1996, by AAM, Inc.
*10.06 -- Lease dated September 30, 1994, by and between AAM, Inc., as lessee, and First Industrial, L.P.,
as lessor (Technical Center)
*10.07 -- 1997 American Axle & Manufacturing of Michigan, Inc. Replacement Plan
10.08 -- The Amended and Restated American Axle & Manufacturing of Michigan, Inc. Management Stock Option
Plan
*10.09 -- Nonqualified Stock Option Agreement, dated October 30, 1997, between the Company and Richard E.
Dauch ('Dauch')
</TABLE>
II-1
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ----------- -------------------------------------------------------------------------------------------------------
<S> <C>
10.10 -- Indemnification Agreement, dated February 28, 1994, between AAM, Inc. and GM
*10.11 -- Employment Agreement, dated October 27, 1997, by and between the Company and Dauch
*10.12 -- Recapitalization Agreement, dated as of September 19, 1997, among AAM, Inc., the Company, Jupiter
Capital Corporation ('Jupiter'), Dauch, Morton E. Harris ('Harris') and AAM Acquisition, Inc.
*10.13 -- Stockholders' Agreement, dated as October 29, 1997, among Blackstone Capital Partners II Merchant
Banking Fund L.P., Blackstone Offshore Capital Partners II L.P., Blackstone Family Investment
Partnership II L.P., Jupiter, Dauch, Harris and AAM, Inc.
*10.14 -- Monitoring Agreement, dated as of October 29, 1997, between the Company and Blackstone Management
Partners L.P.
*10.15 -- Credit Agreement, dated as of October 27, 1997, among the Company, AAM, Inc., the lenders named
therein, The Chase Manhattan Bank, as administrative agent and collateral agent, and Chase
Manhattan Bank Delaware, as fronting bank
10.16 -- AAM Master Trust Pooling Agreement, dated as of October 29, 1997, among AAM Receivables
Corp.('AAM Receivables'), the Company, as Servicer, and The Chase Manhattan Bank, as Trustee
10.16(a) -- AAM Master Trust Series 1997-A Supplement to Pooling Agreement, dated as of October 29, 1997,
among AAM Receivables, the Company, as Servicer, and The Chase Manhattan Bank, as Trustee
10.17 -- Receivables Sale Agreement, dated as of October 29, 1997, between AAM Receivables, as purchaser,
and the Company, as Seller and Servicer
10.18 -- Servicing Agreement, dated as of October 29, 1997, among AAM Receivables, the Company, as
Servicer, and The Chase Manhattan Bank, as Trustee
10.19 -- Agreement for Information Technology Services, dated March 1, 1998, between AAM, Inc. and
Electronic Data Systems Corporation
*21 -- Subsidiaries of the Registrant
**23.01 -- Consent of Simpson Thacher & Bartlett (contained in Exhibit 5.01)
*23.02 -- Consent of Ernst & Young LLP
*24.01 -- Power of Attorney
**27 -- Financial Data Schedules (For SEC use only)
</TABLE>
- ------------------
* Previously filed
** To be filed by amendment.
+ Certain portions of the identified Exhibit have been omitted and separately
filed with the Commission based upon a request for confidential treatment.
(b) Financial Statement Schedules:
Schedule II--American Axle & Manufacturing of Michigan, Inc.--Allowance for
Doubtful Accounts
II-2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the
registrant has duly caused this Amendment No. 1 to the Registration Statement to
be signed on its behalf by the undersigned, thereunto duly authorized in the
City of Detroit, State Holdings, on the 5th day of June, 1998.
AMERICAN AXLE & MANUFACTURING
HOLDINGS, INC.
BY: /S/ PATRICK S. LANCASTER
---------------------------------
TITLE: SECRETARY
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Amendment No. 1 to the Registration Statement has been signed below by the
following persons in the capacities on the 5th day of June, 1998.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- -------------------------------------------- -------------------------------------------- -----------------
<S> <C> <C>
*Richard E. Dauch Chairman of the Board of Directors; June 5, 1998
- -------------------------------------------- President and Chief Executive Officer
Richard E. Dauch
*Gary J. Witosky Vice President--Finance and Chief Financial June 5, 1998
- -------------------------------------------- Officer
Gary J. Witosky
*Robert A. Krause Treasurer June 5, 1998
- --------------------------------------------
Robert A. Krause
*B. G. Mathis Director; Executive Vice President and Chief June 5, 1998
- -------------------------------------------- Administration Officer
B. G. Mathis
*Glenn H. Hutchins Director June 5, 1998
- --------------------------------------------
Glenn H. Hutchins
*Bret D. Pearlman Director June 5, 1998
- --------------------------------------------
Bret D. Pearlman
*David A. Stockman Director June 5, 1998
- --------------------------------------------
David A. Stockman
*By: /s/ Patrick S. Lancaster
- --------------------------------------------
Patrick S. Lancaster
Attorney-in-Fact
</TABLE>
II-3
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT SEQUENTIAL
NUMBER DESCRIPTION PAGE NO.
- ----------- ------------------------------------------------------------------------------------------- ----------
<S> <C> <C>
**1.01 -- Form of U.S. Purchase Agreement
**1.02 -- Form of International Purchase Agreement
**3.01 -- Certificate of Incorporation of the Company, as Amended
**3.02 -- Bylaws of the Company
**4.01 -- Specimen Stock Certificate
**5.01 -- Opinion of Simpson Thacher & Bartlett as to the legality of the Common Stock being
registered
*10.01 -- Asset Purchase Agreement, dated February 18, 1994, between the American Axle &
Manufacturing, Inc. ('AAM, Inc.') and General Motors Corporation ('GM'), and all
amendments thereto
+10.02 -- Component Supply Agreement, dated February 28, 1994, between AAM, Inc. and GM
10.02(a) -- Amendment No. 1 to Component Supply Agreement, dated February 28, 1994, between AAM,
Inc. and GM
+10.02(b) -- Amendment No. 2 to Component Supply Agreement, dated February 7, 1996, between AAM,
Inc. and GM
+10.02(c) -- Letter of Intent dated February 21, 1996, by G.M.T.G., GMT-800 PGM Worldwide
Purchasing ('G.M.T.G') (re: front & rear axles)
+10.02(d) -- Letter of Intent dated February 21, 1996, by G.M.T.G. (re: front & rear propeller
shafts)
+10.02(e) -- Letter Agreement dated June 25, 1997, between AAM, Inc. and GM
+10.02(f) -- Amended and Restated Memorandum of Understanding, dated September 2, 1997, between
AAM, Inc. and GM
10.02(g) -- MOU Extension Agreement, dated September 22, 1997, between AAM, Inc. and GM
+10.03 -- GMCL Purchase Order Agreement dated February 17, 1994 by and between AAM, Inc. and
General Motors of Canada Limited ('GMCL')
+10.04 -- AAM/GMCL Supply Agreement dated February 17, 1994 ('AAM/GMCL Supply Agreement') by
and between AAM, Inc. and GMCL
10.04(a) -- Amending Agreement dated as of September 5, 1996, between AAM, Inc. and GMCL
10.04(b) -- Amending Agreement dated as of October 7, 1996, between AAM, Inc. and GMCL
10.04(c) -- Amendment No. 1 to AAM/GMCL Supply Agreement dated February 17, 1994, between AAM,
Inc. and GMCL
+10.05 -- Agreement dated February 17, 1997, between AAM, Inc. and GM
+10.05(a) -- Letter dated December 13, 1996, by AAM, Inc.
*10.06 -- Lease dated September 30, 1994, by and between AAM, Inc., as lessee, and First
Industrial, L.P., as lessor (Technical Center)
*10.07 -- 1997 American Axle & Manufacturing of Michigan, Inc. Replacement Plan
10.08 -- The Amended and Restated American Axle & Manufacturing of Michigan, Inc. Management
Stock Option Plan
*10.09 -- Nonqualified Stock Option Agreement, dated October 30, 1997, between the Company and
Dauch
10.10 -- Indemnification Agreement, dated February 28, 1994, between AAM, Inc. and GM
*10.11 -- Employment Agreement, dated October 27, 1997, by and between the Company and Richard
E. Dauch ('Dauch')
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT SEQUENTIAL
NUMBER DESCRIPTION PAGE NO.
- ----------- ------------------------------------------------------------------------------------------- ----------
<S> <C> <C>
*10.12 -- Recapitalization Agreement, dated as of September 19, 1997, among AAM, Inc., the
Company, Jupiter Capital Corporation ('Jupiter'), Dauch, Morton E. Harris ('Harris')
and AAM Acquisition, Inc.
*10.13 -- Stockholders' Agreement, dated as October 29, 1997, among Blackstone Capital Partners
II Merchant Banking Fund L.P., Blackstone Offshore Capital Partners II L.P.,
Blackstone Family Investment Partnership II L.P., Jupiter, Dauch, Harris and AAM,
Inc.
*10.14 -- Monitoring Agreement, dated as of October 29, 1997, between the Company and
Blackstone Management Partners L.P.
*10.15 -- Credit Agreement, dated as of October 27, 1997, among the Company, AAM, Inc., the
lenders named therein, The Chase Manhattan Bank, as administrative agent and
collateral agent, and Chase Manhattan Bank Delaware, as fronting bank
10.16 -- AAM Master Trust Pooling Agreement, dated as of October 29, 1997, among AAM
Receivables Corp.('AAM Receivables'), the Company, as Servicer, and The Chase
Manhattan Bank, as Trustee
10.16(a) -- AAM Master Trust Series 1997-A Supplement to Pooling Agreement, dated as of October
29, 1997, among AAM Receivables, the Company, as Servicer, and The Chase Manhattan
Bank, as Trustee
10.17 -- Receivables Sale Agreement, dated as of October 29, 1997, between AAM Receivables, as
purchaser, and the Company, as Seller and Servicer
10.18 -- Servicing Agreement, dated as of October 29, 1997, among AAM Receivables, the
Company, as Servicer, and The Chase Manhattan Bank, as Trustee
10.19 -- Agreement for Information Technology Services, dated March 1, 1998, between AAM, Inc.
and Electronic Data Systems Corporation
*21 -- Subsidiaries of the Registrant
**23.01 -- Consent of Simpson Thacher & Bartlett (contained in Exhibit 5.01)
*23.02 -- Consent of Ernst & Young LLP
*24.01 -- Power of Attorney
**27 -- Financial Data Schedules (For SEC use only)
</TABLE>
- ------------------
* Previously filed
** To be filed by amendment.
+ Certain portions of the identified Exhibit have been omitted and separately
filed with the Commission based upon a request for confidential treatment.
<PAGE>
Exhibit 10.02
COMPONENT SUPPLY AGREEMENT*
BETWEEN
AMERICAN AXLE & MANUFACTURING, INC.
AND
GENERAL MOTORS CORPORATION
- --------
* Portions of this Exhibit 10.02 were omitted and filed separately with
the Secretary of the Securities and Exchange Commission (the
"Commission") pursuant to an application for confidential treatment
filed with the Commission pursuant to Rule 406 under the Securities Act
of 1933, as amended. Such portions are marked by the symbol "***".
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
ARTICLE PAGE
- ------- ----
<S> <C> <C> <C>
ARTICLE 1 - SOLE-SOURCE SUPPLIER FOR EXISTING COMPONENTS AND
REPLACEMENT COMPONENTS; SOURCING OF NEW
COMPONENTS............................................................................. 1
ARTICLE 2 - EVERGREEN TERM; TERMINATION............................................................ 2
ARTICLE 3 - PRICING................................................................................ 3
ARTICLE 4 - PURCHASE ORDERS AND FIELD WARRANTY COSTS............................................... 8
ARTICLE 5 - QUALITY CONTROL........................................................................ 8
ARTICLE 6 - TRANSFER OF ASSETS..................................................................... 9
ARTICLE 7 - PRODUCT LIABILITY...................................................................... 9
ARTICLE 8 - INTERIM ASSISTANCE..................................................................... 10
ARTICLE 9 - PURCHASE OF SCRAP MATERIAL............................................................. 10
ARTICLE 10 - INSURANCE.............................................................................. 10
ARTICLE 11 - GENERAL PROVISION...................................................................... 11
LIST OF EXHIBITS
Exhibit A Existing Components Supply Schedule
Exhibit B Service Parts Supply Schedule
Exhibit C Productive Material Supply Schedule
Exhibit D Purchase Order Terms and Conditions
</TABLE>
<PAGE>
COMPONENT SUPPLY AGREEMENT
This Agreement is entered into by AMERICAN AXLE & MANUFACTURING, INC.
("AAM"), a corporation organized under the laws of the State of Delaware, and
GENERAL MOTORS CORPORATION ("GM"), a corporation organized under the laws of the
State of Delaware.
P R E M I S E S
WHEREAS, AAM and GM have entered into a separate agreement entitled
Asset Purchase Agreement dated February 18, 1994 (the "Asset Purchase
Agreement"), by which AAM shall purchase from GM substantially all of the assets
of the Final Drive and Forge Business Unit ("Business Unit") of the Saginaw
Division as part of a "Strategic Partnership" as that term is defined in the
Asset Purchase Agreement.
WHEREAS, in furtherance of such "Strategic Partnership," AAM desires to
sell to GM, and GM desires to purchase from AAM, all of GM's and GMM's
requirements for the motor vehicle components that are presently being supplied
by the Business Unit on an evergreen supply contract basis upon the terms and
conditions stated herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, and in consideration of the mutual
promises contained herein, intending to be legally bound, AAM and GM hereby
agree as follows:
ARTICLE 1 - SOLE-SOURCE SUPPLIER FOR EXISTING COMPONENTS
AND REPLACEMENT COMPONENTS; SOURCING OF NEW COMPONENTS
1.1 Sourcing of Existing Components. The Business Unit currently
manufactures for GM and General Motors de Mexico, S.A. de C.V. ("GMM"), certain
components, including, but not limited to, front and rear axles, front
suspensions, steering linkages, stabilizer bars, rear prop shafts, front
auxiliary prop shafts, brake drums, wheel spindles, forgings, connecting rods
and caps, and related parts (each a "Family"), as set forth in detail, with part
numbers, on Exhibit A attached hereto and incorporated herein (collectively
referred to as "Existing Components", which term for the purposes of this
Agreement also includes successors to such Existing Components which can be
manufactured without significant changes in tooling). GM agrees that as of and
after the "Closing," as defined herein, AAM shall be the sole-source supplier to
GM for the Existing Components, and GM shall purchase from AAM, and AAM shall
supply to GM, pursuant to Purchase Orders issued by GM, all of GM's and GMM's
requirements for such Existing Components, so long as:
(a) GM and GMM continue regular production of the applicable
vehicle models requiring such Existing Components; or
(b) GM and GMM continue to require such Existing Components as
service parts for such vehicles, subject to Paragraph 3.5 herein.
-1-
<PAGE>
Successors to Existing Components being supplied by AAM that require
significant changes in tooling are referred to as "New Components" and shall be
sourced in accordance with Paragraph 1.2 herein.
1.2 Sourcing of New Components. In addition to issuing purchase orders
pursuant to Paragraph 1.1 herein, any purchase orders issued by GM during the
term of this Agreement, or extension thereof, for New Components required by GM
or GMM for use as original equipment or as service parts in vehicles
manufactured by GM or GMM shall be directed to AAM, provided in each case that
AAM has submitted its proposal in a timely fashion in accordance with GM's
request for quotation, that AAM possesses in GM's reasonable judgment the
manufacturing capability to supply GM's requirements and that AAM's terms are
competitive with proposals submitted by companies excluding GM and its
affiliates with respect to quality, service, and price. In the event GM
determines that the proposal submitted by AAM pursuant to this Paragraph is not
competitive with respect to quality, service, and price, GM shall so notify AAM
and specify in writing the nature and extent to which AAM's proposal is not
competitive. If within thirty (30) days after such notice AAM does not provide
GM reasonable assurances of AAM's ability and commitment to meet or exceed such
competitive standard, then GM may enter into contracts to purchase the New
Components in question from other suppliers at terms no less favorable than
those offered by AAM for such time periods and quantities as GM in its sole
discretion may decide. The terms for the supply of any such New Components by
AAM shall be independent of the terms of this Agreement, except as specifically
provided herein.
1.3 Opportunities to Supply Other Requirements. GM will provide AAM
opportunities to submit proposals through GM's advanced purchasing process to
supply GM's requirements for other components which AAM is or may be qualified
to supply, with the terms of supply of any such components to be determined
through that process, independent of the terms of this Agreement.
ARTICLE 2 - EVERGREEN TERM; TERMINATION
2.1 Minimum Seven (7) Year Term. This Agreement shall become effective
upon the closing of the transaction contemplated by the Asset Purchase Agreement
(the "Closing") and shall remain in effect for a minimum period of seven (7)
years from the Closing, subject to an evergreen renewal under Paragraph 2.2
below, non-renewal under Paragraph 2.3 below, and early termination under
Paragraphs 2.4 and 2.5 below.
2.2 ***
2.3 ***
2.4 Early Termination. GM may terminate this Agreement in any of the
following events:
(a) AAM becomes insolvent or enters into bankruptcy,
receivership, liquidation, an arrangement for the benefit of creditors,
dissolution, or other similar proceeding;
-2-
<PAGE>
(b) A significant portion of AAM's assets become subject to
attachment, embargo, or expropriation; or
(c) More than ten percent (10%) of the voting shares of AAM
become owned or controlled, directly or indirectly, by a competitor of GM in the
business of manufacturing motor vehicles. However, this Paragraph 2.4(c) shall
not apply if AAM registers and sells its shares in any public offering.
2.5 Early Termination Procedure. In the event GM elects to terminate
this Agreement pursuant to Paragraph 2.4 above, GM shall first notify AAM in
writing of the grounds for the intended termination. In the event AAM fails to
remedy such grounds for termination within sixty (60) days after such notice,
then GM may, at its option, terminate this Agreement effective at any time
during the remaining term of this Agreement.
ARTICLE 3 - PRICING
3.1 Prices and Adjustments. The unit prices for Existing Components
applicable during the term of this Agreement, subject to increases or decreases
pursuant to Paragraph 3.6 herein and the last sentence of this Paragraph 3.1,
and further subject to adjustments in calendar year 1996 and all calendar years
thereafter pursuant to Paragraph 3.2 herein, have been negotiated by GM and AAM
and are stated in the Supply Schedule attached as Exhibit A. All prices for
Existing Components are on an F.O.B. (shipping point) basis. Title and risk of
damage or loss to the Existing Components shall pass upon delivery, F.O.B.
(shipping point). Price increases or decreases shall be made as the result of
engineering changes ordered by GM in the specifications for Existing Components,
limited to changes in the cost plus a proportional change in profit.
-3-
<PAGE>
3.2 Cost Reductions. AAM and GM shall use their best efforts to
identify and implement productivity and other improvements to reduce AAM's cost
of manufacturing Existing Components, as that term is defined herein and in the
Component Sourcing Agreement between General Motors of Canada Limited ("GMCL")
and AAM, effective March 1, 1994 (collectively, the "GM and GMCL Existing
Components"). Beginning March 1, 1996, and each calendar year thereafter during
the term of this Agreement, fifty percent (50%) of the amount of the Cost
Savings (as that term is defined in Paragraph 3.3 below) achieved in that year
shall be passed on to GM and its subsidiaries by means of price reductions on GM
and GMCL Existing Components, which price reductions shall be implemented
quarterly or as soon thereafter as reasonably possible after such Cost Savings
are achieved. All calculations pursuant to this Paragraph 3.2 shall be done at a
plant level.
3.3 Cost Savings. For purposes of this Agreement, the term "Cost
Savings" shall mean the reduction, if any, in the labor costs and allocated
burden to product GM and GMCL Existing Components (calculated on a per unit
basis) during the course of the year in question as calculated utilizing a
consistent accounting procedure agreed upon by the parties; provided, however,
that only those reductions in labor costs (other than labor contract negotiated
reductions) and burden which GM or any of its subsidiaries contributed toward
achieving will be used in calculating Cost Savings. All labor contract
negotiated reductions will be used in calculating Cost Savings regardless of
whether GM or any of its subsidiaries contributes towards achieving them. The
parties shall agree upon a mutually acceptable measuring device for calculating
Cost Savings within six (6) months after the effective date of this Agreement,
taking into account AAM's need to protect confidentiality of cost information
and GM's need to verify the information.
Some examples of Cost Savings which shall be shared equally by
the parties are set forth in (a), (b), and (c) below:
(a) AAM requests from GM Engineering a dimensional change in
an Existing Component that reduces scrap and improves efficiency. If granted,
the savings with respect to that Existing Component would be shared equally by
the two parties.
(b) GM and AAM are both working on deproliferation of Existing
Component Part Numbers by changing parts to commonize them. Savings with respect
to such Existing Components would be shared equally by the two parties.
(c) AAM or GM requests a material change applicable to a
particular Existing Component or Components that would improve efficiency or
reduce tool costs. These savings with respect to such Existing Components would
be shared equally by the two parties.
Improvements which are not attributable to specific
Existing Components and improvements in processing, operating conditions, labor
efficiency (other than labor contract negotiated cost reductions), scrap
reduction, or any other area made by AAM as a result of its management expertise
and knowledge or contributions by AAM employees, without any input from GM, are
not included in the Cost Savings computation and are the exclusive property of
AAM.
-4-
<PAGE>
In addition, the parties shall conduct a joint "financial
review" of AAM's audited annual financial statements, as well as interim
quarterly unaudited financial statements, to ascertain the continued viability
of AAM to supply Existing Components. The financial review will consider among
other things AAM's financial position as it relates to senior debt service and
related covenants, capital expenditures, and preferred stock dividend and
redemption capability. GM and AAM agree to consider in good faith both Existing
Component price decreases or increases, as the case may be, using economic
factors and sound business judgment as "Strategic Partners," provided however,
that neither party shall be required to change prices, except as otherwise
specified in this Agreement.
3.4 Payment Terms.
(a) GM will pay for all Existing Components and New Components
shipped from the GM plants which will be owned by AAM after the Closing, which
are located in Detroit, Michigan; Three Rivers, Michigan; Buffalo, New York; and
Tonawanda, New York (the "AAM Plants") as follows:
(i) All AAM sales of Existing Components or New
Components to GM for the *** shall be paid *** in immediately available funds
*** shipment of the product from the AAM Plants.
(ii) All AAM sales of Existing Components or New
Components to GM between the *** shall be paid *** in immediately available
funds *** following shipment of the product from the AAM Plants.
(iii) All AAM sales of Existing Components or New
Components to GM between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants.
(iv) All AAM sales of Existing Components or New
Components to GM between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants.
(v) All AAM sales of Existing Components or New
Components to GM between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants.
(vi) All AAM sales of Existing Components or New
Components to GM between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants.
(vii) All AAM sales of Existing Components or New
Components to GM subsequent to the *** shall be on the *** following GM's
receipt of shipments ***.
AAM and GM will meet no less frequently than every
two (2) years to discuss payment terms and may modify the above schedule by
joint agreement.
-5-
<PAGE>
(b) GM will pay for all shipments of Existing Components and
New Components shipped from locations other than the AAM Plants, as that term is
defined in Paragraph 3.4(a), on a ***.
3.5 Service Parts. Regarding service parts, the following is agreed:
(a) General Motors Service Parts Operations ("GMSPO") will
issue, annually, contracts for past model service parts at a fair market price
to be negotiated.
(b) For service parts which are for current models, prices
will be based on the original equipment price plus a markup for packaging, bar
coding and other value added requirements specified by GMSPO, limited to the
costs of such activities plus a proportional adjustment in profit.
(c) For current models and past model service requirements,
the parties agree to freeze the prices listed on Exhibit B through nine (9)
months following Closing. During this time, AAM will confirm its cost to produce
the existing service parts and GM will obtain competitive bids from companies
excluding GM and its affiliates in order to establish the fair market price. It
is the expectation of the parties that at GM's option (i) the prices may be
adjusted to reflect the market price; (ii) the service parts may be re-sourced
to other suppliers, provided AAM is given the opportunity to supply such service
requirements pursuant to the procedures contained in Paragraph 1.2 above; or
(iii) the service parts may be subject to GMSPO's one time purchase from AAM for
all of GM's future requirements for the parts in question at a fair and mutually
agreed upon price. It is expected that adjustments will be made as analyses are
completed, but in no event will adjustments be made later than nine (9) months
after Closing. If in some extenuating situations the analyses are not complete,
AAM will consider an extension of the deadline.
3.6 Resale of Productive Material.
(a) Purchase Requirements and Pricing: AAM shall purchase all
of its requirements for material (listed in Exhibit C) to be incorporated into
GM and GMCL Existing Components and other components identified by GM which AAM
has committed to sell to GM subsidiaries ("Productive Material") from GM at the
*** prices contained in Exhibit C attached hereto. GM, in collaboration with
AAM, shall establish suppliers of Productive Materials and inbound
transportation and the terms and conditions of such supply; provided however,
that GM shall be solely responsible for the final selection of suppliers for
Productive Material and related inbound transportation and the terms and
conditions of such supply. AAM will schedule and receive material and manage
supplier performance. This sale of Productive Material by GM to AAM will, among
other things, permit GM to assist in better controlling the quality of Existing
Components it purchases. GM and its subsidiaries shall hold AAM harmless from
any increases in the price of such Productive Material and related inbound
transportation and will receive the sole benefit from any price decreases. AAM
shall utilize such Productive Material and related inbound transportation only
for the manufacture of GM and GMCL Existing Components for sale to GM, GMCL, and
specified GM subsidiaries and other purposes expressly allowed by GM in writing,
and both parties agree that the use by AAM of Productive Material for any
unauthorized purpose may, at GM's option, be considered to be a material breach
of this Agreement.
-6-
<PAGE>
(b) Ordering and Delivery: AAM and GM shall engage in regular
discussions to forecast, monitor and, when necessary, adjust material
requirements. GM shall notify AAM of the suppliers with whom GM has entered
agreements for the supply of such Productive Material for resale to AAM during
the course of each year. During the course of the year, AAM shall send releases
against GM's purchase orders for AAM's requirement for Productive Materials
directly to such suppliers, with a copy to GM. GM will provide adequate lead
time for material authorization. All Productive Material sold hereunder by GM to
AAM shall be delivered and title and risk of damage and loss shall transfer from
GM to AAM, F.O.B. AAM's plant dock(s). Upon receipt of Productive Material, AAM
shall follow its customary receiving procedures and retain copies of all
receiving documentation for GM's audit. Discrepancies in either quantity or
quality identified after receipt of the material shall be reported in writing
immediately to GM and the supplier.
(c) Payment: GM shall instruct all suppliers to submit an
invoice to AAM with a copy to GM. AAM agrees to pay all suppliers, on behalf of
GM, in accordance with the standard 25th Proximo basis unless other payment
terms are agreed upon between GM, AAM and such suppliers. Such payment shall
count towards satisfaction of AAM's accounts payable to GM for such Productive
Material. AAM will receive all benefits arising from stable schedule rebates and
agrees to bear all costs arising due to late or incorrect payments and loss of
stable schedule rebates. ***
(d) Set-Off: In the event AAM defaults in making any of the
payments to suppliers on behalf of GM, GM shall have the right to make such
payments on its own behalf and set-off the amount of such payment against its
"AAM" accounts payable.
-7-
<PAGE>
(e) No Warranties: THE WARRANTY(IES) RELATING TO THE MATERIALS
PURCHASED BY AAM UNDER THIS AGREEMENT ARE MADE BY THE MANUFACTURER(S) OF SUCH
ITEM(S). GM MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO ANY
PRODUCTIVE MATERIALS. AAM SHALL BE ENTITLED TO ALL RIGHTS IT OR GM MAY HAVE
BASED ON THE WARRANTY(IES) PROVIDED OR GIVEN BY THE MANUFACTURER(S) OF THE
PRODUCTIVE MATERIALS TO GM. FURTHERMORE, AT AAM'S REQUEST, GM WILL TAKE
IMMEDIATE ACTION REQUIRED TO VERIFY, PRESERVE, PROTECT, ENFORCE, OR OTHERWISE
SEEK SUPPLIER'S COMPLIANCE WITH ANY SUCH WARRANTIES.
(f) Additional Terms: GM and AAM shall meet after Closing to
determine all other specific terms for AAM's purchase from GM of Productive
Material and related inbound transportation with the goal of minimizing GM's
involvement in the management and administration of the supply of Productive
Material to AAM.
ARTICLE 4 - PURCHASE ORDERS AND FIELD WARRANTY COSTS
Attached hereto as Exhibit D is the standard form of purchase order
customarily offered by GM to its suppliers as of the date of this Agreement. All
purchase orders issued by GM and accepted by AAM pursuant to this Agreement
shall utilize such standard form purchase order and shall be governed by its
terms and conditions, provided, however, that Paragraphs 11, 12 and 13 of the
purchase order terms and conditions shall be superseded by Article 2 of this
Agreement, and may not be invoked or exercised by GM with respect to any
purchase orders issued and accepted under this Agreement, and Paragraph 17 of
the purchase order terms and conditions shall be superseded by Article 10 of
this Agreement. In the event of a conflict between the terms of this Agreement
and any purchase order issued hereunder, the terms of this Agreement shall
prevail. ***
ARTICLE 5 - QUALITY CONTROL
5.1 AAM will institute and maintain a company-wide continuous
improvement process. This process will be customer driver from the standpoint of
both GM and the customer of GM products. This process shall include preventive
maintenance plans that will maintain the quality of parts as they are
manufactured. The continuous improvement plan will document the method to
monitor an evaluate the process.
5.2 AAM will maintain and strive to improve the current quality control
and inspection system. Such improvement will incorporate General Quality
Standards, Targets for Excellence, and other GM policies generally applicable to
suppliers. This also includes the use of the AIAG Production Part Approval
Process manual, AIAG reference manual for Potential Failure Modes and Effects
Analysis, AIAG reference manual for Fundamental Statistical Process Control, the
GM reference manual for Key Characteristic Designation System and others.
5.3 AAM will provide support to GM for immediate problem resolution,
analysis of various sources of customer dissatisfaction, such as PPM (parts per
million), CAMIP (Continuous
-8-
<PAGE>
Automotive Marketing Information Program) glove box surveys, and other quality
measurement data which may become available to the parties from time to time.
5.4 GM has the option to provide at its expense a PICOS team to support
AAM cost and productivity improvement activities.
ARTICLE 6 - TRANSFER OF ASSETS
In order to provide GM with assurances of a continuous supply of
Existing Components and New Components hereunder, AAM agrees that it shall not
sell, lease, or otherwise dispose of, other than in the ordinary course of
business, any of the production machinery or equipment required for the
manufacture of Existing Components or New Components hereunder, without the
express written consent of GM, which consent shall not be unreasonably withheld.
AAM will notify GM in writing of any planned sales of production machinery or
equipment used in the manufacture of Existing Components or New Components
outside of the ordinary course of business. GM shall review such plans, and
state its objections, if any, within thirty (30) days of receipt of such notice.
A failure to timely object shall be deemed to be consent by GM to such plans.
AAM will provide GM with the opportunity to audit and inspect such machinery and
equipment at times reasonably agreed upon by the parties during the term of this
Agreement.
ARTICLE 7 - PRODUCT LIABILITY
AAM shall defend, indemnify, and hold harmless GM, its officers,
agents, and employees, from and against any and all claims, suits, causes of
action, liabilities, losses, damages, costs of settlement, and expenses
(including reasonable attorneys fees) which may be imposed upon or incurred by
GM from claims, suits, or causes of action (including without limitation those
for death, personal injury, or property damage) by any person whatsoever at any
time against GM, its officers, agents, and employees, arising from, caused, or
alleged to be caused by the manufacture, operation, use, sale, or transfer of
any Existing Components or New Components or the design of New Components
supplied hereunder and any other products manufactured by AAM.
GM shall defend, indemnify, and hold harmless AAM, its officers,
agents, and employees, from and against any and all claims, suits, causes of
action, liabilities, losses, damages, costs of settlement, and expenses
(including reasonable attorneys fees) which may be imposed upon or incurred by
AAM from claims, suits, or causes of action (including without limitation those
for death, personal injury, or property damage) by any person whatsoever at any
time against AAM, its officers, agents, and employees, arising from, caused or
alleged to be caused by the manufacture, operation, use, sale, or transfer of
any components or products manufactured or sold by GM other than Existing
Components, New Components, and Productive Material or the design of such
components or products by GM.
ARTICLE 8 - INTERIM ASSISTANCE
During the twenty-four (24) month period following the effective date
of this Agreement, GM shall provide assistance to AAM to transfer knowledge in
areas relating to AAM's activities as a supplier to GM, including, without
limitation, information relating to materials management systems, existing
component supply agreements and GM purchasing procedures. Such assistance
-9-
<PAGE>
will be provided from time to time by GM personnel with experience in the areas
where assistance is requested when the parties agree there is a need.
Additionally, necessary communication links with GM engineering will be
established.
ARTICLE 9 - PURCHASE OF SCRAP MATERIAL
AAM shall offer GM the first opportunity to purchase any and all scrap
material which results from the manufacture of Existing Components or New
Components hereunder, upon competitive terms to be negotiated by the parties. In
the event AAM receives other bona fide offers to purchase such scrap material,
AAM will provide GM with the opportunity to match or better the price and other
terms of all such offers. If GM matches or betters the price and other terms of
any offer, AAM shall immediately accept GM's offer.
ARTICLE 10 - INSURANCE
10.1 Unless otherwise agreed by GM and AAM, AAM agrees to maintain, at
its own expense, the following types of insurance coverage (underwritten by
insurance companies reasonably satisfactory to GM) at all times from the
effective date of this Agreement through the termination or expiration of this
Agreement:
(a) Broad form comprehensive general liability insurance on an
occurrence form basis (including product, completed operations, and contractual
liability covering the terms of this Agreement), whether primary or excess
coverage, or a combination thereof, with a combined single limit for personal
injury and property damage of not less than Ten Million Dollars ($10,000,000)
per occurrence.
(b) Comprehensive automobile liability insurance, whether
primary or excess coverage, or a combination thereof, with a combined single
limit for personal injury and property damage of not less than Ten Million
Dollars ($10,000,000) per occurrence.
(c) Workers compensation insurance in statutory limits and
employer's liability insurance with a limit of not less than One Million Dollars
($1,000,000), for each state in which AAM operates.
(d) All risk property insurance on a full replacement cost
basis, with no co-insurance requirement.
10.2 Prior to execution of this Agreement, and each year thereafter for
the term of this Agreement, AAM shall provide GM with certificates of insurance
evidencing General Motors Corporation as an additional insured for the coverage
referred to above in Paragraph 10.1 (a), (c), and (d). No cancellation,
modification, or material change to such coverage shall be made without GM's
written approval. AAM agrees to provide its insurer with notice of this
requirement.
ARTICLE 11 - GENERAL PROVISION
10
<PAGE>
11.1 No Agency: This Agreement does not constitute either party the
agent of legal representative of the other party. Neither party is authorized to
create any obligation on behalf of the other party.
11.2 Notices: Any notice under this Agreement shall be in writing
(letter, telex, facsimile or telegram) and shall be effective when received by
the addressee at its address indicated below:
(a) Notice sent to AAM shall be addressed as follows:
American Axle & Manufacturing, Inc.
1840 Holbrook Avenue
Detroit, MI 48212-3488
Attention: VP - Procurement and Materials Management
Facsimile No.: (313) 974-2235
(b) Notice sent to GM shall be addressed as follows:
General Motors Corporation
Worldwide Purchasing
NAO Headquarters
General Motors Corporation
30400 Mound Road 1-8
Warren, MI 48090-9015
Attention: Executive Director
Supplier Quality & Development
Facsimile No.: (313) 986-6704
(c) The parties by notice hereunder may designate other
addresses to which notice shall be sent.
-11-
<PAGE>
11.3 Amendments: No amendment to this Agreement shall be binding upon
either party unless it is in writing and is signed by both parties. This
Agreement and the Asset Purchase Agreement supersede any prior agreements
between the parties concerning the subject matter herein and therein. In the
event there is any conflict between the Asset Purchase Agreement and this
Agreement, this Agreement prevails.
11.4 Assignment: Neither party may assign any of its rights or delegate
any of its duties under this Agreement without first obtaining written consent
of the other party provided, however, that GM may assign any or all of its
rights and obligations to any affiliate or subsidiary of GM.
11.5 Law and Jurisdiction: This Agreement shall be governed by the laws
of the State of Michigan. Each party consents, for purposes of enforcing this
Agreement, to personal jurisdiction, service of process and venue in any state
or federal court within the State of Michigan having jurisdiction over the
subject matter.
IN WITNESS WHEREOF, GM and AAM have caused this Agreement to be
executed in multiple counterparts by their duly authorized representatives.
AMERICAN AXLE & GENERAL MOTORS CORPORATION
MANUFACTURING, INC.
By: /s/ Richard E. Dauch By: /s/ John H. Monk Jr.
-------------------- --------------------
Title: President Title: Finance Director Saginaw Div.
----------------- -----------------------------
Date: 2-28-94 Date: 2-28-94
---------------- -----------------------------
-12-
<PAGE>
EXHIBIT A
Existing Components
Supply Schedule
<PAGE>
MIDSIZE CAR DIVISION
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26038881 AXLE ASM-RR $ ***
26040620 AXLE ASM-RR ***
26041287 AXLE ASM-RR ***
26041536 AXLE ASM-RR ***
26043261 AXLE ASM-RR ***
26043262 AXLE ASM-RR ***
26043263 AXLE ASM-RR ***
26044492 AXLE ASM-RR ***
26045340 AXLE ASM-RR ***
26045341 AXLE ASM-RR ***
26026471 AXLE ASM-RR ***
26040727 AXLE ASM-RR ***
26040728 AXLE ASM-RR ***
26040729 AXLE ASM-RR ***
26040731 AXLE ASM-RR ***
26040732 AXLE ASM-RR ***
26040733 AXLE ASM-RR ***
26040734 AXLE ASM-RR ***
02040735 AXLE ASM-RR ***
26040736 AXLE ASM-RR ***
26040737 AXLE ASM-RR ***
26040738 AXLE ASM-RR ***
26040739 AXLE ASM-RR ***
26040740 AXLE ASM-RR ***
26040741 AXLE ASM-RR ***
26040743 AXLE ASM-RR ***
26040744 AXLE ASM-RR ***
26040745 AXLE ASM-RR ***
26040747 AXLE ASM-RR ***
26041540 AXLE ASM-RR ***
26043032 AXLE ASM-RR ***
26045610 AXLE ASM-RR ***
26045611 AXLE ASM-RR ***
26045612 AXLE ASM-RR ***
07841077 SHAFT ASM-PROP ***
07841078 SHAFT ASM-PROP ***
07842127 SHAFT ASM-PROP ***
26025289 SHAFT ASM-PROP ***
26030603 SHAFT ASM-PROP ***
26039759 SHAFT ASM-PROP ***
</TABLE>
-14-
<PAGE>
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26039989 SHAFT ASM-PROP $ ***
26041126 SHAFT ASM-PROP ***
26041128 SHAFT ASM-PROP ***
26041129 SHAFT ASM-PROP ***
26041428 SHAFT ASM-PROP ***
</TABLE>
-15-
<PAGE>
LANSING POWERTRAIN
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
10215918 CAP-CONN ROD $ ***
14090006 ROD-CONN ***
24571682 ROD-CONN ***
</TABLE>
-16-
<PAGE>
FLINT POWERTRAIN
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
00476522 CAP-CONN ROD $ ***
10127574 ROD-CONN ***
</TABLE>
-17-
<PAGE>
DELCO
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
1350005 SPINDLE FORGING $ ***
1350027 SPINDLE FORGING ***
1350048 SPINDLE FORGING ***
1350074 SPINDLE FORGING ***
1350076 SPINDLE FORGING ***
1350094 SPINDLE FORGING ***
1350097 SPINDLE FORGING ***
</TABLE>
-18-
<PAGE>
MORAINE POWERTRAIN
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
14025524 ROD-CONN $ ***
14025525 CAP-CONN ROD ***
21000891 CONN ROD SATURN ***
</TABLE>
-19-
<PAGE>
WARREN POWERTRAIN
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
00331110 CAP-CONN ROD $ ***
03937756 CAP-CONN ROD ***
03951562 CAP-CONN ROD ***
03973384 CAP-CONN ROD ***
03977112 CAP-CONN ROD ***
10144045 ROD-CONN ***
10201167 ROD-CONN ***
14031311 ROD-CONN ***
14077942 CAP-CONN ROD ***
14095072 ROD-CONN SPEC. ***
93422419 CAP-CONN ROD ***
</TABLE>
-20-
<PAGE>
STABILIZER BAR DATABASE
<TABLE>
<CAPTION>
=============================================================================================================
P/N MY DIV PIECE PRICE P/N MY DIV PIECE PRICE
- --- -- --- ----------- --- -- --- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
14081407 94 CLCD *** 14089551 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
14081408 94 CLCD *** 14089552 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
14081409 94 CLCD *** 14089553 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
25524815 94 CLCD *** 14089584 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
25528807 94 CLCD *** 14101234 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
25558116 94 CLCD *** 26024362 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
25558117 94 CLCD *** 26025316 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
25558135 94 CLCD *** 26032907 94 MCD ***
- -------------------------------------------------------------------------------------------------------------
25559835 94 CLCD *** 15661102 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
25559836 94 CLCD *** 15961006 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
25604384 95 CLCD *** 14056841 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
25606832 95 CLCD *** 14056842 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
25606833 95 CLCD *** 15548449 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
14076604 94 LAD *** 15612681 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
14076605 94 LAD *** 15640308 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
1407667 94 LAD *** 15661102 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
22536401 94 LAD *** 15677613 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
22536402 94 LAD *** 15677614 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
22565626 94 LAD *** 15677615 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
22570016 94 LAD *** 15677616 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
22570022 94 LAD *** 15684329 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
2572336 94 LAD *** 15692903 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
22581617 94 LAD *** 15961006 94 NATP ***
- -------------------------------------------------------------------------------------------------------------
22584364 94 LAD *** 15697719 95 NATP ***
- -------------------------------------------------------------------------------------------------------------
22566681 94 LAD *** 15697720 95 NATP ***
- -------------------------------------------------------------------------------------------------------------
22587443 94 LAD *** 15697721 95 NATP ***
- -------------------------------------------------------------------------------------------------------------
370277 94 MCD *** 15697722 95 NATP ***
- -------------------------------------------------------------------------------------------------------------
457923 94 MCD *** 15697723 95 NATP ***
- -------------------------------------------------------------------------------------------------------------
14087728 94 MCD *** 15981886 95 NATP ***
=============================================================================================================
</TABLE>
-21-
<PAGE>
American Axle - Truck
-22-
<PAGE>
AMERICAN AXLE
PITTMAN ARM
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
15651267 PITMAN ARM ***
-23-
<PAGE>
AMERICAN AXLE
SHAFT -- FRONT STABILIZER BARS
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
14056841 SHAFT-FRT STAB ***
14056842 SHAFT-FRT STAB ***
15548449 SHAFT-FRT STAB ***
15612681 SHAFT-FRT STAB ***
15640308 SHAFT-FRT STAB ***
15661102 SHAFT-FRT STAB ***
15677613 SHAFT-FRT STAB ***
15677614 SHAFT-FRT STAB ***
15677615 SHAFT-FRT STAB ***
15677616 SHAFT-FRT STAB ***
15684329 SHAFT-FRT STAB ***
15692903 SHAFT-FRT STAB ***
15961006 SHAFT-FRT STAB ***
15697719 SHAFT-FRT STAB ***
15697720 SHAFT-FRT STAB ***
15667722 SHAFT-FRT STAB ***
15667723 SHAFT-FRT STAB ***
15981881 SHAFT-FRT STAB ***
15954478 SHAFT-FRT STAB ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
LINKAGE
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ------------ -----------
<S> <C> <C>
15595963 ARM ASSEMBLY-STE ***
26021659 LINKAGE ASM-STRG ***
26031984 LINKAGE ASM-STRG ***
26022148 LINKAGE ASM-STRG ***
26022345 LINKAGE ASM-STRG ***
26022349 LINKAGE ASM-STRG ***
26022350 LINKAGE ASM-STRG ***
26024007 LINKAGE ASM-STRG ***
26027087 ARM ASM-STRG LINK ***
26029411 LINKAGE ASM-STRG ***
26038730 ARM STRG LNKG ***
26038733 LINKAGE ASM-STRG ***
26029412 LINKAGE ASM-STRG ***
26029479 LINKAGE ASM-STRG ***
26031954 ARM ASM-PIT ***
26031958 LINKAGE ASM-STRG ***
26032734 LINKAGE ASM-STRG ***
26033136 LINKAGE ASM-STRG ***
26033137 LINKAGE ASM-STRG ***
26033138 LINKAGE ASM-STRG ***
26033141 LINKAGE ASM-STRG ***
26033144 LINKAGE ASM-STRG ***
26033312 LINKAGE ASM-STRG ***
26034121 LINKAGE ASM-STRG ***
26037755 LINKAGE ASM-STRG ***
26037756 LINKAGE ASM-STRG ***
26039782 STEERING LINKAGE ***
26043599 LINKAGE ASM-STRG ***
26043667 ARM ASM-STRG LNK ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
PROPSHAFTS
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
07841472 SHAFT ASM-PROP ***
07849145 SHAFT ASM-PROP ***
07849146 SHAFT ASM-PROP ***
07849724 SHAFT ASM-PROP ***
26001999 SHAFT ASM-PROP ***
26002001 SHAFT ASM-PROP ***
26002002 SHAFT ASM-PROP ***
26003659 SHAFT ASM-PROP ***
26005059 SHAFT ASM-PROP ***
26006680 SHAFT ASM-FRT PR ***
26006948 SHAFT ASM-F/AXL ***
26010886 SHAFT ASM-RR PRO ***
26010888 SHAFT ASM-RR PRO ***
26010890 SHAFT ASM-RR PRO ***
26010893 SHAFT ASM-RR PRO ***
26012305 SHAFT ASM-PROP ***
26013277 SHAFT ASM-FRT PR ***
26014236 SHAFT ASM-PROP ***
26014287 SHAFT ASM-RR PRO ***
26014288 SHAFT ASM-RR PRO ***
26014290 SHAFT ASM-RR PRO ***
26014904 SHAFT ASM-FRF PR ***
26014905 SHAFT ASM-FRF PR ***
26014906 SHAFT ASM-FRF PR ***
26014907 SHAFT ASM-FRF PR ***
26016452 SHAFT ASM-PROP ***
26018062 SHAFT ASM-RR PRO ***
26018066 SHAFT ASM-RR PRO ***
26019542 SHAFT ASM-PROP ***
26019545 SHAFT ASM-PROP ***
26019546 SHAFT ASM-PROP ***
26019549 SHAFT ASM-PROP ***
26020316 SHAFT ASM-PROP ***
26020317 SHAFT ASM-PROP ***
26020318 SHAFT ASM-PROP ***
26020319 SHAFT ASM-PROP ***
26022466 SHAFT ASM-F/AXL ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
PROPSHAFTS
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26022467 SHAFT ASM-F/AXL ***
26024565 SHAFT ASM-PROP ***
26024566 SHAFT ASM-PROP ***
26026138 SHAFT ASM-PROP ***
26026329 SHAFT ASM-PROP ***
26026330 SHAFT ASM-PROP ***
26026439 SHAFT ASM-PROP ***
26028527 SHAFT ASM-PROP ***
26028733 SHAFT ASM-PROP ***
26029958 SHAFT ASM-F/AXL ***
26029960 SHAFT ASM-PROP ***
26030512 SHAFT ASM-PROP ***
26031924 SHAFT ASM-F/AXL ***
26031926 SHAFT ASM-PROP ***
26032444 SHAFT ASM-PROP ***
26032445 SHAFT ASM-PROP ***
26032446 SHAFT ASM-PROP ***
26032449 SHAFT ASM-PROP ***
26032451 SHAFT ASM-F/AXL ***
26033684 SHAFT ASM-RR PRO ***
26033690 SHAFT ASM-RR PRO ***
26036048 SHAFT ASM-RR PRO ***
26036049 SHAFT ASM-RR PRO ***
26039018 SHAFT ASM-FRT PR ***
26039772 SHAFT ASM-FRT PR ***
26041138 SHAFT ASM-RR PRO ***
26041140 SHAFT ASM-RR PRO ***
26042972 SHAFT ASM-PROP ***
26030320 SHAFT ASM-RR PRO ***
26030321 SHAFT ASM-RR PRO ***
26032448 SHAFT ASM-PROP ***
26033681 SHAFT ASM-PROP ***
26033683 SHAFT ASM-PROP ***
26034733 SHAFT ASM-PROP ***
26038120 SHAFT ASM-F/AXL ***
26038121 SHAFT ASM-F/AXL ***
26038124 SHAFT ASM-F/AXL ***
26038126 SHAFT ASM-F/AXL ***
</TABLE>
-2-
<PAGE>
AMERICAN AXLE
PROPSHAFTS
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26038264 SHAFT ASM-PROP ***
26038265 SHAFT ASM-PROP ***
26041123 SHAFT ASM-PROP ***
26042110 SHAFT ASM-PROP ***
26044064 SHAFT ASM-PROP ***
26044446 SHAFT ASM-PROP ***
26045215 SHAFT ASM-PROP ***
26045216 SHAFT ASM-PROP ***
26045217 SHAFT ASM-PROP ***
26045218 SHAFT ASM-PROP ***
26045219 SHAFT ASM-PROP ***
26045220 SHAFT ASM-PROP ***
26045221 SHAFT ASM-PROP ***
</TABLE>
-3-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- -----------
<S> <C> <C>
26028753 AXLE ASM-RR ***
26028754 AXLE ASM-RR ***
26028755 AXLE ASM-RR ***
26028756 AXLE ASM-RR ***
26028757 AXLE ASM-RR ***
26028758 AXLE ASM-RR ***
26036237 AXLE ASM-RR ***
26036241 AXLE ASM-RR ***
26036242 AXLE ASM-RR ***
26036246 AXLE ASM-RR ***
26036247 AXLE ASM-RR ***
26036248 AXLE ASM-RR ***
26036249 AXLE ASM-RR ***
26036250 AXLE ASM-RR ***
26036251 AXLE ASM-RR ***
26036252 AXLE ASM-RR ***
26036253 AXLE ASM-RR ***
26036256 AXLE ASM-RR ***
26036257 AXLE ASM-RR ***
26036258 AXLE ASM-RR ***
26036260 AXLE ASM-RR ***
26036261 AXLE ASM-RR ***
26036262 AXLE ASM-RR ***
26036263 AXLE ASM-RR ***
26036271 AXLE ASM-RR ***
26036272 AXLE ASM-RR ***
26036273 AXLE ASM-RR ***
26036275 AXLE ASM-RR ***
26036277 AXLE ASM-RR ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICES
- -------- ----------- ------------
<S> <C> <C>
26026301 AXLE ASM-RR ***
26026302 AXLE ASM-RR ***
26027358 AXLE ASM-RR ***
26027361 AXLE ASM-RR ***
26027362 AXLE ASM-RR ***
26028753 AXLE ASM-RR ***
26028754 AXLE ASM-RR ***
26028755 AXLE ASM-RR ***
26028756 AXLE ASM-RR ***
26028757 AXLE ASM-RR ***
26028758 AXLE ASM-RR ***
26028760 AXLE ASM-RR ***
26028761 AXLE ASM-RR ***
26028762 AXLE ASM-RR ***
26028763 AXLE ASM-RR ***
26029259 AXLE ASM-RR ***
26029260 AXLE ASM-RR ***
26029261 AXLE ASM-RR ***
26030334 AXLE ASM-RR ***
26030335 AXLE ASM-RR ***
26030336 AXLE ASM-RR ***
26030337 AXLE ASM-RR ***
26030531 AXLE ASM-RR ***
26030532 AXLE ASM-RR ***
26030533 AXLE ASM-RR ***
26030534 AXLE ASM-RR ***
26030535 AXLE ASM-RR ***
26030536 AXLE ASM-RR ***
26031314 AXLE ASM-RR ***
26031315 AXLE ASM-RR ***
26031316 AXLE ASM-RR ***
26031317 AXLE ASM-RR ***
26031318 AXLE ASM-RR ***
26031319 AXLE ASM-RR ***
26031320 AXLE ASM-RR ***
26031321 AXLE ASM-RR ***
26031322 AXLE ASM-RR ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26031323 AXLE ASM-RR ***
26031324 AXLE ASM-RR ***
26031325 AXLE ASM-RR ***
26031326 AXLE ASM-RR ***
26031327 AXLE ASM-RR ***
26031328 AXLE ASM-RR ***
26031329 AXLE ASM-RR ***
26031330 AXLE ASM-RR ***
26031331 AXLE ASM-RR ***
26031332 AXLE ASM-RR ***
26031333 AXLE ASM-RR ***
26031334 AXLE ASM-RR ***
26031335 AXLE ASM-RR ***
26031336 AXLE ASM-RR ***
26031337 AXLE ASM-RR ***
26031333 AXLE ASM-RR ***
26031741 AXLE ASM-RR ***
26031920 AXLE ASM-RR ***
26031921 AXLE ASM-RR ***
26031922 AXLE ASM-RR ***
26031992 AXLE ASM-RR ***
26032425 AXLE ASM-RR ***
26032426 AXLE ASM-RR ***
26032427 AXLE ASM-RR ***
26032428 AXLE ASM-RR ***
26036861 AXLE ASM-RR ***
26037330 AXLE ASM-RR ***
26038315 AXLE ASM-RR ***
26040912 AXLE ASM-RR ***
26041150 AXLE ASM-RR ***
26041151 AXLE ASM-RR ***
26041225 AXLE ASM-RR ***
26041477 AXLE ASM-RR ***
26043004 AXLE ASM-RR ***
26043005 AXLE ASM-RR ***
26043226 AXLE ASM-RR ***
26043227 AXLE ASM-PR ***
</TABLE>
-2-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26036266 AXLE ASM-RR ***
26036267 AXLE ASM-RR ***
26036268 AXLE ASM-RR ***
26036269 AXLE ASM-RR ***
26036270 AXLE ASM-RR ***
26036279 AXLE ASM-RR ***
26036281 AXLE ASM-RR ***
26036282 AXLE ASM-RR ***
26036283 AXLE ASM-RR ***
26036284 AXLE ASM-RR ***
26036285 AXLE ASM-RR ***
26036286 AXLE ASM-RR ***
26036287 AXLE ASM-RR ***
26036288 AXLE ASM-RR ***
26036289 AXLE ASM-RR ***
26036290 AXLE ASM-RR ***
26041351 AXLE ASM-RR ***
26041352 AXLE ASM-RR ***
26041353 AXLE ASM-RR ***
26041354 AXLE ASM-RR ***
26042594 AXLE ASM-RR ***
26042596 AXLE ASM-RR ***
26042597 AXLE ASM-RR ***
26042598 AXLE ASM-RR ***
26042599 AXLE ASM-RR ***
26042600 AXLE ASM-RR ***
26042601 AXLE ASM-RR ***
26042602 AXLE ASM-RR ***
26042603 AXLE ASM-RR ***
26042605 AXLE ASM-RR ***
26042606 AXLE ASM-RR ***
26043583 AXLE ASM-FRT ***
26043584 AXLE ASM-FRT ***
26043585 AXLE ASM-FRT ***
26043586 AXLE ASM-FRT ***
26043587 AXLE ASM-FRT ***
26043588 AXLE ASM-FRT ***
26043589 AXLE ASM-FRT ***
26044281 AXLE ASM-RR ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26044282 AXLE ASM-RR ***
26044283 AXLE ASM-RR ***
26044284 AXLE ASM-RR ***
26044321 AXLE ASM-RR ***
26044322 AXLE ASM-RR ***
26044363 AXLE ASM-RR ***
26044364 AXLE ASM-RR ***
26044365 AXLE ASM-RR ***
26044366 AXLE ASM-RR ***
26044367 AXLE ASM-RR ***
26044369 AXLE ASM-RR ***
26044370 AXLE ASM-RR ***
26044371 AXLE ASM-RR ***
26045031 AXLE ASM-FRT ***
</TABLE>
-2-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
15692851 SUSPENSION ASM-F ***
15692852 SUSPENSION ASM-F ***
15692853 SUSPENSION ASM-F ***
15692854 SUSPENSION ASM-F ***
15692855 SUSPENSION ASM-F ***
15692856 SUSPENSION ASM-F ***
15692857 SUSPENSION ASM-F ***
15692858 SUSPENSION ASM-F ***
15692860 SUSPENSION ASM-F ***
15692861 SUSPENSION ASM-F ***
15692862 SUSPENSION ASM-F ***
15692863 SUSPENSION ASM-F ***
15692864 SUSPENSION ASM-F ***
15692865 SUSPENSION ASM-F ***
15692868 SUSPENSION ASM-F ***
15692869 SUSPENSION ASM-F ***
15692870 SUSPENSION ASM-F ***
15692871 SUSPENSION ASM-F ***
15692872 SUSPENSION ASM-F ***
15692873 SUSPENSION ASM-F ***
15692874 SUSPENSION ASM-F ***
15692875 SUSPENSION ASM-F ***
15693108 SUSPENSION ASM-F ***
15693109 SUSPENSION ASM-F ***
15693110 SUSPENSION ASM-F ***
15699900 SUSPENSION ASM-F ***
15699901 SUSPENSION ASM-F ***
15699902 SUSPENSION ASM-F ***
15699903 SUSPENSION ASM-F ***
15699904 SUSPENSION ASM-F ***
15699906 SUSPENSION ASM-F ***
15699907 SUSPENSION ASM-F ***
15699908 SUSPENSION ASM-F ***
15699909 SUSPENSION ASM-F ***
15699911 SUSPENSION ASM-F ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
15699914 SUSPENSION ASM-F ***
15699915 SUSPENSION ASM-F ***
15699916 SUSPENSION ASM-F ***
15699917 SUSPENSION ASM-F ***
15699918 SUSPENSION ASM-F ***
15699919 SUSPENSION ASM-F ***
15699920 SUSPENSION ASM-F ***
15699969 SUSPENSION ASM-F ***
15972492 SUSPENSION ASM-F ***
15972493 SUSPENSION ASM-F ***
15984896 SUSPENSION ASM-F ***
15984897 SUSPENSION ASM-F ***
15984898 SUSPENSION ASM-F ***
15984899 SUSPENSION ASM-F ***
15984900 SUSPENSION ASM-F ***
15984901 SUSPENSION ASM-F ***
15984902 SUSPENSION ASM-F ***
15984903 SUSPENSION ASM-F ***
15984904 SUSPENSION ASM-F ***
15984905 SUSPENSION ASM-F ***
15984906 SUSPENSION ASM-F ***
15984907 SUSPENSION ASM-F ***
15984908 SUSPENSION ASM-F ***
15984909 SUSPENSION ASM-F ***
15988026 SUSPENSION ASM-F ***
15988027 SUSPENSION ASM-F ***
15988028 SUSPENSION ASM-F ***
15988029 SUSPENSION ASM-F ***
26017493 AXLE ASM-RR ***
26017494 AXLE ASM-RR ***
26017495 AXLE ASM-RR ***
26017497 AXLE ASM-RR ***
26017498 AXLE ASM-RR ***
26017499 AXLE ASM-RR ***
26017597 AXLE ASM-RR ***
26017600 AXLE ASM-RR ***
26017603 AXLE ASM-RR ***
26017604 AXLE ASM-RR ***
26017605 AXLE ASM-RR ***
26017606 AXLE ASM-RR ***
26017607 AXLE ASM-RR ***
</TABLE>
-2-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26017608 AXLE ASM-RR ***
26018558 AXLE ASM-RR ***
26018561 AXLE ASM-RR ***
26018643 AXLE ASM-RR ***
26018644 AXLE ASM-RR ***
26018645 AXLE ASM-RR ***
26018646 AXLE ASM-RR ***
26021793 AXLE ASM-RR ***
26021794 AXLE ASM-RR ***
26021795 AXLE ASM-RR ***
26021796 AXLE ASM-RR ***
26021797 AXLE ASM-RR ***
26021798 AXLE ASM-RR ***
26021799 AXLE ASM-RR ***
26021800 AXLE ASM-RR ***
26021801 AXLE ASM-RR ***
26021802 AXLE ASM-RR ***
26021803 AXLE ASM-RR ***
26021804 AXLE ASM-RR ***
26021805 AXLE ASM-RR ***
26021806 AXLE ASM-RR ***
26021807 AXLE ASM-RR ***
26021808 AXLE ASM-RR ***
26021810 AXLE ASM-RR ***
26021811 AXLE ASM-RR ***
26021812 AXLE ASM-RR ***
26021813 AXLE ASM-RR ***
26021814 AXLE ASM-RR ***
26021815 AXLE ASM-RR ***
26021816 AXLE ASM-RR ***
26021817 AXLE ASM-RR ***
26021818 AXLE ASM-RR ***
26021819 AXLE ASM-RR ***
26021820 AXLE ASM-RR ***
26021821 AXLE ASM-RR ***
26022348 AXLE ASM-RR ***
26025141 AXLE ASM-RR ***
26025142 AXLE ASM-RR ***
26025143 AXLE ASM-RR ***
26025144 AXLE ASM-RR ***
26025145 AXLE ASM-RR ***
</TABLE>
-3-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26025146 AXLE ASM-RR ***
26025147 AXLE ASM-RR ***
26025148 AXLE ASM-RR ***
26028333 AXLE ASM-RR ***
26028334 AXLE ASM-RR ***
26028335 AXLE ASM-RR ***
26028336 AXLE ASM-RR ***
26028337 AXLE ASM-RR ***
26028338 AXLE ASM-RR ***
26028339 AXLE ASM-RR ***
26028340 AXLE ASM-RR ***
26028341 AXLE ASM-RR ***
26028342 AXLE ASM-RR ***
26028343 AXLE ASM-RR ***
26028344 AXLE ASM-RR ***
26028978 AXLE ASM-RR ***
26028979 AXLE ASM-RR ***
26028980 AXLE ASM-RR ***
26028981 AXLE ASM-RR ***
26029549 AXLE ASM-RR ***
26029552 AXLE ASM-RR ***
26029554 AXLE ASM-RR ***
26029555 AXLE ASM-RR ***
26029556 AXLE ASM-RR ***
26029557 AXLE ASM-RR ***
26029558 AXLE ASM-RR ***
26029559 AXLE ASM-RR ***
26029560 AXLE ASM-RR ***
26029561 AXLE ASM-RR ***
26029562 AXLE ASM-RR ***
26029563 AXLE ASM-RR ***
26029564 AXLE ASM-RR ***
26029565 AXLE ASM-RR ***
26029566 AXLE ASM-RR ***
26029567 AXLE ASM-RR ***
26029568 AXLE ASM-RR ***
26029569 AXLE ASM-RR ***
26029570 AXLE ASM-RR ***
26029571 AXLE ASM-RR ***
26029573 AXLE ASM-RR ***
26029574 AXLE ASM-RR ***
</TABLE>
-4-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26029575 AXLE ASM-RR ***
26029576 AXLE ASM-RR ***
26029578 AXLE ASM-RR ***
26029579 AXLE ASM-RR ***
26029580 AXLE ASM-RR ***
26029581 AXLE ASM-RR ***
26029582 AXLE ASM-RR ***
26029583 AXLE ASM-RR ***
26029584 AXLE ASM-RR ***
26029585 AXLE ASM-RR ***
26029586 AXLE ASM-RR ***
26029587 AXLE ASM-RR ***
26029588 AXLE ASM-RR ***
26029589 AXLE ASM-RR ***
26029590 AXLE ASM-RR ***
26029591 AXLE ASM-RR ***
26029592 AXLE ASM-RR ***
26029593 AXLE ASM-RR ***
26029594 AXLE ASM-RR ***
26029595 AXLE ASM-RR ***
26029597 AXLE ASM-RR ***
26029598 AXLE ASM-RR ***
26029599 AXLE ASM-RR ***
26029600 AXLE ASM-RR ***
26029601 AXLE ASM-RR ***
26029602 AXLE ASM-RR ***
26029604 AXLE ASM-RR ***
26029605 AXLE ASM-RR ***
26029606 AXLE ASM-RR ***
26029607 AXLE ASM-RR ***
26029608 AXLE ASM-RR ***
26029609 AXLE ASM-RR ***
26029638 AXLE ASM-RR ***
26029639 AXLE ASM-RR ***
26029640 AXLE ASM-RR ***
26029641 AXLE ASM-RR ***
26029666 AXLE ASM-RR ***
26029668 AXLE ASM-RR ***
26029669 AXLE ASM-RR ***
26029670 AXLE ASM-RR ***
26029671 AXLE ASM-RR ***
</TABLE>
-5-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26029672 AXLE ASM-RR ***
26029673 AXLE ASM-RR ***
26029674 AXLE ASM-RR ***
26029675 AXLE ASM-RR ***
26029676 AXLE ASM-RR ***
26029677 AXLE ASM-RR ***
26029678 AXLE ASM-RR ***
26029679 AXLE ASM-RR ***
26029680 AXLE ASM-RR ***
26029681 AXLE ASM-RR ***
26029682 AXLE ASM-RR ***
26029683 AXLE ASM-RR ***
26029686 AXLE ASM-RR ***
26029687 AXLE ASM-RR ***
26029688 AXLE ASM-RR ***
26029690 AXLE ASM-RR ***
26029691 AXLE ASM-RR ***
26029692 AXLE ASM-RR ***
26029693 AXLE ASM-RR ***
26029694 AXLE ASM-RR ***
26029695 AXLE ASM-RR ***
26029696 AXLE ASM-RR ***
26029697 AXLE ASM-RR ***
26029699 AXLE ASM-RR ***
26029700 AXLE ASM-RR ***
26029701 AXLE ASM-RR ***
26029702 AXLE ASM-RR ***
26029703 AXLE ASM-RR ***
26029704 AXLE ASM-RR ***
26029706 AXLE ASM-RR ***
26029707 AXLE ASM-RR ***
26029708 AXLE ASM-RR ***
26029709 AXLE ASM-RR ***
26029710 AXLE ASM-RR ***
26029711 AXLE ASM-RR ***
26029713 AXLE ASM-RR ***
26029714 AXLE ASM-RR ***
26029715 AXLE ASM-RR ***
26029716 AXLE ASM-RR ***
26029717 AXLE ASM-RR ***
26029718 AXLE ASM-RR ***
</TABLE>
-6-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26029719 AXLE ASM-RR ***
26029720 AXLE ASM-RR ***
26029735 AXLE ASM-RR ***
26029738 AXLE ASM-RR ***
26029739 AXLE ASM-RR ***
26029741 AXLE ASM-RR ***
26029743 AXLE ASM-RR ***
26029744 AXLE ASM-RR ***
26029745 AXLE ASM-RR ***
26029746 AXLE ASM-RR ***
26029747 AXLE ASM-RR ***
26029748 AXLE ASM-RR ***
26029749 AXLE ASM-RR ***
26029750 AXLE ASM-RR ***
26029858 AXLE ASM-RR ***
26029859 AXLE ASM-RR ***
26029860 AXLE ASM-RR ***
26029862 AXLE ASM-RR ***
26029863 AXLE ASM-RR ***
26029864 AXLE ASM-RR ***
26029869 AXLE ASM-RR ***
26029870 AXLE ASM-RR ***
26029871 AXLE ASM-RR ***
26029872 AXLE ASM-RR ***
26029879 AXLE ASM-RR ***
26029880 AXLE ASM-RR ***
26029881 AXLE ASM-RR ***
25029882 AXLE ASM-RR ***
26029883 AXLE ASM-RR ***
26029884 AXLE ASM-RR ***
26029889 AXLE ASM-RR ***
26029890 AXLE ASM-RR ***
26029891 AXLE ASM-RR ***
26029892 AXLE ASM-RR ***
26029900 AXLE ASM-RR ***
26029901 AXLE ASM-RR ***
26029902 AXLE ASM-RR ***
</TABLE>
-1-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26029903 AXLE ASM-RR ***
26029904 AXLE ASM-RR ***
26029905 AXLE ASM-RR ***
26029954 AXLE ASM-RR ***
26029956 AXLE ASM-RR ***
26029964 AXLE ASM-RR ***
26029965 AXLE ASM-RR ***
26029966 AXLE ASM-RR ***
26029967 AXLE ASM-RR ***
26029968 AXLE ASM-RR ***
26029969 AXLE ASM-RR ***
26029970 AXLE ASM-RR ***
26029971 AXLE ASM-RR ***
26029972 AXLE ASM-RR ***
26029973 AXLE ASM-RR ***
26029974 AXLE ASM-RR ***
26029975 AXLE ASM-RR ***
26030052 AXLE ASM-RR ***
26030053 AXLE ASM-RR ***
26030054 AXLE ASM-RR ***
26030734 AXLE ASM-RR ***
26030735 AXLE ASM-RR ***
26030736 AXLE ASM-RR ***
26030737 AXLE ASM-RR ***
26030738 AXLE ASM-RR ***
26030739 AXLE ASM-RR ***
26030740 AXLE ASM-RR ***
26030741 AXLE ASM-RR ***
26031725 AXLE ASM-RR ***
26031842 AXLE ASM-RR ***
26031843 AXLE ASM-RR ***
26031844 AXLE ASM-RR ***
26031846 AXLE ASM-RR ***
26031847 AXLE ASM-RR ***
26031848 AXLE ASM-RR ***
26031849 AXLE ASM-RR ***
26031851 AXLE ASM-RR ***
26031852 AXLE ASM-RR ***
</TABLE>
-2-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26031853 AXLE ASM-RR ***
26031855 AXLE ASM-RR ***
26031856 AXLE ASM-RR ***
26031858 AXLE ASM-RR ***
26031859 AXLE ASM-RR ***
26031860 AXLE ASM-RR ***
26031861 AXLE ASM-RR ***
26031863 AXLE ASM-RR ***
26031864 AXLE ASM-RR ***
36031865 AXLE ASM-RR ***
26031866 AXLE ASM-RR ***
26032437 AXLE ASM-RR ***
26032438 AXLE ASM-RR ***
26032439 AXLE ASM-RR ***
26032440 AXLE ASM-RR ***
26032441 AXLE ASM-RR ***
26032442 AXLE ASM-RR ***
26034162 AXLE ASM-RR ***
26034163 AXLE ASM-RR ***
26034164 AXLE ASM-RR ***
26034165 AXLE ASM-RR ***
26034166 AXLE ASM-RR ***
26034167 AXLE ASM-RR ***
26034168 AXLE ASM-RR ***
26034169 AXLE ASM-RR ***
26034170 AXLE ASM-RR ***
26034171 AXLE ASM-RR ***
26034172 AXLE ASM-RR ***
26034173 AXLE ASM-RR ***
26034174 AXLE ASM-RR ***
26034175 AXLE ASM-RR ***
26034176 AXLE ASM-RR ***
26034177 AXLE ASM-RR ***
26034178 AXLE ASM-RR ***
26034179 AXLE ASM-RR ***
26034180 AXLE ASM-RR ***
</TABLE>
-3-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26034181 AXLE ASM-RR ***
26034589 AXLE ASM-RR ***
26034590 AXLE ASM-RR ***
26034666 AXLE ASM-RR ***
26035245 AXLE ASM-RR ***
26035246 AXLE ASM-RR ***
26035247 AXLE ASM-RR ***
26035248 AXLE ASM-RR ***
26035338 AXLE ASM-RR ***
26035389 AXLE ASM-RR ***
26035390 AXLE ASM-RR ***
26035391 AXLE ASM-RR ***
26036553 AXLE ASM-RR ***
26036554 AXLE ASM-RR ***
26036556 AXLE ASM-RR ***
26036557 AXLE ASM-RR ***
26036558 AXLE ASM-RR ***
26036559 AXLE ASM-RR ***
26036560 AXLE ASM-RR ***
26036882 AXLE ASM-RR ***
26036883 AXLE ASM-RR ***
26036884 AXLE ASM-RR ***
26036885 AXLE ASM-RR ***
26036886 AXLE ASM-RR ***
26036887 AXLE ASM-RR ***
26036888 AXLE ASM-RR ***
26036889 AXLE ASM-RR ***
26036890 AXLE ASM-RR ***
26036891 AXLE ASM-RR ***
26036892 AXLE ASM-RR ***
26036895 AXLE ASM-RR ***
26036898 AXLE ASM-RR ***
26036899 AXLE ASM-RR ***
26036900 AXLE ASM-RR ***
26036901 AXLE ASM-RR ***
26036902 AXLE ASM-RR ***
</TABLE>
-4-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26036903 AXLE ASM-RR ***
26036904 AXLE ASM-RR ***
26036905 AXLE ASM-RR ***
26036906 AXLE ASM-RR ***
26036907 AXLE ASM-RR ***
26036908 AXLE ASM-RR ***
26036909 AXLE ASM-RR ***
26036910 AXLE ASM-RR ***
26030911 AXLE ASM-RR ***
26038027 AXLE ASM-RR ***
26038028 AXLE ASM-RR ***
26038879 AXLE ASM-RR ***
26038880 AXLE ASM-RR ***
26039823 AXLE ASM-RR ***
26039824 AXLE ASM-RR ***
26034825 AXLE ASM-RR ***
26041583 AXLE ASM-RR ***
26041584 AXLE ASM-RR ***
26043544 AXLE ASM-RR ***
26043545 AXLE ASM-RR ***
26043546 AXLE ASM-RR ***
96043547 AXLE ASM-RR ***
26043548 AXLE ASM-RR ***
26045287 AXLE ASM-RR ***
26039667 AXLE ASM-RR ***
26039671 AXLE ASM-RR ***
26039673 AXLE ASM-RR ***
26039674 AXLE ASM-RR ***
26039675 AXLE ASM-RR ***
26039676 AXLE ASM-RR ***
26039679 AXLE ASM-RR ***
26039680 AXLE ASM-RR ***
26039683 AXLE ASM-RR ***
26039684 AXLE ASM-RR ***
96039685 AXLE ASM-RR ***
26039686 AXLE ASM-RR ***
</TABLE>
-5-
<PAGE>
AMERICAN AXLE
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26039689 AXLE ASM-RR ***
26039691 AXLE ASM-RR ***
26039692 AXLE ASM-RR ***
26039693 AXLE ASM-RR ***
26039694 AXLE ASM-RR ***
26039697 AXLE ASM-RR ***
26039699 AXLE ASM-RR ***
26039700 AXLE ASM-RR ***
26039701 AXLE ASM-RR ***
26039702 AXLE ASM-RR ***
26041695 AXLE ASM-RR ***
26041696 AXLE ASM-RR ***
26041697 AXLE ASM-RR ***
26042346 AXLE ASM-RR ***
26042349 AXLE ASM-RR ***
26042350 AXLE ASM-RR ***
</TABLE>
-6-
<PAGE>
AMERICAN AXLE
DETROIT ASSEMBLY
AXLES
<TABLE>
<CAPTION>
PART NO. DESCRIPTION PIECE PRICE
- -------- ----------- -----------
<S> <C> <C>
26021917 AXLE ASM-RR ***
26021918 AXLE ASM-RR ***
26021919 AXLE ASM-RR ***
26021920 AXLE ASM-RR ***
26021921 AXLE ASM-RR ***
26021923 AXLE ASM-RR ***
26021924 AXLE ASM-RR ***
26021925 AXLE ASM-RR ***
26021926 AXLE ASM-RR ***
26021927 AXLE ASM-RR ***
26021929 AXLE ASM-RR ***
26021930 AXLE ASM-RR ***
26021931 AXLE ASM-RR ***
26021932 AXLE ASM-RR ***
26035017 AXLE ASM-RR ***
26035018 AXLE ASM-RR ***
26035019 AXLE ASM-RR ***
26035020 AXLE ASM-RR ***
26035021 AXLE ASM-RR ***
</TABLE>
-1-
<PAGE>
EXHIBIT B
Service Parts
Supply Schedule
<PAGE>
2
PURCHASING PARTS ON CONTRACT
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28660
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
00231075 PINION 89 217 320 3120 AM19107 C *** *** 17
00326879 SHIELD 93 217 70 C *** *** 18
00327721 RING & 89 217 1163 0 B *** *** 17
00327723 HYPOID 89 217 0 B *** *** 17
00329396 PLATE A 86 217 39 B *** *** 18
00331409 PLATE 87 217 285 B *** *** 18
00331410 PLATE A 87 217 264 B *** *** 18
00331470 SHIELD 94 217 67 B *** *** 18
00334303 LEVER 88 217 84 B *** *** 18
00334304 SHF 88 217 93 B *** *** 18
00335674 SPL SHI 94 217 130 B *** *** 19
00341185 BRACKET 93 217 105 B *** *** 19
00341186 BRACKET 94 217 110 B *** *** 19
00341191 BRACKET 91 217 35 B *** *** 19
00341192 BRACKET 91 217 39 B *** *** 19
</TABLE>
<PAGE>
3
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
00341192 BRACKET 91 217 39 B *** *** 19
00343494 C/MBR 93 217 330 B *** *** 23
00352982 PKG 94 130 3593 0 AM80723 T *** *** 18
00355044 CROSS M 94 217 0 0 B *** *** 23
00355047 BRACKET 94 217 26 B *** *** 19
00355048 BRACKET 94 271 28 B *** *** 19
00357845 PKG 95 217 1143 AM88413 T *** *** 18
00357846 PKG 94 217 1261 AM88413 T *** *** 18
00371527 CABLE 83 217 8933 78 AM32653 B *** *** 18
00471870 PKG 88 217 52 7022 AM80723 T *** *** 17
00471879 PKG 81 217 169 14461 AM80723 T *** *** 17
01244646 PKG 95 217 7210 AM88413 T *** *** 18
01258707 RING&PI 87 217 14 0 AM80723 T *** *** 17
01259649 DRUM AS 93 217 6723 AM80723 T *** *** 18
03663696 PKG 94 217 2441 U *** *** 17
</TABLE>
<PAGE>
4
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
03663696 PKG 94 217 2441 U *** *** 17
03846078 PKG 81 217 1887 9917 AM80723 T *** *** 17
03880140 PINION 81 130 3882 6136 B *** *** 17
03883310 PKG 70 217 270 0 AM80723 T *** *** 18
03907837 PKG 94 217 1750 0 AM80723 T *** *** 19
03907838 PKG 94 217 1532 0 AM80723 T *** *** 17
03961419 PKG 79 217 65 13012 AM80723 T *** *** 17
03961420 PKG 79 217 98 13095 AM80723 T *** *** 17
03961431 RING AN 77 217 37 8560 AM56064 U *** *** 17
03977344 GEAR 95 217 4517 0 AM80723 T *** *** 17
03977383 SHAFT 95 217 660 AM80723 T *** *** 17
03977384 SHAFT 94 217 533 0 AM80723 T *** *** 17
03977397 PKG 94 217 552 0 AM80723 T *** *** 18
03984855 PKG 89 217 534 1000 AM88413 T *** *** 18
03988515 RING & 92 217 541 0 AM80723 T *** *** 17
</TABLE>
<PAGE>
5
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
03988515 RING & 92 217 341 0 AM80723 T *** *** 17
03988524 PKG 91 217 2391 AM80723 T *** *** 17
03993448 PINION 95 130 9151 0 AM47968 C *** *** 17
06258336 PKG 95 217 1109 0 AM80723 T *** *** 17
06258340 PKG 95 217 351 0 AM80723 T *** *** 17
06260588 PKG 94 217 880 0 AM80723 T *** *** 18
06260829 PKG 80 217 319 6391 AM80723 T *** *** 18
06260830 DRUM 89 217 124 AM80723 T *** *** 18
06270977 GEAR 91 217 1130 0 B *** *** 17
07828414 FLANGE 89 217 5000 0 B *** *** 17
14004181 CLMBR 94 217 7 B *** *** 23
14007605 ARM ASM 91 217 848 B *** *** 19
14007606 ARM ASM 91 217 779 B *** *** 19
14012539 KNUCKLE 89 217 510 B *** *** 19
14012540 KNUCKLE 89 217 470 B *** *** 19
</TABLE>
<PAGE>
6
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14012540 KNUCKLE 89 217 470 B *** *** 19
14012695 CASE 89 217 1941 B *** *** 17
14012696 PKG 89 217 9703 B *** *** 17
14012698 PKG 95 130 12033 0 AM80723 T *** *** 17
14012704 GEAR & 95 217 151 AM88413 T *** *** 17
14012759 DRUM BR 89 217 74 B *** *** 18
14020936 BRK DRU 83 217 14 4856 B *** *** 18
14022236 PKG 87 217 170 0 AM80723 T *** *** 17
14022237 PKG 81 217 125 12354 AM80723 T *** *** 17
14024520 CR/MBR 81 217 40 14502 AM80723 T *** *** 23
14026581 ARM ASM 91 217 4353 B *** *** 19
14026582 ARM ASM 94 217 4872 B *** *** 19
14026587 ARM ASM 94 217 905 B *** *** 19
14026588 ARM ASM 94 217 1081 B *** *** 19
14026591 ARM ASM 94 217 313 B *** *** 19
</TABLE>
<PAGE>
7
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14026591 ARM ASM 94 217 313 B *** *** 19
14026592 ARM ASM 94 217 277 B *** *** 19
14026593 ARM ASM 94 217 206 B *** *** 19
14026594 ARM ASM 94 217 213 B *** *** 19
14026595 ARM ASM 83 217 94 B *** *** 19
14026596 ARM ASM 83 217 74 B *** *** 19
14026597 ARM ASM 94 217 121 B *** *** 19
14026598 ARM ASM 94 217 139 B *** *** 19
14030434 CASE 87 217 15 0 AM80723 T *** *** 17
14030435 PKG 89 217 58 0 AM80723 T *** *** 17
14033568 PKG 90 217 106 AM80723 T *** *** 17
14034565 CABLE A 83 217 623 78 AM32653 B *** *** 18
14034946 PKG 95 217 32 0 AM80723 T *** *** 17
14035395 PKG 95 217 1979 0 AM80723 T *** *** 17
14035542 PKG 88 217 2972 3919 AM80723 T *** *** 17
</TABLE>
<PAGE>
8
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14035542 PKG 88 217 2972 3919 AM80723 T *** *** 17
14038001 PKG 93 217 120 0 AM80723 T *** *** 17
14038893 CABLE 83 217 96 B *** *** 18
14038894 CABLE 83 217 111 B *** *** 18
14039547 PKG 88 217 6118 601 AM80723 T *** *** 17
14039581 GEAR 87 217 104 AM91950 B *** *** 17
14039582 FLANGE 95 217 156 AM80723 T *** *** 17
14039596 PKG 95 217 604 0 AM80723 T *** *** 17
14041986 SHFT AS 95 217 913 B *** *** 17
14041991 SHAFT A 91 217 2711 B *** *** 17
14041997 PKG 95 217 2432 AM80723 T *** *** 17
14042628 DIFF CS 95 217 77 B *** *** 17
14042690 PKG 88 217 2972 600 AM80723 T *** *** 17
14046959 FLANGE 87 217 576 B *** *** 17
14050301 DRUM BR 89 217 42 B *** *** 18
</TABLE>
<PAGE>
9
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14050301 DRUM BR 89 217 42 B *** *** 18
14050302 PKG 95 217 2109 AM99822 U *** *** 18
14051219 BRKT 94 217 20 B *** *** 19
14051220 BRKT 94 217 21 B *** *** 19
14054919 COVER A 95 217 930 C *** *** 17
14054937 SHIELD 92 217 169 0 B *** *** 18
14054938 SHIELD 92 217 122 0 B *** *** 18
14055901 DIFF PI 87 217 129 B *** *** 17
14055902 SIDE GE 87 217 53 B *** *** 17
14066879 ARM ASM 89 217 70 B *** *** 19
14066880 ARM ASM 89 217 49 B *** *** 19
14067139 ARM ASM 94 217 50 B *** *** 19
14067140 ARM ASM 94 217 42 AM66512 B *** *** 19
14067480 PKG 93 217 98 AM80723 T *** *** 17
14068965 WLDG BR 89 217 33 B *** *** 18
</TABLE>
<PAGE>
10
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14068965 WLDG BR 89 217 33 B *** *** 18
14068966 WLDG AS 89 217 34 B *** *** 18
14070253 CARRIER 83 217 0 0 AM80723 T *** *** 17
14070351 PKG 89 217 1694 AM80723 T *** *** 18
14071743 PKG 90 217 87 AM80723 T *** *** 17
14072919 SPINDLE 84 217 4 1350 B *** *** 19
14079327 DIFF CA 90 217 16 AM99822 B *** *** 17
14079328 DIFF CA 90 217 38 AM80723 T *** *** 17
14079332 DIFF CA 87 217 26 1106 B *** *** 17
14086864 SHAFT R 89 217 7 AM80723 T *** *** 17
15521887 PKG 94 217 367 0 U *** *** 17
15521892 PKG 88 217 493 602 AM80723 T *** *** 17
15521907 PKG 94 217 315 0 AM80723 T *** *** 17
15521928 PKG 95 217 345 AM80723 T *** *** 17
15521970 PKG 95 217 1833 U *** *** 17
</TABLE>
<PAGE>
11
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15521970 PKG 95 217 1833 U *** *** 17
15522066 SHAFT 88 217 478 600 U *** *** 17
15522068 REAR AX 95 217 248 B *** *** 17
15522070 SHAFT 95 217 707 C *** *** 17
15522176 MEMBER 94 217 18 B *** *** 23
15551438 GEAR & 89 217 12 0 B *** *** 17
15572988 PKG 94 217 949 AM80723 T *** *** 17
15573202 PKG 94 217 436 AM80723 T *** *** 17
15581539 PKG 95 217 236 0 AM80723 T *** *** 17
15581540 PKG 95 217 72 0 AM80723 T *** *** 17
15581541 PKG 95 217 28 0 AM80723 T *** *** 17
15581542 GEAR UN 95 217 40 B *** *** 17
15581546 GEAR UN 95 383 384 B *** *** 17
15581547 PKG 95 217 297 0 AM80723 T *** *** 17
15581548 GEAR UN 95 217 163 B *** *** 17
</TABLE>
<PAGE>
12
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15581548 GEAR UN 95 217 163 B *** *** 17
15583114 DRUM RE 90 217 96 0 T *** *** 18
15588224 PKG 94 217 2273 AM80723 T *** *** 18
15588225 PKG 94 217 1482 AM80723 T *** *** 18
15588321 RING PI 93 217 384 AM80723 T *** *** 17
15588336 DEFLECT 94 217 150 B *** *** 17
15588355 CONNECT 94 217 847 B *** *** 17
15588366 SHAFT 94 217 860 B *** *** 17
15589588 PKG 94 217 726 AM80723 T *** *** 18
15597827 MEMBER 95 217 98 B *** *** 23
15597839 MEMBER 94 217 81 B *** *** 23
15598364 MEMBER 94 217 4 B *** *** 23
15598369 ARM ASM 89 217 60 B *** *** 19
15598370 ARM ASM 89 217 58 B *** *** 19
15599301 ARM ASM 89 217 304 B *** *** 19
</TABLE>
<PAGE>
13
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15599301 ARM ASM 89 217 304 B *** *** 19
15599302 ARM ASM 89 217 406 B *** *** 19
15599355 LOWER C 88 217 3 B *** *** 19
15599356 LOWER C 88 217 7 B *** *** 24
15604865 C/MBR & 94 217 0 B *** *** 23
15622341 PLATE & 91 217 16 B *** *** 18
15462342 PLATE & 91 217 29 0 B *** *** 18
15622360 PKG 94 217 2759 0 AM80723 T *** *** 18
15622362 PKG2 91 217 2343 0 AM80723 T *** *** 18
15631323 STRG LO 90 217 1426 0 B *** *** 19
15631324 LOWER C 90 217 1665 0 B *** *** 19
15633141 ARM 92 389 1426 AM55780 B *** *** 19
15633142 ARM 92 389 1665 AM55780 B *** *** 19
15633399 BRAKE D 94 217 185 AM80723 T *** *** 18
15635951 SERVICE 94 217 4741 B *** *** 18
</TABLE>
<PAGE>
14
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15635951 SERVICE 94 217 4741 B *** *** 18
15741564 HUB 94 217 128 0 AM80723 T *** *** 18
15741586 PKG 95 217 614 AM80723 T *** *** 18
15649166 HUB ASM 91 217 40 0 B *** *** 18
15649193 PKG 95 217 1585 0 AM88413 T *** *** 18
15649194 PKG 94 217 1041 0 AM88413 T *** *** 18
15650041 PKG 94 217 71 AM88413 T *** *** 18
15674407 STAB 94 217 169 AM66898 B *** *** 18
15674441 HUB AND 94 217 96 0 AM77858 B *** *** 18
15677039 HUB AND 94 217 96 0 AM49331 U *** *** 18
15677155 LOWER C 93 217 567 0 AM59191 B *** *** 19
15677156 ARM 93 217 1072 0 AM59361 B *** *** 19
15677157 ARM 93 217 6983 0 AM59361 B *** *** 19
15677158 ARM 93 217 5611 0 AM59191 B *** *** 19
15677159 CONTROL 93 127 581 0 AM43905 B *** *** 19
</TABLE>
<PAGE>
15
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15677159 CONTROL 93 127 581 0 AM43905 B *** *** 19
15677160 ARM 94 217 418 AM57747 B *** *** 19
15677666 PROP SH 93 35 0 AM59361 U *** *** 17
15680320 BRKT 94 217 11 AM57748 B *** *** 19
15692903 STAB 95 217 501 AM57747 B *** *** 20
15693301 ARM 94 217 29 AM75148 B *** *** 19
15693302 ARM 94 217 20 0 AM75148 B *** *** 19
15693303 ARM 93 217 127 AM57747 B *** *** 19
15693462 DRUM 94 217 104 AM57747 B *** *** 18
15693465 DRUM 94 217 153 AM99410 B *** *** 18
15693466 DRUM 94 217 258 AM57747 B *** *** 18
15693468 PKG 94 217 406 AM88413 T *** *** 18
15693470 SHF 93 217 5 0 AM90789 B *** *** 18
15693798 AXLE 00 0 0 AM96157 B *** *** 17
15697719 SHAFT 95 217 0 0 AM99325 C *** *** 20
</TABLE>
<PAGE>
16
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15697719 SHAFT 95 217 0 0 AM99325 C *** *** 20
15697720 SHAFT 95 217 0 0 AM99325 C *** *** 20
15697723 SHAFT 95 217 0 0 AM99325 C *** *** 20
15958644 DRUM 94 217 74 AM89637 T *** *** 18
15960224 DRUM 94 217 0 0 AM90445 B *** *** 18
15966269 SHF 94 217 0 AM69010 U *** *** 19
15972495 SHF 94 217 175 AM89688 B *** *** 19
15972496 SHF 94 217 91 AM89688 B *** *** 19
15979081 ARM 94 217 0 0 AM85758 B *** *** 19
15979083 ARM 94 217 0 0 AM85758 B *** *** 19
18014969 RR FLG 89 0 AM85723 T *** *** 31
18015839 DRUM AS 93 217 9 B *** *** 18
18018001 DRUM - 94 217 27 AM30588 B *** *** 18
18018346 DRUM 95 217 0 0 AM92607 B *** *** 31
18020612 DRUM 94 217 1218 0 AM95395 T *** *** 18
</TABLE>
<PAGE>
17
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
18020612 DRUM 94 217 1218 0 AM95395 T *** *** 18
22532382 STAB AS 93 217 82 0 AM59361 U *** *** 20
25604384 SHFT R 95 304 0 0 AM79943 B *** *** 20
25606832 SHAFT A 95 304 0 0 AM79943 B *** *** 20
25606833 SHAFT A 95 304 0 0 AM79943 B *** *** 20
26003426 DIFF W/ 87 217 37 1000 AM80723 T *** *** 17
26004931 REAR AX 91 217 0 B *** *** 17
26004932 REAR AX 91 217 0 B *** *** 17
26004933 REAR AX 91 217 0 B *** *** 17
26004934 REAR AX 91 217 0 B *** *** 17
26004935 REAR AX 91 217 0 B *** *** 17
2605741 PKG 95 217 735 AM08723 T *** *** 17
26006445 DIFF W/ 87 217 0 1000 U *** *** 17
2606449 PKG 87 217 27 AM08723 T *** *** 17
26006822 PKG 94 217 1692 AM80723 T *** *** 17
</TABLE>
<PAGE>
18
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26006822 PKG 94 217 1692 AM80723 T *** *** 17
26006824 PKG 94 217 1046 AM80809 T *** *** 17
26006907 T-10 FR 93 217 735 AM97429 B *** *** 17
26006940 AXLE AS 93 217 115 AM78970 B *** *** 17
26007126 ARM ASM 90 217 9 B *** *** 17
26007140 CARRIER 90 217 1 0 B *** *** 17
26007151 SHAFT 90 217 1 0 B *** *** 17
26007152 SHAFT 90 217 1 0 B *** *** 17
26008172 COVER K 95 217 1589 B *** *** 17
26009311 AXLE AS 91 217 0 U *** *** 17
26009314 AXLE AS 91 217 0 U *** *** 17
26009316 AXLE AS 91 217 0 U *** *** 17
36009577 PKG 95 217 54 0 AM80723 T *** *** 17
26009578 PKG 95 217 246 0 AM80723 T *** *** 17
26009712 HOUSING 89 217 118 0 B *** *** 17
</TABLE>
<PAGE>
19
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26009712 HOUSING 89 217 118 0 B *** *** 17
26009713 HSG ASM 89 217 345 B *** *** 17
26009714 HSG ASM 89 217 703 B *** *** 17
26009715 HOUSING 89 217 663 B *** *** 17
26009718 PKG 91 217 27 AM80723 T *** *** 17
26009719 PKG 94 217 32 AM80723 T *** *** 17
26009720 PKG 95 217 119 AM62412 B *** *** 17
26009721 PKG 95 217 94 AM80723 B *** *** 17
26009823 PKG 91 217 7 AM80723 T *** *** 17
26010414 PKG 91 217 2144 AM80723 T *** *** 17
26010415 PKG 91 217 1286 0 AM80723 T *** *** 17
26010417 DRUM 95 217 3767 AM80723 T *** *** 17
26010481 PKG 95 217 15511 AM87723 T *** *** 17
26010652 AXLE AS 91 217 0 U *** *** 17
26010746 PKG 95 217 50 AM80723 T *** *** 17
</TABLE>
<PAGE>
20
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26010746 PKG 95 217 50 AM80723 T *** *** 17
26010747 PKG 95 217 34 AM80723 T *** *** 17
26010964 REAR AX 92 217 1 U *** *** 17
26011161 PKG 95 217 183 AM80723 T *** *** 17
26011162 PKG 95 217 91 AM80723 T *** *** 17
26011279 PKG 91 217 14 0 AM80723 T *** *** 17
26011280 TUBE AS 91 217 74 0 AM80723 T *** *** 17
26011281 PKG 94 217 60 0 AM80723 T *** *** 17
26011282 PKG 91 217 37 0 AM80723 T *** *** 17
26011283 PKG 91 217 31 0 AM80723 T *** *** 17
26011284 PKG 94 217 2 0 AM80723 T *** *** 17
26011881 HSG. SE 91 217 19 B *** *** 17
26012631 RR AXLE 95 217 16 0 B *** *** 17
26012632 REAR AX 94 217 23 0 AM26402 U *** *** 17
26012638 PKG 95 217 217 AM80723 T *** *** 17
</TABLE>
<PAGE>
21
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26012638 PKG 95 217 217 AM80723 T *** *** 17
26012639 CARRIER 95 217 73 B *** *** 17
26012640 CARRIER 95 217 10 B *** *** 17
26013313 AXLE SH 94 217 4230 0 AM96605 U *** *** 17
26013835 FRT AXL 90 217 0 B *** *** 17
26014167 CAD LIM 90 217 0 5000 U *** *** 17
26014191 PKG 95 380 151 AM80723 T *** *** 17
26014224 AXLE SH 90 217 12 B *** *** 17
26014506 REAR AX 91 217 0 U *** *** 17
26014507 REAR AX 91 217 0 U *** *** 17
26014508 REAR AX 91 217 0 U *** *** 17
26014509 REAR AX 91 217 0 U *** *** 17
26014510 REAR AX 91 217 0 U *** *** 17
26014743 PKG 95 217 135 AM80723 T *** *** 17
26014744 PKG 95 217 120 AM80723 T *** *** 17
</TABLE>
<PAGE>
22
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26014744 PKG 95 217 120 AM80723 T *** *** 17
26015037 RING & 90 217 3839 B *** *** 17
26015059 RING & 92 217 353 0 AM26402 B *** *** 17
26015375 CARRIER 95 217 27 B *** *** 17
26016276 RR AXLE 90 217 549 B *** *** 17
26016284 PKG 94 383 3839 AM80723 T *** *** 17
26016320 GEAR SE 91 217 0 B *** *** 17
26016526 PKG 95 217 699 0 AM80723 T *** *** 17
26016527 PKG 95 130 1725 0 AM80723 T *** *** 17
26016528 PKG 95 217 1376 AM80723 T *** *** 17
26016541 AXLE AS 93 217 1 0 U *** *** 17
26016542 AXLE AS 93 217 0 0 U *** *** 17
26016543 AXLE AS 93 217 0 0 U *** *** 17
26016544 AXLE AS 93 217 0 0 U *** *** 17
26016545 AXLE AS 93 217 0 0 U *** *** 17
</TABLE>
<PAGE>
23
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26016545 AXLE AS 93 217 0 0 U *** *** 17
26016633 AXLE AS 91 217 0 U *** *** 17
26016804 PKG 95 217 108 AM80723 T *** *** 17
26016819 PKG 94 217 15 0 AM80723 T *** *** 17
26017243 DIFF. S 90 217 1924 B *** *** 17
26017484 PKG 95 217 2 AM80723 T *** *** 17
26017493 AXLE AS 93 217 73 0 U *** *** 17
26017494 AXLE AS 93 217 4 0 U *** *** 17
26017495 AXLE AS 95 217 805 0 AM99083 B *** *** 17
26017497 AXLE AS 95 217 8 0 U *** *** 17
26017498 AXLE AS 95 217 45 0 U *** *** 17
26017499 AXLE AS 95 217 9 0 U *** *** 17
26017597 AXLE AS 95 217 6 0 U *** *** 17
26017600 AXLE AS 94 217 0 0 U *** *** 17
26017603 AXLE AS 95 217 0 0 U *** *** 17
</TABLE>
<PAGE>
24
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26017603 AXLE AS 95 217 0 0 U *** *** 17
26017604 AXLE AS 94 217 0 0 U *** *** 17
26017605 AXLE AS 95 217 1 0 U *** *** 17
26017606 AXLE AS 95 217 3 0 U *** *** 17
26017607 AXLE AS 95 217 10 0 U *** *** 17
26017608 AXLE AS 95 217 11 0 U *** *** 17
26017947 DIFF. P 90 217 1924 B *** *** 17
26017972 AXLE AS 93 217 0 0 U *** *** 17
26017973 AXLE AS 93 217 0 0 U *** *** 17
26017974 AXLE AS 93 217 0 0 U *** *** 17
26017975 AXLE AS 93 217 0 0 U *** *** 17
26017989 REAR AX 94 217 3 0 AM26402 U *** *** 17
26018131 PKG 94 217 601 AM80723 T *** *** 17
26018277 RING & 91 217 214 0 B *** *** 17
26018279 RING & 94 217 1237 B *** *** 17
</TABLE>
<PAGE>
25
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26018279 RING & 94 217 1237 B *** *** 17
26018558 AXLE AS 95 217 1 0 U *** *** 17
26018561 AXLE AS 95 217 0 0 U *** *** 17
26018562 AXLE AS 94 217 0 0 U *** *** 17
26018564 AXLE AS 94 217 0 0 U *** *** 17
26018565 AXLE AS 94 217 0 0 U *** *** 17
26018567 AXLE AS 94 217 2 0 U *** *** 17
26018569 AXLE AS 94 217 0 0 U *** *** 17
26018643 AXLE AS 95 217 1 0 U *** *** 17
26018644 AXLE AS 95 217 5 0 U *** *** 17
26018645 AXLE AS 94 217 0 0 U *** *** 17
26018646 AXLE AS 95 217 0 0 U *** *** 17
26019418 DIFF. P 91 217 53322 0 B *** *** 17
26019419 DIFF. S 90 217 26204 0 B *** *** 17
26019851 DIFF. SI 90 217 25782 9605 AM43891 B *** *** 17
</TABLE>
<PAGE>
26
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26019851 DIFF SI 90 217 25782 9605 AM43891 B *** *** 17
26020039 RR AXLE 95 217 47 B *** *** 17
26020040 RR AXLE 95 217 41 B *** *** 17
26020087 CARRIER 95 217 48 B *** *** 17
26020213 REAR AX 91 217 1 B *** *** 17
26020214 REAR AX 91 217 0 B *** *** 17
26020215 REAR AX 91 217 0 B *** *** 17
26020216 REAR AX 91 217 0 B *** *** 17
26020344 AXLE AS 93 217 0 U *** *** 17
26021086 RR AXLE 91 217 104 0 B *** *** 17
26021111 DIFF. S 90 217 668 AM80723 T *** *** 17
26021372 AXLE AS 90 217 0 0 U *** *** 17
26021373 AXLE AS 90 217 0 0 U *** *** 17
26021374 AXLE AS 90 217 0 0 U *** *** 17
26021375 AXLE AS 90 217 0 0 U *** *** 17
</TABLE>
<PAGE>
27
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26021375 AXLE AS 90 217 0 0 U *** *** 17
26021376 AXLE AS 90 217 0 0 U *** *** 17
26021377 AXLE AS 90 217 0 0 U *** *** 17
26021380 AXLE AS 90 217 0 0 U *** *** 17
26021381 AXLE AS 90 217 0 0 U *** *** 17
26021576 RR AXLE 92 217 0 U *** *** 17
26021793 AXL ASM 95 217 2 0 U *** *** 17
26021794 AXLE AS 95 217 11 0 U *** *** 17
26021795 AXLE AS 95 217 5 0 U *** *** 17
26021796 AXLE AS 95 217 0 0 U *** *** 17
26021797 AXLE AS 95 217 0 0 U *** *** 17
26021798 AXLE AS 95 217 2 0 U *** *** 17
26021799 AXLE AS 95 217 0 0 U *** *** 17
26021800 AXLE AS 95 217 0 0 U *** *** 17
26021801 AXLE AS 95 217 1 0 U *** *** 17
*** ***
</TABLE>
<PAGE>
28
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26021801 AXLE AS 95 217 1 0 U *** *** 17
26021802 AXLE AS 95 217 3 0 U *** *** 17
26021803 AXLE AS 95 217 1 0 U *** *** 17
26021804 AXLE AS 95 217 0 0 U *** *** 17
26021805 AXLE AS 95 217 0 0 U *** *** 17
26021806 AXLE AS 95 217 7 0 U *** *** 17
26021807 AXLE AS 95 217 10 0 U *** *** 17
26021808 AXLE AS 95 217 0 0 U *** *** 17
26021810 AXL ASM 95 217 1 0 U *** *** 17
26021811 AXLE AS 95 217 4 0 U *** *** 17
26021812 AXLE AS 95 217 0 0 U *** *** 17
26021813 AXLE AS 95 217 0 0 U *** *** 17
26021814 AXLE AS 95 217 4 0 U *** *** 17
26021815 AXLE AS 95 217 3 0 U *** *** 17
26021816 AXLE AS 95 217 1 0 U *** *** 17
</TABLE>
<PAGE>
29
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26021816 AXLE AS 95 217 1 0 U *** *** 17
26021817 AXLE AS 95 217 5 0 U *** *** 17
26021818 AXLE AS 95 217 7 0 U *** *** 17
26021819 AXLE AS 95 217 5 0 U *** *** 17
26021820 AXLE AS 95 217 2 0 U *** *** 17
26021821 AXLE AS 95 217 6 0 U *** *** 17
26021823 AXLE AS 93 217 1 0 U *** *** 17
26021824 AXLE AS 93 217 1 0 U *** *** 17
26021825 AXLE AS 93 217 1 0 U *** *** 17
26021826 AXLE AS 92 217 0 0 U *** *** 17
26021828 AXLE AS 93 217 0 0 U *** *** 17
26021917 AXLE AS 94 217 0 0 U *** *** 17
26021918 AXLE AS 95 217 0 0 U *** *** 17
26021919 AXLE AS 95 217 0 0 U *** *** 17
26021920 AXLE AS 94 217 0 0 U *** *** 17
</TABLE>
<PAGE>
30
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26021920 AXLE AS 94 217 0 0 U *** *** 17
26021921 AXLE AS 94 217 0 0 U *** *** 17
26021923 AXLE AS 94 217 0 0 U *** *** 17
26021924 AXLE AS 94 217 1 0 U *** *** 17
26021925 AXLE AS 94 217 0 0 U *** *** 17
26021926 AXLE AS 94 217 0 0 U *** *** 17
26021927 AXLE AS 93 217 0 0 U *** *** 17
26021929 AXLE AS 94 217 11 0 U *** *** 17
26021930 AXLE AS 94 217 3 0 U *** *** 17
26021931 AXLE AS 94 217 4 0 U *** *** 17
26021932 AXLE AS 93 217 0 0 U *** *** 17
26021934 AXLE AS 93 217 0 0 U *** *** 17
26021935 AXLE AS 92 217 1 0 U *** *** 17
26021936 AXLE AS 93 217 0 0 U *** *** 17
26021937 AXLE AS 92 217 0 0 U *** *** 17
</TABLE>
<PAGE>
31
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26021937 AXLE AS 92 217 0 0 U *** *** 17
26021938 AXLE AS 93 217 0 0 U *** *** 17
26021939 AXLE AS 93 217 0 0 U *** *** 17
26021941 AXLE AS 93 217 0 0 U *** *** 17
26021943 AXLE AS 93 217 0 0 U *** *** 17
26021945 AXLE AS 93 217 0 0 U *** *** 17
26021946 AXLE AS 93 217 0 0 U *** *** 17
26021948 AXLE AS 93 217 0 0 U *** *** 17
26021951 AXLE AS 93 217 0 0 U *** *** 17
26021989 AXLE AS 93 217 0 0 U *** *** 17
26021990 AXLE AS 93 217 0 0 U *** *** 17
26021991 AXLE AS 93 217 0 0 U *** *** 17
26021992 AXLE AS 93 217 0 0 U *** *** 17
26021996 AXLE 94 416 0 0 AM40303 U *** *** 31
26022086 AXLE AS 93 217 0 0 U *** *** 17
</TABLE>
<PAGE>
32
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26022086 AXLE AS 93 217 0 U *** *** 17
26022348 AXLE AS 95 217 1 0 U *** *** 17
26022410 GEAR D1 94 217 668 U *** *** 17
26022777 DIFF G 90 217 668 0 B *** *** 17
26022779 FRT. AX 94 217 169 0 B *** *** 17
26022781 FRT. AX 93 217 87 0 B *** *** 17
26022799 AXLE AS 93 217 2 0 U *** *** 17
26022800 AXLE AS 93 217 0 0 U *** *** 17
26022801 AXLE AS 93 217 0 0 U *** *** 17
26022802 AXLE AS 93 217 0 0 U *** *** 17
26022803 AXLE AS 93 217 0 0 U *** *** 17
26022804 AXLE AS 93 217 0 0 U *** *** 17
26022805 AXLE AS 93 217 0 0 U *** *** 17
26022806 AXLE AS 93 217 0 0 U *** *** 17
26022807 AXLE AS 93 217 0 0 U *** *** 17
</TABLE>
<PAGE>
33
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26022807 AXLE AS 93 217 0 0 U *** *** 17
26023302 RR AXLE 95 217 4 B *** *** 17
26023349 CARRIER 93 217 6 B *** *** 17
26023392 CARRIER 95 217 15 0 B *** *** 17
26023763 HOUSING 91 217 98 0 C *** *** 17
26023923 AXLE AS 92 217 0 0 U *** *** 17
26023924 AXKE AS 92 217 0 0 U *** *** 17
26023975 AXLE AS 92 217 0 0 U *** *** 17
26023976 AXLE AS 92 217 0 0 U *** *** 17
26024177 AXLE AS 93 217 1 0 AM20160 U *** *** 17
26024178 AXLE AS 93 217 10 0 AM20160 U *** *** 17
26024546 P-DISK 92 217 0 0 U *** *** 17
26024547 P-DISK 92 217 0 0 U *** *** 17
26024549 P-DISK 92 217 0 0 U *** *** 17
26024550 P-DISK 92 217 0 0 U *** *** 17
</TABLE>
<PAGE>
34
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26024550 P-DISK 92 217 0 0 U/B *** *** 17
26025125 HOUSING 92 217 129 AM24544 U *** *** 17
26025126 HOUSING 92 217 98 AM24544 B *** *** 17
26025128 HOUSING 92 217 44 AM24544 B *** *** 17
26025141 AXLE AS 94 217 3 0 AM30195 B *** *** 17
26025142 AXLE AS 95 217 2 0 AM30195 B *** *** 17
26025143 AXLE AS 95 217 8 0 AM30195 B *** *** 17
26025144 AXLE AS 94 217 0 0 AM30195 B *** *** 17
26025145 AXLE AS 94 217 0 0 AM30195 B *** *** 17
26025146 AXLE AS 95 217 1 0 AM30195 B *** *** 17
26025147 AXLE AS 95 217 0 0 AM30195 B *** *** 17
26025148 AXLE AS 94 217 0 0 AM30195 B *** *** 17
26025409 AXLE AS 93 217 3 U *** *** 17
26025520 HOUSING 93 217 4 0 AM80723 T *** *** 17
26026031 RR AXLE 95 217 0 0 B *** *** 17
</TABLE>
<PAGE>
35
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26026031 RR AXLE 95 217 18 0 B *** *** 17
26026032 RR AXLE 95 217 59 0 B *** *** 17
26026420 AXLE AS 93 217 0 0 U *** *** 17
26026423 AXLE AS 93 217 0 0 U *** *** 17
26026428 PKG 95 217 712 0 AM80723 T *** *** 17
26026470 AXLE AS 93 217 6 0 U *** *** 17
26026471 AXLE AS 94 217 10 0 U *** *** 17
26026472 AXLE AS 93 217 8 0 U *** *** 17
26026473 REAR AX 92 217 1 U *** *** 17
26026474 REAR AX 92 217 3 U *** *** 17
26027669 CARRIER 94 217 8 0 AM35668 U *** *** 17
26027918 AXLE AS 92 217 0 0 AM27068 U *** *** 17
26028167 AXLE AS 93 217 2 0 AM20160 U *** *** 17
26028328 AXLE AS 92 217 0 U *** *** 17
26028329 AXLE AS 92 217 0 U *** *** 17
</TABLE>
<PAGE>
36
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
26028329 AXLE AS 92 217 0 U *** *** 17
26028330 AXLE AS 92 217 0 U *** *** 17
26028331 AXLE AS 92 217 1 U *** *** 17
26028333 AXLE AS 95 217 4 U *** *** 17
26028334 AXLE AS 95 217 3 U *** *** 17
26028335 AXLE AS 95 217 5 U *** *** 17
26028336 AXLE AS 95 217 4 U *** *** 17
26028337 AXLE AS 95 217 5 U *** *** 17
26028338 AXLE AS 95 217 0 U *** *** 17
26028339 AXLE AS 95 217 15 U *** *** 17
26028340 AXLE AS 95 217 11 U *** *** 17
26028341 AXLE AS 95 217 1 U *** *** 17
26028342 AXLE AS 95 217 4 U *** *** 17
26028343 AXLE AS 95 217 4 U *** *** 17
26028344 AXLE AS 95 217 0 U *** *** 17
</TABLE>
<PAGE>
37
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26028344 AXLE AS 95 217 0 U *** *** 17
26028357 AXLE AS 92 217 0 U *** *** 17
26028359 AXLE AS 92 217 1 U *** *** 17
26028361 AXLE AS 92 217 3 U *** *** 17
26028503 SHAFT 93 217 25 0 AM61268 B *** *** 17
26028983 RR AXLE 93 217 0 U *** *** 17
26028984 RR AXLE 93 217 0 U *** *** 17
26028985 RR AXLE 93 217 0 U *** *** 17
26029279 SHIM 93 216 0 AM95712 U *** *** 17
26029280 SHOM 93 216 0 AM95712 U *** *** 17
26029282 SHIM 93 216 0 AM95712 U *** *** 17
26029283 SHIM 93 216 0 AM95712 U *** *** 17
26029324 AXLE 94 217 0 AM74859 U *** *** 17
26029468 GEAR SE 92 217 3185 AM18253 B *** *** 17
26029862 AXLE 94 217 0 0 AM62174 B *** *** 17
</TABLE>
<PAGE>
38
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26029862 AXLE 94 217 0 0 AM62174 B *** *** 31
26029871 AXLE 94 217 0 0 AM62174 B *** *** 31
26029881 AXLE 94 217 0 0 AM62174 B *** *** 31
26029884 AXLE 94 217 0 0 AM62174 B *** *** 31
26029900 AXLE 94 499 0 AM74859 U *** *** 31
26029901 AXLE 94 499 0 AM74859 U *** *** 31
26029902 AXLE 94 499 0 AM74859 U *** *** 31
26029903 AXLE 94 499 0 AM74859 U *** *** 31
26029904 AXLE 94 499 0 AM74859 U *** *** 31
26029905 AXLE 94 499 0 AM74859 U *** *** 31
26029954 AXLE 95 217 9 0 AM62174 B *** *** 17
26029956 AXLE 95 217 162 AM74859 U *** *** 17
26029997 ROD 93 217 300 0 AM58415 B *** *** 19
26030092 AXLE AS 92 217 0 U *** *** 17
26030094 AXLE AS 92 217 0 U *** *** 17
</TABLE>
<PAGE>
39
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26030094 AXLE AS 92 217 0 U *** *** 17
26030653 GEAR SE 92 217 0 AM24544 B *** *** 17
26030655 GEAR SE 92 217 0 AM24544 B *** *** 17
26030714 SHAFT 95 389 50 AM61968 B *** *** 17
26030734 SHF 94 217 45 0 AM91506 B *** *** 17
26030735 AXLE 94 217 22 0 AM59190 U *** *** 17
26030736 AXLE 94 217 19 0 AM59190 U *** *** 17
26030738 REAR AX 94 217 13 0 AM59190 U *** *** 17
26030741 AXLE 94 217 14 0 AM59190 U *** *** 17
26030774 SHIM 93 216 0 AM95712 U *** *** 17
26030775 SHIM 93 216 0 AM95712 U *** *** 17
26030776 SHIM 93 216 0 AM95712 U *** *** 17
26030777 SHIM 93 216 0 AM95712 U *** *** 17
26031316 AXLE 94 217 0 AM74859 U *** *** 17
26031318 AXLE 94 217 0 AM74859 U *** *** 17
</TABLE>
<PAGE>
40
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26031318 AXLE 94 217 0 AM74859 U *** *** 17
26031325 AXLE 94 220 0 AM74859 U *** *** 31
26031329 AXLE 94 217 1 AM74859 U *** *** 17
26031551 AXLE 00 0 0 AM32478 U *** *** 31
26031698 REAR AX 93 217 0 0 AM21745 U *** *** 17
26031842 AXLE 95 217 56 0 AM32493 U *** *** 17
26031843 AXLE 95 217 102 0 AM32493 U *** *** 17
26031844 AXLE 95 217 24 0 AM34061 U *** *** 17
26031845 AXLE 94 217 3 0 AM34061 U *** *** 17
26031846 AXLE 95 217 16 0 AM34061 U *** *** 17
26031847 AXLE 95 217 11 0 AM34061 U *** *** 17
26031848 AXLE 95 217 2 0 AM34061 U *** *** 17
26031849 AXLES 95 217 5 0 AM32478 U *** *** 17
26031850 AXLE 93 217 3 0 AM32478 U *** *** 17
26031854 AXLE 93 119 0 0 AM32478 U *** *** 17
</TABLE>
<PAGE>
41
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26031854 AXLE 93 119 0 0 AM32478 U *** *** 17
26031862 AXLE 93 217 1 0 AM32493 U *** *** 17
26031863 AXLE 94 217 5 0 AM32493 U *** *** 17
26031864 AXLE 94 217 9 0 AM32493 U *** *** 17
26031865 AXLE 94 217 7 0 AM32493 U *** *** 17
26031866 AXLE 94 217 14 0 AM32493 U *** *** 17
26031920 AXLE 94 217 4 AM74859 U *** *** 17
26032115 AXLE AS 93 217 0 0 AM20160 U *** *** 17
26032116 AXLE AS 93 217 7 0 AM20160 U *** *** 17
26032426 AXLE 94 217 0 AM74859 U *** *** 31
26032435 AXLE 95 217 0 AM74859 U *** *** 17
26032437 AXLE AS 94 0 0 AM29214 U *** *** 17
26032438 AXLE AS 95 217 13 0 AM29214 U *** *** 17
26032439 AXLE AS 94 0 0 AM29214 U *** *** 17
26032440 AXLE AS 95 217 0 0 AM29214 U *** *** 17
</TABLE>
<PAGE>
42
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26032440 AXLE AS 95 217 0 0 AM29214 U *** *** 17
26032441 AXLE AS 95 217 5 0 AM29214 U *** *** 17
26032442 AXLE AS 94 0 0 AM29214 U *** *** 17
26032853 AXLE AS 92 217 0 AM21069 U *** *** 17
26032854 AXLE AS 93 217 6 AM21069 U *** *** 17
26032856 AXLE AS 93 217 10 AM21069 U *** *** 17
26032857 AXLE AS 92 217 1 AM21069 U *** *** 17
26032907 SHAFT 95 217 22 0 AM75148 B *** *** 20
26032939 AXLE 93 217 3 0 AM32493 U *** *** 17
26032940 AXLE 93 217 5 0 AM32493 U *** *** 17
26033529 AXLE AS 93 217 0 AM28618 B *** *** 17
26034165 REAR AX 95 217 2 0 AM59190 U *** *** 17
26034170 AXLE 95 217 5 0 AM59190 U *** *** 17
26034172 AXLE 95 217 2 0 AM59190 U *** *** 17
26034173 AXLE 95 217 0 AM74859 U *** *** 31
</TABLE>
<PAGE>
43
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26034173 AXLE 95 217 0 AM74859 U *** *** 31
26034174 AXLE 95 217 0 AM74859 U *** *** 17
26034175 AXLE 95 217 0 AM74859 U *** *** 31
26034176 AXLE 95 217 0 AM74859 U *** *** 31
26034177 AXLE 95 217 3 0 AM59190 U *** *** 17
26034178 AXLE 95 217 1 AM74859 U *** *** 17
26034179 AXLE 95 217 0 AM74859 U *** *** 31
26034180 AXLE 95 217 0 AM74859 U *** *** 31
26034181 AXLE 95 217 0 AM74859 U *** *** 31
26034299 SERV KI 95 216 4 0 AM71851 U *** *** 17
26034385 AXLE 92 217 3 0 AM59361 U *** *** 17
26034387 AXLE 92 217 2 0 AM59361 U *** *** 17
26034788 GEAR 94 217 0 AM80645 B *** *** 17
26034789 GEAR 94 217 0 AM80645 B *** *** 17
26035017 AXLE 95 217 19 0 AM40303 U *** *** 17
</TABLE>
<PAGE>
44
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26035017 AXLE 95 217 19 0 AM40303 U *** *** 17
26035018 AXLE 94 217 0 0 AM40303 U *** *** 17
26035019 AXLE 93 217 0 0 AM40303 U *** *** 17
26035020 AXLE 93 217 0 0 AM40303 U *** *** 17
26035021 AXLE 94 217 0 0 AM40303 U *** *** 17
26035246 AXLE 94 217 10 0 AM59190 U *** *** 17
26035247 AXLE 94 217 2 0 AM59190 U *** *** 17
26035248 AXLE 94 217 4 AM74859 U *** *** 17
26035258 CARRIER 95 217 1 0 AM97601 T *** *** 17
26036130 AXLE 93 217 10 0 AM40693 U *** *** 17
26036553 AXLE 94 217 352 0 AM99820 B *** *** 17
26036554 AXLE 94 217 425 0 AM77868 B *** *** 17
26036556 AXLE 94 217 26 0 AM47521 U *** *** 17
26036557 AXLE 94 217 11 0 AM59190 U *** *** 17
26036558 AXLE 94 217 99 AM51575 U *** *** 17
</TABLE>
<PAGE>
45
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26036558 AXLE 94 217 99 AM51575 U *** *** 17
26036559 AXLE 94 217 144 0 AM77868 B *** *** 17
26036560 AXLE 94 217 15 0 AM47521 U *** *** 17
26036748 AXLE 93 217 33 0 AM46915 B *** *** 17
26036749 AXLE 93 217 23 0 AM46915 B *** *** 17
26036882 AXLE 95 217 3 0 AM56741 U *** *** 17
26036883 AXLE 95 217 10 0 AM56741 U *** *** 17
26036884 AXLE 95 217 0 0 AM56741 U *** *** 31
26036885 AXLE 95 217 3 0 AM56741 U *** *** 17
26036886 AXLE 95 217 8 0 AM56741 U *** *** 17
26036887 AXLE 95 217 1 0 AM56741 U *** *** 17
26036888 AXLE 95 217 5 AM74859 U *** *** 17
26036889 AXLE 95 217 4 AM74859 U *** *** 17
26036890 AXLE 95 217 0 AM74859 U *** *** 17
26036891 AXLE 95 217 1 0 AM59190 U *** *** 17
</TABLE>
<PAGE>
46
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26036891 AXLE 95 217 1 0 AM59190 U *** *** 17
26036892 AXLE 95 217 0 AM74859 U *** *** 31
26036895 AXLE 95 217 0 0 AM56741 U *** *** 17
26036898 AXLE 95 217 0 0 AM56741 U *** *** 31
26036899 AXLE 95 217 0 0 AM56741 U *** *** 31
26036900 AXLE 95 217 1 0 AM56741 U *** *** 17
26036901 AXLE 95 217 16 0 AM56741 U *** *** 17
26036902 AXLE 95 217 1 0 AM56741 U *** *** 17
26036903 AXLE 95 217 1 0 AM56741 U *** *** 17
26036904 AXLE 95 217 2 0 AM56741 U *** *** 17
26036905 AXLE 95 217 0 0 AM56741 U *** *** 17
26036906 AXLE 95 217 1 0 AM56741 U *** *** 17
26036907 AXLE 95 217 1 0 AM56741 U *** *** 17
26036908 AXLW 95 217 0 0 AM56741 U *** *** 17
26036909 AXLE 95 217 0 0 AM56741 U *** *** 17
</TABLE>
<PAGE>
47
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26036909 AXLE 95 217 0 0 AM56741 U *** *** 17
26036910 AXLE 95 217 3 0 AM56741 U *** *** 17
26036911 AXLE 95 217 0 0 AM56741 U *** *** 17
26037619 AXLE 94 217 0 AM74859 U *** *** 17
26037620 AXLE 94 217 1 AM74859 U *** *** 17
26037712 SHF 94 217 3952 0 AM94385 B *** *** 17
26037720 SHF 94 217 11157 0 AM94385 B *** *** 17
26037724 PIN 92 217 1 0 AM96157 B *** *** 17
26037728 SHF 94 217 2036 0 AM91506 B *** *** 17
26037732 PIN 93 217 10 0 AM96157 B *** *** 17
26037841 SHF 94 217 0 0 AM92013 B *** *** 17
26038028 AXLE 94 217 3 0 AM59190 U *** *** 17
26038470 FRT AXL 93 217 0 AM60731 B *** *** 31
26038498 AXLE 93 217 0 AM74859 U *** *** 31
26038499 AXLE 93 217 0 AM74859 U *** *** 17
</TABLE>
<PAGE>
48
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26038499 AXLE 93 217 0 AM74859 U *** *** 17
26038500 AXLE 93 217 0 AM74859 U *** *** 31
26038501 AXLE 93 217 0 AM74859 U *** *** 31
26038502 AXLE 93 217 0 AM74859 U *** *** 31
26038503 AXLE 93 217 0 AM74859 U *** *** 17
26038504 AXLE 93 217 0 AM74859 U *** *** 31
26038505 AXLE 93 217 1 AM74859 U *** *** 17
26038506 AXLE 93 217 0 AM74859 U *** *** 31
26038507 AXLE 93 217 0 AM74859 U *** *** 31
26038508 AXLE 93 217 0 AM74859 U *** *** 31
26038509 AXLE 93 217 0 AM74859 U *** *** 17
26038607 AXLE 93 217 0 AM74859 U *** *** 31
26038609 AXLE 93 217 0 AM74859 U *** *** 31
26038849 SEV KIT 94 384 1 0 AM90789 U *** *** 17
26038851 HOUSING 94 119 0 0 AM78982 U *** *** 31
</TABLE>
<PAGE>
49
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26038851 HOUSING 94 119 0 0 AM78982 U *** *** 31
26039583 SHF 94 384 0 0 AM71851 B *** *** 19
26039823 AXLE 94 217 0 AM76804 U *** *** 17
26039824 AXLE 94 217 0 AM76804 U *** *** 17
26039825 AXLE 94 217 0 0 AM76804 U *** *** 17
26040097 AXLE 93 217 13 AM75148 U *** *** 17
26040620 AXLE 95 217 0 AM74859 U *** *** 17
26040683 AXLE 93 217 0 0 AM74859 U *** *** 31
26040743 AXLE 95 217 0 AM96157 B *** *** 17
26041286 AXLE 93 217 0 AM74859 U *** *** 17
26041287 AXLE 95 217 13 AM74859 U *** *** 17
26041323 AXLE 93 217 0 0 AM76643 U *** *** 17
26041324 AXLE 93 217 0 0 AM76643 U *** *** 31
26041327 AXLE 93 217 2 0 AM76643 U *** *** 17
26041329 AXLE 93 217 0 0 AM76643 U *** *** 31
</TABLE>
<PAGE>
50
PURCHASING PARTS ON CONTRACT
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26041329 AXLE 93 217 0 0 AM76643 U *** *** 31
26041583 AXLE 94 217 0 0 AM77115 U *** *** 17
26041584 AXLE 94 217 0 0 AM77115 U *** *** 17
26042093 SHF 94 217 0 0 AM92607 B *** *** 17
26042095 SHF 94 217 0 0 AM92607 B *** *** 17
26042099 HOUSING 95 217 0 0 AM96096 U *** *** 17
</TABLE>
<PAGE>
51
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
00351596 SHAFT 82 217 105 2242 AM31235 U *** *** 20
00356534 SHAFT 81 217 154 2116 AM31235 B *** *** 20
00360722 SHF 87 217 4 0 AM73865 B *** *** 20
00370277 SHAFT 95 217 1413 AM18260 C *** *** 20
00378472 SHAFT 82 217 21 1256 AM31235 C *** *** 20
00394926 SHAFT 72 217 959 2116 AM31235 U *** *** 20
00457923 SHAFT 95 217 258 B *** *** 20
00459213 SHAFT 88 217 69 1844 AM31235 B *** *** 20
00459215 SHAFT 87 217 24 1844 AM31235 B *** *** 20
00472116 SHAFT 88 217 158 2116 AM31235 B *** *** 20
00481471 SHAFT R 81 217 66 1739 AM31235 B *** *** 20
03963571 CAP-CON 99 210 0 B *** *** 01
03983084 SHAFT R 81 217 340 1571 AM31235 B *** *** 20
10005795 SHAFT 87 217 47 2116 AM31235 B *** *** 20
10009317 SHAFT 87 217 118 1839 AM31235 B *** *** 20
</TABLE>
<PAGE>
52
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10009317 SHAFT 87 217 118 1839 AM31235 B *** *** 20
10029113 SHAFT 88 217 665 1839 AM31235 B *** *** 20
12536362 STAB BA 94 384 0 0 AM72344 B *** *** 20
14019268 SHAFT 86 217 41 1844 AM31235 B *** *** 20
14047916 SHAFT 92 217 188 B *** *** 20
14047917 SHAFT 85 217 15 1844 AM31235 B *** *** 20
14056841 SHAFT 95 217 266 C *** *** 20
14056842 SHAFT 95 217 244 B *** *** 20
14060132 BAR SHA 84 217 36 2032 AM31235 B *** *** 20
14076196 SHAFT 85 217 5 2116 AM31235 B *** *** 20
14076604 SHAFT 95 217 334 B *** *** 20
14076605 SHAFT 94 217 144 B *** *** 20
14076606 SHAFT 88 217 0 B *** *** 20
14076607 SHAFT-F 95 217 65 B *** *** 20
14076608 SHAFT 93 217 46 B *** *** 20
</TABLE>
<PAGE>
53
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14076608 SHAFT 93 217 46 B *** *** 20
14076612 SHAFT 93 217 54 B *** *** 20
14076613 SHAFT 93 217 88 B *** *** 20
14076614 SHAFT 93 217 167 B *** *** 20
14076615 SHAFT-F 88 217 1 1844 AM31235 B *** *** 20
14081407 SHAFT 95 217 62 C *** *** 20
14081408 SHAFT A 95 217 210 B *** *** 20
14081409 SHAFT 95 217 86 B *** *** 20
14084067 SHAFT 87 217 10 2116 AM31235 U *** *** 20
14087728 SHAFT-S 95 217 122 C *** *** 20
14089551 SHAFT 95 217 1380 B *** *** 20
14089552 SHAFT 95 217 188 B *** *** 20
14089553 SHAFT 91 217 228 B *** *** 20
14089584 SHAFT 95 217 172 B *** *** 20
14089755 SHAFT 88 217 3 2000 AM31235 C *** *** 20
</TABLE>
<PAGE>
54
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14089755 SHAFT 88 217 3 2000 AM31235 C *** *** 20
14093240 SHAFT 87 217 151 1448 AM31235 C *** *** 20
14093241 SHAFT 87 217 153 1739 AM31235 C *** *** 20
14101234 SHAFT-F 95 217 192 C *** *** 20
14106795 SHAFT 88 217 504 2000 AM31235 C *** *** 20
15548449 SHAFT 94 217 1165 C *** *** 20
15604916 SHAFT-F 95 217 21 C *** *** 20
15612681 SHAFT-F 95 217 37 B *** *** 20
15622388 DRUM 94 0 AM43295 B *** *** 18
15640308 SHAFT-R 95 217 64 B *** *** 20
15650905 RR. STA 93 217 561 B *** *** 20
15677613 FRT STA 95 217 355 AM57743 U *** *** 20
15677614 STAB BA 95 217 751 0 AM59364 U *** *** 20
15677615 SHAFT 94 217 53 0 AM39139 B *** *** 20
15677616 SHAFT 94 217 222 0 AM39139 B *** *** 20
</TABLE>
<PAGE>
55
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15677616 SHAFT 94 217 222 0 AM39139 B *** *** 20
15682645 SHAFT 95 217 67 AM60170 B *** *** 20
15684329 SHAFT- 94 217 651 0 AM21786 C *** *** 20
15687308 SHAFT- 95 217 520 0 AM19080 B *** *** 20
15693304 ARM 94 217 193 0 AM72344 B *** *** 19
15961006 SHF 94 217 26 AM77263 U *** *** 20
22536399 SHAFT- 92 217 33 B *** *** 20
22536401 SHAFT R 94 217 73 B *** *** 20
22536402 SHAFT 94 217 70 B *** *** 20
22536984 FRT. ST 93 217 144 B *** *** 20
22545233 FRT STA 93 217 16 B *** *** 20
22565626 SHAFT-R 94 217 9 B *** *** 20
22570016 SHF 95 217 0 AM77263 U *** *** 20
22570022 SHF 95 217 0 AM77263 U *** *** 20
22572336 AXLE 95 217 0 AM77263 U *** *** 20
</TABLE>
<PAGE>
56
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
22572336 AXLE 95 217 0 AM77263 U *** *** 20
22573131 SHAFT-F 91 217 32 C *** *** 20
22573435 SHAFT-F 93 217 65 C *** *** 20
22581617 SHAFT 95 217 9 AM77263 U *** *** 20
22584364 SHF 95 217 1 AM77263 U *** *** 20
25524815 SHAFT S 95 217 180 C *** *** 20
25533626 SHAFT 90 217 3 B *** *** 20
25557516 REINFOR 93 217 220 B *** *** 23
25558115 SHAFT-R 93 217 46 B *** *** 20
25558116 SHAFT-R 95 217 21 B *** *** 20
25558117 SHAFT-R 95 217 15 B *** *** 20
25558135 SHAFT-R 95 217 82 B *** *** 20
25559835 SHAFT-R 95 217 22 0 AM21756 B *** *** 20
25559836 SHAFT-R 95 217 54 0 AM21756 B *** *** 20
26009237 STAB BA 90 217 8 AM39097 U *** *** 20
</TABLE>
<PAGE>
57
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26009237 STAB BA 90 217 8 AM39097 U *** *** 20
26024362 FRT. ST 95 217 40 B *** *** 20
26025316 STAB BA 95 217 31 AM41051 B *** *** 20
26032841 AXLE SH 93 217 35 AM28578 B *** *** 17
26032842 AXLE SH 94 217 58 AM28758 B *** *** 17
26034162 AXLE 95 217 0 AM55546 U *** *** 31
26034167 AXLE 95 217 0 AM55546 U *** *** 17
26034876 AXLE 92 217 0 AM55546 U *** *** 31
26034877 AXLE 92 217 0 AM55546 U *** *** 31
26034878 AXLE 92 217 0 AM55546 U *** *** 31
26034879 AXLE 92 217 0 AM55546 U *** *** 31
26034880 AXLE 92 217 0 AM55546 U *** *** 31
26034881 AXLE 92 217 0 AM55546 U *** *** 31
26034882 AXLE 92 217 0 AM55546 U *** *** 31
26034883 AXLE 92 217 0 AM55546 U *** *** 31
</TABLE>
<PAGE>
58
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26034883 AXLE 92 217 0 AM55546 U *** *** 31
26034884 AXLE 92 217 0 AM55546 U *** *** 31
26034885 AXLE 92 217 0 AM55546 U *** *** 31
26034886 AXLE 92 217 0 AM55546 U *** *** 31
26034887 AXLE 92 217 0 AM55546 U *** *** 31
26034889 AXLE 92 217 0 AM55546 U *** *** 31
26034890 AXLE 92 217 0 AM55546 U *** *** 31
26034892 AXLE 92 217 0 AM55546 U *** *** 31
26035245 AXLE 94 217 12 AM55546 U *** *** 17
26038608 AXLE 93 217 0 AM55546 U *** *** 31
26038610 AXLE 93 217 0 AM55546 U *** *** 31
</TABLE>
<PAGE>
59
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
08436 GM28911
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0375889 LEVER 95 119 805 0 AM85998 B *** *** 18
00357890 ROD 95 119 830 0 AM86928 B *** *** 18
00475083 KNUCKLE 92 119 407 B *** *** 19
00475084 KNUCKLE 92 119 494 B *** *** 19
00554994 GEAR SE 88 119 257 0 AM78928 B *** *** 17
00557975 GEAR SE 87 119 7 B *** *** 17
03866669 LEVER 95 119 639 0 AM86000 B *** *** 18
06274216 HUB & W 95 119 3838 B *** *** 18
06274259 KNUCKLE 95 119 767 0 B *** *** 19
06274260 STEERIN 95 119 897 0 B *** *** 19
07827670 FLANGE 95 119 2570 B *** *** 17
08647017 FINAL D 88 119 0 B *** *** 02
08643990 SHAFT-F 95 100 0 0 AM88583 B *** *** 17
08677214 GEAR-PA 95 119 0 0 AM96152 B *** *** 31
08678343 CASE AS 95 100 0 0 AM88814 B *** *** 31
</TABLE>
<PAGE>
60
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
08678343 CASE AS 95 100 0 0 AM88814 B *** *** 31
08683560 SHAFT,O 95 119 8 0 AM89375 B *** *** 17
08683604 GEAR-FR 95 100 0 0 AM88583 B *** *** 31
14008640 HUB 90 119 6609 B *** *** 18
14012595 KNUCKLE 90 119 379 B *** *** 19
14012596 KNUCKLE 90 119 567 B *** *** 19
14018393 KNUCKLE 87 119 99 B *** *** 19
14018394 KNUCKLE 87 119 73 B *** *** 19
14030355 SHAFT-A 93 119 2379 B *** *** 17
14054925 KNUCKLE 94 119 29 B *** *** 19
14054926 KNUCKLE 94 119 14 B *** *** 19
14094932 ROTOR A 95 119 69743 0 AM78893 B *** *** 18
15651809 KNUCKLE 94 119 52 0 AM45316 B *** *** 19
15651810 KNUCKLE 94 119 48 0 AM45316 B *** *** 19
18013455 CALIPER 88 119 0 B *** *** 18
</TABLE>
<PAGE>
61
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
18013455 CALIPER 88 119 0 B *** *** 18
18013456 CALIPER 88 119 0 B *** *** 18
18013526 BACKING 89 119 5909 B *** *** 18
18013527 BACKING 90 119 7375 B *** *** 18
18014808 DRUM AS 93 119 545 AM26089 B *** *** 18
18015381 CALIPER 91 119 561 0 B *** *** 18
18015382 CALIPER 91 119 336 0 B *** *** 18
18015383 CALIPER 95 119 759 0 AM93355 B *** *** 18
18015384 CALIPER 95 119 766 0 AM93355 B *** *** 18
18015385 CALIPER 94 119 942 0 AM93355 B *** *** 18
18015386 CALIPER 94 119 913 0 AM93355 B *** *** 18
18015427 CALIPER 95 119 1651 0 AM68337 B *** *** 18
18015428 CALIPER 95 119 1777 0 AM68335 B *** *** 18
18016023 KNUCKLE 95 119 2251 0 B *** *** 19
18016024 KNUCKLE 95 119 2538 0 B *** *** 19
</TABLE>
<PAGE>
62
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
18016024 KNUCKLE 95 119 2538 0 B *** *** 19
18016031 HUB & D 90 119 359 0 AM37197 B *** *** 18
18016226 HUB & D 93 119 15581 B *** *** 18
18017179 BRAKE D 95 119 4894 B *** *** 18
18017369 PIN,PAR 94 119 0 0 AM74814 B *** *** 18
18017537 ROTOR 94 119 69588 0 AM89360 T *** *** 18
18017538 ROTAR A 95 119 544 0 AM57230 B *** *** 18
18017712 KNUCKLE 93 119 52 0 AM32225 B *** *** 17
18017713 KNUCKLE 93 119 50 0 AM32225 B *** *** 17
18018810 ADJUSTE 93 119 111 0 AM47680 B *** *** 18
18018811 ADJUSTE 93 119 83 0 AM47680 B *** *** 18
18018812 SHOE AS 93 119 59588 AM57590 B *** *** 18
18019381 SHOE AS 92 119 172 0 AM17149 B *** *** 18
18019498 LEVER A 94 119 0 0 AM74815 B *** *** 18
18019499 LEVER A 93 119 0 0 AM76207 B *** *** 18
</TABLE>
<PAGE>
63
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8019499 LEVER A 93 119 0 0 AM76207 B *** *** 18
18020184 LEVER, R 95 300 0 0 AM98412 B *** *** 18
18020185 LEVER, R 95 300 0 0 AM98412 B *** *** 18
18020238 PISTON 95 119 0 0 AM99090 B *** *** 18
18020442 KNUCKLE 95 300 0 0 AM98390 B *** *** 18
18020443 KNUCKLE 95 300 0 AM98588 B *** *** 31
18020594 SPRING 95 300 0 0 AM98412 B *** *** 18
18020595 SPRING 95 300 0 0 AM98412 B *** *** 18
18020785 ROTOR A 95 119 0 0 AM64297 B *** *** 18
18020817 DRUM AS 95 119 0 0 AM98409 B *** *** 18
18020903 CALIPER 93 119 10 AM93355 B *** *** 18
18020904 CALIPER 93 119 14 AM93355 B *** *** 18
18021030 KNUCKLE 95 119 0 0 AM79249 B *** *** 17
18021031 KNUCKLE 95 119 0 0 AM79249 B *** *** 17
18021049 ROTOR 95 119 0 0 AM98415 B *** *** 31
</TABLE>
<PAGE>
64
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
18021049 ROTOR 95 119 0 0 AM98415 B *** *** 31
18021052 KNUCKLE 95 119 0 0 AM98413 B *** *** 31
18021053 KNUCKLE 95 119 0 0 AM98413 B *** *** 31
18021162 CALIPER 95 119 0 0 AM78939 B *** *** 18
18021163 CALIPER 95 119 0 0 AM78939 B *** *** 18
18021344 ROTOR A 95 119 0 AM98899 B *** *** 18
18021347 KNUCKLE 95 119 0 AM98899 B *** *** 31
18021348 KNUCKLE 95 119 0 AM98899 B *** *** 31
18021419 DRUM AS 95 119 0 AM79009 B *** *** 31
22506477 SHAFT-A 90 119 2359 B *** *** 17
22510799 CARRIER 90 119 17 B *** *** 17
22525894 GEAR PK 93 119 5501 U *** *** 17
25518892 REAR BR 95 119 18212 B *** *** 18
25522880 KNUCKLE 95 119 2279 B *** *** 17
25522881 KNUCKLE 95 119 1785 B *** *** 17
</TABLE>
<PAGE>
65
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
25522881 KNUCKLE 95 119 1785 B *** *** 17
25527482 KNUCKLE 90 119 146 B *** *** 17
25527483 KNUCKLE 90 119 138 B *** *** 17
25555625 KNUCKLE 93 119 1 B *** *** 17
25555626 KNUCKLE 93 119 0 B *** *** 17
26006919 GEAR & 89 119 50 B *** *** 17
26009716 HOUSING 89 119 658 B *** *** 17
26010416 SHAFT-R 95 119 2664 0 B *** *** 17
26015211 RING & 90 119 17 B *** *** 17
26016277 HOUSING 90 119 73 0 B *** *** 17
26016515 GEAR AS 91 119 1080 0 AM17149 B *** *** 17
26017961 RING & 90 119 16 B *** *** 17
26019539 SHAFT 92 119 725 B *** *** 17
26019802 GEAR KI 90 383 1056 B *** *** 17
26026250 CASE DI 93 119 889 B *** *** 17
</TABLE>
<PAGE>
66
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26026250 CASE DI 93 119 889 B *** *** 17
26026251 CASE-DI 93 119 1698 B *** *** 17
26028314 AXLE AS 92 119 0 0 AM17813 B *** *** 17
26028316 AXLE AS 92 119 0 0 AM17813 B *** *** 17
26028317 AXLE AS 92 119 0 0 AM17813 B *** *** 17
26028320 AXLE AS 92 119 0 0 AM17813 B *** *** 17
26028323 AXLE AS 92 119 0 0 AM17813 B *** *** 17
26023825 AXLE AS 92 119 0 0 AM17813 B *** *** 17
26028327 AXLE AS 92 119 1 0 AM17813 B *** *** 17
26031777 AXLE AS 92 217 1 0 AM88308 B *** *** 17
26031852 AXLE AS 95 119 24 AM56119 B *** *** 17
26031853 AXLE 95 119 23 0 AM82833 U *** *** 17
26031855 AXLE 95 119 19 0 AM90119 U *** *** 17
26031858 AXLE AS 95 119 1 0 AM45369 U *** *** 17
26031859 AXLE 95 119 1 AM33798 U *** *** 17
</TABLE>
<PAGE>
67
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26031859 AXLE 95 119 1 AM33798 U *** *** 17
26031860 AXLE 95 119 1 AM33798 U *** *** 17
26032937 AXLE AS 93 217 1 0 AM56338 B *** *** 17
26033196 SHAFT 93 119 130 0 AM61798 B *** *** 17
26033820 BOLT/SC 95 119 1 0 AM47592 B *** *** 28
26034050 HOUSING 93 119 20 0 AM78939 B *** *** 17
26035518 AXLE AS 95 119 2 0 AM78939 B *** *** 17
</TABLE>
<PAGE>
68
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07825 GM28662
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
00558975 GEAR-DI 90 217 522 B *** *** 17
00558976 GEAR-DI 90 217 8376 B *** *** 17
00562923 GEAR SE 87 217 12 1639 B *** *** 17
01249146 DRUM 92 217 7026 AM57626 B *** *** 18
01255496 DRUM 92 217 134 B *** *** 18
03878972 FLANGE 70 217 325 1132 B *** *** 17
03879208 FLANGE 81 217 557 113 *** *** 17
03887867 HUB ASM 74 217 318 4568 B *** *** 18
03996118 FLANGE 81 217 6630 374 AM32857 B *** *** 17
07829901 TUBE 91 217 1360 B *** *** 19
14008467 ROD ASM 81 217 157 0 AM59398 B *** *** 19
14030327 GEAR SE 89 217 0 B *** *** 17
14032671 ARM 89 217 3 0 AM62857 B *** *** 19
14035368 SHFT-AX 89 217 1661 2186 AM32865 B *** *** 17
14056109 GEAR & 89 217 381 B *** *** 17
</TABLE>
<PAGE>
69
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14056109 GEAR & 89 217 381 B *** *** 17
14067632 CARR&T 89 217 116 B *** *** 17
U
14067635 CARR&T 89 217 196 B *** *** 17
U
14074821 SHAFT 89 217 820 2075 B *** *** 17
14074822 SHAFT 89 217 759 2075 B *** *** 17
14085347 GEAR 86 217 397 B *** *** 17
14085348 GEAR & 90 217 2670 3712 AM32865 B *** *** 17
14085349 GEAR & 90 217 3762 B *** *** 17
14091321 CARRIER 87 217 8 B *** *** 17
14091322 CARRIER 90 217 51 B *** *** 17
14092210 GEAR & 88 217 650 2487 AM32865 B *** *** 17
15597979 ARM STR 90 217 2 AM61322 B *** *** 19
15679733 DRUM 95 217 1358 AM75745 B *** *** 18
15693455 DRUM 95 217 1330 0 AM72635 B *** *** 18
22512850 SHAFT A 88 217 996 2075 C *** *** 17
</TABLE>
<PAGE>
70
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
22512850 SHAFT A 88 217 996 2075 C *** *** 17
22515440 SHFT-AX 87 217 365 2075 B *** *** 17
22515441 SHFT-AX 89 217 1213 2186 AM32865 B *** *** 17
22521259 GEAR SE 84 217 7 1509 B *** *** 17
26004466 GEAR UN 90 217 658 0 B *** *** 17
26004859 SHAFT-R 90 217 61 1933 B *** *** 17
26005801 HOUSING 94 217 21 B *** *** 17
26009312 AXLE AS 91 217 0 0 U *** *** 17
26009313 AXLE AS 91 217 0 U *** *** 17
26009315 AXLE AS 91 217 0 U *** *** 17
26009508 DIFF SI 90 217 7760 AM30221 B *** *** 17
26009534 AXLE SH 95 217 1757 AM30221 B *** *** 17
26010793 COVER A 95 217 1454 0 AM30221 B *** *** 17
26011054 AXLE SH 93 217 141 AM30221 B *** *** 17
26011055 AXLE SH 93 217 128 AM30221 B *** *** 17
</TABLE>
<PAGE>
71
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26011055 AXLE SH 93 217 128 AM30221 B *** *** 17
26011517 RETAINE 90 217 12 0 B *** *** 20
26012953 AXLE AS 92 217 0 B *** *** 17
26013007 RING & 90 217 201 B *** *** 17
26013013 END 92 217 1312 0 AM40946 B *** *** 17
26013882 AXLE SH 95 217 2393 0 B *** *** 17
26014371 DIFF. S 90 217 0 0 B *** *** 17
26014374 PIN. FL 95 217 196 0 AM30221 B *** *** 17
26014421 HSG. AS 90 217 328 B *** *** 17
26014585 SHF 93 217 1 0 AM80265 U *** *** 31
26014606 CASE 93 217 27 0 AM61660 B *** *** 17
26014607 SHF 95 217 14 0 AM96102 B *** *** 18
26014613 AXLE SH 00 0 AM93091 B *** *** 31
26014770 GEAR SE 93 217 0 0 AM57753 B *** *** 17
26015257 AXLE SH 95 217 1159 0 B *** *** 17
</TABLE>
<PAGE>
72
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26015257 AXLE SH 95 217 1159 0 B *** *** 17
26015258 AXLE SH 95 217 1159 0 B *** *** 17
26015259 AXLE SH 92 217 400 0 B *** *** 17
26015260 AXLE SH 93 217 1226 0 B *** *** 17
26016082 HSG. AS 90 217 41 B *** *** 17
26016304 RR AXLE 00 0 AM60728 B *** *** 31
26016760 SHAFT-R 94 217 24 AM30221 B *** *** 17
26017272 RING & 91 217 65 B *** *** 17
26018657 RR AXLE 91 217 19 0 B *** *** 17
26018658 HOUSING 91 384 19 0 U *** *** 17
26018659 RR AXLE 91 217 80 B *** *** 17
26018942 REAR AX 91 217 0 U *** *** 17
26018497 REAR AX 91 217 0 U *** *** 17
26018950 REAR AX 91 217 0 U *** *** 17
26018951 REAR AX 91 217 0 U *** *** 17
</TABLE>
<PAGE>
73
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26018951 REAR AX 91 217 0 U *** *** 17
26018952 REAR AX 91 217 0 U *** *** 17
26018953 REAR AX 91 217 0 U *** *** 17
26018954 REAR AX 91 217 0 U *** *** 17
26018955 REAR AX 91 217 0 U *** *** 17
26019043 RING & 91 217 244 0 B *** *** 17
26020823 AXLE AS 92 217 0 U *** *** 17
26020824 AXLE AS 92 217 0 U *** *** 17
26020833 AXLE AS 92 217 0 U *** *** 17
26020837 AXLE AS 92 217 0 U *** *** 17
26020838 AXLE AS 92 217 0 U *** *** 17
26020839 AXLE AS 92 217 0 U *** *** 17
26020845 AXLE AS 92 217 0 U *** *** 17
26020846 AXLE AS 92 217 0 U *** *** 17
26020847 AXLE AS 92 217 0 U *** *** 17
</TABLE>
<PAGE>
74
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26020847 AXLE AS 92 217 0 U *** *** 17
26020851 AXLE AS 92 217 0 U *** *** 17
26020852 AXLE AS 92 217 0 U *** *** 17
26020853 AXLE AS 92 217 0 U *** *** 17
26020857 AXLE AS 92 217 0 U *** *** 17
26020858 AXLE AS 92 217 0 U *** *** 17
26020859 AXLE AS 92 217 0 U *** *** 17
26020875 AXLE AS 92 217 0 U *** *** 17
26023735 AXLE AS 91 217 0 B *** *** 17
26023820 HOUSING 92 217 190 0 AM30207 B *** *** 17
26023821 HOUSING 92 217 275 0 AM30207 B *** *** 17
26024325 HOUSING 92 217 60 0 AM30136 B *** *** 17
26026247 CASE - 95 217 2243 0 B *** *** 17
26026248 DIFF. C 95 217 608 0 AM30221 B *** *** 17
26026301 AXLE 94 217 0 0 AM31878 U *** *** 17
</TABLE>
<PAGE>
75
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26026301 AXLE 94 217 0 0 AM31878 U *** *** 17
26026302 AXLE 94 217 2 0 AM31878 U *** *** 17
26026749 AXLE AS 91 217 0 U *** *** 17
26026750 AXLE AS 91 216 0 U *** *** 17
26026751 AXLE AS 91 216 0 U *** *** 17
26026780 GEAR SE 92 217 21 0 AM30207 B *** *** 17
26026781 GEAR SE 92 217 78 0 AM30207 B *** *** 17
26026782 GEAR SE 92 217 184 0 AM30207 B *** *** 17
26027356 AXLE AS 93 217 1 0 AM30221 U *** *** 17
26027357 AXLE AS 93 217 0 0 AM30221 U *** *** 17
26027358 AXLE AS 94 217 1 0 AM30221 U *** *** 17
26027361 AXLE AS 93 217 * 0 AM30221 U *** *** 17
26027362 AXLE AS 93 217 3 0 AM30221 U *** *** 17
26027588 AXLE SH 95 217 283 AM72010 B *** *** 17
26027589 SHAFT 95 217 186 0 AM56688 U *** *** 17
</TABLE>
- --------
* Number is illegible on the master.
<PAGE>
76
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26027589 SHAFT 95 217 186 0 AM56688 U *** *** 17
26028912 HOUSING 91 217 231 0 B *** *** 17
26029246 AXLE AS 93 217 0 AM30221 U *** *** 17
26029247 AXLE AS 93 217 0 AM30221 U *** *** 17
26029248 AXLE AS 93 217 0 AM30221 U *** *** 17
26029249 AXLE AS 93 217 0 AM30221 U *** *** 17
26029250 AXLE AS 92 217 0 0 U *** *** 17
26029251 AXLE AS 92 217 0 0 U *** *** 17
26029253 AXLE AS 93 217 17 AM30221 U *** *** 17
26029254 AXLE AS 93 217 23 AM30221 U *** *** 17
26029255 AXLE AS 93 217 3 AM30221 U *** *** 17
26029256 AXLE AS 92 217 0 0 U *** *** 17
26029257 AXLE AS 92 217 0 0 U *** *** 17
26029258 AXLE AS 92 217 0 0 U *** *** 17
26029259 AXLE AS 94 217 5 AM30221 U *** *** 17
</TABLE>
<PAGE>
77
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26029259 AXLE AS 94 217 5 AM30221 U *** *** 17
26029260 AXLE AS 93 217 34 AM30221 U *** *** 17
26029261 AXLE AS 94 217 20 AM30221 U *** *** 17
26029262 AXLE AS 92 217 0 0 U *** *** 17
26029263 AXLE AS 92 217 1 0 U *** *** 17
26029264 AXLE AS 92 217 0 0 U *** *** 17
26029268 AXLE AS 92 217 0 0 U *** *** 17
26029269 AXLE AS 92 217 0 0 U *** *** 17
26029270 AXLE AS 92 217 0 0 U *** *** 17
26029273 AXLE AS 93 217 1 AM30221 U *** *** 17
26029997 ROD 93 217 300 0 AM59384 B *** *** 19
26030277 AXLE 94 217 0 0 AM32479 U *** *** 17
26030278 AXLE 94 217 0 0 AM32479 U *** *** 17
26030280 AXLE 94 217 0 0 AM32479 U *** *** 17
26030282 AXLE 94 217 0 0 AM32479 U *** *** 17
</TABLE>
<PAGE>
78
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26030282 AXLE 94 217 0 0 AM32479 U *** *** 17
26030284 AXLE 94 217 1 0 AM32479 U *** *** 17
26030286 AXLE 93 217 0 AM33314 U *** *** 17
26030287 AXLE 93 217 0 AM33314 U *** *** 17
26030288 AXLE 93 217 0 AM33314 U *** *** 17
26030334 AXLE 94 217 0 0 AM31878 U *** *** 17
26030335 AXLE 94 217 5 0 AM31878 U *** *** 17
26030336 AXLE 94 217 5 0 AM31878 U *** *** 17
26030337 AXLE 94 217 2 0 AM31508 U *** *** 17
26030531 AXLE AS 94 217 64 AM30221 U *** *** 17
26030532 SHAFT A 94 217 3 0 AM99328 B *** *** 17
26030533 SHAFT A 94 217 26 0 AM99328 B *** *** 17
26030535 AXLE AS 94 217 13 AM30221 U *** *** 17
26030539 AXLE AS 93 217 53 AM30221 U *** *** 17
26030713 RR AXLE 93 217 50 AM72442 B *** *** 17
</TABLE>
<PAGE>
79
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26030713 RR AXLE 93 217 50 AM72442 B *** *** 17
26031187 AXLE 93 217 0 0 AM31870 U *** *** 17
26031251 SHAFT 92 217 1481 AM46400 B *** *** 17
26031252 SHAFT 92 217 259 AM41000 B *** *** 17
26031267 HOUSING 92 217 227 0 AM30207 B *** *** 17
26031320 AXLE 94 217 2 AM62347 B *** *** 17
26031321 AXLE 94 217 1 AM62347 B *** *** 17
26031322 AXLE 94 217 2 AM62347 B *** *** 17
26031323 AXLE 94 217 0 AM62347 B *** *** 31
26031324 AXLE 94 217 0 AM62347 B *** *** 31
26031327 AXLE 94 217 0 AM62347 B *** *** 31
26031328 AXLE 94 217 0 AM62347 B *** *** 17
26031332 AXLE 94 217 0 0 AM65319 B *** *** 31
26031338 AXLE 94 217 4 0 AM71742 B *** *** 17
26031739 AXLE 93 217 0 0 AM31878 U *** *** 17
</TABLE>
<PAGE>
80
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26031739 AXLE 93 217 0 0 AM31878 U *** *** 17
26031857 AXLE 93 217 0 0 AM31878 U *** *** 17
26031947 CLAMP 93 217 0 0 AM54556 B *** *** 19
26033142 SHF 95 217 0 0 AM92014 U *** *** 19
26033477 CASE 95 217 6 AM74594 U *** *** 17
26033478 SHF 95 217 0 0 AM91416 U *** *** 17
26034053 SHF 93 217 1 AM72442 B *** *** 19
26034677 AXLE 93 217 5 0 AM38218 U *** *** 17
26034679 AXLE 93 217 2 0 AM38218 U *** *** 17
26034780 AXLE 94 217 0 0 AM75144 U *** *** 17
26034783 AXLE 94 217 0 0 AM75144 U *** *** 31
26034788 GEAR 94 217 0 0 AM85380 B *** *** 17
26034789 GEAR 94 217 0 0 AM85380 B *** *** 17
26037330 AXLE AS 94 217 0 0 AM99328 B *** *** 31
26038396 SHF 94 217 0 AM90262 B *** *** 17
</TABLE>
<PAGE>
81
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26038396 SHF 94 217 0 AM90262 B *** *** 17
26038960 AXLE 93 217 0 AM51859 U *** *** 17
26038961 AXLE 93 217 2 AM51859 U *** *** 17
26040375 CASE 95 217 10 AM90693 B *** *** 17
26041015 ROD 95 217 21 0 AM96151 B *** *** 19
</TABLE>
<PAGE>
82
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07825 GM28663
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
00335210 TIE 82 217 55 AM69375 B *** *** 19
00378343 SOCKET 95 130 4774 B *** *** 19
00458201 SOCKET 95 217 184 B *** *** 19
00718237 ARM PIT 91 217 975 B *** *** 19
00718238 PITMAN 90 217 0 B *** *** 19
00718522 ARM PIT 85 217 35 B *** *** 19
00718523 ARM STR 94 217 162 B *** *** 19
00718524 ARM 91 217 869 AM69362 B *** *** 19
03741383 ARM 82 217 385 AM82323 B *** *** 19
06259993 PIT ARM 94 217 0 B *** *** 19
06260677 SUPPO 95 217 1152 B *** *** 19
06270303 RELAY R 93 217 793 B *** *** 19
06270304 ROD-REL 82 217 194 57 B *** *** 19
07826314 ARM PIT 91 217 764 B *** *** 19
07826611 ARM PIT 90 217 218 B *** *** 19
</TABLE>
<PAGE>
83
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07826611 ARM PIT 90 217 218 B *** *** 19
07826870 SAG PA 93 217 9877 0 AM59649 B *** *** 19
07828441 SOCKET 79 217 44 57 B *** *** 19
07828456 PITMAN 88 217 422 183 B *** *** 19
07831904 ARM 91 217 353 B *** *** 19
07833117 ROD ASM 88 217 1350 B *** *** 19
07833472 ROD ASM 88 217 151 1728 B *** *** 19
07833478 ROD ASM 91 217 3410 B *** *** 19
07833479 SHF 83 217 219 AM69371 B *** *** 19
07833482 SOCKET 90 217 2667 B *** *** 19
07833484 ROD ASM 90 217 1066 B *** *** 19
07833487 ROD ASM 80 217 2616 B *** *** 19
07833489 ROD ASM 90 217 78 1784 B *** *** 19
07833492 INNTER 90 217 26 B *** *** 19
07833493 OUTER T 90 217 37 B *** *** 19
</TABLE>
<PAGE>
84
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07833493 OUTER T 90 217 37 B *** *** 19
07834621 INNER R 85 217 284 1732 B *** *** 19
07835784 INT. RO 88 217 550 1785 B *** *** 19
07836721 SOCKET 90 217 1009 1732 B *** *** 19
07836734 ARM PIT 90 217 483 B *** *** 19
07838063 INT TIE 90 217 1507 B *** *** 19
07838066 OTR TIE 88 217 996 B *** *** 19
07838713 ROD ASM 90 217 729 B *** *** 19
07838931 SOCKET 90 217 2991 B *** *** 19
07842102 IDLER A 84 217 278 1055 B *** *** 19
07849564 ARM 88 217 40 B *** *** 19
14000108 TIE ROD 91 217 10342 B *** *** 19
14000544 SOCKET 90 217 5154 B *** *** 19
14010102 ARM ASM 90 217 274 B *** *** 19
14010106 ARM ASM 90 217 1098 B *** *** 19
</TABLE>
<PAGE>
85
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14010106 ARM ASM 90 217 1098 B *** *** 19
14024036 SOCKET 91 217 1818 B *** *** 19
14024108 ARM PIT 84 217 74 0 AM53251 B *** *** 19
14032655 ROD-STR 89 217 191 B *** *** 19
14032656 ARM ASM 89 217 4936 B *** *** 19
14032659 SOCKET 89 217 4757 B *** *** 19
14032664 SUPPORT 89 217 281 B *** *** 19
14032669 ROPD- 89 217 1448 B *** *** 19
STR
14032670 STRG-RO 89 217 11 B *** *** 19
14041514 ROD-STR 91 217 704 B *** *** 19
14041517 SOCKET 91 217 2710 B *** *** 19
14041662 RPD ASM 91 217 1749 B *** *** 19
14042467 ROD-STR 90 217 139 B *** *** 19
14045694 R-TRK R 90 217 1463 B *** *** 19
14045695 ARM ASM 90 217 6824 B *** *** 19
</TABLE>
<PAGE>
86
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
14045695 ARM ASM 90 217 6824 B *** *** 19
14062916 ARM ASM 84 217 138 28 B *** *** 19
14064660 ARM 91 217 2060 B *** *** 19
14074904 ARM-PIT 90 217 210 B *** *** 19
14074905 ARM-PIT 90 217 0 B *** *** 19
14074906 ROD ASM 90 217 1998 B *** *** 19
15530363 ARM 95 217 24 B *** *** 19
15568009 ROD ASS 90 217 484 B *** *** 19
15595962 ARM-PIT 91 217 709 B *** *** 19
15595963 ARM ASM 91 217 1989 B *** *** 19
15622056 PITMAN 90 217 1 C *** *** 19
15622065 ARM 91 217 73 B *** *** 19
15625712 ARM-S 91 217 131 B *** *** 19
15625755 PITMAN 90 217 6 C *** *** 19
15651267 PIT. AR 95 217 90 C *** *** 19
</TABLE>
<PAGE>
87
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
15651267 PIT. AR 95 217 90 C *** *** 19
15672603 PITMAN 95 217 5 B *** *** 19
15679992 ARM -PI 95 217 1 0 AM30423 B *** *** 19
15680002 ARM - P 95 217 0 0 AM30423 B *** *** 19
15691848 ARM 94 217 11 0 AM58592 B *** *** 19
18018680 DRUM HU 95 217 96 AM87602 B *** *** 18
26000151 ROD ASM 90 217 14745 B *** *** 19
26000153 ROD ASM 90 217 6763 B *** *** 19
26000155 ROD ASM 90 217 5133 B *** *** 19
26001371 SHF 95 217 451 AM74975 B *** *** 19
26005899 IDLER A 90 217 0 B *** *** 19
26011510 LKR 90 217 17 AM65635 B *** *** 20
26013538 ROD-REL 95 217 53 B *** *** 19
26013540 PITMAN 90 217 54 B *** *** 19
26016946 ROD, ST 90 217 360 B *** *** 19
</TABLE>
<PAGE>
88
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26016946 ROD, ST 90 217 360 B *** *** 19
26017985 CONNECT 90 217 270 B *** *** 19
26019607 IDLER A 90 217 10992 B *** *** 19
26020885 RELAY R 95 217 251 0 B *** *** 19
26021230 RELAY R 95 217 465 B *** *** 19
26021270 ROD ASM 95 217 46 B *** *** 19
26022135 IDLER A 90 217 18886 B *** *** 19
26022152 IDLER A 90 217 9814 B *** *** 19
26022173 IDLER A 90 217 18941 B *** *** 19
26024678 IDLER A 93 217 14311 0 AM30206 B *** *** 19
26026925 ARM, ST 92 217 81068 B *** *** 19
26027087 IDLER A 93 217 1757 0 AM48205 B *** *** 19
26028523 ROD 93 217 1255 AM55581 B *** *** 19
26028524 ARM 93 217 284 0 AM54598 B *** *** 19
26028727 OUTER T 00 0 AM43392 U *** *** 31
</TABLE>
<PAGE>
89
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26028727 OUTER T 00 0 AM43392 U *** *** 31
26930000 GEAR KI 93 217 578 0 AM41311 U *** *** 19
26031952 ROD 95 217 1 0 AM72288 B *** *** 19
26031953 IDLER A 93 217 13 AM36125 U *** *** 19
26031954 PITMAN 94 217 0 AM36125 U *** *** 19
26031956 INNER T 00 0 AM43392 U *** *** 31
26031957 ROD STE 92 217 10 0 AM61121 B *** *** 19
26033550 DLER A 93 217 59 AM43392 B *** *** 19
26033556 STRG RE 93 217 61 AM43392 B *** *** 19
26033693 SHF 95 216 4 AM79393 B *** *** 19
26034055 STEER 216 3 AM61271 B *** *** 19
26034085 ROD 95 217 5 0 AM93093 U *** *** 19
26034090 SHF 95 217 23 0 AM94888 U *** *** 19
26035379 DIFF GE 90 217 94 2000 AM42324 B *** *** *17
26036595 KIT BAL 92 217 334 0 AM33913 U *** *** 19
</TABLE>
<PAGE>
90
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26036595 KIT BAL 92 217 334 0 AM33913 U *** *** 19
26036600 INNER T 93 216 0 0 AM49232 B *** *** 19
26037825 LINK 00 0 AM79059 B *** *** 31
26037901 ROD ASY 94 217 92 0 AM94888 B *** *** 19
26038980 ROD 95 384 0 0 AM72288 B *** *** 19
26038989 ROD KIT 95 384 4 0 AM72288 B *** *** 19
26039583 SHF 94 384 0 0 AM72360 B *** *** 19
26040216 ARM PIT 95 217 11 0 AM94888 B *** *** 19
26041017 GEAR 95 217 8 AM94888 B *** *** 19
</TABLE>
<PAGE>
91
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
01594 GM27198
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07838754 SHF 90 217 8 0 AM70394 U *** *** 17
07838757 SHF 90 217 12 0 AM74190 U *** *** 17
07838758 SHFT 91 217 18 0 AM70394 U *** *** 17
07838759 SHFT 90 217 24 0 AM70394 U *** *** 17
07838762 SHFT 90 217 49 0 AM70394 U *** *** 17
07838763 SHF 90 217 12 0 AM74190 U *** *** 17
07838764 SHF 90 217 114 0 AM74190 U *** *** 17
07839001 BEARING 91 217 0 0 AM03402 B *** *** 17
07839127 YOKE 87 217 581 AM01541 B *** *** 17
07839224 SHAFT 87 217 41 0 AM03402 U *** *** 17
07839227 SHAFT 91 217 62 AM95123 U *** *** 17
07839228 SHAFT 91 217 5 0 AM03402 U *** *** 17
07839229 SHAFT 88 217 14 0 AM03402 B *** *** 17
07839231 SHF 90 217 25 0 AM74190 U *** *** 17
07839233 SHF 89 217 2 0 AM74190 U *** *** 17
</TABLE>
<PAGE>
92
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07839233 SHF 89 217 3 0 AM74190 U *** *** 17
07839234 SHF 89 217 0 0 AM74190 U *** *** 17
07839467 SHAFT 94 217 1279 AM71072 B *** *** 17
07840535 SHAFT 90 217 124 0 AM03402 U *** *** 17
07840687 YOKE 90 217 26 0 AM03402 B *** *** 17
07840805 SPIDER 85 217 0 0 AM03402 B *** *** 17
07841077 SHAFT 95 217 132 0 AM03402 B *** *** 17
07841078 SHAFT 95 217 222 0 AM03402 B *** *** 17
07841336 SHAFT 93 217 86 0 AM03402 U *** *** 17
07841475 SHAFT 93 217 264 AM95487 U *** *** 17
07841484 SHAFT 91 217 40 0 AM03402 U *** *** 17
07841488 SHF 93 217 117 0 AM03402 B *** *** 17
07842006 SPIDER 87 217 0 0 AM03402 B *** *** 17
07842127 SHAFT 95 217 231 0 AM03402 B *** *** 17
07842132 SHF 90 217 3 0 AM74190 U *** *** 17
</TABLE>
<PAGE>
93
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07842132 SHF 90 217 3 0 AM74190 U *** *** 17
07842133 SHF 90 217 5 0 AM74190 U *** *** 17
07842329 SHAFT 91 217 9 0 AM03402 U *** *** 17
07843984 BEARING 87 217 9 0 AM03402 B *** *** 17
07844074 SHAFT 91 217 378 0 AM88074 B *** *** 17
07844075 SHAFT 87 217 18 0 AM030402 U *** *** 17
07844076 SHAFT 87 217 27 0 AM03402 U *** *** 17
07844077 SHAFT 91 217 79 0 AM03402 U *** *** 17
07844401 SHAFT 93 217 192 0 AM03402 U *** *** 17
07844403 SHAFT 91 217 20 AM02553 U *** *** 17
07844404 SHF 91 217 12 0 AM00970 U *** *** 17
07844740 SHAFT 90 217 278 0 AM03402 B *** *** 17
07845093 YOKE 89 217 15 0 AM03402 B *** *** 17
07845094 YOKE 95 217 555 0 AM91747 B *** *** 17
07845102 SHAFT 87 17 19 0 AM03402 U *** *** 17
</TABLE>
<PAGE>
94
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07845102 SHAFT 87 217 19 0 AM03402 U *** *** 17
078451119 YOKE 91 217 31 0 AM03402 B *** *** 17
07845487 SHAFT 91 217 7 0 AM03402 U *** *** 17
07845488 SHAFT 91 217 189 AM02553 U *** *** 17
07845813 SHAFT 93 217 96 0 AM03402 U *** *** 17
07845814 SHAFT 93 217 184 0 AM03402 U *** *** 17
07845895 SHF 90 217 45 0 AM02933 B *** *** 17
07845896 SHAFT 87 217 2 0 AM03402 U *** *** 17
07845898 SHAFT 90 217 58 AM02553 U *** *** 17
07847255 SHAFT 91 17 2 0 AM03402 U *** *** 17
07847256 SHAFT 90 217 4 AM02553 U *** *** 17
07847257 SHAFT 90 217 6 0 AM03402 U *** *** 17
07847316 SHF 90 217 0 0 AM74190 U *** *** 17
07847635 SHF 89 217 1 0 AM74190 U *** *** 17
07848063 SHF 89 17 2 0 AM74190 U *** *** 17
</TABLE>
<PAGE>
95
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07848063 SHF 89 217 2 0 AM74190 U *** *** 17
07848116 YOKE 89 217 13 0 AM03402 B *** *** 17
07848466 SHAFT 90 217 49 0 AM03402 U *** *** 17
07848467 SHAFT 89 217 34 0 AM03402 U *** *** 17
07848468 SHF 90 217 10 0 AM74190 U *** *** 17
07848469 SHAFT 90 217 1 0 AM03402 U *** *** 17
07848526 SHAFT 90 217 1 0 AM03402 U *** *** 17
07848554 YOKE 91 217 33 0 AM03402 B *** *** 217
07848635 YOKE 95 217 894 0 AM03402 B *** *** 17
07848637 YOKE 94 217 124 0 AM88074 B *** *** 17
07848643 YOKE 88 217 9 0 AM03402 B *** *** 17
07849145 SHAFT 95 217 143 0 AM87901 U *** *** 17
07849146 SHF 95 217 3 0 AM74190 U *** *** 17
07849724 SHAFT 95 217 183 0 AM80566 U *** *** 17
22038121 PROP SH 00 0 0 AM03402 U *** *** 31
</TABLE>
<PAGE>
96
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
22038121 PROP SH 00 0 0 AM03402 U *** *** 31
26000270 SHF 90 217 3 0 AM77562 U *** *** 17
26001999 SHAFT 95 217 2 0 AM57633 U *** *** 17
26002001 SHAFT 95 217 9 0 AM57633 U *** *** 17
26002002 SHAFT 94 217 30 0 AM57633 U *** *** 17
26002003 SHAFT 89 217 2 0 AM03402 U *** *** 17
26002793 SHAFT A 91 217 2 0 AM03402 U *** *** 17
26002796 SHAFT A 89 217 1 0 AM03402 U *** *** 17
26002901 SHAFT A 90 178 0 0 AM03402 B *** *** 17
26002923 PROP SH 90 217 0 0 AM03402 U *** *** 17
26002924 SHAFT A 90 178 0 0 AM03402 B *** *** 17
26003211 SHAFT 89 217 14 0 AM03402 B *** *** 17
26003659 SHAFT 95 217 194 AM02553 U *** *** 17
26003877 SHAFT A 90 217 4 AM02553 B *** *** 17
26003995 PROP SH 90 217 10 AM02553 U *** *** 17
</TABLE>
<PAGE>
97
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26003995 PROP SH 90 217 10 AM02553 U *** *** 17
26004464 PROP SH 93 217 84 O AM03402 B *** *** 17
26004465 SHAFT A 87 217 5 0 AM03402 B *** *** 17
26005059 SHAFT 95 217 4 0 AM03402 U *** *** 17
26005665 SHAFT 89 217 11 0 AM03402 U *** *** 17
26006676 SHAFT 88 217 0 0 AM03402 U *** *** 17
26006678 SHF 91 217 1 0 AM77386 B *** *** 17
26006679 SHAFT 88 217 0 0 AM03402 B *** *** 17
26006680 SHAFT 95 217 213 0 AM03402 U *** *** 17
26006682 SHAFT 90 217 6 0 AM03402 U *** *** 17
26006683 SHAFT 88 217 0 0 AM03402 U *** *** 17
26006664 SHAFT 88 217 0 0 AM03402 U *** *** 17
26006948 PROPSHA 94 217 246 AM30111 U *** *** 17
26008855 YOKE 94 217 101 0 AM41665 B *** *** 17
26008867 BEARING 90 217 25180 AM30864 B *** *** 17
</TABLE>
<PAGE>
98
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26008867 BEARING 90 217 25180 AM30864 B *** *** 17
26010027 SPIDER 92 217 536 0 AM39088 B *** *** 17
26010558 SPIDER 90 217 6295 AM43293 B *** *** 17
26010700 YOKE AS 95 217 55 0 AM03402 B *** *** 17
26010886 SHFT 95 217 13 0 AM64737 U *** *** 17
26010888 SHF 95 217 1 AM64224 B *** *** 17
26010890 SHF 95 217 15 AM64224 B *** *** 17
26010893 SHF 94 217 7 AM64224 B *** *** 17
26010894 SHF 89 217 2 0 AM97409 U *** *** 17
26010897 SHAFT 89 217 1 0 AM03402 U *** *** 17
26012305 PROPSHA 94 217 67 AM02553 B *** *** 17
26012306 PROPSHA 91 217 34 AM02553 B *** *** 17
26013276 PROP SH 90 217 0 0 AM03402 U *** *** 17
26013277 SHAFT 95 217 8 AM51419 U *** *** 17
26013278 PROP SH 90 217 2 0 AM03402 U *** *** 17
</TABLE>
<PAGE>
99
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26013278 PROP SH 90 217 2 0 AM03402 U *** *** 17
26013281 YOKE AS 95 217 78 AM94505 B *** *** 17
26013529 PROP SH 89 217 0 0 AM03402 U *** *** 17
26013585 FRT PRO 90 217 7 0 AM91747 B *** *** 17
26013586 SHAFT A 91 217 14 0 AM03402 B *** *** 17
26013911 SHAFT & 91 217 726 0 AM03402 B *** *** 17
26013913 SHAFT & 91 217 226 0 AM03402 B *** *** 17
26014067 SHAFT A 91 217 27 0 AM03402 U *** *** 17
26014236 SHF 95 217 58 0 AM74274 B *** *** 17
26014287 SHF 95 217 6 AM78981 U *** *** 17
26014288 SHF 95 217 0 AM64224 B *** *** 17
26014290 SHF 95 217 38 0 AM73643 U *** *** 17
26014820 PROP. S 89 217 5 0 AM03402 B *** *** 17
26014904 SHAFT 95 217 7 0 AM51419 U *** *** 17
26014905 SHAFT 95 217 9 0 AM51419 U *** *** 17
</TABLE>
<PAGE>
100
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26014905 SHAFT 95 217 9 0 AM51419 U *** *** 17
26014906 SHAFT 95 217 3 0 AM51419 U *** *** 17
26014907 SHAFT 95 217 14 0 AM51419 U *** *** 17
26015309 SHAFT A 91 217 11 0 AM03402 U *** *** 17
26015310 SHAFT A 91 217 4 0 AM03402 U *** *** 17
26015386 SHAFT A 91 217 2 0 AM03402 U *** *** 17
26015393 SHAFT A 91 217 1 0 AM03402 B *** *** 17
26015394 SHAFT A 90 217 28 0 AM01272 B *** *** 17
26015584 SLIP YO 94 217 102 0 AM03402 B *** *** 17
26015639 SHAFT A 91 217 19 0 AM03402 U *** *** 17
26015640 SHAFT A 91 217 22 0 AM03402 U *** *** 17
26016210 SHAFT A 91 217 25 0 AM03402 B *** *** 17
26016452 SHF 95 217 8 0 AM74185 U *** *** 17
26016630 UJT BEA 95 217 5 0 AM03402 B *** *** 17
26018062 PROP. A 95 217 58 AM90890 B *** *** 17
</TABLE>
<PAGE>
101
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26018062 PROP. A 95 217 58 AM90890 B *** *** 17
26018066 PROP. A 95 217 264 0 AM92612 B *** *** 17
26018610 SHAFT A 90 217 1 0 AM03402 U *** *** 17
26019535 PROP. A 91 217 12 0 AM03402 B *** *** 17
26019536 PROPSHA 91 217 1 0 AM01272 B *** *** 17
26019541 PROPSHA 90 217 13 0 AM03402 B *** *** 17
26019542 SHAFT 95 217 1 0 AM57633 U *** *** 17
26019543 PROP S. 90 217 6 0 AM03402 B *** *** 17
26019544 PROP. S 90 217 6 0 AM03402 B *** *** 17
26019545 SHAFT 94 217 21 0 AM57633 U *** *** 17
26019546 SHAFT 95 217 19 0 AM57633 U *** *** 17
26019549 SHAFT 95 217 9 0 AM57633 U *** *** 17
26019634 YOKE AS 90 217 8 0 AM03402 B *** *** 17
26019673 SHAFT 84 210 0 0 AM03402 B *** *** 17
26020316 SHF 95 217 46 0 AM74190 U *** *** 17
</TABLE>
<PAGE>
102
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26020316 SHF 95 217 46 0 AM74190 U *** *** 17
26020317 SHF 95 217 87 0 AM74190 U *** *** 17
26020319 SHAFT 94 217 34 0 AM57633 U *** *** 17
26020347 SHAFT A 92 217 0 0 AM03402 U *** *** 17
26022455 PROPSHA 92 217 0 0 AM03402 B *** *** 17
26022466 K-TRUCK 94 217 1274 0 AM87555 B *** *** 17
26022467 PROPSHA 94 217 172 0 AM87903 U *** *** 17
26022608 SHAFT A 91 217 3 0 AM03402 B *** *** 17
26023053 SHAFT A 92 217 92 0 AM03402 B *** *** 17
26024350 SHF 93 217 24 0 AM74190 U *** *** 17
26024351 SHF 93 217 10 0 AM74190 U *** *** 17
26024565 SHF 94 217 125 0 AM74190 U *** *** 17
26024566 SHF 94 217 27 0 AM74190 U *** *** 17
26025289 SHAFT A 95 217 81 0 AM03402 U *** *** 17
26026138 SHAFT 94 217 38 0 AM57633 U *** *** 17
</TABLE>
<PAGE>
103
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26026138 SHAFT 94 217 38 0 AM57633 U *** *** 17
26026157 SHAFT 91 217 8 0 AM91747 U *** *** 17
26026330 SHAFT A 95 217 82 0 AM94393 U *** *** 17
26026437 SLIP YO 94 217 78 AM03442 U *** *** 17
26026439 PROP SH 94 217 22 0 AM59645 B *** *** 17
26026739 YOKE AS 95 217 144 AM87749 U *** *** 17
26028001 SLIP YO 94 217 205 AM88245 B *** *** 17
26028527 SHAFT 95 217 7 0 AM59189 U *** *** 17
26028733 SHF 95 217 0 0 AM74185 B *** *** 31
26029958 SHF 94 217 2 0 AM94504 U *** *** 17
26029960 SHF 95 217 0 0 AM74185 B *** *** 31
26030319 SHAFT 00 0 0 AM03402 U *** *** 31
26030320 SHAFT A 95 216 0 0 AM99452 B *** *** 17
26030321 SHAFT A 95 216 0 0 AM99452 B *** *** 17
26030510 SHAFT 93 217 0 AM90752 U *** *** 17
</TABLE>
<PAGE>
104
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26030510 SHAFT 93 217 0 AM90752 U *** *** 17
26030512 SHF 93 217 25 0 AM74190 U *** *** 27
26030602 SHAFT A 95 217 1 0 AM03402 U *** *** 17
26030603 SHAFT A 95 217 4 0 AM03402 U *** *** 17
26031924 PROPSHA 94 217 1 AM30111 U *** *** 17
26031926 SHF 94 217 1 0 AM74190 U *** *** 17
26031942 SHAFT 91 217 3236 0 AM40440 B *** *** 17
26032444 PROSPHA 95 217 4 AM71856 U *** *** 17
26032445 PROP 95 217 3 AM71856 B *** *** 17
SHA
26032448 SHAFT A 95 304 0 0 AM99452 B *** *** 17
26032449 PROP SH 95 217 1 AM71856 U *** *** 17
26032451 PROP SH 95 217 23 AM71856 U *** *** 17
26032697 BEARING 93 217 14315 0 AM02408 B *** *** 21
26032944 SHAFT 94 217 0 AM73643 U *** *** 17
26032945 SHF 93 217 2 0 AM77562 U *** *** 17
</TABLE>
<PAGE>
105
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26032945 SHF 93 217 2 0 AM77562 U *** *** 17
26033681 SHAFT A 95 304 0 0 AM99452 B *** *** 17
26033683 SHAFT A 95 304 0 0 AM99452 B *** *** 17
26033684 SHF 95 217 10 0 AM03442 B *** *** 17
26033690 SHAFT 94 217 4 0 AM91749 U *** *** 17
26034594 SHF 94 217 17 AM74589 U *** *** 17
26034733 SHAFT A 95 304 0 0 AM99452 B *** *** 17
26035154 SHAFT 94 217 925 AM42969 B *** *** 17
26035527 PROP SH 95 217 678 0 AM57627 B *** *** 17
26036048 SHF 95 217 563 AM74796 U *** *** 17
26036049 SHF 95 217 113 0 AM94504 U *** *** 17
26038120 PROP SH 95 0 0 AM03402 U *** *** 31
26038124 PROP SH 95 0 0 AM03402 U *** *** 31
26038126 PROP SH 95 0 AM03402 U *** *** 31
26038388 SHFT 94 217 0 AM74589 U *** *** 31
</TABLE>
<PAGE>
106
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26038388 SHFT 94 217 0 AM74589 U *** *** 31
26039772 SHFT 94 217 1 AM01632 B *** *** 17
26039842 SHFT 95 217 2 AM94896 U *** *** 17
26039989 SHAFT 95 217 9 0 AM83274 U *** *** 17
26039990 SHAFT 95 217 8 0 AM65236 U *** *** 17
26041068 SHF 93 217 0 AM91281 B *** *** 17
26041123 SHAFT A 95 0 0 AM99326 U *** *** 31
26041128 SHAFT 94 217 1 AM94899 U *** *** 17
26041129 PROPSHA 94 217 0 0 AM71856 U *** *** 17
26041138 SHFT 95 217 0 0 AM01277 U *** *** 17
26041140 SHF 95 217 0 0 AM01721 U *** *** 17
26041428 SHF 95 217 389 AM75001 U *** *** 17
26042110 PROP SH 00 0 0 AM03402 U *** *** 31
26042972 SHF 95 217 0 AM90787 U *** *** 17
26043153 SHF 95 217 20 0 AM03442 B *** *** 17
</TABLE>
<PAGE>
107
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26043153 SHF 95 217 20 0 AM03442 B *** *** 17
26044064 PROP SH 00 0 0 AM03402 U *** *** 31
00361756 BRACKET 87 217 418 0 AM01270 B *** *** 17
02033401 LINK 93 217 1 AM81833 B *** *** 19
06260185 SHF 86 217 0 0 AM03402 B *** *** 02
07801551 YOKE 84 217 187 0 AM01272 B *** *** 17
07802242 BEARING 84 217 487 0 AM03402 B *** *** 17
07806140 U-JOINT 95 217 56283 0 AM03402 U *** *** 17
07809057 YOKE 95 217 39 0 AM03402 B *** *** 17
07809762 YOKE 81 217 410 0 AM03402 U *** *** 17
07812557 S/V/ ASM 95 217 4181 0 AM01272 U *** *** 17
0715848 CV U JT 95 217 1408 0 AM03402 U *** *** 17
07815849 YOKE AS 94 217 109 0 AM03402 B *** *** 17
07815851 U-JOINT 95 217 444 0 AM03402 U *** *** 17
07816006 KIT 84 217 187 0 AM03402 B *** *** 13
07826624 YOKE 90 217 370 0 AM03402 U *** *** 17
07826671 SHAFT 80 217 38 0 AM03402 U *** *** 17
</TABLE>
<PAGE>
108
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07826671 SHAFT 80 217 38 0 AM03402 U *** *** 17
07828633 SHAFT 89 217 101 0 AM03402 B *** *** 17
07829136 DAMPER 80 217 380 0 AM03402 B *** *** 02
07832700 SHAFT 90 217 100 0 AM03402 B *** *** 17
07832813 SHAFT 91 217 27 0 AM03402 U *** *** 17
07833110 SHAFT 88 217 26 0 AM03402 B *** *** 17
07834051 SHAFT 89 217 62 0 AM87901 U *** *** 17
07834052 SHAFT 87 217 3 0 AM03402 B *** *** 17
07834053 SHAFT 91 217 34 AM87749 B *** *** 17
07834057 SHAFT 90 217 0 0 AM03402 U *** *** 17
07834058 SHF 90 217 1 0 AM74190 U *** *** 17
07834060 SHF 91 217 3 0 AM74190 U *** *** 17
07834387 U JOINT 95 130 14690 0 AM40436 U *** *** 17
07834448 YOKE 93 217 314 0 AM03402 B *** *** 17
07834986 BEARING 85 217 0 0 AM03402 B *** *** 17
</TABLE>
<PAGE>
109
<TABLE>
<CAPTION>
VENDOR CONTRACT PART (OPTIONAL SEARCH)
07824 GM28661
PART DESC LY DECK 12MOSLS SETUP AMEND U/B COST COST EXT B/C
- ---- ---- -- ---- ------- ----- ----- --- ---- -------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
07834986 BEARING 85 217 0 0 AM03402 B *** *** 17
07835301 SHF 90 217 17 0 AM74190 U *** *** 17
07835963 SHF 89 217 0 0 AM74190 U *** *** 17
07835965 SHF 89 217 0 0 AM74190 U *** *** 17
07836264 SHF 90 217 10 0 AM74170 U *** *** 17
07836267 SHF 87 217 1 0 AM79287 B *** *** 17
07836902 SHF 90 217 4 0 AM74190 U *** *** 17
07836903 SHF 90 217 1 0 AM74190 U *** *** 17
07837420 SHAFT 93 217 135 0 AM03402 U *** *** 17
07837840 SHF 95 217 302 0 AM97600 B *** *** 17
07837951 SHF 90 217 3 0 AM74190 U *** *** 17
07838665 YOKE 94 217 4501 0 AM87555 B *** *** 17
07838751 SHF 89 217 0 0 AM97409 U *** *** 17
07838752 SHF 90 217 1 0 AM74190 U *** *** 17
07838754 SHF 90 217 8 0 AM70394 U *** *** 17
</TABLE>
<PAGE>
EXHIBIT C
Productive Material
Supply Schedule
<PAGE>
<TABLE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
THREE RIVERS PLANT
(Price to be reduced by ***%)
*** BUDGET
P/N DESCRIPTION PRICE
<S> <C> <C>
0005087 PLASTIC, NYLON BLUE ***
3663239 RETAINER, SEAL ***
3714195 RETAINER, CENTER SUPPO ***
3714559 PLUG, U/JT YOKE DUST ***
3721973 RING, RETAINING ***
3870700 LABEL IDENTIFICATION ***
3930780 PLUG, DUST ***
3975547 RETAINERS, SPIDER+BEA ***
3990290 SHIELD, DUST PROP. SHA ***
5672924 RING, RETAINING ***
5676981 ROLLER, UNIVERSAL JOIN ***
5676984 WASHER, BEARING ***
5676990 RETAINER, UNIVERSAL JO ***
5679927 WASHER, SEAL ***
7810083 RETAINER, SPIDER + BEA ***
7811185 PLUG, SLIP YOKE ***
7814642 PLUG, SLIP YOKE ***
7815592 TUBE, PROTECTOR ***
7815729 TUBE, PROPELLER SHAFT ***
7816300 SHAFT FORG. EXTL SPLIN ***
7817532 WASHER, BEARING ***
7817534 ROLLER, U/JT BEARING ***
7819229 RING, RETAINING ***
7825639 TUBE, PROPELLER SHAFT ***
7827583 SHAFT, EXTERNAL SPLINE ***
7827942 SEAL, SLIP SPLINE ***
7828419 SLEEVE, SLIP YOKE ***
7829535 RETAINER, PROP SHAFT B ***
7829539 SUPPORT, CENTER SEARIN ***
7831084 LABEL CHART, IDENTIFIC ***
7831321 CUSHION, CENTER SUPPOR ***
7833830 WEIGHT, BALANCE PROP S ***
7834169 TUBE, PROTECTOR ***
7834378 SEAL, UNIVERSAL JOINT ***
7834379 WASHER, SEAL ***
7834381 RETAINER, UNIVERSAL JO ***
7834383 SPIDER FORGING, UNIV. ***
7835419 YOKE FORGING, WELD ***
7835921 TUBE, PROPELLER SHAFT ***
7837170 RETAINER, BEARING ***
7838313 YOKE FORGING, WELD ***
7838318 YOKE FORGING, WELD ***
7838667 YOKE, SLIP (CASTING) ***
7838668 YOKE, SLIP (CASTING) ***
7838795 YOKE CASTING, SLIP ***
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
THREE RIVERS PLANT
(Price to be reduced by ***%)
*** BUDGET
P/N DESCRIPTION PRICE
<S> <C> <C>
7839003 RETAINER, CENTER SUPPO ***
7839004 DEFLECTOR, CENTER VEAR ***
7841480 TUBE, PROPELLER SHAFT ***
7841481 TUBE, PROPELLER SHAFT ***
7841483 TUBE, PROPELLER SHAFT ***
7842223 TUBE, PROPELLER SHAFT ***
7843218 FITTING, SIGHT SERRATE ***
7845095 DAMPER ASM, U/J HUB & ***
7845097 YOKE, SLIP (CASTING) ***
7847004 PLUG, SLIP YOKE ***
7848545 YOKE, SLIP (CASTING) ***
7848557 YOKE CATING, SLIP ***
7848639 YOKE, SLIP (CASTING) ***
7848645 YOKE, SLIP (CASTING) ***
7848938 TUBE, PROTECTOR ***
7849259 TUBE ASM, LINER & ***
7849886 RING, RACE RETAINING ***
7849888 SEAL O-RING ***
7849997 TUBE, PROPELLER SHAFT ***
26002090 TUBE, PROPELLER SHAFT ***
26002091 TUBE, PROPELLER SHAFT ***
26002095 YOKE FORGING, WELD ***
26002101 TUBE ASM, LINER & ***
26003060 TUBE, PROPELLER SHAFT ***
26005719 YOKE, WELD (FORGING) ***
26006729 TUBE, PROP SHAFT ***
26008268 FLANGE, U/JOINT YOKE ***
26008725 TUBE, PROP SHAFT ***
26008849 ROLLER, UNIV JOINT BEA **
26008853 TUBE, PROPELLER SHAFT ***
26008855 YOKE ASM, SLIP ***
26009215 CAP, PROTECTOR ***
26009255 SPIDER, U/JT (FORGING) ***
26010409 WASHER, BEARING ***
26010422 SEAL ASM, UNIVERSAL JO ***
26010913 TUBE, PROP SHAFT ***
26010914 TUBE, PROP SHAFT ***
26010916 TUBE, PROP SHAFT ***
26012554 WASHER, THRUST ***
26012678 TUBE, PROP SHAFT ***
26012749 SPEC, MATL (GREAS POL ***
26013280 YOKE, SLIP ***
26013603 JOINT ASM, FLANGED C/G ***
26013607 RETAINER, BALL & SEAL ***
26013609 RING, SEAL RETAINING ***
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
THREE RIVERS PLANT
(Price to be reduced by ***%)
*** BUDGET
P/N DESCRIPTION PRICE
<S> <C> <C>
26013846 TUBE, PROP SHAFT ***
26015296 TUBE, PROP SHAFT ***
26015326 TUBE, PROPELLER SHAFT ***
26015329 TUBE, PROPELLER SHAFT ***
26015679 TUBE, PROPELLER SHAFT ***
26015680 TUBE, PROPELLER SHAFT ***
26016078 TUBE, PROPELLER SHAFT ***
26016079 TUBE, PROPELLER SHAFT ***
26016080 TUBE, PROPELLER SHAFT ***
26016222 TUBE, PROPELLER SHAFT ***
26020151 TUBE, PROP SHAFT ***
26021490 TUBE, PROP SHAFT ***
26021491 TUBE, PROP SHAFT ***
26022121 SEAL AWD C/G JOINT ***
26025188 TUBE, PROPELLER SHAFT ***
26026261 TUBE, PROPELLER SHAFT ***
26026451 TUBE, PROPELLER SHAFT ***
26027456 TUBE, PROPELLER SHAFT ***
26027473 TUBE, PROP SHAFT ***
26027480 DEFLECTOR, CG JOINT ***
26028095 TUBE ASM, PROP SHAFT ***
26028534 TUBE, PROPELLER SHAFT ***
26028785 TUBE, PROPELLER SHAFT ***
26029759 BEARING, U/JT (BLANK) ***
26031367 BEARING, U/JT (BLANK) ***
26031547 BUSHING, SHIFT TUBE ***
26031934 BEARING, U/JT (BLANK) ***
26032405 BEARING ASM, BALL ***
26032908 SPIDER, U/JT (FORGING) ***
26032909 SPIDER, U/JT (FORGING) ***
26033432 CLAMP, SEAL RETAINING ***
26034719 LABEL IDENTIFICATION ***
26035182 JOINT, FLANGED C/G ASM ***
26035187 TUBE ASM, PROP SHAFT ***
26035528 TUBE ASM, PROP SHAFT ***
26035683 LABEL IDENTIFICATION ***
26035686 LABEL IDENTIFICATION ***
26035687 LABEL IDENTIFICATION ***
26035688 LABEL IDENTIFICATION ***
26035689 LABEL IDENTIFICATION ***
26035691 LABEL IDENTIFICATION ***
26035733 LABEL IDENTIFICATION ***
26035735 LABEL IDENTIFICATION ***
26035736 LABEL IDENTIFICATION ***
26035748 LABEL IDENTIFICATION ***
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
THREE RIVERS PLANT
(Price to be reduced by ***%)
*** BUDGET
P/N DESCRIPTION PRICE
<S> <C> <C>
26035749 LABEL IDENTIFICATION ***
26035751 LABEL IDENTIFICATION ***
26035752 LABEL IDENTIFICATION ***
26035753 LABEL IDENTIFICATION ***
26035754 LABEL IDENTIFICATION ***
26035755 LABEL IDENTIFICATION ***
26035756 LABEL IDENTIFICATION ***
26035757 LABEL IDENTIFICATION ***
26035758 LABEL IDENTIFICATION ***
26035759 LABEL IDENTIFICATION ***
26035760 LABEL IDENTIFICATION ***
26035761 LABEL IDENTIFICATION ***
26035762 LABEL IDENTIFICATION ***
26035763 LABEL IDENTIFICATION ***
26035764 LABEL IDENTIFICATION ***
26035765 LABEL IDENTIFICATION ***
26035766 LABEL IDENTIFICATION ***
26035767 LABEL IDENTIFICATION ***
26035768 LABEL IDENTIFICATION ***
26035770 LABEL IDENTIFICATION ***
26035772 LABEL IDENTIFICATION ***
26035774 LABEL IDENTIFICATION ***
26035776 LABEL IDENTIFICATION ***
26035779 LABEL IDENTIFICATION ***
26035780 LABEL IDENTIFICATION ***
26035938 JOINT ASM, CROSS GROOV ***
26036478 STUB, PROP SHAFT SPLINE ***
26036682 SEAL O-RING ***
26036726 SUPPORT ASM, CENTER BE ***
26036729 CUSHION, CENTER SUPPOR ***
26036769 BRG ASM, BALL ***
26036770 RETAINER, BALL & SEAL ***
26036827 TUBE, PROP SHAFT ***
26037015 LABEL IDENTIFICATION ***
26037016 LABEL IDENTIFICATION ***
26037017 COUPLING, SPLINED ***
26037041 TUBE ASM, PROP SHAFT ***
26037471 ADAPTER, SUPPORT MOUNT ***
26038040 DAMPER ASM, TUBE & ***
26002968-M3 SHAFT ASM, PIN & STRG ***
26032698-MA BRG ASM, PROP SHAFT SU ***
26035940-MA SHAFT ASM, PROP (FRONT ***
26035942-MA SHAFT ASM, PROP (REAR) ***
26036728-MA BRG ASM, PROP SHAFT SU ***
3949011-MA SPIDER, UNIVERSAL JOIN ***
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
THREE RIVERS PLANT
(Price to be reduced by ***%)
*** BUDGET
P/N DESCRIPTION PRICE
<S> <C> <C>
8934392-MA SPIDER, UNIVERSAL JOINT ***
7848260-MA REINFORCEMENT, FLEX CO ***
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
00077780 *** PAINT ISUZU 517-OIL, PAINT, GREASE DURAKO
00264212 *** PLUG T/R EN 502-STAMPINGS-SMALL WASHERS
00328144 *** SEAL RETAIN 512-RUBBER TRUFORM
00335210 *** SUPB I/L 545-FORGINGS-HOT/COLD TRW-CAN
00344165 *** WASHER-SIDE 502-STAMPINGS-SMALL PRESTIGE
00344171 *** LOCK AXLE S 502-STAMPINGS-SMALL ALSTAT
00357546 *** IDLER LEVER 505-FORGINGS-COLD HEADED BRAFCO
00378242 *** RELAY ROD F 555-FORGINGS-AFFILIATED NDH-TON
00378345 *** SOCKET MCH 555-FORGINGS-AFFILIATED NDH-TON
00378346 *** SOCKET MCH 555-FORGINGS-AFFILIATED NDH-TON
00393132 *** SCREW DIFF 501-FASTENERS RING
00444788 *** PLUG FILLER 501-FASTENERS GEN-PLUG
00457233 *** BEARING TIM 508-BEARINGS TIMKEN
00458202 *** LOCKET MCH 555-FORGINGS-AFFILIATED NDH-TON
00517900 *** WASHER PIN 502-STAMPINGS-SMALL PROG-STP
00549989 *** BRKT SPRG S 502-STAMPINGS-SMALL VENCO
00551596 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551597 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551598 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551599 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551600 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551601 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551602 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551603 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551604 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551605 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551606 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551607 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551608 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551609 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551610 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551611 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551612 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551613 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551614 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551615 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00551616 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00555475 *** TUBE FLG S- 502-STAMPINGS-SMALL HS-AMH
00558913 *** CASE 3:23 & 504-FERROUS CASTINGS CF-D
00558976 *** STEEL PIN G 540-PROCESSED PARTS RES-CANT
00559079 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00559080 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00559081 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00559082 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
00559089 *** SHIM PIN .0 502-STAMPINGS-SMALL AMG
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
00559090 *** SHIM PIN 0 502-STAMPINGS-SMALL AMG
00559091 *** SHIM PIN 0 502-STAMPINGS-SMALL AMG
00559092 *** SHIM PIN 0 502-STAMPINGS-SMALL AMG
00559093 *** SHIM PIN 0 502-STAMPINGS-SMALL AMG
00559345 *** WASHER-DIFF 502-STAMPINGS-SMALL BRIGHTON
00560138 *** SCRAP92 R/G 555-FORGINGS-AFFILIATED NDH-TON
00560140 *** SCRAP92 PIN 555-FORGINGS-AFFILIATED NDH-DET
00563394 *** SIDE GEAR A 555-FORGINGS-AFFILIATED NDH-TON
00563592 *** BOLT CARR C 501-FASTENERS RING
00599239 *** PLUG T/R EN 502-STAMPINGS-SMALL WASHERS
00599248 *** SPRG T/R 509-SPRINGS DUDEK
00718237 *** PIT ARM GM 505-FORGING-COLD HEADED BRAFCO
00718522 *** PIT ARM GM 545-FORGING-HOT/COLD FED-DROP
00718523 *** PIT ARM GM 505-FORGINGS-COLD HEADED BRAFCO
00718524 *** PIT ARM GMT 505-FORGINGS-COLD HEADED BRAFCO
01235137 *** BOLT WHEEL 501-FASTENERS FEDRL-BR
01236317 *** VENT PLUG 516-PLASTIC PARTS DANCO
01241002 *** WEIGHT BALA 502-STAMPINGS-SMALL WASHERS
01249146 *** DRUM BRK F 504-FERROUS CASTINGS CF-D
01255495 *** DRUM LINER 504-FERROUS CASTINGS WHLND
01255496 *** ALUM DRUM 540-PROCESSED PARTS GANTON-P
01257145 *** WEIGHT WHL 503-MACHINED PARTS PERF-E
01359514 *** WEIGHT WHL 522-BRAKE STAMPINGS PROG-STP
01387739 *** WEIGHT WHL 522-BRAKE STAMPINGS PROG-STP
03689017 *** LUBE-GM 453 517-OIL, PAINT, GREASE AM-LUB
03699520 *** CEMENT 517-OIL, PAINT, GREASE CRAMER
03708896 *** SEAT TR BAL 505-FORGINGS-COLD HEADED ZIEGLER
03793582 *** PLUG T/R EN 502-STAMPINGS-SMALL WASHERS
03793585 *** SPRG SEAT 502-STAMPINGS-SMALL BRIGHTON
03818764 *** SCREW 7/16- 501-FASTENERS RING
03819415 *** DEFLECT PIN 502-STAMPINGS-SMALL ALSTAT
03829451 *** PIT ARM SR 555-FORGINGS-AFFILIATED NDH-TON
03854823 *** SEAL BALLS 512-RUBBER TRUFORM
03855946 *** SCRAP91 SLV 540-PROCESSED PARTS PRC STUD
03858700 *** BOLT 501-FASTENERS RING
03858703 *** CAP DIFF BR 504-FERROUS CASTINGS WAGNER-C
03878974 *** PIN FLG 504-FERROUS CASTINGS CENTFDY-
03879210 *** PIN FLG 504-FERROUS CASTINGS CENTFDY-
03880987 *** HUB 504-FERROUS CASTINGS AMCAST
03889226 *** RUBBER BUSH 512-RUBBER TRUFORM
03894701 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894702 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894703 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894704 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894705 *** SHIM CARR 503-MACHINED PARTS SPARTA
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
03894706 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894707 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894708 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894709 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894710 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894711 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894712 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894713 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894714 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894715 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894716 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894717 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894718 *** SHIM CARR 503-MACHINED PARTS SPARTA
03894719 *** SHIM CARR 503-MACHINED PARTS SPARTA
03941724 *** SEAL RLY RO 512-RUBBER IPC
03952707 *** RELAY ROD S 545-FORGINGS-HOT/COLD TRW-CAN
03953221 *** RELAY ROD S 555-FORGINGS-AFFILIATED NDH-TON
03954320 *** CLIP PIPE 522-BRAKE STAMPINGS CAN-FAN
03978101 *** PIT ARM H P 555-FORGINGS-AFFILIATED NDH-TON
03980406 *** BOLT FT WHL 501-FASTENERS RING
03983037 *** NUT SPECIA 501-FASTENERS MACLEAN
03985936 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985937 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985942 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985943 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985952 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985953 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985960 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985961 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985968 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03985977 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03987413 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03987415 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03987416 *** SHIM CARR 503-MACHINED PARTS PRC STUD
03996119 *** PIN FLG 504-FERROUS CASTINGS CENTFDY-
05671313 *** PLUG T/R EN 502-STAMPINGS-SMALL WSHERS
05672910 *** SPRG SEAT 502-STAMPINGS-SMALL BRIGHTON
05676424 *** PLASTIC BUS 516-PLASTIC PARTS NIAGARA
05676425 *** RUBBER BUSH 512-RUBBER YALERBR
05676452 *** SPRG T/R 509-SPRINGS QUALSPRG
05677335 *** SEAT BALL S 505-FORGINGS-COLD HEADED ZIEGLER
05678374 *** RUBBER BUSH 512-RUBBER TRUFORM
05679975 *** RUBBER BUSH 512-RUBBER TRUFORM
05693027 *** SEAL ASY 512-RUBBER IPC-S
05693125 *** SEAL ASY 512-RUBBER IPC-S
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
05697839 *** RUBBER BUSH 512-RUBBER OHIO RUB
05697840 *** SEAL ASY T- 512-RUBBER TRUFORM
05699215 *** SEAL D-Z 512-RUBBER TRUFORM
06259993 *** PIT ARM MOB 505-FORGINGS-COLD HEADED BRAFCO
06260677 *** SUPT I/L 545-FORGINGS-HOT/COLD TRW-CAN
06270308 *** PLASTIC BUS 516-PLASTIC PARTS TRIANGLE
06270309 *** PLUG 502-STAMPINGS-SMALL SENECA
06270318 *** STUD T/R BA 505-FORGINGS-COLD HEADED FEDRL-BR
06271487 *** PIT ARM MOB 505-FORGINGS-COLD HEADED BRAFCO
06272424 *** PIT ARM C T 545-FORGINGS-HOT/COLD OMNI
07451785 *** BEARING 508-BEARINGS HYATT
07800970 *** PLASTIC BUS 516-PLASTIC PARTS NIAGARA
07805916 *** PIT ARM FRG 545-FORGINGS-HOT/COLD LAKEVIEW
07816248 *** STUD T/R BA 505-FORGING-COLD HEADED FEDRL-BR
07816903 *** SEAT BALL D 505-FORGING-COLD HEADED ZIEGLER
07816904 *** SPRG D-Z 509-SPRINGS QUAL SPRG
07816936 *** SEAL T/R SO 512-RUBBER TRUFORM
07816937 *** SEAL T/R SO 512-RUBBER TRUFORM
07818095 *** PLUG STRG R 502-STAMPINGS-SMALL BRIGHTON
07818096 *** PLUG STRG R 502-STAMPINGS-SMALL BRIGHTON
07818149 *** STUD PIVOT 505-FORGINGS-COLD HEADED SAG-STRG
07819393 *** PLUG SOCKET 502-STAMPINGS-SMALL HAMLIN
07819394 *** SEAT BALL 505-FORGINGS-COLD HEADED ZIEGLER
07819395 *** SPRG SEAT E 502-STAMPINGS-SMALL BRIGHTON
07819396 *** SPRG SOCKET 509-SPRINGS OMTOTEK
07826228 *** PIT ARM B P 505-FORGING-COLD HEADED BRAFCO
07826315 *** PIT ARM B O 545-FORGINGS-HOT/COLD IMPACT
07826389 *** IDLER LEV B 555-FORGINGS/AFFILIATED SAG-STRG
07826437 *** CLAMP T/R 502-STAMPINGS-SMALL SCHAFF
07826612 *** PIT ARM C&D 505-FORGINGS-COLD HEADED IMPACT
07827669 *** PIN FLG 504-FERROUS CASTINGS COLUMBUS
07827718 *** DEFLECT PIN 502-STAMPINGS-SMALL REGAL
07828084 *** SEAL T/R SO 512-RUBBER IPC-M
07828243 *** STUD T/R E 505-FORGINGS-COLD HEADED SAG-STRG
07828340 *** RELAY ROD B 555-FORGINGS-AFFILIATED NDH-TON
07828341 *** RELAY ROD C 555-FORGINGS-AFFILIATED NDH-TON
07828342 *** RELAY ROD C 555-FORGINGS-AFFILIATED NDH-TON
07828416 *** WEIGHT BALA 502-STAMPINGS-SMALL SENECA
07828432 *** RELAY ROD A 555-FORGINGS-AFFILIATED NDH-TON
07828446 *** CLAMP T/R 502-STAMPINGS-SMALL REICHERT
07828464 *** PIT ARM MC 505-FORGINGS-COLD HEADED IMPACT
07828534 *** WEIGHT BALA 502-STAMPINGS-SMALL PALMER
07828949 *** BOLT 501-FASTENERS FEDRL-BR
07829901 *** STEEL SLV A 540-PROCESSED PARTS LTV-CLEV
07830526 *** PLASTIC BUS 516-PLASTIC PARTS NIAGARA
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
07830527 *** RUBBER REST 512-RUBBER TRUFORM
07830530 *** PLUG T-TRK 502-STAMPINGS-SMALL BRIGHTON
07830534 *** SOCKET FORG 555-FORGINGS-AFFILIATED NDH-TON
07830535 *** PLUG SOCKET 502-STAMPINGS-SMALL BRIGHTON
07830538 *** SOCKET FORG 555-FORGINGS-AFFILIATED NDH-TON
07830544 *** PIT ARM FRG 545-FORGINGS-HOT/COLD LAKEVIEW
07831290 *** STUD T-TRK 505-FORGINGS-COLD HEADED SAG-STRG
07832762 *** STUD B R/R 505-FORGINGS-COLD HEADED SAG-STRG
07832763 *** STUD B&F R/ 505-FORGINGS-COLD HEADED SAG-STRG
07832779 *** STUD D-Z IN 505-FORGINGS-COLD HEADED SAG-STRG
07832781 *** STUD F R/R 505-FORGINGS-COLD HEADED SAG-STRG
07833115 *** STUD C-K P/ 505-FORGINGS-COLD HEADED SAG-STRG
07833118 *** STUD T/R E 505-FORGINGS-COLD HEADED SAG-STRG
07833226 *** STUD B&F T/ 505-FORGINGS-COLD HEADED FEDRL-BR
07833586 *** STUD D-Z OU 505-FORGINGS-COLD HEADED SAG-STRG
07834501 *** IDLER LEV T 504-FERROUS CASTINGS WAGNER-C
07834613 *** SEAL I/L SU 512-RUBBER TRUFORM
07834681 *** PROCESSORS 540-PROCESSED PARTS LINDBERG
07835786 *** RELAY ROD A 555-FORGINGS-AFFILIATED NDH-TON
07836715 *** IDLER LEV F 555-FORGINGS-AFFILIATED SAG-STRG
07836716 *** PROCESSORS 540-PROCESSED PARTS LINDBERG
07836737 *** PIT ARM F Z 505-FORGINGS-COLD HEADED IMPACT
07838357 *** LUBE - 5% TE 517-OIL PAINT, GREASE KENDALL
07838716 *** RELAY ROD F 555-FORGINGS-AFFILIATED NDH-TON
07838718 *** RELAY ROD F 555-FORGINGS-AFFILIATED NDH-TON
07838930 *** PIT ARM F P 545-FORGINGS-HOT/COLD N-VERNON
07842100 *** IDLER ARM F 505-FORGINGS-COLD HEADED BRAFCO
07842586 *** ZERK 90% SE 503-MACHINED PARTS LINC
07843699 *** PROCESSORS 540-PROCESSED PARTS LINDBERG
07843701 *** IDLER LEV M 504-FERROUS CASTINGS COLUMBUS
07843702 *** PROCESSORS 540-PROCESSED PARTS LINDBERG
07845431 *** ROD-CONN FO 555-FORGINGS-AFFILIATED NDH-TON
07847363 *** ZERK 90% 503-MACHINED PARTS LINC
07847659 *** PROCESSORS 540-PROCESSED PARTS LINDBERG
07848425 *** ZERK FITTIN 503-MACHINED PARTS LINC
07849549 *** STUD C-K OU 505-FORGINGS-COLD HEADED SAG-STRG
07849766 *** SOCKET CK 1 555-FORGINGS-AFFILIATED NDH-TON
07849770 *** PIT ARM CK 545-FORGINGS-HOT/COLD OMNI
07849771 *** PIT ARM CK 505-FORGINGS-COLD HEADED OMNI
07849801 *** NUT HEX 501-FASTENERS IND-AUTO
08905563 *** CLIP CONNEC 502-STAMPINGS-SMALL PIONEER
09414034 *** NUT HEX 501-FASTENERS INFASCO
09417785 *** BEARING TIM 508-BEARINGS TIMKEN-C
09417786 *** RACE TIMKEN 508-BEARINGS TIMKEN-C
09417901 *** ZERK FITTIN 503-MACHINED PARTS LINC
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
09418843 *** NUT HEX SL 501-FASTENERS TOWN-ROB
09420096 *** RACE TIMKEN 508-BEARINGS TIMKEN
09422297 *** NUT FLG/PL 501-FASTENERS INFASCO
09440234 *** BERING WHE 508-BEARINGS TORR
09590475 *** BOLT WHEEL 501-FASTENERS FEDRL-BR
09590476 *** BOLT WHL IS 501-FASTENERS RING
09590477 *** NUT BRK DR 501-FASTENERS INFASCO
09591982 *** BOLT WHEEL 501-FASTENERS RING
09783762 *** NUT PROP S 501-FASTENERS IND-AUTO
09784858 *** PUSH NUT 501-FASTENERS PALNUT
09785792 *** SPACER PIN 503-MACHINED PARTS WAGNER
09985038 *** LUBE - #330 517-OIL PAINT, GREASE SUNOIL
10000028 *** BRKT BUMPTER 502-STAMPINGS-SMALL GMOSH
10001677 *** BRK LCA? 502-STAMPINGS-SMALL ACTIVE
10001678 *** BRK LCA 502-STAMPINGS-SMALL ACTIVE
10015222 *** BRK LCA? 502-STAMPINGS-SMALL AGSIMP
10015223 *** BRK LCA? 502-STAMPINGS-SMALL AGSIMP
10015224 *** BRKT SADDLE 502-STAMPINGS-SMALL ELRAE
10018102 *** REINFORCEME 502-STAMPINGS-SMALL AGSIMP
10019351 *** BRKT SPRG F 502-STAMPINGS-SMALL HS-MIL
10020449 *** BRKT ASY F 502-STAMPINGS-SMALL AGSIMP
10456115 *** SENSOR ASY 524-DEVICES REMY
11500208 *** WASHER LOCK 501-FASTENERS MELLOWES
11500760 *** NUT 501-FASTENERS INFASCO
11501079 *** NUT CRIMP 501-FASTENERS INFASCO
11502737 *** PUSH NUT 501-FASTENERS PALNUT
11503805 *** SPRG&SCREW 509-SPRINGS RING
11504110 *** NUT HEX 501-FASTENERS INFASCO
11505530 *** NUT METRIC 501-FASTENERS INFASCO
14000108 *** STEEL SW A 540-PROCESSED PARTS LTV-CLEV
14000547 *** STUD GTRK 505-FORGINGS-COLD HEADED FEDRL-BR
14000551 *** STUD GTRK 505-FORGINGS-COLD HEADED FEDRL-BR
14000552 *** NUT SPECIA 501-FASTENERS INFASCO
14024107 *** SEAL T/R SO 512-RUBBER TRUFORM
14030328 *** RING GEAR 555-FORGINGS-AFFILIATED NDH-TON
14030329 *** RING GEAR 555-FORGINGS-AFFILIATED NDH-TON
14030330 *** PINION 555-FORGINGS-AFFILIATED SAG-DET
14030331 *** PINION 555-FORGINGS-AFFILIATED SAG-DET
14030349 *** TUBE S RAW 507-TUBING STELCO-W
14030362 *** SCRAP92 R/G 555-FORGINGS-AFFILIATED NDH-TON
14030363 *** SCRAP92 PIN 555-FORGINGS-AFFILIATED SAG-DET
14032655 *** RELAY ROD H 540-PROCESSED PARTS LINDBERG
14032660 *** SOCKET MCH 555-FORGINGS-AFFILIATED NDH-TON
14032661 *** PIT ARM TRU 505-FORGINGS-COLD HEADED BRAFCO
14032664 *** SUPT I/L 545-FORGINGS-HOT/COLD TRW-CAN
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
14032666 *** IDLER LEV T 504-FERROUS CASTINGS WAGNER-C
14032667 *** PLASTIC BEA 516-PLASTIC PARTS TRIANGLE
14032668 *** PLUG 502-STAMPINGS-SMALL SENECA
14032669 *** RELAY ROD G 555-FORGINGS-AFFILIATED NDH-TON
14035367 *** TUBE T RAW 507-TUBING STELCO-W
14035665 *** SCRAP92 R/G 555-FORGINGS-AFFILIATED NDH-TON
14035666 *** SCRAP92 PIN 555-FORGINGS-AFFILIATED SAG-DET
14041514 *** RELAY ROD T 545-FORGINGS-HOT/COLD TRW-CAN
14041518 *** SOCKET T-TR 555-FORGINGS-AFFILIATED NDH-TON
14041663 *** RELAY ROD S 555-FORGINGS-AFFILIATED NDH-TON
14042467 *** RELAY ROD P 555-FORGINGS-AFFILIATED NDH-TON
14045694 *** RELAY ROD R 555-FORGINGS-AFFILIATED NDH-TON
14045696 *** IDLER LEV T 504-FERROUS CASTINGS WAGNER-C
14047252 *** BRKET SPRG S 502-STAMPINGS-SMALL S&Z
14049528 *** STUD T TRU 505-FORGINGS-COLD HEADED FEDRL-BR
14055767 *** PIT ARMS S M 545-FORGINGS-HOT/COLD N-VERNON
14055970 *** CLIP BRK CA 522-BRAKE STAMPINGS CAR
14056110 *** PINION 9 555-FORGINGS-AFFILIATED SAG-DET
14056111 *** RING GEAR 9 555-FORGINGS-AFFILIATED NDH-TON
14056196 *** SCRW LS RE 501-FASTENERS RING
14056297 *** VENT PLUG M 503-MACHINED PARTS GREEN
14056826 *** RELAY ROD M 545-FORGINGS-HOT/COLD MET-FG
14062917 *** PIT RM T T 545-FORGINGS-HOT/COLD LAKEVIEW
14064660 *** PIT ARM K T 505-FORGINGS-COLD HEADED IMPACT
14066913 *** BOLT RING G 501-FASTENERS RING
14072930 *** VENT PLUG 503-MACHINED PARTS GREEN
14074827 *** TUBE LH RAW 507-TUBING STANDARD
14074828 *** TUBE RH RAW 507-TUBING STANDARD
14074857 *** TUBE/FLG M 502-STAMPINGS-SMALL HS-MIL
14074862 *** DRUM BRK M 504-FERROUS CASTINGS WHLND
14074904 *** PIT ARM M P 505-FORGINGS-COLD HEADED BRAFCO
14074905 *** PIT ARM M R 545-FORGINGS-HOT/COLD N-VERNON
14085337 *** RING GR 13: 555-FORGINGS-AFFILIATED NDH-TON
14085338 *** RING GR 13: 555-FORGINGS-AFFILIATED NDH-TON
14085339 *** RING GR 12: 555-FORGINGS-AFFILIATED NDH-TON
14085342 *** PINION 13:4 555-FORGINGS-AFFILIATED SAG-DET
14085343 *** PINION 13:4 555-FORGINGS-AFFILIATED SAG-DET
14085344 *** PINION 12:4 555-FORGINGS-AFFILIATED SAG-DET
14085387 *** CASE 3:23&U 504-FERROUS CASTINGS CF-D
14085388 *** CASE 3:08DW 504-FERROUS CASTINGS CF-D
14092112 *** PINION 11:4 555-FORGINGS-AFFILIATED SAG-DET
14092169 *** RING GR 15: 555-FORGINGS-AFFILIATED NDH-TON
14105659 *** PINION 15:4 555-FORGINGS-AFFILIATED SAG-DET
15530363 *** PIT ARM P T 545-FORGINGS-HOT/COLD IMPACT
15568010 *** RELAY ROD U 545-FORGINGS-HOT/COLD TRW-CAN
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
15568342 *** CABLE ASYR 528 ASSEMBLIES-BRAKE RELATED DOM-CHN
15588206 *** BRKT SHOCK 502-STAMPINGS-SMALL AGSIMP
15590776 *** NUT CRIMP 501-FASTENERS IND-AUTO
15595962 *** PIT ARM S P 505-FORGINGS-COLD HEADED BRAFCO
15595964 *** PIT ARM T-T 545-FORGINGS-HOT/COLD CMNI
15597979 *** PIT ARM P T 545-FORGINGS-HOT/COLD IMPACT
15598550 *** RELAY ROD T 545-FORGINGS-HOT/COLD TRW-CAN
15598983 *** BOLT CARR C 501-FASTENERS RING
15614005 *** CABLE ASY M 528 ASSEMBLIES-BRAKE RELATED ORSCHELN
15614984 *** CABLE ASY M 528 ASSEMBLIES-BRAKE RELATED DOM-CHN
15630744 *** CUP BRK CA 522-BRAKE STAMPINGS DAJACO
15651267 *** PIT ARM GMT 545-FORGING-HOT/COLD POWERS
15654075 *** CABLE ASY T 528 ASSEMBLIES-BRAKE RELATED ORSCHELN
15654076 *** CABLE ASY R 528 ASSEMBLIES-BRAKE RELATED ORSCHELN
15654077 *** CABLE ASY S 528 ASSEMBLIES-BRAKE RELATED ORSCHELN
15672603 *** PIT ARM MOB 545-FORGING-HOT/COLD POWERS
15674855 *** CABLE ASY L 528 ASSEMBLIES-BRAKE RELATED DOM-CHN
15679719 *** SENSOR ASY 528 ASSEMBLIES-BRAKE RELATED KELSEY
15679720 *** SENSOR ASY 528 ASSEMBLIES-BRAKE RELATED KELSEY
15679722 *** SENSOR ASY 528 ASSEMBLIES-BRAKE RELATED KELSEY
15679733 *** DRUM BRK M 540-PROCESSED PARTS SCHAFF-P
15679992 *** PIT ARM MOB 545-FORGING-HOT/COLD POWERS
15680002 *** PIT ARM P T 545-FORGING-HOT/COLD POWERS
15689587 *** DRUM PAINTE 540-PROCESSED PARTS SCHAFF-P
15691848 *** PIT ARM MH 505-FORGINGS-COLD HEADED BRAFCO
15693508 *** BOLT SHOULD 501-FASTENERS RING
18014780 *** GUIDE F CAB 509-SPRINGS IND-SPRG
18014807 *** GUIDE F CAB 509-SPRINGS IND-SPRG
18017538 *** ROTOR ASY F 503-MACHINED PARTS GMSTCHATH
18017568 *** BRK ASY S-T 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18017569 *** BRK ASY S-T 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18017602 *** BRK ASY S R 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18017603 *** BRK ASY S R 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18017718 *** BRK ASY F L 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18017719 *** BRK ASY F R 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18017891 *** BRKT CAUPE 504-FERROUS CASTINGS WAGNER-C
18017892 *** BRKT CAUPE 504-FERROUS CASTINGS WAGNER-C
18018376 *** BRKT ASY L M 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18018377 *** BRKT ASY R M 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18018378 *** BRKT ASY L M 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18018379 *** BRKT ASY R M 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18018512 *** BRK ASY USP 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18018513 *** BRK ASY USP 528 ASSEMBLIES-BRAKE RELATED GMSTCHATH
18018680 *** DRUM BRK F 540-PROCESSED PARTS SCHAFF-P
18019857 *** BRKT CAL MT 540-PROCESSED PARTS WAGNER-C
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
18019858 *** BRKT CAL MT 503-MACHINED PARTS WAGNER-C
18020558 *** GUIDE F CAB 509-SPRINGS IND-SPRG
22507586 *** CRO/PIN NI/ 505-FORGINGS-COLD HEADED AT&G
22510043 *** BEARING 508-BEARINGS TIMLKEN
22510044 *** RACE 508-BEARINGS TIMKEN
22511230 *** TUBE F CAR 507-TUBING STELCO-W
22522676 *** CARRIER RAW 504-FERROUS CASTINGS GMSTCATH
22524873 *** STEEL PING 540-PROCESSED PARTS RES-CANT
25523139 *** WEIGHT WHL 522-BRAKE STAMPINGS PROG-STP
26001371 *** RELAY ROD K 545-FORGINGS-HOT/COLD TRW-CAN
26004467 *** RING GR 13 555-FORGINGS-AFFILIATED NCH-TON
26004468 *** PINION 134 555-FORGINGS-AFFILIATED SAG-DET
26004860 *** BRKT STABIL 502-STAMPINGS-SMALL MAPLE
26004863 *** TUBE RAW US 507-TUBING STELCO-W
26005898 *** IDLER LEV C 545-FORGINGS-HOT/COLD LAKEVIEW
26008784 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26008785 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26008786 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26008787 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26008788 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26008789 *** BUSHING BLA 505-FORGINGS-COLD HEADED SAG-STRG
26009057 *** RELAY ROD K 545-FORGINGS-HOT/COLD TRW-CAN
26009059 *** RELAY ROD C 545-FORGINGS-HOT/COLD TRW-CAN
26009508 *** SIDE GEARS 555-FORGINGS-AFFILIATED NDH-TON
26009534 *** AX/SHFTS 4 555-FORGINGS-AFFILIATED NDH-TON
26010268 *** AX/SHAFT DRA 540-PROCESSED PARTS SYRACUSE
26010792 *** OIL SEAL RE 512-RUBBER C-R
26010793 *** COVER DIFF 502-STAMPINGS-SMALL GMOSH
26010805 *** RING ANTI 515-POWDER METAL DUPONT
26011060 *** COVER DIFF 502-STAMPINGS-SMALL GMOSH
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26013008 *** RING GR 12: 555-FORGINGS-AFFILIATED NDH-TON
26013014 *** RING GR 15: 555-FORGINGS-AFFILIATED NDH-TON
26013015 *** PINION 15:4 555-FORGINGS-AFFILIATED SAG-DET
26013131 *** PIN FLG G/T 504-FERROUS CASTINGS COLUMBUS
26013539 *** RELAY ROD L 545-FORGINGS-HOT/COLD TRW-CAN
26013541 *** PIT ARM FRG 505-FORGINGS-COLD HEADED BRAFCO
26013796 *** STUD L VAN 505-FORGINGS-COLD HEADED SAG-STRG
26013797 *** SEAL CON RO 512-RUBBER TRUFORM
26013797 *** AX/SHFT T4 555-FORGINGS-AFFILIATED NDH-TON
26013883 *** PLUG I/LL 502-STAMPINGS-SMALL BRIGHTON
26014116 *** AX/SHFT S4W 555-FORGINGS-AFFILIATED NDH-TON
26014117 *** AX/SHFT T4W 555-FORGINGS-AFFILIATED NDH-TON
26014374 *** PIN FLG&DAM 540-PROCESSED PARTS HILLSDAL
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
26014589 *** PROCESSOR S 540-PROCESSED PARTS LINDBERG
26014590 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26014593 *** SUPT I/L L 545-FORGINGS-HOT/COLD METFG-S
26014594 *** PROCESSOR S 540-PROCESSED PARTS LINDBERG
26014595 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26014607 *** L/S 323 & 548-ASSEMBLIES-DIFFERENTIAL EATON-M
26014609 *** L/S 308 & 548-ASSEMBLIES-DIFFERENTIAL EATON-M
26014610 *** CARRIER RAW 504-FERROUS CASTINGS GMSTCATH
26014611 *** RELAY ROD F 555-FORGINGS-AFFILIATED NDH-TON
26014614 *** RELAY ROD M 555-FORGINGS-AFFILIATED NDH-TON
26014618 *** PIN FLG & D 503-MACHINED PARTS WAGNER-C
26014620 *** TUBE S RAW 507-TUBING STELCO-W
26014632 *** TUBE T RAW 507-TUBING STELCO-W
26014636 *** SOCKET B CA 555-FORGINGS-AFFILIATED NDH-TON
26014638 *** PIN 15 41ST 540-PROCESSED PARTS MET-IMP
26014653 *** PINION 154 555-FORGINGS-AFFILIATED SAG-DET
26014654 *** PIN 13 40ST 540-PROCESSED PARTS MET-IMP
26014836 *** PINION 134 555-FORGINGS-AFFILIATED SAG-DET
26014868 *** PIN 12 41ST 540-PROCESSED PARTS MET-IMP
26014869 *** PINION 124 555-FORGINGS-AFFILIATED SAG-DET
26015110 *** OIL SEAL R 512-RUBBER PRECSEAL
26015111 *** RING GR 15 555-FORGINGS-AFFILIATED NDH-TON
26015199 *** RING GR 13 555-FORGINGS-AFFILIATED NDH-TON
26015208 *** RING GR 12 555-FORGINGS-AFFILIATED NDH-TON
26015431 *** STUD SHAFT 505-FORGINGS-COLD HEADED HORIZONS
26015466 *** SPIRNG I/L 509-SPRINGS QUALSPRG
26015469 *** SEAL I/L C 512-RUBBER TRUFORM
26015470 *** WASHER I/L 516-PLASTIC PARTS NIAGARA
26016661 *** SEAT SPRG I 505-FORGINGS-COLD HEADED ROSS
26016756 *** PLUG I/L C 502-STAMPINGS-SMALL WSHERS
26017271 *** IDLER LEV C 504-FERROUS CASTINGS WAGNER-C
26017987 *** CARR CAST M 504-FERROUS CASTINGS GMSTCATH
26018168 *** AX/SHFT F D 555-FORGINGS-AFFILIATED NDH-TON
26018700 *** AX/SHFT F D 555-FORGINGS-AFFILIATED NDH-TON
26018734 *** AX/SHFT DRA 540-PROCESSED PARTS SYRACUSE
26018789 *** AX/SHFT DRA 540-PROCESSED PARTS SYRACUSE
26018857 *** SOCKET D-M 555-FORGINGS-AFFILIATED NDH-TON
26019044 *** SOCKET D FO 555-FORGINGS-AFFILIATED NDH-TON
26019045 *** SOCKET D FO 555-FORGINGS-AFFILIATED NDH-TON
26019603 *** AX/SHFT DRA 540-PROCESSED PARTS SYRACUSE
26019604 *** SOCKET S FO 555-FORGINGS-AFFILIATED NDH-TON
26019605 *** OIL SEAL WL 512-RUBBER C-R
26019606 *** OIL SEAL WH 512-RUBBER C-R
26019650 *** RING SENSOR 515-POWDER METAL ZENITH
26021270 *** AX/SHFT F D 555-FORGINGS-AFFILIATED NDH-TON
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
26022144 *** PROCESSOR S 540-PROCESSED PARTS LINDBERG
26022145 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26022154 *** SUPT I/LL 545-FORGINGS-HOT/COLD METFG-S
26022174 *** PROCESSOR S 540-PROCESSED PARTS LINDBERG
26022175 *** SUPT BLANK 555-FORGINGS-AFFILIATED SAG-STRG
26022182 *** L/S 3.23 & 548-ASSEMBLIES-DIFFFERENTIAL EATON-M
26022183 *** L/S 3.08 & 548-ASSEMBLIES-DIFFFERENTIAL EATON-M
26022184 *** CARRIER RAW 504-FERROUS CASTINGS GMSTCATH
26023554 *** RELAY ROD F 555-FORGINGS-AFFILIATED NDH-TON
26023555 *** RELAY ROD M 555-FORGINGS-AFFILIATED NDH-TON
26023588 *** PIN FLG & D 503-MACHINED PARTS WAGNER-C
26023619 *** TUBE S RAW 507-TUBING STELCO-W
26023620 *** TUBE T RAW 507-TUBING STELCO-W
26024280 *** SOCKET B CA 555-FORGINGS-AFFILIATED NDH-TON
26026777 *** PIN 15 41 ST 540-PROCESSED PARTS MET-IMP
26026777 *** PINION 15:4 555-FORGINGS-AFFILIATED SAG-DET
26026778 *** PIN 13 40ST 540-PROCESSED PARTS MET-IMP
26026778 *** PINION 13:4 555-FORGINGS-AFFILIATED SAG-DET
26026779 *** PIN 12 41 ST 540-PROCESSED PARTS MET-IMP
26026779 *** PINION 12:4 555-FORGINGS-AFFILIATED SAG-DET
26026792 *** OIL SEAL R 512-RUBBER PRECSEAL
26026833 *** RING GR 15: 555-FORGINGS-AFFILIATED NDH-TON
26026834 *** RING GR 13: 555-FORGINGS-AFFILIATED NDH-TON
26026835 *** RING GR 12: 555-FORGINGS-AFFILIATED NDH-TON
26027088 *** STUD SHAFT 505-FORGINGS-COLD HEADED HORIZONS
26027089 *** SPRING I/L 509-SPRINGS QUALSPRG
26027090 *** SEAL I/L C- 512-RUBBER TRUFORM
26027094 *** WASHER I/L 516-PLASTIC PARTS NIAGARA
26027097 *** SEAT SPRG I 505-FORGINGS-COLD HEADED ROSS
26027098 *** PLUG I/L C- 502-STAMPINGS-SMALL WASHERS
26027099 *** IDLER LEV C 504-FERROUS CASTINGS WAGNER-C
26027171 *** CARR CAST M 504-FERROUS CASTINGS GMSTCATH
26027511 *** AX/SHFT F D 555-FORGINGS-AFFILIATED NDH-TON
26027586 *** AX/SHAFT F D 555-FORGINGS-AFFILIATED NDH-TON
26027588 *** AX SHFT DRA 540-PROCESSED PARTS SYRACUSE
26027589 *** AX/SHFT DRA 540-PROCESSED PARTS SYRACUSE
26027624 *** SOCKET D-M 555-FORGINGS-AFFILIATED NDH-TON
26027627 *** SOCKET D FO 555-FORGINGS-AFFILIATED NDH-TON
26028406 *** SOCKET F FO 555-FORGINGS-AFFILIATED NDH-TON
26028692 *** AX/SHFT DRA 540-PROCESSED PARTS SYRACUSE
26028729 *** SOCKET S FO 555 FORGINGS-AFFILIATED NDH-TON
26029137 *** OIL SEAL WL 512-RUBBER C-R
26029139 *** OIL SEAL WH 512-RUBBER C-R
26029185 *** RING SENSOR 515-POWDER METAL ZENITH
26029186 *** AX/SHFT F D 555-FORGINGS-AFFILIATED NDH-TON
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
26029188 *** CARRIER RAW 504-FERROUS CASTINGS GMSTCATH
26029205 *** BRKT LCA F 502-STAMPINGS-SMALL AGSIMP
26029209 *** L/S 323 & 548-ASSEMBLIES-DIFFERENTIAL AUBURN
26029210 *** L/S 308 & 548-ASSEMBLIES-DIFFERENTIAL AUBURN
26029236 *** SOCKET S FO 555-FORGINGS-AFFILIATED NDH-TON
26030560 *** BRKT SPG SE 502-STAMPINGS-SMALL AGSIMP
26030561 *** BRKT SPG SE 502-STAMPINGS-SMALL AGSIMP
26031030 *** L/S 323 & 548-ASSEMBLIES-DIFFERENTIAL EATON-M
26031587 *** BOLT&WASHER 501-FASTENERS RING
26032114 *** P/ARM PAINT 540-PROCESSED PARTS AMCOAT
26032783 *** HSG&BUSHING 503-MACHINED PARTS WAGNER-C
26032905 *** PLUG T PAIN 540-PROCESSED PARTS AMCOAT
26033551 *** IDLER ARM M 503-MACHINED PARTS PALCO
26033553 *** SEAL ASM 512-RUBBER IPC-M
26033555 *** STUD 505-FORGINGS-COLD HEADED ROCKFORD
26033558 *** RELAY CONR 503-MACHINED PARTS PALCO
26034464 *** RLY ROD FRG 555-FORGINGS-AFFILIATED NDH-TON
26034667 *** SHIM P TUBE 502-STAMPINGS-SMALL AMG
26034960 *** WELD PLUG F 502-STAMPINGS-SMALL DECKER
26036687 *** NUT C KIDL 501-FASTENERS MACLEAN
26036755 *** L/S 323 & 548-ASSEMBLIES-DIFFERENTIAL AUBURN
26036756 *** L/S 308 & 548-ASSEMBLIES-DIFFERENTIAL AUBURN
26037124 *** BRAKE ASY R 528-ASSEMBLIES-BRAKE RELATED ISUZU
26037125 *** BRAKE ASY L 528-ASSEMBLIES-BRAKE RELATED ISUZU
26037140 *** BOLT&WASHER 501-FASTENERS RING
26037380 *** CARR GETRAG 504-FERROUS CASTINGS GMSTCATH
26037420 *** TUBE ASY L 540-PROCESSED PARTS METO-P
26037421 *** TUBE ASY R 540-PROCESSED PARTS METO-P
00NPN332 *** WELDROD 3/3 509-SPRINGS BUF-WELD
00PH0S33 *** PHOS COAT M 517-OIL PAINT, GREASE HEAT
0NPN3546 *** LABEL REAR 510-PAPER INTERMEC
ONR211MP *** WIRE IN SHI 509-SPRINGS BUF-WELD
C7811067 *** PROCESSOR B 540-PROCESSED PARTS MECH-P
L7811067 *** PROCESSOR B 540-PROCESSED PARTS LINDBERG
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
S1350005 ***
S1350027 ***
S1350048 ***
S1350051 ***
S1350074 ***
S1350076 ***
S1350094 ***
S1350097 ***
S14012696 ***
S14012793 ***
S14012794 ***
S14012795 ***
S14012796 ***
S14025325 ***
S14026702 ***
S14032660 ***
S14041518 ***
S14041663 ***
S14042467 ***
S14042620 ***
S14045694 ***
S14077942 ***
S14085337 ***
S14085338 ***
S14085339 ***
S14092169 ***
S15321887 ***
S15530279 ***
S15530280 ***
S15530281 ***
S15530282 ***
S15551436 ***
S15588326 ***
S15588327 ***
S15588328 ***
S21000891 ***
S21001009 ***
S21001012 ***
S26002095 ***
S26004467 ***
S26005719 ***
S26007557 ***
S26007559 ***
S26009255 ***
S26009508 ***
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
S26009534 ***
S26013008 ***
S26013883 ***
S26014593 ***
S26014594 ***
S26014595 ***
S26014614 ***
S26014767 ***
S26014868 ***
S26014869 ***
S26015110 ***
S26015111 ***
S26015208 ***
S26015431 ***
S26017243 ***
S26017271 ***
S26019044 ***
S26019419 ***
S26019566 ***
S26023554 ***
S26023555 ***
S26024280 ***
S26027029 ***
S26027586 ***
S26027624 ***
S26027664 ***
S26028729 ***
S26029186 ***
S26029236 ***
S26032109 ***
S26032908 ***
S26032909 ***
S26033143 ***
S26033195 ***
S26033694 ***
S26034464 ***
S26034788 ***
S26034789 ***
S26036855 ***
S26037706 ***
S26037714 ***
S26037722 ***
S26037730 ***
S352950 ***
S378345 ***
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
BUFFALO PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
S378346 ***
S3933176 ***
S3937756 ***
S3977333 ***
S3977334 ***
S3977344 ***
S3984822 ***
S3984825 ***
S3992484 ***
S3998596 ***
S458202 ***
S476522 ***
S7828340 ***
S7828342 ***
S7830334 ***
S7834383 ***
S7835418 ***
S7835419 ***
S7838313 ***
S7838313 ***
S7838318 ***
S7845431 ***
S7849766 ***
S7849767 ***
S8672362 ***
S8672363 ***
S8672364 ***
S8672365 ***
S8672366 ***
S8672367 ***
S8672368 ***
S8672369 ***
S8672370 ***
S8672371 ***
S8672622 ***
S8672623 ***
S8672624 ***
S8672627 ***
S8672631 ***
S8672634 ***
S8672644 ***
S8672600 ***
S8679848 ***
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
0001116 *** WELD WIRE 709-SPRINGS ROYSMITH
00033334 *** WELD WIRE 709-SPRINGS ROYSMITH
00033335 *** WELD WIRE 709-SPRINGS ROYSMITH
00033337 *** WELD WIRE 709-SPRINGS ROYSMITH
00044444 *** WELD ROD 709-SPRINGS ROYSMITH
00077778 *** PAINT 717-OIL, PAINT, GREASE ZIEBART
00088889 *** PAINT 717-OIL, PAINT, GREASE DURAKO
00099998 *** WELD WIRE 709-SPRINGS ROYSMITH
00103026 *** NUT 701-FASTENERS RB&W-ROC
00103320 *** LOCKWASHER 701-FASTENERS MELLOWES
00103321 *** LOCKWASHER 701-FASTENERS MELLOWES
00103324 *** LOCKWASHER 701-FASTENERS FIN DEPT
00103328 *** LOCKWASHER 701-FASTENERS MELLOWES
00103329 *** LOCKWASHER 701-FASTENERS MELLOWES
00103330 *** LOCKWASHER 701-FASTENERS MELLOWES
00113697 *** BOLT 701-FASTENERS FASTHOUS
00142223 *** RACE 708-BEARINGS TIMKEN
00186627 *** BOLT 701-FASTENERS COLD
00193221 *** BOLT 701-FASTENERS NMP MFG
00217208 *** BOLT 701-FASTENERS RINGSCRE
00231075 *** L/X SIDEDGE 755-FORGINGS-AFFILIATED SAG-BUFF
00231260 *** SPRING 709-SPRINGS WHITEHEA
00326880 *** SPL SHIELD 702-STAMPINGS HYDWRN
00327788 *** DEFLECTOR 702-STAMPINGS IROQUOIS
00328098 *** COIL SPRG 709-SPRINGS DELCO-LI
00328100 *** COIL SPRG 709-SPRINGS DELCO-LI
00328101 *** COIL SPRG 709-SPRINGS DELCO-LI
00331091 *** C/MEMBER 702-STAMPINGS MIDLAND
003314167 *** PIPE CLIP 709-SPRINGS FOURSLID
00331421 *** BOLT 701-FASTENERS ALPHA
00331422 *** BOLT 701-FASTENERS COLD
00331442 *** DRUM 704-FERROUS CASTINGS WHELAND
00331471 *** SPL SHIELD 702-STAMPINGS HSI-MILT
00331478 *** BOLT 701-FASTENERS BENDIXHY
00332803 *** REINFORCE 702-STAMPINGS IROQUOIS
00332804 *** REINFORCE 702-STAMPINGS IROQUOIS
00332853 *** REINFORCE 702-STAMPINGS HSI-MILT
00332854 *** REINFORCE 702-STAMPINGS HSI-MILT
00332983 *** REINFORCE 702-STAMPINGS TREND
00334362 *** SHIM 702-STAMPINGS AMG
00334363 *** SHIM 702-STAMPINGS AMG
00334376 *** SHIM 702-STAMPINGS AMG
00334378 *** SHIM 702-STAMPINGS AMG
00334672 *** C/MEMBER 702-STAMPINGS MIDLAND
00335675 *** SPL SHIELD 702-STAMPINGS HYDWRN
00337507 *** REINFORCE 702-STAMPINGS HSI-MILT
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
00337508 *** REINFORCE 702-STAMPINGS HSI-MILT
00337515 *** SHAFT LCA 730-MACHINED FORGINGS USM-BAD
00337516 *** SHAFT LCA 730-MACHINED FORGINGS USM-BAD
00337517 *** REINFORCE 702-STAMPINGS TREND
00337523 *** REINFORCE 702-STAMPINGS TRUMARK
00337524 *** REINFORCE 702-STAMPINGS TRUMARK
00337589 *** BTM PLT 702-STAMPINGS FREEDLAN
00337940 *** RETAINER 702-STAMPINGS PROGSTAM
00337972 *** BUSHING 712-RUBBER RUBBEREN
00341193 *** BRACKET 702-STAMPINGS HSI-AM
00341194 *** BRACKET 702-STAMPINGS HSI-AM
00341509 *** A-NUT 703-SCREW MACHINED PARTS AT&G
00341510 *** LOCK 703-SCREW MACHINED PARTS MBFETCHE
00341511 *** RETAINER 709-SPRINGS TIMMS
00343429 *** SPACER 702-STAMPINGS PALMER
00344004 *** SPRING 709-SPRINGS OMIOTEK
00345970 *** U BOLT 701-FASTENERS PEERLESS
00346893 *** REINFORCE 702-STAMPINGS BUTLER
00348200 *** VENT PLUG 703-SCREW MACHINED PARTS GREENDAL
00349427 *** BRACKET 702-STAMPINGS HSI-AM
00349428 *** BRACKET 702-STAMPINGS HSI-AM
00352982 *** HUB 704-FERROUS CASTINGS DECO
00355049 *** BRACKET 702-STAMPINGS HSI-AM
00355050 *** BRACKET 702-STAMPINGS HSI-AM
00255815 *** BOLT 701-FASTENERS PEERLESS
00357809 *** BOLT 701-FASTENERS RINGSCRE
00357837 *** HD PIN 701-FASTENERS HASSALL
00357840 *** SPRING 709-SPRINGS FANIEDER
00357841 *** CUP 722-STAMPINGS-BRAKE DAJACO
00357844 *** SPRING 709-SPRINGS DUDEK
00357847 *** LEVER 702-STAMPINGS UNIBOND
00357848 *** LEVER 702-STAMPINGS UNIBOND
00357891 *** LEVER 702-STAMPINGS UNIBOND
00360570 *** DOWELL PIN 703-SCREW MACHINED PARTS MBEETCHE
00361705 *** SHIM 702-STAMPINGS AMG
00361706 *** SHIM 702-STAMPINGS AMG
00361707 *** SHIM 702-STAMPINGS AMG
00361708 *** SHIM 702-STAMPINGS AMG
00361710 *** SHIM 702-STAMPINGS AMG
00361711 *** SHIM 702-STAMPINGS AMG
00361712 *** SHIM 702-STAMPINGS AMG
00361713 *** SHIM 702-STAMPINGS AMG
00361714 *** SHIM 702-STAMPINGS AMG
00361715 *** SHIM 702-STAMPINGS AMG
00361716 *** SHIM 702-STAMPINGS AMG
00361717 *** SHIM 702-STAMPINGS AMG
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
00361718 *** SHIM 702-STAMPINGS AMG
00361720 *** SHIM 702-STAMPINGS AMG
00361721 *** SHIM 702-STAMPINGS AMG
00363733 *** KNUCKLE ASM 729-FERROUS CASTING MACH USM-BAD
00363734 *** KNUCKLE ASM 729-FERROUS CASTING MACH USM-BAD
00363735 *** KNUCKLE ASM 729-FERROUS CASTING MACH USM-BAD
00363736 *** KNUCKLE ASM 729-FERROUS CASTING MACH USM-BAD
00363771 *** CLPR PLATE 729-FERROUS CASTING MACH BENDIXHY
00363772 *** CLPR PLATE 729-FERROUS CASTING MACH BENDIXHY
00363773 *** SPL SHIELD 702-STAMPINGS QUIGLEY
00363778 *** BALANCE WGT 702-STAMPINGS PROGSTAM
00365850 *** BOLT 701-FASTENERS RB&W-ROC
00367762 *** AIR BAG 712-RUBBER AIRLIFT
00371619 *** SHART ________ 705-FORGINGS METLFORG
00278137 *** NUT 701-FASTENERS INFASCO
00378443 *** BRACKET 702-STAMPINGS BENNETT
00378444 *** BRACKET 702-STAMPINGS BENNETT
00378445 *** BRACKET 702-STAMPINGS BENNETT
00378446 *** BRACKET 702-STAMPINGS BENNETT
00378460 *** BTM ________ 702-STAMPINGS FREEDLAN
00378463 *** L/C/ARM 702-STAMPINGS HYDWRN
00378464 *** L/C/ARM 702-STAMPINGS HYDWRN
00378476 *** REINFORCE 702-STAMPINGS PALMER
00393132 *** BOLT 701-FASTENERS RINGSCRE
00393578 *** WASHER 702-STAMPINGS AMG
00394331 *** SHIM 702-STAMPINGS AMG
00394332 *** SHIM 702-STAMPINGS AMG
00394333 *** SHIM 702-STAMPINGS AMG
00394334 *** SHIM 702-STAMPINGS AMG
00394335 *** SHIM 702-STAMPINGS AMG
00394336 *** SHIM 702-STAMPINGS AMG
00394337 *** SHIM 702-STAMPINGS AMG
00394338 *** SHIM 702-STAMPINGS AMG
00394339 *** SHIM 702-STAMPINGS AMG
00394340 *** SHIM 702-STAMPINGS AMG
00394341 *** SHIM 702-STAMPINGS AMG
00394342 *** SHIM 702-STAMPINGS AMG
00394343 *** SHIM 702-STAMPINGS AMG
00394344 *** SHIM 702-STAMPINGS AMG
00394345 *** SHIM 702-STAMPINGS AMG
00410408 *** CASE 704-FERROUS CASTINGS FIN DEPT
00410864 *** SHIM 702-STAMPINGS AMG
00410866 *** SHIM 702-STAMPINGS AMG
00410867 *** SHIM 702-STAMPINGS AMG
00410868 *** SHIM 702-STAMPINGS AMG
00410869 *** SHIM 702-STAMPINGS AMG
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
00410870 *** SHIM 702-STAMPINGS AMG
00410871 *** SHIM 702-STAMPINGS AMG
00410872 *** SHIM 702-STAMPINGS AMG
00410873 *** SHIM 702-STAMPINGS AMG
00410875 *** SHIM 702-STAMPINGS AMG
00410876 *** SHIM 702-STAMPINGS AMG
00410924 *** WASHER 702-STAMPINGS FIN DEPT
00410925 *** WASHER 702-STAMPINGS FIN DEPT
00443656 *** RIVET 701-FASTENERS BRAINARD
00444788 *** PLUG 716-PLASTIC PARTS GEN-PLUG
00454459 *** BEARING 708-BEARINGS TIMKEN
00457041 *** BEARING 708-BEARINGS TIMKEN
00457047 *** BEARING 708-BEARINGS TIMKEN
00457050 *** BEARING 708-BEARINGS TIMKEN
00457233 *** BEARING 708-BEARINGS TIMKEN
00457258 *** RACE 708-BEARINGS TIMKEN
00457707 *** WASHER 702-STAMPINGS WASHERS
00458267 *** U BOLT 701-FASTENERS PEERLESS
00458269 *** U BOLT 701-FASTENERS PEERLESS
00458270 *** U BOLT 701-FASTENERS PEERLESS
00458814 *** BRACKET 702-STAMPINGS FIN DEPT
00458819 *** BRACKET 702-STAMPINGS FIN DEPT
00464539 *** RESTRICTOR 703-SCREW MACHINED PARTS GREENDAL
00465063 *** TUBE 707-TUBING FIN DEPT
00465064 *** TUBE 707-TUBING FIN DEPT
00465065 *** YOKE 704-FERROUS CASTINGS FIN DEPT
00468677 *** STRUT 702-STAMPINGS MCINTOSH
00468731 *** REINFORCE 702-STAMPINGS BUTLER
00468732 *** REINFORCE 702-STAMPINGS BUTLER
00469694 *** SEAL 712-RUBBER FREUDNBR
00471121 *** BRACKET 702-STAMPINGS IROQUOIS
00472222 *** COIL SPRG 709-SPRINGS DELCO-LI
00473628 *** WASHER 702-STAMPINGS PALMER
00473629 *** LOCK 702-STAMPINGS DELWAL
00473636 *** NUT 703-SCREW MACHINED PARTS STDLCKNU
00474309 *** RETAINER 709-SPRINGS LOCKRING
00475516 *** HOLE COVER 709-SPRINGS NORCOAST
00476753 *** PLUG 701-FASTENERS DECKER
00480439 *** FLANGE 702-STAMPINGS IROQUOIS
00480656 *** BOLT 701-FASTENERS COLD
00484631 *** BRACKET 702-STAMPINGS PONTIAC
00500559 *** BRACKET 702-STAMPINGS MAGNA
00500560 *** BRACKET 702-STAMPINGS MAGNA
00517900 *** WASHER 702-STAMPINGS PROGSTAM
00543319 *** DEFLECTOR 702-STAMPINGS IROQUOIS
00554631 *** SEAL 712-RUBBER CHIRAW
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
00555475 *** FLANGE 702-STAMPINGS IROQUOIS
00558614 *** TUBE 707-TUBING FIN DEPT
00558615 *** TUBE ASM 707-TUBING FIN DEPT
00888888 *** PARKO LUBE 717-OIL PAINT, GREASE PARKCHEM
01234726 *** SPACER 709-SPRINGS ERWAGNER
01235137 *** BOLT 701-FASTENERS ALPHA
01237866 *** BOLT 701-FASTENERS COLD
01237867 *** BALANCE WGT 702-STAMPINGS PALCOSTM
01243067 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
01244646 *** DRUM 704-FERROUS CASTINGS WHELAND
01254537 *** CUP 722-STAMPINGS-BRAKE DAJACO
01256048 *** BALANCE WGT 702-STAMPINGS PROGSTAM
01312281 *** SPRING 709-SPRINGS QTYSPRG
01359887 *** NUT 701-FASTENERS RB&W-ROC
01363739 *** TAG LG 710-PAPER GRM
02039107 *** WASHER 702-STAMPINGS WASHERS
02622667 *** THRUST ROD 703-SCREW MACHINED PARTS DELCOMO
03314472 *** DEFLECTOR 702-STAMPINGS HSI-MILT
03685199 *** GASKET 712-RUBBER WISCONSI
03691500 *** GUIDE PLATE 702-STAMPINGS WASHERS
03699520 *** PERMATEX 717-OIL PAINT, GREASE NORTHERN
03737957 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
03752901 *** NUT 701-FASTENERS FIN DEPT
03752961 *** SHIM 702-STAMPINGS PALMER
03752962 *** SHIM 702-STAMPINGS PALMER
03752963 *** SHIM 702-STAMPINGS PALMER
03767138 *** SPRING 709-SPRINGS OMIOTEK
03771317 *** WASHER 702-STAMPINGS MEANS
03773361 *** BUMPER 712-RUBBER CARDINAL
03779771 *** HUB CAP 702-STAMPINGS LADAPA
03787240 *** MAGNET 715-SINTERED METALS NATIONAL
03795465 *** SHIM 702-STAMPINGS PALMER
03795466 *** SHIM 702-STAMPINGS PALMER
03818764 *** BOLT 701-FASTENERS COLD
03823492 *** GREASE 717-OIL PAINT, GREASE BOBBISH
03831861 *** TAG 710-PAPER DICKEY
03833322 *** LOCK 709-SPRINGS AETNA
03840911 *** FLANGE 702-STAMPINGS HSI-MILT
03842882 *** BUSHING 703-SCREW MACHINED PARTS DAWLEN
03842895 *** BUSHING 703-SCREW MACHINED PARTS DAWLEN
03846078 *** GEAR SD 755-FORGINGS-AFFILIATED SAG-BUFF
03856834 *** ANCHOR PIN 703-SCREW MACHINED PARTS AT&G
03856843 *** SPRING 709-SPRINGS DUDEK
03856850 *** SPRING 709-SPRINGS OMIOTEK
03856855 *** PIVOT LH 702-STAMPINGS IROQUOIS
03856856 *** PIVOT RH 702-STAMPINGS IROQUOIS
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
03858703 *** CARR/CAP 704-FERROUS CASTINGS WGCASG
03860518 *** BOLT 701-FASTENERS RB&W-ROC
03880140 *** PIN DF GR 705-FORGINGS FIN DEPT
03883310 *** HUB 704-FERROUS CASTINGS FIN DEPT
03892412 *** REINFORCE 702-STAMPINGS PALMER
03892413 *** BRACKET 702-STAMPINGS BENNETT
03892414 *** BRACKET 702-STAMPINGS BENNETT
03892415 *** RIVET 701-FASTENERS BRAINARD
03892416 *** RIVET 701-FASTENERS BRAINARD
03892419 *** SHAFT LCA 730-MACHINED FORGINGS CLIPPER
03892436 *** REINFORCE 702-STAMPINGS PALCOSTM
03894701 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894702 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894704 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894705 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894706 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894707 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894708 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894709 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894710 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894711 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894712 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894713 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894714 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894715 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894716 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894717 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894718 *** SHIM 729-FERROUS CASTING MACH SPARTA
03894719 *** SHIM 729-FERROUS CASTING MACH SPARTA
03898056 *** PIN 703-SCREW MACHINED PARTS GREENDAL
03898059 *** STRUT 702-STAMPINGS HSI-MILT
03924344 *** RING GEAR 705-FORGINGS FIN DEPT
03933259 *** COIL SPRG 709-SPRINGS DELCO-LI
03936464 *** WASHER 702-STAMPINGS PROGSTAM
03936465 *** RETAINER 702-STAMPINGS MFG PROD
03936798 *** BRACKET 702-STAMPINGS S&Z
03953436 *** NUT 701-FASTENERS INFASCO
03954320 *** PIPE CLIP 722-STAMPINGS-BRAKE DAJACO
03954482 *** SPACER 709-SPRINGS FIN DEPT
03954483 *** SPACER 709-SPRINGS FIN DEPT
03961258 *** BOLT 701-FASTENERS PEERLESS
03974898 *** SPACER 709-SPRINGS FRWAGNER
03977324 *** CARR/CAP 704-FERROUS CASTINGS CEDRYDAN
03977325 *** A-NUT 703-SCREW MACHINED PARTS AT&G
03977326 *** LOCK 709-SPRINGS ADVWIRE
03977333 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
03977334 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
03977341 *** CASE 704-FERROUS CASTINGS CFDRYDAN
03977342 *** CASE 704-FERROUS CASTINGS CFRIYIDAN
03977343 *** CASE COVER 704-FERROUS CASTINGS CFDRIYDAN
03977344 *** SDE GRID 755-FORGINGS-AFFILIATED SAG-BUFF
03977345 *** WASHER 702-STAMPINGS AMG
03977346 *** WASHER 702-STAMPINGS BRIGHTON
03977356 *** PINFLG&DEF 730-MACHINED FORGINGS SIMP-IND
03977386 *** COVER 702-STAMPINGS HYDWRN
03977397 *** HUB 704-FERROUS CASTINGS CFDRIYSAG
03977453 *** BOLT 701-FASTENERS RINGSCRE
03980400 *** PIPE 722-STAMPINGS-BRAKE DAJACO
03982297 *** DRUM 704-FERROUS CASTINGS WHELAND
03983036 *** NUT 701-FASTENERS STEVENS
03983809 *** NUT 701-FASTENERS STEVENS
03983860 *** BOLT 701-FASTENERS ALPHA
03983871 *** SPACER 702-STAMPINGS PROGSTAM
03984818 *** WASHER 702-STAMPINGS BRIGHTON
03984822 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
03984823 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
03984825 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
03984826 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
03985923 *** BOLT 701-FASTENERS COLD
03988513 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
03988514 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
03988516 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
03988517 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
03988523 *** PIN FLANGE 704-FERROUS CASTINGS CFDRYSAG
03988538 *** BOLT 701-FASTENERS PEERLESS
03992484 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
03996195 *** BRACKET 702-STAMPINGS IROQUOIS
03997921 *** BRACKET 702-STAMPINGS TREND
03998595 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
03998596 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
05454797 *** SPRING 709-SPRINGS TRIAD
05461145 *** SPRING 709-SPRINGS DUDEK
05462142 *** SPRING 709-SPRINGS GREENVIL
05467589 *** BOLT 701-FASTENERS TRIADTRI
05468226 *** BOLT 701-FASTENERS PEERLESS
06260674 *** C/MEMBER 702-STAMPINGS MIDLAND
06260679 *** REINFORCE 702-STAMPINGS HSI-MILT
06260806 *** HUB&DISC AS 704-FERROUS CASTINGS BUDD
06263802 *** SHAFT LCA 730-MACHINED FORGINGS MACHINE
06263811 *** U/C/ARM 702-STAMPINGS HSI-AM
06263812 *** U/C/ARM 702-STAMPINGS HSI-AM
06263820 *** RETAINER 702-STAMPINGS PROGSTAM
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
06263821 *** BUMPER 712-RUBBER COOPER
06263840 *** BOLT 701-FASTENERS ALPHA
06263849 *** SPACER 702-STAMPINGS PROGSTAM
06263850 *** SPACER 703-SCREW MACHINED PARTS GREENDAL
06263851 *** U/C/ARM 702-STAMPINGS HSI-AM
06263852 *** U/C/ARM 702-STAMPINGS HSI-AM
06263891 *** U/C/ARM 702-STAMPINGS HSI-AM
06263892 *** U/C/ARM 702-STAMPINGS HSI-AM
06271198 *** COIL SPRG 709-SPRINGS DELCO-LI
06271374 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
06274259 *** KNUCKLE ASM 729-FERROUS CASTING MACH STC-AXLE
06274260 *** KNUCKLE ASM 729-FERROUS CASTING MACH STC-AXLE
07451785 *** BEARING 708-BEARINGS NDH-BRIS
07451870 *** BEARING 708-BEARINGS NTN
07470116 *** EXTRD TONAW PRO-PROCESSING-OUTSIDE TONAFORG
07828962 *** WASHER 702-STAMPINGS BRAUN
07828963 *** BUMPER 712-RUBBER DYBROOK
07834086 *** PINION ASM 729-FERROUS CASTING MACH HARVARD
09413428 *** BEARING 708-BEARINGS TIMKEN
09413429 *** RACE 708-BEARINGS TIMKEN
09414919 *** RACE 708-BEARINGS TIMKEN
09416897 *** BOLT 701-FASTENERS RB&W-ROC
09417782 *** BEARING 708-BEARINGS TIMKEN
09417783 *** BEARING 708-BEARINGS TIMKEN
09417785 *** BEARING 708-BEARINGS TIMKEN
09417786 *** RACE 708-BEARINGS TIMKEN
09418357 *** BEARING 708-BEARINGS TIMKEN
09418358 *** RACE 708-BEARINGS TIMKEN
09418991 *** BOLT 701-FASTENERS MNP MFG
09420096 *** RACE 708-BEARINGS TIMKEN
09420445 *** SCREW 701-FASTENERS GBDUPONT
09422297 *** NUT 701-FASTENERS INFASCO
09422299 *** NUT 701-FASTENERS GRIPCO
09422302 *** NUT 701-FASTENERS GRIPCO
09422303 *** NUT 701-FASTENERS GRIPCO
09422304 *** NUT 701-FASTENERS GRIPCO
09422308 *** NUT 701-FASTENERS GRIPCO
09424987 *** NUT 701-FASTENERS STEVENS
09428539 *** RACE 708-BEARINGS TIMKEN
09428890 *** SHAFT PIN 709-SPRINGS DRIVE-LO
09428909 *** BEARING 708-BEARINGS TIMKEN
09431604 *** COTTER PIN 701-FASTENERS MELLOWES
09433353 *** NUT 701-FASTENERS FIN DEPT
09436783 *** COTTER PIN 701-FASTENERS MELLOWES
09436882 *** BEARING 708-BEARINGS TIMKEN
09437734 *** BEARING 708-BEARINGS TIMKEN
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
09437735 *** RACE 708-BEARINGS TIMKEN
09437834 *** RIVET 701-FASTENERS BRAINARD
09439561 *** BEARING 708-BEARINGS TORINGTO
09439880 *** BEARING 708-BEARINGS TIMKEN
09755486 *** BALL STUD 718-ASSEMBLIES DELCO-VA
09756808 *** BALL STUD 718-ASSEMBLIES DELCO-VA
09761368 *** BALL STUD 718-ASSEMBLIES DELCO-VA
09761369 *** BALL STUD 718-ASSEMBLIES DELCO-VA
09768316 *** BALL STUD 718-ASSEMBLIES DELCO-VA
09783762 *** NUT 701-FASTENERS IND-AUTO
09784858 *** PUSH NUT 701-FASTENERS PALNUT
09985027 *** SEALANT 711-RESINS M-M-M CO
09985038 *** GREASE 717-OIL PAINT, GREASE BOBBISH
09985254 *** GREASE 717-OIL PAINT, GREASE EXXON
09985290 *** GREASE 717-OIL PAINT, GREASE TEXACO
09985309 *** SEALANT 717-OIL PAINT, GREASE WACKER
09985352 *** SEALANT 711-RESINS DETBALL
09985470 *** PAINT 717-OIL PAINT, GREASE ZIEBART
09985892 *** SEALANT ANA 711-RESINS LOCTITE
10000954 *** BUSHING 712-RUBBER GENCORP
10113038 *** BRAKE CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
10135417 *** BRAKE CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
10135481 *** BRK CABKE 738-ASSEMBLIES-BRAKE CABLES DOMINION
10135482 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
10183748 *** SAW SAW C PRO-PROCESSING-OUTSIDE BAR
10215918 *** INSP ROD CA PRO-PROCESSING-OUTSIDE NEW
10223642 *** BRAKE CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
10238822 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
11500930 *** BOLT 701-FASTENERS RINGSCRE
11502737 *** PUSH NUT JC 701-FASTENERS PALNUT
11503877 *** BOLT 701-FASTENERS COLD
11503963 *** WASHER 701-FASTENERS MOTORCIT
11505124 *** BEARING 708-BEARINGS TIMKEN
11505125 *** RACE 708-BEARINGS TIMKEN
11506007 *** BOLT 701-FASTENERS MNP MFG
14000529 *** BRACKET 702-STAMPINGS HSI-AM
14000530 *** BRACKET 702-STAMPINGS HSI-AM
14001283 *** BOLT 701-FASTENERS GBDUPONT
14003417 *** BUMPER 712-RUBBER COOPER
14003444 *** RETAINER 702-STAMPINGS MFG PROD
14003451 *** BOLT 701-FASTENERS FIN DEPT
14004183 *** REINFORCE 702-STAMPINGS SUPERB
14004184 *** REINFORCE 702-STAMPINGS SUPERB
14005153 *** BRACKET 702-STAMPINGS HSI-AM
14005154 *** BRACKET 702-STAMPINGS HSI-AM
14005179 *** __/MEMBER 702-STAMPINGS MIDLAND
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
14006401 *** SHAFT DF PN 730-MACHINED FORGINGS MACHINE
14006434 *** BRACKET 702-STAMPINGS ALLSTTOO
14012675 *** BOLT 701-FASTENERS RINGSCRE
14012679 *** BOLT 701-FASTENERS PEERLESS
14012691 *** SPACER 709-SPRINGS ERWAGNER
14012694 *** SEAL 712-RUBBER FREUDNBR
14012695 *** CASE 704-FERROUS CASTINGS CFDRIYDAN
14012696 *** 9.5 SIDE GE 755-FORGINGS-AFFILIATED SAG-BUFF
14012697 *** WASHER 702-STAMPINGS BRIGHTON
14012699 *** WASHER 702-STAMPINGS PALCOSTM
14012700 *** SHAFT DF PN 730-MACHINED FORGINGS MACHINE
14012702 *** BOLT 701-FASTENERS RINGSCRE
14012703 *** BOLT 701-FASTENERS COLD
14012707 *** LOCK 709-SPRINGS ADVWIRE
14012708 *** SHIM 702-STAMPINGS AMG
14012709 *** SHIM 702-STAMPINGS AMG
14012710 *** SHIM 702-STAMPINGS AMG
14012711 *** SHIM 702-STAMPINGS AMG
14012712 *** SHIM 702-STAMPINGS AMG
14012713 *** SHIM 702-STAMPINGS AMG
14012714 *** SHIM 702-STAMPINGS AMG
14012715 *** SHIM 702-STAMPINGS AMG
14012716 *** SHIM 702-STAMPINGS AMG
14012717 *** SHIM 702-STAMPINGS AMG
14012718 *** SHIM 702-STAMPINGS AMG
14012719 *** SHIM 702-STAMPINGS AMG
14012720 *** SHIM 702-STAMPINGS AMG
14012721 *** SHIM 702-STAMPINGS AMG
14012722 *** SHIM 702-STAMPINGS AMG
14012723 *** SHIM 702-STAMPINGS AMG
14012724 *** SHIM 702-STAMPINGS AMG
14012725 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012726 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012727 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012729 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012730 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012731 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012732 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012733 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012734 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012735 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012736 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012737 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012738 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012739 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012740 *** SHIM 729-FERROUS CASTING MACH SPARTA
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
14012741 *** SHIM 704-FERROUS CASTINGS SPARTA
14012742 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012743 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012746 *** LOCK 702-STAMPINGS ALLSTTOO
14012747 *** COVER 702-STAMPINGS HYDWRN
14012748 *** BOLT 701-FASTENERS GBDUPONT
14012749 *** SHIM 702-STAMPINGS AMG
14012752 *** SHIM 729-FERROUS CASTING MACH SPARTA
14012753 *** A-NUT 703-SCREW MACHINED PARTS AT&G
14012793 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
14012794 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
14012795 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
14012796 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
14012801 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14012802 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14012803 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14012804 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14018224 *** CARR/CAP 704-FERROUS CASTINGS CFDRYDAN
14020937 *** DRUM 704-FERROUS CASTINGS CFDRYDAN
14023437 *** SPRING 709-SPRINGS AUTOSPRG
14023438 *** CLIP 709-SPRINGS BURNEX
14023439 *** LOCK 709-SPRINGS BENDIXHY
14024528 *** BTM PT 702-STAMPINGS FREEDLAN
14026599 *** SEAL 712-RUBBER RUBBEREN
14026600 *** SEAL 712-RUBBER RUBBEREN
14026701 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14026702 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
14026897 *** BALANCE WGT 702-STAMPINGS FIN DEPT
14030376 *** CARRIER 713-NON FERROUS CASTINGS STCATH
14034566 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
14035322 *** BRACKET HSE 702-STAMPINGS ALLSTTOO
14035355 *** AXLE SHAFT 745-COLD HEADED PARTS CARPENTE
14035359 *** BRACKET 702-STAMPINGS FIN DEPT
14035360 *** BRACKET 702-STAMPINGS FIN DEPT
14035386 *** PIN FLANGE 729-FERROUS CASTING MACH SIMP-IND
14039577 *** SEAL 712-RUBBER FREUDNBR
14039582 *** PIN FLG & D 729-FERROUS CASTING MACH SIMP-IND
14039587 *** SEAL 712-RUBBER FREUDNBR
14039589 *** SHAFT PN 730-MACHINED FORGINGS MACHINE
14039591 *** CONNECTOR 745-COLD HEADED PARTS MACLEAN
14039596 *** CASE 704-FERROUS CASTINGS CFDRYDAN
14039598 *** WASHER 702-STAMPINGS BRIGHTON
14039599 *** WASHER 702-STAMPINGS BRIGHTON
14041238 *** C/MEMBER 702-STAMPINGS MIDLAND
14041988 *** DEFLECTOR 702-STAMPINGS WHITEHEA
14041989 *** SNAP RING 709-SPRINGS LOCKRING
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
14042601 *** SPRING 709-SPRINGS TOLLMAN
14042602 *** WASHER 716-PLASTIC PARTS HERITAGE
14042604 *** SHFTR FORK 729-FERROUS CASTING MACH PMA
14042606 *** SPRING 709-SPRINGS OMIOTEK
14042628 *** CASE 704-FERROUS CASTINGS CFDRYDAN
14045736 *** BOLT 701-FASTENERS MNP MFG
14050302 *** DRUM 704-FERROUS CASTINGS WHELAND
14050331 *** ID STICKER 710-PAPER MACARTHU
14051221 *** BRACKET 702-STAMPINGS HSI-AM
14051222 *** BRACKET 702-STAMPINGS HSI-AM
14054112 *** BRACKET 702-STAMPINGS IROQUOIS
14054345 *** COIL SPRG 709-SPRINGS DELCO-LI
14054635 *** SHAFT UCA 705-FORGINGS METLFORG
14054636 *** BUSHING 712-RUBBER RUBBEREN
14054701 *** WASHER 702-STAMPINGS PROGSTAM
14054709 *** CLIP 722-STAMPINGS-BRAKE DAJACO
14054761 *** BUMPER LCA 712-RUBBER GOODYEAR
14054762 *** NUT 701-FASTENERS CSM
14054920 *** COVER 702-STAMPINGS MEANS
14054921 *** NUT 701-FASTENERS INFASCO
14054925 *** KNUCKLE ASM 729-FERROUS CASTING MACH STC-AXLE
14054926 *** KNUCKLE ASM 729-FERROUS CASTING MACH STC-AXLE
14054936 *** BEARING 708-BEARINGS TIMKEN
14055318 *** BRACKET 702-STAMPINGS YAREMA
14055319 *** BRACKET 702-STAMPINGS YAREMA
14056118 *** CBLE SWTCH 716-PLASTIC PARTS WOLLIN
14056135 *** BOLT 701-FASTENERS RB&W-ROC
14056165 *** BOLT 701-FASTENERS RINGSCRE
14056175 *** FLG PLATE 702-STAMPINGS UNIBOND
14056176 *** FLG PLATE 702-STAMPINGS UNIBOND
14056196 *** BOLT 701-FASTENERS RINGSCRE
14056297 *** VENT 703-SCREW MACHINED PARTS GREENDAL
14056841 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
14056842 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
14060825 *** TUBE 707-TUBING CLIPPER
14066911 *** TUBE 707-TUBING CLIPPER
14066913 *** BOLT 701-FASTENERS RINGSCRE
14067131 *** NUT 701-FASTENERS CSM
14070320 *** PLUG 716-PLASTIC PARTS NIAGARA
14072937 *** DRUM 704-FERROUS CASTINGS WHELAND
14072938 *** BALANCE WGT 702-STAMPINGS PALMER
14072939 *** BALANCE WGT 702-STAMPINGS WASHERS
14074865 *** SHIM 702-STAMPINGS AMG
14074866 *** SHIM 702-STAMPINGS AMG
14074867 *** SHIM 702-STAMPINGS AMG
14074868 *** SHIM 702-STAMPINGS AMG
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
14075742 *** CARRIER 704-FERROUS CASTINGS CFDRYIDEF
14081407 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
14081408 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
14081409 *** PAINT-STAB PRO-PROCESSING-OUTSIDE M-KOTE-G
14085342 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14085343 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14085344 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14087728 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
14089553 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
14089584 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
14090006 *** INSP CONN R PRO-PROCESSING-OUTSIDE NEW
14092112 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
14092414 *** DISC 709-SPRINGS STCATH
14101234 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
14101234 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
15521872 *** SEAL RING 712-RUBBER FREUDNBR
15521873 *** BEARING 708-BEARINGS TORINGTO
15521874 *** SEAL 712-RUBBER FREUDN-N
15521875 *** LOCK 722-STAMPINGS-BRADE DAJACO
15521887 *** SLEEVE K-30 755-FORGINGS-AFFILIATED SAG-BUFF
15521977 *** BOLT 701-FASTENERS RB&W-ROC
15522012 *** PIN FLANGE 729-FERROUS CASTING MACH STC-AXLE
15522026 *** TUBE 707-TUBING USM-LEX
15522027 *** TUBE 707-TUBING USM-LEX
15522028 *** TUBE 707-TUBING USM-LEX
15522029 *** TUBE 707-TUBING USM-LEX
15522046 *** FLANGE 702-STAMPINGS HSI-MILT
15522047 *** BRACKET 702-STAMPINGS SIMPSON
15522061 *** BOLT 701-FASTENERS COLD
15522062 *** SEAL 712-RUBBER FREUDNBR
15522075 *** ADJ SCREW & 728-ASSEMBLIES-BRAKE RELATES HARCO
15522076 *** ADJ SCREW & 728-ASSEMBLIES-BRAKE RELATED HARCO
15522081 *** SOCKET 703-SCREW MACHINED PARTS GREENDAL
15522140 *** SHIM 702-STAMPINGS AMG
15522141 *** SHIM 702-STAMPINGS AMG
15522142 *** SHIM 702-STAMPINGS AMG
15530279 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15530280 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15530281 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15530282 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15530288 *** SEAL 712-RUBBER CHIRAW
15530296 *** BEARING 708-BEARINGS TORINGTO
15545356 *** BOLT 701-FASTENERS ALPHA
15545363 *** DRUM 704-FERROUS CASTINGS WHELAND
15548297 *** BUSHING 712-RUBBER GENCORP
15551384 *** CLIP 722-STAMPINGS-BRAKE DAJACO
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
15551436 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15552842 *** CBLE SWTCH 731-ELECTRICAL COMPONENTS JOSPOLLA
15552844 *** NUT 701-FASTENERS GRIPCO
15552845 *** WASHER 702-STAMPINGS WASHERS
15552871 *** CUP 722-STAMPINGS-BRAKE DAJACO
15555694 *** TUBE 707-TUBING STANDARD
15557374 *** HUB & DISC 704-FERROUS CASTINGS BUDD
15557723 *** CUP 722-STAMPINGS-BRAKE DAJACO
15562338 *** BRACKET 702-STAMPINGS SUPERB
15562346 *** SPACER SG 703-SCREW MACHINED PARTS GREENDAL
15562375 *** PIN FLANGE 703-MACHINED FORGINS SIMP-IND
15572949 *** BRACKET 702-STAMPINGS IROQUOIS
15572950 *** BRACKET 702-STAMPINGS IROQUOIS
15572991 *** CARRIER 713-NON FERROUS CASTINGS ACCURCAS
15572992 *** CARRIER 713-NON FERROUS CASTINGS ACCURCAS
15573205 *** CARRIER 713-NON FERROUS CASTINGS ACCURCAS
15573206 *** CARRIER 713-NON FERROUS CASTINGS ACCURCAS
15573240 *** SLEEVE & INST 703-SCREW MACHINED PARTS GRINNELL
15588223 *** DRUM 704-FERROUS CASTINGS WHELAND
15588240 *** DRUM 704-FERROUS CASTINGS WHELAND
15588258 *** BOLT 701-FASTENERS PEERLESS
15588288 *** BEARING 708-BEARINGS TORINGTO
15588297 *** TUBE 707-TUBING STANDARD
15588297 *** TUBE 707-TUBING STANDARD
15588298 *** TUBE 707-TUBING STANDARD
15588312 *** LOCK 722-STAMPINGS-BRAKE DAJACO
15588326 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15588327 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15588328 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
15588333 *** SAW PINION PRO - PROCESSING - OUTSIDE COLDSAW
15588334 *** SAW PINION PRO - PROCESSING - OUTSIDE COLDSAW
15588335 *** SAW PINION PRO - PROCESSING - OUTSIDE COLDSAW
15588336 *** PINION FLAN 729-FERROUS CASTING MACH SIMP-IND
15588341 *** BEARING 708-BEARINGS TORINGTO
15588350 *** WASHER 702-STAMPINGS PALMER
15588351 *** WASHER 702-STAMPINGS PALMER
15588354 *** RING 722-STAMPINGS-BRAKE DAJACO
15588356 *** CONNECTOR 745-COLD HEADED PARTS MACLEAN
15588360 *** WASHER 702-STAMPINGS PALMER
15588363 *** DEFLECTOR 702-STAMPINGS PALMER
15588371 *** SPRING FORK 709-SPRINGS OMIOTEK
15588372 *** BUSHING 712-RUBBER GENCORP
15588374 *** PLUG 701-FASTENERS MNP MFG
15588376 *** SHIM 702-STAMPINGS PALMER
15588383 *** WASHER 716-PLASTIC PARTS WOLLIN
15589493 *** BOLT 701-FASTENERS ALPHA
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
15589690 *** CARRIER 704-FERROUS CASTINGS CFDRYDEF
15592924 *** REINFORCE 702-STAMPINGS HSI-MILT
15593721 *** TUBE 707-TUBING USM-PTH
15593722 *** TUBE 707-TUBING USM-PTH
15593723 *** TUBE 707-TUBING USM-LEX
15593724 *** TUBE 707-TUBING USM-LEX
15593725 *** TUBE 707-TUBING USM-LEX
15593726 *** TUBE 707-TUBING USM-LEX
15595140 *** BEARING 708-BEARINGS TORINGTO
15596762 *** S-SLEEVE 755-FORGINGS-AFFILIATED SAG-BUFF
15597740 *** BRAKE SHOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15597742 *** BRAKE SHOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15597829 *** C/MEMBER 702-STAMPINGS MIDLAND
15598366 *** C/MEMBER 702-STAMPINGS MIDLAND
15600401 *** RIVET 701-FASTENERS BRAINARD
15604587 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15604588 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15604589 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15604590 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15604591 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15604592 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
15604866 *** C/MEMBER 702-STAMPINGS MIDLAND
15604916 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15605093 *** CALIPER 718-ASSEMBLIES BENDIXHY
15605094 *** CALIPER 718-ASSEMBLIES BENDIXHY
15605095 *** BRAKE SHOE 718-ASSEMBLIES BENDIXHY
15605096 *** BRAKE SHOE 718-ASSEMBLIES BENDIXHY
15607683 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15607684 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15607685 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15607686 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15612681 *** PREEN STAB S PRO-PROCESSING-OUTSIDE METALPRE
15612681 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15622343 *** FLG PLATE 702-STAMPINGS UNIBOND
15622344 *** FLG PLATE 702-STAMPINGS UNIBOND
15622364 *** DRUM 704-FERROUS CASTINGS WHELAND
15622390 *** DRUM 704-FERROUS CASTINGS WHELAND
15624631 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15624632 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
15624633 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15624634 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES DOMINION
15627169 *** CLIP 722-STAMPINGS-BRAKE DAJACO
15629087 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15631321 *** BUMPER 712-RUBBER COOPER
15631881 *** AIR BAG 712-RUBBER AIRLIFT
15638264 *** CBL SWITCH 731-ELECTRICAL COMPONENTS JOSPOLLA
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
15638379 *** LINK L.H. 709-SPRINGS AUTOSPRG
15638380 *** LINK R.H. 709-SPRINGS AUTOSPRG
15640308 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15640308 *** SHEAR STA S PRO-PROCESSING-OUTSIDE COLDSAW
15640537 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15640538 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15640540 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15640541 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15640542 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15641565 *** HUB & DISC 704-FERROUS CASTINGS BUDD
15641587 *** HUB & DISC 729-FERROUS CASTING MACH STC-AXLE
15644378 *** HUB & DISC 704-FERROUS CASTINGS BUDD
15644983 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15644986 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15649015 *** BRACKET 702-STAMPINGS TREND
15649195 *** LEVER 702-STAMPINGS YAREMA
15649196 *** LEVER 702-STAMPINGS YAREMA
15649277 *** LOCKWASHER 702-STAMPINGS WASHERS
15649959 *** RING EXTR 715-SINTERED METALS ZENITH
15649975 *** RING EXTR 715-SINTERED METALS ZENITH
15650041 *** HUB 704-FERROUS CASTINGS CFDRYDAN
15650050 *** DURM 704-FERROUS CASTINGS WHELAND
15650232 *** SEAL 712-RUBBER CHIRAW
15650296 *** BRAKE SHOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15650297 *** BRAKE SOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15651809 *** KNUCKLE ASM 729-FERROUS CASTING MACH STC-AXLE
15651810 *** KNUCKLE ASM 729-FERROUS CASTING MACH STC-AXLE
15655172 *** SEAL 712-RUBBER CHRIAW
15657301 *** CLIP 722-STAMPINGS-BRAKE DAJACO
15657302 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15657304 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15657342 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15661102 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15661102 *** TURN STA S PRO-PROCESSING-OUTSIDE M-T&G
15672903 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15672904 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15672938 *** BRACKET SNB 702-STAMPINGS PALCOSTM
15674392 *** BRAKE SHOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15674393 *** BRAKE SHOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15674408 *** HUB & DISC 704-FERROUS CASTINGS BUDD
15674440 *** HUB & DISC 704-FERROUS CASTINGS BUDD
15674445 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
15674446 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
15677153 *** BRACKET 722-STAMPINGS-BRAKE DAJACO
15677154 *** BRACKET 722-STAMPINGS-BRAKE DAJACO
15677613 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
15677614 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15677615 *** PAINT STAB S PRO-PROCESSING-OUTSIDE M-KOTE-G
15677616 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15677616 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
15679581 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
15679582 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
15679583 *** BRAKE SHOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15679584 *** BRAKE SHOE 728-ASSEMBLIES-BRAKE RELATED UNIBOND
15679603 *** HUB & DISC 704-FERROUS CASTINGS BUDD
15680287 *** COIL SPRG 709-SPRINGS DELCO-LI
15683969 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15683970 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15684329 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15684329 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
15687308 *** PAINT-STAB PRO-PROCESSING-OUTSIDE M-KOTE-G
15692903 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15693455 *** DRUM ASM 729-FERROUS CASTING MACH SAG-BUFF
15693468 *** DRUM 729-FERROUS CASTING MACH PALCO-CN
15696701 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15697719 *** TURN STAB S PRO-PROCESSING-OUTSIDE M_T&G
15697719 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15697720 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
15697720 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15697721 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15697722 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
15697722 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15697723 *** TURN STAB S PRO-PROCESSING-OUTSIDE M-T&G
15697723 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15699943 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699944 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699945 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699946 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699947 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699948 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699949 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699950 *** SPL SHIELD 724-ELECTRICAL DEVICE K-HAYES
15699959 *** GASKET 712-RUBBER WESTRUB
15699960 *** GASKET 712-RUBBER WESTRUB
15953196 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15953201 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15953203 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15953204 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15953205 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15953209 *** BRK CABLE 738-ASSEMBLIES-BRAKE CABLES ORSCHELN
15960224 *** DRUM-HONED 729-FERROUS CASTING MACH PALCO-CN
15961006 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
15962386 *** SPL SHIELD 702-STAMPINGS MEANS
15962387 *** SPL SHIELD 702-STAMPINGS MEANS
15964931 *** CALIPER 718-ASSEMBLIES BENDIXHY
15964932 *** CALIPER 718-ASSEMBLIES BENDIXHY
15964933 *** BRAKE SHOE 718-ASSEMBLIES BENDIXHY
15964934 *** BRAKE SHOE 718-ASSEMBLIES BENDIXHY
15970178 *** PIPE CLIP 722-STAMPINGS-BRAKE DAJACO
15970178 *** PIPE CLIP 722-STAMPINGS-BRAKE DAJACO
15979082 *** BUMPER LOA 712-RUBBER GOODYEAR
15979086 *** AIR BAG 712-RUBBER AIRLIFT
15981886 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15981886 *** HEAR STA S PRO-PROCESSING-OUTSIDE COLDSAW
15983283 *** BUMPER 712-RUBBER CARDINAL
15988035 *** WASHER 702-STAMPINGS TREND
18004609 *** WHEEL CYL 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18004794 *** WHEEL CYL 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18009067 *** CALIPER 728-ASSEMBLIES-BRAKE RELATED DELCOSAG
18009068 *** CALIPER 728-ASSEMBLIES-BRAKE RELATED DELCOSAG
18013062 *** CALIPER 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18013063 *** CALIPER 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18013731 *** DRUM 704-FERROUS CASTINGS WHELAND
18015044 *** CLIP 709-SPRINGS ROTORCLLI
18015957 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18015958 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18017179 *** DRUM 729-FERROUS CASTING MACH STC-AXLE
18018191 *** CALIPER 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18018192 *** CALIPER 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18018413 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18018416 *** FLG PLATE 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18018417 *** FLT PLATE 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18018419 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18018790 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18018791 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18018934 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18018935 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18018971 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18019171 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18019172 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
18019490 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18019491 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18019765 *** DRUM-J/N/L 704-FERROUS CASTINGS WHELAND
18019888 *** DRUM-SATURN PRO-PROCESSING-OUTSIDE CERTICOA
18020246 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18020247 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED DELCOMO
18020612 *** DRUM-J-CAR PRO-PROCESSING-OUTSIDE CERTICOA
18021220 *** FLGPLT&BRK 728-ASSEMBLIES-BRAKE RELATED STC-AXLE
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
22112488 *** BALL STUD 718-ASSEMBLIES DELCO-VA
25505116 *** PIPE CUP 709-SPRINGS FOURSLID
25524815 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
25558117 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
25558135 *** INSRT-STAB PRO-PROCESSING-OUTSIDE FOR-SLID
25558135 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
25559835 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
25559836 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
25604384 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
25606832 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
15606833 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
26004521 *** DAFF ARM 748-ASSEMBLIES-DIFFERENTIAL EATONMAR
26004800 *** RETAINER 704-FERROUS CASTINGS DECO
26004811 *** SEAL 712-RUBBER FREUDN-N
26007041 *** TUBE 707-TUBING USM-LEX
26007368 *** BOLT 701-FASTENERS MNP MFG
26007557 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26007563 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26007565 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26007700 *** TUBE&INSERT 713-NON FERROUS CASTINGS FIN DEPT
26007927 *** COVER 702-STAMPINGS GMCND OS
26008741 *** SPACER 709-SPRINGS ERWAGNER
26008812 *** LOCK 722-STAMPINGS-BRAKE DAJACO
26008877 *** PUSH NUT 701-FASTENERS PALNUT
26009627 *** SHAFT OUTPT 730-MACHINED FORGINGS MACHINE
26009678 *** WASHER 702-STAMPINGS PALMER
26010416 *** MDWST SH UP PRO-PROCESSING-OUTSIDE MID-WEST
26010417 *** MDWST SH UP PRO-PROCESSING-OUTSIDE MID-WEST
26011693 *** TUBE ASM 707-TUBING USM-LEX
26011694 *** TUBE ASM 707-TUBING USM-LEX
26011707 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26011708 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26011718 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26011719 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26011748 *** BRACKET 707-TUBING USM-LEX
26011773 *** TUBE 707-TUBING USM-LEX
26011774 *** TUBE 707-TUBING USM-LEX
26011811 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26011812 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26011813 *** TUBE 707-TUBING USM-LEX
26011814 *** TUBE 707-TUBING USM-LEX
26011826 *** CARRIER 704-FERROUS CASTINGS CFDRYDEF
26011832 *** BRACKET 702-STAMPINGS PALCOSTM
26011865 *** WASHER 702-STAMPINGS BRIGHTON
26011871 *** SHAFT LCA 0 718-ASSEMBLIES SAGSTRG
26011872 *** SHAFT LCA 0 718-ASSEMBLIES SAGSTRG
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
26012079 *** CARR/CAP 729-FERROUS CASTING MACH USM-BAD
26012387 *** TUBE 707-TUBING USM-LEX
26012388 *** TUBE 707-TUBING USM-LEX
26012550 *** CLIP 722-STAMPINGS-BRAKE DAJACO
26012550 *** CLIP 722-STAMPINGS-BRAKE DAJACO
26012845 *** GASKET 712-RUBBER WISCONSI
26012861 *** DIFF ASM 748-ASSEMBLIES-DIFFERENTIAL EASTONMAR
26012862 *** DIFF ASM 748-ASSEMBLIES-DIFFERENTIAL EASTONMAR
26012870 *** BRACKET 702-STAMPINGS PALCOSTM
26013015 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26013313 *** MDWST SH UP PRO-PROCESSING-OUTSIDE MID-WEST
26013495 *** ACTUATOR 724-ELECTRICAL DEVICE DESIGNMF
26013555 *** TUBE 707-TUBING USM-LEX
26013559 *** SHAFT ASM 730-MACHINED FORGINGS MACHINE
26013686 *** TUBE 707-TUBING USM-LEX
26013687 *** TUBE 707-TUBING USM-LEX
26013855 *** CASE 704-FERROUS CASTINGS CFDRYDAN
26014226 *** DIFF ASM 748-ASSEMBLIES-DIFFERENTIAL AUB-GEAR
26014337 *** MDWST-SH.UP PRO-PROCESSING-OUTSIDE MID-WEST
26014589 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26014590 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26014735 *** TUBE ASM 707-TUBING USM-LEX
26014736 *** TUBE ASM 707-TUBING USM-LEX
26015124 *** GEAR DF PN 705-FORGINGS BRAUN
26015524 *** BRACKET 722-STAMPINGS-BRAKE DAJACO
26016106 *** PINION GEAR 705-FORGINGS BRAUN
26016179 *** TUBE ASM 707-TUBING USM-LEX
26016180 *** TUBE ASM 707-TUBING USM-LEX
26016184 *** A/S & BOLT 730-MACHINED FORGINGS MACHINE
26016438 *** SENSOR PLUG 716-PLASTIC PARTS NIAGARA
26016662 *** GASKET 712-RUBBER WISCONSI
26016664 *** PINION FLAN 729-FERROUS CASTING MACH SIMP-IND
26016803 *** CASE 704-FERROUS CASTINGS CFDRYDAN
26017243 *** DIFF SD GR 755-FORGINGS-AFFILIATED SAG-BUFF
26017261 *** PAD JOUNCE 712-RUBBER PALCO-CN
26017363 *** TABE ASM 707-TUBING USM-LEX
26017364 *** TUBE ASM 707-TUBING USM-LEX
26018081 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26018082 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26018131 *** CASE 704-FERROUS CASTINGS CFDRIYDAN
26018688 *** PINFLG&DEF 729-FERROUS CASTING MACH DANA-POT
26018940 *** SENSOR RING 715-SINTERED METALS STACKPOL
26018941 *** SENSOR RING 715-SINTERED METALS STACKPOL
26018943 *** SENSOR RING 715-SINTERED METALS STACKPOL
26018944 *** SENSOR RING 715-SINTERED METALS STACKPOL
26018945 *** SENSOR RING 715-SINTERED METALS STACKPPOL
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
26019045 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26019090 *** DIFF PIN 705-FORGINGS BRAUN
26019419 *** SIDE GEAR 8 755-FORGINGS-AFFILIATED SAG-BUFF
26019566 *** GEAR SD 755-FORGINGS-AFFILIATED SAG-BUFF
26019851 *** SERVICE SID 755-FORGINGS-AFFILIATED SAG-BUFF
26019943 *** TUBE ASM 707-TUBING USM-LEX
26019944 *** TUBE ASM 707-TUBING USM-LEX
26020607 *** PIPE CLIP 722-STAMPINGS-BRAKE DAJACO
26020652 *** CASE 748-ASSEMBLIES-DIFFERENTIAL AUB-GEAR
26020796 *** FLANGE 702-STAMPINGS HSI-AM
26020810 *** PINION FLAG 729-FERROUS CASTING MACH SIMP-IND
26021340 *** A/S&BLTASM 730-MACHINED FORGINGS MACHINE
26021347 *** CARR & CAP 729-FERROUS CASTING MACH USM-BAD
26022006 *** BUSHING 712-RUBBER RUBBEREN
26022058 *** BRACKET 702-STAMPINGS WASHERS
26022059 *** BRACKET 702-STAMPINGS WASHERS
26022228 *** TUBE ASM 707-TUBING USM-LEX
26022655 *** DIFF PINION 705-FORGINGS BRAUN
26022747 *** PROTECTOR 716-PLASTIC PARTS STOCKCAP
26023071 *** TUBE ASM 707-TUBING USM-LEX
26023072 *** TUBE ASM 707-TUBING USM-LEX
26023328 *** PINION FLAN 729-FERROUS CASTING MACH SIMP-IND
26023329 *** PIN FLANGE 729-FERROUS CASTING MACH SIMP-IND
26023330 *** PINFLG&DEF 730-MACHINED FORGINGS SIMP-IND
26024362 *** PAINT STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
26025023 *** BRACKET 702-STAMPINGS HSI-MILT
26025316 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
26025539 *** PIN FLANGE 729-FERROUS CASTING MACH PALCO-CN
26025564 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26025619 *** SLEEVE&INST 715-SINTERED METALS ZENITH
26025893 *** TUBE 707-TUBING USM-LEX
26025894 *** TUBE 707-TUBING USM-LEX
26025895 *** TUBE 707-TUBING USM-LEX
26025896 *** TUBE 707-TUBING USM-LEX
26026693 *** BRACKET 702-STAMPINGS PALCOSTM
26026777 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26026778 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26026779 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26027692 *** TUBE ASM 707-TUBING USM-LEX
26027693 *** TUBE ASM 707-TUBING USM-LEX
26027711 *** PIN FLANGE 729-FERROUS CASTING MACH HILLSDAL
26027877 *** FLANGE 702-STAMPINGS WASHERS
26030096 *** DISS ASM 748-ASSEMBLIES-DIFFERENTIAL EATONMAR
26030228 *** SPIDER 705-FORGINGS BRAFCO
26030270 *** WASHER 702-STAMPINGS BRIGHTON
26030271 *** WASHER 702-STAMPINGS BRIGHTON
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
26031569 *** SEAL ASM 712-RUBBER FREUDNBR
26031587 *** BOLT & WASH 701-FASTENERS RINGSCRE
26031628 *** TUBE 707-TUBING USM-PTH
26031629 *** TUBE 707-TUBING USM-PTH
26031630 *** TUBE 707-TUBING CLIPPER
26031702 *** WASHER 722-STAMPINGS-BRAKE DAJACO
26031703 *** RING 722-STAMPINGS-BRAKE DAJACO
26031706 *** SHAFT OUTPT 730-MACHINED FORGINGS MACHINE
23062443 *** VENT 716-PLASTIC PARTS PRECPLAS
26032907 *** PAINT-STA S PRO-PROCESSING-OUTSIDE M-KOTE-G
26033003 *** EXTRD TONAW PRO-PROCESSING-OUTSIDE TONAFORG
26033204 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26033207 *** TUBE 707-TUBING CLIPPER
26033235 *** TUBE 729-FERROUS CASTING MACH USM-BAD
26033237 *** TUBE 729-FERROUS CASTING MACH USM-BAD
26033578 *** SEAL ASM 712-RUBBER CHIRAW
26033973 *** DAMPER ASM 729-FERROUS CASTING MACH PALCO-CN
26033974 *** SLEEVE 715-SINTERED METALS PRECISIO
26034254 *** AXLE SHAFT 730-MACHINED FORGINGS MACHINE
26034712 *** WELD SLUG 709-SPRINGS C&S ENGR
26034785 *** SLEEVE ASM 715-SINTERED METALS ZENITH
26034788 *** DIFF SD GR 755-FORGINGS-AFFILIATED SAG-BUFF
26034789 *** PINION GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26035154 *** SHAFT PROP 718-ASSEMBLIES SAG-THRE
26035254 *** CARRIER 713-NON FERROUS CASTINGS ACCURCAS
26035255 *** CARRIER 713-NON FERROUS CASTINGS ACCURCAS
26035262 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26035263 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26035527 *** SHAFT PROP 718-ASSEMBLIES SAG-THRE
26035822 *** CARRIER 704-FERROUS CASTINGS STCATH
26035826 *** GEAR SET 730-MACHINED FORGINGS US GEAR
26036092 *** SLEEVE 715-SINTERED METALS PRECISIO
26036438 *** SEAL 712-RUBBER FREUDN-N
26036835 *** BOLT & WASH 701-FASTENERS RINGSCRE
26037309 *** SEAL 712-RUBBER FREUDN-N
26037339 *** PINION GEAR 705-FORGINGS COLFOR
26037340 *** PINION GEAR 705-FORGINGS COLFOR
26037341 *** PINION GEAR 705-FORGINGS COLFOR
26037342 *** PINION GEAR 705-FORGINGS COLFOR
26037709 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26037710 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26037714 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26037717 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26037718 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26037722 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26037725 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
26037726 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26037730 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26037840 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26038170 *** CARRIER 704-FERROUS CASTINGS CFDRYDEF
26039757 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26039758 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26039761 *** RING GEAR 755-FORGINGS-AFFILIATED SAG-BUFF
26039763 *** SAW PINION PRO-PROCESSING-OUTSIDE COLDSAW
26040489 *** BRACKET 702-STAMPINGS GEOMETRI
26040948 *** TUBE ASM 707-TUBING USM-LEX
26040949 *** TUBE ASM 707-TUBING USM-LEX
26041515 *** BEARING 708-BEARINGS TORINGTO
26041516 *** BEARING 708-BEARINGS TORINGTO
26041542 *** PAINT CHG PRO-PROCESSING-OUTSIDE MATERIAL
26041543 *** PAINT CHG PRO-PROCESSING-OUTSIDE MATERIAL
26041544 *** PAINT CHG PRO-PROCESSING-OUTSIDE MATERIAL
26041545 *** PAINT CHG PRO-PROCESSING-OUTSIDE MATERIAL
26043521 *** POP RIVET 701-FASTENERS GESIPA
M4041987 *** SHAFT 730-MACHINED FORGINGS MACHINE
OUTPAINT *** FIN COST PR PRO-PROCESSING-OUTSIDE CERTICOA
S0183748 *** RODS CONNEC 706-STEEL REPUBLIC
S0191602 *** RODS CONNEC 706-STEEL USS
S0201167 *** RODS CONNEC 706-STEEL USS
S0215918 *** CAPS CONNEC 706-STEEL NORTH
S0331110 *** CAPS CONNEC 706-STEEL NORTH
S0339624 *** HDP HYP DR 706-STEEL FIN DEPT
S0370277 *** S/S STAB S 706-STEEL SLATER
S0457923 *** S/S STAB S 706-STEEL NORTH
S2536401 *** S/S STAB S 706-STEEL NORTH
S2536402 *** S/S STAB S 706-STEEL NORTH
S2565626 *** S/S STAB S 706-STEEL NORTH
S2570016 *** S/S STAB S 706-STEEL NORTH
S2570022 *** S/S STAB S 706-STEEL SLATER
S2572336 *** S/S STAB S 706-STEEL NROTH
S2581617 *** S/S STAB S 706-STEEL SLATER
S2584364 *** S/S STAB S 706-STEEL NORTH
S3885942 *** HDP. HYP DR 706-STEEL FIN DEPT
S3924343 *** HDP. HYP DR 706-STEEL FIN DEPT
S3951562 *** CAPS CONNEC 706-STEEL NORTH
S3977337 *** HDP. HYP DR 706-STEEL USS
S3977383 *** A/S. AXLE S 706-STEEL USS
S3977384 *** A/S. AXLE S 706-STEEL USS
S3984826 *** HDP. HYP DR 706-STEEL REPUBLIC
S3984832 *** HDP. HYP DR 706-STEEL REPUBLIC
S4012801 *** HDP. HYP DR 706-STEEL REPUBLIC
S4025524 *** RODS CONNEC 706-STEEL USS
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
S4031311 *** RODS CONNEC 706-STEEL NORTH
S4035355 *** A/S. AXLE S 706-STEEL USS
S4035395 *** A/S. AXLE S 706-STEEL INLAND
S4041987 *** O/S. OUTPUT 706-STEEL NORTH
S4041992 *** O/S. OUTPUT 706-STEEL USS
S4041997 *** O/S. OUTPUT 706-STEEL USS
S4056841 *** S/S. STAB S 706-STEEL LONE
S4056842 *** S/S STAB S 706-STEEL LONE
S4076604 *** S/S STAB S 706-STEEL NORTH
S4076605 *** S/S STAB S 706-STEEL NORTH
S4076607 *** S/S STAB S 706-STEEL INLAND
S4081407 *** S/S STAB S 706-STEEL LONE
S4081408 *** S/S STAB S 706-STEEL SLATER
S4081409 *** S/S STAB S 706-STEEL SLATER
S4085343 *** SDP.HYP DR 706-STEEL REPUBLIC
S4087728 *** S/S STAB S 706-STEEL LONE
S4089551 *** S/S STAB S 706-STEEL NORTH
S4089552 *** S/S STAB S 706-STEEL NORTH
S4089553 *** S/S STAB S 706-STEEL SLATER
S4089584 *** S/S STAB S 706-STEEL SLATER
S4090006 *** RODS CONNEC 706-STEEL USS
S4101234 *** S/S STAB S 706-STEEL SLATER
S4571682 *** RODS CONNEC 706-STEEL USS
S5521907 *** O/S. OUTPUT 706-STEEL USS
S5521928 *** A/S. AXLE S 706-STEEL USS
S5522068 *** A/S. AXLE S 706-STEEL USS
S5522070 *** A/S. AXLE S 706-STEEL USS
S5524815 *** S/S STAB S 706-STEEL SLATER
S5528807 *** S/S STAB S 706-STEEL LONE
S5548449 *** S/S STAB S 706-STEEL NORTH
S5558116 *** S/S STAB S 706-STEEL LONE
S5558117 *** S/S STAB S 706-STEEL LONE
S5558135 *** S/S STAB S 706-STEEL LONE
S5559835 *** S/S STAB S 706-STEEL LONE
S5559836 *** S/S STAB S 706-STEEL LONE
S5588333 *** HDP. HYP DR 706-STEEL REPUBLIC
S5588366 *** O/S. OUTPUT 706-STEEL USS
S5604384 *** S/S STAB S 706-STEEL LONE
S5604916 *** S/S STAB S 706-STEEL SLATER
S5606832 *** S/S STAB S 706-STEEL SLATER
S5606833 *** S/S STAB S 706-STEEL SLATER
S5612681 *** S/S STAB S 706-STEEL LONE
S566102 *** S/S STAB S 706-STEEL SLATER
S5677613 *** S/S STAB S 706-STEEL NORTH
S5677614 *** S/S STAB S 706-STEEL SLATER
S5677615 *** S/S STAB S 706-STEEL SLATER
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
S5677616 *** S/S STAB S 706-STEEL SLATER
S5684329 *** S/S STAB S 706-STEEL SLATER
S5687308 *** S/S STAB S 706-STEEL NORTH
S5692903 *** S/S STAB S 706-STEEL NORTH
S5697719 *** S/S STAB S 706-STEEL SLATER
S5697720 *** S/S STAB S 706-STEEL SLATER
S5697721 *** S/S STAB S 706-STEEL SLATER
S5697722 *** S/S STAB S 706-STEEL SLATER
S5697723 *** S/S STAB S 706-STEEL SLATER
S5697723 *** S/S STAB S 706-STEEL SLATER
S5961006 *** S/S STAB S 706-STEEL SLATER
S5981886 *** S/S STAB S 706-STEEL NORTH
S6006823 *** O/S. OUTPUT 706-STEEL USS
S6006825 *** O/S. OUTPUT 706-STEEL NORTH
S6007565 *** HDP. HYP DR 706-STEEL USS
S6010414 *** A/S. AXLE S 706-STEEL INLAND
S6010415 *** A/S. AXLE S 706-STEEL USS
S6010416 *** A/S. AXLE S 706-STEEL INALND
S6010417 *** A/S. AXLE S 706-STEEL INALND
S6011161 *** A/S. AXLE S 706-STEEL USS
S6011162 *** A/S. AXLE S 706-STEEL USS
S6011707 *** A/S. AXLE S 706-STEEL USS
S6011708 *** A/S. AXLE S 706-STEEL USS
S6011718 *** A/S. AXLE S 706-STEEL USS
S6011719 *** A/S. AXLE S 706-STEEL USS
S6011811 *** A/S. AXLE S 706-STEEL USS
S6011812 *** A/S. AXLE S 706-STEEL USS
S6013313 *** A/S. AXLE S 706-STEEL INLAND
S6013554 *** O/S OUTPUT 706-STEEL USS
S6014336 *** A/S. AXLE S 706-STEEL INLAND
S6014337 *** A/S. AXLE S 706-STEEL INLAND
S6014743 *** A/S. AXLE S 706-STEEL USS
S6014744 *** A/S. AXLE S 706-STEEL USS
S6020039 *** A/S. AXLE S 706-STEEL USS
S6020040 *** A/S. AXLE S 706-STEEL USS
S6023055 *** BALANCE WGT 706-STEEL WHITTAR
S6024362 *** S/S STAB S 706-STEEL LONE
S6025316 *** S/S STAB S 706-STEEL LONE
S6026777 *** HDP. HYP DR 706-STEEL REPUBLIC
S6027876 *** A/S. AXLE S 706-STEEL STELCO
S6031704 *** O/S. OUTPUT 706-STEEL USS
S6032907 *** S/S STAB S 706-STEEL LONE
S6033003 *** A/S. AXLE S 706-STEEL REPUBLIC
S6033004 *** A/S. AXLE S 706-STEEL REPUBLIC
S6033202 *** A/S. AXLE S 706-STEEL INLAND
S6033677 *** A/S. AXLE S 706-STEEL REPUBLIC
<PAGE>
<CAPTION>
PRODUCTION MATERIAL PRICE LIST
*** BASE
DETROIT PLANTS
(Price to be reduced by ***%)
*** BUDGET P/N COMMODITY CODE &
P/N PRICE DESCRIPTION DESCRIPTION SUPPLIER
<S> <C> <C> <C> <C>
S6037521 *** A/S. AXLE S 706-STEEL REPUBLIC
S6037718 *** HDP. HYP DR 706-STEEL REPUBLIC
S6037725 *** HDP. HYP DR 706-STEEL REPUBLIC
S6039763 *** HDP. HYP DR 706-STEEL REPUBLIC
S6040102 *** O/S. OUTPUT 706-STEEL REPUBLIC
S6040464 *** A/S. AXLE S 706-STEEL REPUBLIC
S7470103 *** A/S. AXLE S 706-STEEL REPUBLIC
S7470104 *** A/S. AXLE S 706-STEEL REPUBLIC
S4740105 *** A/S. AXLE S 706-STEEL REPUBLIC
S7470106 *** A/S. AXLE S 706-STEEL USS
S7470107 *** A/S. AXLE S 706-STEEL USS
S7470113 *** A/S. AXLE S 706-STEEL REPUBLIC
S7470116 *** A/S. AXLE S 706-STEEL REPUBLIC
S7470129 *** A/S. AXLE S 706-STEEL REPUBLIC
S7470130 *** A/S. AXLE S 706-STEEL REPUBLIC
</TABLE>
<PAGE>
EXHIBIT D
Purchase Order
Terms and Conditions
<PAGE>
Exhibit D
PURCHASE ORDER TERMS AND CONDITIONS
1. ACCEPTANCE: Seller has read and understands this order and agrees that
Seller's written acceptance or commencement of any work or service under this
order shall constitute Seller's acceptance of these terms and conditions only.
All terms and conditions proposed by Seller which are different from or in
addition to this order are unacceptable to Buyer, are expressly rejected by
Buyer, and shall not become a part of this order. Any modifications to this
order shall be made in accordance with Paragraph 31.
2. SHIPPING, BILLING AND FLSA CERTIFICATION: Seller agrees: (a) to properly
pack, mark and ship goods in accordance with the requirements of Buyer and
involved carriers in a manner to secure lowest transportation cost; (b) to route
shipments in accordance with instructions from Buyer's Traffic Department; (c)
to make no charge for handling, packaging, storage, transportation or drayage of
goods unless otherwise stated in this order; (d) to provide with each shipment
packing slips with Buyer's order number marked thereon; (e) to properly mark
each package with this order number, the factory, plant and dock number, and
where multiple packages comprise a single shipment, to consecutively number each
package; and (f) to promptly forward the original bill of lading or other
shipping receipt for each shipment in accordance with Buyer's instructions.
Seller will include on bills of lading or other shipping receipts correct
classification identification of the goods shipped in accordance with Buyer's
instructions and carrier's requirements. The marks on each package and
identification of the goods on packing slips, bills of lading and invoices shall
be sufficient to enable Buyer to easily identify the goods purchased. Seller
further agrees: (a) to promptly render, after delivery of goods or performance
of services, correct and complete invoices to Buyer; and (b) to accept payment
by check or, at Buyer's discretion, other cash equivalent (including electronic
transfer of funds). Seller's invoice must include a certification that all goods
were produced in compliance with the applicable requirements of sections 6, 7,
and 12 of the Fair Labor Standards Act, as amended, and of regulations and
orders of the United States Department of Labor issued in connection therewith.
The payment date is set forth on the face side of this order, or if not stated,
shall be on the 25th day of the month following Buyer's receipt of a proper
invoice (except as may otherwise be agreed upon by Buyer and Seller in
connection with a program providing for electronic funds transfer).Time for
payment shall not begin until correct and complete invoices are received, and
Seller's cash discount privileges to Buyer shall be extended until such time as
payment is due. Buyer may withhold payment pending receipt of evidence, in such
form and detail as Buyer may direct, of the absence of any liens, encumbrances
and claims on the goods or services under this order.
3. DELIVERY SCHEDULES: Deliveries shall be made both in quantities and at times
specified in Buyer's schedules. Buyer shall not be required to make payment for
goods delivered to Buyer which are in excess of quantities specified in Buyer's
delivery schedules. Buyer may change the rate of scheduled shipments or direct
temporary suspension of scheduled shipments, neither of which shall entitle
Seller to a modification of the price for goods or services covered by this
order. For orders of goods where quantities and/or delivery schedules are not
specified, Seller shall deliver goods in such quantities and times as Buyer may
direct in subsequent releases.
4. PREMIUM SHIPMENTS: If Seller's acts or omissions result in Seller's failure
to meet Buyer's delivery requirements and Buyer requires a more expeditious
method of transportation for the goods than the transportation method originally
specified by Buyer, Seller shall, at Buyer's option, (i) promptly reimburse
Buyer the difference in cost between the more expeditious method and the
original method, (ii) allow Buyer to reduce its payment of Seller's invoices by
such difference, or (iii) ship the goods as expeditiously as possible at
Seller's expense and invoice Buyer for the amount which Buyer would have paid
for normal shipment.
5. CHANGES: Buyer reserves the right at any time to direct changes, or causae
Seller to make changes, to drawings and specifications of the goods or to
otherwise change the scope of the work covered by this order, including work
with respect to such matters as inspection, testing or quality control, and
Seller agrees to promptly make such changes; any difference in price or time for
performance resulting from such changes shall be equitably adjusted by Buyer
after receipt of documentation in such form and detail as Buyer may direct. Any
changes to this order shall be made in accordance with Paragraph 31.
6. INSPECTION: Seller agrees that Buyer shall have the right to enter Seller's
facility at reasonable times to inspect the facility, goods, materials and any
property of Buyer covered by this order. Buyer's inspection of the goods,
whether during manufacture, prior to delivery or within a reasonable time after
delivery, shall not constitute acceptance of any work-in-process or finished
goods.
7. NONCONFORMING GOODS: To the extent Buyer rejects goods as nonconforming, the
quantities under this order will automatically be reduced unless Buyer otherwise
notifies Seller. Seller will not replace quantities so reduced without a new
order or schedule from Buyer. Nonconforming goods will be held by Buyer for
disposition in accordance with Seller's instructions at Seller's risk. Seller's
failure to provide written instructions within ten (10) days, or such shorter
period as may be commercially reasonable under the circumstances, after notice
of nonconformity shall entitle Buyer, at Buyer's option, to charge Seller for
storage and handling, or to dispose of the goods, without liability to Seller.
Payment for nonconforming goods shall not constitute an acceptance thereof,
limit or impair Buyer's right to assert any legal or equitable remedy, or
relieve Seller's responsibility for latent defects.
8. FORCE MAJEURE: Any delay or failure of either party to perform its
obligations hereunder shall be excused if, and to the extent that it is caused
by an event or occurrence beyond the reasonable control of the party and without
its fault or negligence, such as, by way of example and not by way of
limitation, acts of God, actions by any governmental authority (whether valid or
invalid), fires, floods, windstorms, explosions, riots, natural disasters, wars,
sabotage, labor problems (including lockouts, strikes and slowdowns), inability
to obtain power, material, labor, equipment or transportation, or court
injunction or order; provided that written notice of such delay (including the
anticipated duration of the delay) shall be given by the affected party to the
other party within ten (10) days. During the period of such delay or failure to
perform by Seller, Buyer, at its option may purchase goods from other
<PAGE>
sources and reduce its schedules to Seller by such quantities, without liability
to Seller, or have Seller provide the goods from other sources in quantities and
at times requested by Buyer, and at the price set forth on this order. If
requested by the Buyer Seller shall, within ten (10) days of such request,
provide adequate assurances that the delay shall not exceed thirty (30) days. If
the delay lasts more than thirty (30) days or Seller does not provide adequate
assurance that the delay will cause within thirty (30) days, Buyer may
immediately cancel the order without liability.
9. WARRANTY: Seller expressly warrants that all goods or services covered by
this order will conform to the specifications, drawings, samples, or
descriptions furnished to or by Buyer, and will be merchantable, of good
material and workmanship and free from defect. In addition, Seller acknowledges
that Seller knows of Buyer's intended use and expressly warrants that all goods
covered by this order which have been selected, designated, manufactured, or
assembled by Seller based upon Buyer's stated use, will be fit and sufficient
for the particular purposes intended by Buyer.
10. INGREDIENTS DISCLOSURE AND SPECIAL WARNINGS AND INSTRUCTIONS: If requested
by Buyer, Seller shall promptly furnish to Buyer in such form and detail as
Buyer may direct: (a) a list of all ingredients in the goods purchased
hereunder; (b) the amount of one or more ingredients; and (c) information
concerning any changes in or additions to such ingredients. Prior to and with
the shipment of the goods purchased hereunder, Seller agrees to furnish to Buyer
sufficient warning and notice in writing (including appropriate labels on goods,
containers and packing) of any hazardous material which is an ingredient or a
part of any of the goods, together with such special handling instructions as
may be necessary to advise carriers. Buyer, and their respective employee of how
to exercise that measure of care and precaution which will best prevent bodily
injury or property damage in the handling, transportation, processing, use or
disposal of the goods, containers and packing shipped to Buyer.
11. INSOLVENCY: Buyer may immediately cancel this order without liability to
Seller in the event of the happening of any of the following or any other
comparable event: (a) insolvency of the Seller; (b) filing of a voluntary
petition in bankruptcy by Seller; (c) filing of any involuntary petition in
bankruptcy against Seller; (d) appointment of a receiver or trustee for Seller;
(e) or execution of any assignment for the benefit of creditors by Seller,
provided that such petition, appointment, or assignment is not vacated or
nullified within fifteen (15) days of such event.
12. CANCELLATION FOR BREACH: Buyer reserves the right to cancel all or any part
of this order, without liability to Seller, if Seller: (a) repudiates or
breaches any of the terms of this order, including Seller's warranties; (b)
fails to perform services or deliver goods as specified by Buyer; or (c) fails
to make progress so as to endanger timely and proper completion of services or
delivery of goods; and does not correct such failure or breach within ten (10)
days (or such shorter period of time if commercially reasonable under the
circumstances) after receipt of written notice from Buyer specifying such
failure or breach.
13. TERMINATION: In addition to any other rights of Buyer to cancel or terminate
this order, Buyer may at its option immediately terminate all or any part of
this order, at any time and for any reason, by giving written notice to Seller.
Upon such termination, Buyer shall pay to Seller the following amounts without
duplication: (a) the order price for all goods or services which have been
completed in accordance with this order and not previously paid for; and (b) the
actual cost of work-in-process and raw materials incurred by Seller in
furnishing the goods or services under this order to the extent such costs are
reasonable in amount and are properly allocable or apportionable under generally
accepted accounting principles to the terminated portion of this order; less,
however the reasonable value or cost (whichever is higher) of any goods or
materials used or sold by Seller with Buyer's written consent, and the cost of
any damaged or destroyed goods or material. Buyer will make no payments for
finished goods, work-in process or raw materials fabricated or procured by
Seller in amounts in excess of those authorized in delivery releases nor for any
undelivered goods which are in Seller's standard stock or which are readily
marketable. Payments made under this Paragraph shall not exceed the aggregate
price payable by Buyer for finished goods which would be produced by Seller's
subcontractors, for loss of anticipated profit, unabsorbed overhead, interest on
claims, product development and engineering costs, facilities and equipment
rearrangement costs or rental, unamortized depreciation costs, and general and
administrative burden charges from termination of this order. Within sixty (60)
days from the effective date of termination, Seller shall submit a comprehensive
termination claim to Buyer, with sufficient supporting data to permit Buyer's
audit, and shall thereafter promptly furnish such supplemental and supporting
information as Buyer shall request. Buyer or its agents, shall have the right to
audit and examine all books, records, facilities, work, material, inventories,
and other items relating to any termination claim of Seller.
14. INTELLECTUAL PROPERTY: Seller agrees: (a) to defend, hold harmless and
indemnify Buyer, its successors and customers against all claims, demands,
losses, suits, damages, liability and expenses (including reasonable attorney
fees) arising out of any suit, claim or action for actual or alleged direct or
contributory infringement of, or inducement to infringe, any United States or
foreign patent, trademark, copyright or mask work right by reason of the
manufacture, use or sale of the goods or services ordered, including
infringement arising out of compliance with specifications furnished by Buyer,
or for actual or alleged misuse or misappropriation of a trade secret resulting
directly or indirectly from Seller's actions; (b) to waive any claim against
Buyer under the Uniform Commercial Code or otherwise, including any hold
harmless or similar claim, in any way related to a claim asserted against Seller
or Buyer for patent, trademark, copyright or mask work right infringement or the
like, including claims arising out of compliance with specifications furnished
by Buyer; and (c) to grant to Buyer a worldwide, nonexclusive, royalty-free,
irrevocable license to repair and have repaired,
<PAGE>
to reconstruct and have reconstructed the goods ordered hereunder. Seller
assigns to Buyer all right, title and interest in and to all trademarks,
copyrights and mask work rights n any material created for Buyer under this
order.
15. TECHNICAL INFORMATION DISCLOSED TO BUYER: Seller agrees not to assert any
claim (other than a claim for patent infringement) with respect to any technical
information which Seller shall have disclosed or may hereafter disclose to Buyer
in connection with the goods or services covered by this order.
16. INDEMNIFICATION: If Seller performs any work on Buyer's premises or utilizes
the property of Buyer, whether on or off Buyer's premises, Seller shall
indemnify and hold Buyer harmless from and against any liability, claims,
demands or expenses (including reasonable attorney fees) for damages to the
property of or injuries (including death) to Buyer, its employees or any other
person arising from or in connection with Seller's performance of work or use of
Buyer's property, except for such liability, claim, or demand arising out of the
sole negligence of Buyer.
17. INSURANCE: Seller shall maintain insurance coverage in amounts not less than
the following: (a) Workers' Compensation - Statutory Limits for the state or
states in which this order is to be performed (or evidence of authority to
self-insure); (b) Employer's Liability - $250,000; (c) Comprehensive General
Liability (including Products/Completed Operations and Blanket Contractual
Liability) - $1,000,000 per person, $1,000,000 per occurrence Personal Injury,
and $1,000,000 per occurrence Property Damage, or $1,000,000 per occurrence
Personal Injury and Property Damage combined single limit; and (d) Automobile
Liability (including owned, non-owned and hired vehicles) - $1,000,000 per
person, $1,000,000 per occurrence Personal Injury and $1,000,000 per occurrence
Property Damage, or $1,000,000 per occurrence Personal Injury and Property
Damage combined single limit. At Buyer's request, Seller shall furnish to Buyer
certificates of insurance setting forth the amount(s) of coverage, policy
number(s) and date(s) of expiration for insurance maintained by Seller and, if
further requested by Buyer, such certificates will provide that Buyer shall
receive thirty (30) days' prior written notification from the insurer of any
termination or reduction in the amount of scope of coverages. Seller's purchase
of appropriate insurance coverage or the furnishing of certificates of insurance
shall not release Seller of its obligations or liabilities under this order. In
the event of Seller's breach of this provision, Buyer shall have the right to
cancel the undelivered portion of any goods or services covered by this order
and shall not be required to make further payments except for conforming goods
delivered or services rendered prior to cancellation.
18. TOOLS: Unless otherwise agreed to by Buyer, Seller at its own expense shall
furnish, keep in good condition, and replace when necessary all tools, jigs,
dies, gauges, fixtures, molds and patterns ("Tools") necessary for the
production of the goods. The cost of changes to the Tools necessary to make
design and specification changes authorized by Buyer shall be paid for by Buyer.
Seller shall insure the Tools with full fire and extended coverage insurance for
the replacement value thereof. Seller grants Buyer an irrevocable option to take
possession of and title to the Tools that are special for the production of the
goods upon payment to Seller of the book value thereof less any amounts which
Buyer has previously paid to Seller for the cost of such tools; provided,
however, that this option shall not apply if such tools are used to produce
goods that are the standard stock of Seller or if a substantial quantity of like
goods are being sold by Seller to others.
19. BAILED PROPERTY: All supplies, materials, tools, jigs, dies, gauges,
fixtures, molds, patterns, equipment and other items furnished by Buyer, either
directly or indirectly, to Seller to perform this order, or for which seller has
been reimbursed by Buyer, shall be and remain the property of Buyer. Seller
shall bear the risk of loss of and damage to Buyer's property. Buyer's property
shall at all times be properly housed and maintained by Seller; shall not be
used by Seller for any purpose other than the performance of this order; shall
be deemed to be personalty; shall be conspicuously marked "Property of General
Motors Corporation" by Seller; shall not be commingled with the property of
Seller or with that of a third person; and shall not be moved from Seller's
premises without Buyer's prior written approval. Upon the request of Buyer, such
property shall be immediately released to Buyer or delivered to Buyer by Seller,
either (i) F.O.B. transport equipment at Seller's plant, properly packed and
marked in accordance with the requirements of the carrier selected by buyer to
transport such property, or (ii) to any location designed by Buyer, in which
event Buyer shall pay to Seller the reasonable cost of delivering such property
to such location. Buyer shall have the right to enter onto Seller's premises at
all reasonable times to inspect such property and Seller's records with respect
thereto.
20. REMEDIES: The rights and remedies reserved to Buyer in this order shall be
cumulative, and additional to all other or further remedies provided in law or
equity.
21. DUTY DRAWBACK RIGHTS: This order includes all related customs duty and
import drawback rights, if any (including rights developed by substitution and
rights which may be acquired from seller's suppliers) which Seller can transfer
to Buyer. Seller agrees to inform Buyer of the existence of any such rights and
upon request to supply such documents as may be required to obtain such
drawback.
22. SETOFF: In addition to any right of setoff provided by law, all amounts due
Seller shall be considered net of indebtedness fo Seller to General Motors
Corporation and its subsidiaries; and General Motors Corporation may deduct any
amounts due or to become due from Seller to General Motors Corporation and its
subsidiaries from any sums due or to become due from General Motors Corporation
to Seller.
23. ADVERTISING: Seller shall not, without first obtaining the written consent
of Buyer, in any manner advertise or publish the fact that Seller has contracted
to furnish Buyer the goods or services herein ordered, or use any trademarks or
tradenames of Buyer in Seller's advertising or promotional materials. In the
event of Seller's breach of this provision, Buyer shall have the right to
<PAGE>
cancel the undelivered portion of any goods or services covered by this order
and shall not be required to make further payments except for conforming goods
delivered or services rendered prior to cancellation.
24. GOVERNMENT COMPLIANCE: Seller agrees to comply with all federal, state and
local laws, Executive Orders, rules, regulations and ordinances which may be
applicable to Seller's performance of its obligations under this order.
25. EQUAL OPPORTUNITY AND AFFIRMATIVE ACTION: This order incorporates by
reference: (a) all provisions of 41 C.F.R. 60-1.4, as amended, pertaining to the
equal opportunity clause in government contracts; (b) all provisions of 41
C.F.R. 60- 250, as amended, pertaining to affirmative action for disabled
veterans of the Vietnam Era; and (c) all provisions of 41 C.F.R. 60- 741, as
amended, pertaining to affirmative action for handicapped workers. Seller
certifies that it is in compliance with all applicable provisions of 41 C.F.R.
60-1, including but not limited to: (a) developing and presently having in full
force and effect a written affirmative action compliance program for each of its
establishments as required by 41 C.F.R. 60-1.40, as amended; (b) filing EEO-1
Reports as required by 41 C.F.R. 60-1.7, as amended; and (c) neither maintaining
segregated facilities nor permitting its employees to perform services at
segregated facilities as prohibited by 41 C.F.R. 60-1.8, as amended. Buyer
requests that Seller adopt and implement a policy to extend employment
opportunities to qualified applicants and employees on an equal basis regardless
of an individual's age, race, color, sex, religion or national origin.
26. NO IMPLIED WAIVER: The failure of either party at any time to require
performance by the other party of any provision of this order shall in no way
affect the right to require such performance at any time thereafter, nor shall
the waiver of either party of a breach of any provision of this order constitute
a waiver of any succeeding breach of the same or any other provision.
27. NON-ASSIGNMENT: Seller may not assign or delegate its obligations under this
order without Buyer's prior written consent.
28. RELATIONSHIP OF PARTIES: Seller and Buyer are independent contracting
parties and nothing in this order shall make either party the agent or legal
representative of the other for any purpose whatsoever, nor does it grant either
party any authority to assume or to create any obligation on behalf of or in the
name of the other.
29. GOVERNING LAW: This order is to be construed according to the laws of the
state from which this order issues as shown by the address of Buyer on the face
side of this order.
30. SEVERABILITY: If any term of this order is invalid or unenforceable under
any statute, regulation, ordinance, executive order or other rule of law, such
term shall be deemed reformed or deleted, but only to the extent necessary to
comply with such statute, regulation, ordinance, order or rule, and the
remaining provisions of this order shall remain in full force and effect.
31. ENTIRE AGREEMENT: This order, together with the attachments, exhibits, or
supplements, specifically referenced in this order, constitutes the entire
agreement between Seller and Buyer with respect to the matter contained herein
and supersedes all prior oral or written representations and agreements. This
order may only be modified by a purchase order amendment/alteration issued by
Buyer.
May, 1986
<PAGE>
Exhibit 10.02(a)
AMENDMENT NO. 1 TO COMPONENT SUPPLY AGREEMENT
---------------------------------------------
This Amendment No. 1 to the Component Supply Agreement dated February 28, 1994,
between American Axle & Manufacturing, Inc. ("AAM") and General Motors
Corporation ("GM") is entered into this 28th day of February, 1994. The
Component Supply Agreement is hereby amended by adding a new Section 11.6
thereto which shall read as follows:
11.6 Exhibit A Pricing. Exhibits I, II, III, and IV reflect part
numbers previously disclosed to AAM for parts produced at the Buffalo,
Detroit, Tonawanda, and Three Rivers facilities, respectively. The
parties agree that the prices in the column with the heading designated
as AAM Prices on Exhibits I through IV reflect prices previously
negotiated and agreed upon by the parties and that such prices should
be reflected on Exhibit A. GM further agrees to meet with AAM
immediately after February 28, 1994, to review Exhibit A to confirm
that such prices reflect the prices on Exhibits I through IV as
adjusted for engineering changes, etc., since December 1, 1993 in
accordance with the terms of the Agreement, and if such prices do not
reflect such prices as adjusted then GM agrees to adjust such prices to
be effective as of March 1, 1994, in accordance with the terms of the
Agreement.
In addition, Exhibit A contains part numbers not previously disclosed
to AAM on Exhibits I through IV. GM agrees to meet immediately with AAM
to negotiate in good faith prices for such parts consistent with the
terms, mechanisms and intent of this Agreement. GM also agrees that
Exhibit A represents all parts numbers as of
<PAGE>
2
February 28, 1994, and that any part numbers not on Exhibit A found to
be in existence will be subject to price negotiation in accordance with
the contract.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 as of
this 28th day of February, 1994.
AMERICAN AXLE & GENERAL MOTORS CORPORATION
MANUFACTURING, INC.
By: /s/ Richard E. Dauch By: /s/ Anthony P. Thrubis
-------------------- ---------------------------
Title: President Title: Attorney-in-Fact
<PAGE>
Exhibit 10.02(b)
AMENDMENT NO. 2 TO
COMPONENT SUPPLY AGREEMENT*
THIS AMENDMENT NO. 2 TO COMPONENT SUPPLY AGREEMENT (the
"Amendment"), is entered into as of this 7th day of February, 1996, by AMERICAN
AXLE & MANUFACTURING, INC. ("AAM"), a corporation organized under the laws of
the State of Delaware, and GENERAL MOTORS CORPORATION ("GM"), a corporation
organized under the laws of the State of Delaware.
1. Section 2.3 of the Supply Agreement is hereby deleted in
its entirety and substituted therefor is the following:
2.3 ***
2. Section 3.4 of the Supply Agreement is hereby deleted in
its entirety and substituted therefor is the following:
3.4 Payment Terms.
(a) GM will pay for all Existing Components and New Components
shipped from the GM plants which will be owned by AAM after the Closing, which
are located in Detroit, Michigan; Three Rivers, Michigan; Buffalo, New York; and
Tonawanda, New York (the "AAM Plants") as follows:
(i) All AAM sales of Existing Components or
New Components to GM ***, shall be paid *** in immediately
available funds *** shipment of the product from the AAM
Plants.
(ii) All AAM sales of Existing Components or
New Components to GM ***, shall be paid *** in immediately
available funds *** following shipment of the product from the
AAM Plants.
(iii) All AAM sales of Existing Components or
New Components to GM ***, shall be paid *** in immediately
available funds *** following shipment of the product from the
AAM Plants.
- --------
* Portions of this Exhibit 10.02(b) were omitted and filed separately with the
Secretary of the Securities and Exchange Commission (the "Commission")
pursuant to an application for confidential treatment filed with the
Commission pursuant to Rule 406 under the Securities Act of 1933, as amended.
Such portions are marked by the symbol "***".
<PAGE>
2
(iv) All AAM sales of Existing Components or
New Components to GM ***, shall be paid on the *** following
GM's receipt of shipments ***.
AAM and GM will meet no less frequently than every two (2)
years to discuss payment terms and may modify the above schedule by
joint agreement.
(b) GM will pay for all shipments of Existing Components and
New Components shipped from locations other than the AAM Plants, as that term is
defined in Paragraph 3.4(a), on a ***.
3. Except as specifically set forth above, the Supply
Agreement shall remain in full force and effect and unmodified hereby.
IN WITNESS WHEREOF, GM and AAM have caused this Agreement to
be executed by their duly authorized representatives as of the day and year
first above written.
AMERICAN AXLE &
MANUFACTURING, INC.
By: /s/ Richard E. Dauch
------------------------
Title: President and CEO
GENERAL MOTORS CORPORATION
By: /s/ John Stiles
----------------------------
Title: Executive Director - WWP
<PAGE>
[LETTERHEAD OF WORLDWIDE PURCHASING GM TRUCK GROUP - 800]*
American Axle Manufacturing - Technical Center February 21, 1996
Dave Demos -- Executive Director (Supersedes letter of
Sales, Marketing & Planning January 19, 1996)
2965 Technology Drive
Rochester Hills, Michigan 48309-3589
RE: GMT-800 Letter of Intent.
On behalf of the N.A.O. Worldwide Purchasing Organization, This letter is
being issued to inform you that American Axle Manufacturing (AAM) has been
selected as the Design/Development & Sole Production supplier for the subject
parts for GMT-800 Front & Rear Axle requirements as described below. This
award is based on the quoted piece price and tooling investment as submitted
to GMTG by AAM on December 11, 1995. (See Attachment - A)
- -- Prices do not include cost to pre-fill Axles with oil. (Optional cost
proposed by AAM)
- -- All rear axle prices include assembly of rear brake components, Park
Brake, splash shield, Rotor and caliper to the axle.
- -- Shipping racks and misc. packaging not included.
- -- *Rebillable tooling = ***
- -- Economics: Material established using *** economics (Paragraph 3.6 of
C.S.A.). All other economics (Labor, Burden, Sales & Profit established
at *** pricing.)
- -- SPO: Production price + *** (Pkg).
- -- Prototype cost: See below
PART (As defined by ring gear size. w/Disc. brake components)
Part Number definition - See attachment A.
Front Axle Proto. $ Rear Axle Proto. $**
8.25" *** 8.6" ***
9.25" *** 9.5" ***
10.5" ***
- --------
* Portions of this Exhibit 10.02(c) were omitted and filed separately with
the Secretary of the Securities and Exchange Commission (the
"Commission") pursuant to an application for confidential treatment filed
with the Commission pursuant to Rule 406 under the Securities Act of
1933, as amended. Such portions are marked by the symbol "***".
<PAGE>
February 21, 1996 Pg. 2
American Axle Manufacturing - Technical Center
*AAM will provide a detailed tooling breakdown identifying specific tooling
required by operation with capacity and cost information. AAM will make
available for audit if requested by GMTG. All prices are subject to change
based upon future engineering content.
**Prototype prices based upon a request for a new prototype axle with disc
brakes. Minor changes and or modifications to exist designs with the addition
of disc brakes will reflect a lower price. AAM will provide GMTG with a
complete cost break down of prototype cost if requested. Available for audit
if requested by GMTG
It is AAM's responsibility to aggressively pursue and strive to implement all
cost reduction ideas in accordance with "Article 3" of the Component Supply
Agreement to reduce final product cost to GMTG.
GMTG requests AAM to provide cost details which indicate the progression from
a current 1996 GMT-400 axle to a 1998 GMT-800 axle based on engineering
changes, per the Component Supply Agreement, as requested by GMTG engineering.
You are requested to contact Mr. Don Alley, Design release engineers to
commence your companies participation.
Provided that AAM's participation in this design/development program is
satisfactory, and that your company is able to meet or exceed the agreed upon
terms for quality, technology, product pricing, tooling and timing, we intend
to issue one or more Purchase Orders for 100% of the previously described
(8.6, 9.5, 10.5, 8.25, 9.25) production and service part requirements.
You will be contacted shortly by GMTG Purchasing to review any terms and
conditions additional to those of our RFQ and standard Purchase Order which
will apply to any of our purchases. At that time, GMTG will also review the
procedures which will be followed should the issuance of a Purchase Order for
tooling, prototype or other items be determined by us necessary to support the
GMT-800 program. In this regard, please note that AAM will not be compensated
for its participation in this program unless agreed to by and evidenced by a
Purchase or Purchase Orders with respect to rebillable tooling.
This Letter is being released upon agreement between GM & AAM to amend the
current original Component Supply Agreement to include previously negotiated
changes.
We appreciate the level of commitment which you have shown to date, and look
forward to your participation in the design/development program.
Best regards.
/s/ Thomas A. Liem
THOMAS A. LIEM, - Senior Buyer, A.P. Phone: (810) 696-6411
G.M.T.G., GMT-800 PGM Fax: (810) 696-6432
WORLDWIDE PURCHASING GM: (8) 366-
<PAGE>
February 21, 1996 Pg. 3
American Axle Manufacturing - Technical Center
CC: (Less Attachment - A)
L. Chissus
S. Eckout
A. Hearsch
D. Holt
J. Sbihli
C. Zamjahn
Axle file (w/Attach. - A)
<PAGE>
AXLE LETTER OF INTENT - Attachment - A TO) AAM
Dave Demos - Executive Director
(AAM Quote dated 11-10-95)
FRONT 8.25"
26036553 ***
26036554 ***
26036556 ***
9.25"
26036557 ***
26036558 ***
26036559 ***
26036560 ***
REAR 8.6"
15711501 ***
15711512 ***
15711578 ***
15711514 ***
15711580 ***
15711509 ***
15711510 ***
15711575 ***
15711577 ***
15711584 ***
15711585 ***
15711590 ***
15711591 ***
15738747 ***
15738746 ***
15738748 ***
15738749 ***
9.5"
15711605 ***
15711558 ***
15711559 ***
15711588 ***
15711589 ***
15711562 ***
15711564 ***
15711592 ***
15711594 ***
15711507 ***
15711508 *** 10.5" 10.5"
10.5" 15711573 *** 15711567 ***
15711595 *** 15711603 *** 15711568 ***
15711566 *** 15711610 *** 15711597 ***
15711596 *** 15711574 *** 15711598 ***
15711571 *** 15711604 *** 15711565 ***
15711601 *** 15711611 ***
15711608 *** 15711607 ***
15711572 *** 15711599 ***
<PAGE>
AXLE LETTER OF INTENT - Attachment - A TO) AAM
Dave Demos - Executive Director
(AAM Quote dated 11-10-95)
15711609 *** 15711600 ***
<PAGE>
Exhibit 10.02(d)
[LETTERHEAD OF WORLDWIDE PURCHASING GM TRUCK GROUP - 800]*
American Axle Manufacturing - Technical Center February 21, 1996
Dave Demos-- Executive Director
Sales, Marketing & Planning
2965 Technology Drive
Rochester Hills, Michigan 48309-3589
RE: GMT-800 Letter of Intent.
On behalf of the N.A.O. Worldwide Purchasing Organization, this letter is being
issued to inform you that American Axle Manufacturing (AAM) has been selected as
the Design/Development & Sole Production supplier for the subject parts for
GMT-800 Front & Rear Propshaft requirements as described below. This award is
based on the quoted piece price and tooling investment as submitted to GMTG by
AAM on November 10, 1995. (See Attachment - A)
This Letter is being released upon agreement between GM & AAM to amend the
current original Component Supply Agreement to include previously negotiated
changes.
-- Shipping racks and misc. packaging not included.
-- *Rebillable tooling = ***
-- Economics: Material established using *** economics (Paragraph 3.6 of
C.S.A.). All other economics (Labor, Burden, Sales & Profit)
established at *** pricing.
-- Prototype cost:
Proto. $ Tooling
Front Aux. *** ***
1 pc. *** ***
2 pc. *** ***
*AAM will provide a detailed tooling breakdown indentifying specific tooling
required by operation with capacity and cost information. AAM will make
available for audit if requested by GMTG. All prices are subject to change based
on future engineering content.
- --------
* Portions of this Exhibit 10.02(d) were omitted and filed separately
with the Secretary of the Securities and Exchange Commission (the
"Commission") pursuant to an application for confidential treatment
filed with the Commission pursuant to Rule 406 under the Securities Act
of 1933, as amended. Such portions are marked by the symbol "***".
<PAGE>
February 21, 1996 Pg. 2
American Axle Manufacturing - Technical Center
Dave Demos - Executive Director
It is AAM's responsibility to aggressively pursue and strive to implement all
cost reduction ideas in accordance with "Article 3" of the Component Supply
Agreement to reduce final product cost to GMTG.
GMTG requests AAM to provide cost details which indicate the progression from a
current 1996 GMT-400 Propshaft to a 1998 GMT-800 Propshaft based on engineering
changes, per the Component Supply Agreement, as requested by GMTG engineering.
You are requested to contact our GMTG Design release engineers to commence your
companies participation.
Provided that AAM's participation in this design/development program is
satisfactory, and that your company is able to meet or exceed the agreed upon
terms for quality, technology, product pricing, tooling and timing, we intend to
issue one or more Purchase Orders for 100% of the previously described
production and service part requirements.
You will be contacted shortly by GMTG Purchasing to review any terms and
conditions additional to those of our RFQ and standard Purchase order which will
apply to any of our purchases. At that time, GMTG will also review the
procedures which will be followed should the issuance of a Purchase Order for
tooling, prototype or other items be determined by us necessary to support the
GMT-800 program. In this regard, please note that AAM will not be compensated
for its participation in this program unless agreed to by and evidenced by a
Purchase or Purchase Orders with respect to rebillable tooling.
We appreciate the level of commitment you have shown to date, and look forward
to your participation in the design/development program.
Best regards.
/s/ Thomas A. Liem
THOMAS A. LIEM, - Senior Buyer, A.P. Phone: (810) 696-6411
G.M.T.G., GMT-800 PGM Fax: (810) 696-6432
WORLDWIDE PURCHASING GM: (8) 366-
CC:(Less Attachment - A)
L. Chissus
S. Eckout
A. Hearsch
D. Holt
J. Sbihli
C. Zamjahn
Prop. file (w/Attach. - A)
<PAGE>
<TABLE>
<S> <C>
PROPELLER SHAFT LETTER OF INTENT - Attachment - A TO) AAM
Dave Demos - Executive Director
(AAM Quote dated 11-10-95)
Total Rebillable tooling = ***
</TABLE>
<TABLE>
<S> <C> <C> <C>
FRONT AUX
15719954 ***
15711974 ***
15711973 ***
15711975 ***
1PS1355 1410 JOINT
15713682 SDS
15711968 ***
15713683 *** ***
15711970 *** ***
15711969 *** ***
15711967 ***
1PSS4427
15713623 ***
15711965 ***
15711949 ***
15711959 ***
1PSS4432
15712400 ***
15711962 ***
15713680 ***
15711958 ***
15713677 ***
15711948 ***
2P1355SY
15711992 *** ***
15711984 ***
2P1355
15711991 ***
2PS44
15711978 ***
15713625 ***
15711981 ***
</TABLE>
<PAGE>
Exhibit 10.02(e)
[LETTERHEAD OF AMERICAN AXLE & MANUFACTURING, INC.]*
June 25, 1997
Ms. Kim Buhl
Senior Buyer
GMTG
2000 Centerpoint Parkway
Mail Code: 483-512-1B5
Pontiac, Michigan 48341-3147
Dear Kim:
This revised proposal for the *** Front and Rear Axles is hereby submitted for
your review. As you are aware, AAM and GM have been working together on the
engineering designs for both the front and the rear axles. This close working
relationship has allowed the *** program to proceed within the program timing
while helping to identify and address engineering issues early in the
development process.
The prices provided herein are based on engineering changes required to Existing
Components and the terms and conditions of the Component Supply Agreement under
which AAM is committed to be competitive on future product programs such as
this.
The attached Bill of Material for each axle identifies the budget baseline
prices for included parts and productive material purchased by GM.
The tooling for the front axle is ***, including *** of supplier tooling, and
tooling for the rear axle is *** including *** of supplier tooling. Supplier
tooling will be adjusted based on the results of the final negotiations with the
suppliers.
Based on this proposal, issuance of an appropriate letter of intent is
requested. As your production source, AAM looks forward to working with you and
to contributing to the success of the *** program.
Best regards,
/s/ F.H. Allison
- ------------------
F.H. Allison
Program Manager, GM MST Programs
cc: L. Chissus, D. Demos, T. Liem, B. McKenna
- --------
* Portions of this Exhibit 10.02(e) were omitted and filed separately with
the Secretary of the Securities and Exchange Commission (the
"Commission") pursuant to an application for confidential treatment
filed with the Commission pursuant to Rule 406 under the Securities Act
of 1933, as amended. Such portions are marked by the symbol "***".
<PAGE>
Accepted 6/25/97
/s/ B.G. Mathis
- ----------------
/s/ Brian McKenna
- -----------------
/s/ L.R. Chissus
- -----------------
/s/ D.J. Demos
- --------------
<PAGE>
*** Front Axle
o SORP Date: ***
o Volume: 377,600 annually; 1600 per day
o Volumes quoted are LCR volumes based on 97-01. The MCR volume
is calculated at 424,200 annually and 1840 per day. AAM will
provide axles at the purchase order piece price at that time
up to the MCR levels. [will attach LCR/MCR definition]
o FOB: Detroit, MI
o Piece Price: ***
o Tooling: ***
o AAM - ***
o Supplier - ***
o Prototypes: *** and *** tooling
o Design: AAM will meet the design requirements as
provided in RFQ 2900012268 dated November 15, 1996,
and CEA T104C-011-01 dated November 14, 1996.
o Labor: MY *** Economics
<PAGE>
*** Rear Axle
o SORP Date: ***
o Volume: 450,000 annually; 1906 per day
o Volumes quoted are LCR volumes based on 97-01. The MCR volume
is calculated at 517,076 annually and 2191 per day. AAM will
provide axles at the purchase order piece price at that time
up to the MCR levels. [will attach LCR/MCR definition]
o FOB: Detroit, MI
o Piece Price: ***
o Tooling: ***
o AAM - ***
o Supplier - ***
o Prototypes: *** and *** tooling
o Post Assembly Piercing of Brackets: ***, based on decision by
March 31, 1997
o Design: AAM will meet the design requirements as
provided in RFQ 2900002656 dated February 7, 1997,
and CEA T104C-038 dated January 24, 1997.
o Labor: MY *** Economics
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
*** Front Axle Purchased Parts
- ---------------------------------------------------------------------------------------------------------------------
06/24/97
- ---------------------------------------------------------------------------------------------------------------------
QTY UNIT EXTENDED
PART # DESCRIPTION USED PRICE PRICE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CARRIER ASSEMBLY
- ---------------------------------------------------------------------------------------------------------------------
348200 CONNECTOR, VENT HOSE 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
361705 SHIM, PINION BEARING (.53) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
361721 SHIM, PINION BEARING (.94) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
476753 PLUG, DIFF. FILLER 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
517900 WASHER, PINION FLANGE 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
1237990 NUT, PINION FLANGE 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
3691425 ALCOHOL (USE WITH 3699520) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
3699520 CEMENT, SEALING 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
3974836 COMPOUND, GEAR MARKING 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
3974898 SPACER, PINION BEARING 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9413429 RACE, BEARING 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9417785 ROLLER ASM. 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9417786 RACE, BEARING 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9439880 ROLLER ASM. 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9985038 SPEC, MAT'L (GREASE, LITHIUM) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9985290 SPEC, MAT'L (LUB, SAE80W90) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9985460 SPEC, MAT'L (SEALANT, ANAEROBIC) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9985552 SPEC, MAT'L (SEALANT, ANAEROBIC) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
11503877 BOLT, DIFF. ADJ. LOCK 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14042602 WASHER, DIFF. CARR. PLUG 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14045736 BOLT, DIFF. CARRIER ASM. 10 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14074865 SHIM, PINION BEARING (.96) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14074868 SHIM, PINION BEARING (1.04) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
15588374 PLUG, DRAIN 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
15588383 WASHER, DRAIN PLUG 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26053322 SEAL, UNITIZED OUTPUT 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26054695 ADJUSTER ASM., BEARING (LH) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26057278 LOCK, DIFFERENTIAL ADJUSTER 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-103226 CARRIER DIFF. (RH CAST) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
*** Front Axle Purchased Parts
- ---------------------------------------------------------------------------------------------------------------------
06/24/97
- ---------------------------------------------------------------------------------------------------------------------
QTY UNIT EXTENDED
PART # DESCRIPTION USED PRICE PRICE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
T-103227 CARRIER DIFF. (LH CAST) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-103251 FLANGE ASM., DEFLECTOR 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-11709 BEARING ASM. DIFF. SIDE 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-13391 SEAL ASM., PINION FLANGE 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-14829 ADJUSTER ASM., BEARING (RH) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
DIFFERENTIAL ASSEMBLY
- ---------------------------------------------------------------------------------------------------------------------
CASE ASSEMBLY
- ---------------------------------------------------------------------------------------------------------------------
393132 SCREW, DIFF. PINION SHAFT 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14039589 SHAFT, DIFF. PINION GEAR 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14039598 WASHER, DIFF. SIDE GEAR THRUST 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14039599 WASHER, DIFF. PINION GEAR 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14056135 BOLT, DRIVE GEAR 10 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14056196 SCREW ASM., PINION SHAFT LOCK 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26046002 CASE, DIFFERENTIAL (CAST) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
DISCONNECT HOUSING ASSEMBLY
- ---------------------------------------------------------------------------------------------------------------------
9417901 FITTING, TYPE C/D LUBRICATION 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
9985460 SPEC., MAT'L (SEALANT, ANAEROBIC) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
14045736 BOLT, DIFF CARRIER ASM. 3 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26030270 WASHER, DIFF. CARRIER THRUST 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26036092 SLEEVE, DIFFERENTIAL 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26041515 BEARING ASM., DIFF OUTPUT SHAFT 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26041516 BEARING ASM., ROLLER 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26053322 SEAL ASM., UNITIZED 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26053326 BEARING ASM., DIFF. OUTPUT SHAFT 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26059623 SEAL ASM., UNITIZED 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
26053317M CAP, PROTECTOR 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-103186 CONNECTOR, DIFF. CARRIER 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-103230 ASM., ACTUATOR 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-103231 FORK, SHIFTER 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
*** Front Axle Purchased Parts
- ---------------------------------------------------------------------------------------------------------------------
06/24/97
- ---------------------------------------------------------------------------------------------------------------------
QTY UNIT EXTENDED
PART # DESCRIPTION USED PRICE PRICE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
T-103232 SPRING, DIFF. SHIFTER 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-103233 WASHER, THRUST (LH & RH) 2 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-13792 HOUSING, DISCONNECT (LH) CAST 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-13793 HOUSING, DISCONNECT (RH) CAST 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
OUTPUT SHAFT ASSEMBLY
- ---------------------------------------------------------------------------------------------------------------------
14041989 RING, DIFF. SHAFT 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
INTERMEDIATE SHAFT ASSEMBLY
- ---------------------------------------------------------------------------------------------------------------------
14041989 RING, DIFF SHAFT 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
T-13791 SHAFT, INTERMEDIATE (mtl) 1 *** ***
- ---------------------------------------------------------------------------------------------------------------------
GM PURCHASED PARTS TOTAL ***
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
*** Front Axle
Supplier Tooling
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
PART # DESCRIPTION SUPPLIER TOOLING
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
7.25" FRONT AXLE ASM
CARRIER ASSEMBLY
T-14829 ADJUSTER ASM., BEARING (RH) ***
26054695 ADJUSTER ASM., BEARING (LH) -
T-103251 FLANGE ASM., DEFLECTOR ***
T-103227 CARRIER DIFF. (LH CAST) ***
T-103226 CARRIER DIFF. (RH CAST) ***
T-13391 SEAL ASM., PINION FLANGE ***
26046002 DIFFERENTIAL CASE CASTING ***
DISCONNECT HOUSING ASSEMBLY
T-13793 HOUSING, DISCONNECT (RH) CAST ***
T-103230 ASM., ACTUATOR ***
T-103233 WASHER, DIFF. CARRIER THRUST ***
T-103231 FORK, SHIFTER ***
T-13792 HOUSING, DISCONNECT. (LH) ***
T-103186 CONNECTOR, DIFF. CARRIER ***
26053317MP CAP, PROTECTOR ***
***
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
*** Rear Axle Purchased Parts
- --------------------------------------------------------------------------------------------------------------------------------
Issued 6/25/97
- --------------------------------------------------------------------------------------------------------------------------------
EXTENDED
PART # DESCRIPTION QTY USED UNIT PRICE PRICE
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REAR AXLE ASSEMBLY
- --------------------------------------------------------------------------------------------------------------------------------
344171 LOCK/AXLE SHAFT 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
3787240 MAGNET-CHIP 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
11502737 PUSHNUT 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
14072930 VENT/PLUG 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
15981244 CLIP/COVER PAN 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
11515756 BOLT/CARR COVER 10 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
11516787 BOLT ASM METRIC 4 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
11516788 BOLT ASM METRIC 8 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15010 COVER/DIFF 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15031 GASKET 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
LABEL 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TUBE ASSEMBLY LH
- --------------------------------------------------------------------------------------------------------------------------------
26038488 BRKT-STAB BAR 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-14781 BRKT/RR SHOCK 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-14782 BRKT/UPPER CONT 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15008 BRACKET/LOW CNT 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15011 BRKT ASM/SEAT-TR 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15018 TUBE AXLE LH-T-15087 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TUBE ASSEMBLY RH
- --------------------------------------------------------------------------------------------------------------------------------
26038488 BRKT-STAB BAR 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-14781 BRKT/RR SHOCK 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-14782 BRKT/UPPER CONT 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-14783 SEAT/RR SPRING 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15019 TUBE AXLE RH-T-15088 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
*** Rear Axle Purchased Parts
- --------------------------------------------------------------------------------------------------------------------------------
Issued 6/25/97
- --------------------------------------------------------------------------------------------------------------------------------
EXTENDED
PART # DESCRIPTION QTY USED UNIT PRICE PRICE
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
AXLE SHAFT ASM LH/RH
- --------------------------------------------------------------------------------------------------------------------------------
15027048 BOLTS 10 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
*** TUBE AND CARRIER ASM
- --------------------------------------------------------------------------------------------------------------------------------
26034960 SLUG WELD 6 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
40001710 SEAL/WHEEL 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
15588288 BEARING, WHEEL 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
LUBE #330 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
CARRIER-DIFF ASSY
- --------------------------------------------------------------------------------------------------------------------------------
394321 SHIM/PINION BRG 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
517900 WASHER/PINION FLANGE 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
9417784 BRG ASM, SMALL PINION 1 -
- --------------------------------------------------------------------------------------------------------------------------------
9417785 BEARING 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
9417786 RACE 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
783762 NUT/DRIVE PINION 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
14066913 BOLT/RING GEAR 10 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
26053758 BRG ASM, HEAD BRG 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
26053759 RACE (1.440) 1 - -
- --------------------------------------------------------------------------------------------------------------------------------
26053760 BEARING (2.77) 1 - -
- --------------------------------------------------------------------------------------------------------------------------------
26061062 SHIM, DIFF BRG ADJ 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
26062361 DIFF BRG ASM, TAPERED ROLLER 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-11557 SEAL/PINION OIL 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-11924 SLEEVE 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15040 PLUG DRAIN 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15041 SEAL/PLUG 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
CEMENT 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
LUBE #330 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
SEALANT/TUBE 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
*** Rear Axle Purchased Parts
- --------------------------------------------------------------------------------------------------------------------------------
Issued 6/25/97
- --------------------------------------------------------------------------------------------------------------------------------
EXTENDED
PART # DESCRIPTION QTY USED UNIT PRICE PRICE
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
CARRIER & CAP ASSY
- --------------------------------------------------------------------------------------------------------------------------------
1194135 BRG CAP BOLT 4 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
26066366 CAP/DIFF BRG (CAST) 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-15002 CARRIER CASTING 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
DIFF CASE ASM
- --------------------------------------------------------------------------------------------------------------------------------
393132 SCREW DIFF PIN 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
26041179 WASHER DIFF PIN 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
26041321 CROSS PIN 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-103106 WASHER/SIDE GR 2 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
T-14998 CASE/DIFF CASTING (T-15000) 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
PHOS COAT 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
PINION FLANGE & DEFL ASSEMBLY
- --------------------------------------------------------------------------------------------------------------------------------
7827669 PINION FLANGE CASTING 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
7827718 DEFLECT 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
7828416 WEIGHT BAL 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
7828534 WEIGHT BAL 1 *** ***
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL OF PURCHASED PARTS ***
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
*** Rear Axle
Supplier Tooling
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
PART # DESCRIPTION TOOLING
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
T-15088 TUBE AXLE, RH -
- ----------------------------------------------------------------------------------------------------------
& T-15087 TUBE AXLE, LH ***
- ----------------------------------------------------------------------------------------------------------
T-14783 SEAT/REAR SPRING ***
- ----------------------------------------------------------------------------------------------------------
T-14787 BRACKET/TRAC BAR ***
- ----------------------------------------------------------------------------------------------------------
T-14781 BRACKET/RR SHOCK ***
- ----------------------------------------------------------------------------------------------------------
T-14782 BRACKET/RR UPPER ***
- ----------------------------------------------------------------------------------------------------------
T-15008 BRACKET/RR LOWER ***
- ----------------------------------------------------------------------------------------------------------
T-15002 CARRIER/CAST ***
- ----------------------------------------------------------------------------------------------------------
T-14998 CASE/CAST ***
- ----------------------------------------------------------------------------------------------------------
26066366 CAP/DIFF BRG CAST ***
- ----------------------------------------------------------------------------------------------------------
26061062 (TYP) DIFF BRG ADJ ***
- ----------------------------------------------------------------------------------------------------------
T-15040 DRAIN PLUG ***
- ----------------------------------------------------------------------------------------------------------
T-15041 SEAT/PLUG ***
- ----------------------------------------------------------------------------------------------------------
T-15010 COVER/DIFF CARRIER ***
- ----------------------------------------------------------------------------------------------------------
T-15009 GASKET/DIFF CARR -
- ----------------------------------------------------------------------------------------------------------
BRG ADJUSTER ***
- ----------------------------------------------------------------------------------------------------------
T-103106 WASHER, SIDE GEAR THRUST ***
- ----------------------------------------------------------------------------------------------------------
T-11557 DRIVE PINION SEAL ***
- ----------------------------------------------------------------------------------------------------------
T-11924 SLEEVE ***]
- ----------------------------------------------------------------------------------------------------------
40001710 SEAL ASM, WHEEL BEARING ***
- ----------------------------------------------------------------------------------------------------------
T-15011 BRKT ASM, REAR SPRING SEAT & ***
TRAC BAR
- ----------------------------------------------------------------------------------------------------------
378240 MAGNET, CHIP COLLECTOR ***
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
***]
- ----------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Attachment to Letter dated 6/25/97
***
1. *** price increase to both Front & Rear Axle
*** Front
*** Rear
2. F *** (+***) cap ***
R *** (+***) cap ***
If lower--AAM benefits
3. Steel equals market price at SORP Budged Base
4. Address omissions of Part No.'s in Base
5. Mat'l pass through begins at SORP
<PAGE>
Exhibit 10.02(f)
AMENDED AND RESTATED
MEMORANDUM OF UNDERSTANDING*
THIS MEMORANDUM OF UNDERSTANDING ("MOU"), dated this 2nd day of September,
1997, by and between American Axle & Manufacturing, Inc. ("AAM") and General
Motors Corporation ("GM").
WHEREAS, AAM, American Axle & Manufacturing of Michigan, Inc., Jupiter
Capital Corporation, Richard E. Dauch and Morton E. Harris may enter into a
Recapitalization and Stock Purchase Agreement ("RSP Agreement") with AAM
Acquisition, Inc., an affiliate of the Blackstone Group ("Blackstone").
WHEREAS, GM has requested modification of the present relationship with AAM
with respect to amending the Component Supply Agreement by and between AAM and
GM dated February 28, 1994, ("CSA").
WHEREAS, AAM is willing to amend the CSA provided that the closing of the
RSP Agreement with Blackstone occurs.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound, hereby mutually agree (expressly subject to the terms and
conditions set forth below) as follows:
1. AAM and GM will enter into Lifetime Program Contracts, applicable
for the life of each new and/or current NAO vehicle program listed on
Exhibit 1 attached hereto, including any derivatives later added to the NAO
platform. Such contracts for existing sourced programs will be executed by
December 1, 1997. Such Lifetime Program Contracts will have the
characteristics set forth in Exhibit 1 and will be documented in a form
substantially similar to Exhibit 2 attached hereto.
a. Lifetime Program Contract price reductions for each vehicle program
listed on Exhibit 1 will be made in each of the designated model years of
the amount shown in Exhibit 1.
b. AAM and GM will develop a mutually satisfactory plan to transition
the purchasing of Productive Material for AAM from GM to AAM to be
implemented no later than December 31, 2002. The material provisions of the
CSA (Section 3.6) shall apply until such transition is completed.
Thereafter, AAM shall be permitted to participate in GM's then current
Steel Resale Program and in GM's then current
- --------------
* Portions of this Exhibit 10.02(f) were omitted and filed separately with
the Secretary of the Securities and Exchange Commission (the "Commission")
pursuant to an application for confidential treatment filed with the
Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended. Such portions are marked by the symbol "***".
<PAGE>
pricing adjustment policy for non-ferrous metals. The parties will handle
jointly any significant events creating material cost increases.
GMT800 Program productive materials shall be handled in accordance with
Paragraph 3.6 of the Component Supply Agreement (CSA) with the only exception
being that, provided this MOU becomes effective, the base line prices as set
forth in Exhibits 3 through 19 will be used rather than the *** prices contained
in Exhibit C to the CSA. These base line prices will only be applicable for
computations involving GMT800 Programs productive material parts.
Any changes resulting from the pricing shown on Exhibits 3 thorough 19
shall be handled as follows:
***
***
Prices shown on Exhibits 3 thorough 19 are exclusive of separately
priced engineering changes (subject to review).
Productive material freight rate changes resulting from previous and future
changes in freight rates and resourcing to other geographical locations, which
are controlled by GM, shall remain the responsibility of GM. The Component
Supply Agreement continues to govern with respect to productive material
freight.
c. After implementation of the transition of the purchasing function as set
forth herein and the inclusion of all Existing Components (as defined in the
CSA) to Lifetime Program Contracts, the Component Supply Agreements will be
cancelled and superseded no earlier than March 1, 2001 by such Lifetime Program
Contracts.
2. For the period commencing ***, and ending ***, the *** payments required
to be made by GM to AAM under the *** agreement, dated as of February 17, 1997,
by and between GM and AAM, shall be ***.
3. New vehicle programs as listed below that involve the replacement of
Existing Components will be sourced in accordance with the CSA, but in any event
AAM will at least have right of last refusal in bidding on such affected
components. Upon being sourced, lifetime program contracts will be utilized.
M/L Van - replacement not determined
F Car - provided a replacement is designated within two (2)
years of cancellation
The parties acknowledge that the components supplied by AAM for GMT 325
program vehicles are Existing Components under the Component Supply Agreement
and subject to that agreement's terms and conditions. The product design of, and
the procurement
<PAGE>
activities for the *** program are not the responsibility of GM. In view of the
fact that the *** program replaces ***, GM agrees to recommend and support AAM
with respect to sourcing of *** components provided AAM is competitive with
respect to quality, service and price.
4. ***
5. Effective January 1, 1998, Article 9 of the CSA, relative to the right
of GM to purchase scrap material from AAM, is deleted in its entirety. However,
this shall not preclude GM from bidding on such material.
6. AAM shall be included in GM's global bid list for the international
sourcing of components which, in GM's reasonable opinion, AAM is qualified to
supply. Such inclusion shall be communicated as appropriate within the GM
organization. It is understood that GM retains the right to remove AAM from the
global bid list for nonperformance.
7. This MOU shall only become effective and operative immediately after the
closing of the transactions described in the RSP Agreement with Blackstone, with
implementation of the agreements and modifications set forth in this MOU to
begin as soon as practicable after the closing. Until the closing of the
transactions described in the RSP Agreement with Blackstone, the CSA shall
continue in full force and effect as the same is now in effect. If there is not
a closing on or before September 30, 1997, of the RSP Agreement with Blackstone,
the CSA shall continue in full force and effect as the same is now in effect. If
there is not a closing on or before September 30, 1997, of the RSP Agreement
with Blackstone pursuant to the provisions of said RSP Agreement, this MOU shall
never become effective or operative and shall be null and void; furthermore, the
CSA shall continue as the same is now in effect and AAM shall be under no
obligation whatsoever to amend the CSA.
IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto
have caused this MOU to be executed on the date first set forth above.
AMERICAN AXLE & GENERAL MOTORS CORPORATION
MANUFACTURING, INC.
By: /s/ Richard E. Dauch By: /s/ John Stiles
------------------------------------ --------------------------------
Title: President and CEO Title: Executive Director - WWP
--------------------------------- -----------------------------
<PAGE>
Exhibit 1
LIFETIME PROGRAM CONTRACT CHARACTERISTICS
Characteristics of Lifetime Program Contracts will conform to the
following:
o Mutually agreed component prices. It has previously been
agreed that AAM will be competitive (U.S. and Canadian
production) on future GM programs and product Families by
March 1, 2001.
o Productive material provisions would be continued under the
present arrangement under the CSA as set forth in the MOU
dated September 2, 1997, to which this is an attachment.
Price changes, if any, to component prices:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Model Year
- ------------------------------------------------------------------------------------------------------------------------------------
Program 2002 2003 2004 2005 2006 2007 2008 2009 2010
------- ---- ---- ---- ---- ---- ---- ---- ---- ----
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
*** axles....................... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
*** Components other than axles. *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
GMT 600......................... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
GMT 800......................... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
GMT 560 axles................... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
GMT 560 Components other than
axles........................... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
M/L Van......................... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
GMT 400, 325, 330............... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
F-Car........................... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
Spindles/Stab Bar............... *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
Other Components................ *** *** *** *** *** *** *** *** ***
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The terms and conditions set forth in the attached Model Lifetime Program
Contract.
<PAGE>
Exhibit 2
MODEL
LIFETIME PROGRAM CONTRACT
BETWEEN GENERAL MOTORS CORPORATION
NORTH AMERICAN OPERATIONS ("BUYER") AND
AMERICAN AXLE & MANUFACTURING, INC. ("SELLER")
1. Purchase of Product
Seller agrees to sell, and Buyer agrees to purchase, 100% of Buyer's production
and service requirements for the following product (the "Product" or "Goods"):
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Part Number Description Per Unit Price Annual Daily Tool Capacity
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
See Attached Schedule
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
2. Term
The term of this Agreement is for the "life of the Product", which is defined as
the duration of the ____________ style presently projected to run from _________
through ___________.
3. Prices: Price Reduction
The per unit price of the Product is F.O.B. Seller's Plant. Price for model year
__________ is subject to the following annual percentage reduction from the
prior year's price:
Model Year
Model Year
Model Year
Model Year
Succeeding Years NO REDUCTION
Purchase of Productive Material by Buyer for Seller shall continue through
December 31, 2002, or such earlier date established by agreement of AAM and GM.
Thereafter, except for increases or decreases in Seller's cost by reason of
Seller's participation in Buyer's Steel Resale Program; Buyer's pricing
adjustment policy(ies) for non-ferrous metals; or permitted under Buyer's
Purchase Order Terms and Conditions no adjustments will be made hereunder for
increases or decreases in Seller's costs for materials. Except for the increases
or decreases set forth above, no other pricing adjustments (e.g. labor or
overhead) will be made except by agreement between AAM and GM.
In addition, Buyer and Seller will use their best efforts to implement cost
savings and productivity improvements, as set forth in Exhibit A attached
hereto, in order to reduce Seller's costs, with the understanding the 50 percent
(50%) of jointly achieved net savings (after deduction of expenditures of
development, applications, engineering tools, prototypes
<PAGE>
and financing) will be applied to reduce the price of the Product to Buyer and
the balance will be for the benefit of Seller.
4. Supplier Development; Quality Control
Seller agrees to participate in Buyer's supplier quality and development
program(s). In addition, Seller shall comply with all quality requirements and
procedures specified by Buyer, as the same may be revised from time to time,
including those applicable to Seller as set forth in Quality System Requirements
QS-9000.
5. Right to Purchase from Others
5.1 Seller will assure that the Product remains competitive in terms of
technology, design, and quality with similar goods available to Buyer during the
term of this Agreement. If, in the reasonable opinion of Buyer, the product does
not remain competitive, Buyer, to the extent it is free to do so, will advise
Seller in writing of the area(s) in which another product is more competitive
with respect to technology, design or quality. If, within 150 days, Seller does
not agree to immediately sell the Product with comparable technology, design or
quality, Buyer may give notice of termination of this Agreement and after a
period of one (1) year after such notice may purchase from another supplier
without liability to Seller.
5.2 It is agreed by the parties that nothing in this Paragraph 5 shall modify or
otherwise limit Buyer's right under Paragraph 12 ("Cancellation") of Buyer's
Purchase Order Terms and Conditions.
6. Technical Information: Waiver of Claims
6.1 Buyer and Seller will cooperate to create, maintain, update and share
technical information about the Product and its manufacture, without
restriction, as needed, and in compliance with Buyer's drafting and math data
standards.
6.2 In the event Buyer exercises its right to terminate or cancel this
Agreement, for reasons other than those set forth in Paragraph 5 above, and then
makes the Product or purchases the Product from another supplier, Seller agrees
not to bring any action or claim against Buyer, it suppliers, dealers, or
customers for any reason, excluding any claim for infringement of patents or
other proprietary rights, arising from the manufacture, use and sale of the
Product or use of the information furnished by Seller to Buyer under this
Agreement. Seller will secure the necessary agreements with its employees and
sub-contractors to assure compliance with this Section 6.
7. Purchase Order Terms and Conditions
<PAGE>
Buyer's Purchase Order Terms and Conditions (1986), a copy of which is attached,
are hereby incorporated into this Agreement by reference. It is understood that
Paragraph 13 TERMINATION will not be applicable with respect to this contract.
Any amendment to or revision of such Terms and Conditions shall also become a
part hereof, provided that: (i) Buyer provides Seller with a copy of the Terms
and Conditions as amended or revised; and (ii) Seller does not object to said
amendment or revised Terms and Conditions within thirty (30) days after receipt.
The Terms and Conditions and any amendment or revision made a part thereof shall
be construed, to the extent possible, as consistent with the terms and
conditions asset forth herein and as cumulative; provided, however, that if such
construction is unreasonable, terms and conditions set forth herein shall
control.
This Agreement is effective upon its execution. The parties hereby agree that
this agreement supersedes the Component Supply Agreement between them, dated
February 28, 1994, as amended, as it relates to the subject matter contained
herein and removes any requirement with respect to components covered hereby for
GM to give notice of non-renewal under such agreement.
Seller Buyer
By: By:
-------------------------------- --------------------------------
Title: Title:
------------------------------ -----------------------------
Date: Date:
------------------------------- -----------------------------
<PAGE>
Exhibit A
"LIFETIME CONTRACT COST SAVINGS"
Some examples of Cost Savings which shall be shared equally by the parties
are set forth in (a), (b), and (c) below:
(a) AAM requests from GM Engineering a dimensional change in an
Existing Component that reduces scrap and improves efficiency. If granted,
the savings with respect to that Existing Component would be shared equally
by the two parties.
(b) GM and AAM are both working on deproliferation of Existing
Component Part Numbers by changing parts to commonize them. Savings with
respect to such Existing Components would be shared by the two parties.
(c) AAM or GM requests a material change applicable to a particular
Existing Component or Components that would improve efficiency or reduce
tool costs. These savings with respect to such Existing Components would be
shared equally by the two parties.
Improvements which are not attributable to specific components and
improvements in processing, operating conditions, labor efficiency, scrap
reduction, or any other area made by AAM as a result of its management expertise
and knowledge or contributions by AAM employees, without any input from GM, are
not included in the Cost Savings computation and are the exclusive property of
AAM.
<PAGE>
Exhibit #3
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
8.6" Axle CLIP, BRK CROSSOVER PIPE 15030046 *** DAJACO IND 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
Leaf SCREW, DIFF PINION SHAFT 393132 *** RING SCREW 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
Open WASHER, DIFF SIDE GEAR 40000160 *** AMG NO P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
54736 SHIM, PINION BEARING 394321 *** AMG IND. 9NI0034
(.020)
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, FILLER 444788 *** GEN PLUG MF 9NI0167
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (CB 26061095 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 517900 *** PROGRESSIVE 9NI0035
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 1234726 *** WAGNER IND 9NI0030
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEX (7/16-14 X 2.25) 3818764 *** COLD HEAD 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, AXLE SHAFT 3833322 *** AETNA IND 9NI0005
- ------------------------------------------------------------------------------------------------------------------------------------
CAP, DIFF BEARING 26066366 *** WAGNER CAST 9NI0102
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF PINION 3984818 *** BRIGHTON 9NI0017
THRUST TOOL
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, DIFFERENTIAL BRG 26061062 *** SPARTA FO 9NI0012
(.210)
- ------------------------------------------------------------------------------------------------------------------------------------
GASKET, DIFF CARRIER 26066456 *** HOOSIER GAS 9NI0392
COVER
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (TB 9413428 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB Cup) 9413429 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (CB Cup) 26061096 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, REAR AXLE DRIVE 9783762 *** IND AUT FAS 9NI0172
PINION
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, AXLE BAR CODE 14050331 *** MCARTHUR 9WI0047
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, SPECIAL RING GEAR 14066913 *** RINGSCREW 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR, VENT HOSE 26063647 *** GREENDALE 9NI0050
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #3
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE ASM, PINION 26060876 *** SIMPSON IND 9NI0386
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, SHOCK 26060755 *** IROQUOIS DIE 9NI0089
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, BUMPER JOUNCE 15562338 *** SUPERB MFG 9NI0031
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-LH 26060756 *** ALPHA STMP 9NI0272
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-RH 26060756 *** ALPHA STMP 9NI0272
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, REAR WHEEL 15027048 *** INGERSOL FAS 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, ROLLER 15588288 *** TORRINGTON 9NI0184
(WB)
- ------------------------------------------------------------------------------------------------------------------------------------
COVER, DIFF CARRIER 26067289 *** PEREGRINE 9NI0389
- ------------------------------------------------------------------------------------------------------------------------------------
CASE, DIFFERENTIAL 26060749 *** INTERMET FO 9NI0275
(CASTING)
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE, AXLE 26060757 *** USM 9NI0080
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, PINION OIL 26064028 *** FREUDENBERG 9NI0379
- ------------------------------------------------------------------------------------------------------------------------------------
SLUG, WELD 26034712 *** C&S ENG 9NI0214
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (CAST) 26060747 *** GMPOWERTR 9NI0385
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, WHEEL 40001710 *** FREUNDENBER 9NI0114
BEARING
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, CARRIER COVER 40002169 *** INGERSOLL FA 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (HB Cup) 26053759 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (HB 26053760 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
SHAFT, DIFF PINION 26056109 *** MTG 9NI0108
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DRAIN 40000848 *** CHICAGO R.H. NO P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002620 *** ALPHA 9NI0272
ASM.
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002893 *** ALPHA 9NI0272
ASM.
- ------------------------------------------------------------------------------------------------------------------------------------
DRIVE PINION (SAW CUT) 26055128 *** COLD SAW 9Y00003
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHT, PINION FLG S6023055 *** WHITTAR 9WI0034
BALANCE
- -----------------------------------------------------------------------------------------------------------------------------------
4320 PINION GEAR RAW S26055128 *** REPUBLIC RWCQ4
STEEL
- -----------------------------------------------------------------------------------------------------------------------------------
8822 DIFF SIDE GEARS S40000163 *** REPUBLIC RWCQ4
- -----------------------------------------------------------------------------------------------------------------------------------
8822 DIFF PINION GEARS S6049571 *** REPUBLIC RWCQ4
- -----------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW S40003708 *** REPUBLIC RWCQ4
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #3
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 Supplier P.O. Number
Part Baseline
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1050 AXLE SHAFT RAW S6060760 *** INLAND RWCQ9
STEEL
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #4
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
8.6" Axle CLIP, BRK CROSSOVER PIPE 15030046 *** DAJACO IND 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
Leaf SHIM, PINION BEARING 394321 *** AMG IND. 9NI0034
(.020)
- ------------------------------------------------------------------------------------------------------------------------------------
L/D PLUG, FILLER 444788 *** GEN PLUG MF 9NI0167
- ------------------------------------------------------------------------------------------------------------------------------------
54736 ROLLER ASM, BEARING (CB 26061095 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 517900 *** PROGRESIV 9NI0035
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 1234726 *** WAGNER IND 9NI0030
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEX (7/16-14 X 2.25) 3818764 *** COLD HEAD 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, AXLE SHAFT 3833322 *** AETNA IND 9NI0005
- ------------------------------------------------------------------------------------------------------------------------------------
CAP, DIFF BEARING 26066366 *** WAGNER CAST 9NI0102
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, DIFFERENTIAL BRG 26061062 *** SPARTA FO 9NI0012
(.210)
- ------------------------------------------------------------------------------------------------------------------------------------
GASKET, DIFF CARRIER 26066456 *** HOOSIER GAS 9NI0392
COVER
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (TB 9413428 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB Cup) 9413429 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (CB Cup) 26061096 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, REAR AXLE DRIVE 9783762 *** IND AUT FAS 9NI0172
PINION
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, AXLE BAR CODE 14050331 *** MCARTHUR 9WI0047
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, SPECIAL RING GEAR 14066913 *** RINGSCREW 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR, VENT HOSE 26063647 *** GREENDALE 9NI0050
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE ASM, PINION 26060876 *** SIMPSON IND 9NI0386
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, SHOCK 26060755 *** IROQUOIS DIE 9NI0089
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, BUMPER JOUNCE 15562338 *** SUPERB MFG 9NI0031
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-LH 26060756 *** ALPHA STMP 9NI0272
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #4
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-RH 26060756 *** ALPHA STMP 9NI0272
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, REAR WHEEL 15027048 *** INGERSOL FAS 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, ROLLER 15588288 *** TORRINGTON 9NI0184
(WB)
- ------------------------------------------------------------------------------------------------------------------------------------
COVER, DIFF CARRIER 26067289 *** PEREGRINE 9NI0389
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE, AXLE 26060757 *** USM 9NI0080
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, PINION OIL 26064028 *** FREUDENBERG 9NI0379
- ------------------------------------------------------------------------------------------------------------------------------------
SLUG, WELD 26034712 *** C&S ENG 9NI0214
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (CAST) 26060747 *** GMPOWERTR 9NI0385
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, WHEEL 40001710 *** FREUNDENBER 9NI0114
BEARING
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, CARRIER COVER 40002169 *** INGERSOLL FA 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (HB Cup) 26053759 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (HB 26053760 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DRAIN 40000848 *** CHICAGO R.H. NO P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002620 *** ALPHA 9NI0272
ASM.
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002893 *** ALPHA 9NI0272
ASM.
- ------------------------------------------------------------------------------------------------------------------------------------
LOCKING DIFFERENTIAL 26061260A *** EATON 9NI0084
ASM
- ------------------------------------------------------------------------------------------------------------------------------------
DRIVE PINION (SAW CUT) 26055128 *** COLD SAW 9Y00003
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHT, PINION FLG S6023055 *** WHITTAR 9WI0034
BALANCE
- ------------------------------------------------------------------------------------------------------------------------------------
4320 PINION GEAR RAW S26055128 *** REPUBLIC RWCQ4
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW S40003708 *** REPUBLIC RWCQ4
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
1050 AXLE SHAFT RAW S6060760 *** INLAND RWCQ9
STEEL
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #5
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
8.6" Axle CLIP, BRK CROSSOVER PIPE 15030046 *** DAJACO IND 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
Multi-Link SCREW, DIFF PINION SHAFT 393132 *** RING SCREW 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
Open WASHER, DIFF SIDE GEAR 40000160 *** AMG No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, PINION BEARING 394321 *** AMG IND. 9NI0034
(.020)
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, FILLER 444788 *** GEN PLUG MF 9NI0167
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (CB 26061095 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 517900 *** PROGRESIV 9NI0035
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 1234726 *** WAGNER IND 9NI0030
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEX (7/16-14 X 2.25) 3818764 *** COLD HEAD 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, AXLE SHAFT 3833322 *** AETNA IND 9NI0005
- ------------------------------------------------------------------------------------------------------------------------------------
CAP, DIFF BEARING 26066366 *** WAGNER CAST 9NI0102
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF PINION 3984818 *** BRIGHTON 9NI0017
THRUST TOOL
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, DIFFERENTIAL BRG 26061062 *** SPARTA FO 9NI0012
(.210)
- ------------------------------------------------------------------------------------------------------------------------------------
GASKET, DIFF CARRIER 26066456 *** HOOSIER GAS 9NI0392
COVER
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (TB 9413428 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB Cup) 9413429 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (CB Cup) 26061096 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, REAR AXLE DRIVE 9783762 *** IND AUT FAS 9NI0172
PINION
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, AXLE BAR CODE 14050330 *** MCARTHUR 9WI0047
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, SPECIAL RING GEAR 14066913 *** RINGSCREW 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR, VENT HOSE 40002599 ***
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #5
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE ASM, PINION 26060876 *** SIMPSON IND 9NI0386
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, SHOCK 40002389 *** ALPHA STMP No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, BUMPER JOUNCE 15562338 *** SUPERB MFG 9NI0031
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-LH 40002397 ***
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-RH 40002388 ***
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, REAR WHEEL 15027048 *** INGERSOL FAS 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, ROLLER 15588288 *** TORRINGTON 9NI0184
(WB)
- ------------------------------------------------------------------------------------------------------------------------------------
COVER, DIFF CARRIER 26067289 *** PEREGRINE 9NI0389
- ------------------------------------------------------------------------------------------------------------------------------------
CASE, DIFFERENTIAL 26060749 *** INTERMET FO 9NI0275
(CASTING)
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE, AXLE 26060757 *** USM 9NI0080
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, PINION OIL 26064028 *** FREUDENBER 9NI0379
- ------------------------------------------------------------------------------------------------------------------------------------
SLUG, WELD 26034712 *** C&S ENG 9NI0214
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (CAST) 40000535 *** GMPOWERTR 9NI0385
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, WHEEL 40001710 *** FRUEDENBER 9NI0114
BEARING
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE BRACKET - STAB BAR 40002390 *** ALPHA STMP No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET - CONTROL ARM 40002391 *** ALPHA STMP No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET - CONTROL ARM 40002392 *** AG SIMPSON No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002620 *** ALPHA 9NI0272
ASM. (LH)
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002893 *** ALPHA 9NI0272
ASM. (RH)
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, CARRIER COVER 40002169 *** INGERSOLL FA 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (HB Cup) 26053759 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (HB 26053760 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
SHAFT, DIFF PINION 26056109 *** MTG 9NI0108
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DRAIN 40000848 *** CHICAGO R.H. NO P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
DRIVE PINION (SAW CUT) 26055128 *** COLD SAW 9Y00003
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHT, PINION FLG S6023055 *** WHITTAR 9WI0034
BALANCE
- ------------------------------------------------------------------------------------------------------------------------------------
4320 PINION GEAR RAW S26055128 *** REPUBLIC RWCQ4
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF SIDE GEARS S40000163 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #5
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF PINION GEARS S6049571 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW S40003708 *** REPUBLIC RWCQ4
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
1050 AXLE SHAFT RAW S6060760 *** INLAND RWCQ9
STEEL
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #6
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
8.6" Axle CLIP, BRK CROSSOVER PIPE 15030046 *** DAJACO IND 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
Multi SHIM, PINION BEARING 394321 *** AMG IND. 9NI0034
(.020)
- ------------------------------------------------------------------------------------------------------------------------------------
L/D PLUG, FILLER 444788 *** GEN PLUG MF 9NI0167
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (CB 26061095 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 517900 *** PROGRESIV 9NI0035
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 1234726 *** WAGNER IND 9NI0030
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEX (7/16-14 X 2.25) 3818764 *** COLD HEAD 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, AXLE SHAFT 3833322 *** AETNA IND 9NI0005
- ------------------------------------------------------------------------------------------------------------------------------------
CAP, DIFF BEARING 26066366 *** WAGNER CAST 9NI0102
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, DIFFERENTIAL BRG 26061062 *** SPARTA FO 9NI0012
(.210)
- ------------------------------------------------------------------------------------------------------------------------------------
GASKET, DIFF CARRIER 26066456 *** HOOSIER GAS 9NI0392
COVER
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (TB 9413428 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB Cup) 9413429 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (CB Cup) 26061096 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, REAR AXLE DRIVE 9783762 *** IND AUT FAS 9NI0172
PINION
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, AXLE BAR CODE 14050330 *** MCARTHUR 9WI0047
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, SPECIAL RING GEAR 14066913 *** RINGSCREW 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR, VENT HOSE 40002599 ***
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE ASM, PINION 26060876 *** SIMPSON IND 9NI0386
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, SHOCK 40002389 *** ALPHA STMP No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET, BUMPER JOUNCE 15562338 *** SUPERB MFG 9NI0031
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-LH 40002397 ***
- ------------------------------------------------------------------------------------------------------------------------------------
SEAT, RR AXLE SPRING-RH 40002388 ***
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #6
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, REAR WHEEL 15027048 *** INGERSOL FAS 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, ROLLER 15588288 *** TORRINGTON 9NI0184
(WB)
- ------------------------------------------------------------------------------------------------------------------------------------
COVER, DIFF CARRIER 26067289 *** PEREGRINE 9NI0389
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE, AXLE 26060757 *** USM 9NI0080
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, PINION OIL 26064028 *** FREUDENBER 9NI0379
- ------------------------------------------------------------------------------------------------------------------------------------
SLUG, WELD 26034712 *** C&S ENG 9NI0214
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (CAST) 40000535 *** GMPOWERTR 9NI0385
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, WHEEL 40001710 *** FRUEDENBER 9NI0114
BEARING
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE BRACKET - STAB BAR 40002390 *** ALPHA STMP No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET - CONTROL ARM 40002391 *** ALPHA STMP No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
BRACKET - CONTROL ARM 40002392 *** AG SIMPSON No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002620 *** ALPHA 9NI0272
ASM. (LH)
- ------------------------------------------------------------------------------------------------------------------------------------
PARKBRAKE BRACKET 15002893 *** ALPHA 9NI0272
ASM. (RH)
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, CARRIER COVER 40002169 *** INGERSOLL FA 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (HB Cup) 26053759 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (HB 26053760 *** TIMKEN 9NI0153
Cone)
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DRAIN 40000848 *** CHICAGO R.H. NO P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
LOCKING DIFFERENTIAL 26061260A *** EATON 9NI0084
ASM
- ------------------------------------------------------------------------------------------------------------------------------------
DRIVE PINION (SAW CUT) 26055128 *** COLD SAW 9Y00003
- ------------------------------------------------------------------------------------------------------------------------------------
WEIGHT, PINION FLG S6023055 *** WHITTAR 9WI0034
BALANCE
- ------------------------------------------------------------------------------------------------------------------------------------
4320 PINION GEAR RAW S26055128 *** REPUBLIC RWCQ4
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW S40003708 *** REPUBLIC RWCQ4
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
1050 AXLE SHAFT RAW S6060760 *** INLAND RWCQ9
STEEL
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #7
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
9.5" Rear Fill Plug 444788 *** General Plug 9ni0167
- ------------------------------------------------------------------------------------------------------------------------------------
26028333 Brg Roller (HB Cone) 454459 *** Timken 9ni 0153
- ------------------------------------------------------------------------------------------------------------------------------------
Open Brg Race (HB Cup) 457258 *** Timken 9ni 0153
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Flange Washer 517900 *** Progressive 9ni0035
Stamping
- ------------------------------------------------------------------------------------------------------------------------------------
Balance Weight 1256048 *** Progressive 9ni0035
Stamping
- ------------------------------------------------------------------------------------------------------------------------------------
Magnet 3787240 *** National Magnet 9ni0061
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Roller (TB COne) 9417782 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Race (TB Cup) 9417783 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Wheel Brg 9439561 *** Torrington 9ni0184
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Flange Nut 9783762 *** Industrial Auto 9ni0172
- ------------------------------------------------------------------------------------------------------------------------------------
Diff RTV/Gasket 26063649 *** Hoosier 9ni0392
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Roller (CB Cone) 11505124 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Race (CB Cup) 11505125 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Carrier Cap Bolt 14012675 *** Ring Screw 9ni0178
- ------------------------------------------------------------------------------------------------------------------------------------
Dr Pinion Spacer 14012691 *** Wagner 9ni0030
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Seal 26064029 *** Freudenberg 9ni0379
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Side Gear Thrust Washer 14012697 *** Brighton 9ni0017
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Pinion Thrust Washer 14012699 *** Hamlin 9ni0258
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Pinion Shaft 14012700 *** MT & G 9ni0108
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Pinion Shaft Screw 14012702 *** Ring Screw 9ni0178
- ------------------------------------------------------------------------------------------------------------------------------------
Ring Gear Bolt 14012703 *** Cold Heading 9ni0159
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Adj Nut Lock 14012707 *** Advanced 9ni0070
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Brg Shim 14012725 *** Sparta 9ni0012
- ------------------------------------------------------------------------------------------------------------------------------------
Axle Shaft Lock 14012746 *** Alpha Stamping 9ni0272
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #7
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Cover 26067253 *** Hamlin 9ni0258
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Adj Nut Bolt 14012748 *** GP Dupont 9ni0163
- ------------------------------------------------------------------------------------------------------------------------------------
Cover Pan Bolt 40002169 *** Ingersoll 9ni0405
- ------------------------------------------------------------------------------------------------------------------------------------
Dr Pinion Shim 14012749 *** AMG 9ni0034
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Adj Nut 14012753 *** AT & G 9ni0190
- ------------------------------------------------------------------------------------------------------------------------------------
Cap - Diff Carrier 14018224 *** Grede 9ni0286
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Flange Asm 26060880 *** Simpson 9ni0386
- ------------------------------------------------------------------------------------------------------------------------------------
Vent Connector 26063647 *** Greendale 9ni0050
- ------------------------------------------------------------------------------------------------------------------------------------
Tube Asm - Weld 26060408 *** USM 9ni0080
- ------------------------------------------------------------------------------------------------------------------------------------
Tube Asm - Weld 26060406 *** USM 9ni0080
- ------------------------------------------------------------------------------------------------------------------------------------
Wheel Stud 15718996 *** Ingersoll 9ni0405
- ------------------------------------------------------------------------------------------------------------------------------------
Wheel Seal 26057167 *** Freudenberg 9ni0114
- ------------------------------------------------------------------------------------------------------------------------------------
Brk Clip 15030046 *** Dajaco 9ni0090
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Carrier - Casting 26063646 *** GM Powertrain 9ni0385
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Case - Casting 26047618 *** Hayes Albion 9ni0299
- ------------------------------------------------------------------------------------------------------------------------------------
Weld Slug 26050919 *** C&S 9ni0214
- ------------------------------------------------------------------------------------------------------------------------------------
ID Label 14050331 *** Mac-Arthur 9W10047
- ------------------------------------------------------------------------------------------------------------------------------------
Drain Plug 40000848 *** Chicago Rawhide NO P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
1050 Axle Shaft Raw Steel S6042380 *** Inland RWC09
- ------------------------------------------------------------------------------------------------------------------------------------
4320 Ring Gear Raw Steel S6054974 *** Republic RWC04
- ------------------------------------------------------------------------------------------------------------------------------------
8822 Diff Side Gears S6051484 *** Republic RWC04
- ------------------------------------------------------------------------------------------------------------------------------------
8822 Diff Pinion Gears S6049571 *** Republic RWC04
- ------------------------------------------------------------------------------------------------------------------------------------
4320 Gear Raw Steel S6054973 *** Republic RWC04
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #8
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
9.5" Rear Fill Plug 444788 *** General Plug 9ni0167
- ------------------------------------------------------------------------------------------------------------------------------------
26028333 Brg Roller (HB Cone) 454459 *** Timken 9ni 0153
- ------------------------------------------------------------------------------------------------------------------------------------
L/D Brg Race (HB Cup) 457258 *** Timken 9ni 0153
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Flange Washer 517900 *** Progressive 9ni0035
Stamping
- ------------------------------------------------------------------------------------------------------------------------------------
Balance Weight 1256048 *** Progressive 9ni0035
Stamping
- ------------------------------------------------------------------------------------------------------------------------------------
Magnet 3787240 *** National Magnet 9ni0061
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Roller (TB COne) 9417782 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Race (TB Cup) 9417783 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Wheel Brg 9439561 *** Torrington 9ni0184
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Flange Nut 9783762 *** Industrial Auto 9ni0172
- ------------------------------------------------------------------------------------------------------------------------------------
Diff RTV/Gasket 26063649 *** Hoosier 9ni0392
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Roller (CB Cone) 11505124 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Race (CB Cup) 11505125 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
Carrier Cap Bolt 14012675 *** Ring Screw 9ni0178
- ------------------------------------------------------------------------------------------------------------------------------------
Dr Pinion Spacer 14012691 *** Wagner 9ni0030
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Seal 26064029 *** Freudenberg 9ni0379
- ------------------------------------------------------------------------------------------------------------------------------------
Ring Gear Bolt 14012703 *** Cold Heading 9ni0159
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Adj Nut Lock 14012707 *** Advanced 9ni0070
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Brg Shim 14012725 *** Sparta 9ni0012
- ------------------------------------------------------------------------------------------------------------------------------------
Axle Shaft Lock 14012746 *** Alpha Stamping 9ni0272
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Cover 26067253 *** Hamlin 9ni0258
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Adj Nut Bolt 14012748 *** GP Dupont 9ni0163
- ------------------------------------------------------------------------------------------------------------------------------------
Cover Pan Bolt 40002169 *** Ingersoll 9ni0405
- ------------------------------------------------------------------------------------------------------------------------------------
Dr Pinion Shim 14012749 *** AMG 9ni0034
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #8
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Adj Nut 14012753 *** AT & G 9ni0190
- ------------------------------------------------------------------------------------------------------------------------------------
Cap - Diff Carrier 14018224 *** Grede 9ni0286
- ------------------------------------------------------------------------------------------------------------------------------------
Pinion Flange Asm 26060880 *** Simpson 9ni0386
- ------------------------------------------------------------------------------------------------------------------------------------
Vent Connector 26063647 *** Greendale 9ni0050
- ------------------------------------------------------------------------------------------------------------------------------------
Tube Asm - Weld 26060408 *** USM 9ni0080
- ------------------------------------------------------------------------------------------------------------------------------------
Tube Asm - Weld 26060406 *** USM 9ni0080
- ------------------------------------------------------------------------------------------------------------------------------------
Wheel Stud 15718996 *** Ingersoll 9ni0405
- ------------------------------------------------------------------------------------------------------------------------------------
Wheel Seal 26057167 *** Freudenberg 9ni0114
- ------------------------------------------------------------------------------------------------------------------------------------
Brk Clip 15030046 *** Dajaco 9ni0090
- ------------------------------------------------------------------------------------------------------------------------------------
Diff Carrier - Casting 26063646 *** GM Powertrain 9ni0385
- ------------------------------------------------------------------------------------------------------------------------------------
Weld Slug 26050919 *** C&S 9ni0214
- ------------------------------------------------------------------------------------------------------------------------------------
ID Label 14050331 *** Mac-Arthur 9W10047
- ------------------------------------------------------------------------------------------------------------------------------------
Drain Plug 40000848 *** Chicago Rawhide NO P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
Eaton Locker 40000861 *** Eaton 9ni0084
- ------------------------------------------------------------------------------------------------------------------------------------
1050 Axle Shaft Raw Steel S6042380 *** Inland RWC09
- ------------------------------------------------------------------------------------------------------------------------------------
4320 Ring Gear Raw Steel S6054974 *** Republic RWC04
- ------------------------------------------------------------------------------------------------------------------------------------
4320 Pinion Gear Raw Steel S6054973 *** Republic RWC04
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #9
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O. Number
Part Baseline Supplier
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
10.5" Rear WASHER, LOCK (7/16) 103328 *** Mellowes 9NI0176
- ------------------------------------------------------------------------------------------------------------------------------------
(SW) WASHER, LOCK (1/2) 103329 *** Mellowes 9NI0176
- ------------------------------------------------------------------------------------------------------------------------------------
Open RACE, BEARING (CB CUP) 142223 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEXAGON 193221 *** MNP Corp 9NI0177
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, DRIVE GEAR 331422 *** Cold Heading 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, PINION BEARING (.006) 334362 *** AMG Ind 9NI0034
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, FILLER 444788 *** General Plug 9NI0167
- ------------------------------------------------------------------------------------------------------------------------------------
MAGNET, CHIP COLLECTOR 3787240 *** National 9NI0061
Magentics
- ------------------------------------------------------------------------------------------------------------------------------------
CAP, DIFF BEARING 3977324 *** Grede 9NI0286
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, DIFF BRG ADJ NUT 3977326 *** Advance Wire 9NI0070
- ------------------------------------------------------------------------------------------------------------------------------------
DIFFERENTIAL CASE 3977342 *** Wheland 9NI0099
- ------------------------------------------------------------------------------------------------------------------------------------
DIFFERENTIAL COVER 3977343 *** Wheland 9NI0099
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF SIDE GEAR 3977345 *** AMG 9NI0034
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF PINION 3977346 *** Brighton Tool 9NI0017
THRUST
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE & SLEEVE ASM, 26060884 *** Simpson 9NI0386
PINION
- ------------------------------------------------------------------------------------------------------------------------------------
COVER, DIFFERENTIAL 26067040 *** Hamlin 9NI0258
CARRIER
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEX 3977453 *** Ring Screw 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, HYP DR (PILOT) 7451870 *** NTN 9NI0150
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER (HB CONE) 26043883 *** Koyo 9NI0316
- ------------------------------------------------------------------------------------------------------------------------------------
RACE (HB CUP) 26043884 *** Koyo 9NI0316
- ------------------------------------------------------------------------------------------------------------------------------------
SCREW, HEX SERRATED 9416897 *** Reliant 9NI0277
WASHER
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (TB CONE) 9418357 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #9
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O. Number
Part Baseline Supplier
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB CUP) 9418358 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (CB CONE) 9436882 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, AXLE BAR CODE 14050331 *** MacArthur 9NI0047
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR, VENT HOSE 26063647 *** Greendale 9NI0050
Screw
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT - 40002169 *** Ingersoll 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, PINION FLANGE 15552844 *** Gripco 9NI0169
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 15552845 *** Alpha 9NI00272
- ------------------------------------------------------------------------------------------------------------------------------------
CLIP, PARK BRAKE 15733984 *** Dejaco 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
RETAINER, PINION BEARING 26061404 *** Deco 9NI0207
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL, PINION 26064030 *** Fruedenburg 9NI0379
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 26008741 *** Wagner 9NI0030
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER,DIFF (CASTING) 26065884 *** GMPT 9NI0385
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER COVER GASKET 26067159 *** Hoosier 9NI0392
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE ASM, AXLE (LH-MACH) 40000093 *** USM PNI0080
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE ASM, AXLE (RH-MACH) 40000089 *** USM PNI0080
- ------------------------------------------------------------------------------------------------------------------------------------
SPIDER, DIFF PINION 26030228 *** Lake City Frg 9NI0247
(FORGED)
- ------------------------------------------------------------------------------------------------------------------------------------
SLUG, WELD 26050920 *** AT & G 9NI0190
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, DIFF BRG ADJ 26057101 *** AT & G 9NI0190
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG ASM, DRAIN 40000848 *** Chicago No P.O
Rawhide
- ------------------------------------------------------------------------------------------------------------------------------------
PINION, DRIVE (FORGING) 3.73 26055274 *** Colfor 9NI0100
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF SIDE GEARS S6053591 *** Republic RWC04
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF PINION GEARS S6053588 *** Republic RWC04
- ------------------------------------------------------------------------------------------------------------------------------------
1050 AXLE SHAFT RAW STEEL S6061813 *** Inland RWC09
- ------------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW STEEL S6054999 *** Republic RWC04
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #10
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
10.5" Rear WASHER, LOCK (7/16) 103328 *** Mellowes 9NI0176
- ------------------------------------------------------------------------------------------------------------------------------------
(SW) WASHER, LOCK (1/2) 103329 *** Mellowes 9NI0176
- ------------------------------------------------------------------------------------------------------------------------------------
L/D RACE, BEARING (CB CUP) 142223 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEXAGON 193221 *** MNP Corp 9NI0177
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, DRIVE GEAR 331422 *** Cold Heading 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, PINION BEARING (.006) 334362 *** AMG Ind 9NI0034
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, FILLER 444788 *** General Plug 9NI0167
- ------------------------------------------------------------------------------------------------------------------------------------
MAGNET, CHIP COLLECTOR 3787240 *** National 9NI0061
Magentics
- ------------------------------------------------------------------------------------------------------------------------------------
CAP, DIFF BEARING 3977324 *** Grede 9NI0286
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, DIFF BRG ADJ NUT 3977326 *** Advance Wire 9NI0070
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE & SLEEVE ASM, PINION 26060884 *** Simpson 9NI0386
- ------------------------------------------------------------------------------------------------------------------------------------
COVER, DIFFERENTIAL CARRIER 26067040 *** Hamlin 9NI0258
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, HEX 3977453 *** Ring Screw 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, HYP DR (PILOT ) 7451870 *** NTN 9NI0150
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER (HB CONE) 26043883 *** Koyo 9NI0316
- ------------------------------------------------------------------------------------------------------------------------------------
RACE (HB CUP) 26043884 *** Koyo 9NI0316
- ------------------------------------------------------------------------------------------------------------------------------------
SCREW, HEX SERRATED 9416897 *** Reliant 9NI0277
WASHER
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (TB CONE) 9418357 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB CUP) 9418358 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (CB CONE) 9436882 *** Timken 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, AXLE BAR CODE 14050331 *** MacArthur 9NI0047
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR, VENT HOSE 26063647 *** Greendale 9NI0050
Screw
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT - 40002169 *** Ingersoll 9NI0405
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, PINION FLANGE 15552844 *** Gripco 9NI0169
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #10
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 15552845 *** Alpha 9NI00272
- -----------------------------------------------------------------------------------------------------------------------------------
CLIP, PARK BRAKE 15733984 *** Dejaco 9NI0090
- -----------------------------------------------------------------------------------------------------------------------------------
RETAINER, PINION BEARING 26061404 *** Deco 9NI0207
- -----------------------------------------------------------------------------------------------------------------------------------
SEAL, PINION 26064030 *** Fruedenburg 9NI0379
- -----------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 26008741 *** Wagner 9NI0030
- -----------------------------------------------------------------------------------------------------------------------------------
CARRIER,DIFF (CASTING) 26065884 *** GMPT 9NI0385
- -----------------------------------------------------------------------------------------------------------------------------------
CARRIER COVER GASKET 26067159 *** Hoosier 9NI0392
- -----------------------------------------------------------------------------------------------------------------------------------
TUBE ASM, AXLE (LH-MACH) 40000093 *** USM PNI0080
- -----------------------------------------------------------------------------------------------------------------------------------
TUBE ASM, AXLE (RH-MACH) 40000089 *** USM PNI0080
- -----------------------------------------------------------------------------------------------------------------------------------
SLUG, WELD 26050920 *** AT & G 9NI0190
- -----------------------------------------------------------------------------------------------------------------------------------
NUT, DIFF BRG ADJ 26057101 *** AT & G 9NI0190
- -----------------------------------------------------------------------------------------------------------------------------------
PLUG ASM, DRAIN 40000848 *** Chicago No P.O
Rawhide
- -----------------------------------------------------------------------------------------------------------------------------------
DIFFERENTIAL ASM, LOCKING 26060242 *** Eaton 9NI0084
- -----------------------------------------------------------------------------------------------------------------------------------
PINION, DRIVE (FORGING) 3.73 26055274 *** Colfor 9NI0100
- -----------------------------------------------------------------------------------------------------------------------------------
1050 AXLE SHAFT RAW STEEL S6061813 *** Inland RWC09
- -----------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW STEEL S6054999 *** Republic RWC04
===================================================================================================================================
</TABLE>
2
<PAGE>
Exhibit #11
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material Analysis /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
8.25" Axle ACTUATOR ASM, DIFF SHIFTER 26060073 *** Pollak 9ni0387
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT ASM, WASHER & 26036835 *** Ring Screw 9ni0178
- ------------------------------------------------------------------------------------------------------------------------------------
BUSHING ASM, DIFF CARRIER 15962663 *** Rubber Ent. 9ni0123
- ------------------------------------------------------------------------------------------------------------------------------------
INSERT ASM, BEARING SLEEVE 40000932 *** Zenith 9ni0058
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, OUTPUT SHAFT 26041515 *** INA BRG. 9ni0217
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BEARING (CB 457233 *** Timken 9ni0153
CONE)
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (CB CUP) 9420096 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (HB CONE) 9418357 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (HB CUP) 9418358 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (TB CONE) 9413428 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM (TUBE) 26066885 *** Ina Bearing 9ni0217
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB CUP) 9413429 *** Timken 9ni0153
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (L HALF-CAST) 26060523 *** Amcan 9ni0285
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (R HALF-CAST) 26060524 *** Amcan 9ni0285
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, DIFF CARRIER ASM 14045736 *** MNP Corp 9ni0177
- ------------------------------------------------------------------------------------------------------------------------------------
PIN, DIFF CARRIER 360570 *** AT&G 9ni0190
- ------------------------------------------------------------------------------------------------------------------------------------
RING, OUTPUT SHAFT 26056600 *** Dajaco 9ni0090
CONNECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, SPECIAL RING GEAR 14066913 *** Ring Screw 9ni0178
- ------------------------------------------------------------------------------------------------------------------------------------
CASE, DIFFERENTIAL (CAST) 26046101 *** Intermet 9ni0275
- ------------------------------------------------------------------------------------------------------------------------------------
PIN, DIFF PINION SHAFT LOCK 9428890 *** Drive Lok Pin 9ni0076
- ------------------------------------------------------------------------------------------------------------------------------------
SHAFT, DIFF PINION 26056109 *** MT & G 9ni0108
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF PIN. GEAR TRUST 15588350 *** Palmer Eng. 9ni0037
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF SIDE GEAR TRUST 15588351 *** Palmer Eng. 9ni0037
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE ASM, PINION 15588336 *** Simpson 9ni0105
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, PINION FLANGE 26060109 *** Freudenberg 9ni0114
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #11
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, BEARING ADJUSTER NUT 15588312 *** Dajaco 9ni0090
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, PINION BEARING (.020) 394321 *** AMG 9ni0034
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 1234726 *** Wagner 9ni0030
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 517900 *** Progressive 9ni0035
Stamp
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, REAR AXLE DRIVE PINION 9783762 *** Industrial auto 9ni0172
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR ASM, VENT 40003152 *** Precision Plast 9ni0220
- ------------------------------------------------------------------------------------------------------------------------------------
DAMPER ASM, FORK 26033973 *** APM 9ni0351
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, FRONT AXLE 40003163 *** SABO 9ni0330
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, ROLLER (IO BRG) 26029615 *** Torrington 9ni0184
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR, OUTPUT SHAFT 26056596 *** Inland LOI
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE, AXLE (MACHINED) 26058833 *** Nelson 9ni0402
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF OUTPUT 26066886 *** Palmer Eng 9ni0037
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, BAR CODE 26057096 *** MacArthur 9ni0348
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DRAIN 26058815 *** MNP No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DIFF FILLER 476753 *** Decker MFG 9ni0162
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, INNER SHAFT (1.27) 15588376 *** Palmer 9ni0037
- ------------------------------------------------------------------------------------------------------------------------------------
SPRING, SHIFTER FORK 15588371 *** Omiotek 9ni0079
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF CARR PLUG 14042602 *** Heritage Plastic 9ni0188
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, FLAT 15588383 *** Wollin 9ni0181
- ------------------------------------------------------------------------------------------------------------------------------------
SLEEVE, DIFFERENTIAL 26033974 *** Precision 9ni0060
- ------------------------------------------------------------------------------------------------------------------------------------
4320 PINION GEAR RAW STEEL S40001641 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW STEEL S40003713 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF SIDE GEARS S6053585 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF PINION GEARS S6049571 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
4130 I/O SHAFT RAW STEEL S5588366 *** SS KOBE RWCQ7
- ------------------------------------------------------------------------------------------------------------------------------------
1050 OUTPUT SHAFT RAW STEEL S6013554 *** SS KOBE RWCQ7
(LONG)
- ------------------------------------------------------------------------------------------------------------------------------------
1050 OUTPUT SHAFT RAW STEEL S6006825 *** NORTHSTAR RWDD2
(SHORT)
====================================================================================================================================
</TABLE>
2
<PAGE>
Exhibit #12
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
9.25" Axle PIN, DIFF CARRIER 360570 *** AT&G 9NI0190
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (HB CONE) 454459 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (HB CUP) 457258 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DIFF FILLER 476753 *** DECKER MFG. 9NI0162
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, PINION FLANGE 517900 *** PROGRESSIVE 9NI0035
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM, BRG (TB CONE) 9417782 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (TB CUP) 9417783 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, BRG ADJ LOCK BOLT 11503963 *** MTR. CITY. 9NI0174
FST.
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, DIFF BEARING 15562346 *** GREENDALE 9NI0050
- ------------------------------------------------------------------------------------------------------------------------------------
NUT, REAR AXLE DRIVE PINION 9783762 *** IAF 9NI0172
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, DIFF ADJ LOCK 11503877 *** COLD HDG. 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF ADJ LOCK BOLT 11503963 *** MTR. CITY. 9NI0174
FST.
- ------------------------------------------------------------------------------------------------------------------------------------
ROLLER ASM,BRG (CB CONE) 11505124 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
RACE, BEARING (CB CUP) 11505125 *** TIMKEN 9NI0153
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, PINION BEARING 14012691 *** WAGNER 9NI0030
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF SIDE GEAR 14012697 *** BRIGT. T&D 9NI0017
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF PINION THRUST 14012699 *** HAMLIN 9NI0258
- ------------------------------------------------------------------------------------------------------------------------------------
SHAFT, DIFF PINION 14012700 *** MT&G 9NI0266
- ------------------------------------------------------------------------------------------------------------------------------------
SCREW, DIFF PINION SHAFT 14012702 *** RNG. SCW. 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, RING GEAR 14012703 *** CLD. HDNG. 9NI0159
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, PINION BEARING (0.51) 14012749 *** AMG 9NI0034
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF CARR PLUG 14042602 *** HERITAGE 9NI0188
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, DIFF CARRIER ASM 14045736 *** MNP 9NI0177
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT, DIFF CARR BRG ADJ 11503877 ***
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #12
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL, RING 15521872 *** NOK 9NI0305
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, DIFF OUTPUT 15521873 *** INA 9NI0217
SHAFT
- ------------------------------------------------------------------------------------------------------------------------------------
SEAL ASM, OUTPUT SHAFT 40003164 *** SABO 9NI0330
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, ADJUSTER 15521875 *** DAJACO 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
RING, OUTPUT SHAFT 15521878 *** DAJACO 9NI0090
CONNECTOR
- ------------------------------------------------------------------------------------------------------------------------------------
SHIM, INNER SHAFT (1.30) 15522140 *** AMG 9NI0034
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, RH ADJ 15530296 *** INA 9NI0217
- ------------------------------------------------------------------------------------------------------------------------------------
SPACER, DIFF SIDE GEAR 15562346 *** GREENDALE 9NI0050
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (L HALF-CAST) 26060525 *** AMCAN 9NI0285
- ------------------------------------------------------------------------------------------------------------------------------------
CARRIER, DIFF (R HALF-CAST) 26060526 *** AMCAN 9NI0285
- ------------------------------------------------------------------------------------------------------------------------------------
FLANGE ASM, PINION 15588336 *** SIMPSON 9NI0386
- ------------------------------------------------------------------------------------------------------------------------------------
SPRING, SHIFTER FORK 15588371 *** OMIOTEK 9NI0079
- ------------------------------------------------------------------------------------------------------------------------------------
PLUG, DRAIN 26058815 *** GENERAL No P.O.
PLUG
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, FLAT 15588383 *** WOLLIN 9NI0181
- ------------------------------------------------------------------------------------------------------------------------------------
BUSHING ASM, DIFF CARRIER 15962664 *** RUBBER ENT. 9NI0123
- ------------------------------------------------------------------------------------------------------------------------------------
LOCK, BEARING ADJUSTER NUT 26008812 *** DAJACO 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
SHAFT, DIFF OUTPUT (LH) 26058806 *** MT&G 9NI0108
- ------------------------------------------------------------------------------------------------------------------------------------
ADJUSTER, DIFF BRG 26059458 *** AMCAN 9NI0285
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, DIFF OUTPUT SHAFT 26009678 *** PALMER 9NI0037
THR
- ------------------------------------------------------------------------------------------------------------------------------------
ACTUATOR ASM, DIFF SHIFTER 26060073 *** POLLAK 9NI0387
- ------------------------------------------------------------------------------------------------------------------------------------
BEARING ASM, ROLLER (IO BRG) 26041516 *** TORRINGTON 9NI0184
- ------------------------------------------------------------------------------------------------------------------------------------
WASHER, THRUST 26031702 *** DAJACO 9NI0090
- ------------------------------------------------------------------------------------------------------------------------------------
RING, OUTPUT SHAFT 26031703 *** DAJACO 9NI0090
CONNECTING
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTOR ASM, VENT 40003152 *** PREC. PLST. 9NI0220
- ------------------------------------------------------------------------------------------------------------------------------------
TUBE, AXLE (MACHINED) 26058828 *** WARREN IND. 9NI0346
- ------------------------------------------------------------------------------------------------------------------------------------
INSERT ASM, SLEEVE 26045211 *** WELLS 9NI0240
- ------------------------------------------------------------------------------------------------------------------------------------
DAMPER ASM, FORK 26033973 *** APM 9NI0351
- ------------------------------------------------------------------------------------------------------------------------------------
BOLT ASM, WASHER & 26036835 *** RING SCREW 9NI0178
- ------------------------------------------------------------------------------------------------------------------------------------
CASE, DIFFERENTIAL (CAST) 26047618 *** HYS.ALB. 9NI0299
- ------------------------------------------------------------------------------------------------------------------------------------
LABEL, BAR CODE 26057096 *** MCARTHUR 9NI0348
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #12
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
4320 PINION GEAR RAW STEEL S40001641 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
4320 RING GEAR RAW STEEL S40003713 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
SLEEVE, DIFFERENTIAL RAW S5581364 *** USS KOBE RWCQ7
STEEL
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF SIDE GEARS S6053590 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
8822 DIFF PINION GEARS S6049588 *** REPUBLIC RWCQ4
- ------------------------------------------------------------------------------------------------------------------------------------
4130 I/O SHAFT RAW STEEL S5588366 *** USS KOBE RWCQ7
- ------------------------------------------------------------------------------------------------------------------------------------
1050 OUTPUT SHAFT RAW STEEL S6013554 *** USS KOBE RWCQ7
(LONG)
- ------------------------------------------------------------------------------------------------------------------------------------
1050 OUTPUT SHAFT RAW STEEL S6006825 *** NORTHSTAR RWDD2
(SHORT)
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #13
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Purchased Component Material Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Linkage Spring Seat 5672910 *** Brighton Tool 9EI0010
- ------------------------------------------------------------------------------------------------------------------------------------
Seal 5699215 *** Truform 9EI0073
- ------------------------------------------------------------------------------------------------------------------------------------
Ball Seat 7816903 *** Alken Ziegler 9EI0108
- ------------------------------------------------------------------------------------------------------------------------------------
Spring 7816904 *** Quality Spring 9EI0065
- ------------------------------------------------------------------------------------------------------------------------------------
Ball stud 26059229 *** Federal Screw 9EI0111
- ------------------------------------------------------------------------------------------------------------------------------------
Grease Zerk 9417901 *** Lincoln 9EI0116
- ------------------------------------------------------------------------------------------------------------------------------------
Seal Protector 26020159 *** Niagara Plastics 9EI0093
- ------------------------------------------------------------------------------------------------------------------------------------
Plug 26039554 *** Alpha 9EI0183
- ------------------------------------------------------------------------------------------------------------------------------------
ITR Housing 26059221 *** Horizon 9EI0237
- ------------------------------------------------------------------------------------------------------------------------------------
ITR Boot Seal 26067979 *** Fruedenburg 9EI0071
- ------------------------------------------------------------------------------------------------------------------------------------
Ball Seat 26059225 *** Alken Ziegler 9EI0108
- ------------------------------------------------------------------------------------------------------------------------------------
Spring Seat 40000351 *** St. Marys Carbon 9EI0173
- ------------------------------------------------------------------------------------------------------------------------------------
Belleville Spring 40000350 *** Rotor Clip 9EI0260
- ------------------------------------------------------------------------------------------------------------------------------------
Jam Nut 40000352 *** Federal Screw 9EI0236
- ------------------------------------------------------------------------------------------------------------------------------------
Sleeve Painting 26031946PR *** Metokote 9Y00003
- ------------------------------------------------------------------------------------------------------------------------------------
1141 Relay Rod Raw S6023554 *** Northstar Steel RWDD2
Steel
- ------------------------------------------------------------------------------------------------------------------------------------
1541 Torsion Bar Raw S0240787 *** Northstar Steel RWDD2
Steel
- ------------------------------------------------------------------------------------------------------------------------------------
1035 Tie Rod Raw S00379184 *** USS Kobe RWCQ7
Steel
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #14
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Purchased Component Material Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Idler Hsg & Bush. Asm 26059247 *** Micro Gage 9EI0229
- ------------------------------------------------------------------------------------------------------------------------------------
Grease zerk 9417901 *** Lincoln 9EI0116
- ------------------------------------------------------------------------------------------------------------------------------------
Idler Shaft 26027088 *** Metal Tech 9EI0157
- ------------------------------------------------------------------------------------------------------------------------------------
Spring 26027089 *** Quality Spring 9EI0065
- ------------------------------------------------------------------------------------------------------------------------------------
Seal 26027090 *** Truform 9EI0073
- ------------------------------------------------------------------------------------------------------------------------------------
Thrust Washer 26027094 *** Niagara Plastics 9EI0093
- ------------------------------------------------------------------------------------------------------------------------------------
Nut (M16) 11516843 *** Infasco 9EI0106
- ------------------------------------------------------------------------------------------------------------------------------------
Spring Seat 26045769 *** St. Marys Carbon 9EI0173
- ------------------------------------------------------------------------------------------------------------------------------------
Plug 26047792 *** Alpha 9EI0183
- ------------------------------------------------------------------------------------------------------------------------------------
Idler Arm Casting 26064163 *** Wagner 9EI0059
- ------------------------------------------------------------------------------------------------------------------------------------
Seal 26064611 *** NOK 9EI0071
- ------------------------------------------------------------------------------------------------------------------------------------
Plug 26059242 *** Alpha 9EI0183
- ------------------------------------------------------------------------------------------------------------------------------------
Bushing 26059243 *** BTR 9EI0258
- ------------------------------------------------------------------------------------------------------------------------------------
Grease zerk 7848425 *** Lincoln 9EI0116
- ------------------------------------------------------------------------------------------------------------------------------------
Pivot Stud 26059239 *** Federal Screw No PO
- ------------------------------------------------------------------------------------------------------------------------------------
Ball seat 7816903 *** Alken Ziegler 9EI0108
- ------------------------------------------------------------------------------------------------------------------------------------
Spring Seat 26059241 *** Metal Kraft 9EI0259
- ------------------------------------------------------------------------------------------------------------------------------------
Spring 599248 *** Dudek & Bock 9EI0064
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #15
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Purchased Component Material Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Pitman Seal 26064611 *** Fruedenburg 9EI0071
- ------------------------------------------------------------------------------------------------------------------------------------
Plug 26066022 *** Alpha 9EI0183
- ------------------------------------------------------------------------------------------------------------------------------------
Bushing 26059243 *** BTR 9EI0258
- ------------------------------------------------------------------------------------------------------------------------------------
Grease zerk 7848425 *** Lincoln 9EI0116
- ------------------------------------------------------------------------------------------------------------------------------------
Pitman Arm Forging 26062651 *** Lake City Forge 9EI0184
- ------------------------------------------------------------------------------------------------------------------------------------
Pivot Stud 26059239 *** Federal Screw No PO
- ------------------------------------------------------------------------------------------------------------------------------------
Ball seat 7816903 *** Alken Zeigler 9EI0108
- ------------------------------------------------------------------------------------------------------------------------------------
Spring Seat 26059241 *** Metal Craft 9EI0259
- ------------------------------------------------------------------------------------------------------------------------------------
Spring 599248 *** Dudek & Bock 9EI0064
- ------------------------------------------------------------------------------------------------------------------------------------
Seal Protector 26059259 *** Niagara Plastics 9EI0093
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #16
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Purchased Component Material Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
K-Aux Ring, Retaining 5672924 *** Milwakee Wire 9JI0188
- ------------------------------------------------------------------------------------------------------------------------------------
Props Roller, Universal 5676981 *** Universal Brg 9JI0199
Joint
- ------------------------------------------------------------------------------------------------------------------------------------
Bearing, Washer 5676984 *** Texler 9JI0146
- ------------------------------------------------------------------------------------------------------------------------------------
Seal, Washer 5679927 *** Texler 9JI0146
- ------------------------------------------------------------------------------------------------------------------------------------
Retainer, Spider & 7810083 *** Milwakee Wire 9JI0188
Bearing
- ------------------------------------------------------------------------------------------------------------------------------------
Tube, Propshaft 26064065 *** Webco No P.O.
- ------------------------------------------------------------------------------------------------------------------------------------
Seal, Universal Joint 26041550 *** Freud NOK 9JI0141
- ------------------------------------------------------------------------------------------------------------------------------------
Label, Identification 26042232 *** Seneca 9JI0205
- ------------------------------------------------------------------------------------------------------------------------------------
Bearing, U/Jt Blank 26047429 *** Braun 9JI0166
- ------------------------------------------------------------------------------------------------------------------------------------
Yoke, Spline 26060596 *** Mennie's 9JI0226
(Forging)
- ------------------------------------------------------------------------------------------------------------------------------------
Boot, Propshaft 26064274 *** Berlin Mfg 9JI0247
- ------------------------------------------------------------------------------------------------------------------------------------
Clamp, Boot 26064276 *** Oetiker 9JI0186
- ------------------------------------------------------------------------------------------------------------------------------------
Clamp, Boot 26064275 *** Oetiker 9JI0186
- ------------------------------------------------------------------------------------------------------------------------------------
5120 Trunion Raw S6042303 *** Mac Steel RW0B1
Steel
- ------------------------------------------------------------------------------------------------------------------------------------
1141 Weld Yoke S6005719 *** NorthStar Steel RW002
Raw Steel
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #17
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Purchased Component Material Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1-Piece Ring, Retaining 5672924 *** Milwakee Wire 9JI0188
- ------------------------------------------------------------------------------------------------------------------------------------
Props Roller, Universal Joint 5676981 *** Universal Brg 9JI0199
- ------------------------------------------------------------------------------------------------------------------------------------
Bearing, Washer 5676984 *** Texler 9JI0146
- ------------------------------------------------------------------------------------------------------------------------------------
Seal, Washer 5679927 *** Texler 9JI0146
- ------------------------------------------------------------------------------------------------------------------------------------
Retainer, Spider & 7810083 *** Milwakee Wire 9JI0188
Bearing
- ------------------------------------------------------------------------------------------------------------------------------------
Plug, Slip Yoke 7811185 *** Richmond 9JI0198
- ------------------------------------------------------------------------------------------------------------------------------------
Tube, Protector 7834169 *** Advance Paper 9JI0140
Tube
- ------------------------------------------------------------------------------------------------------------------------------------
Yoke, Slip (Casting) 7838667 *** Hayes Albion 9JI0222
- ------------------------------------------------------------------------------------------------------------------------------------
Seal, Universal Joint 26041550 *** Freud NOK 9JI0141
- ------------------------------------------------------------------------------------------------------------------------------------
Tube, Propshaft 26063335 *** LTV 9JI0150
- ------------------------------------------------------------------------------------------------------------------------------------
Label, Identification 26044333 *** Seneca 9JI0205
- ------------------------------------------------------------------------------------------------------------------------------------
Bearing, U/Jt Blank 26047429 *** Braun 9JI0166
- ------------------------------------------------------------------------------------------------------------------------------------
5120 Trunion Raw Steel S6042303 *** Mac Steel RWDB1
- ------------------------------------------------------------------------------------------------------------------------------------
1141 Weld Yoke Raw S6005719 *** North Star Steel RWDD2
Steel
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #18
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Purchased Component Material Analysis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
2-Piece Yoke, Asm, Slip 26051658 *** B&C 9JI0206
- ------------------------------------------------------------------------------------------------------------------------------------
Props Roller, Universal Joint 5676981 *** Universal Bearing 9JI0199
- ------------------------------------------------------------------------------------------------------------------------------------
Seal, Washer 5679927 *** Texler PJI0146
- ------------------------------------------------------------------------------------------------------------------------------------
Bearing, Washer 5676984 *** Texler PJI0146
- ------------------------------------------------------------------------------------------------------------------------------------
Seal, Universal Joint 26041550 *** NOK PJI0141
- ------------------------------------------------------------------------------------------------------------------------------------
Bearing, U/Jt Blank 26047429 *** Braun 9JI0166
- ------------------------------------------------------------------------------------------------------------------------------------
Tube, Propshaft 26064097 *** Webco 3ZI0038
- ------------------------------------------------------------------------------------------------------------------------------------
Label, Identification 26063485 *** Seneca 9JI0205
- ------------------------------------------------------------------------------------------------------------------------------------
Ring, Retaining 5672924 *** Milwaukee Wire 9JI0188
- ------------------------------------------------------------------------------------------------------------------------------------
Retainer, Spider & 7810083 *** Milwaukee Wire 9JI0188
Bearing
- ------------------------------------------------------------------------------------------------------------------------------------
Shaft, Ext Spline 26064300 *** General Motors 9JI0167
(Forging) CND
- ------------------------------------------------------------------------------------------------------------------------------------
Deflector, Center 7839004 *** Varbos 9JI0193
Bearing
- ------------------------------------------------------------------------------------------------------------------------------------
Shield, Dust Prop Shaft, 3990290 *** S&Z 9JI0176
- ------------------------------------------------------------------------------------------------------------------------------------
Brg Asm, Prop Shaft 26064283 *** Yale South Haven 9JI0228
Supt
- ------------------------------------------------------------------------------------------------------------------------------------
Retainer, Propshaft 26050953 *** Greendale 9JI0249
Bearing
- ------------------------------------------------------------------------------------------------------------------------------------
Seal, Slip Spline 26063059 *** NOK 9JI0141
- ------------------------------------------------------------------------------------------------------------------------------------
Yoke, Slip (Casting) 7838667 *** Hayes Albion 9JI0222
- ------------------------------------------------------------------------------------------------------------------------------------
Plug, Slip Yoke 3930780 *** Richmond 9JI0198
- ------------------------------------------------------------------------------------------------------------------------------------
Tube, Prop Shaft 26064092 *** Webco NOPO
- ------------------------------------------------------------------------------------------------------------------------------------
Label, Three Plane 26063482 *** Seneca 9JI0205
Balance
- ------------------------------------------------------------------------------------------------------------------------------------
5120 Trunion Raw Steel S6042303 *** Mac Steel RWDB1
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit #18
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1141 Weld Yoke Raw S6005719 *** North Star Steel RWDD2
Steel
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit #19
<TABLE>
<CAPTION>
====================================================================================================================================
GMT-800
Purchased Component Material /
Memorandum of Understanding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Product Line Part Name GMT-800 GMT-800 GMT-800 P.O.
Part Baseline Supplier Number
Number Price ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Stabilizer Bars
- -----------------------------------------------------------------------------------------------------------------------------------
Fronts
- -----------------------------------------------------------------------------------------------------------------------------------
36mm @ 20.0% WT 4130M Raw Steel 15713265 *** Lone Star Steel
- ------------------------------------------------------------------------------------------------------------------------------------
34mm @ 17.5% WT 4130M Raw Steel 15711021 *** Lone Star Steel
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Rears
- ------------------------------------------------------------------------------------------------------------------------------------
30mm @ 15.0% WT 4130M Raw Steel 15153314 *** Lone Star Steel
- ------------------------------------------------------------------------------------------------------------------------------------
34mm @ 8.5% WT 4130M Raw Steel 15153315 *** Lone Star Steel
- ------------------------------------------------------------------------------------------------------------------------------------
34mm @ 11.5% WT 4130M Raw Steel 15153316 *** Lone Star Steel
- ------------------------------------------------------------------------------------------------------------------------------------
34mm @ 15.0% WT 4130M Raw Steel 15713472 *** Lone Star Steel
====================================================================================================================================
</TABLE>
<PAGE>
Exhibit 10.02(g)
MOU EXTENSION AGREEMENT
- --------------------------------------------------------------------------------
THIS EXTENSION AGREEMENT, dated this 22nd of September, 1997, by and
between American Axle & Manufacturing, Inc. ("AAM") and General Motors
Corporation ("GM").
WHEREAS, AAM and GM have entered into that certain Amended and Restated
Memorandum of Understanding, dated September 2, 1997 ("MOU"), which becomes null
and void unless there is a closing of the RSP Agreement with Blackstone on or
before September 30, 1997; and
WHEREAS, the parties wish to extend the period within which such
closing may occur.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties, intending to be
legally bound, hereby mutually agree as follows:
1. The third sentence of paragraph 7 of the MOU shall be amended to
extend the date from September 30, 1997 to October 31, 1997, such that the
sentence shall now read as follows:
"If there is not a closing on or before October 31, 1997, of the RSP
Agreement with Blackstone pursuant to the provisions of said RSP Agreement, this
MOU shall never become effective or operative and shall be null and void;
furthermore; the CSA shall continue as the same is now in effect and AAM shall
be under no obligation whatsoever to end the CSA."
2. Defined terms not defined herein shall have the meanings ascribed to
them in the MOU.
IN WITNESS WHEREOF, and intending to be legally bound, the parties
hereto have caused this Extension Agreement to be executed on the date first set
forth above.
AMERICAN AXLE & MANUFACTURING, INC. GENERAL MOTORS CORPORATION
By: /s/ Richard E. Dauch By: John Stiles
------------------------------- ---------------------------
Title: President & C.E.O. Title: Exec. Dir. WW Purchasing
---------------------------- ------------------------
<PAGE>
GMCL PURCHASE ORDER AGREEMENT*
BETWEEN
AMERICAN AXLE & MANUFACTURING, INC.
AND
GENERAL MOTORS OF CANADA LIMITED
- --------
* Portions of this Exhibit 10.03 were omitted and filed separately with the
Secretary of the Securities and Exchange Commission (the "Commission")
pursuant to an application for confidential treatment filed with the
Commission pursuant to Rule 406 under the Securities Act of 1933, as amended.
Such portions are marked by the symbol "***".
<PAGE>
GMCL PURCHASE ORDER AGREEMENT
This Agreement, (the "Agreement") effective March 1, 1994 (the "Effective
Date"), is entered into by AMERICAN AXLE & MANUFACTURING, INC. ("AAM"), a
corporation organized under the laws of the State of Delaware, and GENERAL
MOTORS OF CANADA LIMITED ("GMCL"), a corporation organized under the laws of
Canada.
P R E M I S E S
WHEREAS, AAM desires to sell to GMCL, and GMCL desires to purchase from AAM,
certain motor vehicle components upon the terms and conditions stated herein;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and in consideration of the mutual promises
contained herein, intending to be legally bound, AAM and GMCL hereby agree as
follows:
ARTICLE 1 - PURCHASE AND SUPPLY COMMITMENTS
1.1 Commitment for Certain GMCL Requirements:
A) For purposes of this Agreement, the term "Existing Components" shall
(collectively or individually) mean certain components which are currently
produced by General Motors Corporation ("GM") or by GMCL's St. Catharines Axle
operation including, but not limited to, front and rear axles, front
suspensions, steering linkages, stabilizer bars, rear propshafts, front
auxiliary prop shafts, brake drums, wheel spindles, forgings, connecting rods
and caps, and related parts, (each a "Family" of Existing Components) as set
forth in detail, with part numbers, on Exhibit "A" attached hereto and
incorporated herein and shall include successors to such Existing Components
which can be manufactured by AAM without significant changes in tooling.
B) GMCL and AAM agree that following the Effective Date of this Agreement AAM
shall, subject to Paragraph 1.1(C) below, be the sole-source supplier to GMCL
for the Existing Components and GMCL shall purchase from AAM, and AAM shall
supply to GMCL, pursuant to purchase orders issued by GMCL and pursuant to this
Agreement, all of GMCL's requirements for such Existing Components, so long as:
(a) GMCL continues regular production of the applicable vehicle
model requiring such Existing Components; or
(b) GMCL continues to require such Existing Components as service
parts for such vehicles, subject to Paragraph 3.5 herein.
<PAGE>
Successors to Existing Components being supplied by AAM that require significant
changes in tooling are referred to as "New Components" and shall be sourced in
accordance with Paragraph 1.2 herein; and
C) AAM acknowledges that certain sourcing/purchasing and/or supply arrangements
may exist on the Effective Date between GMCL, and any of GM, GM or GMCL
affiliates or non-affiliated suppliers which relate to the sourcing/purchasing
and/or supply of certain of the Existing Components (the "Existing
Relationships"). To the extent that the Existing Relationships do not, on the
Effective Date, rely on Existing Components produced in any of:
(a) the GM plants which, following the Effective Date will be
owned by AAM (the "AAM Plants"); or
(b) the GMCL rear drive assembly operation located in
St. Catharines, Ontario (the "GMCL Axle Operation")
and notwithstanding Section 1.1 of the U.S. Supply Agreement, such relationships
shall continue unabated and shall not in any way be limited as a result of this
Agreement notwithstanding the provisions of Paragraph 1.1(B) above and GMCL
shall be permitted to supply and/or source such Existing Components in a manner
consistent with the Existing Relationships; provided that any increases or
decreases in volume requirements of any GM division which is part of such an
Existing Relationship for Existing Components will be shared by the parties in
accordance with those proportions, of the GM division's requirements for such
Existing Components, supplied by them as at the Effective Date. GMCL agrees that
it shall provide a listing of the Existing Relationships, including a
description thereof, within six (6) months of the Effective Date.
1.2 Sourcing of New Components. In addition to issuing purchase orders pursuant
to Paragraph 1.1 herein, any purchase orders issued by GMCL during the term of
this Agreement, or extension thereof, for New Components required by GMCL for
use as original equipment or as service parts in vehicles manufactured or sold
by GMCL shall be directed to AAM, provided in each case that AAM has submitted
its proposal in a timely fashion in accordance with GMCL's request for
quotation, that AAM possesses in GMCL's reasonable judgment the manufacturing
capability to supply GMCL's requirements and AAM's terms are competitive with
proposals submitted by companies excluding GM and its affiliates with respect to
quality, service and price. In the event GMCL determines that a proposal
submitted by AAM pursuant to this Paragraph is not competitive with respect to
quality, service and price, GMCL shall so notify AAM and specify in writing the
nature and extent to which AAM's proposal is not competitive. If within thirty
(30) days after such notice AAM does not provide GMCL reasonable assurances of
AAM's ability and commitment to meet or exceed such competitive standard, then
GMCL may enter into contracts to purchase the New Components in question from
other suppliers at terms no less favorable than those offered by AAM for such
time periods and quantities as GMCL in its sole discretion may decide. The terms
for the supply of any such New Components by AAM shall be independent of the
terms of this Agreement except as specifically provided herein.
-2-
<PAGE>
1.3 Opportunities to Supply Other Requirements. GMCL will provide AAM
opportunities to submit proposals through GM's advanced purchasing process to
supply GMCL's requirements for other components which AAM is or may be qualified
to supply, with the terms of supply of any such components to be determined
through that process, independent of the terms of this Agreement.
ARTICLE 2 - MINIMUM TERM, EVERGREEN TERM, TERMINATION
2.1 Minimum Seven (7) Year Term. This Agreement shall become effective upon the
Effective Date and shall remain in effect for a minimum period of seven (7)
years from the Effective Date, subject to an evergreen renewal under Paragraph
2.2 below, non-renewal under Paragraph 2.3 below, and early termination under
Paragraphs 2.4 and 2.5 below.
2.2 ***
2.3 ***
2.4 Early Termination. GMCL may terminate this Agreement in any of the
following events:
(a) AAM becomes insolvent or enters into bankruptcy, receivership,
liquidation, an arrangement for the benefit of creditors,
dissolution or other similar proceeding;
(b) A significant portion of AAM's assets becomes subject to
attachment, embargo or expropriation; or
(c) More than ten percent (10%) of the voting shares of AAM become
owned or controlled, directly or indirectly, by a competitor
of GMCL in the business of manufacturing motor vehicles.
However, this Paragraph 2.4(c) shall not apply if AAM
registers and sells its shares in any public offering.
2.5 Early Termination procedure. In the event GMCL elects to terminate this
Agreement pursuant to Paragraph 2.4 above, GMCL shall first notify AAM in
writing of the grounds for the intended termination. In the event AAM fails to
remedy such grounds for termination within sixty (60) days after such notice,
then GMCL may, at its option, terminate this Agreement effective at any time
during the remaining term of this Agreement.
ARTICLE 3 - PRICING
3.1 Prices and Adjustments. The unit prices for Existing Components applicable
during the term of this Agreement, subject to increases or decreases pursuant to
Paragraph 3.6 herein and the last sentence of this Paragraph 3.1 and further
subject to adjustments in calendar year 1996
-3-
<PAGE>
and all calendar years thereafter pursuant to Paragraph 3.2 herein, have been
negotiated by GMCL and AAM and are stated in the Supply Schedule attached as
Exhibit A. All prices for Existing Components are on a F.O.B. (shipping point)
basis. Title and risk of damage or loss to the Existing Components and New
Components shall pass upon delivery, F.O.B. (shipping point). Price increases or
decreases shall be made as the result of engineering changes ordered by GMCL or
GM in the specifications for Existing Components, limited to changes in the cost
plus a proportional change in profit.
3.2 Cost Reductions. Any and all price reductions or increases to Existing
Components effected for the benefit of GM and its subsidiaries pursuant to
Sections 3.2 and 3.3 of the Component Supply Agreement between AAM and GM dated
February 17, 1994 (the "U.S. Supply Agreement") shall apply equally to the
Existing Components and the prices for the Existing Components shall be adjusted
accordingly at such time as the corresponding price adjustments are made
pursuant to the above referenced Sections of the U.S. Supply Agreement.
3.3 Payment Terms.
A) GMCL will pay for all Existing Components and New Components shipped
from any AAM Plant as follows:
(a) All AAM sales of Existing Components or New Components to GMCL
for the *** after the Effective Date shall be paid *** in
immediately available funds *** shipment of the product from
the AAM Plants or the GMCL Axle Operation, as the case may be.
(b) All AAM sales of Existing Components or New Components to GMCL
between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants or
the GMCL Axle Operation, as the case may be.
(c) All AAM sales of Existing Components or New Components to GMCL
between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants or
the GMCL Axle Operation, as the case may be.
(d) All AAM sales of Existing Components or New Components to GMCL
between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants or
the GMCL Axle Operation, as the case may be.
(e) All AAM sales of Existing Components or New Components to GMCL
between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants or
the GMCL Axle Operation, as the case may be.
-4-
<PAGE>
(f) All AAM sales of Existing Components or New Components to GMCL
between the *** shall be paid in immediately available funds
*** following shipment of the product from the AAM Plants or
the GMCL Axle Operation, as the case may be.
(g) All AAM sales of Existing Components or New Components to GMCL
*** shall be made on the *** following GMCL's receipt of
shipments ***.
B) For all shipments of Existing Components and New Components shipped from any
location other than an AAM Plant, GMCL shall on the *** following GMCL's receipt
of such shipment ***.
AAM and GMCL will meet no less frequently than every two (2) years to discuss
payment terms and may modify the above schedule by joint agreement.
3.4 Service Parts. Regarding service parts, the following is agreed:
(a) General Motors of Canada Limited Service Parts Organization
("GMCL/SPO") will issue, annually, contracts for past model
service parts at competitive prices to be negotiated.
(b) For service parts which are for current models, prices will
be based on the original equipment price plus a markup for
packaging, bar coding and other value added requirements
specified by GMCL/SPO, limited to the costs of such
activities plus a proportional adjustment in profit.
(c) For current model and past model service parts requirements,
the parties agree to freeze the current prices through nine
(9) months following the Effective Date. During this time,
AAM will confirm its cost to produce the existing service
parts and GMCL will obtain competitive bids from companies
excluding GM and its affiliates in order to establish the
competitive prices. It is the expectation of the parties
that, at GMCL's option, (i) the prices may be adjusted to
reflect the market price; (ii) the service parts may be
re-sourced to other suppliers, provided AAM is given the
opportunity to supply such service requirements pursuant to
the procedures contained in Paragraph 1.2 above, or (iii) the
service parts may be subject to GMCL's one time purchase from
AAM for all of GMCL's future requirements for the parts in
question at a mutually agreed upon price. It is expected that
adjustments will be made as analyses are completed, but in no
event will adjustments be made later than nine (9) months
after the Effective Date. If in some extenuating situations
the analyses are not complete, AAM will consider an extension
of the deadline.
3.5 Resale of Productive Material. Any and all price reductions or increases to
Existing Components produced in the AAM Plants, implemented for the benefit of
GM, and its subsidiaries pursuant to Section 3.6 of the U.S. Supply Agreement
shall apply equally to the
-5-
<PAGE>
Existing Components and the prices for the Existing Components shall be
adjusted accordingly at such time as the corresponding price adjustments are
made pursuant to the U.S. Supply Agreement.
ARTICLE 4 - PURCHASE ORDERS AND FIELD WARRANTY COSTS
4.1 (a) Standard Purchase Orders: Attached hereto as Exhibit "B" is the
standard form of purchase order to be utilized in connection with this
Agreement. All purchase orders issued by GMCL and accepted by AAM pursuant to
this Agreement shall utilize such standard form purchase order and shall be
governed by its terms and conditions, provided however, that Paragraphs 6 and
15 of the purchase order terms and conditions shall be superseded by Article 2
of this Agreement and may not be invoked or exercised by GMCL with respect to
any purchase orders issued and accepted under this Agreement, and Paragraph 13
of the purchase order terms and conditions shall be superseded by Article 7 of
this Agreement. Paragraph 3 of the purchase order terms and conditions shall be
superseded by Paragraph 4.1(b) below. To the extent that the terms of this
Agreement and the purchase order conflict, this Agreement shall prevail. ***
(b) Force Majeure: Any delay or failure of either party to perform its
obligations hereunder shall be excused if, and to the extent that it is caused
by an event or occurrence beyond the reasonable control of the party and without
its fault or negligence, such as by way of example and not by way of limitation,
acts of God, actions by any governmental authority (whether valid or invalid),
fires, floods, windstorms, explosions, riots, natural disasters, wars, sabotage,
labour problems (including lockouts, strikes and slowdowns), inability to obtain
power, material, labour, equipment or transportation, or court injunction or
order; provided that written notice of such delay (including the anticipated
duration of the delay) shall be given by the affected party to the other party
within ten (10) days. During the period of such delay or failure to perform by
AAM, GMCL, at its option, may purchase goods from other sources and reduce its
schedules to AAM by such quantities, without liability to AAM, or have AAM
provide the goods from other sources in quantities and at times requested by
GMCL, and at the price set forth in this order. If requested by GMCL, AAM shall,
within ten (10) days of such request, provide adequate assurance that the delay
shall not exceed thirty (30) days. If the delay lasts more than thirty (30) days
or AAM does not provide adequate assurance that the delay will cease within
thirty (30) days, GMCL may immediately cancel the order without liability.
-6-
<PAGE>
(c) Duty Drawback Rights: Each purchase order submitted to AAM includes
all related customs duty and import drawback rights, if any (including rights
developed by substitution and rights which may be acquired from AAM's
suppliers), which AAM can transfer to GMCL. AAM agrees to inform GMCL of the
existence of any such rights and upon request to supply such documents as may be
required by GMCL to obtain such drawback.
ARTICLE 5 - QUALITY CONTROL
5.1 AAM will institute and maintain a company-wide continuous improvement
process. This process will be customer driven from the standpoint of both GMCL
and the customer of GMCL products. This process shall include preventive
maintenance plans that will maintain the quality of parts as they are
manufactured. The continuous improvement plan will document the method to
monitor and evaluate the process.
5.2 AAM will maintain and strive to improve the current quality control and
inspection system. Such improvement will incorporate General Quality Standards,
Targets for Excellence and other GMCL policies generally applicable to
suppliers. This also includes the use of the AIAG Production Part Approval
Process manual, AIAG reference manual for Potential Failure Modes and Effects
Analysis, AIAG reference manual for Fundamental Statistical Process Control, the
GM reference manual for Key Characteristic Designation System and others.
5.3 AAM will provide support to GMCL for immediate problem resolution, analysis
of various sources of customer dissatisfaction, such as PPM (parts per million),
CAMIP (Continuous Automotive Marketing Information Program), glove box surveys,
and other quality measurement date which may become available to the parties
from time to time.
5.4 GMCL has the option to provide at its expense a PICOS team to support AAM
cost and productivity improvement activities.
ARTICLE 6 - PRODUCT LIABILITY
6.1 AAM shall defend, indemnify, and hold harmless GMCL, its officers, agents,
and employees, from and against any and all claims, suits, causes of action,
liabilities, losses, damages, costs of settlement, and expenses (including
reasonable counsel fees) which may be imposed upon or incurred by GMCL from
claims, suits, or causes of action (including without limitation those for
death, personal injury, or property damage) by any person whatsoever at any time
against GMCL, its officers, agents, and employees, arising from, caused or
alleged to be caused by the manufacture, operation, use, sale, or transfer of
any Existing Components or New Components or the design of New Components
supplied hereunder and any other products manufactured by AAM.
-7-
<PAGE>
6.2 GMCL shall defend, indemnify, and hold harmless AAM, its officers, agents,
and employees, from and against any and all claims, suits, causes of action,
liabilities, losses, damages, costs of settlement, and expenses (including
reasonable counsel fees) which may be imposed upon or incurred by AAM from
claims, suits, or causes of action (including without limitation those for
death, personal injury, or property damage) by any person whatsoever at any time
against AAM, its officers, agents, and employees, arising from, caused or
alleged to be caused by the manufacture, operation, use, sale, or transfer of
any components or products manufactured or sold by GMCL other than Existing
Components or New Components or the design of components or products by GMCL.
ARTICLE 7 - INSURANCE
7.1 Unless otherwise agreed by GMCL and AAM, AAM agrees to maintain, at its own
expense, the following types of insurance coverage (underwritten by insurance
companies reasonably satisfactory to GMCL) at all times from the Effective Date
through ten (10) years after the termination or expiration of this Agreement:
(a) Broad form comprehensive general liability insurance on an
occurrence form basis (including product, completed
operations, and contractual liability covering the terms of
this Agreement), whether primary or excess coverage or a
combination thereof, with a combined single limit for personal
injury and property damage of not less than Ten Million
Dollars ($10,000,000) (U.S.) per occurrence.
(b) Comprehensive automobile liability insurance, whether primary
or excess coverage or a combination thereof, with a combined
single limit for personal injury and property damage of not
less than Ten Million Dollars ($10,000,000) (U.S.) per
occurrence.
(c) Workers compensation insurance in statutory limits and
employer's liability insurance with a limit of not less than
One Million Dollars ($1,000,000) (U.S.) for each state or
province in which AAM operates.
(d) All risk property insurance on a full replacement cost basis,
with no co-insurance requirement.
7.2 Prior to execution of this Agreement, and each year thereafter for the term
of this Agreement, AAM shall provide GMCL with certificates of insurance
evidencing General Motors of Canada Limited as an additional insured for the
coverage referred to above in Paragraph 7.1(a), (c), and (d). No cancellation,
modification, or material change to such coverage shall be made without GMCL's
written approval. AAM agrees to provide its insurer with notice of this
requirement.
ARTICLE 8 - GENERAL PROVISIONS
-8-
<PAGE>
8.1 No Agency. This Agreement does not constitute either party the agent,
partner, joint venturer or legal representative of the other party. Neither
party is authorized to create any obligation on behalf of the other party.
8.2 Notices. Any notice under this Agreement shall be in writing (letter, telex,
facsimile or telegram) and shall be effective when received by the addressee at
its address indicated below.
(a) Notice sent to AAM shall be addressed as follows:
American Axle & Manufacturing, Inc.
1840 Holbrook Avenue
Detroit, Michigan 48212-3488
Att: B.G. Mathis
Vice-President Administration
Facsimile No.: (313) 974-2070
(b) Notice sent to GMCL shall be addressed as follows:
General Motors of Canada Limited
Worldwide Purchasing
1908 Colonel Sam Drive
Oshawa, Ontario
Att: Director of Purchasing
Facsimile No.: (905) 644-4491
(c) The parties by notice hereunder may designate other addresses
to which notices shall be sent.
8.3 Amendments. No amendment to this Agreement shall be binding upon either
party unless it is in writing and is signed by both parties. This Agreement
supersedes any prior agreements between the parties concerning the subject
matter herein and therein.
8.4 Assignment. Neither party may assign any of its rights or delegate any of
its duties under this Agreement without first obtaining consent of the other
party; provided, however, that GMCL may assign any or all of its rights and
obligations to any affiliate or subsidiary of General Motors Corporation.
8.5 Law and Jurisdiction. This Agreement shall be governed by the laws of the
Province of Ontario, Canada. Each party consents, for purposes of enforcing this
Agreement, to personal jurisdiction, service of process and venue in any
provincial or federal court within the Province of Ontario, Canada having
jurisdiction over the subject matter. The terms of the United Nation Convention
on Contracts for the International Sale of Goods are expressly excluded from any
application to this Agreement.
8.6 Certifications for NAFTA AAM agrees to do all such things and provide all
such documents, instruments, certificates or other information (including
without limitation,
-9-
<PAGE>
Certificates of Origin and Manufacturer's Affidavits) as may be requested by
GMCL for the purpose of accurately providing GMCL with that information which it
deems necessary to ensure that GMCL is able to ensure Preferential Duty
Treatment under the North American Free Trade Agreement (the "NAFTA") of all
Existing Components and New Components purchased from AAM and to accurately
calculate the Regional Value Content including the Value of Non- Originating
Materials and the value of Originating Materials (as those terms are defined in
the NAFTA) of Existing Components, and New Components purchased from AAM and of
any products into which same are incorporated.
8.7 Taxes. GMCL shall be liable for and shall pay to AAM or the appropriate
taxing or governmental authority, any tax, duty, levy, import charge or other
such amount properly payable in connection with the purchase by GMCL of any
Existing Components or New Components pursuant to this Agreement.
-10-
<PAGE>
IN WITNESS WHEREOF, GMCL and AAM have caused this Agreement to be executed in
multiple counterparts by their duly authorized representatives this 17TH day of
FEBRUARY, 1994.
GENERAL MOTORS OF CANADA AMERICAN AXLE &
LIMITED MANUFACTURING, INC.
By: /s/ J. G. Waechter Jr. By: /s/ R.E. Dauch
------------------------- ----------------------------
Title: Vice President Title: President & CEO
----------------------- -------------------------
By: /s/ L. D. Worrall
-------------------------
Title: Assistant Secretary
-----------------------
-11-
<PAGE>
EXHIBIT "A" TO GMCL PURCHASE ORDER AGREEMENT
EXISTING COMPONENTS
<PAGE>
EXHIBIT 'A' TO COMPONENT SUPPLY AGREEMENT
SUPPLY SCHEDULE
GMCL - COMPONENT CONTRACTS - SAGINAW DIVISION
CARLINE F Component Type: Propeller Shaft & Uni J
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
26039759 Shaft Asm-Prp 44050 ***
26039989 Shaft Asm-Prp 44050 ***
26041126 Shaft Asm-Prp 44050 ***
26041128 Shaft Asm-Prp 44050 ***
26041428 Shaft Asm-Prp 44050 ***
<CAPTION>
ST. CATH. AXLE PLANT PURCHASES
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
22506477 Axle Forging 44007 ***
26009534 Axle Forging 44007 ***
26026833 Ring Gear Forg. 44007 ***
26026834 Ring Gear Forg. 44007 ***
26026835 Ring Gear Forg. 44007 ***
- -----------------------------------------------------------------------------------------------------------------------------
26033195 Axle Forging 44007 ***
26037714 Ring Gear Forg. 44007 ***
26037722 Ring Gear Forg. 44007 ***
26037730 Ring Gear Forg. 44007 ***
- -----------------------------------------------------------------------------------------------------------------------------
26010416 Axle Forging 44066 ***
26014760 Dr. Pinion Forge. 44066 ***
26026777 Dr. Pinion Forge. 44066 ***
26026778 Dr. Pinion Forge. 44066 ***
26037710 Dr. Pinion Forge. 44066 ***
- -----------------------------------------------------------------------------------------------------------------------------
LEGEND
18172 - Cleveland Oh
44001 - Saginaw MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
<PAGE>
26037718 Dr. Pinion Forge. 44066 ***
26037726 Dr. Pinion Forge. 44066 ***
</TABLE>
LEGEND
18172 - Cleveland Oh
44001 - Saginaw MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
<PAGE>
<TABLE>
<CAPTION>
CARLINE F Component Type: Rear Axle Asm
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
26037552 Axle Asm (Ratio 3.42) 44007 ***
26038881 Axle Asm (3.23 Ratio) 44007 ***
26041287 Axle Asm (3.23 Ratio) 44007 ***
26043076 Axle Asm (Ratio 3.23) 44007 ***
26043261 Axle Asm (2.73 Ratio) 44007 ***
26043262 Axle Asm (Ratio 2.73) 44007 ***
</TABLE>
LEGEND
18172 - Cleveland Oh
44001 - Saginaw MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
<PAGE>
CARLINE Truck Component Type: Rear Axle Asm
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
26031842 Rear Axle Asm 44066 ***
26031843 Rear Axle Asm ***
26031844 Rear Axle Asm 44066 ***
26031846 Rear Axle Asm ***
26031847 Rear Axle Asm 44066 ***
26031848 Rear Axle Asm ***
26031849 Rear Axle Asm ***
26031851 Rear Axle Asm ***
26031852 Rear Axle Asm ***
26031853 Rear Axle Asm ***
26031855 Rear Axle Asm ***
26031856 Rear Axle Asm ***
26031858 Rear Axle Asm ***
26031859 Rear Axle Asm ***
26031860 Rear Axle Asm ***
26031861 Rear Axle Asm ***
</TABLE>
LEGEND
14014 - St. Catherine Ont
18172 - Cleveland Oh
44001 - Sag MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
44971 - Toronto Ont
44972 - Romulus MI
<PAGE>
CARLINE CANEXPO Component Type:
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
26026301 Axle Asm 44007 ***
26027087 Arm Asm Strg Linkage 44007 ***
26027361 Axle Asm 44007 ***
26029260 Axle Asm 44007 ***
26029411 Linkage Asm 44007 ***
26029956 Axle Asm 44066 ***
26030336 Axle Asm 44007 ***
26031325 Axle Asm 44007 ***
26031328 Axle Asm 44007 ***
26031863 Axle Asm 44066 ***
26033136 Linkage Asm - Strg 44007 ***
26033137 Linkage Asm - Strg 44007 ***
26021659 Linkage Asm 44007 ***
26022466 Shaft Asm 44050 ***
14026579 Arm Asm - Strg Knu 44066 ***
14089551 Shaft-Frt-Stab 44066 ***
15530363 Arm Pit 44007 ***
15548449 Shaft-Frt Stab 44066 ***
15595963 Arm Asm - Strg Linkage 44007 ***
15651267 Arm Pit 44007 ***
15677613 Shaft-Frt Stab 44066 ***
15684329 Shaft-Frt Stab 44066 ***
26036553 Axle Asm-Frt 44066 ***
26036554 Axle Asm-Frt 44066 ***
26036901 Axle Asm-RR 44066 ***
</TABLE>
LEGEND
18172 - Cleveland Oh
44001 - Saginaw MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
44971 - Toronto Ont Can
<PAGE>
CARLINE W Component Type: Shaft-Frt Stab
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
14101234 Shaft-Frt Stab 44066 ***
26024362 Shaft-Frt Stab 44066 ***
</TABLE>
LEGEND
44001 - Saginaw MI
44021 - Athens AL
44066 - Detroit MI
44971 - Toronto Ont
<PAGE>
CARLINE Truck Component Type: Rear Prop Shafts
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
26006680 Prop Shaft 44050 ***
26013277 Prop Shaft 44050 ***
26014287 Prop Shaft 44050 ***
26014288 Prop Shaft 44050 ***
26014905 Prop Shaft 44050 ***
26018066 Prop Shaft 44050 ***
</TABLE>
LEGEND
14014 - St. Catherine Ont
18172 - Cleveland Oh
44001 - Sag MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
44971 - Toronto Ont
44972 - Romulus MI
<PAGE>
CARLINE F Component Type: Front Stabilizer
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
26025316 Shaft-Frt-Stab 44066 ***
26032907 Shaft-Frt-Stab 44066 ***
</TABLE>
LEGEND
18172 - Cleveland Oh
44001 - Saginaw MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
<PAGE>
CARLINE Truck Component Type: Frt Drive Shaft
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
15548449 Stabilizer Bar 44066 ***
</TABLE>
CARLINE Truck Component Type: Frt Drive Shaft
<TABLE>
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
26022466 Prop Shaft 44050 ***
26029958 Prop Shaft 44050 ***
CARLINE Truck Component Type: Front Axles
<CAPTION>
Part Source Price
Number Description Code U.S.
- -----------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
26036553 Front Axle Asm 44066 ***
26036554 Front Axle Asm 44066 ***
26036556 Front Axle Asm 44066 ***
26036559 Front Axle Asm 44066 ***
</TABLE>
LEGEND
14014 - St. Catherine Ont
18172 - Cleveland Oh
44001 - Sag MI
44007 - Buffalo NY
44021 - Athens AL
44050 - Three River MI
44066 - Detroit MI
44971 - Toronto Ont
44972 - Romulus MI
<PAGE>
EXHIBIT "B" TO GMCL PURCHASE ORDER AGREEMENT
GMCL PURCHASE ORDER
<PAGE>
GMCL PURCHASE ORDER
TERMS AND CONDITIONS OF PURCHASE
1. CONTRACT: The contract comprising this order and its acceptance is to
be construed according to the laws of the Province from which this
order issues as shown by the address of Buyer which is printed on the
face of this order. This order is non- assignable by the Seller.
2. DELIVERY SCHEDULES: Deliveries are to be made both in quantities and at
time specified in schedules furnished by Buyer. Buyer will have no
liability for payment for material or items delivered to Buyer which
are in excess of quantities specified in the delivery schedules. Buyer
may from time to time change delivery schedules or direct temporary
suspension of scheduled shipments.
3. EXCUSABLE DELAYS: Except with respect to defaults of subcontractors,
Seller shall not be liable for delays, or defaults in deliveries due
to causes beyond its control and without its fault or negligence. If
at any time Seller has reason to believe that deliveries will not be
made as scheduled, written notice setting for the cause of the
anticipated delay will be given immediately to Buyer. Any delay due to
default of subcontractor will be excusable if beyond the control and
without the fault or negligence of both Seller and its subcontractor
and if Seller establishes that it could not obtain supplies or
services from any other source in time to meet the delivery schedule.
4. WARRANTY: Seller expressly warrants that all the material and work
covered by this order will conform to the specifications, drawing,
samples, or other description furnished or specified by Buyer and will
be merchantable of good material and workmanship and free from defect.
Seller expressly warrants that all the material covered by this order
which is the product of Seller or is in accordance with Seller's
specification, will be fit and sufficient for the purposes intended.
5. POTENTIALLY HARMFUL INGREDIENTS: Seller agrees to promptly furnish to
Buyer (1) upon written request, a list of all ingredients in materials
purchased hereunder and, as necessary, the amount of one or more
ingredients, and (2) thereafter, information concerning any changes in
such ingredients.
6. CANCELLATION: Buyer reserves the right to cancel all or any part of the
work covered by this order if Seller does not make deliveries as
specified in the schedules or so fails to make progress as to endanger
performance of the work and does not correct such failure within ten
(10) days after receipt of written notice from Buyer specifying such
failure, or if Seller breaches any of the terms hereof including the
warranties of Seller.
<PAGE>
7. INSPECTION: All material shall be received subject to Buyer's
inspection and rejection. Defective material not in accordance with
Buyer's specifications will be held for Seller's instruction at
Seller's risk and if Seller so directs, will be returned at Seller's
expense. No goods, returned as defective shall be replaced without a
new order and schedule. Payment for material on this order prior to
inspection shall not constitute an acceptance thereof, nor will
acceptance remove Seller's responsibility for latent defects.
8. SPECIFICATION CHANGES: Buyer reserves the right at any time to make
changes in drawings and specifications as to any material and/or work
covered by this order. Any difference in price or time for performance
resulting from such changes shall be equitably adjusted and the
contract and/or schedule shall be modified in writing accordingly.
9. BUYER'S PROPERTY: Unless otherwise indicated in this order, all
supplies, materials, tools, jigs, dies, fixtures, patterns, equipment,
and other items furnished by Buyer, either directly or indirectly, to
Seller to perform this order, or for which Seller has been reimbursed
by Buyer, shall be and remain the property of Buyer, provided,
however, that Seller shall bear the risk of loss of and damage to such
property, normal wear and tear excepted. Such property shall at all
times be properly housed and maintained by Seller; shall be insured by
Seller with fire and extended insurance coverage for the replacement
value thereof; shall not be used by Seller for any purpose other than
the performance of this order unless otherwise authorized in writing
by Buyer, shall be deemed to be personal property (moveable property
in Quebec), shall be conspicuously marked "Property of General Motors
of Canada Limited" by Seller, shall not be commingled with the
property of Seller or with that of a third person; and shall not be
moved from Seller's premises without Buyer's prior written approval.
Upon the request of Buyer, such property shall be immediately
delivered to Buyer by Seller either (i) F.O.B. cars or trucks at
Seller's plant, properly packed and marked in accordance with the
requirements of the carrier selected by Buyer to transport such
property, or (ii) to any location designated by Buyer, in which event
Buyer shall pay to Seller the cost of delivering such property to such
location. Buyer shall have the right to enter onto Seller's premises
at all reasonable times to inspect such property and Seller's records
with respect thereto.
10. REMEDIES: The remedies herein reserved shall be cumulative, and
additional to any other or further remedies provided in law or equity.
No waiver of a breach of any provisions of the order shall constitute a
waiver of any other breach, or of such provision.
11. PATENTS, INDUSTRIAL DESIGNS AND COPYRIGHTS: By accepting this order or
performing under it Seller (a) agrees to defend and hold harmless
Buyer, its successors and customers against all suits and from all
damage arising out of suits or claims for actual or alleged direct or
contributory infringement of, or inducement, to infringe, any Canadian
or foreign Patent, industrial Design or copyright by reason of
-2-
<PAGE>
the manufacture, use of sale of the goods and/or services ordered,
including infringement arising out of compliance with specifications
furnished by Buyer, (b) agrees not to assert any claim against Buyer
under the patent Act, Copyright Act, Industrial design Act, or any Sale
of Goods statutes or otherwise, including any hold harmless or similar
claim, related in any way to any claim asserted against Seller or Buyer
for patent or copyright infringement or the like arising out of
performance under this order, including infringement arising out of
compliance with specifications furnished by Buyer, and (c) hereby
grants to Buyer a nonexclusive, royalty-free, irrevocable license to
repair and have repaired, to reconstruct and have reconstructed the
goods ordered hereunder Seller hereby assigns to Buyer all right, title
and interest in and to copyrights in any copyrightable material created
or produced for buyer under this order.
12. TECHNICAL INFORMATION DISCLOSED TO BUYER: Seller agrees not to assert
any claim (other than a claim for patent infringement) with respect to
any technical information which Seller shall have disclosed or may
hereafter disclose to Buyer in connection with the goods or services
covered by this order.
13. INSURANCE: If this order covers the performance of labour for Buyer,
Seller agrees to indemnify and protect Buyer against all liabilities,
claims or demands for injuries or damages to any person or property
growing out of the performance of this contract, by Seller, its
servants, employees, agents or representatives. Further, Seller
represents that it has made proper provisions for adequate workmen's
compensation and agrees to furnish insurance carriers certificate
showing that Seller has a minimum $1,000,000 Public Liability and
$1,000,000 Property Damage insurance coverage. Said certificates must
set forth amount of coverage, number of policy and date of expiration.
The purchase of such insurance coverage or furnishings of the
aforesaid certificate shall not be in satisfaction of Seller's
liability hereunder or in any way modify Seller's indemnification of
buyer except that Seller shall not be obligated to indemnify Buyer for
injuries or damages caused solely by the negligence of Buyer.
14. ADVERTISING: Seller shall not without first obtaining the written
consent of Buyer, in any manner advertise or publish the fact that
Seller has contracted to furnish Buyer the material herein ordered, and
for failure to observe this provision Buyer shall have the right to
terminate this order without any obligations to accept deliveries after
the date of termination or make further payments except for completed
articles delivered prior to termination.
15. INSOLVENCY: Buyer may forthwith cancel this order in the event of the
happening of any of the following, or any other comparable event:
insolvency of the Seller, the filing of a voluntary assignment in
bankruptcy, the firing of any petition to have Seller declared bankrupt
provided it is not vacated within thirty (30) days from the date of
filing, the appointment of a receiver or trustee for Seller provided
such appointment is not vacated within thirty (30) days from the date
of such appointment, the execution by Seller of an assignment for the
benefit of creditors.
-3-
<PAGE>
16. BUYER'S DESIGN: Seller agrees that if the articles or materials covered
by this order are to be manufactured to a design furnished by Buyer,
Seller will not, without the consent of Buyer, manufacture such
articles of materials from said design for sale to other than Buyer.
17. GOVERNMENT REGULATIONS: Seller agrees to comply with all applicable
Federal, Provincial, or local laws, rules, regulations or ordinances.
SHIPPING AND BILLING
A) All material shall be suitably packed, marked and shipped in accordance
with the requirements of common carriers in a manner to secure lowest
transportation cost, and no additional charge shall be made by the
Buyer therefor unless otherwise stated herein.
B) No charge shall be made by Seller for cartage or storage, unless
otherwise stated herein.
C) 1. All containers for shipment must be individually marked.
Bags, bales and bundles for shipments must be individually
tagged, all showing clearly:
(a) Supplier's Name
(b) Part Number (GM)
(c) Quantity
(d) Receiving Area
(e) Shipping address as shown on the production
purchase order or as otherwise designed by
other types of orders.
2. Returnable containers must be clearly marked "RETURNABLE".
3. (a) All cartons, barrels, crates, kegs and
pallets are to be individually stenciled
showing Case Number.
(b) All bags, bales, and bundles are to be
individually tagged showing container
number.
4. In using salvaged cartons, boxes, etc., it is imperative that
any previous markings are obliterated and that the markings as
required under Section 1 are clearly legible even if necessary
to relabel.
5. In cases of carload shipments all small containers should, as
far as possible be placed in the doorway of the car.
-4-
<PAGE>
D) Two copies of Packing Slips must accompany each shipment made by
Transport. These must be attached to Bills of Lading and information
must be shown on Bills of Lading as follows: "Packing Slips Attached".
Two copies of Packing Slips covering shipments by Air or Rail Express,
L.C.L. and Postal, must be included in one of the containers and this
container must show the following: "Packing Slips Enclosed". Two copies
of Packing Slips covering Carload shipments must be fastened inside of
the car in an area on the wall near the door.
E) Bill of Lading, or other shipping receipt, for each shipment must be
promptly forwarded by Seller to Buyer's Traffic Department.
F) Seller agrees to describe material on Bill of Lading or other shipping
receipt and to route shipment in accordance with instructions issued by
Buyer's Traffic Department.
G) Material shipped on an individual Bill of Lading shall be consigned to
one General Motors receiving area only.
H) Material shipped on an individual Bill of lading shall be billed on an
individual accounting invoice.
I) Invoices must be submitted in duplicate to Disbursements Control Dept.
Oshawa or Accounts Payable Dept., Ste. Therese and St. Catharines. The
proper commercial description of the goods must be given on all
invoices. Invoices must show the MARKS, NUMBERS, AND DESCRIPTION of the
packages in such manner as to indicate truly the quantities and values
of the articles in each package.
J) Purchase Order number and Package number will be shown on Packing
Slips, Bills of Lading, and invoices. Absence of, or incorrect Purchase
Order number, will result in delayed payment.
CUSTOMS REGULATIONS
INSTRUCTIONS AS TO INVOICING AND SHIPPING DOCUMENTS
1. In order to facilitate the importation of goods into Canada the
shipper's Bill of Lading and the carrier's Waybill must contain the
following information:
(a) Full name and address of Purchaser and/or Consignee - GM
Canada c/o XYZ Company.
(b) Complete description of goods including marks and numbers.
(c) Complete description of containers, whether cases, racks,
boxes, etc.
-5-
<PAGE>
(d) Total number of containers and/or loose pieces in shipment.
2. Vendor's "DUNS" or "GMSL" must be shown in the top right-hand corner of
the Canada Customs invoice.
3. "Returnable Containers" are to be noted on the Canada Customs invoice
as "Returnable Containers under Canada Customs Control, Ottawa file
8014-11-3".
-6-
<PAGE>
Exhibit 10.04
AAM/GMCL SUPPLY AGREEMENT*
DATED THE 17TH DAY OF February, 1994
BETWEEN: AMERICAN AXLE & MANUFACTURING, INC.
- AND -
GENERAL MOTORS OF CANADA LIMITED
- ----------------------
* Portions of this Exhibit 10.04 were omitted and filed separately with the
Secretary of the Securities and Exchange Commission (the "Commission")
pursuant to an application for confidential treatment filed with the
Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended. Such portions are marked by the symbol "***".
<PAGE>
SUPPLY AGREEMENT
This SUPPLY AGREEMENT (the "Agreement") is made and entered
into on the 17TH day of February 1994,
BY AND BETWEEN:
GENERAL MOTORS OF CANADA LIMITED,
a corporation organized and existing
under the laws of Canada
(hereinafter referred to as "GMCL")
-and
AMERICAN AXLE & MANUFACTURING, INC.,
a corporation organized and existing
under the laws of Delaware
(hereinafter referred to as "AAM")
WHEREAS AAM will become a supplier of axles to General Motors
Corporation ("GM") effective March 1, 1994;
AND WHEREAS, GMCL has agreed to provide axles to AAM in
accordance with the terms and conditions set out herein;
NOW THEREFORE, in consideration of the mutual promises and
covenants contained herein, it is mutually agreed as follows:
1. SCOPE OF THIS AGREEMENT
This Agreement shall only cover and be applicable to GMCL
Axles and Accommodation Parts (as defined below) which shall be manufactured
and/or assembled by GMCL and which shall be supplied by GMCL to AAM and shall be
purchased by AAM from GMCL for resale by AAM.
2. DEFINITIONS
When used in this Agreement, the following definitions shall
apply:
(a) "AAM" shall mean American Axle & Manufacturing, Inc.
<PAGE>
2
(b) "Accommodation Parts" shall mean any part which is not now
a GMCL Axle and which does not become a GMCL Axle pursuant to Section
3D of this Agreement and which GMCL sells to AAM pursuant to the terms
of this Agreement.
(c) "Accommodation Parts Unit Price" shall mean that selling
price between GMCL and AAM established for an Accommodation Part
pursuant to Section 4D (1) of this Agreement.
(d) "Axle Business" shall mean that business of GMCL which is
the production and sale of rear wheel drive axle assemblies and
Accommodation Parts for passenger vehicles and light duty trucks and
specifically excludes that business related to the production and sale
of independent rear suspensions, brakes, brake components and forging.
(e) "Effective Date" shall mean March 1, 1994 or such other
date as may be agreed to in writing by the Parties.
(f) "Engineering Change Notice" or "ECN" shall mean the
document which provides complete descriptions. including designs and
design information, of any proposed alteration to any existing GMCL
Axle or Accommodation Part.
(g) "Event of Termination" shall have the meaning set forth in
Section 12B of this Agreement.
(h) "Final General Specifications" shall mean any final
specifications including final ECN and updated specifications with
respect to each GMCL Axle or Accommodation Part, delivered to GMCL in
respect of any GMCL Axle or Accommodation Part, proposed New Part, or
proposed alteration to any existing GMCL Axle.
(i) "Force Majeure" shall mean an event or occurrence beyond
the reasonable control of a Party and without its fault or negligence,
such as, by way of example and not by way of limitation, acts of God,
actions by any governmental authority (whether valid or invalid),
fires, floods, windstorms, explosions, riots, natural disasters, wars,
sabotage, labor problems (including lockouts, strikes and slowdowns),
inability to obtain power, material, labor, equipment or
transportation, or court injunction or order.
(j) "GM" shall mean General Motors Corporation.
(k) "GMCL" shall mean General Motors of Canada Limited.
(l) "GMCL Axle" shall mean those parts listed on Schedule 1,
as modified from time to time pursuant to this Agreement, and shall
also mean all New Parts and altered GMCL Axles that GMCL produces
pursuant to Section 3D of this Agreement.
<PAGE>
3
(m) "GMCL's Manufacturing Capability" shall mean the maximum
volume of GMCL Axles and Accommodation Parts at which GMCL's St.
Catharines Component Plant can operate taking into consideration such
factors as machinery and equipment, tools and available manpower.
(n) "New Part" shall mean any new product or substantially
redesigned GMCL Axle which is produced pursuant to this Agreement.
(o) "Party" or "Parties" shall mean only AAM and/or GMCL.
(p) "Product Assurance Procedures" shall mean GMCL's
procedures referred to in Section 3E of this Agreement which set forth
the procedures and terms and provisions used in connection with
measuring and assuring a level of quality for GMCL Axles and
Accommodation Parts.
(q) "Prototype/Pilot Parts" shall mean those parts produced on
a pre-production basis for design and/or manufacturing process
development purposes in relation to a proposed New Part or a proposed
alteration to a GMCL Axle.
(r) "Purchase Procedures" shall have the meaning set forth in
Section 4C of this Agreement.
(s) "Sales Area" shall mean any area in Canada Mexico or the
United States into which the GMCL Axles or Accommodation Parts, or any
product into which the GMCL Axles or Accommodation Parts are
incorporated, are sold by AAM.
(t) "Safety Acts" shall mean the Canadian, Mexican, and United
States of America federal, state, provincial, municipal or other
statutes and regulations thereto including the "Motor Vehicle Safety
Act of Canada" ("MVSA") and regulations thereunder and all amendments
thereto, that deal with or relate to the safety of a motor vehicle [or
otherwise affect the design and/or manufacturing of motor vehicle
and/or motor vehicle parts]
(u) "Start of Production Date" shall mean the date established
by GMCL and AAM pursuant to Section 3D of this Agreement for start of
production of a proposed New Part or a proposed altered GMCL Axle.
(v) "St. Catharines Components Plant" shall mean that GMCL
facility located at 285 Ontario Street, St. Catharines, Ontario to the
extent such facility is used for the Axle Business.
(w) "Unit Price" shall mean that selling price between GMCL
and AAM set forth in Schedule 2 as amended from time to time pursuant
to Section 3D of this Agreement.
<PAGE>
4
3. PRODUCTS
A. Development and Planning
AAM has full responsibility, including compliance with all
Safety Acts and other governmental regulations applicable in the Sales Area, for
the development and design of all GMCL Axles and Accommodation Parts including
those designs for existing GMCL Axles and Accommodation Parts.
GMCL shall have full responsibility for the manufacturing and
assembly of all GMCL Axles and Accommodation Parts in compliance with the Final
General Specifications, designs and ECN's delivered to GMCL by AAM. GMCL shall
have the right to receive and use all Final General Specifications and ECN's
related to each GMCL Axle and Accommodation Part.
AAM shall be responsible for any modifications or additions to
Accommodation Parts that are made after their delivery to AAM.
B. New Part Review
In connection with each proposed New Part and each proposed
alteration to any GMCL Axle, and as soon as practicable prior to the proposed
Start of Production Date for such proposed New Part or proposed altered GMCL
Axle, AAM will review its proposed production specifications with GMCL with a
view to ensuring receipt and due consideration by AAM of GMCL input with respect
thereto.
C. Tests on Proposed New Parts, Proposed Alterations to GMCL
Axles and on GMCL Axles
(1) In General
The Parties agree that validation testing and evaluation of
any Prototype/Pilot Parts, proposed alterations to a GMCL Axle or proposed New
Parts shall be, subject only as provided below, performed by AAM at AAM's sole
expense. If AAM desires that GMCL perform any tests, testing or evaluation
required in respect of a Prototype/Pilot Part, proposed alteration to a GMCL
Axle, proposed New Part or any other part, then AAM shall immediately notify
GMCL. If GMCL agrees to perform such testing or evaluation then AAM shall pay to
GMCL the price therefor which is agreed upon between AAM and GMCL. GMCL shall
from time to time conduct certain testing on and/or in connection with the GMCL
Axles and/or Accommodation Parts. Such testing will continue to occur in the
normal course pursuant to Product Assurance Procedures and GMCL will continue to
bear all costs related to such testing. In the event that AAM desires any
additional testing on and/or in connection with any GMCL Axles or Accommodation
Parts at any time, GMCL shall cooperate with AAM in that respect and all costs
related to such testing shall be borne by AAM including all costs incurred by
GMCL in connection with such cooperation. Payment
<PAGE>
5
for any such testing shall be made within 30 days of delivery of an invoice to
AAM by GMCL.
(2) Product Problem Reporting and Resolution
Unless otherwise agreed, the Parties shall use GMCL's product
problem reporting and resolution procedure. Each Party will, in writing and at
its own expense, provide the other Party with information relating to any
deficiencies which are disclosed by the tests conducted pursuant to this Section
C. GMCL, at its own expense, shall make available at the sites where the GMCL
Axles or Accommodation Parts will be tested, such personnel as may be reasonably
required to: (i) facilitate a determination as to cause of any test incident;
(ii) discuss quality problems; and (iii) participate in determining the
corrective action which may be taken. AAM and GMCL will jointly designate those
deficiencies on which they require corrective action and further testing to
verify the effectiveness of such corrective action, the cost of which shall be
borne by AAM unless the problem/deficiency is a result of a deficiency in GMCL's
production process in which case the cost shall be borne by GMCL.
D. New Parts Production and Alterations To GMCL Axles
(1) To enable GMCL to determine whether or not it will be
within GMCL's Manufacturing Capability to produce a proposed New Part or
proposed altered GMCL Axles, AAM will prepare and deliver as soon as reasonably
possible to GMCL the following information and materials in connection with each
proposed New Part and proposed alteration to a GMCL Axle:
(i) Engineering Change Notices; and
(ii) Descriptions, (including engineering designs and
blueprints), of each proposed New Part or proposed alteration to a GMCL
Axle, and engineering support which will facilitate GMCL's analysis of
its capabilities to produce the proposed New Part and/or the proposed
alteration to a GMCL Axle.
(2) As soon as is reasonably possible following receipt of the
information and materials referenced in Paragraph (1) above, GMCL will advise
AAM as to whether or not the production of the proposed New Part and/or the
proposed alteration to a GMCL Axle for sale to AAM, is within GMCL's
Manufacturing Capability. If such production is within GMCL's Manufacturing
Capability and the Parties have agreed upon the Unit Price and the Start of
Production Date, GMCL will produce such New Part or altered GMCL Axle. Schedule
"2" of this Agreement shall be amended by the Parties to reflect the agreed upon
Unit Price for the New Part or the altered GMCL Axle. as the case may be. and
such New Part or altered GMCL Axle shall thereafter be a "GMCL Axle" for
purposes of this Agreement.
(3) The Parties shall review together and agree upon the
extent to which any new equipment and/or tooling must be purchased and the
extent to which any modifications
<PAGE>
6
are required to existing equipment and/or tooling in order to ensure that GMCL
will be able to produce high quality New Parts and high quality altered GMCL
Axles, as the case may be. The total cost for any and all such purchases and
modifications shall be borne by AAM. Any tooling purchased by AAM for use by
GMCL in the production of New Parts and/or altered GMCL Axles shall remain the
property of AAM and shall be maintained by GMCL tin accordance with the
practices of GMCL used by GMCL in the normal course for the maintenance of it
equipment in its Axle Business prior to the Effective Date.
(4) AAM agrees to provide GMCL, at a price of *** (U.S.) for
the *** calendar year and at a price to be mutually agreed to by the Parties for
each calendar year thereafter, all of the product engineering support GMCL may
require either before or after the Start of Production Date for any GMCL Axle,
Accommodation Part, proposed New Part or proposed altered GMCL Axle, as the case
may be, to ensure that GMCL is able to produce high quality GMCL Axles and
Accommodation Parts.
(5) In the event that it is within GMCL's Manufacturing
Capability and GMCL has agreed to produce a New Part or an altered GMCL Axle,
AAM agrees to provide GMCL with the Final General Specifications in respect
thereof and thereby, the right to use same, as soon as is reasonably possible.
AAM will ensure that such Final General Specifications are received by GMCL
within a time frame prior to the Start of Production Date that will permit GMCL
reasonable time to prepare its operations for production of the New Part or
altered GMCL Axles, as the case may be, in accordance with its obligations under
this Agreement.
E. Quality Assurance and Warranty
(1) Warranty - GMCL Axles and Accommodation Parts
(a) GMCL expressly warrants that all GMCL Axles and
Accommodation Parts will conform to the specifications, drawings, samples, or
written descriptions furnished or delivered by AAM to GMCL, and will be
merchantable, of good material and workmanship and free from defect. GMCL
provides no other warranty, either express or implied. of any nature whatsoever
including, without limiting the generality of the foregoing. any warranty as to
fitness for purpose or use.
(b) ***
(2) Quality Assurance
(a) To measure and assure the necessary level of quality of
GMCL Axles or Accommodation Parts supplied by GMCL to AAM, GMCL will use product
assurance procedures (the "Product Assurance Procedures") similar to those used
by GMCL for GMCL Axles produced prior to the Effective Date.
<PAGE>
7
(b) Each Party shall furnish to the other Party access to
those records which such Party may reasonably require for the purpose of
enabling it to repair or correct any defective or malfunctioning GMCL Axles or
Accommodation Parts.
AAM personnel shall have the right to visit the St. Catharines
Components Plant, during normal business hours and upon reasonable notice to
GMCL.
(3) Preparation, Packaging, and Packing
Except as AAM and GMCL may otherwise agree, GMCL shall
preserve, prepare and pack GMCL Axles supplied by GMCL to AAM for transportation
in accordance with the procedures used by GMCL for shipment of GMCL Axles to GM
prior to the Effective Date. Such procedures may be modified by agreement
between the Parties.
F. Product Liability
GMCL shall defend, indemnify, and hold harmless AAM, its
officers, agents, and employees, from and against any and all claims, suits,
causes of action, liabilities, losses, damages, costs of settlement, and
expenses (including reasonable attorneys fees) which may be imposed upon or
incurred by AAM from claims, suits, or causes of action (including without
limitation those for death, person injury, or property damage) by any person
whatsoever at any time against AAM, its officers, agents, and employees, arising
from, caused, or alleged to be caused by the manufacture of any GMCL Axles or
Accommodation Parts.
AAM shall defend, indemnify, and hold harmless GMCL, its
officer, agents, and employees, from and against any and all claims, suits,
causes of action, liabilities, losses, damages, costs of settlement, and
expenses (including reasonable attorneys fees) which may be imposed upon or
incurred by GMCI from claims, suits, or causes of action (including without
limitation those for death, personal injury, or property damage) by any person
whatsoever at any time against GMCL, its officers, agents, and employees,
arising from, caused or alleged to be caused by the design, operation, use,
sale, or transfer of any GMCL Axles or Accommodation Parts or caused or alleged
to be caused by the design, manufacture, operation, use, sale, or transfer of
any components or products manufactured or sold by AAM other than GMCL Axles or
Accommodation Parts.
4. SUPPLY AND PURCHASE OBLIGATIONS AND ARRANGEMENTS
A. General Understandings
The following general understandings will apply to the supply
and purchase commitments made under this Agreement:
Deliveries shall be made both in the proper quantities, mix and at the times
specified in AAM's delivery schedules (the "Delivery Schedules"). Such Delivery
Schedules shall reflect those delivery schedules provided to AAM by its
customers and shall be delivered to GMCL
<PAGE>
8
in accordance with the Purchase Procedures defined below and as soon as is
reasonably possible following receipt by AAM thereof:
In setting forth supply and purchase procedures under this
Section 4, AAM and GMCL acknowledge that their mutual best interests can best be
served if orderly procedures and scheduling are followed consistently in the
making of supply and purchase commitments under this Agreement. AAM and GMCL
further acknowledge that a decree of flexibility is necessary in the actual
purchasing and supply process to accommodate AAM's requirements, which will be
based on the requirements of GM, and GMCL's business and manufacturing
practices.
As soon as is reasonably possible following Effective Date,
AAM shall deliver to GMCL its best estimates of the total volumes of each GMCL
Axle that it anticipates purchasing from GMCL for each calendar year of this
Agreement in addition to their anticipated allocation plan for such periods. If,
at any time, AAM determines that these estimates will vary, up or down, by any
material amount, AAM shall immediately advise GMCL so as to ensure that GMCL has
as much prior written notice as is reasonably possible, of any such material
reduction or increase.
B. AAM Purchase Obligations
AAM shall at all times, use its best efforts to purchase at
least those quantities of each GMCL Axle and Accommodation Part as established
in the Delivery Schedules, in a manner which provides GMCL with a stable
production volume permitting it to minimize fluctuations in production schedules
and which is in accordance with the Purchase Procedures defined below.
C. Purchase Procedures
As soon as practicable following the execution of this
Agreement, GMCL and AAM shall agree upon those procedures, in accordance with
which GMCL Axles orders shall be submitted by AAM to GMCL (collectively, the
"Purchase Procedures").
D. Terms of Sale
GMCL shall at all times. use its best efforts to supply to
GMCL to the extent of GMCL's Manufacturing Capability. those quantities of each
GMCL Axle and Accommodation Part in the Delivery Schedules tin accordance with
the Purchase Procedures and any other terms that may be agreed to bs the Parties
from time to time pursuant to this Agreement, including the terms set out below:
(l) Pricing
(i) The Unit Price to be paid by AAM to GMCL for each GMCL
Axle is set forth in Schedule "2" of this Agreement as such Schedule
may be amended from time to time by agreement in writing by the
Parties;
<PAGE>
9
(ii) The Accommodation Parts Unit Price to be paid by AAM
which relates to an Accommodation Part shall be negotiated and agreed
upon by the Parties at the time that GMCL agrees to supply such
Accommodation Part to AAM;
(iii) All Unit Prices and Accommodation Parts Unit Prices
shall be in the currency of the United States of America; and
(iv) AAM shall be liable for and shall pay to GMCL or the
appropriate taxing or governmental authority, any tax, duty, levy,
import charge or other amount properly payable in connection with the
purchase by AAM of GMCL Axles or Accommodation Parts pursuant to this
Agreement.
(2) Delivery Terms and Title
All deliveries to AAM pursuant to this Agreement shall be made
on an "FOB GMCL St. Catharines Components Plant" basis unless otherwise agreed
to by the Parties and the property, control, beneficial ownership and legal
title in and to the GMCL Axles and Accommodation Parts shall pass to AAM upon
delivery.
(3) Invoicing and Payment
On a weekly basis, GMCL shall invoice AAM for the GMCL Axles
and Accommodation Parts delivered by GMCL. Full payment of the Unit Price or
Accommodation Part Price in respect of each GMCL Axle or Accommodation Part
delivered to AAM shall be due and payable, in immediately available funds, on
the *** following invoice date. All payments shall be made in U. S. Dollars.
E. Volume/Mix and Catastrophic Reduction
It is AAM's intent to continue the use of the current Axle
allocation formula set out in Schedule "3". AAM will give serious consideration
to any proposed revision to the current allocation formula in a manner which is
consistent with the maintenance of the best interests of each Party including
without limitations, the maintenance of AAM's profitability and the maintenance
of the economic viability of the Axle Business at the St. Catharines Components
Plant. In the event of a major or catastrophic reduction in overall market
demand for GM products, causing a proportional reduction in demand for AAM
products, AAM will adjust plant allocation as it sees fit: Provided however
that, in the event that any such catastrophic reduction in demand reduces or is
reasonably expected to reduce those volumes of GMCL Axles purchased or to be
purchased by AAM from GMCL over any six (6) month period to less than 1600 GMCL
Axles per day, then the Parties agree to renegotiate, in good faith, the Unit
Prices and Accommodation Parts Unit Prices.
5. PROVISION OF PROTOTYPE/PILOT PARTS
AAM may request preproduction by GMCL of Prototype/ Pilot
Parts in order to conduct research or perform special testing. Subject to GMCL's
agreement to produce such
<PAGE>
10
Prototype/ Pilot Parts, GMCL will furnish AAM with Prototype/Pilot Parts in
accordance with:
(a) general specification information agreed upon by the
Parties;
(b) a schedule for delivery agreed upon by the Parties,
including any special shipping arrangements required;
(c) a per unit price and payment terms agreed upon by the
Parties; and
(d) the other terms of this Agreement unless otherwise agreed
to by the Parties.
6. POTENTIALLY HARMFUL INGREDIENTS
Each Party shall provide the other Party with a list of all
potentially harmful ingredients known by it to be included or contained in any
GMCL Axle or Accommodation Part supplied hereunder or in any components or
materials from which GMCL Axles or Accommodation Parts supplied hereunder, are
manufactured which are covered by Canadian and/or United States laws or
regulations or as may be required by the Parties. Thereafter, if necessary to
comply with any applicable federal, state. provincial territorial or other
applicable law or regulation, GMCL or AAM, as the case may be, will to the best
of its knowledge, furnish AAM or GMCL, as the case may be, with information
concerning changes in such lists of ingredients.
7. INSURANCE
Unless otherwise agreed to by the Parties, each Party agrees
to maintain, at its own expense, broad form comprehensive liability insurance on
an occurrence form basis (including product, completed operations, and
contractual liability covering the terms of this Agreement), whether primary or
excess coverage, or a combination thereof, with a combined single limit for
personal injury and property damage of not less than Ten Million U.S. Dollars
(U.S. $10,000,000) per occurrence, at all times, from the Effective Date through
the termination of this Agreement.
Each Party shall ensure that the other Party is named as an
additional insured and loss payee to such insurance coverage. Upon request of a
Party, the other Party shall provide the requesting Party with certificates of
insurance evidencing the coverage described above showing the requesting Party
as a named additional insured and loss payee. No cancellation, modification or
material change to this coverage shall be made without thirty (30) days written
notice to the other Party.
8. INFORMATION AND MATERIALS
A. Use of Information and Materials
<PAGE>
11
It is anticipated that in connection with the performance of
their respective responsibilities and obligations under this Agreement, AAM and
GMCL will be providing each other with information, data, and materials that
each of them have developed or that pertains to their respective operations.
The information, data, and materials provided by one Party to
the other Party will be utilized by the receiving Party solely in connection
with the performance of the receiving Party's responsibilities and obligations
under and in furtherance of the obligations contemplated by this Agreement. AAM
and GMCL may in any specific situation instruct the other Party as to the degree
of confidentiality that is to be observed by the receiving Party with respect
to, and the manner in which the receiving Party may utilize, the information,
data, or materials furnished to it.
However, neither AAM nor GMCL shall be required to keep
confidential any information, data, or materials which are, or become, publicly
available through no fault of the receiving Party; or which are already in the
possession of either of them under arrangements which are not confidentiality
arrangements between AAM and GMCL or related to confidentiality agreements
between GM and AAM; or which are independently developed by either of them
without access to confidential information of the other Party; or which are
rightfully obtained from third parties, or which are disclosed with the prior
written consent of the other Party.
9. RESPONSIBILITY FOR PERSONNEL
Whenever AAM or GMCL sends its own personnel to plants or
offices of the other of them or for conferences, negotiations, discussions, or
preparation of materials or of documents required or appropriate under this
Agreement, the Party sending such personnel shall be responsible for all living
and traveling expenses of, and for injury to, death of, or property loss, or
damage suffered by, such personnel.
Each Party, however, shall extend such assistance to the
other's personnel as it may deem desirable and appropriate under the
circumstances.
10. PATENTS
AAM will defend, protect, and save harmless GMCL, its
successors, assigns, and users of GMCL Axles and Accommodation Parts against all
suits at law or in equity, and from all damages, claims, and demands and all
losses and costs, including reasonable legal costs for actual or alleged
infringement of any Canadian or foreign patent by reason of the use or sale of
GMCL Axles and Accommodation Parts in the Sales Areas as and where such actual
or alleged infringement would not be attributable solely to GMCL's cause and
fault.
AAM hereby grants to GMCL a non-exclusive, non-transferable
right to use all patents, technical information and other forms of intellectual
property rights associated with the GMCL Axles and Accommodation Parts for the
purposes of fulfilling its obligations under this Agreement. Upon receipt of
approval from AAM, which approval shall not be
<PAGE>
12
unreasonably withheld or delayed, the license hereby granted by AAM to GMCL
shall be sublicensable to third parties for the purposes only of making, having
made, using and/or selling to GMCL, GMCL Axles, Accommodation Parts, New Parts
and/or Prototype/Pilot Parts for resale to AAM.
AAM shall not assert any claim against GMCL with respect to
GMCL's use of any technical information which AAM shall have disclosed or may
hereafter disclose to GMCL in connection with GMCL Axles and Accommodation
Parts, provided such use is in accordance with the terms of this Agreement and
in the absence of a separate written agreement directed to the use of such
technical information.
11. FORCE MAJEURE
GMCL shall not be liable to AAM if it is delayed in the
performance or fails to perform any of its obligations or responsibilities under
this Agreement, if such delay or failure is due to Force Majeure. Without
limiting the generality of the foregoing, GMCL shall make all reasonable efforts
to fill each Delivery Schedule that is received by GMCL in accordance with the
Purchase Procedures, but shall not be liable in any respect for failure to
deliver or for delay in delivery of the GMCL Axles or Accommodation Parts where
such failure or delay is due wholly or in part to Force Majeure.
In the event of Force Majeure, GMCL shall immediately give
written notice of such Force Majeure to AAM and shall give its best estimate of
the extent to which and the length of time GMCL's ability to perform may be
prevented, interfered with, or delayed. GMCL shall, in any case, employ due
diligence in endeavoring to cure any such cause, event, or occurrence and to
resume performance.
If it is determined that any of the supply and purchase
commitments that have been made under this Agreement cannot be fulfilled because
of Force Majeure, AAM and GMCL may, by mutual agreement, modify the applicable
commitments to the extent deemed necessary or appropriate.
12. EFFECTIVE DATE, TERM AND TERMINATION
A. Term of Agreement
This Agreement shall become effective on the Effective Date
and shall continue in effect until September 14, 1996 unless earlier terminated
pursuant to this Section 12.
B. Termination due to Certain Acts or Events
Each of the following shall be referred to as an "Event of
Termination" of a Party:
<PAGE>
13
(a) Any attempted or actual sale, transfer or assignment
by that Party of this Agreement or any of the rights
granted to that Party hereunder, or any attempted or
actual transfer, assignment or delegation by that
Party of any of the responsibilities assumed by it
under this Agreement, except where such transfer,
assignment or delegation of rights or
responsibilities is to one of its divisions,
subsidiaries, affiliated, related or associated
corporations or is otherwise permitted herein or is
otherwise agreed to by the Parties.
(b) Insolvency of that Party, suspension of payments by
that Party, filing of a voluntary petition in
bankruptcy by that Party, filing of a petition to
have that Party declared bankrupt or appointment of a
receiver or trustee or the like for that Party;
execution by that Party of an assignment for the
benefit of creditors or any foreclosure or other due
process of law whereby a third party acquires rights
to the operation, ownership or principal assets of
that Party.
In the event that one Party elects to terminate this Agreement
pursuant to this Paragraph 12B, that Party shall first notify the other Party in
writing of the grounds for the intended termination. In the event that the
receiving Party fails to remedy such grounds for termination within sixty (60)
days after such notice is so delivered, then the notifying Party may, at its
option, terminate this Agreement effective at any time during the remaining term
of this Agreement.
C. Performance After Termination
Termination of this Agreement shall not relieve either Party
from completing any commitments to supply or commitments to purchase or pay for
GMCL Axles and Accommodation Parts that remain in effect under any Delivery
Schedule that extends beyond the effective date of termination or from
discharging completely any and all other obligations under this Agreement which
exist at the date of termination, subject to the other terms of the Agreement.
Upon the effective date of termination of this Agreement, the
Parties shall negotiate, subject to other provisions of this Section 12, an
arrangement between them that will minimize losses that may be incurred by each
of the Parties as a result of termination.
13. GENERAL PROVISIONS
A. Notices
Any notice or other writing required or permitted to be given
under this Agreement or for the purposes of this Agreement (in this Section
referred to as a "Notice") shall be in writing and shall be sufficiently given
if delivered personally, or if sent by prepaid registered mail or if transmitted
by facsimile or other form of recorded communication tested prior to
transmission to such Party:
<PAGE>
14
(a) in the case of a notice to GMCL at:
General Motors of Canada Limited
570 Glendale Avenue
St. Catharines, Ontario
L2R 7B3
Attention: Plant Manager
Fax: (905) 641-7081
with a copy of the notice to:
General Motors of Canada Limited
ATTENTION: Vice-President, General Counsel
1908 Colonel Sam Drive
Oshawa, Ontario
L1H 8P7
Fax: (905) 644-3830
(b) in the case of a notice to AAM at:
American Axle & Manufacturing, Inc.
1840 Holbrook Avenue
Detroit, Michigan
48212-3488
Attention: B.G. Mathis, Vice-President Administration
Fax: (313) 974-2070
or at such other address as the Party to whom such Notice is to be given shall
have last notified the Party giving the same in the manner provided in this
Section. Any Notice personally delivered to the Party to whom it is addressed as
provided above shall be deemed to have been given and received on the day it is
so delivered at such address, provided that if such day is not a business day
then the Notice shall be deemed to have been given and received on the next
business day. Any Notice sent by prepaid registered mail shall be deemed to have
been given and received on the fifth business day following the date of its
mailing. Any Notice transmitted by facsimile or other form of recorded
communication shall be deemed given and received on the first business day after
its transmission.
B. Waivers
The failure of any Parts at any time to require performance by
any other Party of any responsibility or obligation provided for in this
Agreement shall in no way affect the full right to require such performance at
any later time. The waiver by any Party of a breach of any provision of this
Agreement shall not constitute a waiver of any succeeding breach of the same or
any other such provision nor constitute a waiver of the responsibility or
obligation itself.
<PAGE>
15
C. Assignability
This Agreement may not be assigned by any Party or to any
person, firm, or corporation, nor may any Party transfer or assign or attempt to
transfer or assign any right or transfer or delegate any obligation or
responsibility under this Agreement to any person, firm, or corporation, without
the prior written consent of the other Party; provided however that such an
assignment, transfer or delegation may be made by either Party to any of its
divisions, or subsidiary, affiliated, related or associated corporations without
prior written consent of the other Party.
D. Applicable Law and Arbitration
(a) This Agreement shall be construed in accordance with the
laws of the Province of Ontario and the laws of Canada applicable therein and
shall be treated, in all respects as an Ontario contract. Application of the
United Nations Convention on Contracts for the International Sale of Goods is
expressly excluded.
(b) The Parties agree that any dispute, disagreement,
controversy or claim arising out of or related to this Agreement including,
without limitation, its formation, execution, validity, interpretation,
performance, breach, enforcement and/or damages or remedies arising out of its
breach or non-compliance therewith shall first be subject to negotiation for the
amicable settlement thereof among the Parties and failing settlement within
ninety (90) days of the giving of notice by one Party to the other, which
identifies the issue to be settled, shall be finally determined by arbitration
to be conducted in Toronto, Canada by a single arbitrator chosen by the Parties
and, in default of such choice within ten (10) business days, as chosen by the
President of the Arbitrators' Institute of Canada. The Parties agree that the
provisions of the International Commercial Arbitration Act R.S.O. 1990. c.I.g
1988 of the Province of Ontario and the UNCITRAL Model Law on International
Commercial Arbitration adopted thereby shall govern such arbitration and that
neither of them shall apply to the courts of Ontario or any other jurisdiction
to attempt to enjoin, delay, impede or interfere with or limit the rights and
powers of the arbitrator under the said statute. The award of the arbitrator
shall be final and conclusive and there shall be no appeal therefrom to any
court, tribunal or other authority. The award of the arbitrator may be entered
and enforced by any court in any jurisdiction having jurisdiction over the
Parties and/or the subject matter of the award.
(c) Should any provision of this Agreement be or become
ineffective because of changes in applicable laws or interpretations thereof or
should this Agreement fail to include a provision that is required as a matter
of law, the validity of the other provisions of this Agreement shall not be
affected thereby. If such circumstances arise, the Parties shall negotiate
appropriate modifications to this Agreement to reflect those changes that are
required by law.
E. Headings and Interpretation
<PAGE>
16
The table of contents, Section, subsection, and paragraph
headings of this Agreement are for the convenience of the Parties and shall not
be considered in any question of interpretation or construction of this
Agreement. The use of words in the singular or plural, or with a particular
gender, shall not limit the scope or exclude the application of any provision of
this Agreement to such person or persons or circumstances as the context
otherwise permits.
F. Persons Authorized to Act for the Parties
This Agreement and each change, variation, or modification
thereof and any notice that provides for termination of this Agreement, in whole
or in part, shall be effective only when executed on behalf of each Party and
where appropriate by an authorized officer of such Party.
Each of the Parties shall furnish the others with lists of the
names and titles of the persons who are authorized to sign on its behalf the
documents or papers required in conjunction with this Agreement.
G. Entire Agreement of the Parties
This Agreement, including any exhibits referenced herein or
attached hereto or thereto, constitutes the entire understanding of the Parties
in respect of the subject matter of this Agreement and cancels and supersedes
all previous negotiations, discussions and agreements of the Parties directly
related to the subject matter of this Agreement; and there are, as of the
Effective Date, no other agreements or understandings, either oral or in
writing, between the Parties directly affecting this Agreement or relating to
the manufacture and supply by GMCL or the purchase by AAM of GMCL Axles or
Accommodation Parts. This Agreement will further override and take precedence
over any subsequent document which may be used by the Parties in the execution
of this Agreement (for example purchase orders), and the terms and conditions
hereof shall prevail unless otherwise agreed to in writing by the Parties.
H. Further Assurances
The Parties shall, with reasonable diligence, do all such
things and provide all such reasonable assurances as may be required to
consummate the transactions contemplated hereby, and each Party shall provide
such further documents or instruments required by the other Party as may be
reasonably necessary or desirable to effect the purpose of this Agreement and
carry out its provisions, whether before or after the Effective Date.
I. Counterparts
This Agreement may be executed by the Parties in separate
counterparts each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute one and the same instrument.
<PAGE>
17
J. Relationship of Parties
Nothing in this Agreement is intended to make one Party the
partner, joint venturer or agent of the other Party.
<PAGE>
18
IN WITNESS WHEREOF the parties hereto have each caused this
Agreement to be executed as of the day and year first above written by its duly
authorized officers.
AMERICAN AXLE & MANUFACTURING, INC.
Per: /s/ R.E. Dauch
------------------------------------
Name: R.E. Dauch
-----------------------------------
Title: President & CEO
----------------------------------
GENERAL MOTORS OF CANADA LIMITED
Per: /s/ J.G. Waechter, Jr.
------------------------------------
Name: J.G. Waechter, Jr.--Vice President
-----------------------------------
Per: /s/ L.D. Worrall
------------------------------------
Name: L.D. Worrall
-----------------------------------
Title: Assistant Secretary
----------------------------------
<PAGE>
SCHEDULE 1
GMCL AXLES
<TABLE>
<CAPTION>
PART NO. MODEL RATIO* PART DESCRIPTION
- -------- ----- ------ ----------------
<S> <C> <C> <C>
26031842 C TRUCK 3.08 STD. 8.6 REAR AXLE ASSEMBLY
26031845 C TRUCK 3.08 L.D. 8.6 REAR AXLE ASSEMBLY
26031843 C TRUCK 3.42 STD. 8.6 REAL AXLE ASSEMBLY
26031846 C TRUCK 3.42 L.D. 8.6 REAR AXLE ASSEMBLY
26031844 C TRUCK 3.73 STD. 8.6 REAR AXLE ASSEMBLY
26031847 C TRUCK 3.73 L.D. 8.6 REAR AXLE ASSEMBLY
26031848 C TRUCK 3.08 STD. 8.6 REAR AXLE ASSEMBLY
26031850 C TRUCK 3.08 L.D. 8.6 REAR AXLE ASSEMBLY
26031849 C TRUCK 3.42 STD. 8.6 REAR AXLE ASSEMBLY
26031851 C TRUCK 3.42 L.D. 8.6 REAR AXLE ASSEMBLY
26031852 K TRUCK 3.42 STD. 8.6 REAR AXLE ASSEMBLY
26031855 K TRUCK 3.42 L.D. 8.6 REAR AXLE ASSEMBLY
26031853 K TRUCK 3.73 STD. 8.6 REAR AXLE ASSEMBLY
26031856 K TRUCK 3.73 L.D. 8.6 REAR AXLE ASSEMBLY
26031854 K TRUCK 4.10 STD. 8.6 REAR AXLE ASSEMBLY
26031857 K TRUCK 4.10 L.D. 8.6 REAR AXLE ASSEMBLY
26031858 K TRUCK 3.42 STD. 8.6 REAR AXLE ASSEMBLY
26031860 K TRUCK 3.42 L.D. 8.6 REAR AXLE ASSEMBLY
26031859 K TRUCK 3.73 STD. 8.6 REAR AXLE ASSEMBLY
26031861 K TRUCK 3.73 L.D. 8.6 REAR AXLE ASSEMBLY
26040724 B CAR 2.73 STD. 7 5/8 REAR AXLE ASSEMBLY
26040725 B CAR 2.73 STD. 7 5/8 REAR AXLE ASSEMBLY
26044893 (1995) B CAR 2.93 STD. 7 5/8 REAR AXLE ASSEMBLY
26044895 (1995) B CAR 2.93 STD. 7 5/8 REAR AXLE ASSEMBLY
26031321 (26043712)** S TRUCK 3.08 STD. 7 5/8 REAR AXLE ASSEMBLY
26031322 (26043713)** S TRUCK 3.42 STD. 7 5/8 REAR AXLE ASSEMBLY
26046059 S TRUCK EXTENDED CAB 3.08 STD. 7 5/8 REAR AXLE ASSEMBLY
26046061 S TRUCK EXTENDED CAB 3.42 STD. 7 5/8 REAR AXLE ASSEMBLY
26046062 S TRUCK EXTENDED CAB 3.42 L.D. 7 5/8 REAR AXLE ASSEMBLY
</TABLE>
* L.D. = LOCKING DIFFERENTIAL (LIMITED SLIP)
** PART NUMBER REVISION EFFECTIVE A.S.A.P.
<PAGE>
SCHEDULE 2
GMCL AXLE PRICE SCHEDULE $ U.S. / UNIT
<TABLE>
<CAPTION>
PART NO. MODEL RATIO* *GMCL PRICE*** (See Qualifiers on
Attached Notes to
Schedule 2)
<S> <C> <C> <C>
26031842 C TRUCK 3.08 STD. ***
26031845 C TRUCK 3.08 L.D. ***
26031843 C TRUCK 3.42 STD. ***
26031846 C TRUCK 3.42 L.D. ***
26031844 C TRUCK 3.73 STD. ***
26031847 C TRUCK 3.73 L.D. ***
26031848 C TRUCK 3.08 STD. ***
26031850 C TRUCK 3.08 L.D. ***
26031849 C TRUCK 3.42 STD. ***
26031851 C TRUCK 3.42 ***
26031852 K TRUCK 3.42 ***
26031855 K TRUCK 3.42 L.D. ***
26031853 K TRUCK 3.73 STD. ***
26031856 K TRUCK 3.73 L.D. ***
26031854 K TRUCK 4.10 STD. ***
26031857 K TRUCK 4.10 L.D. ***
26031858 K TRUCK 3.42 STD. ***
26031860 K TRUCK 3.42 L.D. ***
26031859 K TRUCK 3.73 STD. ***
26031861 K TRUCK 3.73 L.D. ***
26040724 B CAR 2.73 STD. ***
26040725 B CAR 2.73 STD. ***
26044893 (1995) B CAR 2.93 STD. N/A
26044895 (1995) B CAR 2.93 STD. N/A
26031321 (26043712)** S TRUCK 3.08 STD. ***
26031322 (26043713)** S TRUCT 3.42 STD ***
26046059 S TRUCT EXTENDED CAB 3.08 STD. N/A
26046061 S TRUCK EXTENDED CAB 3.42 STD. N/A
26046062 S TRUCK EXTENDED CAB 3.42 L.D. N/A
</TABLE>
<PAGE>
* L.D. = LOCKING DIFFERENTIAL (LIMITED SLIP)
** PART NUMBER REVISION EFFECTIVE A.S.A.P.
<PAGE>
SCHEDULE 2
UNIT PRICES
NOTES TO SCHEDULE 2: Unit Price columns shall be marked to reference the
following qualifiers:
1/***Notwithstanding the Unit Prices set out above, increases or decreases to
such Unit Prices shall be made, on a dollar for dollar basis, by reason of ***.
2/ COLUMNS FOR UNIT PRICES ARE QUALIFIED AS FOLLOWS:
*If AAM determines at any time to change the manufacturing content of GMCL Axles
so as to include AAM produced components, the Parties will evaluate the
implication of such content change on the total cost of the Axle Business. The
Parties agree that they will make adjustments to the Unit Prices based on such
evaluation. Such adjustment shall, at a minimum, include an adjustment to the
affected prices equal to the difference between:
a) The St. Catharines Components Plant total production cost for each such
component in the fiscal period during which it last produced such component; and
b) The total purchase price payable to AAM for each such AAM produced component.
Any such price adjustment shall be effective with the first purchase by GMCL of
the said AAM component.
<PAGE>
SCHEDULE 3
SCHEDULING / VOLUME RATIO
PRODUCT LINES ST. CATHARINES ALLOCATION
- ------------- -------------------------
"C" TRUCK )
)
"K" TRUCK )
) ---- > ST. CATHARINES ALLOCATION
"B" CAR ) OF 8.6" GMT 400 CK10 AXLE
) VOLUME PLUS 7 5/8" "B" CAR AXLE
) VOLUME EQUAL TO 57.9% OF TOTAL
) GM CORPORATE VOLUME
"D" Car ) REQUIREMENTS FOR THESE
PRODUCT LINES.
PRODUCT LINES ST. CATHARINES ALLOCATION
- ------------- -------------------------
"F" CAR )
)
"M" VAN )
)
"L" VAN ) ---- > ST. CATHARINES 'S' TRUCK 7 5/8"
) AXLE VOLUME ALLOCATION EQUAL
"S" TRUCK ) TO 13.4% OF TOTAL GM CORPORATE
) VOLUME REQUIREMENTS FOR
"T" TRUCK ) THESE PRODUCT LINES.
<PAGE>
AMENDING AGREEMENT
to
AAM/GMCL Supply Agreement between American Axle & Manufacturing, Inc.
("AAM") and General Motors of Canada Limited ("GMCL") dated February 17, 1994,
(the "Supply Agreement")
Contemporaneous with the execution of the Supply Agreement, AAM and
GMCL (together, the "Parties") executed a letter agreement dated February 17,
1994, expressing the Parties' intention to negotiate an extension or renewal
of the original term of the Supply Agreement.
The letter agreement provides that the Parties will commence such
negotiations on or before September 14, 1995. In accordance with that
provision, the Parties have met to negotiate an extension of the Supply
Agreement.
AAM and GMCL hereby agree to extend the term of the Supply Agreement
for thirty-one (31) calendar days such that the Supply Agreement will remain
in full force and effect until 11:59 P.M. the 15th day of October, 1996 unless
earlier terminated pursuant to Section 12 thereof. This agreement to extend
the term of the Supply Agreement amends and supersedes the expiration date set
forth in Section 12.A of the Supply Agreement.
All other terms and conditions of the Supply Agreement shall remain
in full force and effect as originally agreed upon, unaffected by this
amendment.
Dated as of September 5, 1996.
AMERICAN AXLE & MANUFACTURING, INC. GENERAL MOTORS OF CANADA LIMITED
BY: /s/ B. G. Mathis BY: /s/ L.D. Worrall
-------------------------------- ---------------------------
ITS: Vice President - Administration ITS: Vice President - Purchasing
--------------------------------- ---------------------------
BY:
---------------------------
ITS:
---------------------------
<PAGE>
AMENDING AGREEMENT
to
AAM/GMCL Supply Agreement between American Axle & Manufacturing, Inc. ("AAM")
and General Motors of Canada Limited ("GMCL") dated February 17, 1994,
(the "Supply Agreement")
Contemporaneous with the execution of the Supply Agreement, AAM and
GMCL (together, the "Parties") executed a letter agreement dated February 17,
1994, expressing the Parties' intention to negotiate an extension or renewal
of the original term of the Supply Agreement.
The letter agreement provides that the Parties will commence such
negotiations on or before September 14, 1995. In accordance with that
provision, the Parties have met to negotiate an extension of the Supply
Agreement and have executed an amending agreement dated September 5, 1996
extending this agreement until October 15, 1996.
AAM and GMCL hereby agree to extend the term of the Supply Agreement
for a further period such that the Supply Agreement will remain in full force
and effect until 11:59 P.M. the 15th day of November, 1996 unless earlier
terminated pursuant to Section 12 thereof. This agreement to extend the term
of the Supply Agreement amends and supersedes the expiration date set forth in
Section 12.A of the Supply Agreement and the subsequent amending agreement of
September 5, 1996.
All other terms and conditions of the Supply Agreement shall remain
in full force and effect as originally agreed upon, unaffected by this
amendment.
Dated as of October 7, 1996.
AMERICAN AXLE & MANUFACTURING, INC. GENERAL MOTORS OF CANADA LIMITED
BY: /s/ B. G. Mathis BY: /s/ L.D. Worrall
------------------------------ ---------------------------
ITS: Vice President Administration ITS: Vice President - Operations
------------------------------- ---------------------------
BY: [copy illegible in original]
----------------------------
ITS: Assistant Secretary
---------------------------
<PAGE>
AMENDMENT NO. 1 TO
AAM/GMCL Supply Agreement between American Axle & Manufacturing,
Inc. ("AAM")
and General Motors of Canada Limited ("GMCL") dated February 17, 1994,
(the "Supply Agreement")
Contemporaneous with the execution of the Supply Agreement, a copy of which is
attached hereto as Exhibit "A", AAM and GMCL (together, the "Parties")
executed a letter agreement dated February 17, 1994, a copy of which is
attached hereto as Exhibit "B", expressing the Parties' intention to negotiate
an extension or renewal of the original term of the Supply Agreement.
The aforementioned letter agreement provides that the Parties will commence
such negotiations on or before September 14, 1995. In accordance with that
provision, the Parties have met to negotiate an extension of the Supply
Agreement.
AAM and GMCL hereby agree to extend the term of the Supply Agreement for three
years such that the Supply Agreement will remain in full force and effect
until September 21, 1999, unless earlier terminated pursuant to Section 12
thereof. This agreement to extend the term of the Supply Agreement amends and
supersedes the expiration date set forth in Section 12.A. of the Supply
Agreement and also amends and supersedes provisions of Paragraph 4 of the
letter agreement.
All other terms and conditions of the Supply Agreement shall remain in full
force and effect as originally agreed upon, unaffected by this amendment.
Dated as of October 22nd, 1996
AMERICAN AXLE & MANUFACTURING, INC. GENERAL MOTORS OF CANADA LIMITED
BY: /s/ B. G. Mathis BY: /s/ L.D. Worrall
------------------------------ ---------------------------
ITS: Vice President Administration ITS: Vice President - Operations
------------------------------- ----------------------------
<PAGE>
AGREEMENT*
THIS AGREEMENT dated this 17th day of February 1997, by and between
American Axle & Manufacturing, Inc. ("AAM") and General Motors Corporation
("GM").
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties, intending to be
legally bound, hereby mutually agree as follows:
1. Commencing thirty (30) days after the effective date of the *** agreement
and on the same date of each month thereafter, GM will pay AAM the
following amount:
***
2. GM hereby agrees to the price increases for the 96-01 program as set forth
in the December 13, 1996, letter from David C. Dauch to Thomas Liem.
IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto
have caused this Agreement to be executed on the date first set forth above.
WITNESS: American Axle & Manufacturing, Inc.
/s/ Patrick S. Lancaster By:/s/ Richard E. Dauch
- ------------------------ --------------------
Title: President - C.E.O.
------------------
WITNESS: General Motors Corporation
/s/ Christopher F. Dubay By: /s/ John Stiles
- ------------------------ -------------------
Title: Exec. Dir. WWP
--------------
- ----------------
* Portions of this Exhibit 10.05 were omitted and filed separately with the
Secretary of the Securities and Exchange Commission (the "Commission")
pursuant to an application for confidential treatment filed with the
Commission pursuant to Rule 406 under the Secruities Act of 1933, as
amended. Such portions are marked by the symbol "***".
<PAGE>
Exhibit 10.05(a)
[LETTERHEAD OF AMERICAN AXLE & MANUFACTURING, INC.]*
December 13, 1996
Mr. Thomas Liem
Purchasing Manager
GMTG
2000 Centerpoint Parkway
Pontiac, MI 48341-3147
Dear Tom:
Re: 96-01 and 97-01 Capacity/Mix Programs
As you know, we have had several meetings as part of our Core Team activity
regarding the financial impact the above referenced programs will have on AAM
and how our two organizations can work together to address the challenges of the
capacity and mix change requirements.
It is worth restating several key points contained in the original 95-03T
submission letter to you dated August 9, 1996. Please be assured that AAM is
committed to fully support 96-01 and 97-01. However, several factors impact
AAM's business case for each of the programs. As previously stated, AAM existing
component prices were fixed at the *** levels, except for engineering changes.
Productivity/throughput improvements have been applied, along with Upside I and
Upside II capacity increases, in order to meet GMTG's increased schedule
requirements. Capacity to accommodate 96-01 and 97-01 does not exist. Therefore,
capital expenditures will be required to provide such capacity. Further, the
capacity plans have been requested of AAM in an incremental fashion, driving
investment inefficiencies when compared to what may have been a consolidated,
single program approach with the GMT800 investment.
The last paragraph of Section 3.3 of the Component Supply Agreement provides
among other things for a review of AAM's financial position as it relates to
capital expenditures and that GM and AAM agree to consider in good faith
Existing Component price increases. We feel an acceptable method to provide a
reasonable pay back on such investment would be a price increase on affected
products. Any such increase could of course be of a temporary nature sufficient
to accomplish this objective. A suggested pricing arrangement is enclosed for
your
- --------------------
* Portions of this Exhibit 10.05(a) were omitted and filed separately with
the Secretary of the Securities and Exchange Commission (the "Commission")
pursuant to an application for confidential treatment filed with the
Commission pursuant to Rule 406 under the Securities Act of 1933, as
amended. Such portions are marked by the symbol "***".
<PAGE>
Mr. Thomas Liem
Page 2
December 13, 1996
consideration. If you are willing to consider such an approach, we will be
prepared to discuss this matter in more detail at your convenience.
AAM requests the rebillable tooling for 96-01 and 97-01 be paid in quarterly
payments consistent with our GMT800 February 20, 1996 agreement. Rebillable
tooling amounts are based on supplier estimates and will be updated as firm
pricing is received. As you know, the required bridge banking for 96-01 has been
converted from a Lean Capacity Rate basis to a Maximum Capacity Rate basis.
Modifications to all premium charges to accomplish this will be detailed in a
separate correspondence.
The 96-01 investment continues to be made by AAM under the 120 day cancellation
charge acknowledgment letter from you dated December 8, 1996. In order to
facilitate the implementation of these program, AAM needs written concurrence on
the following on or before December 20, 1996:
o Rebillable tooling with quarterly payments.
o Bridge banking and selected component sourcing at MCR levels
as GM responsibility as evidenced by a letter of intent.
o An acceptable pricing arrangement to cover pay back of capital
expenditures.
Please contact me if you have any questions. We look forward to supporting the
ever increasing importance of light trucks and sport utilities in GM's vehicle
product portfolio.
Sincerely,
/s/ David C. Dauch
David C. Dauch
Director, GM FST Programs
Enclosure
cc: L. Chissus - GM
D. Demos - AAM
<PAGE>
AMERICAN
AXLE &
MANUFACTURING
96-01
AAM CAPACITY PLAN
TO SUPPORT GM
<TABLE>
<CAPTION>
===========================================================================================================================
Daily
Volume Daily
GMT 800 Volume
Baseline 95-03T Volume Expected
GM-NAO GM-NAO Price Over Price Price Estimated
Products (LCR) (LCR) Increase* Increase* Increase* Tooling $ Lead Time
Affected 11-03-95 12-13-96 Per Unit Duration Duration (millions) Weeks
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
8 1/4 Front 2132 2571 *** 2,387,024 1/1/98- *** 72
Axle 12/31/01
- ----------------------------------------------------------------------------------------------------------------------------
9 1/4 Front 405 530 *** 485,332 1/1/98- *** 72
Axle 12/31/01
- ----------------------------------------------------------------------------------------------------------------------------
K-Aux 2454 3101 *** 2,873,064 1/1/98- *** 68
Propshaft 12/31/01
- ----------------------------------------------------------------------------------------------------------------------------
C/K Strg 2500 3338 *** 3,341,288 7/1/99- *** 68
Linkage 6/30/03
============================================================================================================================
</TABLE>
* Price increase subject to change based on actual volumes attained in order
to provide a ***, and assumes GMT 800 Program timing remains on schedule
per GM-NAO LCR 2-13-96. Volume attainment to be mutually tracked and agreed
to by AAM and GM.
<PAGE>
AMERICAN
AXLE &
MANUFACTURING
97-01
AAM CAPACITY PLAN
TO SUPPORT GM
<TABLE>
<CAPTION>
==================================================================================================================================
Daily Price Volume Expected
Volume Daily Increase Over Price Price Estimated
Products 96-01 Volume Per Increase Increase Tooling $ Lead Time
Affected Baseline 97-01 Unit Duration Duration (millions) Weeks
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
7.25 1636 2014 *** 1,901,216 8/01/00- *** 80
Frt Axle 7/31/04
- ----------------------------------------------------------------------------------------------------------------------------------
8.25 2571 2795 *** 2,638,480 8/01/00- *** 80
Frt Axle 7/31/04
- ----------------------------------------------------------------------------------------------------------------------------------
9.25 534 749 *** 707,056 8/01/00- *** 80
Frt Axle 7/31/04
- ----------------------------------------------------------------------------------------------------------------------------------
7.625 4065 3923 *** N/A N/A *** N/A
Rear Axle
- ----------------------------------------------------------------------------------------------------------------------------------
8.6 Rear Axle 4504 4980 *** 4,701,120 8/01/00- *** 80
7/31/04
- ----------------------------------------------------------------------------------------------------------------------------------
9.5 Rear Axle 501 676 *** 638,144 8/01/00- *** 80
7/31/04
- ----------------------------------------------------------------------------------------------------------------------------------
10.5 794 591 *** N/A N/A *** N/A
Rear Axle
- ----------------------------------------------------------------------------------------------------------------------------------
11.5* 0 513 *** N/A N/A *** N/A
Rear Axle
- ----------------------------------------------------------------------------------------------------------------------------------
Linkage Various Various *** N/A N/A *** N/A
- ----------------------------------------------------------------------------------------------------------------------------------
Propshaft Various Various *** 9,484,368 8/01/00- *** 80
7/31/04
- ----------------------------------------------------------------------------------------------------------------------------------
Supplier Various Various *** Various N/A *** 80
==================================================================================================================================
</TABLE>
Note: Price increase subject to change based on actual volumes attained in
order to provide a ***, and assumes GMT-800 program timing remains on
schedule per GM NAO LCR 9/25/96. Volume attainment to be mutually
tracked and agreed to by AAM and GM.
* Not included in 97-01 capacity/mix program - separate business case to be
provided.
<PAGE>
THE AMENDED AND RESTATED
AMERICAN AXLE & MANUFACTURING OF MICHIGAN, INC.
MANAGEMENT STOCK OPTION PLAN
This Management Stock Option Plan is hereby adopted by the Board of Directors
of American Axle & Manufacturing of Michigan, Inc., a corporation organized
under the laws of Michigan (the "Company"), as of November 15, 1997.
ARTICLE I
PURPOSE OF PLAN
The Plan is adopted by the Board for certain management Employees as a part of
the compensation and incentive arrangements for such Employees. The Plan is
intended to advance the Company's best interests by allowing such Employees to
acquire an ownership interest in the Company, thereby motivating them to
contribute to the success of the Company and to remain in the employ of the
Company and its Subsidiaries. It is anticipated that the availability of
Options under the Plan will also enhance the Company's ability to attract and
retain individuals of exceptional talent to contribute to the progress, growth
and profitability of the Company and its Subsidiaries.
ARTICLE II
DEFINITIONS
For purposes of the Plan, except where the context clearly indicates otherwise,
the following terms shall have the meanings set forth below:
"Acceleration Event" shall mean an event with respect to which the Plan
provides for the acceleration of the vesting of Options, as provided in Section
5.3.
"Affiliate" shall mean, with respect to any Person, (i) any other Person that
directly or indirectly Controls, is Controlled by or is under common Control
with, such Person, or (ii) any director, officer, partner, member or employee
of such Person or any Person specified in clause (i) above; provided, that
officers, directors or employees of the Company (or one of its Subsidiaries)
shall be deemed not to be Affiliates of Blackstone for purposes hereof solely
by reason of being officers, directors or employees of the Company (or one of
its Subsidiaries).
"Blackstone" shall mean collectively, Blackstone Capital Partners II Merchant
Banking Fund L.P., Blackstone Offshore Capital Partners II L.P., The Blackstone
Group L.P., Blackstone Family
<PAGE>
2
Investment Partnership II L.P. and their Affiliates (other than the Company and
its Subsidiaries).
"Board" shall mean the Board of Directors of the Company.
"Cause" shall mean (i) neglect of or willful and continuing refusal to perform
one's duties (other than due to Disability), (ii) a breach of any
non-competition/no raid covenants the Participant is subject to, (iii) engaging
in conduct which is demonstrably injurious to the Company, the Company's
Subsidiaries or Affiliates, or Blackstone (including, without limitation, a
breach of any confidentiality covenant the Participant is subject to), or (iv)
a conviction or plea of guilty or nolo contendere to a felony or a misdemeanor
involving moral turpitude, dishonesty or theft, in each case as determined in
the sole discretion of the Board.
"Change of Control" shall mean the purchase or other acquisition by any person,
entity or group of persons, within the meaning of section 13(d) or 14(d) of the
Exchange Act, or any comparable successor provisions, other than Blackstone,
employees or directors of the Company or their respective Affiliates, of
ownership of fifty percent (50%) or more of the combined voting power of the
Company's then outstanding voting securities entitled to vote generally.
"Class I Performance Options" shall mean the management case performance
options described in Section 5.2(b) hereof.
"Class II Performance Options" shall mean the performance options described in
Section 5.2(c) hereof.
"Code" shall mean the Internal Revenue Code of 1986, as amended, and any
successor statute.
"Committee" shall mean the Compensation Committee of the Board.
"Common Stock" shall mean the common shares of the Company.
"Company" shall mean American Axle & Manufacturing of Michigan, Inc., a
corporation organized under the laws of Michigan.
"Control" (including, with correlative meaning, all conjugations thereof) shall
mean with respect to any Person, the ability of another Person to control or
direct the actions or policies of such first Person, whether by ownership of
voting securities, by contract or otherwise.
"Cumulative EBITDA" shall mean with respect to any Performance Option, the sum
of the EBITDA for the period commencing on the January 1 of the year following
the Grant Date and ending on the Determination Date of the Plan Year.
<PAGE>
3
"Cumulative EBITDA Targets" shall mean with respect to any Performance Option,
the sum of the relevant EBITDA Targets for the period commencing on the
January 1 of the year following the Grant Date and ending on the Determination
Date of the Plan Year.
"Determination Date" shall mean the last day of the Plan Year.
"Disability" shall mean the inability of a Participant to perform in all
material respects his duties and responsibilities to the Company, or any
Subsidiary of the Company, by reason of a physical or mental disability or
infirmity which inability is reasonably expected to be permanent and has
continued (i) for a period of six consecutive months or (ii) such shorter
period as the Board may reasonably determine in good faith. The Disability
determination shall be in the sole discretion of the Board and a Participant
(or his Representative) shall furnish the Board with medical evidence
documenting the Participant's disability or infirmity which is satisfactory to
the Board.
"EBITDA" shall mean, with respect to the Company and its Subsidiaries on a
consolidated basis for any period, the net income of the Company and its
Subsidiaries for such period, plus the following (only to the extent used in
calculating net income for such period): (a) net interest expense; (b) tax
expense; (c) expenses related to Blackstone's monitoring and management fees;
(d) any one time charge or gain relating to the Recapitalization; (e) any gain
or loss on the sale of fixed assets; and (f) depreciation and amortization of
tangible and intangible assets, all as determined in accordance with generally
accepted accounting principles, with appropriate adjustments for non-recurring
events as determined by the Board.
"EBITDA Target" shall mean, with respect to each fiscal year, the EBITDA
amount that must be achieved to become vested as described in Section 5.2.
"EBITDA Target (Class I)" shall mean, with respect to each fiscal year, the
amount set forth in the following table opposite such year:
Fiscal Year Ending EBITDA Target (Class I)
------------------ -----------------------
(in millions)
1998 $253.1
1999 $306.2
2000 $328.2
2001 $339.7
2002 $339.7
and such other targets as are established by the Committee with respect to
subsequent years. The Board shall make equitable adjustments to such targets
in the event (i) the fiscal year is modified or (ii) there are changes in the
Company's accounting policies. The Board may make adjustments to the above
targets to
<PAGE>
4
the extent that the expenses incurred by the Company, with respect to new
operating leases entered into after October 29, 1997 ("New Operating Leases"),
differ from the expenses projected for New Operating Leases in the Confidential
Information Memorandum relating to the Senior Secured Credit Facilities, dated
October 1997.
"EBITDA Target (Class II)" shall mean with respect to each fiscal year, the
amount set forth in the following table opposite such year:
Fiscal Year Ending EBITDA Target (Class II)
------------------ ------------------------
(in millions)
1998 $291.1
1999 $352.1
2000 $377.4
2001 $390.7
2002 $390.7
and such other targets as are established by the Committee with respect to
subsequent years. The Board shall make appropriate adjustments to such targets
in the event (i) the fiscal year is modified or (ii) there are changes in the
Company's accounting policies. The Board may make adjustments to the above
targets to the extent that the expenses incurred by the Company, with respect
to new operating leases entered into after October 29, 1997 ("New Operating
Leases"), differ from the expenses projected for New Operating Leases in the
Confidential Information Memorandum relating to the Senior Secured Credit
Facilities, dated October 1997.
"Employee" shall mean any employee of the Company or any of its
Subsidiaries.
"Employment Agreement" shall mean any employment agreement between a
Participant and the Company, as amended from time to time.
"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.
"Exercise Price" shall mean the amount that a Participant must pay to exercise
an Option with respect to one Option Share subject to such Option.
"Fair Market Value" shall mean, with respect to any Common Stock:
(i) prior to an initial Public Offering, the fair market value of the
Common Stock as determined in good faith by the Board based on the
value of the Company as a going concern, but without any discount
with respect to the minority ownership represented by such shares or
the contractual restrictions on the Transfer of the Shares; or
<PAGE>
5
(ii) on and after an initial Public Offering, the average of its
closing price for the 20 trading days immediately preceding the day
of the valuation.
"Financing Default" shall mean an event which would constitute (or with notice
or lapse of time or both would constitute) an event of default by the Company
or any of its Subsidiaries (which event of default has not been cured or
waived) under any of the following as they may be amended from time to time:
(i) The Credit Agreement (the "Credit Agreement") dated on or about the
Recapitalization Closing Date, among the Company, American Axle &
Manufacturing, Inc ("AAM"), The Chase Manhattan Bank, The Chase Manhattan Bank
Delaware and any other financial institutions party thereto, and any
extensions, renewals, refinancing or refundings thereof in whole or in part;
(ii) any other agreement under which an amount of indebtedness (in excess of
$5,000,000) of the Company or any of its Subsidiaries is outstanding as of the
time of the aforementioned event, and any extensions, renewals, refinancing or
refundings thereof in whole or in part; (iii) any amendment of, supplement to
or other modification of any of the instruments referred to in clauses (i) and
(ii) above; and (iv) any of the securities issued pursuant to or whose terms
are governed by the terms of any of the agreements set forth in clauses (i)
and (ii) above, and any extensions, renewals, refinancing or refundings
thereof in whole or in part.
"Good Reason" shall mean a material reduction in base salary, or a material
reduction in bonus, in either case as determined in the sole discretion of the
Board. The Participant shall be deemed to have voluntarily terminated
employment with Good Reason if he Retires on or after the third anniversary of
the Recapitalization Closing Date. However, if a Participant Retires prior to
the third anniversary, he shall be deemed to have voluntarily terminated
employment without Good Reason.
"Grant Date" shall mean the date an Option is granted pursuant to this Plan.
"Option" shall mean, with respect to any Participant, any Time Option or
Performance Option.
"Option Agreement" shall mean an option agreement between a Participant and
the Company, substantially in the form of one of the agreements attached
hereto as Exhibit A.
"Option Shares" shall mean, with respect to any Participant, any Shares
issuable or issued by the Company upon exercise of any Option by such
Participant, as adjusted as a result of any stock dividend, stock split,
merger, consolidation, reorganization or other recapitalization.
"Participant" shall mean any Employee who holds an outstanding Option granted
under this Plan.
<PAGE>
6
"Performance Options" shall mean Class I Options and Class II Options,
collectively.
"Person" shall mean an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political
subdivision thereof.
"Plan" shall mean this Management Stock Option Plan, as amended from time to
time.
"Plan Year" shall mean initially the calendar year beginning January 1, 1998
and ending on December 31, 1998, and thereafter each of the calendar years
from 1999 through 2004.
"Public Offering" shall mean the sale of Shares pursuant to an effective
registration statement under the Securities Act, which results in an active
trading market in Common Stock. If the Common Stock is listed on a United
States securities exchange or is quoted on the NASDAQ National Market, it
shall be deemed to be actively traded.
"Recapitalization" shall be given the same meaning as in the Recapitalization
Agreement.
"Recapitalization Agreement" shall mean the agreement dated as of September 19,
1997 among the Company, American Axle & Manufacturing, Inc. ("AAM"), Jupiter
Capital Corporation, Mr. Richard E. Dauch, Mr. Morton E. Harris and AAM
Acquisition, Inc.
"Recapitalization Closing Date" shall mean the date of the closing of the
Recapitalization.
"Recapitalization Price" shall mean $16,811.78 per share.
"Representative" shall mean (i) in the case of death, the executor, liquidator
or administrator of the deceased Participant's estate or the Person or Persons
to whom the deceased Participant's rights under the Option shall pass by will
or the laws of descent and distribution and (ii) in the case of Disability,
his or her legal guardian or legal representative.
"Retire" shall mean, with respect to any Participant, such Participant's
voluntary resignation at any time after attaining age 65 (or at any earlier
date with the advanced permission of the Company).
"Securities Act" shall mean the Securities Act of 1933, as amended.
"Shares" shall mean any shares of Common Stock issuable or issued by the
Company.
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7
"Subsidiary" shall mean any corporation of which the Company owns, directly or
through one or more subsidiaries, securities having a majority of the ordinary
voting power in electing the board of directors of such corporation.
"Time Options" shall mean the options described in Section 5.1 hereof.
"Transfer" shall mean, with respect to any Option, the gift, sale, assignment,
transfer, pledge, hypothecation or other disposition (whether for or without
consideration and whether voluntary, involuntary or by operation of law), or
any act thereof, of such Option or any interest therein.
ARTICLE III
LIMITATION ON AVAILABLE OPTION SHARES
3.1 Option Shares. The aggregate number of Shares with respect to which
Options may be granted under the Plan shall not exceed 1,425 Shares, which
represents 12% of the Common Stock outstanding on a fully diluted basis as of
the Recapitalization Closing Date (to be divided equally among Time Options,
Class I Performance Options and Class II Performance Options); provided,
however, that the aggregate number of Shares with respect to which Options may
be granted shall be subject to adjustment in accordance with the provisions of
Section 9.2 below.
3.2 Status of Option Shares. The Shares of Common Stock for which Options may
be granted under the Plan may be either authorized and unissued shares,
treasury shares or a combination thereof, as the Committee shall determine and
shall be reserved by the Committee for issuance under this Plan. To the extent
any Options are forfeited, expire or are terminated prior to exercise, the
Option Shares in respect of which such Options were issued shall become
available for reissuance to Employees pursuant to this Plan or any other plan
or agreement approved by the Board.
ARTICLE IV
GRANT OF OPTIONS
4.1 Options. Options granted on the Recapitalization Closing Date (the
"Initial Grant") shall be granted by the Board. Thereafter, the Committee
shall grant Options to such Employees as the Committee may determine. Each
Participant granted Options must execute an Option Agreement.
4.2 Exercise Price. The Exercise Price of Options granted hereunder shall be
the Fair Market Value of the Shares subject to the Option, determined as of
the Grant Date. For purposes of the
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8
Initial Grant, the Exercise Price of Options shall be the Recapitalization
Price.
4.3 Form of Option. Options granted under this Plan shall be non-qualified
stock options and are not intended to be "incentive stock options" within the
meaning of Section 422 of the Code or any successor provisions. Options shall
be exercisable with respect to the number of Shares covered by the Option to
the extent they become both vested and exercisable (as determined below) and
shall thereafter be exercisable until they expire or are terminated (as
determined below).
4.4 Dilution of Options. Participants shall be subject to the same dilution as
the non-Participant holders of Common Stock, and shall not have any preemptive
or other special rights.
4.5 Regulatory Approvals. The grant of any Options hereunder following a
Public Offering shall be subject to the receipt by the Company of all
necessary regulatory approvals.
ARTICLE V
VESTING, EXERCISABILITY AND
EXPIRATION OF OPTIONS; PUTS AND CALLS
5.1 Time Options. Except as otherwise provided in the Option Agreement, all
Time Options granted pursuant to this Plan as part of the Initial Grant shall
become completely exercisable in accordance with the following schedule:
Exercisable
Percentage
Prior to December 31, 1998 0%
On or after December 31, 1998 20%
On or after December 31, 1999 40%
On or after December 31, 2000 60%
On or after December 31, 2001 80%
On or after December 31, 2002 100%
For Participants granted Time Options after December 31, 1997, such Options
shall become exercisable, with respect to 20% of the Shares subject to such
Options, on each of the first five anniversaries of the Grant Date.
5.2 Performance Options.
(a) Except as otherwise provided in the Option Agreement, all
Performance Options granted pursuant to this Plan shall become exercisable in
accordance with this Section 5.2.
(b) Class I Performance Options. The Class I Performance Options
shall become exercisable with respect to 100% of the
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9
Shares on the seventh anniversary of the Grant Date. Notwithstanding the
foregoing, Class I Performance Options shall become exercisable with respect
to 20% of the Shares subject to such Option, on each of the first five
Determination Dates following the Grant Date that the Company's EBITDA for a
Plan Year equals or exceeds the EBITDA Target (Class I) for that Plan Year.
(c) Class II Performance Options. The Class II Performance Options
shall become exercisable with respect to 100% of the Shares on the seventh
anniversary of the Grant Date. Notwithstanding the foregoing, Class II
Performance Options shall become exercisable with respect to 20% of the Shares
subject to such Option, on each of the first five Determination Dates
following the Grant Date that the Company's EBITDA for a Plan Year equals or
exceeds the EBITDA Target (Class II) for that Plan Year.
(d) Catch-Up. If, beginning January 1 after the Grant Date of a
Performance Option, the Company's EBITDA for a Plan Year is less than 100% of
the applicable EBITDA Target for such Plan Year (a "Missed Year"), no such
Performance Option shall become vested with respect to any additional Shares
(the "Missed Shares") on the Determination Date for such Plan Year. If, in any
Plan Year subsequent to a Missed Year EBITDA exceeds the applicable EBITDA
Target for such Plan Year and Cumulative EBITDA exceeds the applicable
Cumulative EBITDA Targets, then Performance Options shall become vested with
respect to the Missed Shares attributable to such Missed Year (but only to the
extent such Option has not otherwise terminated).
5.3 Acceleration Events. Notwithstanding anything in this Article V to the
contrary, Time Options shall become completely exercisable upon the first to
occur of the following Acceleration Events: (i) a Change of Control during a
Participant's period of employment, and (ii) to the extent provided in a
Participant's Option Agreement, a Participant's termination without Cause or
voluntary termination for Good Reason.
5.4 Exercisability in the Event Employment is Terminated. A Participant's
unvested Time Options and unvested Performance Options shall expire upon the
Participant's termination of employment unless an applicable Acceleration
Event has occurred.
5.5 Reallocation of Options. Options that are terminated or forfeited may be
reallocated to other Employees as determined by the Board or Committee, in
consultation with the Chief Executive Officer.
5.6 Expiration Date. Options shall expire at 5:00 p.m. Eastern Standard Time
on the day prior to the 12th anniversary of the Grant Date (the "Expiration
Date").
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10
5.7 Earlier Expiration Date. Notwithstanding Section 5.5, in the event of
termination of employment, Options shall expire prior to the Expiration Date
as follows:
(a) A Participant's Options shall expire immediately, without any
payment, upon the Participant's termination of employment if the Participant's
employment is terminated for Cause or if the Participant voluntarily
terminates employment without Good Reason;
(b) If the Participant voluntarily terminates employment with Good
Reason or if the Participant's employment is terminated without Cause, the
Participant's Options shall expire on the later of (i) six months after the
Participant's termination of employment or (ii) six months following a Public
Offering or Change of Control.
5.8 Calls. The Company shall have the rights specified in Section 5.8(a) to
purchase Options and Option Shares from a Participant ("Call") However, there
shall be no Calls after the consummation of an initial Public Offering.
(a) Call.
(i) Option Shares. On or after the date a Participant
exercises all or a portion of an Option granted hereunder,
the Company shall have the right and option to purchase for
a period of 90 days from the date of the Participant's
termination of employment for any reason (or, if later, for
a period of 200 days from the last date the Participant
exercised an Option), and if the Company exercises such
right, each Participant shall be required to sell to the
Company, any or all of his or her owned Option Shares at a
price per share equal to the Fair Market Value (as of the
date the Company exercises such right).
(ii) Options. The Company shall, after a Participant's
employment has terminated, have the right and option to
purchase and if the Company exercises such right each
Participant shall be required to sell to the Company, any or
all of his or her then outstanding Options at a price per
Option equal to the Fair Market Value minus the Exercise
Price.
(iii) Notice. If the Company desires to exercise its option
to purchase any Options or Option Shares pursuant to this
Section 5.8(a), the Company shall, not later than 60 days
after the date of the Participant's termination of
employment (or, with respect to Section 5.8(a)(i), if later,
170 days from the last date an Option, or a portion of an
Option, was exercised), send written notice of its intention
to purchase such Shares or Options. The closing of the
purchase shall take
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11
place at the principal office of the Company on the 30th day
after the giving of notice by the Company of its exercise of
its option to purchase (the "Closing").
(iv) If the Company is prohibited by applicable law from
exercising a right pursuant to this Section 5.8(a), then the
Company may assign such right to its stockholders on a pro
rata basis. In the event that a stockholder does not wish to
exercise its assigned right, Blackstone shall have the right
(but not the obligation) to exercise such assigned right.
(b) Deferral of Purchases.
(i) The Company shall not be obligated to purchase any
Options or Option Shares at any time pursuant to Section
5.8(a), (A) to the extent that the purchase of such Options
or Option Shares would result, after giving effect thereto,
in a Financing Default, or (B) if doing so would constitute
a Financing Default or if immediately prior to such purchase
there exists a Financing Default which prohibits such
purchase. The Company shall within 20 days of learning of
any of the foregoing facts notify the Participant that it is
not obligated to purchase the Options or Option Shares
pursuant to Section 5.8(a)
(c) Payment. If at any time the Company elects to purchase any
Options or Option Shares pursuant to Section 5.8(a), the Company shall, at the
Closing, pay the purchase price for such Options or Option Shares by delivery
of a bank cashier's check or certified check for the purchase price.
ARTICLE VI
EXERCISE OF OPTIONS
6.1 Right to Exercise. During the lifetime of a Participant, vested and
exercisable Options may be exercised only by such Participant (except that, in
the event of his or her death or Disability, Options may be exercised by his
or her Representative).
6.2 Procedure for Exercise. Options may be exercised in whole or in part with
respect to any portion that is vested and exercisable. To exercise an Option a
Participant (or such other Person who shall be permitted to exercise the
Option as set forth in Section 6.1) must complete, sign and deliver to the
Company (to the attention of the Company's Secretary) a notice of exercise
substantially in the form attached hereto as Annex I (or in such other similar
form as the Committee may from time to time adopt and provide to a
Participant) (the "Exercise Notice"), together with payment in full of the
Exercise Price multiplied by
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12
the number of Shares with respect to which the Option is exercised. Payment of
the Exercise Price shall be made (i) in cash (including certified check, bank
draft or money order) or (ii) at the discretion of the Committee, with shares
of Common Stock with a Fair Market Value equal to the Exercise Price;
provided, that such shares of Common Stock have been held by the Participant
for no less than six months. Immediately prior to the exercise of any of the
Options, the Participant shall enter into a stockholders' agreement in a form
to be determined by the Board in its sole discretion. The execution of such
stockholders' agreement shall be a condition to the exercise of such Options.
A Participant's right to exercise the Option shall be subject to the
satisfaction of all conditions set forth in the Exercise Notice.
6.3 Withholding of Taxes. The Company shall withhold from any Participant from
any amounts due and payable by the Company to such Participant (or secure
payment from such Participant in lieu of withholding) the amount of any
withholding or other tax due from the Company with respect to any Option
Shares issuable under the Plan, and the Company may defer such issuance unless
indemnified to its satisfaction.
ARTICLE VII
RIGHTS AND LIMITATIONS
7.1 Registration of Option Shares. Promptly following the first Public
Offering, the Company shall file, at its own expense, a registration statement
on Form S-8 to register the Option Shares, which Option Shares shall be subject
to applicable stockholder agreements.
7.2 Transfer of Options. Unless otherwise provided by the Committee, Options
may not be Transferred (other than by will or the laws of descent or
distribution).
ARTICLE VIII
ADMINISTRATION
8.1 Plan Administrator. This Plan shall be administered by the Committee;
provided, however, that the Committee may delegate responsibility for the
routine administration of the Plan to an officer or officers of the Company.
8.2 Committee Option Grants. The Committee shall have the authority to select
Employees to receive Options and to grant Options (except for the Options
granted as part of the Initial Grant, which shall be granted by the Board) to
Employees in such amounts as it shall determine, in its full discretion.
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13
8.3 Committee Authority. The Committee shall have the sole and complete
responsibility and authority to (a) interpret and construe the terms of this
Plan; (b) correct any defect, error or omission or reconcile any inconsistency
in the Plan or in any Option granted hereunder; and (c) make all other
determinations and take all other actions necessary or advisable for the
implementation and administration of the Plan. The Committee's determinations
on matters within its authority, or the Board's determinations on matters
within its authority, as the case may be, shall be conclusive and binding upon
the Participants, the Company and all other Persons. The Committee may, in its
discretion, accelerate the vesting of Options at any time and for any reason.
8.4 Composition of Committee. At any time when the Company is subject to the
reporting requirements of Section 13 or Section 15(d) of the Exchange Act, the
Committee shall consist of two or more directors who are "non-employee
directors," within the meaning of Rule 16b-3 of the Exchange Act. At any time
when the Company has a class of common equity securities required to be
registered under Section 12 of the Exchange Act, the Committee shall consist
of at least two outside directors, within the meaning of Section 162(m)(4)(C)
of the Code.
ARTICLE IX
MISCELLANEOUS
9.1 Amendment, Suspension and Termination of Plan. The Board, at any time and
from time to time, may suspend, terminate or amend the Plan. However, no
suspension, termination or amendment of or to the Plan shall affect adversely
the rights of any Participant with respect to Options issued hereunder prior
to the date of such suspension, termination or amendment without the consent
of such Participant. Unless terminated earlier, the Plan shall terminate on
December 31, 2004.
9.2 Adjustments. In the event of a merger, recapitalization, stock dividend,
reorganization, stock split, share consolidation or combination, or other
similar event, the Committee shall make such adjustments in the number and
type of Shares authorized by the Plan, the number and type of Shares covered
by outstanding Options and the Exercise Prices specified therein and other
amendments to the Plan as the Board, in good faith, determines to be
appropriate and equitable.
9.3 Future Acquisitions or Dispositions. The EBITDA Targets are based upon
certain revenue and expense assumptions about the future business of the
Company and its Subsidiaries as of the Recapitalization Closing Date.
Accordingly, if the Company or any Subsidiary acquires, by purchase or
otherwise, or disposes of, by sale of stock or assets, the business, property,
or fixed
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14
assets, of another Person, which acquisition or disposition, either singly or
together with one or more other such transactions, will, in the Board's good
faith determination, materially affect the Company's EBITDA, the Committee
shall, in good faith, adjust the EBITDA Targets to reflect the projected
effect of such transaction or transactions.
9.4 No Right to Participate. Except as otherwise agreed to by the Company, no
Employee shall have a right to be selected as a Participant or, having been so
selected, to be selected again to receive a grant of Options.
9.5 No Employment Contract. Nothing in this Plan shall interfere with or limit
in any way the right of the Company or any of its Subsidiaries to terminate
any Participant's employment at any time (with or without Cause), nor confer
upon any Participant any right to continued employment by the Company or any
of its Subsidiaries for any period of time or to continue such employee's
present (or any other) rate of compensation.
9.6 Construction of Plan. The terms of this Plan shall be administered in
accordance with the laws (excluding conflict of interest laws) of the State of
New York. Any dispute arising out of or relating to this Plan or its
interpretation, termination or validity shall be resolved by arbitration in
New York, New York pursuant to the Rules of the American Arbitration
Association for commercial arbitrations.
9.7 Effective Date. This Plan shall be effective as of November
15, 1997.
<PAGE>
Exhibit 10.10
INDEMNIFICATION AGREEMENT
THIS INDEMNIFICATION AGREEMENT (this "Agreement") is dated as
of February 28, 1994, by and between General Motors Corporation, a Delaware
corporation ("GM"), and American Axle & Manufacturing, Inc., a Delaware
corporation ("AAM").
RECITALS
WHEREAS, the parties hereto have entered into a certain Asset
Purchase Agreement dated as of February 18, 1994 (the "Asset Purchase
Agreement") (unless otherwise indicated, capitalized terms used herein have the
same meaning as those set forth in the Asset Purchase Agreement); and
WHEREAS, pursuant to the terms and conditions of the Asset
Purchase Agreement, the parties hereto have agreed to indemnify each other upon
the occurrence of certain events;
NOW, THEREFORE, in consideration of the promises and the
mutual covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, AAM and GM agree to
certain additional terms and conditions relating to such indemnities as follows:
I. Conditions of General Indemnification.
(a) GM shall indemnify and hold harmless AAM, its
shareholders, officers, directors, agents and employees from and against any and
all losses, liabilities, damages, demands, claims, suits, actions, judgements or
causes of action, assessments, costs and expenses including, without limitation,
interest, penalties, reasonable attorneys' fees, any and all reasonable expenses
incurred in investigating, preparing or
<PAGE>
defending against any litigation, commenced or threatened, or any claim
whatsoever, and any and all amounts paid in settlement of any claim or
litigation (collectively, "Damages"), asserted against, resulting to, imposed
upon, or incurred or suffered by AAM, directly or indirectly, as a result of or
arising from the following (individually an "Indemnifiable Claim" and
collectively "Indemnifiable Claims" when used in the context of AAM as the
Indemnified Party (as defined below)):
(i) Any breach of any of the representations, warranties or
agreements made by GM in the Asset Purchase Agreement or the non-performance of
any covenant or obligation to be performed by GM thereunder;
(ii) Any liability imposed upon AAM relating to the conduct by
GM of the operations of the Business on or prior to the date of the Closing,
except to the extent such liability may be expressly assumed by AAM pursuant to
Section 3.1 of the Asset Purchase Agreement;
(iii) Any misrepresentation in or any omission from any
certificate or Exhibit (excluding the Ancillary Agreements) to the Asset
Purchase Agreement or other material document furnished or to be furnished by or
on behalf of GM under the Asset Purchase Agreement; or
(iv) GM's failure to comply with the bulk transfer laws of any
state or its misapplication of the proceeds of the purchase price of the Assets
and the Business in fraud of its creditors.
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(b) AAM shall indemnify and hold harmless GM, its
shareholders, directors, officers, agents and employees from and against any and
all Damages asserted against, resulting to, imposed upon, or incurred or
suffered by GM, directly or indirectly, as a result of or arising from the
following (individually and "Indemnifiable Claim" and collectively
"Indemnifiable Claims" when used in the context of GM as the Indemnified Party):
(i) Any breach of any of the representations, warranties or
agreements made by AAM in the Asset Purchase Agreement or the non-performance of
any covenant or obligation to be performed by AAM thereunder;
(ii) Any liability imposed upon GM relating to the conduct by
AAM of the operations of the Business after the date of the Closing;
(iii) Any misrepresentation in or any omission from any
certificate or Exhibit (excluding the Ancillary Agreements) the Asset Purchase
Agreement or other material document furnished or to be furnished by or on
behalf of AAM under the Asset Purchase Agreement; or
(iv) The nonperformance or nonpayment by AAM of any of the
Assumed Liabilities expressly set forth in Section 3.1 of the Asset Purchase
Agreement.
(c) Without duplication of Damages, AAM or GM, as the case may
be, shall be deemed to have suffered Damages arising out of or resulting from
the matters referred to in subsections (a)
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and (b) above if the same shall be suffered by any parent, subsidiary or
Affiliate of AAM or GM, respectively.
II. Limitations on Indemnification.
Rights of indemnification hereunder are subject to the
following limitations:
(a) AAM shall not be entitled to indemnification hereunder
with respect to any Indemnifiable Claim if AAM's Damages relating to such
Indemnifiable Claim are less than $300,000 (the "Excluded Amount");
(b) Notwithstanding anything to the contrary in subparagraph
(a) above, AAM shall be entitled to indemnification hereunder, if and to the
extent that (i) the amount of any Damages asserted against, resulting to,
imposed upon, or incurred or suffered by AAM with respect to any Indemnifiable
Claim is equal to or in excess of the Excluded Amount (a "Permissible Claim"),
and (ii) that aggregate of all Damages with respect to a Permissible Claim (or,
if more than one Permissible Claim is asserted, with respect to all Permissible
Claims) equals or exceeds $3,000,000, in which event the indemnity provided for
in Section I hereof shall be effective with respect to all of such Damages
relating to Permissible Claims.
(c) Notwithstanding anything to the contrary in subparagraphs
(a) or (b) above, the limitations set forth in subparagraphs (a) and (b) above
shall not apply with respect to Indemnifiable Claims under Sections 4.1.4, 10.7,
10.8, or 10.9 or Section V of the Asset Purchase Agreement.
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<PAGE>
(d) If, prior to the termination of any obligation to
indemnify as explicitly provided in the Asset Purchase Agreement, written notice
of a claimed breach is given by the party seeking indemnification including in
detail the basis therefor (the "Indemnified Party") to the party from whom
indemnification is sought (the "Indemnifying Party") or a suit or action based
upon a claimed breach is commenced against the Indemnifying Party, the
Indemnified Party shall not be precluded from pursuing such claimed breach or
suit or action, or from recovering from the Indemnifying Party (whether through
the courts or otherwise) on the claim, suit or action, by reason of the
termination otherwise provided for above.
III. Procedure for Indemnification with Respect to Third Party Claims.
(a) If the Indemnified Party determines to seek
indemnification under this Article with respect to Indemnifiable Claims
resulting from the assertion of liability by third parties, it shall give notice
to the Indemnifying Party within forty-five (45) days of the Indemnified Party's
becoming aware of any such Indemnifiable claim or of facts upon which any such
Indemnifiable Claim will be based; the notice shall set forth such information
with respect thereto as is then reasonably available to the Indemnified Party.
If any such liability is asserted against the Indemnified Party, and the
Indemnified Party notifies the Indemnifying Party thereof, the Indemnifying
Party will be entitled, if it so elects by written notice delivered to the
Indemnified Party within twenty (20) days after receiving the
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<PAGE>
Indemnified Party's notice, to assume the defense thereof with counsel
reasonably satisfactory to the Indemnified Party. Notwithstanding the foregoing
(i) the Indemnified Party shall also have the right to employ its own counsel in
any such case, but the fees and expenses of such counsel shall be the expense of
the Indemnified Party; (ii) the Indemnified Party shall not have any obligation
to give any notice of any assertion of liability by a third party unless such
assertion is in writing; and (iii) the rights of the Indemnified Party to be
indemnified hereunder in respect of Indemnifiable Claims resulting from the
assertion of liability by third parties shall not be adversely affected by its
failure to give notice pursuant to the foregoing unless, and, if so, only to the
extent that, the Indemnifying Party is materially prejudiced thereby. With
respect to any assertion of liability by a third party that results in an
Indemnifiable Claim, the parties hereto shall make available to each other all
relevant information in their possession material to any such assertion.
(b) In the event that the Indemnifying Party, within twenty
(20) days after receipt of the aforesaid notice of an Indemnifiable Claim, fails
to assume the defense of the Indemnified Party against such Indemnifiable Claim,
the Indemnified Party shall have the right to undertake the defense, compromise
or settlement of such action on behalf of and for the account and risk of the
Indemnifying Party.
(c) Notwithstanding anything in this Section III to the
contrary, (i) if there is a reasonable probability that an
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<PAGE>
Indemnifiable Claim may materially and adversely affect the Indemnified Party,
other than as a result of money damages or other money payments, the Indemnified
Party shall have the right, at its own cost and expense, to defend, compromise
or settle such Indemnifiable Claim; and (ii) the Indemnifying Party shall not,
without the Indemnified Party's written consent, settle or compromise any
Indemnifiable Claim or consent to entry of any judgment in respect thereof
unless such settlement, compromise or consent includes as an unconditional term
thereof providing for the giving by the claimant or the plaintiff to the
Indemnified Party and all affiliates of the Indemnified Party a release from all
liability in respect of such Indemnifiable Claim. If the Indemnifying Party can
settle such Indemnifiable Claim with a complete release of the Indemnified party
and all affiliates for the Indemnified Party for monetary damages only, but the
Indemnified Party refuses such settlement, the Indemnifying Party shall not be
liable for Damages in excess of the monetary damages of such proposed
settlement.
IV. Procedure For Indemnification with Respect to Non-Third Party Claims.
In the event that the Indemnified Party asserts that existence
of an Indemnifiable Claim (but excluding claims resulting from the assertion of
liability by third parties), it shall give written notice to the Indemnifying
Party specifying the nature and amount of the claim asserted. If the
Indemnifying Party, within ninety(90) days after receiving the notice from the
Indemnified Party, shall not give written notice to the
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<PAGE>
Indemnified party announcing its intent to contest such assertion of the
Indemnified party, such assertion shall be deemed accepted and the amount of
claim shall be deemed a valid Indemnifiable Claim. During the time period set
forth in the preceding sentence, the Indemnified Party shall cooperate with the
Indemnifying Party in respect of such Claim.
V. Agreement Not Applicable to Environmental Matters.
Notwithstanding anything to the contrary contained in this
Agreement, Article VI of the Asset Purchase Agreement shall govern the rights
and obligations of GM and AAM with respect to all matters related to
Environmental Laws. The environmental condition of the Assets or compliance of
the Assets with Environmental Laws (hereinafter referred to as "Environmental
Matters"), and none of the terms of this Agreement shall be applicable with
respect to any Damages asserted against, resulting to, imposed upon, or incurred
or suffered by GM or AAM, directly or indirectly, as a result of or arising from
Environmental Matters.
VI. Miscellaneous
(a) This Agreement and the obligations of the parties
hereunder shall not be assignable by either party without the prior written
consent of the other party. This Agreement shall be binding upon, and inure to
the benefit of, the parties hereto and their respective heirs, personal
representatives, successors and permitted assigns.
(b) Any notices, statements or other communications required
or permitted hereunder shall be in writing and shall be
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<PAGE>
personally delivered (including courier service) or mailed by certified
first-class mail, postage prepaid, to:
If to AAM:
American Axle & Manufacturing, Inc.
1840 Holbrook Avenue
Detroit, MI 48212
Attention: Richard E. Dauch
with a copy to:
Baker & Hostetler
3200 National City Center
1900 East Ninth Street
Cleveland, OH 44114
Attention: Albert T. Adams
If to GM:
General Motors Corporation
767 Fifth Avenue
New York, NY 10153
Attention: Treasurer
with a copy to:
Office of General Counsel
New Center One Building
3031 West Grand Boulevard
P.O. Box 33122
Detroit, MI 48232
or to such person or persons at such address or addresses as may be designated
by the written notice of the applicable party to the other parties hereunder.
Notice shall be deemed delivered at the time received for personal delivery, or
five (5) business days after mailing when mailed at a United States post office
box or branch office.
(c) This Agreement will be construed and interpreted in
accordance with the internal substantive laws of the State of Michigan without
regard to its conflicts of law rules.
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(d) This Agreement shall be amended only by a written
instrument duly executed and delivered by the party to be bound. No amendment to
this Agreement which increases the obligations of any Party hereunder shall be
effective against any Party unless it has been agreed to in writing by such
Party.
(e) Section headings are for convenience only and will not be
used in the interpretation hereof.
(f) This Agreement may be executed in counterparts, each of
which will be deemed an original but all of which together shall constitute one
and the same document.
(g) AAM and GM each hereby irrevocably consents to the
jurisdiction of the state and Federal courts located in Detroit, Michigan agrees
that any action, suit or proceeding brought by or against GM or AAM hereunder or
with respect hereto may be brought in any court in Michigan, and waives any
objection which it may not or hereafter have to the choice of forum, whether
personal jurisdiction, venue, forum non conveniens or on any other ground. AAM
and GM each hereby irrevocably designates appoints and empowers the Secretary of
State of the State of Michigan to receive for and on behalf of it service of
process in the State of Michigan and further irrevocably consents to the service
of process outside of the territorial jurisdiction of said courts by mailing
copies thereof by registered or certified united States mail, postage prepaid,
to its address as shown in Section (b) hereof with the same effect as if it were
a resident of the State of Michigan and had been lawfully served in such state.
Nothing in this Agreement shall affect the right to service of process in
-11-
<PAGE>
any other manner permitted by law. AAM and GM each further agree that final
judgment against it (after all appeals are exhausted) in any such action or
proceeding shall be conclusive and may be enforced in any other jurisdiction
within or outside the State of Michigan by suit on the judgment, a certified
copy of which shall be conclusive evidence of the fact and the amount of such
judgment.
(h) Unless the context otherwise requires: (i) a term has the
meaning assigned to it; (ii) "or" is not exclusive; (iii) words in the singular
include the plural, and words in the plural include the singular; (iv) "herein,"
"hereof," "hereto" and other words of similar import refer to this Agreement as
a whole and not of any particular Section or other subdivision; and (v) any
gender used in this Agreement shall be bound to include the neuter, masculine
and feminine genders.
(i) To the extent that there is any conflict between the terms
of this Agreement and the Asset Purchase Agreement, the Asset Purchase Agreement
shall control.
IN WITNESS WHEREOF, the parties have executed this
Indemnification Agreement as of the date first above written.
GENERAL MOTORS CORPORATION AMERICAN AXLE & MANUFACTURING
INC.
By: /s/ John H. Monk Jr. By: /s/ Richard E. Dauch
-------------------------- --------------------------
Its: Finance Director Its: President and CEO
------------------------- --------------------------
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<PAGE>
EXECUTION COPY
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AAM MASTER TRUST
POOLING AGREEMENT
Among
AAM RECEIVABLES CORP.
AMERICAN AXLE & MANUFACTURING, INC.
as Servicer
and
THE CHASE MANHATTAN BANK
as Trustee
Dated as of October 29, 1997
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
ARTICLE I
<S> <C>
Page
Definitions..............................................1
SECTION 1.01. Definitions...............................................................................1
SECTION 1.02. Other Definitional Provisions............................................................30
ARTICLE II
Conveyance of Receivables;
Representations, Warranties and Covenants..............................31
SECTION 2.01. Conveyance of Receivables.............................................................31
SECTION 2.02. Acceptance by Trustee....................................................................34
SECTION 2.03. Representations and Warranties
of the Company Relating to
the Company................................................................35
SECTION 2.04. Representations and Warranties
of the Company Relating to the
Receivables................................................................39
SECTION 2.05. Adjustment Payment for Ineligible
Receivables................................................................40
SECTION 2.06. Purchase of Investor
Certificateholders' Interest in Trust
Portfolio..................................................................42
SECTION 2.07. Affirmative Covenants of the Company.....................................................43
SECTION 2.08. Negative Covenants of the Company........................................................48
ARTICLE III
Rights of Holders and
Allocation and Application of Collections..............................52
SECTION 3.01. Establishment of Collection
Account; Certain Allocations...............................................52
ARTICLE IV
ARTICLE IV IS RESERVED
AND MAY BE SPECIFIED IN ANY SUPPLEMENT
WITH RESPECT TO THE SERIES RELATING THERETO..............................58
</TABLE>
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<TABLE>
<CAPTION>
TOC Pooling Agreement Contents, p. ii
Page
ARTICLE V
<S> <C>
The Investor Certificates and
Exchangeable Company Interest..................................................58
SECTION 5.01. The Investor Certificates................................................................58
SECTION 5.02. Authentication of Investor Certificates..................................................59
SECTION 5.03. Registration of Transfer and Exchange of
Investor Certificates......................................................60
SECTION 5.04. Mutilated, Destroyed, Lost or
Stolen Investor Certificates...............................................62
SECTION 5.05. Persons Deemed Owners....................................................................63
SECTION 5.06. Appointment of Paying Agent..............................................................63
SECTION 5.07. Access to List of Investor
Certificateholders' Names
and Addresses..............................................................65
SECTION 5.08. Authenticating Agent.....................................................................65
SECTION 5.09. Tax Treatment............................................................................68
SECTION 5.10. Exchangeable Company Interest............................................................68
SECTION 5.11. Book-Entry Certificates..................................................................73
SECTION 5.12. Notices to Clearing Agency...............................................................74
SECTION 5.13. Definitive Certificates..................................................................74
ARTICLE VI
Other Matters Relating to the Company................................75
SECTION 6.01. Liability of the Company.................................................................75
SECTION 6.02. Limitation on Liability of the Company...................................................75
ARTICLE VII
Early Amortization Events......................................76
SECTION 7.01. Early Amortization Events................................................................76
SECTION 7.02. Additional Rights upon the
Occurrence of Certain Events...............................................78
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOC Pooling Agreement Contents, p. iii
Page
ARTICLE VIII
<S> <C>
The Trustee.............................................79
SECTION 8.01. Duties of Trustee........................................................................79
SECTION 8.02. Rights of the Trustee....................................................................82
SECTION 8.03. Trustee Not Liable for Recitals..........................................................84
SECTION 8.04. Trustee May Own Investor Certificates....................................................85
SECTION 8.05. Trustee's Fees and Expenses..............................................................85
SECTION 8.06. Eligibility Requirements for Trustee.....................................................86
SECTION 8.07. Resignation or Removal of Trustee........................................................86
SECTION 8.08. Successor Trustee........................................................................87
SECTION 8.09. Merger or Consolidation of Trustee.......................................................88
SECTION 8.10. Appointment of Co-Trustee or Separate
Trustee....................................................................88
SECTION 8.11. Tax Returns..............................................................................90
SECTION 8.12. Trustee May Enforce Claims Without
Possession of Investor Certificates........................................91
SECTION 8.13. Suits for Enforcement....................................................................91
SECTION 8.14. Rights of Investor Certificateholders
To Direct Trustee..........................................................91
SECTION 8.15. Representations and Warranties
of Trustee.................................................................91
SECTION 8.16. Maintenance of Office or Agency..........................................................92
SECTION 8.17. Limitation of Liability..................................................................93
ARTICLE IX
Termination.............................................93
SECTION 9.01. Termination of Trust.....................................................................93
SECTION 9.02. Optional Purchase and Final Termination
Date of Investor Certificates of Any
Series.....................................................................94
SECTION 9.03. Final Payment with Respect to Any Series..............................................96
SECTION 9.04. Company's Termination Rights.............................................................97
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOC Pooling Agreement Contents, p. iv
Page
ARTICLE X
<S> <C>
Miscellaneous Provisions.......................................98
SECTION 10.01. Amendment...............................................................................98
SECTION 10.02. Protection of Right, Title and
Interest to Trust........................................................100
SECTION 10.03. Limitation on Rights of Holders........................................................100
SECTION 10.04. Governing Law..........................................................................101
SECTION 10.05. Notices................................................................................101
SECTION 10.06. Severability of Provisions.............................................................102
SECTION 10.07. Assignment.............................................................................102
SECTION 10.08. Investor Certificates Nonassessable
and Fully Paid...........................................................102
SECTION 10.09. Further Assurances.....................................................................103
SECTION 10.10. No Waiver; Cumulative Remedies.........................................................103
SECTION 10.11. Counterparts...........................................................................103
SECTION 10.12. Third-Party Beneficiaries..............................................................103
SECTION 10.13. Actions by Investor Certificateholders.................................................103
SECTION 10.14. Merger and Integration.................................................................104
SECTION 10.15. Headings. .............................................................................104
SECTION 10.16. Construction of Agreement..............................................................104
SECTION 10.17. No Setoff..............................................................................104
SECTION 10.18. No Bankruptcy Petition.................................................................105
SECTION 10.19. Limitation of Liability................................................................105
SECTION 10.20. Certain Information....................................................................106
EXHIBITS
Exhibit A Form of Lockbox Agreement
Exhibit B Form of Annual Opinion of Counsel
Exhibit C Internal Operating Procedures
Memorandum
SCHEDULES
Schedule 1 Receivables
Schedule 2 Identification of Trust Accounts
Schedule 3 Location of Chief Executive Office of
the Company
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOC Pooling Agreement Contents, p. v
Page
APPENDICES
<S> <C>
Appendix A Description of Servicer Site Review
Procedures
Description of Standby Liquidation
Appendix B System
</TABLE>
<PAGE>
POOLING AGREEMENT dated as of October 29,
1997, among AAM RECEIVABLES CORP., a Delaware
corporation (the "Company"); AMERICAN AXLE &
MANUFACTURING, INC., a Delaware corporation ("AAM",
in its capacity as servicer, the "Servicer"); and
THE CHASE MANHATTAN BANK, a New York banking
corporation, not in its individual capacity, but
solely as trustee (in such capacity, the
"Trustee").
W I T N E S S E T H :
WHEREAS as of the date hereof, (i) the Company, the Seller
and the Servicer are entering into a Receivables Sale Agreement (as amended,
supplemented or otherwise modified from time to time thereafter, the
"Receivables Sale Agreement") and (ii) the Company, the Servicer and the
Trustee are entering into a Servicing Agreement (as amended, supplemented or
otherwise modified from time to time thereafter, the "Servicing Agreement");
WHEREAS, the parties hereto wish to enter into this
Agreement in order to create a master trust to which the Company would
transfer all its right, title and interest in, to and under the Receivables
and other Trust Assets then or thereafter owned by the Company, or in which
the Company has an interest, and such master trust shall, from time to time at
the direction of the Company, issue one or more Series of Investor
Certificates, representing interests in the Receivables and such other Trust
Assets as specified herein and in the Supplement related to such Series;
<PAGE>
2
Pooling Agreement
NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, the parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Definitions. Whenever used in
this Agreement, the following words and phrases shall
have the following meanings:
"Accounts" shall have the meaning specified in
subsection 2.01(a)(vi) of this Agreement.
"Adjusted Invested Amount" shall mean, with respect to any
Outstanding Series, the definition assigned to such term in the related
Supplement.
"Adjustment Payments" shall mean the collective reference to
payments of Transfer Deposit Amounts and Cash Dilution Payments.
"Affiliate" shall mean, with respect to any specified
Person, any other Person which, directly or indirectly, is in control of, is
controlled by, or is under common control with, such specified Person. For
purposes of this definition, "control" of a Person means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of
voting securities or otherwise, and the terms "controlling" and "controlled"
have meanings correlative to the foregoing.
"Agent" shall mean, with respect to any Series, the Person,
if any, so designated in the related Supplement.
"Aggregate Adjusted Invested Amount" shall mean, with
respect to any date of determination, the sum of the Adjusted Invested Amounts
with respect to all Outstanding Series on such date of determination.
"Aggregate Allocated Receivables Amount" shall mean, with
respect to any date of determination, the sum of the Allocated Receivables
Amounts with respect to all Outstanding Series on such date of determination.
<PAGE>
3
Pooling Agreement
"Aggregate Daily Collections" shall mean, with respect to
any Business Day, the aggregate amount of all Collections deposited into the
Collection Account on such day.
"Aggregate Invested Amount" shall mean, at any date of
determination, the sum of the Invested Amounts with respect to all Outstanding
Series on such date of determination.
"Aggregate Overconcentration Amount" shall mean, with
respect to any date of determination, the sum of the Overconcentration Amounts
of all Eligible Obligors at the end of the preceding Business Day.
"Aggregate Receivables Amount" shall mean, with respect to
any date of determination, (i) the aggregate Principal Amount of all Eligible
Receivables in the Trust at the end of the Business Day immediately preceding
such date minus (ii) the Aggregate Overconcentration Amount
for such date.
"Aggregate Target Receivables Amount" shall mean, with
respect to any date of determination, the sum of the Target Receivables
Amounts with respect to all Outstanding Series on such date of determination.
"Agreement" shall mean this Pooling Agreement and all
amendments hereof and supplements hereto, and including, unless expressly
stated otherwise, each Supplement.
"Allocable Charged-Off Amount" shall have, with respect to
any Series, the meaning specified in subsection 3.01(e) and in any Supplement
for such Series.
"Allocable Recoveries Amount" shall have, with respect to
any Series, the meaning specified in subsection 3.01(e) and in any Supplement
for such Series.
"Allocated Receivables Amount" shall have, with respect to
any Outstanding Series, the meaning specified in the related Supplement for
such Outstanding Series.
"Amortization Period" shall have, with respect to any
Outstanding Series, the definition assigned to such term in the related
Supplement.
"Applicable Insolvency Laws" shall have the
meaning specified in subsection 7.01(a).
<PAGE>
4
Pooling Agreement
"Authorized Newspaper" shall mean a newspaper
with a national circulation.
"Bankruptcy Code" shall mean the United States
Federal Bankruptcy Code, 11 U.S.C. ss.ss. 101-1330, as
amended.
"Board" shall mean the Board of Governors of the Federal
Reserve System of the United States of America.
"Book-Entry Certificates" shall mean certificates evidencing
a beneficial interest in the Investor Certificates, ownership and transfers of
which shall be made through book entries by a Clearing Agency as described in
Section 5.11; provided, however, that after the occurrence of a condition
whereupon book-entry registration and transfer are no longer permitted and
Definitive Certificates are issued to the Certificate Book-Entry Holders, such
Investor Certificates shall no longer be "Book-Entry Certificates".
"Business Day" shall mean any day other than (i) a Saturday
or a Sunday or (ii) another day on which commercial banking institutions or
trust companies in the State of New York or in the city where the Corporate
Trust Office is located, are authorized or obligated by law, executive order
or governmental decree to be closed; provided that, when used in connection
with the calculation of Certificate Rates which are determined by reference to
LIBOR, "Business Day" shall mean any Business Day banks are open for dealings
in dollar deposits in the London interbank market.
"Business Day Received" shall mean, except as otherwise set
forth in the applicable Supplement, (i) with respect to funds deposited in the
Collection Account (a) if funds are deposited in the Collection Account by
1:30 p.m., New York City time, such day of deposit and (b) if funds are
deposited in the Collection Account after 1:30 p.m., New York City time, the
Business Day immediately following such day of deposit and (ii) with respect
to funds deposited in any Lockbox Account (a) if funds are deposited in such
Lockbox Account by the cut-off time established by the related Lockbox
Processor for same-day processing of deposits, such day of deposit and (b) if
funds are deposited in such Lockbox Account after such cut-off time, the
Business Day immediately following such day of deposit.
<PAGE>
5
Pooling Agreement
"Cash Dilution Payment" shall have the meaning specified in
subsection 4.05(a) of the Servicing Agreement.
"Certificate Book-Entry Holder" shall mean, with respect to
a Book-Entry Certificate, the Person who is listed on the books of the
Clearing Agency, or on the books of a Person maintaining an account with such
Clearing Agency, as the beneficial owner of such Book- Entry Certificate
(directly or as an indirect participant, in accordance with the rules of such
Clearing Agency).
"Certificate Rate" shall mean with respect to any Series and
Class of Investor Certificates, the percentage interest rate (or formula on
the basis of which such interest rate shall be determined) stated in the
applicable Supplement.
"Certificate Register" shall mean the register maintained
pursuant to subsection 5.03(a), providing for the registration of the Investor
Certificates and transfers and exchanges thereof.
"Charged-Off Receivables" shall mean, with respect to any
Settlement Period, all Receivables (or portions thereof) which, in accordance
with the Policies of the Seller, have or should have been written off during
such Settlement Period as uncollectible, including, without limitation, the
Receivables of any Obligor which becomes the subject of any voluntary or
involuntary bankruptcy proceeding.
"Class" shall mean, with respect to any Series, any one of
the classes of Investor Certificates of that Series as specified in the
related Supplement.
"Clean-Up Call Repurchase Price" shall have the
meaning set forth in subsection 9.02(a).
"Clearing Agency" shall mean each organization registered as
a "clearing agency" pursuant to Section 17A of the Securities Exchange Act of
1934, as amended.
"Clearing Agency Participant" shall mean a broker, dealer,
bank, other financial institution or other Person for whom from time to time a
Clearing Agency effects book-entry transfers and pledges of securities
deposited with such Clearing Agency.
<PAGE>
6
Pooling Agreement
"Collection Account" shall have the meaning
specified in subsection 3.01(a).
"Collections" shall mean all collections and all amounts
received in respect of the Receivables transferred to the Trust, including
Recoveries, Adjustment Payments, indemnification payments made by the Servicer
or the Company and payments received in respect of Dilution Adjustments,
together with all collections received in respect of the Related Property in
the form of cash, checks, wire transfers or any other form of cash payment,
and all proceeds of Receivables and collections thereof (including, without
limitation, collections constituting an account or general intangible or
evidenced by a note, instrument, letter of credit, security, contract,
security agreement, chattel paper or other evidence of indebtedness or
security, whatever is received upon the sale, exchange, collection or other
disposition of, or any indemnity, warranty or guaranty payable in respect of,
the foregoing and all "proceeds" as defined in Section 9-306 of the UCC as in
effect in the State of New York).
"Company" shall mean AAM Receivables Corp., a
Delaware corporation.
"Company Collection Subaccount" shall have the
meaning specified in subsection 3.01(a).
"Company Exchange" shall have the meaning
specified in subsection 5.10(a).
"Company Repurchase Payment" shall have the
meaning specified in subsection 2.05(b).
"Company Subordinated Obligation" shall mean any payment
obligation or other liability designated as such in any Pooling and Servicing
Agreement, each of which payment obligations and other liabilities shall (i)
be subordinated and subject to the prior payment in full of all Company
Unsubordinated Obligations then due, (ii) be made solely from funds available
to the Company that are not required to be applied to Company Unsubordinated
Obligations then due and (iii) not constitute a general recourse claim against
the Company, but only a claim against the Company to the extent of funds
available to the Company after satisfying all Company Unsubordinated
Obligations then due.
<PAGE>
7
Pooling Agreement
"Company Unsubordinated Obligations" shall mean all payment
obligations and other liabilities of the Company under any Pooling and
Servicing Agreement that are not designated as Company Subordinated
Obligations.
"Contractual Obligation" shall mean, as to any Person, any
provision of any security issued by such Person or of any agreement,
instrument or other undertaking to which such Person is a party or by which it
or any of its property is bound.
"Corporate Trust Office" shall mean the principal office of
the Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of the execution of this Agreement
is located at The Chase Manhattan Bank, 450 W. 33rd Street, 15th Floor, New
York, New York 10001 (Attention of: Structured Finance Services Group).
"Credit Agreement" shall mean the Credit Agreement dated as
of October 27, 1997, among American Axle & Manufacturing of Michigan, Inc.,
the Seller, the lenders named therein, The Chase Manhattan Bank, as
Administrative Agent and Collateral Agent, and Chase Manhattan Bank Delaware,
as Fronting Bank (including any amendments or modifications thereto or
refinancing thereof).
"Credit Enhancer" shall mean, with respect to any
Outstanding Series, that Person, if any, designated as such in the applicable
Supplement.
"Cut-Off Date" shall mean the close of business
on October 24, 1997.
"Daily Report" shall have the meaning specified
in subsection 4.01 of the Servicing Agreement.
"Defaulted Receivable" shall mean any Eligible Receivable
which is unpaid in whole or in part for more than 120 days after its original
due date.
"Definitive Certificates" shall have the
meaning specified in Section 5.11.
"Deposit Date" shall have the meaning specified
in Section 3.01(d).
<PAGE>
8
Pooling Agreement
"Depository" shall mean, with respect to any Series, the
Clearing Agency designated as the "Depository" in the related Supplement.
"Depository Agreement" shall mean, with respect to any
Series, an agreement among the Company, the Trustee and a Clearing Agency, or
a letter of undertaking to a Clearing Agency by the Company and the Trustee,
in each case in a form reasonably satisfactory to the Trustee and the Company.
"Dilution Adjustment" shall mean any payments, rebates,
discounts, refunds or adjustments (including without limitation, as a result
of the application of any special or other discounts or any reconciliations)
of any Receivable, the amount owing for any returns (including, without
limitation, as a result of the return of any defective goods) or cancelations
and the amount of any other reduction of any payment under any Receivable, in
each case granted or made by the Seller to the related Obligor; provided,
however, a "Dilution Adjustment" does not include any Charged-Off Receivable.
"Distribution Date" shall mean, except as otherwise set
forth in the applicable Supplement, the 15th day of the month, or if such 15th
day is not a Business Day, the next succeeding Business Day.
"Dollars", "U.S. Dollars" and "$" shall mean
dollars in lawful currency of the United States of
America.
"Early Amortization Event" shall have, with respect to any
Series, the meaning specified in Section 7.01 of this Agreement (without
taking into account any Supplements) and in any Supplement for such Series.
"Early Amortization Period" shall have, with respect to any
Series, the definition assigned to such term in Section 7.01 of this Agreement
and in any Supplement for such Series.
"Eligible Institution" shall mean a depositary institution
or trust company (which may include the Trustee and its Affiliates) organized
under the laws of the United States of America or any one of the states
thereof or the District of Columbia; provided, however, that at all times (i)
such depositary institution or trust company is a member of the Federal
Deposit
<PAGE>
9
Pooling Agreement
Insurance Corporation, (ii) the certificates of deposit or the unsecured and
uncollateralized debt obligations of such depositary institution or trust
company are rated in one of the two highest long-term or short-term rating
categories by each Rating Agency and (iii) such depositary institution or
trust company has a combined capital and surplus of at least $100,000,000.
"Eligible Investments" shall mean any deposit accounts,
book-entry securities, negotiable instruments or securities represented by
instruments in bearer or registered form which evidence:
(a) direct obligations of, and obligations fully guaranteed
as to timely payment by, the United States of America;
(b) Federal funds, demand deposits, time deposits or
certificates of deposit of any depositary institution or trust company
incorporated under the laws of the United States of America or any state
thereof (or any domestic branch of a foreign bank) and subject to
supervision and examination by federal or state banking or depositary
institution authorities; provided, however, that at the time of the
investment or contractual commitment to invest therein the commercial
paper, certificates of deposit or other short-term unsecured and
uncollateralized debt obligations (other than such obligations the rating
of which is based on the credit of a Person other than such depository
institution or trust company) thereof shall have a credit rating from
each of the Rating Agencies rating such investment in the highest
investment category granted thereby;
(c) commercial paper rated, at the time of the investment or
contractual commitment to invest therein, in the highest rating category
by each Rating Agency rating such commercial paper;
(d) investments in money market funds (including funds for
which the Trustee or any of its Affiliates is investment manager or
adviser) rated in the highest rating category by each Rating Agency
rating such money market fund (provided that, if such Rating Agency is
S&P, such rating shall be AAAm-G);
(e) bankers' acceptances issued by any depository
institution or trust company referred to in clause (b) above;
<PAGE>
10
Pooling Agreement
(f) repurchase obligations with respect to any security that
is a direct obligation of, or fully guaranteed by, the United States of
America or any agency or instrumentality thereof the obligations of which
are backed by the full faith and credit of the United States of America,
in either case entered into with a depository institution or trust
company (acting as principal) described in clause (b) above; or
(g) any other investment upon satisfaction of the Rating
Agency Condition with respect thereto.
"Eligible Obligor" shall mean, as of any date of
determination, each Obligor in respect of a Receivable that satisfies the
following eligibility criteria:
(a) it is "located" (within the meaning of Section
9-103(3)(d) of the UCC as in effect in the State of New York) in the
United States or is a "Designated Obligor" (as defined in the applicable
Supplement);
(b) it is neither a Federal Government Obligor nor a
State/Local Government Obligor;
(c) it is not the Seller or an Affiliate of the
Seller; and
(d) it is either (i) not the subject of any voluntary or
involuntary bankruptcy proceeding or (ii) a Qualifying DIP Obligor;
provided, however, that, if 35% or more of the Principal Amount of
Receivables of an Obligor (measured by the Principal Amount of
Receivables of such Obligor in the Trust) is reported as being aged 121
days or more after the respective due dates of such Receivables as at the
end of the Settlement Period immediately preceding the most recent
Settlement Report Date (commencing with the Settlement Report Date
occurring on December 10, 1997), such Obligor shall not be deemed an
Eligible Obligor until such time as the Servicer furnishes the Rating
Agencies with a report (which may be part of a Daily Report or a Monthly
Settlement Statement) indicating that less than 35% of the Principal
Amount of Receivables of such Obligor then in the Trust are aged 121 days
or more after the respective due dates of such Receivables.
<PAGE>
11
Pooling Agreement
"Eligible Receivable" shall mean, as of any date of
determination, each Receivable owing by an Eligible Obligor in existence as of
such date that satisfies the following eligibility criteria:
(a) it constitutes either (i) an account within the meaning
of Section 9-106 of the UCC of the state the law of which governs the
perfection of the interest granted in it, (ii) an instrument within the
meaning of Section 9-105 of such UCC, which shall be subject to
compliance with the delivery requirement set forth in subsection 2.01(b),
(iii) chattel paper within the meaning of Section 9-105 of such UCC,
which shall be subject to compliance with the delivery requirement set
forth in subsection 2.01(b), or (iv) a general intangible (including to
the extent that such Receivable includes interest, finance charges,
returned check or late charges on sales or similar charges) within the
meaning of Section 9-106 of such UCC;
(b) it is not a Defaulted Receivable of a Designated Obligor
or a Charged-Off Receivable of an Obligor that is not a Designated
Obligor;
(c) the goods related to it shall have been shipped or the
services related to it shall have been performed or in the case of a
Material Receivable, the material or parts shall have been received by
the Seller, or in the case of a Tooling Receivable, the Seller shall have
accrued the amount of such Receivable in accordance with its historical
practices and the rules and guidelines of the Obligor of such Receivable;
(d) it is denominated and payable only in U.S.
Dollars in the United States;
(e) it arose in the ordinary course of business from the
sale of goods, products or services of the Seller or is a Tooling
Receivable or a Material Rebate Receivable and, in each case, it arose in
accordance with the Policies of the Seller;
(f) it does not contravene any applicable law, rule or
regulation and the Seller is not in violation of any law, rule or
regulation in connection with it, in each case which in any way renders
such Receivable unenforceable or would otherwise impair in any material
respect the collectibility of such Receivable;
<PAGE>
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Pooling Agreement
(g) it is not a Receivable with an original repayment term
in excess of 90 days or is a Tooling Receivable or a Material Rebate
Receivable;
(h) it is not a Receivable purchased by the
Seller from any Person;
(i) it is not a Receivable for which the Seller has
established an offsetting specific reserve;
(j) it is not a Receivable in respect of which the Seller
has (i) entered into an arrangement with the Obligor pursuant to which
payment of any portion of the purchase price has been extended or
deferred, whether by means of a promissory note or by any other means, to
a date more than 60 days from the due date or (ii) altered the basis of
the aging from the initial due date for payment such that the final due
date extends to a date more than 60 days from its original invoice date
or (iii) otherwise made any modification except in the ordinary course of
business and consistent with the Policies of the Seller;
(k) all required consents, approvals or authorizations
necessary for the creation and enforceability of such Receivable and the
effective assignment and sale thereof by the Seller to the Company and by
the Company to the Trust shall have been obtained with respect to the
Receivable;
(l) the Seller is not in default in any material respect
under the terms of the contract, if any, from which such Receivable
arose;
(m) all right, title and interest in it has
been validly sold by the Seller to the Company pursuant
to the Receivables Sales Agreement;
(n) the Company or the Trust will have legal and beneficial
ownership therein free and clear of all Liens other than such Liens
described in clauses (i) and/or (iv) of the definition of Permitted Liens
and such Receivable has been the subject of either a valid transfer from
the Company to the Trust or, alternatively, the grant of a first priority
perfected security interest therein to the Trust free and clear of all
Liens other than such Liens described in clauses (i), (iii) and/or (iv)
of the definition of Permitted Liens;
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13
Pooling Agreement
(o) it represents an enforceable obligation of the related
Obligor to pay the full Principal Amount thereof and it is not subject to
any dispute in whole or in part or to any asserted offset, counterclaim
or defense;
(p) it is at all times the legal, valid and binding
obligation of the Obligor thereon, enforceable against such Obligor in
accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors' rights generally and by
general equitable principles (whether enforcement is sought by
proceedings in equity or law);
(q) as of the related Receivables Purchase Date, neither the
Company nor the Seller has (i) taken any action in contravention of the
terms of any Transaction Document or (ii) failed to take any action
required to be taken by the terms of any Transaction Document that, in
either case, is likely to impair the rights therein of the Trustee or
Investor Certificateholders with respect to such Receivable;
(r) each of the representations and warranties with respect
to such Receivable made in the Receivables Sale Agreement by the Seller
is true and correct in all material respects; and
(s) at the time such Receivable was sold by the Seller to
the Company under the Receivables Sale Agreement, no event described in
subsection 7.01(d) of the Receivables Sale Agreement (without giving
effect to any requirement as to the passage of time) had occurred with
respect to the Seller;
provided that a Receivable which would otherwise not qualify as an Eligible
Receivable because of a failure to comply with clause (j) or (o) above shall
constitute an Eligible Receivable to the extent of the Principal Amount of
such Receivable minus the amount of such Receivable which fails to comply with
such clause (j) or (o).
"Eligible Successor Servicer" shall mean a Person which, at
the time of its appointment as Servicer (i) is legally qualified and has the
corporate power and authority to service the Receivables transferred to the
Trust in accordance with the terms of the Servicing Agreement, (ii) has
demonstrated the ability to service a
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14
Pooling Agreement
portfolio of similar receivables in accordance with reasonable standards of
skill and care and (iii) has a combined capital and surplus of at least
$5,000,000.
"Enhancement" shall mean, with respect to any Series (i) the
funds on deposit in or credited to any bank account (or subaccount thereof) of
the Trust, (ii) any surety arrangement, any letter of credit, guaranteed rate
agreement, maturity guaranty facility, tax protection agreement, interest rate
swap, currency swap or other contract, agreement or arrangement, in each case
for the benefit of any Investor Certificateholders of such Series, as
designated in the applicable Supplement and (iii) the subordination of one
Class of Investor Certificates in a Series to another Class in such Series or
the subordination of any Interest to the Investor Certificates of such Series.
"ERISA" shall mean the Employee Retirement Income Security
Act of 1974, as amended.
"Exchange Date" shall have the meaning, with respect to any
Series issued pursuant to an Exchange, specified in subsection 5.10(a).
"Exchange Notice" shall have the meaning, with respect to
any Series issued pursuant to an Exchange, specified in subsection 5.10(a).
"Exchange Register" shall have the meaning
specified in subsection 5.10(a).
"Exchangeable Company Interest" shall have the meaning
specified in subsection 3.01(b) and shall be exchangeable as provided in
Section 5.10.
"Federal Government Obligor" shall mean the United States
Federal government or any subdivision thereof or any agency, department or
instrumentality thereof.
"Force Majeure Delay" shall mean, with respect to the
Servicer, any cause or event which is beyond the control and not due to the
negligence of the Servicer which delays, prevents or prohibits the Servicer's
delivery of Daily Reports and/or Monthly Settlement Statements, including,
without limitation, acts of God or the elements and fire, but shall not
include strikes; provided that no such cause or event shall be deemed to be a
Force Majeure Delay unless the Servicer shall have
<PAGE>
15
Pooling Agreement
given the Company and the Trustee written notice thereof as soon as reasonably
possible after the beginning of such delay.
"Ford" shall mean Ford Motor Company, a
Delaware corporation, and any of its Subsidiaries.
"Fractional Undivided Interest" shall mean a fractional
undivided interest, which, with respect to any Investor Certificate, can be
expressed as a percentage of the interest in the Trust Assets represented by
the Series or Class in which it was issued by taking the percentage equivalent
of a fraction the numerator of which is the principal amount of such Investor
Certificate and the denominator of which is the aggregate principal amount of
all Investor Certificates of such Series or Class.
"GAAP" shall mean generally accepted accounting principles
in the United States of America as in effect from time to time.
"General Opinion" shall mean, with respect to any action, an
Opinion of Counsel to the effect that (i) such action has been duly authorized
by all necessary corporate action on the part of the Servicer, the Seller or
the Company, as the case may be, and (ii) any agreement executed in connection
with such action constitutes a legal, valid and binding obligation of the
Servicer, the Seller or the Company, as the case may be, enforceable in
accordance with the terms thereof, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws now or hereinafter in effect, affecting the enforcement of creditors'
rights and except as such enforceability may be limited by general principles
of equity (whether considered in a proceeding at law or in equity).
"GM" shall mean General Motors Corporation, a
Delaware corporation, and any of its Subsidiaries.
"GM Agreements" shall mean (i) the Component Supply
Agreement, as amended, dated as of February 29, 1994, between the Servicer and
General Motors Corporation, (ii) the GMCL Purchase Order Agreement, as
amended, dated as of February 17, 1994, and effective on March 1, 1994,
between the Servicer and General Motors of Canada Limited ("GMCL"), (iii) the
Amended and Restated Memorandum of Understanding dated as of September 22,
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16
Pooling Agreement
1997, as amended pursuant to an Extension Agreement dated as of September 22,
1997 between the Servicer and General Motors Corporation, (iv) the letter
agreement, dated as of February 20, 1996, between the Servicer and General
Motors Corporation and (v) any agreements entered into between the Servicer
and General Motors or GMCL succeeding or replacing the agreements in clauses
(i) and (ii), including "Lifetime Program Contracts".
"Government Obligor" shall mean any Federal
Government Obligor or any State/Local Government Obligor.
"Governmental Authority" shall mean any nation or
government, any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.
"Holders" shall mean the collective reference to the
Investor Certificateholders, the holders of Subordinated Company Interests and
the holders of the Exchangeable Company Interest.
"Indebtedness" shall mean, with respect to any Person at any
date, (a) all indebtedness of such Person for borrowed money, (b) any
obligation owed for the deferred purchase price of property or services which
purchase price is evidenced by a note or similar written instrument, (c) notes
payable and drafts accepted representing extensions of credit whether or not
representing obligations for borrowed money, (d) that portion of obligations
of such Person under capital leases which is properly classified as a
liability on a balance sheet in conformity with GAAP and (e) all liabilities
of the type described in the foregoing clauses (a) through (d) secured by any
Lien on any property owned by such Person even though such Person has not
assumed or otherwise become liable for the payment thereof.
"Indemnified Person" shall have the meaning
specified in Section 10.19.
"Independent Public Accountants" shall mean, with respect to
any Person, any independent certified public accountants of nationally
recognized standing which constitute one of the accounting firms commonly
referred to as the "big six" accounting firms (or any successor thereto);
provided that such firm is independent with respect to such Person within the
<PAGE>
17
Pooling Agreement
meaning of Rule 2-01(b) of Regulation S-X under the
Securities Act.
"Ineligible Receivable" shall have the meaning
specified in subsection 2.05(a).
"Initial Closing Date" shall mean October 29,
1997.
"Initial Invested Amount" shall have, with respect to any
Outstanding Series, the meaning specified in the related Supplement for such
Series.
"Insolvency Event" shall mean the occurrence of any one or
more of the Early Amortization Events specified in paragraph (a) of Section
7.01.
"Interest" shall mean any interest in the Trust Assets
issued pursuant to the Agreement or any Supplement.
"Internal Operating Procedures Memorandum" shall mean the
internal operating procedures memorandum prepared by the Trustee as set forth
in Exhibit C hereto.
"Internal Revenue Code" shall mean the Internal Revenue Code
of 1986, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time.
"Invested Amount" shall have, with respect to any
Outstanding Series, the meaning specified in the related Supplement for such
Series.
"Invested Percentage" shall have, with respect to any
Outstanding Series, the meaning specified in the related Supplement for such
Series.
"Investment" shall mean the making by the Company or the
Seller, as the case may be, of any advance, loan, extension of credit or
capital contribution to, the purchase of any stock, bonds, notes, debentures
or other securities of or any assets constituting a business unit of, or the
making by the Company or the Seller, as the case may be, of any other
investment in, any Person.
"Investment Earnings" shall have the meaning
specified in subsection 3.01(c).
<PAGE>
18
Pooling Agreement
"Investor Certificateholder" shall mean the
holder of record of, or the bearer of, an Investor
Certificate.
"Investor Certificateholders' Interest" shall
have the meaning specified in subsection 3.01(b).
"Investor Certificates" shall mean the certificates executed
by the Company and authenticated by or on behalf of the Trustee, substantially
in the form attached to the applicable Supplement, but shall not include the
Exchangeable Company Interest, any Subordinated Company Interest or any other
Interest held by the Company.
"Issuance Date" shall mean, with respect to any Series, the
date of issuance of such Series, or the date of any increase to the Invested
Amount of such Series, as specified in the related Supplement.
"Lien" shall mean, with respect to any asset, (a) any
mortgage, deed of trust, lien, pledge, encumbrance, charge or security
interest in or on such asset, (b) the interest of a vendor or a lessor under
any conditional sale agreement, capital lease or title retention agreement
relating to such asset and (c) in the case of securities, any purchase option,
call or other similar right of a third party with respect to such securities;
provided, however, that if a lien is imposed under Section 412(n) of the
Internal Revenue Code or Section 302(f) of ERISA for a failure to make a
required installment or other payment to a plan to which Section 412(n) of the
Internal Revenue Code or Section 302(f) of ERISA applies, then such lien shall
not be treated as a "Lien" from and after the time (a)(i) any Person who is
obligated to make such payment pays to such plan the amount of such lien
determined under Section 412(n)(3) of the Internal Revenue Code or Section
302(f)(3) of ERISA, as the case may be, and provides to the Trustee, the
Rating Agencies and any Agent a written statement of the amount of such lien
together with written evidence of payment of such amount, or (ii) such lien
expires pursuant to Section 412(n)(4)(B) of the Internal Revenue Code or
Section 302(f)(4)(B) of ERISA and (b) the Rating Agency Condition shall have
been satisfied.
"Lien Creation" shall mean the creation,
incurrence, assumption or suffering to exist by the
Company or the Seller, as the case may be, of any Lien
<PAGE>
19
Pooling Agreement
upon the Receivables, Related Property or the proceeds
thereof.
"Lockbox" shall mean the post office boxes and accounts
listed on Schedule 2 to the Receivables Sale Agreement to which the Obligors
are instructed to remit payments on the Receivables and/or such other post
office boxes as may be established pursuant to Section 2.03 of the Servicing
Agreement.
"Lockbox Account" shall mean the intervening account or
accounts used by a Lockbox Processor for deposit of funds received in a
Lockbox prior to their transfer to the Collection Account.
"Lockbox Agreement" shall mean a lockbox agreement
substantially in the form set forth as Exhibit A, as the same may be amended
from time to time in accordance with the Transaction Documents.
"Lockbox Processor" shall mean the depositary institution or
processing company (which may be the Trustee) that processes payments on the
Receivables sent by the Obligors thereon forwarded to a Lockbox.
"Margin Stock" shall have the meaning given to such term in
Regulation U of the Board.
"Material Adverse Effect" shall mean, when used (i) with
respect to the Seller, a materially adverse effect on the Receivables, taken
as a whole, (ii) with respect to the Seller or the Servicer, (a) a material
impairment of the ability of the Seller or the Servicer, as the case may be,
to perform its obligations under the Transaction Documents, (b) a material
impairment of the validity or enforceability of any of the Transaction
Documents against the Seller or the Servicer, (c) a material impairment of the
collectibility of the Receivables or (d) a material impairment of the
interests, rights or remedies of the Trustee or the Investor
Certificateholders under or with respect to the Transaction Documents or (iii)
with respect to the Company, (a) a materially adverse effect on the business,
operations, property or condition (financial or otherwise) of the Company, (b)
a material impairment of the ability of the Company to perform its obligations
under any Transaction Document to which it is a party, (c) a material
impairment of the validity or enforceability of any of the Transaction
Documents against the Company, (d) a material impairment of the
<PAGE>
20
Pooling Agreement
collectibility of the Receivables or (e) a material impairment of the
interests, rights or remedies of the Trustee or the Investor
Certificateholders under or with respect to the Transaction Documents.
"Material Rebate Receivable" shall mean any Receivable
described in clause (y) of the definition thereof.
"Monthly Servicing Fee" shall have the meaning specified in
subsection 2.05(a) of the Servicing Agreement.
"Monthly Settlement Statement" shall have the meaning
specified in Section 4.02 of the Servicing Agreement.
"1940 Act" shall mean the Investment Company
Act of 1940, as amended.
"Obligor" shall mean, with respect to any Receivable, the
party obligated to make payments with respect to such Receivable, including
any guarantor thereof.
"Officer's Certificate" shall mean, with respect to any
Person, unless otherwise specified in this Agreement, a certificate signed by
the Chairman of the Board, any Vice Chairman of the Board, the Chief Executive
Officer, the President, the Chief Financial Officer, any Vice President
(however denominated) or the Treasurer of such Person (or an officer holding
an office with equivalent or more senior responsibilities).
"Opinion of Counsel" shall mean a written opinion or
opinions of one or more counsel (who may be internal counsel) to the Company
or the Servicer, designated by the Company or the Servicer, as the case may
be, that is reasonably acceptable to the Trustee.
"Optional Repurchase Percentage" shall have, with respect to
any Series, the meaning specified in the related Supplement for such Series.
"Optional Termination Notice" shall have, with respect to
any Series, the meaning specified in the related Supplement for such Series.
"Outstanding Series" shall mean, at any time, a
Series issued pursuant to an effective Supplement for
<PAGE>
21
Pooling Agreement
which the Series Termination Date for such Series has not
occurred.
"Overconcentration Amount" shall mean, at any date with
respect to an Eligible Obligor, the Principal Amount of otherwise Eligible
Receivables due from such Obligor which, expressed as a percentage of the
Principal Amount of all Eligible Receivables in the Trust at such date,
exceeds the percentage set forth below for the applicable ratings category of
that Obligor (or such larger percentage upon satisfaction of the Rating Agency
Condition);
Minimum Rating
S&P Percentage
- --- ----------
A-1+ or AA- 15.0%
A-1 or A+ 15.0%
A-2 or BBB+ 12.0%
A-3 or BBB- 6.0%
Less than A-3 or
BBB-/Not rated 3.0%
; provided, however, that all Eligible Obligors that are Affiliates of each
other shall be deemed to be a single Eligible Obligor to the extent the
Servicer has actual knowledge of the affiliation and in that case, the
applicable debt rating for such group of Obligors shall be the debt rating of
the ultimate parent of the group; provided further that the Overconcentration
Amount for Ford and GM shall be zero.
If S&P issues no short-term rating with respect to such
Obligor (or such ultimate parent, as the case may be), then the percentage
applicable to such Obligor (or such ultimate parent, as the case may be) shall
be the percentage associated with the categories "Less than A-3 or BBB-/Not
rated". The ratings specified in the table are minimums for each percentage
category, so that a rating not shown in the table falls in the category
associated with the highest rating shown in the table that is lower than that
rating.
"Paying Agent" shall mean any paying agent and co-paying
agent appointed pursuant to Section 5.06 and, unless otherwise specified in
the related Supplement of
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22
Pooling Agreement
any Outstanding Series and with respect to such Series, shall initially be The
Chase Manhattan Bank, as Trustee.
"Permitted Liens" shall mean, at any time, for
any Person:
(i) Liens created pursuant to this Agreement or
the Receivables Sale Agreement;
(ii) Liens for taxes, assessments or other governmental
charges or levies not yet due or which are being contested in good faith
by appropriate proceedings by such Person and with respect to which
reserves in conformity with GAAP have been provided on the books of such
Person;
(iii) unasserted rights of set-off, counterclaim or other
defenses with respect to such Receivable; and
(iv) any other Liens securing obligations not in excess of
$50,000 in the aggregate at any one time outstanding.
"Person" shall mean any individual, partnership,
corporation, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Authority or other entity of whatever
nature.
"Policies" shall mean, with respect to the Seller, the
credit and collection policies of the Seller, copies of which have been
previously delivered to the Trustee, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with the Transaction
Documents.
"Pooling and Servicing Agreements" shall have
the meaning specified in subsection 10.01(a).
"Potential Early Amortization Event" shall mean an event
which, with the giving of notice and/or the lapse of time, would constitute an
Early Amortization Event hereunder or under any Supplement.
"Potential Servicer Default" shall mean an event which, with
the giving of notice and/or the lapse of time, would constitute a Servicer
Default hereunder or under any Supplement.
<PAGE>
23
Pooling Agreement
"Prepayment Request" shall have, with respect to any Series,
the meaning specified in the related Supplement.
"Principal Amount" shall mean, with respect to
any Receivable, the amount due thereunder.
"Principal Terms" shall have the meaning, with respect to
any Series issued pursuant to a Company Exchange, specified in subsection
5.10(c).
"Program Costs" shall have, with respect to any Series, the
meaning specified in the related Supplement for such Series.
"Publication Date" shall have the meaning
specified in subsection 7.02(a).
"Qualifying DIP Obligor" shall mean, as of any date of
determination, any Obligor satisfying the following criteria: (i) it is a
"debtor in possession", for which no trustee or examiner has been appointed,
and no application is pending for the appointment of a trustee or examiner, in
a case under Chapter 11 of the Bankruptcy Code in which no motion has been
made for an order liquidating all or any substantial portion of such debtor's
assets and no motion has been made for the conversion of such case to a case
under Chapter 7 of the Bankruptcy Code, (ii) in the case of any proposed
Qualifying DIP Obligor whose Receivables would, if included in the Trust
Assets, account for 1% or more of the aggregate Principal Amount of all
Receivables included in the Trust, each Agent has been given notice at least
five Business Days prior to any transfer of Receivables owing by such Obligor
to the Trust of the proposed inclusion of such Obligor as an Eligible Obligor
on the basis of its being a Qualifying DIP Obligor, (iii) no Agent has, in the
exercise of its reasonable discretion, given notice to the Company and the
Servicer that such Obligor shall not be included as an Eligible Obligor and
(iv) it has obtained the approval of a bankruptcy court to make payment on the
Receivables owing by it.
"Rating Agency" shall mean, with respect to each Outstanding
Series, any rating agency or agencies designated as such in the related
Supplement; provided that (i) in the event that no Outstanding Series has been
rated, then for purposes of the definitions of "Eligible Institution" and
"Eligible Investments", "Rating Agency"
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24
Pooling Agreement
shall mean S&P; (ii) except as provided in (i), in the event no Outstanding
Series has been rated, any reference to "Rating Agency" or the "Rating
Agencies" shall be deemed to have been deleted herefrom, except that
references to the term "Rating Agency Condition" shall not be deemed deleted,
but shall be modified as set forth under the definition of such term.
"Rating Agency Condition" shall mean, with respect to any
action, that each Rating Agency shall have notified the Company, the Servicer,
any Agent and the Trustee in writing that such action will not result in a
reduction or withdrawal of the rating of any Outstanding Series or any Class
of any such Outstanding Series with respect to which it is a Rating Agency;
provided that in the event that no Outstanding Series has been rated, any
reference to a "Rating Agency Condition" shall be deemed to be a reference to
the prior written consent of the Agent with respect to such action.
"Receivable" shall mean the indebtedness and payment
obligations of any Person to the Seller (including, without limitation,
obligations constituting an account or general intangible evidenced by a note,
instrument, contract, security agreement, chattel paper or other evidence of
indebtedness or security and whether or not any invoice or other bill has been
rendered by the Seller or any other Person) arising from (x) a sale of
merchandise or services by the Seller (including, without limitation, any
right to payment for goods sold or for services rendered), (y) an obligation
of any Person to provide rebates to the Seller with respect to, or to
reimburse the Seller for, a portion of the costs of materials and parts to be
used in the manufacturing of products for such Person or its affiliates, or
(z) an obligation of any Person to pay for tooling or equipment purchased or
built by the Seller for the purpose of manufacturing products for such Person,
in each case including the right to payment of any interest, sales taxes,
finance charges, returned check or late charges and other obligations of such
Person with respect thereto; provided that any Tooling Receivable that is not
generated as part of the GMT 800 program or any other program providing for
periodic payments to the Seller shall not constitute a "Receivable" until the
Production Part Approval Process (PPAP) has been completed with respect to the
tooling giving rise to such Tooling Receivable; provided further that in no
event shall any intercompany or intracompany obligation owed to the
<PAGE>
25
Pooling Agreement
Seller by any of its Subsidiaries, divisions or other operating units
constitute a "Receivable".
"Receivables Purchase Date" shall mean, with respect to any
Receivable, the Business Day on which the Company purchases such Receivable
from the Seller and transfers such Receivable to the Trust.
"Receivables Sale Agreement" shall mean the Receivables Sale
Agreement, dated as of the date hereof, among the Seller, the Servicer and the
Company, as amended, supplemented or otherwise modified from time to time in
accordance with the Transaction Documents.
"Record Date" shall mean, with respect to any Series, the
date specified as such in the applicable Supplement.
"Recoveries" shall mean all amounts collected (net of
out-of-pocket costs of collection) in respect of Charged-Off Receivables.
"Regulation G" shall mean Regulation G of the Board as from
time to time in effect and all official rulings and interpretations thereunder
or thereof.
"Regulation U" shall mean Regulation U of the Board as from
time to time in effect and all official rulings and interpretations thereunder
or thereof.
"Regulation X" shall mean Regulation X of the Board as from
time to time in effect and all official rulings and interpretations thereunder
or thereof.
"Related Property" shall mean, with respect to
each Receivable:
(a) all of the Seller's interest in the goods (including
returned goods), if any, relating to the sale which gave rise to such
Receivable;
(b) all other security interests or Liens, and the Seller's
interest in the property subject thereto, from time to time purporting to
secure payment of such Receivable, whether pursuant to the contract
related to such Receivable or otherwise, together with all financing
statements signed by an Obligor describing any collateral securing such
Receivable; and
<PAGE>
26
Pooling Agreement
(c) all guarantees, insurance, letters of credit and other
agreements or arrangements of whatever character from time to time
supporting or securing payment of such Receivable whether pursuant to the
contract related to such Receivable or otherwise;
including in the case of clauses (b) and (c), without limitation, pursuant to
any obligations evidenced by a note, instrument, contract, security agreement,
chattel paper, or other evidence of indebtedness or security.
"Reported Day" shall have the meaning specified in
subsection 4.01(a) of the Servicing Agreement.
"Repurchase Obligation Date" shall have the meaning specified
in subsection 2.05(a).
"Requirement of Law" for any Person shall mean the
certificate of incorporation and by-laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation, or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or
to which such Person or any of its property is subject.
"Responsible Officer" shall mean (i) when used with respect
to the Trustee, any officer within the Corporate Trust Office of the Trustee
including any Vice President, any Assistant Vice President, Trust Officer or
Assistant Trust Officer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and (ii) when used with respect to any other Person, the Chairman of
the Board, any Vice Chairman of the Board, the Chief Executive Officer, the
President, the Chief Financial Officer, any Vice President or the Treasurer of
such Person.
"Restricted Payments" shall have the meaning assigned in
subsection 2.08(m).
"Revolving Period" shall have, with respect to any
Outstanding Series, the definition assigned to such term in the related
Supplement.
"S&P" shall mean Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.
or any successor thereto.
<PAGE>
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Pooling Agreement
"Securities Act" shall mean the Securities Act of 1933, as
amended.
"Seller" shall mean American Axle & Manufacturing, Inc.
"Seller Note" shall have the meaning specified in Section
8.01 of the Receivables Sale Agreement.
"Series" shall mean any series of Investor Certificates and
any related Subordinated Company Interest, the terms of which are set forth in a
Supplement.
"Series Account" shall mean any deposit, trust, escrow,
reserve or similar account maintained for the benefit of the Investor
Certificateholders and the holders of the related Subordinated Company Interest
of any Series or Class, as specified in any Supplement.
"Series Collection Subaccount" shall have the meaning
specified in subsection 3.01(a).
"Series Collection Sub-subaccount" shall have the meaning
specified in subsection 3.01(a).
"Series Non-Principal Collection Sub- subaccount" shall have
the meaning specified in subsection 3.01(a).
"Series Principal Collection Sub-subaccount" shall have the
meaning specified in subsection 3.01(a).
"Series Termination Date" shall have, with respect to any
Outstanding Series, the meaning specified in the related Supplement for such
Series.
"Service Transfer" shall have the meaning specified in
Section 6.01 of the Servicing Agreement.
"Servicer" shall initially mean American Axle & Manufacturing
Inc., a Delaware corporation, and, after any Service Transfer, the Successor
Servicer.
"Servicer Default" shall have, with respect to any Series,
the meaning specified in Section 6.01 of the Servicing Agreement and, if
applicable, as supplemented by the related Supplement for such Series.
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Pooling Agreement
"Servicer Site Review" shall mean a review performed by the
Trustee of the servicing operations of the Servicer's central site locations,
as described in Appendix A.
"Servicing Agreement" shall have the meaning specified in the
recitals hereto.
"Servicing Fee" shall have the meaning specified in
subsection 2.05(a) of the Servicing Agreement.
"Servicing Fee Percentage" shall mean 1% per annum.
"Settlement Period" shall mean each fiscal month of the
Servicer.
"Settlement Report Date" shall mean, except as otherwise set
forth in the applicable Supplement, the 10th day of each calendar month or, if
such 10th day is not a Business Day, the next succeeding Business Day.
"Special Allocation Settlement Report Date" shall have the
meaning specified in subsection 3.01(e).
"Specified Bankruptcy Opinion Provisions" shall mean the
factual assumptions (including those contained in the factual certificate
referred to therein) and the actions to be taken by the Seller or the Company,
in each case as specified in the legal opinion of Simpson Thacher & Bartlett
relating to certain bankruptcy matters delivered on each Issuance Date.
"Standby Liquidation System" shall mean a system by which
the Trustee will receive and store electronic information regarding Receivables
from the Servicer which may be utilized in the event of a liquidation of the
Receivables to be carried out by the Trustee, as described in Appendix B.
"State/Local Government Obligor" shall mean any state or
local government or any subdivision thereof or any agency, department, or
instrumentality thereof.
"Subordinated Interest Amount" shall have, with respect to
any Outstanding Series, the meaning specified in the related Supplement for
such Outstanding Series.
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Pooling Agreement
"Subordinated Company Interest" shall mean any Interest
issued to the Company pursuant to the Supplement for any Series which
represents an interest in the Trust Assets which is subordinated to the
Investor Certificates of such Series.
"Subordinated Interest Register" shall have the meaning
specified in subsection 5.10(d).
"Subsidiary" shall mean, as to any Person, a corporation,
partnership or other entity of which shares of stock or other ownership
interests having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency) to
elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person; provided that the Company shall
not constitute a "Subsidiary" of AAM.
"Successor Servicer" shall have the meaning specified in
Section 6.02 of the Servicing Agreement.
"Supplement" shall mean, with respect to any Series, a
supplement to this Agreement complying with the terms of Section 5.10(c),
executed in conjunction with the issuance of any Series.
"Target Receivables Amount" shall have, with respect to any
Outstanding Series, the meaning specified in the related Supplement for such
Outstanding Series.
"Tax Opinion" shall mean, unless otherwise specified in the
Supplement for any Series with respect to such Series or any Class within such
Series, with respect to any action, an Opinion of Counsel (a) to the effect
that, for United States federal income tax purposes, (i) such action will not
adversely affect the characterization as debt of any Investor Certificates of
any Outstanding Series or Class not retained by the Company and for which the
Trustee has received an Opinion of Counsel that such Series or Class of Investor
Certificates will be characterized as debt for such purposes, (ii) in the case
of a Tax Opinion required under Section 5.10(a) of this Agreement, the Investor
Certificates of any new Series that are not retained by the Company will be
characterized as either debt or as equity interests in a partnership between the
Company and
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Pooling Agreement
one or more Classes of the Investor Certificateholders, which partnership will
not be considered a publicly traded partnership taxable as a corporation and
(iii) following such action, the Trust will not be an association (or publicly
traded partnership) taxable as a corporation and (b) with respect to state
taxation issues regarding the taxation of the Trust, in substantially the form
delivered at the Initial Closing Date; provided, that such opinion shall not
be at the expense of the Trustee.
"Termination Notice" shall have the meaning specified in
Section 6.01 of the Servicing Agreement.
"Tooling Receivable" shall mean any Receivable described in
clause (z) of the definition thereof.
"Transactions" shall have the meaning specified in
subsection 2.03(b).
"Transaction Documents" shall mean the collective reference
to this Agreement, the Servicing Agreement, each Supplement with respect to
any Outstanding Series, the Receivables Sale Agreement, the Lockbox
Agreements, the Investor Certificates and any other documents delivered
pursuant to or in connection therewith.
"Transfer Agent and Registrar" shall have the meaning
specified in Section 5.03 and shall initially be the Trustee.
"Transfer Deposit Amount" shall have the meaning specified
in subsection 2.05(b).
"Transferred Agreements" shall have the meaning assigned in
subsection 2.01(a)(v).
"Trust" shall mean the AAM Master Trust created by this
Agreement.
"Trust Assets" shall have the meaning specified in
subsection 2.01(a).
"Trust Termination Date" shall have the meaning specified in
subsection 9.01(a).
"Trustee" shall mean the institution executing this Agreement
as trustee, or its successor in interest, or any successor trustee
appointed as herein provided.
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Pooling Agreement
"Trustee Force Majeure Delay" shall mean any cause or event
that is beyond the control and not due to the gross negligence of the Trustee
that delays, prevents or prohibits the Trustee's performance of its duties
under Article III, including acts of God, floods, fire, explosions of any
kind, snowstorms and other irregular weather conditions, mass transportation
disruptions, any of power failure, telephone failure or computer failure in
the office of the Trustee, including without limitation, failure of the
Chemlink or any similar system or failure of the Fed Wire system operated by
the Federal Reserve Bank of New York and all similar events. The Trustee shall
notify the Company as soon as reasonably possible after the beginning of any
such delay.
"UCC" shall mean the Uniform Commercial Code, as amended
from time to time, as in effect in any specified jurisdiction.
"Variable Funding Certificates" or "VFC Certificates" shall
have the meaning specified in Section 5.10.
SECTION 1.02. Other Definitional Provisions. (a) All terms
defined in this Agreement, the Servicing Agreement or in any Supplement shall
have such defined meanings when used in any certificate or other document made
or delivered pursuant hereto unless otherwise defined therein.
(b) As used herein and in any certificate or other document
made or delivered pursuant hereto or thereto, accounting terms not defined in
Section 1.01, and accounting terms partly defined in Section 1.01 to the
extent not defined, shall have the respective meanings given to them under
GAAP. To the extent that the definitions of accounting terms herein are
inconsistent with the meanings of such terms under GAAP, the definitions
contained herein shall control.
(c) The words "hereof", "herein" and "hereunder" and words
of similar import when used in this Agreement shall refer to this Agreement as
a whole and not to any particular provision of this Agreement; and Section,
subsection, Schedule, Exhibit and Appendix references contained in this
Agreement are references to Sections, subsections, Schedules, Exhibits and
Appendices in or to this Agreement unless otherwise specified.
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Pooling Agreement
(d) The definitions contained in Section 1.01 are applicable
to the singular as well as the plural forms of such terms and to the masculine
as well as to the feminine and neuter genders of such terms.
(e) Where a definition contained in Section 1.01 specifies
that such term shall have the meaning set forth in the related Supplement, the
definition of such term set forth in the related Supplement may be preceded by
a prefix indicating the specific Series or Class to which such definition
shall apply.
(f) Where reference is made in this Agreement or any related
Supplement to the principal amount of Receivables, such reference shall,
unless explicitly stated otherwise, be deemed a reference to the Principal
Amount (as such term is defined in Section 1.01) of such Receivables.
(g) Any reference herein or in any other Transaction
Document to a provision of the Bankruptcy Code, the Internal Revenue Code or
ERISA shall be deemed a reference to any successor provision thereto.
(h) To the extent that any provision of this Agreement or
any other Transaction Document requires that a calculation be performed with
respect to a date occurring prior to the effective date of such Transaction
Document, such calculation shall be performed as provided therein as though
such Transaction Document had been effective on and as of such prior date;
provided, that the party required to perform such calculation shall not be
responsible for not performing such calculation as of such prior date.
(i) Any reference herein to a Schedule, Exhibit or Appendix
to this Agreement shall be deemed to be a reference to such Schedule, Exhibit
or Appendix as it may be amended, modified or supplemented from time to time
to the extent that such Schedule, Exhibit or Appendix may be amended, modified
or supplemented (or any term or provision of any Transaction Document may be
amended that would have the effect of amending, modifying or supplementing
information contained in such Schedule, Exhibit or Appendix) in compliance
with the terms of the Transaction Documents.
(j) Any reference herein to any representation, warranty or
covenant "deemed" to have
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Pooling Agreement
been made is intended to encompass only representations, warranties or
covenants that are expressly stated to be repeated on or as of dates following
the execution and delivery of this Agreement, and no such reference shall be
interpreted as a reference to any implicit, inferred, tacit or otherwise
unexpressed representation, warranty or covenant.
(k) The words "include", "includes" or "including" shall be
interpreted as if followed, in each case, by the phrase "without limitation".
ARTICLE II
Conveyance of Receivables;
Representations, Warranties and Covenants
SECTION 2.01. Conveyance of Receivables. (a) By execution
and delivery of this Agreement, the Company does hereby assign, set over and
otherwise convey to the Trust for the benefit of the Holders, without recourse
(except as specifically provided herein), all its present and future right,
title and interest in, to and under:
(i) all Receivables, including those existing at the close
of business on the Initial Closing Date and all Receivables thereafter
arising from time to time until but not including the Trust Termination
Date;
(ii) the Related Property;
(iii) all Collections;
(iv) all rights (including rescission, replevin or
reclamation) relating to any Receivable or arising therefrom;
(v) each of the Receivables Sale Agreement and the Servicing
Agreement, including in respect of each agreement, (A) all rights of the
Company to receive monies due and to become due under or pursuant to such
agreement, whether payable as fees, expenses, costs or otherwise, (B) all
rights of the Company to receive proceeds of any insurance, indemnity,
warranty or guaranty with respect to such agreement, (C) claims of the
Company for damages arising out of or for breach of or default under such
agreement, (D) the right of the
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Pooling Agreement
Company to amend, waive or terminate such agreement, to perform
thereunder and to compel performance and otherwise exercise all remedies
thereunder and (E) all other rights, remedies, powers, privileges and
claims of the Company under or in connection with such agreement (whether
arising pursuant to such agreement or otherwise available to the Company
at law or in equity), including the rights of the Company to enforce such
agreement and to give or withhold any and all consents, requests,
notices, directions, approvals, extensions or waivers under or in
connection therewith (all of the foregoing set forth in subclauses (v)(A)
through (E), inclusive, the "Transferred Agreements");
(vi) the Collection Account, each Lockbox and each Lockbox
Account (collectively, the "Accounts"), including (A) all funds and other
evidences of payment held therein and all certificates and instruments,
if any, from time to time representing or evidencing any of such Accounts
or any funds and other evidences of payment held therein, (B) all
investments of such funds held in such Accounts and all certificates and
instruments from time to time representing or evidencing such
investments, (C) all notes, certificates of deposit and other instruments
from time to time hereafter delivered or transferred to, or otherwise
possessed by, the Trustee for and on behalf of the Company in
substitution for any of the then existing Accounts and (D) all interest,
dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in
exchange for any and all of the then existing Accounts; and
(vii) all proceeds of or payments in respect of any and all
of the foregoing clauses (i) through (vi) (including proceeds that
constitute property of the types described in clause (vi) above and
including Collections).
Such property described in the foregoing clauses (i) through (vii), together
with all investments and all monies on deposit in any other bank account or
accounts maintained for the benefit of any Holders and all monies available
under any Enhancement, to the extent paid to the Trust to be provided by the
provider of such Enhancement for any Series for payment to Holders shall
constitute the assets of the Trust (the "Trust Assets").
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Pooling Agreement
Subject to Section 5.09, although it is the intent of the
parties to this Agreement that the conveyance of the Company's right, title
and interest in, to and under the Receivables and the other Trust Assets
pursuant to this Agreement shall constitute a purchase and sale and not a
loan, in the event that such conveyance is deemed to be a loan, the Company
hereby grants to the Trustee for the benefit of the Holders a security
interest in all of the Company's present and future right, title and interest
in, to and under the Receivables and the other Trust Assets (it is understood
and agreed that the parties intend that such security interest shall be
perfected and first priority upon the filing of UCC-1 financing statements
with the appropriate authorities), and that this Agreement shall constitute a
security agreement under applicable law in favor of the Trustee, for the
benefit of the Holders.
(b) The assignment, setover and conveyance to the Trust
pursuant to Section 2.01(a) shall be made to the Trustee, on behalf of the
Trust, and each reference in this Agreement to such assignment, setover and
conveyance shall be construed accordingly. In connection with the foregoing
assignment, the Company and the Servicer agree to deliver to the Trustee each
Trust Asset evidencing a Receivable to be included as an Eligible Receivable
or any Related Property with respect thereto (including any original document
or instrument necessary to effect or to perfect such assignment) in which the
transfer of an interest is being perfected under the UCC or otherwise by
possession and not by filing a financing statement or similar document
(although a precautionary filing of a financing statement or similar document
is expected to be made in respect of each such Trust Asset). Without limiting
the generality of the foregoing sentence, the Company and the Servicer agree
to deliver or cause to be delivered to the Trustee an original of (i) any
promissory note or other instrument evidencing a Receivable sold to the Trust
and (ii) any chattel paper evidencing a Receivable sold to the Trust.
Notwithstanding the assignment of the Transferred Agreements
set forth in Section 2.01(a), the Company does not hereby assign or delegate
any of its duties or obligations under the Transferred Agreements to the Trust
or the Trustee and neither the Trust nor the Trustee accepts such duties or
obligations, and the Company shall continue to have the right and the
obligation to purchase Receivables from the Seller thereunder from time to
time and to consummate the other
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36
Pooling Agreement
transactions and take any actions contemplated thereby. The foregoing
assignment, set-over and conveyance does not constitute and is not intended to
result in a creation or an assumption by the Trust, the Trustee, any Investor
Certificateholder or the Company, in its capacity as a Holder, of any
obligation of the Servicer, the Company, the Seller or any other Person in
connection with the Receivables or under any agreement or instrument relating
thereto, including, without limitation, any obligation to any Obligor.
In connection with such assignment, the Company agrees to
record and file, or cause to be recorded or filed, at its own expense, any
financing statements (and continuation statements with respect to such
financing statements when applicable) or, where applicable, registrations in
the appropriate records, with respect to the Receivables now existing and
hereafter created and the other Trust Assets, in each case for which a
security interest may be perfected under the relevant UCC, legislation or
similar statute by such filing or registration, as the case may be, in each
case meeting the requirements of applicable law in such manner and in such
jurisdictions as are necessary to perfect and maintain perfection of the
assignment of the Receivables and such other Trust Assets (excluding returned
merchandise) to the Trust, and to deliver a file-stamped copy or certified
statement of such financing statement or registration or other evidence of
such filing or registration to the Trustee on or prior to the date of issuance
of any Investor Certificates, any Subordinated Company Interest or the
Exchangeable Company Interest. The Trustee shall be under no obligation
whatsoever to file such financing statement, or a continuation statement to
such financing statement, or to make any other filing or other registration
under the UCC, other relevant legislation or similar statute in connection
with such transfer. The Trustee shall be entitled to conclusively rely on the
filings or registrations made by or on behalf of the Company without any
independent investigation and the Company's obligation to make such filings as
evidence that such filings have been made.
In connection with such assignment, the Company further
agrees, at its own expense, on or prior to the Initial Closing Date and each
Issuance Date (a) to indicate, or to cause to be indicated, in its computer
files containing its master database of Receivables and to cause the Seller to
indicate in its records containing its master database of Receivables that
Receivables have
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Pooling Agreement
been conveyed to the Company or the Trust, as the case may be, pursuant to the
Receivables Sale Agreement or this Agreement, respectively, for the benefit of
the Holders and (b) to deliver or transmit or cause to be delivered or
transmitted to the Trustee computer tapes, diskettes or data transmission
containing a true and complete list of all Receivables transferred to the
Trust specifying for each such Receivable, as of the Cut-Off Date, at least
(i) the name of the Obligor and (ii) the aggregate Principal Amount of the
Receivables owing by such Obligor. Such tapes, diskettes or data transmission
shall constitute Schedule 1 to this Agreement and are hereby incorporated into
and made a part of this Agreement whether they are delivered together with or
separate from this Agreement.
SECTION 2.02. Acceptance by Trustee. (a) The Trustee
hereby acknowledges its acceptance on behalf of the Trust of all right, title
and interest in, to and under the property, now existing and hereafter created,
assigned to the Trust pursuant to Section 2.01 and declares that it shall
maintain such right, title and interest, upon the trust herein set forth, for
the benefit of all Holders. The Trustee further acknowledges that, prior to or
simultaneous with the execution and delivery of this Agreement, the Company
delivered to the Trustee the computer tapes containing a list of the Receivables
described in the last paragraph of Section 2.01. The Trustee shall maintain a
copy of Schedule 1, as delivered from time to time, at the Corporate Trust
Office.
(b) The Trustee shall have no power to create, assume or
incur indebtedness or other liabilities in the name of the Trust other than as
contemplated in this Agreement.
SECTION 2.03. Representations and Warranties of the Company
Relating to the Company. The Company hereby represents and warrants to the
Trustee, in its individual capacity, and the Trust (for the benefit of the
Holders with respect to each Outstanding Series) as of the Issuance Date of
such Series, that:
(a) Organization; Powers. The Company (i) is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (ii) has all requisite power and authority
to own its property and assets and to carry on its business as now conducted
and as proposed to be
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Pooling Agreement
conducted, (iii) is qualified to do business in, and is in good standing in,
every jurisdiction where the nature of its business so requires, except where
the failure so to qualify could not reasonably be expected to result in a
Material Adverse Effect and (iv) has the corporate power and authority to
execute, deliver and perform its obligations under each of the Transaction
Documents and each other agreement or instrument contemplated hereby to which
it is or will be a party.
(b) Authorization. The execution, delivery and performance
by the Company of each of the Transaction Documents and the other transactions
contemplated hereby (collectively, the "Transactions") (i) have been duly
authorized by all requisite corporate and, if required, stockholder action and
(ii) will not (A) violate (1) any Requirement of Law or (2) any provision of
any Transaction Document or any other material Contractual Obligation to which
the Company is a party or by which it or any of its property is or may be
bound, (B) be in conflict with, result in a breach of or constitute (alone or
with notice or lapse of time or both) a default under, or give rise to any
right to accelerate or to require the prepayment, repurchase or redemption of
any obligation under, any Transaction Document or any other material
Contractual Obligation or (C) result in the creation or imposition of any Lien
upon or with respect to any property or assets now owned or hereafter acquired
by the Company (other than any Lien created hereunder or contem plated or
permitted hereby).
(c) Enforceability. This Agreement has been duly executed
and delivered by the Company and consti tutes, and each other Transaction
Document to which the Company is a party when executed and delivered by the
Company will constitute, a legal, valid and binding obligation of the Company
enforceable against it in accordance with its respective terms, subject (a) as
to enforcement of remedies, to applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the enforcement of
creditors' rights generally, from time to time in effect and (b) to general
principles of equity (whether enforcement is sought by a proceeding in equity
or at law).
(d) Governmental Approvals. No action, consent or approval
of, registration or filing with or any other action by any Governmental
Authority is or will be required in connection with the Transactions, except
for (i) the filing of appropriate UCC financing
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Pooling Agreement
statements, (ii) such as have been made or obtained and are in full force and
effect and (iii) those that may be required under the state securities or
"blue sky" laws in connection with the offering or sale of certificates.
(e) Litigation; Compliance with Laws. (i) There are not any
actions, suits or proceedings at law or in equity or by or before any
Governmental Authority now pending or, to the knowledge of the Company,
threatened against or affecting the Company or any business, property or
rights of the Company, an adverse decision in which could reasonably be
expected to have a Material Adverse Effect with respect to the Company.
(ii) The Company is not in default with respect to any
judgment, writ, injunction, decree or order of any Governmental Authority.
(f) Agreements. (i) The Company has no Contractual
Obligations other than (A) the Transaction Documents to which it is a party
(including the Seller Note) and (B) any other agreements or instruments that
the Company is not prohibited from entering into by subsection 2.08(g). The
Company is not subject to any corporate restriction that could reasonably be
expected to have a Material Adverse Effect.
(ii) The Company is not in default in any material respect
under any provision of any Transaction Document or any other material
Contractual Obligation to which it is a party or by which it or any of its
proper ties or assets are or may be bound.
(g) Federal Reserve Regulations. (i) The Company is not
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock.
(ii) No part of the proceeds from the issuance of any
Investor Certificates will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, for any purpose that entails
a violation of, or otherwise fails to comply with, the provisions of the
Regulations of the Board, including Regulation G, U or X.
(h) Investment Company Act. Neither the Company nor the
Trust is an "investment company" as defined in, or subject to regulation under,
the 1940 Act.
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Pooling Agreement
(i) No Early Amortization Event. No Early Amortization
Event or Potential Early Amortization Event has occurred and is continuing.
(j) Tax Returns. The Company has filed or caused to be filed
all Federal, state or other material tax returns required to have been filed
by it and has paid or caused to be paid all taxes due and payable by it and
all assessments received by it to the extent that such failure to file or
nonpayment could reasonably be expected to have a Material Adverse Effect with
respect to the Company.
(k) Location of Records; Chief Executive Office. The offices
at which the Company keeps its records concerning the Receivables either (x)
are located at the addresses set forth for the Seller on Schedule 4 of the
Receivables Sale Agreement or (y) the Company has notified the Trustee of the
location thereof in accordance with the provisions of subsection 2.08(j) of
this Agreement. The chief executive office of the Company is located at the
address set forth on Schedule 3 and is the place where the Company is
"located" for the purposes of Section 9-103(3)(d) of the UCC as in effect in
the State of New York. As of the Initial Closing Date, the state and county
where the chief executive office of the Company is "located" for the purposes
of Section 9-103(3)(d) of the UCC as in effect in the State of New York has
not changed in the past four months.
(l) Solvency. No Insolvency Event with respect to the
Company has occurred and the transfer of the Receivables by the Company to the
Trust has not been made in contemplation of the occurrence thereof. Both prior
to and after giving effect to the transactions occurring on each Issuance Date,
(i) the fair value of the assets of the Company at a fair valuation will exceed
the debts and liabilities, subordinated, contingent or otherwise, of the
Company; (ii) the present fair salable value of the property of the Company will
be greater than the amount that will be required to pay the probable liability
of the Company on its debts and other liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured; (iii) the
Company will be able to pay its debts and liabilities, subordinated, contingent
or otherwise, as such debts and liabilities become absolute and matured; and
(iv) the Company will not have unreasonably small capital with which to conduct
the business in which it is engaged as such business is now conducted and is
proposed
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Pooling Agreement
to be conducted. For all purposes of clauses (i) through (iv) above, the
amount of contingent liabilities at any time shall be computed as the amount
that, in the light of all the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or
matured liability. The Company does not intend to, nor does it believe that it
will, incur debts beyond its ability to pay such debts as they mature, taking
into account the timing of and amounts of cash to be received by it and the
timing of and amounts of cash to be payable in respect of its Indebtedness.
(m) Ownership; Subsidiaries. All of the issued and
outstanding capital stock of the Company is owned, legally and beneficially, by
American Axle & Manufacturing, Inc. The Company has no Subsidiaries.
(n) Names. The legal name of the Company is as set forth in
this Agreement. The Company has no trade names, fictitious names, assumed
names or "doing business as" names.
(o) Liabilities. Other than (i) the liabilities, commitments
or obligations (whether absolute, accrued, contingent or otherwise) arising
under or in respect of the Transaction Documents, (ii) Program Costs and (iii)
immaterial amounts due and payable in the ordinary course of business of a
special-purpose company, the Company does not have any liabilities, commitments
or obligations (whether absolute, accrued, contingent or otherwise), whether due
or to become due.
(p) Collection Procedures. The Company and the Seller have
in place procedures pursuant to the Transaction Documents which are either
necessary or advisable to ensure the timely collection of Receivables.
(q) Lockbox Agreements; Lockbox Accounts. Except to the
extent otherwise permitted under the terms of this Agreement, (i) each Lockbox
Agreement to which the Company is party is in full force and effect and (ii)
each Lockbox Account set forth in Schedule 2 to the Receivables Sales
Agreement is free and clear of any Lien (other than any right of set-off
expressly provided for in the applicable Lockbox Agreement).
(r) No Material Adverse Effect. Since the incorporation of
the Company, no event has occurred which has had a Material Adverse Effect
with respect to the Company.
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Pooling Agreement
The representations and warranties as of the date made set
forth in this Section 2.03 shall survive the transfer and assignment of the
Trust Assets to the Trust. Upon discovery by a Responsible Officer of the
Company or the Servicer or by a Responsible Officer of the Trustee of a breach
of any of the foregoing representations and warranties with respect to any
Outstanding Series as of the Issuance Date of such Series, the party
discovering such breach shall give prompt written notice to the other parties
and to each Agent with respect to all Outstanding Series. The Trustee's
obligations in respect of any breach are limited as provided in Section
8.02(g).
SECTION 2.04. Representations and Warranties of the Company
Relating to the Receivables. The Company hereby represents and warrants to the
Trustee and the Trust, for the benefit of the Holders, with respect to each
Receivable transferred to the Trust as of the related Receivables Purchase
Date, unless, in either case, otherwise stated in the applicable Supplement or
unless such representation or warranty expressly relates only to a prior date,
that:
(a) Receivables Description. As of the CutOff Date, Schedule
1 to this Agreement sets forth a complete listing of all Receivables,
aggregated by Obligor, transferred to the Trust as of the Cut-Off Date
and the information contained therein specified in clauses (i) and (ii)
of the last paragraph of subsection 2.01(b) with respect to each such
Receivable is true and correct (except for any errors or omissions that
do not result in material impairment of the interests, rights or remedies
of the Trustee or the Investor Certificateholders with respect to any
Receivable) as of the Cut-Off Date. As of the Cut-Off Date, the aggregate
amount of Receivables owned by the Company is accurately set forth in
Schedule 1 hereto.
(b) No Liens. Each Receivable existing on the Initial
Closing Date or, in the case of Receivables transferred to the Trust
after the Initial Closing Date, on the date that each such Receivable
shall have been transferred to the Trust, has been conveyed to the Trust
free and clear of any Lien, except for Permitted Liens.
(c) Eligible Receivable. To the Company's knowledge, on the
Initial Closing Date, each Receivable transferred to the Trust that is
included in the
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Pooling Agreement
calculation of the initial Aggregate Receivables Amount is an Eligible
Receivable and, in the case of Receivables transferred to the Trust after
the Initial Closing Date, on the date such Receivable shall have been
transferred to the Trust, each such Receivable that is included in the
calculation of the Aggregate Receivables Amount on such date is an
Eligible Receivable.
(d) Filings. On or prior to the date that is 10 days after
the Initial Closing Date, all filings and other acts (including but not
limited to all filings and other acts necessary or advisable under the
UCC) shall have been made or performed such that the Trust has a first
priority perfected ownership or security interest in respect of all
Receivables on such date.
The representations and warranties as of the date made set
forth in this Section 2.04 shall survive the transfer and assignment of the
Trust Assets to the Trust. Upon discovery by a Responsible Officer of the
Company, the Servicer or a Responsible Officer of the Trustee of a breach of
any of the representations and warranties (or of any Receivable encompassed by
the representation and warranty in subsection 2.04(c) not being an Eligible
Receivable as of the relevant Receivables Purchase Date) with respect to each
Outstanding Series as of the Issuance Date of such Series, the party
discovering such breach shall give prompt written notice to the other parties
and to each Agent with respect to all Outstanding Series. The Trustee's
obligations in respect of any breach are limited as provided in Section
8.02(g).
SECTION 2.05. Adjustment Payment for Ineligible Receivables.
(a) Adjustment Payment Obligation. If (i) any representation or warranty under
subsections 2.04(a), (b) or (c) is not true and correct as of the date
specified therein with respect to any Receivable transferred to the Trust,
(ii) there is a breach of any covenant under subsection 2.08(c) with respect
to any Receivable, (iii) the Trust's interest in any Receivable is not a first
priority perfected owner ship or security interest at any time as a result of
any action taken by, or the failure to take action by, the Company or (iv) any
Eligible Receivable becomes subject to any asserted defense, dispute, offset
or counterclaim of any kind (other than as expressly permitted by this
Agreement or the Receivables Sale Agreement) provided that in the case of any
Eligible Receivable that becomes
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Pooling Agreement
subject only in part to any of the foregoing, this subsection 2.05(a) shall
apply only to the portion thereof that is so subject (any Receivable as to
which the conditions specified in any of clause (i), (ii), (iii) or (iv) of
this subsection 2.05(a) exists is referred to herein as an "Ineligible
Receivable") then, after the earlier (the date on which such earlier event
occurs, the "Repurchase Obligation Date"), to occur of the discovery by the
Company of any such event that continues unremedied or receipt by the Company
of written notice given by the Trustee or the Servicer of any such event that
continues unremedied, the Company shall make an adjustment payment with
respect to such Ineligible Receivable on the terms and conditions set forth in
subsection 2.05(b). It is understood and agreed that any Eligible Receivable
(or portion thereof) that becomes subject to any asserted defense, dispute,
offset or counterclaim shall be the subject of a Company Repurchase Payment
(as defined herein).
(b) Adjustment Payment Amount. Subject to the last sentence
of this subsection 2.05(b), the Company shall make an adjustment payment with
respect to each Ineligible Receivable as required pursuant to sub section
2.05(a) by depositing in the Collection Account in immediately available funds
on the Business Day following the related Repurchase Obligation Date an amount
equal to the lesser of (x) the amount by which the Aggregate Target
Receivables Amount exceeds the Aggregate Receivables Amount (after giving
effect to the reduction thereof by the Principal Amount of such Ineligible
Receivable) and (y) the aggregate outstanding Principal Amount of all such
Ineligible Receivables (the "Transfer Deposit Amount"). Upon transfer or
deposit of the Transfer Deposit Amount or the making of any Seller Repurchase
Payment (as defined in the Receivables Sale Agreement), the Trust shall
automatically and without further action be deemed to sell, transfer, assign,
set over and otherwise convey to the Company, without recourse, representation
or warranty, all the right, title and interest of the Trust in and to such
Ineligible Receivable (as defined herein and in the Receivables Sale
Agreement), all monies due and unpaid or to become due with respect thereto
and all proceeds thereof; and such repurchased Ineligible Receivable shall be
treated by the Trust as collected in full as of the date on which it was
transferred. The Trustee shall execute such documents and instruments of
transfer or assignment on behalf of the Trust and take
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Pooling Agreement
such other actions as shall reasonably be requested in writing by the Company
to effect the conveyance of such Receivables pursuant to this subsection
2.05(b). Except as otherwise specified in any Supplement, the obligation of
the Company to pay such Transfer Deposit Amount with respect to any Ineligible
Receivables shall constitute the sole remedy respecting the event giving rise
to such obligation available to Investor Certificateholders (or the Trustee on
behalf of Investor Certificateholders). Any payment made by the Company
pursuant to this subsection 2.05(b) is referred to as a "Company Repurchase
Payment".
SECTION 2.06. Purchase of Investor Certificateholders'
Interest in Trust Portfolio. (a) In the event of any breach of any of the
representations and warranties set forth in paragraph (a), (b), (c), (d) or
(e)(i) of Section 2.03 as of the date made, which breach has a material
adverse effect on the interests of the Holders of an Outstanding Series under
or with respect to the Transaction Documents, then the Trustee, at the written
direction of holders evidencing more than 50% of the Invested Amount of each
affected Outstanding Series, shall notify the Company to purchase such
Outstanding Series and the Company shall be obligated to make such purchase on
the next Distribution Date occurring at least five Business Days after receipt
of such notice on the terms and conditions set forth below; provided, however,
that no such purchase shall be required to be made if, by such Distribution
Date, any such material adverse effect caused thereby shall have been cured.
(b) As required under Section 2.06(a), the Company shall
deposit into the Collection Account for credit to the applicable subaccount of
the Collection Account on the Business Day preceding such Distribution Date an
amount equal to the purchase price (as described in the next succeeding
sentence) for the Investor Certificateholders' Interest for such Outstanding
Series on such day. The purchase price for any such purchase will be equal to
(i) the Adjusted Invested Amount of such Outstanding Series on the date on
which the purchase is made plus (ii) an amount equal to all interest accrued
but unpaid on such Series up to the Distribution Date on which the
distribution of such deposit is scheduled to be made pursuant to Section 9.02
plus (iii) any other amount required to be paid in connection therewith
pursuant to any Supplement. Notwithstanding anything to the contrary in this
Agreement, the entire amount of the purchase price deposited in the Collection
Account shall be
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Pooling Agreement
distributed to the related Investor Certificateholders on such Distribution
Date pursuant to Section 9.02. If the Trustee gives notice directing the
Company to purchase the Investor Certificates of an Outstanding Series as
provided above, except as otherwise specified in any Supplement, the
obligation of the Company to purchase such Investor Certificates pursuant to
this Section 2.06 shall constitute the sole remedy respecting an event of the
type specified in the first sentence of this Section 2.06 available to the
applicable Investor Certificateholders (or the Trustee on behalf of such
Investor Certificateholders).
SECTION 2.07. Affirmative Covenants of the Company. The
Company hereby covenants that, until the Trust Termination Date occurs, the
Company shall:
(a) Financial Statements, Reports, etc.
(i) Furnish to the Trustee, each Agent and the
Rating Agencies, within 90 days after the end of each fiscal
year, the balance sheet and related statements of income,
stockholders' equity and cash flows showing the financial
condition of the Company as of the close of such fiscal year
and the results of its operations during such year, all
audited by the Company's Independent Public Accountants and
accompanied by an opinion of such accountants (which shall
not be qualified in any material respect) to the effect that
such financial statements fairly present the financial
condition and results of operations of the Company in
accordance with GAAP consistently applied;
(ii) Furnish to the Trustee, each Agent and the
Rating Agencies, within 45 days after the end of each of the
first three fiscal quarters of each fiscal year, the
Company's balance sheet and related income statement showing
the financial condition of the Company as of the close of
such fiscal quarter and the results of its operations during
such fiscal quarter and the then elapsed portion of the
fiscal year (and, beginning with the second fiscal year,
showing, on a comparative basis, such information as of and
for the corresponding dates and periods of the preceding
fiscal year), all certified by a Responsible Officer
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Pooling Agreement
of such Person as fairly representing the financial
condition and results of operations of the Company in
accordance with GAAP consis tently applied, subject to
normal year-end audit adjustments; and
(iii) Furnish to the Trustee and each Agent,
promptly, from time to time, such other information
regarding the operations, business affairs and financial
condition of the Company, or compliance with the terms of
any Transaction Document, in each case as any Agent or the
Trustee may reasonably request.
(b) Annual Opinion. Deliver to the Trustee and the Rating
Agencies an Opinion of Counsel substantially in the form of Exhibit B, by
January 31st of each fiscal year of the Company, the first such delivery
hereunder to occur in January 1999.
(c) Payment of Obligations; Compliance with Obligations.
Pay, discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, all its obligations of whatever
nature, except where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in
conformity with GAAP with respect thereto have been provided on the books
of the Company or where the failure to pay, discharge or otherwise
satisfy such obligation would not have a Material Adverse Effect with
respect to the Company. The Company shall defend the right, title and
interest of the Holders in, to and under the Receivables and the other
Trust Assets, whether now existing or hereafter created, against all
claims of third parties claiming through or under the Company, the Seller
or the Servicer. The Company will duly fulfill all material obligations
on its part to be fulfilled under or in connection with each Receivable
and will do nothing to impair the rights of the Holders in such
Receivable.
(d) Inspection of Property; Books and Records; Discussions.
Keep proper books of records and account in which full, true and correct
entries in conformity with GAAP and all Requirements of Law shall be made
of all dealings and transactions in relation to its business and
activities; and permit representatives of the Trustee upon reasonable
advance notice to visit and inspect any of its properties and examine and
make abstracts from any of its books and records during
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Pooling Agreement
normal business hours on any Business Day and as often as may reasonably
be requested, subject to the Company's security and confidentiality
requirements, and to discuss the business, operations, properties and
financial and other condition of the Company with officers and employees
of the Company and with its Independent Public Accountants; provided that
the Trustee shall notify the Company prior to any contact with such
Independent Public Accountants and shall give the Company the opportunity
to participate in such discussions.
(e) Compliance with Law and Policies.
(i) Comply in all material respects with all
Requirements of Law, the provisions of the Transaction
Documents and all other material Contractual Obligations
applicable to the Company; and
(ii) Cause the Seller to perform its respective
obligations in accordance with and to comply in all material
respects with the Policies, as amended from time to time in
accordance with the Transaction Documents, in regard to the
Receivables and the Related Property.
(f) Purchase of Receivables. Purchase Receivables solely in
accordance with the Receivables Sale Agreement or this Agreement.
(g) Delivery of Collections. In the event that the Company
receives Collections directly from Obligors, deliver (which may be by
regular mail) or deposit such Collections into a Lockbox, a Lockbox
Account or the Collection Account within two Business Days after its
receipt thereof.
(h) Notices. Promptly (and, in any event, within five
Business Days after a Responsible Officer of the Company becomes aware of
such event) give written notice to the Trustee, each Rating Agency and
each Agent for any Outstanding Series of:
(i) the occurrence of any Early
Amortization Event or Potential Early
Amortization Event; and
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Pooling Agreement
(ii) any Lien not permitted by subsection 2.08(c)
on Receivables accounting for 5% or more of the aggregate
Principal Amount of all Receivables in the Trust.
(i) Lockboxes. (i) Maintain, and keep in full force and
effect, each Lockbox Agreement to which the Company is a party, except to
the extent otherwise permitted under the terms of this Agreement and the
other Transaction Documents and (ii) take all reasonable actions
necessary to ensure that each related Lockbox Account shall be free and
clear of, and defend each such Lockbox Account against, any writ, order,
stay, judgment, warrant of attachment or execution or similar process;
provided, however, that the Company may enter into any amendments or
modifications of a Lockbox Agreement that the Company reasonably deems
necessary to conform such Lockbox Agreement to the cash management system
of the Company or the Servicer and that are reasonably acceptable to the
Trustee and each Agent.
(j) Separate Corporate Existence.
(i) Maintain its own deposit account or accounts,
separate from those of any Affiliate, with commercial
banking institutions and ensure that the funds of the
Company will not be diverted to any other Person or for
other than corporate uses of the Company, nor will such
funds be commingled with the funds of the Seller or any
Subsidiary or Affiliate of the Seller;
(ii) To the extent that it shares the same officers
or other employees as any of its stockholders or Affiliates,
the salaries of and the expenses related to providing
benefits to such officers and other employees shall be
fairly allocated among such entities, and each such entity
shall bear its fair share of the salary and benefit costs
associated with all such common officers and employees;
(iii) To the extent that it jointly contracts with
any of its stockholders or Affiliates to do business with
vendors or service providers or to share overhead expenses,
the costs incurred in so doing shall be allocated fairly
among such entities, and
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Pooling Agreement
each such entity shall bear its fair share of such costs. To
the extent that the Company contracts or does business with
vendors or service providers where the goods and services
provided are partially for the benefit of any other Person,
the costs incurred in so doing shall be fairly allocated to
or among such entities for whose benefit the goods or
services are provided, and each such entity shall bear its
fair share of such costs. All material transactions between
the Company and any of its Affiliates, whether currently
existing or hereafter entered into, shall be only on an
arm's length basis, it being understood and agreed that the
transactions contemplated in the Transaction Documents meet
the requirements of this clause (iii);
(iv) Maintain office space separate from the office
space of the Seller and its Affiliates. To the extent that
the Company and any of its stockholders or Affiliates have
offices in the same location, there shall be a fair and
appropriate allocation of overhead costs among them, and
each such entity shall bear its fair share of such expenses;
(v) Issue separate financial statements prepared
not less frequently than quarterly and prepared in
accordance with GAAP;
(vi) Conduct its affairs strictly in accordance
with its articles of incorporation and observe all
necessary, appropriate and customary corporate formalities,
including, but not limited to, holding all regular and
special stockholders' and directors' meetings appropriate to
authorize all corporate action, keeping separate and
accurate minutes of its meetings, passing all resolutions or
consents necessary to authorize actions taken or to be
taken, and maintaining accurate and separate books, records
and accounts, including, but not limited to, payroll and
intercompany transaction accounts;
(vii) Not assume or guarantee any of the
liabilities of the Seller, the Servicer or any Affiliate
thereof; and
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Pooling Agreement
(viii) Take, or refrain from taking, as the case
may be, all other actions that are necessary to be taken or
not to be taken in order to (x) ensure that the assumptions
and factual recitations set forth in the Specified
Bankruptcy Opinion Provisions remain true and correct with
respect to the Company and (y) comply with those procedures
described in such provisions which are applicable to the
Company.
(k) Preservation of Corporate Existence. (i) Preserve and
maintain its corporate existence, rights, franchises and privileges in
the jurisdiction of its incorporation and (ii) qualify and remain
qualified in good standing as a foreign corporation in each jurisdiction
where such qualification is required other than any jurisdiction where
the failure so to qualify would not have a Material Adverse Effect with
respect to the Company.
(1) Assessments. Promptly pay and discharge all taxes,
assessments, levies and other governmental charges imposed on it except
such taxes, assessments, levies and other governmental charges that (i)
are being contested in good faith by appropriate proceedings and for
which the Company shall have set aside on its books adequate reserves and
(ii) the failure to pay, satisfy or discharge would not, in any event,
result in a Material Adverse Effect with respect to the Company.
(m) Net Worth. On the Initial Closing Date have a
consolidated common stockholders' equity, and thereafter maintain at all
times a net worth (as defined in accordance with GAAP), of at least
$8,000,000.
SECTION 2.08. Negative Covenants of the Company. The Company
hereby covenants that, until the Trust Termination Date occurs, it shall not
directly or indirectly:
(a) Accounting of Transfers. Prepare any consolidating
financial statements which shall account for the transactions
contemplated by the Receivables Sale Agreement in any manner other than
as a sale of Receivables by the Seller to the Company; provided, however,
that this subsection shall not apply for any tax or tax accounting
purposes.
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Pooling Agreement
(b) Limitation on Indebtedness. Create, incur, assume or
suffer to exist any Indebtedness, except (i) Indebtedness evidenced by
the Seller Note; (ii) Indebtedness representing fees, expenses and
indemnities payable pursuant to and in accordance with the Transaction
Documents; and (iii) Indebtedness for services supplied or furnished to
the Company in an amount not to exceed $50,000 at any time outstanding.
(c) Limitation on Transfers of Receivables, etc. At any time
sell, transfer or otherwise dispose of any of the Receivables, Related
Property or the proceeds thereof pursuant to
(i) any Lien Creation except for Permitted Liens
set forth in clause (i) of the definition thereof; or
(ii) any Investment except in respect of or in
connection with (A) the purchase of Receivables and Related
Property from the Seller or its Subsidiaries or (B) an
advance or loan made to the Seller.
(d) Limitation on Guarantee Obligations. Become or remain
liable, directly or contingently, in connection with any Indebtedness or
other liability of any other Person, whether by guarantee, endorsement
(other than endorsements of negotiable instruments for deposit or
collection in the ordinary course of business), agreement to purchase or
repurchase, agreement to supply or advance funds, or otherwise other than
in connection with indemnification obligations of the Company to the
limited extent provided in the Company's certificate of incorporation and
by-laws (provided that any such indemnification obligations shall
constitute Company Subordinated Obligations) and/or under or in
connection with any Pooling and Servicing Agreement.
(e) Limitation on Fundamental Changes. Enter into any
merger, consolidation or amalgamation, or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or make any material
change in its present method of conducting business, or convey, sell,
lease, assign, transfer or otherwise dispose of, all or substantially all
of its property, business or assets other than the assignments and
transfers contemplated hereby.
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Pooling Agreement
(f) Business of the Company. Engage at any time in any
business or business activity other than the acquisition of Receivables
pursuant to the Receivables Sale Agreement, the assignments and transfers
hereunder, the other transactions contemplated by the Transaction
Documents or any Pooling and Servicing Agreement, and any activity
incidental to the foregoing and necessary or convenient to accomplish the
foregoing, or enter into or be a party to any agreement or instrument
other than in connection with the foregoing, except those agreements or
instruments permitted under Section 2.08(g).
(g) Agreements. (i) Become a party to any indenture,
mortgage, instrument, contract, agreement, lease or other undertaking,
except the Transaction Documents, leases of office space, equipment or
other facilities for use by the Company in its ordinary course of
business, employment agreements, service agreements, agreements relating
to shared employees and the other Transaction Documents or any Pooling
and Servicing Agreement and agreements necessary to perform its
obligations under the Transaction Documents or any Pooling and Servicing
Agreement, (ii) issue any power of attorney (except to the Trustee or the
Servicer or except for the purpose of permitting any Person to perform
any ministerial functions on behalf of the Company that are not
prohibited by or inconsistent with the terms of the Transaction Documents
or any Pooling and Servicing Agreement), or (iii) amend, supplement,
modify or waive any of the provisions of the Receivables Sale Agreement
or any Lockbox Agreement or request, consent or agree to or suffer to
exist or permit any such amendment, supplement, modification or waiver or
exercise any consent rights granted to it thereunder or under the
Receivables Sale Agreement with respect to the GM Agreements unless (x)
such amendment, supplement, modification or waiver or such exercise of
consent rights would not have an adverse effect on the interests, rights
or remedies of the Trustee or the Investor Certificateholders of any
Outstanding Series under or with respect to the Transaction Documents or
(y) in the case of the Receivables Sale Agreement (other than with
respect to the GM Agreements), the Rating Agency Condition shall have
been satisfied with respect to any such amendments, supplements,
modifications or waivers.
(h) Policies. Make any change or modification
(or permit any change or modification to be made) to
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Pooling Agreement
the Policies that is materially adverse to the interests of the Company
or its assigns (including the Trustee and the Investor
Certificateholders), except (i) if such changes or modifications are
necessary under any Requirement of Law, (ii) if such changes or
modifications would not reasonably be likely to have a Material Adverse
Effect with respect to the Company or (iii) if the Rating Agency
Condition is satisfied with respect thereto; provided, however, that if
any change or modification, other than a change or modification permitted
pursuant to clause (i) or (ii) above, would be reasonably likely to have
a Material Adverse Effect on the interests of the Investor
Certificateholders of a Series which is not rated by a Rating Agency, the
consent of the applicable Agent (or if none, as specified in the related
Supplement) shall be required to effect such change or modification.
(i) Receivables Not To Be Evidenced by Promissory Notes.
Subject to the delivery requirement set forth in subsection 2.01(b), take
any action to cause any Receivable not evidenced by an "instrument" (as
defined in the UCC as in effect in any state in which the Company's, or
the Seller's chief executive offices or books and records relating to
such Receivable are located) upon origination to become evidenced by an
instrument, except in connection with its enforcement or collection of a
Defaulted Receivable.
(j) Offices. Move the location of its chief executive office
or of any of the offices where it keeps its records with respect to the
Receivables, or its legal head office to a new location within or outside
the state where such office is now located, without (i) 30 days' prior
written notice to the Trustee and each Rating Agency and (ii) taking all
actions reasonably requested by the Trustee (including but not limited to
all filings and other acts necessary or advisable under the UCC or
similar statute of each relevant jurisdiction) in order to continue the
Trust's first priority perfected ownership or security interest in all
Receivables now owned or hereafter created; provided, however, that the
Company shall not change the location of its chief executive office to a
state which is within the Tenth Circuit unless it delivers an opinion of
counsel reasonably acceptable to the Rating Agencies to the effect that
Octagon Gas Systems, Inc. v. Rimmer, 995 F.2d 948 (10th Cir. 1993) is no
longer controlling precedent in the Tenth Circuit.
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Pooling Agreement
(k) Change in Name. Change its name, identity or corporate
structure in any manner that would or is likely (i) to make any financing
statement or continuation statement (or other similar instrument)
relating to this Agreement seriously misleading within the meaning of
Section 9-402(7) of the UCC, or (ii) to impair the perfection of the
Trust's interest in any Receivable under any other similar law, without
30 days' prior written notice to the Trustee and each Rating Agency.
(l) Charter. Amend or make any change or modification to its
certificate of incorporation without first satisfying the Rating Agency
Condition (other than an amendment, change or modification made pursuant
to changes in law of the state of its incorporation or amendments to
change the Company's name (subject to compliance with clause (k) above),
registered agent or address of registered office).
(m) Limitation on Restricted Payments and Payments on Seller
Note. Declare or pay any dividend on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, defeasance, retirement or other acquisition of, any
shares of any class of capital stock of the Company, whether now or
hereafter outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash or property or in
obligations of the Company (such declarations, payments, setting apart,
purchases, redemptions, defeasance, retirements, acquisitions and
distributions being herein called "Restricted Payments"), or make,
directly or indirectly, payments in any form in respect of the Seller
Note except, in either case, out of funds available to the Company in
accordance with the terms of any Pooling and Servicing Agreement and only
so long as (i) at the date that any such Restricted Payment or payment in
respect of the Seller Note is made, the Company shall have made all
payments in respect of its repurchase obligations pursuant to this
Agreement outstanding at such date and (ii) any such Restricted Payment
is effected in accordance with all corporate and legal formalities
applicable to the Company.
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Pooling Agreement
ARTICLE III
Rights of Holders and
Allocation and Application of Collections
THE FOLLOWING PORTION OF THIS ARTICLE III
IS APPLICABLE TO ALL SERIES.
SECTION 3.01. Establishment of Collection Account; Certain
Allocations. (a) The Trustee, for the benefit of the Holders, as their
interests appear in this Agreement, shall cause to be established and
maintained in the name of the Trust with an Eligible Institution or with the
corporate trust department of the Trustee or an Eligible Institution or an
affiliate of the Trustee or an Eligible Institution, a segregated trust
account (the "Collection Account"), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Holders.
Schedule 2, which is hereby incorporated into and made a part of this
Agreement, identifies the Collection Account by setting forth the account
number of such account, the account designation of such account and the name
of the institution with which such account has been established. The
Collection Account shall be divided into individual subaccounts for each
Outstanding Series (each, respectively, a "Series Collection Subaccount" and,
collectively, the "Series Collection Subaccounts") and for the Company (the
"Company Collection Subaccount"). For administrative purposes only, the
Trustee shall establish or cause to be established for each Series, so long as
such Series is an Outstanding Series, sub-subaccounts of the Series Collection
Subaccounts with respect to such Series (respectively, the "Series Principal
Collection Sub-subaccount" and "Series Non-Principal Collection
Sub-subaccount" and, collectively, the "Series Collection Sub-subaccounts").
(b) Authority of the Trustee in Respect of the Collection
Account. (i) The Trustee shall possess all right, title and interest in all
funds on deposit from time to time in the Collection Account and in all
proceeds thereof. The Collection Account shall be under the sole dominion and
control of the Trustee for the benefit of the Holders. If, at any time, the
Servicer has actual notice or knowledge that any institution holding the
Collection Account has ceased to be an Eligible Institution, the Servicer
shall direct the Trustee to establish within 30 days a substitute account
therefor with an Eligible Institution, transfer any cash
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Pooling Agreement
and/or any Eligible Investments to such new account and from the date any such
substitute accounts are established, such account shall be the Collection
Account. Neither the Company, the Servicer, nor any person or entity claiming
by, through or under the Company, or the Servicer, shall have any right, title
or interest in, except to the extent expressly provided under the Transaction
Documents, or any right to withdraw any amount from, the Collection Account.
Pursuant to the authority granted to the Servicer in subsection 2.02(a) of the
Servicing Agreement, the Servicer shall have the power to instruct the Trustee
in writing to make withdrawals from and payments to the Collection Account for
the purposes of carrying out the Servicer's or Trustee's duties hereunder.
(ii) The Servicer agrees to give written direction (which
may be included within any Daily Report) in a timely manner to the Trustee to
apply all Collections with respect to the Receivables and to make all other
applications, allocations and distributions described in Article III and in
the Supplement with respect to each Outstanding Series.
(iii) Each Series of Investor Certificates shall represent
Fractional Undivided Interests as indicated in the Supplement relating to such
Series and the right to receive Collections and other amounts at the times and
in the amounts specified in this Article III (as supplemented by the
Supplement related to such Series) to be deposited in the Collection Account
and any other accounts maintained for the benefit of the Investor
Certificateholders or paid to the Investor Certificateholders (with respect to
each outstanding Series, the "Investor Certificateholders' Interest"). The
Exchangeable Company Interest shall represent the interest in the Trust not
represented by any Series of Investor Certificates or Subordinated Company
Interest then outstanding, including the right to receive Collections and
other amounts at the times and in the amounts specified in this Article III to
be paid to the Company (the "Exchangeable Company Interest"), and each
Subordinated Company Interest, if any, shall represent the interests granted
to such Subordinated Company Interest pursuant to the related Supplement;
provided, however, that no such Exchangeable Company Interest or Subordinated
Company Interest shall represent any interest in any Trust Account or any
other accounts maintained for the benefit of the Investor
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Certificateholders, except as specifically provided in this Article III.
(c) Administration of the Collection Account. At the written
direction of the Servicer, funds on deposit in the Collection Account
available for investment, shall be invested by the Trustee in Eligible
Investments selected by the Company. All such Eligible Investments shall be
held by the Trustee for the benefit of the Investor Certificateholders.
Amounts on deposit in each Series Non-Principal Collection Sub-subaccount
shall, if applicable, be invested in Eligible Investments that will mature, or
that are payable or redeemable upon demand of the holder thereof, so that such
funds will be available on or before the Business Day immediately preceding
the next Distribution Date. None of such Eligible Investments shall be
disposed of prior to the maturity date with respect thereto unless such
disposition is reasonably determined by the Servicer to be necessary to
prevent a loss. All interest and investment earnings (net of losses and
investment expenses) on funds deposited in a Series Non-Principal Collection
Sub-subaccount shall be deposited in such sub-subaccount. Amounts on deposit
in the Series Principal Collection Sub-subaccount and any other sub-
subaccounts as specified in the related Supplement shall be invested in
Eligible Investments that mature, or that are payable or redeemable upon
demand of the holder thereof, so that such funds will be available not later
than the date which is specified in any Supplement. The Trustee, or its
nominee or custodian, shall maintain possession of the negotiable instruments
or securities, if any, evidencing any Eligible Investments from the time of
purchase thereof until the time of sale or maturity. Any earnings (net of
losses and investment expenses) (the "Investment Earnings") on such invested
funds in a Series Principal Collection Sub-subaccount and any other
sub-subaccounts as specified in the related Supplement will be deposited by
the Trustee in the related Series Non-Principal Collection Sub-subaccount. In
the absence of any written direction from the Company, all Eligible
Investments shall be in cash.
(d) Daily Collections. (i) Promptly following its receipt of
Collections in the form of available funds in the Lockbox Account, but in no
event later than the Business Day following such receipt (such later Business
Day, the "Deposit Date"), the Servicer shall transfer, or cause to be
transferred, all Collections on deposit (less the aggregate amount of set-offs
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permitted to be retained pursuant to any applicable Lockbox Agreement) in the
form of available funds in the Lockbox Accounts directly to the Collection
Account.
(ii) On the date of receipt of Aggregate Daily Collections,
provided that such Aggregate Daily Collections are received prior to 1:00 p.m.
on a Business Day, and if not, no later than the Business Day following each
Deposit Date, the Trustee shall (in accordance with the written directions
received pursuant to subsection (b)(ii) above) transfer from Aggregate Daily
Collections deposited into the Collection Account pursuant to subsection
(d)(i) above, to the respective Series Collection Subaccount, an amount equal
to the product of (x) the applicable Invested Percentage for such Outstanding
Series and (y) such Aggregate Daily Collections in accordance with the Daily
Report.
(iii) On the date of receipt of Aggregate Daily Collections,
provided that such Aggregate Daily Collections are received prior to 1:00 p.m.
on a Business Day, and if not, no later than the Business Day following each
Deposit Date, the Trustee shall (in accordance with the written directions
received pursuant to subsection (b)(ii) above) allocate funds transferred to
the Series Collection Subaccount for each Outstanding Series pursuant to
subsection (d)(ii) above to the Series Non- Principal Collection
Sub-subaccount and the Series Principal Collection Sub-subaccount of each such
Series in accordance with the Daily Report and the related Supplement for such
Series.
(iv) On the date of receipt of Aggregate Daily Collections,
provided that such Aggregate Daily Collections are received prior to 1:00 p.m.
on a Business Day, and if not, no later than the Business Day following each
Deposit Date, except as otherwise provided in a Supplement, the Trustee shall
(in accordance with the written directions received pursuant to subsection
(b)(ii) above) transfer to the Company Collection Subaccount the remaining
funds, if any, on deposit in the Collection Account on such date after giving
effect to transfers to be made pursuant to subsection (d)(ii) above.
(v) In the event that Collections relating to Receivables
with respect to which the Trustee has not received notice that such
Receivables have been sold to the Company are deposited in a Lockbox Account,
the Trustee shall promptly (in accordance with the written
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directions received pursuant to subsection (b)(ii) above), and not subject to
any conditions, transfer such Collections to the Seller and such Collections
shall not constitute Aggregate Daily Collections.
(e) Certain Allocations Following an Amortization Period.
(i) If, on any Settlement Report Date, an Amortization Period has occurred and
is continuing with respect to any Outstanding Series and at such Settlement
Report Date, a Revolving Period is still in effect with respect to any other
Outstanding Series (a "Special Allocation Settlement Report Date"), then the
Servicer shall make the following calculations:
(A) the amount (the "Allocable Charged-Off Amount") equal to
the excess, if any, of (I) the aggregate Principal Amount of Charged-Off
Receivables for the related Settlement Period over (II) the aggregate
Principal Amount of Recoveries received during the related Settlement
Period;
(B) the amount (the "Allocable Recoveries Amount") equal to
the excess, if any, of (I) the aggregate Principal Amount of Recoveries
received during the related Settlement Period over (II) the aggregate
Principal Amount of Charged-Off Receivables for the related Settlement
Period; and
(ii) If, on any Special Allocation Settlement Report Date,
either of the Allocable Charged-off Amount or the Allocable Recoveries Amount
is greater than zero for the related Settlement Period, the Trustee shall (in
accordance with written directions received pursuant to subsection (b)(ii)
above) make (A) a pro rata allocation to each Outstanding Series (based on the
Invested Percentage for such Series) of a portion (as determined in clause
(iii) below) of each such positive amount and (B) an allocation to the
Exchangeable Company Interest of the remaining portion of each such positive
amount.
(iii) With respect to each portion of the Allocable
Charged-Off Amount and the Allocable Recoveries Amount which is allocated to
an Outstanding Series pursuant to subsection 3.01(e)(ii), the Trustee shall
(in accordance with the written direction of the Servicer) apply each such
amount to such Series in accordance with the related Supplement for such
Series.
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(f) Allocations for the Exchangeable Company Interest. Until
the occurrence and continuation of an Early Amortization Period, on each
Business Day and, after the occurrence and continuation of an Early
Amortization Period and until the Trust Termination Date, on each Distribution
Date, after making all allocations required pursuant to subsection 3.01(d),
the Trustee shall (in accordance with the written direction of the Servicer)
transfer, using its reasonable efforts to transfer within two hours of receipt
of the Aggregate Daily Collections and the Daily Report and, if the Aggregate
Daily Collections and the Daily Report are received by the Trustee no later
than the close of business, New York City time, making such transfer no later
than the close of business, New York City time, on such Business Day, the
amounts on deposit in the Company Collection Subaccount to the holder of the
Exchangeable Company Interest or to such accounts or such Persons as the
holder of the Exchangeable Company Interest may direct in writing (which
direction may consist of standing instructions provided by the holder of the
Exchangeable Company Interest that shall remain in effect until changed by the
holder of the Exchangeable Company Interest in writing); provided, however,
that a transfer for purposes of this subsection 3.01(f) shall be deemed to
have occurred at such time as the Trustee instructs the Federal Reserve Bank
of New York of the outgoing amount; provided further that a failure of the
Trustee to transfer funds by the close of business, New York City time, shall
not be a breach of this subsection 3.01(f) if a Trustee Force Majeure Delay
occurs; in such event the Trustee shall use its reasonable efforts to transfer
funds within a reasonable time.
(g) Setoff. In addition to the provisions of Section 8.05,
(i) if the Company shall fail to make a payment as provided in this Agreement
or any Supplement, the Servicer or the Trustee may set off and apply any
amounts otherwise payable to the Company under any Pooling and Servicing
Agreement. The Company hereby waives demand, notice or declaration of such
setoff and application; provided that notice will promptly be given to the
Company of such setoff and application; provided further that failure to give
such notice shall not affect the validity of such setoff; and (ii) in the
event the Servicer shall fail to make a payment as provided in any Pooling and
Servicing Agreement, the Trustee may set off and apply any amounts otherwise
payable to the Servicer in its capacity as Servicer under the Transaction
Documents on account of such obligation. The Servicer hereby waives demand,
notice or declaration of such setoff and application; provided that notice
will promptly be given to the Servicer of such
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setoff; provided further that failure to give such notice shall not affect the
validity of such setoff.
(h) Allocation and Application of Funds. The
Servicer shall direct the Trustee in writing (which may be
given in the form of the Daily Reports and the Monthly
Settlement Statements) to apply all Collections with respect
to the Receivables as described in this Article III and in
the Supplement with respect to each Outstanding Series. The
Servicer shall direct the Trustee in writing to pay
Collections to the holder of the Exchangeable Company
Interest to the extent such Collections are allocated to the
Exchangeable Company Interest under subsection 3.01(f) and
as otherwise provided in Article III. Unless otherwise
provided in one or more Supplement, if the Trustee receives
any Daily Report at or before 1:00 p.m., New York City time,
on any Business Day, the Trustee shall make any applications
of funds required thereby on the same Business Day and
otherwise on the next succeeding Business Day.
THE REMAINDER OF ARTICLE III SHALL BE SPECIFIED
IN THE SUPPLEMENT WITH RESPECT TO EACH SERIES.
SUCH REMAINDER SHALL BE APPLICABLE ONLY TO THE
SERIES RELATING TO THE SUPPLEMENT IN WHICH
SUCH REMAINDER APPEARS.
ARTICLE IV
ARTICLE IV IS RESERVED
AND MAY BE SPECIFIED IN ANY SUPPLEMENT
WITH RESPECT TO THE SERIES RELATING THERETO.
ARTICLE V
The Investor Certificates and
Exchangeable Company Interest
SECTION 5.01. The Investor Certificates. The Investor
Certificates of each Series and any Class thereof shall be in fully registered
form and shall be substantially in the form of the exhibits with respect
thereto attached to the applicable Supplement. The Investor Certificates
shall, upon issue, be executed and delivered by the Company to the Trustee for
authentication and redelivery as provided in Section 5.02. Except as otherwise
set forth as to any Series or Class in the related Supplement, the Investor
Certificates shall be issued in minimum denominations of
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$_______ and in integral multiples of $100,000 in excess thereof. Unless
otherwise specified in any Supplement for any Series, the Investor
Certificates shall be issued upon initial issuance as a single global
certificate in an original principal amount equal to the Initial Invested
Amount with respect to such Series. The Company is hereby authorized to
execute and deliver each Investor Certificate and any documents related
thereto on behalf of the Trust. Each Investor Certificate shall be executed by
manual or facsimile signature on behalf of the Company by a Responsible
Officer. Investor Certificates bearing the manual or facsimile signature of
the individual who was, at the time when such signature was affixed,
authorized to sign on behalf of the Company or the Trustee shall not be
rendered invalid, notwithstanding that such individual has ceased to be so
authorized prior to or on the date of the authentication and delivery of such
Investor Certificates or does not hold such office at the date of such
Investor Certificates. No Investor Certificate shall be entitled to any
benefit under this Agreement, or be valid for any purpose, unless there
appears on such Investor Certificate a certificate of authentication
substantially in the form provided for herein executed by or on behalf of the
Trustee by the manual signature of a duly authorized signatory, and such
certificate of authentication upon any Investor Certificate shall be
conclusive evidence, and the only evidence, that such Investor Certificate has
been duly authenticated and delivered hereunder. All Investor Certificates
shall be dated the date of their authentication but failure to do so shall not
render them invalid.
SECTION 5.02. Authentication of Investor Certificates. The
Trustee shall authenticate and deliver the initial Series of Investor
Certificates that is issued upon the written order of the Company in a form
reasonably satisfactory to the Trustee, to the holders of the initial Series
of Investor Certificates, against payment to the Company of the Initial
Invested Amount. The Investor Certificates shall be duly authenticated by or
on behalf of the Trustee in authorized denominations equal to (in the
aggregate) the Initial Invested Amount. Upon a Company Exchange as provided in
Section 5.10 and the satisfaction of certain other conditions specified
therein, the Trustee shall authenticate and deliver the Investor Certificates
of additional Series (with the designation provided in the applicable
Supplement) (or, if provided in any Supplement, the additional Investor
Certificates of an existing Series), upon the written order of the Company, to
the Persons designated in such Supplement. Upon the written order of the
Company, the Investor Certificates of any Series shall
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be duly authenticated by or on behalf of the Trustee, in authorized
denominations equal to (in the aggregate) the Initial Invested Amount of such
Series of Investor Certificates.
SECTION 5.03. Registration of Transfer and Exchange of
Investor Certificates. (a) The Trustee shall cause to be kept at the office or
agency to be maintained by a transfer agent and registrar (which may be the
Trustee) (the "Transfer Agent and Registrar") in accordance with the
provisions of Section 8.16 a register (the "Certificate Register") in which,
subject to such reasonable regulations as the Trustee may prescribe, the
Transfer Agent and Registrar shall provide for the registration of the
Investor Certificates and of transfers and exchanges of the Investor
Certificates as herein provided. The Company hereby appoints The Chase
Manhattan Bank as Transfer Agent and Registrar for the purpose of registering
the Investor Certificates and transfers and exchanges of the Investor
Certificates as herein provided. The Chase Manhattan Bank shall be permitted
to resign as Transfer Agent and Registrar upon 30 days' prior written notice
to the Company and the Servicer; provided, however, that such resignation
shall not be effective and The Chase Manhattan Bank shall continue to perform
its duties as Transfer Agent and Registrar until the Trustee has appointed a
successor Transfer Agent and Registrar reasonably acceptable to the Company
and such successor Transfer Agent and Registrar has accepted such appointment.
The provisions of Sections 8.01, 8.02, 8.03, 8.05 and 10.19 shall apply to The
Chase Manhattan Bank (or the Trustee to the extent it is so acting) also in
its role as Transfer Agent or Registrar, as the case may be, for so long as
The Chase Manhattan Bank (or the Trustee to the extent it is so acting) shall
act as Transfer Agent or Registrar, as the case may be.
The Company hereby agrees to provide the Trustee from time
to time sufficient funds, on a timely basis and in accordance with and subject
to Section 8.05, for the payment of any reasonable compensation payable to the
Transfer Agent and Registrar for its services under this Section 5.03 and
under Section 5.10. The Trustee hereby agrees that, upon the receipt of such
funds from the Company, it shall pay the Transfer Agent and Registrar such
amounts.
Upon surrender for registration of transfer of any Investor
Certificate at any office or agency of the Transfer Agent and Registrar
maintained for such purpose, the Company shall execute, and the Trustee shall,
upon the written order of the Company, authenticate and deliver, in the name
of the
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designated transferee or transferees, one or more new Investor Certificates in
authorized denominations of the same Series representing like aggregate
Fractional Undivided Interests and which bear numbers that are not
contemporaneously outstanding.
At the option of an Investor Certificateholder, Investor
Certificates may be exchanged for other Investor Certificates of the same
Series in authorized denominations of like aggregate Fractional Undivided
Interests, bearing numbers that are not contemporaneously outstanding, upon
surrender of the Investor Certificates to be exchanged at any such office or
agency of the Transfer Agent and Registrar maintained for such purpose.
Whenever any Investor Certificates of any Series are so
surrendered for exchange, the Company shall execute, and the Trustee shall,
upon the written order of the Company, authenticate and (unless the Transfer
Agent and Registrar is different from the Trustee, in which case the Transfer
Agent and Registrar shall) deliver, the Investor Certificates of such Series
which the Investor Certificateholder making the exchange is entitled to
receive. Every Investor Certificate presented or surrendered for registration
of transfer or exchange shall be accompanied by a written instrument of
transfer, with sufficient instructions, duly executed by the Investor
Certificateholder thereof or his attorney-in-fact duly authorized in writing
delivered to the Trustee (unless the Transfer Agent and Registrar is different
from the Trustee, in which case to the Transfer Agent and Registrar) and
complying with any requirements set forth in the applicable Supplement.
No service charge shall be made for any registration of
transfer or exchange of Investor Certificates, but the Transfer Agent and
Registrar may require any Investor Certificateholder that is transferring or
exchanging one or more Investor Certificates to pay a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Investor Certificates.
All Investor Certificates surrendered for registration of
transfer and exchange shall be canceled and disposed of in a customary manner
satisfactory to the Trustee.
The Company shall execute and deliver Investor
Certificates to the Trustee or the Transfer Agent and
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Registrar in such amounts and at such times as are necessary to enable the
Trustee and the Transfer Agent and Registrar to fulfill their respective
responsibilities under this Agreement and the Investor Certificates.
(b) The Transfer Agent and Registrar will maintain at its
expense in the Borough of Manhattan, The City of New York and, subject to
subsection 5.03(a), if specified in the related Supplement for any Series, any
other city designated in such Supplement, an office or offices or agency or
agencies where Investor Certificates may be surrendered for registration or
transfer or exchange.
(c) Unless otherwise stated in any related Supplement,
registration of transfer of Investor Certificates containing a legend relating
to restrictions on transfer of such Investor Certificates (which legend shall
be set forth in the Supplement relating to such Investor Certificates) shall
be effected only if the conditions set forth in the related Supplement are
complied with.
Investor Certificates issued upon registration or transfer
of, or in exchange for, Investor Certificates bearing the legend referred to
above shall also bear such legend unless the Company, the Servicer, the
Trustee and the Transfer Agent and Registrar receive an Opinion of Counsel
satisfactory to each of them, to the effect that such legend may be removed.
SECTION 5.04. Mutilated, Destroyed, Lost or Stolen Investor
Certificates. If (a) any mutilated Investor Certificate is surrendered to the
Transfer Agent and Registrar, or the Transfer Agent and Registrar receives
evidence to its satisfaction of the destruction, loss or theft of any Investor
Certificate and (b) there is delivered to the Transfer Agent and Registrar,
the Trustee and the Company such security or indemnity as may be required by
them to save the Trust and each of them harmless, then, in the absence of
actual notice to the Trustee or Transfer Agent and Registrar that such
Investor Certificate has been acquired by a bona fide purchaser, the Company
shall execute and, upon the written request of the Company, the Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Investor Certificate, a new Investor Certificate of
like tenor and aggregate Fractional Undivided Interest and bearing a number
that is not contemporaneously outstanding. In connection with the issuance of
any new Investor Certificate under this Section 5.04, the Trustee or the
Transfer Agent and Registrar may require the payment by the Investor
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Certificateholder of a sum sufficient to cover any tax or other governmental
expenses (including the fees and expenses of the Trustee and Transfer Agent
and Registrar) connected therewith. Any duplicate Investor Certificate issued
pursuant to this Section 5.04 shall constitute complete and indefeasible
evidence of ownership in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Investor Certificate shall be found at any time.
SECTION 5.05. Persons Deemed Owners. At all times prior to
due presentation of an Investor Certificate for registration of transfer, the
Company, the Trustee, the Paying Agent, the Transfer Agent and Registrar, any
Agent and any agent of any of them may treat the Person in whose name any
Investor Certificate is registered as the owner of such Investor Certificate
for the purpose of receiving distributions pursuant to Article IV of the
related Supplement and for all other purposes whatsoever, and neither the
Trustee, the Paying Agent, the Transfer Agent and Registrar nor any agent of
any of them shall be affected by any notice to the contrary. Notwithstanding
the foregoing provisions of this Section 5.05, in determining whether the
Investor Certificateholders of the requisite Fractional Undivided Interests
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Investor Certificates owned by the Company, the Servicer or
any Affiliate thereof, shall be disregarded and deemed not to be outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Investor Certificates which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Investor Certificates
so owned by the Company, the Servicer or any Affiliate thereof which have been
pledged in good faith shall not be disregarded and may be regarded as
outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Investor Certificates and that
the pledgee is not the Company, the Servicer or any Affiliate thereof.
SECTION 5.06. Appointment of Paying Agent. The
Paying Agent shall make distributions to Investor
Certificateholders from the Collection Account (and/or any
other account or accounts maintained for the benefit of
Investor Certificateholders as specified in the related
Supplement for any Series) pursuant to Articles III and IV.
The Trustee may revoke such power and remove the Paying
Agent if the Trustee determines in its sole discretion that
the Paying Agent shall have failed to perform its
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obligations under this Agreement in any material respect. Unless otherwise
specified in the related Supplement for any Series and with respect to such
Series, the Paying Agent shall initially be The Chase Manhattan Bank and any
co-paying agent chosen by The Chase Manhattan Bank. Each Paying Agent shall
have a combined capital and surplus of at least $50,000,000. The Paying Agent
shall be permitted to resign upon 30 days' prior written notice to the
Trustee. In the event that the Paying Agent shall so resign, the Trustee shall
appoint a successor to act as Paying Agent (which shall be a depositary
institution or trust company) reasonably acceptable to the Company which
appointment shall be effective on the date on which the Person so appointed
gives the Trustee written notice that it accepts the appointment. Any
resignation or removal of the Paying Agent and appointment of successor Paying
Agent pursuant to this Section 5.06 shall not become effective until
acceptance of appointment by the successor Paying Agent, as provided in this
Section 5.06. The Trustee shall cause such successor Paying Agent or any
additional Paying Agent appointed by the Trustee to execute and deliver to the
Trustee an instrument in which such successor Paying Agent or additional
Paying Agent shall agree with the Trustee that as Paying Agent, such successor
Paying Agent or additional Paying Agent will hold all sums, if any, held by it
for payment to the Investor Certificateholders in trust for the benefit of the
Investor Certificateholders entitled thereto until such sums shall be paid to
such Investor Certificateholders. The Paying Agent shall return all unclaimed
funds to the Trustee and upon removal of a Paying Agent such Paying Agent
shall also return all funds in its possession to the Trustee. The provisions
of Sections 8.01, 8.02, 8.03, 8.05 and 10.19 shall apply to The Chase
Manhattan Bank (or the Trustee to the extent it is so acting) also in its role
as Paying Agent, for so long as The Chase Manhattan Bank (or the Trustee to
the extent it is so acting) shall act as Paying Agent. Any reference in this
Agreement to the Paying Agent shall include any co-paying agent unless the
context requires otherwise.
The Company hereby agrees to provide the Trustee from time
to time sufficient funds, on a timely basis and in accordance with and subject
to Section 8.05, for the payment of any reasonable compensation payable to the
Paying Agent for its services under this Section 5.06. The Trustee hereby
agrees that, upon the receipt of such funds from the Company, it shall pay the
Paying Agent such amounts.
SECTION 5.07. Access to List of Investor
Certificateholders' Names and Addresses. The Trustee will
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furnish or cause to be furnished by the Transfer Agent and Registrar to the
Company, the Servicer or the Paying Agent, within 10 Business Days after
receipt by the Trustee of a request therefor from the Company, the Servicer or
the Paying Agent, respectively, in writing, a list of the names and addresses
of the Investor Certificateholders as then recorded by or on behalf of the
Trustee. The reasonable costs and expenses incurred in connection with the
provision of such list shall constitute Program Costs under the Supplement for
the applicable Series. If three or more Investor Certificateholders of record
or any Investor Certificateholder of any Series or a group of Investor
Certificateholders of record representing Fractional Undivided Interests
aggregating not less than 10% of the Invested Amount of the related
Outstanding Series (the "Applicants") apply in writing to the Trustee, and
such application states that the Applicants desire to communicate with other
Investor Certificateholders of any Series with respect to their rights under
this Agreement or under the Investor Certificates and is accompanied by a copy
of the communication which such Applicants propose to transmit, then the
Trustee, after having been adequately indemnified by such Applicants for its
costs and expenses, shall transmit or shall cause the Transfer Agent and
Registrar to transmit, such communication to the Investor Certificateholders
reasonably promptly after the receipt of such application.
Every Investor Certificateholder, by receiving and holding
an Investor Certificate, agrees with the Trustee that neither the Trustee, the
Transfer Agent and Registrar, nor any of their respective agents, officers,
directors or employees shall be held accountable by reason of the disclosure
or mailing of any such information as to the names and addresses of the
Investor Certificateholders hereunder, regardless of the sources from which
such information was derived.
As soon as practicable following each Record Date, the
Trustee shall provide to the Paying Agent or its designee, a list of Investor
Certificateholders in such form as the Paying Agent may reasonably request.
SECTION 5.08. Authenticating Agent. (a) The
Trustee may appoint one or more authenticating agents with
respect to the Investor Certificates which shall be
authorized to act on behalf of the Trustee in authenticating
the Investor Certificates in connection with the issuance,
delivery, registration of transfer, exchange or repayment of
the Investor Certificates. Whenever reference is made in
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this Agreement to the authentication of Investor Certificates by the Trustee
or the Trustee's certificate of authentication, such reference shall be deemed
to include authentication on behalf of the Trustee by an authenticating agent
and a certificate of authentication executed on behalf of the Trustee by an
authenticating agent.
(b) Any institution succeeding to the corporate trust
business of an authenticating agent shall continue to be an authenticating
agent without the execution or filing of any paper or any further act on the
part of the Trustee or such authenticating agent.
(c) An authenticating agent may at any time resign by giving
written notice of resignation to the Trustee. Upon the receipt by the Trustee
of any such notice of resignation and upon the giving of any such notice of
termination by the Trustee, the Trustee shall immediately give notice of such
resignation or termination to the Company. Any resignation of an
authenticating agent shall not become effective until acceptance of
appointment by the successor authenticating agent as provided in this Section
5.08. The Trustee may at any time terminate the agency of an authenticating
agent by giving notice of termination to such authenticating agent. Upon
receiving such a notice of resignation or upon such a termination, or in case
at any time an authenticating agent shall cease to be acceptable to the
Trustee, the Trustee promptly may appoint a successor authenticating agent.
Any successor authenticating agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
authenticating agent. No successor authenticating agent (other than an
Affiliate of the Trustee) shall be appointed unless reasonably acceptable to
the Trustee and the Company.
(d) The Company hereby agrees to provide the Trustee from
time to time sufficient funds, on a timely basis and in accordance with and
subject to Section 8.05, for the payment of any reasonable compensation
payable to each authenticating agent for its services under this Section 5.08.
The Trustee hereby agrees that, upon the receipt of such funds from the
Company it shall pay each authenticating agent such amounts.
(e) The provisions of Sections 8.01, 8.02, 8.03 and 8.05
shall be applicable to any authenticating agent.
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(f) Pursuant to an appointment made under this Section 5.08,
the Investor Certificates may have endorsed thereon, in lieu of the Trustee's
certificate of authentication, an alternate certificate of authentication in
substantially the following form:
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Pooling Agreement
"This is one of the Investor Certificates described in the
Pooling Agreement dated as of October 29, 1997, among AAM Receivables
Corp., American Axle & Manufacturing, Inc., as Servicer, and The Chase
Manhattan Bank, as Trustee.
----------------
as Authenticating Agent
for the Trustee
By
---------------------"
Authorized Signatory
SECTION 5.09. Tax Treatment. It is the intent of the
Servicer, the Company, the Investor Certificateholders and the Trustee that
for U.S. Federal, state and local income and franchise tax purposes and for
Michigan single business tax and intangibles tax purposes, the Investor
Certificates will be considered as indebtedness of the Company secured by the
Trust Assets and the Trust will be treated as a mere security device or
arrangement. The Company, the Servicer and the Trustee, by entering into this
Agreement, each Investor Certificateholder, by its acceptance of its Investor
Certificate, and each beneficial owner of an Investor Certificate (or any
interest therein), by acquiring a beneficial ownership interest in such
Investor Certificate (or interest) agree to treat the Investor Certificates
and the Trust in such manner for such purposes. The provisions of this
Agreement and all related Transaction Documents shall be construed to further
these intentions of the parties. Each Certificateholder, by acceptance of its
Investor Certificate, and each beneficial owner of an Investor Certificate, by
its acquisition of a beneficial interest in an Investor Certificate, agree to
be bound by the provisions of this Section 5.09 and each Certificateholder
agrees that it will cause any beneficial owner of an Investor Certificate to
comply with this Section 5.09. This Section 5.09 shall survive the termination
of this Agreement and shall be binding on all transferees of any of the
foregoing persons.
SECTION 5.10. Exchangeable Company Interest.
(a) The Company may decrease the amount of the Exchangeable
Company Interest in exchange for (i) an increase in the
Invested Amount of a Class of Investor Certificates of an
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Pooling Agreement
Outstanding Series and an increase in any related Subordinated Company
Interest in connection with an issuance of additional Investor Certificates of
such Outstanding Series or (ii) one or more newly issued Series of Investor
Certificates and any related newly issued Subordinated Company Interest (a
"New Series") (any such exchange, a "Company Exchange"). (A Company Exchange
shall not be necessary in connection with an increase in the Invested Amount
of any Investor Certificates issued in a Series with an Invested Amount that
may increase or decrease from time to time. Such Investor Certificates are
expected to be designated as "Variable Funding Certificates" or "VFC
Certificates".) The Company may perform a Company Exchange by notifying the
Trustee, in writing at least three days in advance (an "Exchange Notice") of
the date upon which the Company Exchange is to occur (an "Exchange Date"). Any
Exchange Notice shall state the designation of any Series (and/or class, if
applicable) to be issued (or supplemented) on the Exchange Date and, with
respect to each such Series (and/or class, if applicable): (a) its additional
or Initial Invested Amount, as the case may be, if any, which in the aggregate
at any time may not be greater than the current principal amount of the
Exchangeable Company Interest, if any, at such time, (b) its Certificate Rate
(or the method for allocating interest payments or other cash flow to such
Series), if any, and (c) whether such New Series will be a companion Series to
an Outstanding Series (an "Existing Companion Series", together with the New
Series, a "Companion Series"). On the Exchange Date, the Trustee shall (i)
authenticate and deliver any Investor Certificates evidencing an increase in
the Invested Amount of a Class of Investor Certificates or a newly issued
Series and (ii) permit the issuance of any related Subordinated Company
Interest, in each case, only upon delivery by the Company to the Trustee of
the following (together with the delivery by the Company to the Trustee of any
additional agreements, instruments or other documents as are specified in the
related Supplement): (a) a Supplement executed by the Company and specifying
the Principal Terms of such Series (provided that no such Supplement shall be
required for any increase in the Invested Amount of a Class of Investor
Certificates, and any related increase in the related Subordinated Company
Interest, unless it is so required by the related Supplement), (b) a Tax
Opinion addressed to the Trustee and the Trust, (c) a General Opinion
addressed to the Trustee and the Trust, (d) an Officer's Certificate
certifying that all conditions precedent to the authentication and delivery of
such Investor Certificates have been satisfied and upon which Officer's
Certificate the Trustee may conclusively rely,
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Pooling Agreement
(e) written confirmation from each Rating Agency that the Company Exchange
will not result in the Rating Agency's reducing or withdrawing its rating on
any then Outstanding Series or any Class of any such Outstanding Series rated
by it, (f) written instructions of an officer of the Company specifying the
amount, Series, Investor Certificates and other Interests to be issued with
respect to such Company Exchange and (g) the applicable Investor Certificates
if necessary. Upon delivery of the items listed in clauses (a) through (g)
above, the Trustee shall cancel the applicable tendered Investor Certificates
and Subordinated Company Interest (and shall note such transaction in the
Subordinated Interest Register), as the case may be, and issue, as provided
above, such Series of Investor Certificates and allow the issuance of such
Subordinated Company Interest (and shall note such transaction in the
Subordinated Interest Register), if applicable, dated the Exchange Date. The
Trustee shall cause to be kept at the office or agency to be maintained by the
Transfer Agent and Registrar in accordance with the provisions of Section 8.16
a register (the "Exchange Register") in which, subject to such reasonable
regulations as the Trustee may prescribe, the Transfer Agent and Registrar
shall record all Company Exchanges and the amount of the Exchangeable Company
Interest following any such Company Exchange. There is no limit to the number
of Company Exchanges that the Company may perform under this Agreement. If the
Company shall, on any Exchange Date, retain any Investor Certificates issued
on such Exchange Date, it shall, prior to transferring any such Investor
Certificates to another Person, obtain a Tax Opinion. Additional restrictions
relating to a Company Exchange may be set forth in any Supplement.
(b) Upon any Company Exchange, the Trustee, in accordance
with the written directions of the Company, shall issue to the Company under
Section 5.01, for execution and redelivery to the Trustee for authentication
under Section 5.02, (i) one or more Investor Certificates representing an
increase in the Invested Amount of an Outstanding Series, or (ii) one or more
new Series of Investor Certificates. Any such Investor Certificates shall be
substantially in the form specified in the applicable Supplement and each
shall bear, upon its face, the designation for such Series to which each such
certificate belongs so selected by the Company.
(c) In conjunction with a Company Exchange, the parties
hereto shall, except as otherwise provided in subsection (a) above, execute a
supplement to this Agreement, which shall define, with respect to any
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Pooling Agreement
additional Investor Certificates or newly issued Series, as the case may be:
(i) its name or designation, (ii) its additional or initial principal amount,
as the case may be (or method for calculating such amount), (iii) its coupon
rate (or formula for the determination thereof), (iv) the interest payment
date or dates and the date or dates from which interest shall accrue, (v) the
method for allocating Collections to Holders including the applicable Investor
Percentage, (vi) the names of any accounts to be used by such Series and the
terms governing the operation of any such accounts, (vii) the issue and terms
of a letter of credit or other form of Enhancement, if any, with respect
thereto, (viii) the terms on which the certificates of such Series may be
repurchased by the Company or may be remarketed to other investors, (ix) the
Series Termination Date, (x) any deposit account maintained for the benefit of
Holders, (xi) the number of Classes of such Series, and if more than one
Class, the rights and priorities of each such Class, (xii) the rights of the
holder of the Exchangeable Company Interest that have been transferred to the
holders of such Series, (xiii) the designation of any Series Accounts and the
terms governing the operation of any such Series Accounts, (xiv) provisions
acceptable to the Trustee concerning the payment of the Trustee's fees and
expenses and (xv) other relevant terms (all such terms, the "Principal Terms"
of such Series). The Supplement executed in connection with the Company
Exchange shall contain administrative provisions which are reasonably
acceptable to the Trustee.
(d) In order for a New Series to be part of a Companion
Series, the Supplement for the related Existing Companion Series must provide
for or permit the Amortization Period to commence on the Issuance Date for
such New Series, and on or prior to the Issuance Date for the New Series, the
Servicer and the Company shall take all actions, if any, necessary to cause
the Amortization Period for such Existing Companion Series to commence on such
Issuance Date. The proceeds from the issuance of the New Series shall be
deposited by the Company in the applicable Series Principal Collection
Sub-subaccount and the Company shall, on the Issuance Date for such New
Series, deposit into the applicable Series Non-Principal Sub-subaccount the
amount of interest that will accrue on the New Series over a period specified
in the related Supplement for such New Series. On each day on which principal
is paid to the holders of the Existing Companion Series, the Trustee shall
distribute to the Company from the applicable Series Principal Collection
Sub-subaccount of the New Series an amount (up to the amount of available
funds in such account) equal to the amount
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Pooling Agreement
distributed on such day to the Investor Certificateholders of any Existing
Companion Series; provided that, after giving effect to such distributions,
the Aggregate Receivables Amount shall equal or exceed the sum of (i) the
Target Receivables Amount with respect to such Existing Companion Series on
such day, plus (ii) the Target Receivables Amount with respect to the New
Series on such day, plus (iii) the Target Receivables Amount with respect to
any other Outstanding Series on such day; provided further that the Trustee
may conclusively rely on the calculations of the Servicer of such amounts.
(e) The Company shall not transfer, assign, exchange or
otherwise dispose of the Exchangeable Company Interest or any Subordinated
Company Interest without (i) the prior satisfaction of the Rating Agency
Condition and (ii) delivery of a Tax Opinion. If the Company shall transfer,
assign, exchange or otherwise dispose of all or any portion of the
Exchangeable Company Interest or any Subordinated Company Interest, in
accordance with the preceding sentence, the Transfer Agent and Registrar shall
record the transfer, assignment, exchange or other disposition of (i) the
Exchangeable Company Interest in the Exchange Register and (ii) any
Subordinated Company Interest in a register maintained by the Transfer Agent
and Registrar at its office or agency (the "Subordinated Interest Register").
Any Holder who wishes to transfer, assign, exchange or otherwise dispose of
all or any portion of the Exchangeable Company Interest or any Subordinated
Company Interest held by it shall deliver instructions and a written
instrument of transfer, with sufficient instructions, duly executed by the
Holder or his attorney-in-fact duly authorized in writing delivered to the
Trustee (unless the Transfer Agent and Registrar is different from the
Trustee, in which case to the Transfer Agent and Registrar). No service charge
shall be made for any registration of transfer or exchange of all or any
portion of the Exchangeable Company Interest or any Subordinated Company
Interest, but the Transfer Agent and Registrar may require any Holder that is
transferring or exchanging all or any portion of the Exchangeable Company
Interest or any Subordinated Company Interest to pay a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any
transfer or exchange of all or any portion of the Exchangeable Company
Interest or the Subordinated Company Interest. Notwithstanding any other
provision contained herein or in any Supplement, none of the Trustee, the
Registrar, the Transfer Agent, the Authenticating Agent, or agent of any of
them shall have any obligation or duty to monitor, determine or inquire as to
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Pooling Agreement
the compliance with any restriction or requirement imposed hereunder or under
any Supplement with respect to the transfer, registration or authentication of
any Exchangeable Company Interest or Subordinated Company Interest (each, an
"Uncertificated Interest"), or any interest therein, other than to require the
delivery of the certifications or opinions of counsel described in this
Section 5.10 or contained in any such Supplement and to comply with the
related Exchange Notice to be delivered pursuant to Section 5.10(a) or the
written instructions delivered to the Trustee pursuant to Section 5.10(e)
hereof. At all times, the Company, the Trustee, the Paying Agent, the Transfer
Agent, and the Registrar, any agent of any of them may treat the Person in
whose name any Uncertificated Interest is registered in the Exchange Register
or the Subordinated Interest Register, as applicable, as the owner of such
Uncertificated Interest for all purposes whatsoever hereunder or under any
Supplement, and none of the Trustee, the Paying Agent, the Transfer Agent and
Registrar and no agent of any of them shall be affected by any notice to the
contrary.
(f) Except as specified in any Supplement for a related
Series, all Investor Certificates of any Series shall be equally and ratably
entitled as provided herein to the benefits hereof without preference,
priority or distinction on account of the actual time or times of
authentication and delivery, all in accordance with the terms and provisions
of this Agreement and the applicable Supplement.
SECTION 5.11. Book-Entry Certificates. If specified in any
related Supplement, the Investor Certificates, or any portion thereof, upon
original issuance, shall be issued in the form of one or more typewritten
Investor Certificates representing the Book- Entry Certificates, to be
delivered to the depository specified in such Supplement (the "Depository")
which shall be the Clearing Agency, specified by, or on behalf of, the Company
for such Series. The Investor Certificates shall initially be registered on
the Certificate Register in the name of the nominee of such Clearing Agency,
and no Certificate Book-Entry Holder will receive a definitive certificate
representing such Certificate Book-Entry Holder's interest in the Investor
Certificates, except as provided in Section 5.13. Unless and until definitive,
fully registered Investor Certificates ("Definitive
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Pooling Agreement
Certificates") have been issued to Investor Certificateholders pursuant to
Section 5.13 or the related Supplement:
(a) the provisions of this Section 5.11 shall be
in full force and effect;
(b) the Company, the Servicer and the Trustee may deal with
each Clearing Agency for all purposes (including the making of
distributions on the Investor Certificates) as the Investor
Certificateholder without respect to whether there has been any actual
authorization of such actions by the Certificate Book- Entry Holders with
respect to such actions;
(c) to the extent that the provisions of this Section 5.11
conflict with any other provisions of this Agreement, the provisions of
this Section 5.11 shall control; and
(d) the rights of Certificate Book-Entry Holders shall be
exercised only through the Clearing Agency and the related Clearing
Agency Participants and shall be limited to those established by law and
agreements between such related Certificate Book-Entry Holders and the
Clearing Agency and/or the Clearing Agency Participants. Pursuant to the
Depository Agreement, the initial Clearing Agency will make book-entry
transfers among the Clearing Agency Participants and receive and transmit
distributions of principal and interest on the Investor Certificates to
such Clearing Agency Participants.
Notwithstanding the foregoing, no Class or Series of
Investor Certificates may be issued as Book-Entry Certificates (but, instead,
shall be issued as Definitive Certificates) unless at the time of issuance of
such Class or Series, the Company and the Trustee receive an opinion of
independent counsel that the Investor Certificates of such Class or Series
will be treated as indebtedness for Federal income tax purposes.
SECTION 5.12. Notices to Clearing Agency. Whenever notice or
other communication to the Investor Certificateholders is required under this
Agreement, unless and until Definitive Certificates shall have been issued to
Certificate Book-Entry Holders pursuant to Section 5.13, the Trustee shall
give all such notices and communications specified herein to be given to the
Investor Certificateholders to the Clearing Agencies.
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Pooling Agreement
SECTION 5.13. Definitive Certificates. If (a) (i) the
Company advises the Trustee in writing that any Clearing Agency is no longer
willing or able to properly discharge its responsibilities under the
applicable Depository Agreement, and (ii) the Company is unable to locate a
qualified successor, (b) the Company, at its option, advises the Trustee in
writing that it elects to terminate the book-entry system through the Clearing
Agency or (c) after the occurrence of a Servicer Default or an Early
Amortization Event, Certificate Book-Entry Holders representing Fractional
Undivided Interests aggregating more than 50% of the Invested Amount held by
such Certificate Book-Entry Holders of each affected Series then issued and
outstanding advise the Clearing Agency through the Clearing Agency
Participants in writing, and the Clearing Agency shall so notify the Trustee,
that the continuation of a book-entry system through the Clearing Agency is no
longer in the best interests of the Certificate Book-Entry Holders, the
Trustee shall notify the Clearing Agency, which shall be responsible to notify
the Certificate Book-Entry Holders, of the occurrence of any such event and of
the availability of Definitive Certificates to Certificate Book-Entry Holders
requesting the same. Upon surrender to the Trustee of the Book-Entry
Certificates by the Clearing Agency, accompanied by registration instructions
from the Clearing Agency for registration, the Trustee shall issue the
Definitive Certificates. Neither the Company nor the Trustee shall be liable
for any delay in delivery of such instructions and may conclusively rely on,
and shall be protected in relying on, such instructions.
ARTICLE VI
Other Matters Relating to the Company
SECTION 6.01. Liability of the Company. The Company shall be
liable for all obligations, covenants, representations and warranties of the
Company arising under or related to this Agreement or any Supplement. Except
as provided in the preceding sentence and otherwise herein, the Company shall
be liable only to the extent of the obligations specifically undertaken by it
in its capacity as Company hereunder.
SECTION 6.02. Limitation on Liability of the Company.
Subject to Sections 6.01 and 10.19, neither the Company nor any of its
directors or officers or employees or agents, in their capacity as transferor
of Receivables and Related Property hereunder, shall be under any liability to
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Pooling Agreement
the Trust, the Trustee, the Holders or any other Person for any action taken
or for refraining from the taking of any action pursuant to this Agreement
whether or not such action or inaction arises from express or implied duties
under any Transaction Document; provided, however, that this provision shall
not protect the Company against any liability which would otherwise be imposed
by reason of wilful misconduct, bad faith or negligence in the performance of
any duties or by reason of reckless disregard of any obligations and duties
hereunder. The Company and any director or officer or employee or agent of the
Company may rely in good faith on any document of any kind prima facie
properly executed and submitted by any Person (other than, in the case of the
Company, the Company or the Servicer) respecting any matters arising
hereunder.
ARTICLE VII
Early Amortization Events
SECTION 7.01. Early Amortization Events. Unless modified
with respect to any Series of Investor Certificates by any related Supplement,
if any one of the following events (each, an "Early Amortization Event") shall
occur:
(a) (i) a court having jurisdiction in the premises shall
enter a decree or order for relief in respect of the Company in an
involuntary case under the Bankruptcy Code or any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect (the
Bankruptcy Code and all other such applicable laws being collectively,
"Applicable Insolvency Laws"), which decree or order is not stayed or any
other similar relief shall be granted under any applicable federal or
state law now or hereafter in effect and shall not be stayed; (ii) (A) an
involuntary case is commenced against the Company under any Applicable
Insolvency Law now or hereafter in effect, a decree or order of a court
having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having
similar powers over the Company, or over all or a substantial part of the
property of the Company shall have been entered, an interim receiver,
trustee or other custodian of the Company for all or a substantial part
of the property of the Company is involuntarily appointed, a warrant of
attachment, execution or similar process is issued against any
substantial part of the property of the Company, and (B) any event
referred to in clause (ii)(A) above
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Pooling Agreement
continues for 60 days unless dismissed, bonded or discharged; (iii) the
Company shall at its request have a decree or an order for relief entered
with respect to it or commence a voluntary case under any Applicable
Insolvency Law, consent to the entry of a decree or an order for relief
in an involuntary case, or to the conversion of an involuntary case to a
voluntary case, under any Applicable Insolvency Law, consent to the
appointment of or taking possession by a receiver, trustee or other
custodian for all or a substantial part of its property; (iv) the making
by the Company of any general assignment for the benefit of creditors; or
(v) the Board of Directors of the Company adopts any resolution or
otherwise authorizes action to approve any of the foregoing;
(b) the Trust or the Company shall become an
"investment company" within the meaning of the 1940 Act;
(c) the Trust shall receive a written notice from the
Internal Revenue Service taking the position that the Trust should be
characterized for United States federal income tax purposes as a
"publicly traded partnership" or as an association taxable as a
corporation and counsel to the Company cannot provide an opinion that
such claim is without merit; or
(d) the Trustee shall be appointed Successor Servicer
pursuant to the Servicing Agreement;
then, an "Early Amortization Period" with respect to all Outstanding Series
shall commence without any notice or other action on the part of the Trustee
or any Investor Certificateholder immediately upon the occurrence of such
event. The Servicer shall notify each Rating Agency and the Trustee in writing
of the occurrence of any Early Amortization Period. Upon the commencement
against the Company of a case, proceeding or other action described in clause
(a)(ii) above, the Company shall cease to purchase Receivables from the Seller
and cease to transfer Receivables to the Trust, until such time, if any, as
such case, proceeding or other action is vacated, discharged, or stayed or
bonded pending appeal. If an Insolvency Event with respect to the Company
occurs, the Company shall immediately cease to transfer Receivables to the
Trust (or, if the Company has previously suspended the transfer of Receivables
to the Trust to comply with the preceding sentence, such suspension shall
become a permanent cessation of the transfer of Receivables to the Trust) and
shall promptly give written notice to the Trustee of such
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Pooling Agreement
occurrence. Notwithstanding any cessation of the transfer to the Trust of
additional Receivables, Receivables transferred to the Trust prior to the
occurrence of such Insolvency Event and Collections in respect of such
Receivables and interest, whenever created, accrued in respect of such
Receivables, shall continue to be a part of the Trust.
Additional Early Amortization Events and the consequences
thereof may be set forth in each Supplement with respect to the Series
relating thereto.
SECTION 7.02. Additional Rights upon the Occurrence of
Certain Events. (a) Within 15 days of the Trustee's receipt of notice of the
occurrence of an Insolvency Event in accordance with Section 7.01, if the
Aggregate Invested Amount and all accrued and unpaid interest thereon have not
been paid to the Investor Certificateholders, then the Trustee, in accordance
with the written directions of the Servicer shall (i) publish a notice in an
Authorized Newspaper that an Insolvency Event has occurred and that the
Trustee intends to sell, dispose of or otherwise liquidate the Receivables and
the other Trust Assets in a commercially reasonable manner and (ii) send
written notice to the Investor Certificateholders and request instructions
from such holders, which notice shall request each Investor Certificateholder
to advise the Trustee in writing that it elects one of the following options:
(A) the Investor Certificateholder wishes the Trustee to instruct the Servicer
not to sell, dispose of or otherwise liquidate the Receivables and the other
Trust Assets, or (B) the Investor Certificateholder wishes the Trustee to
instruct the Servicer to sell, dispose of or otherwise liquidate the
Receivables and the other Trust Assets and to instruct the Servicer to
reconstitute the Trust upon the same terms and conditions set forth herein, or
(C) the Investor Certificateholder refuses to advise the Trustee as to the
specific action the Trustee shall instruct the Servicer to take. If after 60
days from the day notice pursuant to clause (i) above is first published (the
"Publication Date"), the Trustee shall not have received written instructions
of (x) holders of Certificates representing undivided interests in the Trust
aggregating in excess of 50% of the related Invested Amount of each Series (or
in the case of a series having more than one Class of Investor Certificates,
each Class of such series) selecting option (A) above and (y) if the owners of
the Exchangeable Company Interest do not include the Company (and following
the delivery of written notice in the form referred to above by the Company to
such owners), the owners thereof
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Pooling Agreement
representing undivided interests in the Trust aggregating in excess of 50% of
the Company Interest, the Trustee shall instruct the Servicer to proceed to
sell, dispose of, or otherwise liquidate the Receivables and the other Trust
Assets in a commercially reasonable manner and on commercially reasonable
terms, which shall include the solicitation of competitive bids, and the
Servicer shall proceed to consummate the sale, liquidation or disposition of
the Receivables and the other Trust Assets as provided above with the highest
bidder therefor; provided, however, that if the allocable sale price, less all
reasonable fees, expenses and other amounts due hereunder to the Trustee, its
agents and counsel to the Trustee, to be realized from such sale, liquidation
or disposition would be less than the Aggregate Invested Amount plus accrued
and unpaid interest thereon through the Distribution Date next succeeding the
date of such sale, the Trustee must receive the prior unanimous consent of all
the Investor Certificateholders to such sale, liquidation or disposition. The
Company or any of its Affiliates shall be permitted to bid for the Receivables
and the other Trust Assets. In addition, the Company or any of its Affiliates
shall have the right to match any bid by a third person and be granted the
right to purchase the Receivables and the other Trust Assets at such matched
bid price. The Trustee may obtain a prior determination from any such
conservator, receiver or liquidator that the terms and manner of any proposed
sale, disposition or liquidation are commercially reasonable. The provisions
of Sections 7.01 and 7.02 shall be cumulative and not mutually exclusive. The
costs and expenses incurred by the Trustee in such sale shall be reimbursable
to the Trustee as provided in Section 8.05.
(b) The proceeds from the sale, disposition or liquidation
of the Receivables pursuant to subsection (a) above shall be treated as
Collections on the Receivables and such proceeds shall be released to the
Trustee in an amount equal to the amount of any expenses incurred by the
Trustee acting in its capacity either as Trustee or as liquidating agent under
this Section 7.02 that have not otherwise been reimbursed and the remainder,
if any, will be distributed to holders of each Series after immediately being
deposited in the Collection Account, in accordance with the provisions of
Section 3.01(e) and the related Supplement for such Series. After giving
effect to all such distributions, the remainder, if any, shall be allocated to
the Exchangeable Company Interest and shall be released to the holders of the
Exchangeable Company Interest pro rata based on the amount of the Exchangeable
Company Interest held by each holder thereof as indicated in the Exchange
Register.
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Pooling Agreement
ARTICLE VIII
The Trustee
SECTION 8.01. Duties of Trustee. (a) The Trustee, prior to
the occurrence of a Servicer Default or Early Amortization Event of which a
Responsible Officer of the Trustee has actual knowledge and after the curing
of all Servicer Defaults and Early Amortization Events which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in the Pooling and Servicing Agreements or any
Supplement and no implied covenants or obligations shall be read into such
Pooling and Servicing Agreements against the Trustee. If a Servicer Default or
Early Amortization Event of which a Responsible Officer of the Trustee has
actual knowledge occurred (which has not been cured or waived), the Trustee
shall exercise the rights and powers vested in it by any Pooling and Servicing
Agreement or any Supplement and shall use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.
(b) The Trustee may conclusively rely as to the truth of the
statements and the correctness of the opinions expressed therein upon
resolutions, certificates, statements, opinions, reports, documents, orders or
other instruments furnished to the Trustee; provided that (i) in the case of
any of the above which are specifically required to be furnished to the
Trustee pursuant to any provision of the Pooling and Servicing Agreements, the
Trustee shall, subject to Section 8.02, examine them to determine whether they
appear on their face to conform to the requirements of this Agreement and (ii)
in the case of any of the above as to which the Trustee is required to perform
procedures pursuant to the Internal Operating Procedures Memorandum, the
Trustee shall perform said procedures in accordance with the Internal
Operating Procedures Memorandum.
(c) Subject to subsection 8.01(a), no provision of this
Agreement or any Supplement shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act or
its own wilful misconduct; provided, however, that:
(i) the Trustee shall not be liable for an error of judgment
unless it shall be proved that the Trustee was negligent, or acted in bad
faith, in ascertaining the pertinent facts;
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Pooling Agreement
(ii) the Trustee shall not be liable with respect to any
action taken, suffered or omitted to be taken by it in good faith;
(iii) the Trustee shall not be charged with knowledge of any
failure by the Servicer to comply with any of its obligations, unless a
Responsible Officer of the Trustee obtains actual knowledge of such
failure or the Trustee receives written notice of such failure from the
Servicer, any Agent or any Investor Certificateholder;
(iv) the Trustee shall not be charged with knowledge of a
Servicer Default or Early Amortization Event unless a Responsible Officer
of the Trustee obtains actual knowledge of such event or the Trustee
receives written notice of such default or event from the Servicer, any
Agent or any holder of Investor Certificates;
(v) the Trustee shall not be liable for any investment
losses resulting from any investments of funds on deposit in the Accounts
or any subaccounts thereof (provided that such investments are Eligible
Investments); and
(vi) the Trustee shall have no duty to monitor the
performance of the Servicer or the Company, nor shall it have any
liability in connection with malfeasance or nonfeasance by the Servicer;
the Trustee shall have no liability in connection with compliance of the
Servicer or the Company with contractual, statutory or regulatory
requirements related to the Receivables; and the Trustee shall have no
duty to perform, except as otherwise required pursuant to the Internal
Operating Procedures Memorandum, any recalculation or verification of any
calculation with respect to data provided to the Trustee by the Servicer.
(d) The Trustee shall not be required to expend or risk its
own funds or otherwise incur any liability in the performance of any of its
duties under any Pooling and Servicing Agreement or any Supplement or in the
exercise of any of its rights or powers, if there is reasonable ground for
believing that the repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it, and none of the provisions
contained in any Pooling and Servicing Agreement shall in any event require
the Trustee to perform, or be responsible for the manner of performance of,
any obligations of the Servicer under such
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Agreement except during such time, if any, as the Trustee shall be the
successor to, and be vested with the rights, duties, powers and privileges of,
the Servicer in accordance with the terms of such Agreement.
(e) The Trustee shall not be required to advance its own
funds in the performance of any of its duties under any Pooling and Servicing
Agreement or any Supplement or the exercise of any of its rights or powers.
(f) Except as expressly provided in any Pooling and
Servicing Agreement, the Trustee shall have no power to vary the corpus of the
Trust.
(g) Provided that the Servicer and the Company shall have
provided to the Trustee promptly upon request all books, records and other
information reasonably requested by the Trustee and shall have provided the
Trustee with all necessary access to the properties, books and records of the
Servicer and the Company which the Trustee may reasonably require, then within
120 days following the Initial Closing Date, the Trustee shall have (i)
completed the Servicer Site Review and (ii) established the Standby
Liquidation System, and shall have notified the Servicer, each Rating Agency
and each Investor Certificateholder of such events.
(h) The Trustee shall prepare and deliver to the Company and
the Servicer, within 90 days of the Initial Closing Date, the Internal
Operating Procedures Memorandum. From and after such date, the Trustee shall
take such actions as are set forth in the Internal Operating Procedures
Memorandum unless prevented from doing so through no fault of the Trustee.
SECTION 8.02. Rights of the Trustee. Except as otherwise
provided in Section 8.01 and in the Internal Operating Procedures Memorandum:
(a) The Trustee may conclusively rely on and shall be
protected in acting on, or in refraining from acting in accord with, any
resolution, Officers Certificate, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, appraisal, bond, note or other paper or
document believed by it to be genuine and to have been signed or
presented to it pursuant to any Pooling and Servicing Agreement by the
proper party or parties.
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(b) The Trustee may consult with counsel and any Opinion of
Counsel and any advice of such counsel shall be full and complete
authorization and protection in respect of any action taken or suffered
or omitted by it hereunder in good faith and in accordance with such
Opinion of Counsel.
(c) The Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by any Pooling and Servicing
Agreement, or to institute, conduct or defend any litigation hereunder or
in relation hereto, at the request, order or direction of any of the
Holders, pursuant to the provisions of any Pooling and Servicing
Agreement, unless such Holders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby; provided, however,
that nothing contained herein shall relieve the Trustee of the
obligations, upon the occurrence of a Servicer Default or Early
Amortization Event (which has not been cured), to exercise such of the
rights and powers vested in it by any Pooling and Servicing Agreement,
and to use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the
conduct of such person's own affairs. The right of the Trustee to perform
any discretionary act enumerated in this Agreement shall not be construed
as a duty, and the Trustee shall not be answerable for other than its
gross negligence or wilful misconduct in the performance of any such act.
(d) The Trustee shall not be personally liable for any
action taken, suffered or omitted by it in good faith and believed by it
to be authorized or within the discretion or rights or powers conferred
upon it by any Pooling and Servicing Agreement; provided that the Trustee
shall be liable for its gross negligence or wilful misconduct.
(e) The Trustee shall not be bound to make any investigation
into the facts of matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent,
direction, order, approval, bond, note or other paper or document, unless
requested in writing so to do by the holders of Investor Certificates
evidencing Fractional Undivided Interests aggregating more than 50% of
the Invested Amount of any Series which could be materially and adversely
affected if the Trustee does not perform such acts; provided, however,
that such holders of Investor Certificates shall
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indemnify and reimburse the Trustee for any liability or expense
resulting from any such investigation requested by them to the extent the
Trustee is not otherwise reimbursed hereunder; provided further that the
Trustee shall be entitled to make such further inquiry or investigation
into such facts or matters as it may reasonably see fit, and if the
Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books and records of the Company,
personally or by agent or attorney, at the sole cost and expense of the
Company.
(f) The Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or
through affiliates, agents or attorneys or a custodian or nominee, and
the Trustee shall not be responsible for any misconduct or gross
negligence on the part of, or for the supervision of, any such affiliate,
agent, attorney, custodian or nominee appointed with due care by it
hereunder.
(g) The Trustee shall not be required to make any initial or
periodic examination of any documents or records related to the
Receivables or the Accounts for the purpose of establishing the presence
or absence of defects, the compliance by the Company with its
representations and warranties or for any other purpose.
(h) In the event that the Trustee is also acting as Paying
Agent or Transfer Agent and Registrar hereunder, the rights and
protections afforded to the Trustee pursuant to this Article VIII shall
also be afforded to such Paying Agent or Transfer Agent and
Registrar.
SECTION 8.03. Trustee Not Liable for Recitals. The Trustee
assumes no responsibility for the correctness of the recitals contained herein
and in the Investor Certificates (other than the certificate of authentication
on the Investor Certificates). Except as set forth in Section 8.15, the
Trustee makes no representations as to the validity or sufficiency of any
Pooling and Servicing Agreement, of the Investor Certificates (other than the
certificate of authentication on the Investor Certificates), of the
Exchangeable Company Interest, of any Interest, of any Subordinated Company
Interest, of any Receivable or related document or interest. The Trustee shall
not be accountable for the use or application by the Company of any of the
Investor Certificates, any Subordinated Company Interest or the Exchangeable
Company Interest or of the
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proceeds of such Investor Certificates, such Subordinated Company Interest or
the Exchangeable Company Interest or for the use or application of any funds
paid to the Company in respect of the Receivables or deposited in or withdrawn
from the Accounts or other accounts hereafter established to effectuate the
transactions contemplated herein and in accordance with the terms of any
Pooling and Servicing Agreement.
The Trustee shall not be accountable for the use or
application by the Servicer of any of the Investor Certificates or any
Interest or of the proceeds of such Investor Certificates or any Interest, or
for the use or application of any funds paid to the Servicer in respect of the
Receivables or deposited in or withdrawn from the Accounts or any Lockbox by
or at the direction of the Servicer or Lockbox Processor. The Trustee shall at
no time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Receivable.
SECTION 8.04. Trustee May Own Investor Certificates. The
Trustee in its individual or any other capacity (a) may become the owner or
pledgee of Investor Certificates with the same rights as it would have if it
were not the Trustee and (b) may transact any banking and trust business with
the Company, the Servicer or the Seller as it would were it not the Trustee.
SECTION 8.05. Trustee's Fees and Expenses. (a) The Servicer
covenants and agrees to pay, but only from funds available to it as the
Servicing Fee paid under the Servicing Agreement, to the Trustee annually in
advance on the Initial Closing Date and on or about each one-year anniversary
thereof, and the Trustee shall be entitled to receive, such reasonable
compensation as is agreed upon in writing between the Trustee and the Servicer
(which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) for all services rendered by it
in the execution of the trust hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Trustee.
(b) The Trustee shall be entitled to reimbursement upon its
request for all reasonable expenses (including, without limitation, expenses
incurred in connection with notices, requests for documentation or other
communications to Holders), disbursements, losses, liabilities, damages and
advances incurred or made by the Trustee in accordance with any of the
provisions of any Pooling and Servicing Agreement or by reason of its status
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as Trustee under any Pooling and Servicing Agreement (including the reasonable
fees and expenses of its agents, any co-trustee and counsel) except any such
expense, disbursement, loss, liability, damage or advance as may arise from
its gross negligence or bad faith. To the extent the fees and expenses of the
Trustee are not paid on a current basis, the Trustee shall be entitled to be
paid such items from amounts that would be distributable to the Company under
Article III of this Agreement and, to the extent still unpaid in full, the
Company will pay or reimburse the Trustee upon its request for such items.
Notwithstanding anything contained in this Agreement to the contrary, the
Trustee shall not be entitled to reimbursement for any costs or expenses
incurred in connection with the review, negotiation, preparation, execution
and delivery of any of the Transaction Documents or in connection with the
issuance of any Investor Certificates on the Initial Closing Date except for
such costs and expenses as have been agreed to in writing between the Trustee
and Company. If the Trustee is appointed Successor Servicer in accordance with
the Servicing Agreement, the provisions of this Section 8.05 shall not apply
to expenses, disbursements, losses, liabilities, damages and advances made or
incurred by the Trustee in its capacity as Successor Servicer, which items
shall be paid, first, out of the Servicing Fee, second, from amounts which
would be distributable to the Company under Article III of this Agreement,
third, from amounts distributable to the Company pursuant to Section 9.04 and
fourth, to the extent still unpaid in full, the Company will pay or reimburse
the Trustee upon its request for such items. The provisions of this Section
8.05 shall apply to the reasonable expenses, disbursements and advances made
or incurred by the Trustee, or any other Person, in its capacity as
liquidating agent, to the extent not otherwise paid. The covenants to pay the
expenses, disbursements, losses, liabilities, damages and advances provided
for in this Section shall survive the termination of any Pooling and Servicing
Agreement and shall be binding on the Company, the Servicer and any Successor
Servicer. The Company's and the Servicer's covenants and agreements contained
in this Section 8.05 shall survive the termination of this Agreement.
SECTION 8.06. Eligibility Requirements for Trustee. The
Trustee hereunder shall at all times be a corporation organized and doing
business under the laws of the United States of America or any state thereof
authorized under such laws to exercise corporate trust powers, having (or
having a holding company parent with) a combined capital and surplus of at
least $50,000,000 and subject to
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supervision or examination by federal or state authority. If such corporation
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then, for
the purpose of this Section 8.06, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. In case at any time
the Trustee shall cease to be eligible in accordance with the provisions of
this Section 8.06, the Trustee shall resign immediately in the manner and with
the effect specified in Section 8.07.
SECTION 8.07. Resignation or Removal of Trustee. (a) Subject
to paragraph (c) below, the Trustee may at any time resign and be discharged
from the trust hereby created by giving written notice thereof to the Company,
the Servicer and the Rating Agencies. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to
the resigning Trustee and one copy to the successor trustee. If no successor
trustee shall have been so appointed and have accepted such appointment within
30 days after the giving of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a
successor trustee.
(b) If at any time the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 hereof and shall fail to resign
after written request therefor by the Servicer, or if at any time the Trustee
shall be legally unable to act, or shall be adjudged a bankrupt or insolvent,
or if a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation,
then the Company may remove the Trustee and promptly appoint a successor
trustee by written instrument, in duplicate, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
trustee.
(c) Any resignation or removal of the Trustee and
appointment of successor trustee pursuant to any of the provisions of this
Section 8.07 shall not become effective until acceptance of appointment by the
successor trustee as provided in Section 8.08.
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(d) The obligations of the Company described in Section 8.05
hereof and the obligations of the Servicer described in Section 8.05 hereof
and Section 5.01 of the Servicing Agreement shall survive the removal or
resignation of the Trustee as provided in this Agreement.
(e) No Trustee under this Agreement shall be personally
liable for any action or omission of any successor trustee.
SECTION 8.08. Successor Trustee. (a) Any successor trustee
appointed as provided in Section 8.07 shall execute, acknowledge and deliver
to the Company and to its predecessor Trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor Trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if originally named as Trustee herein. The predecessor Trustee shall
deliver to the successor trustee all documents or copies thereof, at the
expense of the Servicer, and statements held by it hereunder; and the Company
and the predecessor Trustee shall execute and deliver such instruments and do
such other things as may reasonably be required for fully and certainly
vesting and confirming in the successor trustee all such rights, power, duties
and obligations. The Servicer shall immediately give notice, but in no event
less than 10 days prior to any such resignation or removal, to each Rating
Agency upon the appointment of a successor trustee.
(b) No successor trustee shall accept appointment as
provided in this Section 8.08 unless at the time of such acceptance such
successor trustee shall be eligible under the provisions of Section 8.06.
(c) Upon acceptance of appointment by a successor trustee as
provided in this Section 8.08, such successor trustee shall mail notice of
such succession hereunder to all Holders at their addresses as shown in the
Certificate Register, the Exchange Register or the Subordinated Interest
Register, as applicable.
SECTION 8.09. Merger or Consolidation of Trustee. Any Person
into which the Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding
to the corporate trust business of the Trustee, shall be the
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successor of the Trustee hereunder, provided such corporation shall be
eligible under the provisions of Section 8.06, without the execution or filing
of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding. The Trustee shall promptly
give notice (except to the extent prohibited under any Requirement of Law or
Contractual Obligation), but in no event less than 10 days prior to any such
merger or consolidation, to the Company, the Servicer and the Rating Agencies
upon any such merger or consolidation of the Trustee. Information as to such
merger or consolidation that is made publicly available by the Trustee in at
least one Authorized Newspaper shall be deemed to satisfy the notice
requirement of this Section 8.09.
SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.
(a) Notwithstanding any other provisions of any Pooling and Servicing
Agreement, at any time, for the purpose of meeting any legal requirements of
any jurisdiction in which any part of the Trust may at the time be located,
the Trustee shall have the power and may execute and deliver all instruments
to appoint one or more persons to act as a co-trustee or co-trustees, or
separate trustee or separate trustees, of all or any part of the Trust, and to
vest in such Person or Persons, in such capacity and for the benefit of the
Holders, such title to the Trust, or any part thereof, and, subject to the
other provisions of this Section 8.10, such powers, duties, obligations,
rights and trusts as the Trustee may consider necessary. No co-trustee or
separate trustee hereunder shall be required to meet the terms of eligibility
as a successor trustee under Section 8.06 and no notice to Holders of the
appointment of any co-trustee or separate trustee shall be required under
Section 8.08. The Trustee shall promptly notify each Rating Agency of the
appointment of any co-trustee.
(b) Every separate trustee and co-trustee shall, to the
extent permitted by law, be appointed and act subject to the following
provisions and conditions:
(i) all rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised
or performed by the Trustee and such separate trustee or co-trustee
jointly (it being understood that such separate trustee or co-trustee is
not authorized to act separately without the Trustee joining in such
act), except to the extent that under any statute of any jurisdiction in
which any particular act or acts are to be performed (whether as Trustee
hereunder or as successor to the Servicer hereunder), the Trustee
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shall be incompetent or unqualified to perform such act or acts, in which
event such rights, powers, duties and obligations (including the holding
of title to the Trust or any portion thereof in any such jurisdiction)
shall be exercised and performed singly by such separate trustee or
co-trustee, but solely at the direction of the Trustee;
(ii) no trustee hereunder shall be personally liable by
reason of any act or omission of any other trustee hereunder; and
(iii) the Trustee may at any time accept the resignation of
or remove any separate trustee or co-trustee.
(c) Any notice, request or other writing given to the
Trustee shall be deemed to have been given to each of the then separate
trustees and co-trustees, as effectively as if given to each of them. Every
instrument appointing any separate trustee or co-trustee shall refer to this
Agreement and the conditions of this Article VIII. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Trustee or separately, as may be provided therein, subject to
all the provisions of any Pooling and Servicing Agreement, specifically
including every provision of any Pooling and Servicing Agreement relating to
the conduct of, affecting the liability of, or affording protection to, the
Trustee. Every such instrument shall be filed with the Trustee and a copy
thereof given to the Servicer and the Company.
(d) Any separate trustee or co-trustee may at any time
constitute the Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or
in respect to any Pooling and Servicing Agreement on its behalf and in its
name. If any separate trustee or co-trustee shall die, become incapable of
acting, resign or be removed, all of its estates, properties, rights, remedies
and trusts shall vest in and be exercised by the Trustee, to the extent
permitted by law, without the appointment of a new or successor trustee.
SECTION 8.11. Tax Returns. In the event the
Trust shall be required to file U.S. Federal, state, local
or foreign income tax returns, the Company shall prepare and
file or shall cause to be prepared and filed any such tax
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Pooling Agreement
returns required to be filed by the Trust and shall remit such tax returns to
the Trustee for signature at least five Business Days before such tax returns
are due to be filed (including extensions). The Company shall also prepare or
shall cause to be prepared all U.S. Federal tax information in connection with
this Agreement required by law to be distributed to Holders and shall deliver
such information to the Trustee at least five Business Days prior to the date
it is required by law to be distributed to the Holders. The Trustee, upon
request, will furnish the Company with all such information known to the
Trustee as may be reasonably determined by the Company to be required in
connection with the preparation of all U.S. Federal, state, local or foreign
income tax returns of the Trust, and shall, upon the Company's written
request, execute such tax returns. In no event shall the Trustee in its
individual capacity be liable for any liabilities, costs or expenses of the
Trust, the Holders, the Company, or the Servicer arising under any U.S.
Federal, state, local or foreign income tax law or regulation, including,
without limitation, excise taxes or any other tax imposed by a Governmental
Authority on or measured by income (or any interest or penalty with respect
thereto or arising from any failure to comply therewith). The Trustee shall
not be required to determine whether any filing of tax returns is required.
SECTION 8.12. Trustee May Enforce Claims Without Possession
of Investor Certificates. All rights of action and claims under any Pooling
and Servicing Agreement or the Investor Certificates may be prosecuted and
enforced by the Trustee without the possession of any of the Investor
Certificates or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee. Any recovery of judgment shall, after provision for the payment of
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, be for the ratable benefit of the Investor
Certificateholders in respect of which such judgment has been obtained.
SECTION 8.13. Suits for Enforcement. If a Servicer Default
shall occur and be continuing, the Trustee may, as provided in Section 6.01 of
the Servicing Agreement, proceed to protect and enforce its rights and the
rights of the Holders under this Agreement or any other Transaction Document
by suit, action or proceeding (including any suit, action or proceeding on
behalf of the Holders against any third party) in equity or at law or
otherwise, whether for the specific performance of any covenant or agreement
contained in this Agreement or any other Transaction
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Document or in aid of the execution of any power granted in this Agreement or
any other Transaction Document or for the enforcement of any other legal,
equitable or other remedy as the Trustee, being advised by counsel, shall deem
most effectual to protect and enforce any of the rights of the Trustee or the
Holders. In furtherance of and without limiting the generality of subsection
8.01(d), the Trustee shall have the right to obtain, before initiating any
such action, such reasonable indemnity from the Investor Certificateholders as
the Trustee may require against the costs, expenses and liabilities that may
be incurred therein or thereby. Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Investor Certificates, the Subordinated Company
Interests or the Exchangeable Company Interest or the rights of any holder
thereof, or authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.
SECTION 8.14. Rights of Investor Certificateholders To
Direct Trustee. Investor Certificateholders evidencing more than 50% of the
Invested Amount of any Series affected by the conduct of any proceeding or the
exercise of any right conferred on the Trustee shall have the right to direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee; provided, however, that nothing in any Pooling and Servicing
Agreement shall impair the right of the Trustee to take any action deemed
proper by the Trustee and which is not inconsistent with such direction of the
Investor Certificateholders; provided further in furtherance and without
limiting the generality of subsection 8.01(d), the Trustee shall have the
right to obtain, before acting in accordance with any such direction of the
Investor Certificateholders, such reasonable indemnity from the Investor
Certificateholders as the Trustee may require against the costs, expenses and
liabilities that may be incurred in so acting.
SECTION 8.15. Representations and Warranties of
Trustee. The Trustee represents and warrants that:
(a) the Trustee is a banking corporation organized, existing
and in good standing under the laws of the State of New York and is duly
authorized to exercise trust powers under applicable law;
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Pooling Agreement
(b) the Trustee has the power and authority to enter into
this Agreement and any Supplement, and has taken all necessary action to
authorize the execution, delivery and performance by it of this Agreement
and any Supplement; and
(c) each Pooling and Servicing Agreement and each of the
Transaction Documents executed by it have been duly executed and
delivered by the Trustee and, in the case of all such Transaction
Documents, are legal, valid and binding obligations of the Trustee,
enforceable in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in
effect affecting the enforcement of creditors' rights generally and
except as such enforceability may be limited by general principles of
equity (whether considered in a suit at law or in equity).
SECTION 8.16. Maintenance of Office or Agency. The Trustee
will maintain at its expense in the Borough of Manhattan, The City of New
York, an office or offices or agency or agencies where notices and demands to
or upon the Trustee in respect of the Investor Certificates or any other
Interests and the Pooling and Servicing Agreements may be served. The Trustee
will give prompt written notice to the Company, the Servicer and the Holders
of any change in the location of the Certificate Register, the Exchange
Register, the Subordinated Interest Register or any such office or agency.
SECTION 8.17. Limitation of Liability. The Investor
Certificates are executed by the Trustee, not in its individual capacity but
solely as Trustee of the Trust, in the exercise of the powers and authority
conferred and vested in it by the Trust Agreement. Each of the undertaking and
agreements made on the part of the Trustee in the Investor Certificates is
made and intended not as a personal undertaking or agreement by the Trustee
but is made and intended for the purpose of binding only the Trust.
ARTICLE IX
Termination
SECTION 9.01. Termination of Trust. (a) The
Trust and the respective obligations and responsibilities of
the Company, the Servicer and the Trustee created hereby
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(other than the obligation of the Trustee to make payments to Holders as
hereafter set forth) shall terminate, except with respect to any such
obligations or responsibilities expressly stated to survive such termination,
on the earliest of (i) the last day of the _________ Settlement Period, (ii)
at the option of the Company, at any time when the Aggregate Invested Amount
is zero, (iii) following the occurrence of any of the Early Amortization
Events specified in Section 7.01 of this Agreement, at any time when the
Aggregate Invested Amount is zero and (iv) upon completion of distribution of
the amounts referred to in subsection 7.02(b) (the "Trust Termination Date").
(b) If on the Distribution Date in the month immediately
preceding the month in which the Trust Termination Date occurs (after giving
effect to all transfers, withdrawals, deposits and drawings to occur on such
date and the payment of principal on any Series of Investor Certificates to be
made on the related Distribution Date pursuant to Article III) the Invested
Amount of any Series would be greater than zero (as certified in writing by
the Servicer), the Trustee, at the written direction of the Servicer, shall
make reasonable efforts to sell within 30 days of such Distribution Date all
of the Receivables and other Trust Assets. The proceeds of such sale shall be
treated as Collections on the Receivables and shall be allocated in accordance
with Article III. During such 30-day period, the Servicer shall continue to
collect Collections on the Receivables and allocate Collections in accordance
with the provisions of Article III. The reasonable costs and expenses incurred
by the Trustee in such sale shall be reimbursable to the Trustee as provided
in Section 8.05.
SECTION 9.02. Optional Purchase and Final Termination Date
of Investor Certificates of Any Series. (a) On any Distribution Date during
the Amortization Period with respect to any Series on which the Invested
Amount (or such other amount as may be set forth in the related Supplement) of
such Series is reduced to an amount equal to or less than the Optional
Repurchase Percentage of the Initial Invested Amount (or such other amount as
may be set forth in the related Supplement) for such Series as of the day
preceding the beginning of such Amortization Period, the Company shall have
the option to repurchase the entire Investor Certificateholders' Interest of
such Series, at a purchase price equal to (i) the outstanding Invested Amount
of the Investor Certificates of such Series plus (ii) accrued and unpaid
interest through such Distribution Date (after giving effect to any payment of
principal and
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monthly interest on such date of purchase) plus (iii) all other amounts
payable to all Investor Certificateholders of such Series under the related
Supplement (such purchase price, the "Clean-Up Call Repurchase Price"). The
amount of the Clean-Up Call Repurchase Price will be deposited into the
Collection Account for credit to the Series Collection Subaccount for such
Series on such Distribution Date in immediately available funds and will be
passed through in full to the applicable Investor Certificateholders.
Following any such repurchase, such Investor Certificateholders' Interest in
the Receivables and the other Trust Assets shall terminate and such interest
therein will be allocated to the Exchangeable Company Interest and such
Investor Certificateholders will have no further rights with respect thereto.
In the event that the Company fails for any reason to deposit the Clean-Up
Call Repurchase Price for such Receivables, the Investor Certificateholders'
Interest in the Receivables and the other Trust Assets will continue and
monthly payments will continue to be made to the Investor Certificateholders.
(b) The amount deposited pursuant to subsection 9.02(a)
shall be paid to the Investor Certificateholders of the related Series
pursuant to Article III on the Distribution Date following the date of such
deposit. All Investor Certificates of a Series which are purchased by the
Company pursuant to subsection 9.02(a) shall be delivered by the Company upon
such purchase to, and be canceled by (in accordance with the written
directions of the Company), the Transfer Agent and Registrar and be disposed
of in a manner satisfactory to the Trustee and the Company.
(c) All principal or interest with respect to any Series of
Investor Certificates shall be due and payable no later than the Series
Termination Date with respect to such Series. Unless otherwise provided in a
Supplement, in the event that the Invested Amount of any Series of Investor
Certificates is greater than zero on its Series Termination Date (after giving
effect to all transfers, withdrawals, deposits and drawings to occur on such
date and the payment of principal to be made on such Series on such date), the
Trustee will sell or cause to be sold, in accordance with the directions of
Investor Certificateholders representing more than 50% of the Invested Amount
of such Series (upon which the Trustee may conclusively rely) and pay the
proceeds to all Investor Certificateholders of such Series pro rata (except
that unless expressly provided to the contrary in the related Supplement, no
payment shall be made to Investor Certificateholders of any Class of any
Series
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that is by its terms subordinated to any other Class until such senior Class
of Investor Certificates have been paid in full) in final payment of all
principal of and accrued interest on such Series of Investor Certificates, an
amount of Receivables or interests in Receivables up to the Invested Amount of
such Series at the close of business on such date; provided, however, in
furtherance and without limiting the generality of subsection 8.01(d), the
Trustee shall have the right to obtain, before acting in accordance with any
such direction of the Investor Certificateholders, such reasonable indemnity
from the Investor Certificateholders as the Trustee may require against the
costs, expenses and liabilities that may be incurred in so acting. Absent such
direction from Investor Certificateholders representing more than 50% of the
Invested Amount of such Series or absent such reasonable indemnity as the
Trustee may require in connection with such direction, the Trustee shall
continue to hold the Trust Assets in respect of such Series in accordance with
the terms of the Pooling and Servicing Agreements until the Trust Termination
Date (or until Investor Certificateholders representing more than 50% of the
Invested Amount of such Series shall otherwise direct the Trustee); provided
that the terms of this Agreement, the related Supplement and the Servicing
Agreement shall be deemed to remain in full force and effect, except that no
additional Receivables shall be allocated with respect to such Series. The
reasonable costs and expenses incurred by the Trustee in such sale shall be
reimbursable to the Trustee as provided in Section 8.05. Any proceeds of such
sale in excess of such principal and interest paid shall be paid to the holder
of the Exchangeable Company Interest, unless and to the extent otherwise
specified in any applicable Supplement. Upon such Series Termination Date with
respect to the applicable Series, final payment of all amounts allocable to
any Investor Certificates of such Series shall be made in the manner provided
in this Section 9.02.
SECTION 9.03. Final Payment with Respect to Any Series. (a)
Written notice of any termination, specifying the Distribution Date upon which
the Investor Certificateholders of any Series may surrender their Investor
Certificates for payment of the final distribution with respect to such series
and cancelation, shall be given (subject to at least 30 days' prior written
notice from the Servicer to the Trustee containing all information required
for the Trustee's notice or such shorter period as is acceptable to the
Trustee) by the Trustee to Investor Certificateholders of such Series mailed
not later than the fifth day of the month of such final distribution
specifying
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(i) the Distribution Date upon which final payment of the Investor
Certificates will be made upon presentation and surrender of Investor
Certificates at the office or offices therein designated, (ii) the amount of
any such final payment and (iii) that the Record Date otherwise applicable to
such Distribution Date is not applicable, payments being made only upon
presentation and surrender of the Investor Certificates at the office or
offices therein specified. The Servicer's notice to the Trustee in accordance
with the preceding sentence shall be accompanied by an Officer's Certificate
setting forth the information specified in Section 4.04 of the Servicing
Agreement covering the period during the then current calendar year through
the date of such notice. The Trustee shall give such notice to the Transfer
Agent and Registrar and the Paying Agent at the time such notice is given to
such Investor Certificateholders.
(b) Notwithstanding the termination of the Trust pursuant to
subsection 9.01(a) or the occurrence of the Series Termination Date with
respect to any Series pursuant to Section 9.02, all funds then on deposit in
the Collection Account (but only to the extent necessary to pay all
outstanding and unpaid amounts to Holders) shall continue to be held in trust
for the benefit of the Holders and the Paying Agent or the Trustee shall pay
such funds to the Investor Certificateholders upon surrender of their Investor
Certificates in accordance with the terms hereof. Any Investor Certificate not
surrendered on the date specified in subsection 9.03(a)(i) shall cease to
accrue any interest provided for such Investor Certificate from and after such
date. In the event that all of the Investor Certificateholders shall not
surrender their Investor Certificates for cancelation within six months after
the date specified in the above-mentioned written notice, the Trustee shall
give a second written notice to the remaining Investor Certificateholders of
such Series to surrender their Investor Certificates for cancelation and
receive the final distribution with respect thereto. If within one year after
the second notice all the Investor Certificates of such Series shall not have
been surrendered for cancelation, the Trustee may take appropriate steps, or
may appoint an agent to take appropriate steps, to contact the remaining
Investor Certificateholders of such Series concerning surrender of their
Investor Certificates, and the cost thereof shall be paid out of the funds in
the Collection Account held for the benefit of such Investor
Certificateholders. The Trustee and the Paying Agent shall pay to the Company
upon request any monies held by them for the payment of principal or interest
that remains unclaimed
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for two years and neither the Trustee nor the Paying Agent shall be liable to
any Investor Certificateholder for such payment to the Company upon its
request. After payment to the Company, Holders entitled to the money must look
to the Company for payment as general creditors unless an applicable abandoned
property law designates another Person.
(c) All Investor Certificates surrendered for payment of the
final distribution with respect to such Investor Certificates and cancelation
shall be canceled by the Transfer Agent and Registrar and be disposed of in a
customary manner satisfactory to the Trustee.
SECTION 9.04. Company's Termination Rights. Upon
the termination of the Trust pursuant to Section 9.01 and
payment to the Trustee (in its capacity as such and/or in
its capacity as Successor Servicer) of all amounts owed to
it under any Pooling and Servicing Agreement, the Trustee
shall assign and convey to the Company (without recourse,
representation or warranty) in exchange for the Exchangeable
Company Interest all right, title and interest of the Trust
in the Trust Assets, whether then existing or thereafter
created, and all proceeds thereof except for amounts held by
the Trustee pursuant to subsection 9.03(b). The Trustee
shall execute and deliver such instruments of transfer and
assignment, in each case without recourse, representation or
warranty, as shall be reasonably requested by the Company to
vest in the Company all right, title and interest which the
Trust had in the Trust Assets.
ARTICLE X
Miscellaneous Provisions
SECTION 10.01. Amendment. (a) This Agreement, the Servicing
Agreement and each Supplement in respect of an Outstanding Series
(collectively, the "Pooling and Servicing Agreements") may be amended in
writing from time to time by the Servicer, the Company and the Trustee,
without the consent of any Holder, to cure any ambiguity, to correct or
supplement any provisions herein or therein which may be inconsistent with any
other provisions herein or therein or to add any other provisions hereof to
change in any manner or eliminate any of the provisions with respect to
matters or questions raised under any Pooling and Servicing Agreement which
shall not be inconsistent with the provisions of any Pooling and Servicing
Agreement; provided, however, that such action shall not, as evidenced by an
Officer's Certificate delivered to the Trustee upon which
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the Trustee may conclusively rely, have a material adverse effect on the
interests of the Investor Certificateholders (but, to the extent that the
determination of whether such action would have such a material adverse effect
requires a conclusion as to a question of law, an Opinion of Counsel shall be
delivered to the Trustee in addition to such Officer's Certificate); provided
further any amendment that is entered into to provide additional Enhancement
for any Outstanding Series shall be deemed to have no such material adverse
effect. The Trustee may, but shall not be obligated to, enter into any such
amendment pursuant to this paragraph or paragraph (b) below which affects the
Trustee's rights, duties or immunities under any Pooling and Servicing
Agreement or otherwise.
(b) Any Pooling and Servicing Agreement and, to the extent
provided in any Pooling and Servicing Agreement, any other agreement relating
to the Receivables may also be amended (other than in the circumstances
referred to in the preceding paragraph (a)) in writing from time to time by
the Servicer, the Company and the Trustee with the consent of Investor
Certificateholders evidencing more than 50% of the Invested Amount of any
Series adversely affected in any material respect by the amendment (or, if any
such Series shall have more than one Class of Investor Certificates adversely
affected in any material respect by the amendment, more than 50% of the
Invested Amount of each such Class) for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of such
Pooling and Servicing Agreement or such other agreement or of modifying in any
manner the rights of holders of any Series then issued and outstanding;
provided, however, that no such amendment shall (i) reduce in any manner the
amount of, or delay the timing of, distributions which are required to be made
on any Investor Certificate of such Series without the consent of such
Investor Certificateholder of such Series; (ii) change the definition of or
the manner of calculating the interest of any Investor Certificateholder of
such Series without the consent of such Investor Certificateholder; or (iii)
reduce the aforesaid percentage of the Invested Amount of any adversely
affected Series or Class the holders of which are required to consent to any
such amendment without the consent of all Investor Certificateholders of each
Series adversely affected in any material respect.
(c) Notwithstanding anything in this Section 10.01 to the
contrary, the Supplement with respect to any Series may be amended on the
terms and with the procedures provided in such Supplement.
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Pooling Agreement
(d) Promptly after the execution of any such amendment or
consent, the Trustee shall furnish written notification of the substance of
such amendment to each Investor Certificateholder of each Outstanding Series
(or with respect to an amendment of a Supplement, to each Investor
Certificateholder of the applicable Series), and the Servicer shall furnish
written notification of the substance of such amendment to each Rating Agency.
No such amendment (including without limitation, the amendment of any
Supplement notwithstanding anything to the contrary contained in any
Supplement) shall be effective until the Rating Agency Condition has been
satisfied.
(e) It shall not be necessary for the consent of Investor
Certificateholders under this Section 10.01 to approve the particular form of
any proposed amendment, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof by Investor
Certificateholders shall be subject to such reasonable requirements as the
Trustee may prescribe.
(f) In executing or accepting any amendment pursuant to this
Section 10.01, the Trustee shall, upon request, be entitled to receive and
rely upon (i) an Opinion of Counsel stating that such amendment is authorized
pursuant to a specific provision of a Pooling and Servicing Agreement and
complies with such provision, (ii) a certificate from a Responsible Officer of
the Company stating that such (A) amendment shall not adversely affect the
interests of the holders of any outstanding Investor Certificates in any
material respect except for holders of the Series whose consent to such
amendment has been obtained in accordance with clause (b) of this Section
10.01 and (B) all conditions precedent to the execution and delivery of such
amendment shall have been satisfied in full and (iii) a Tax Opinion.
SECTION 10.02. Protection of Right, Title and Interest to
Trust. The Company shall cause all financing statements and continuation
statements and any other necessary documents covering the Holders' and the
Trustee's right, title and interest to the Trust and the Trust Assets to be
promptly recorded, registered and filed, and at all times to be kept recorded,
registered and filed, all in such manner and in such places as may be required
by law fully to preserve and protect the right, title and interest of the
Trustee hereunder to all property comprising the Trust. The Company shall
deliver to the Trustee copies of, or filing receipts for, any document
recorded, registered or filed as
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provided above, as soon as available following such recording, registration or
filing. In the event that the Company fails to file such financing or
continuation statements and the Trustee has received an opinion of counsel, at
the expense of the Company, that such filing is necessary to preserve and to
protect the Trustee's right, title and interest in any Trust Asset then the
Trustee shall have the right to cause to be filed the same on behalf of the
Company and the Trustee shall be reimbursed and indemnified by the Company for
making such filing.
SECTION 10.03. Limitation on Rights of Holders. (a) The
death or incapacity of any Holder shall not operate to terminate this
Agreement or the Trust, nor shall such death or incapacity entitle such
Holders' legal representatives or heirs to claim an accounting or to take any
action or commence any proceeding in any court for a partition or winding up
of the Trust, nor otherwise affect the rights, obligations and liabilities of
the parties hereto or any of them.
(b) Except with respect to the Investor Certificateholders
as expressly provided in any Pooling and Servicing Agreement, no Holder shall
have any right to vote or in any manner otherwise control the operation and
management of the Trust, or the obligations of the parties hereto. Nor shall
any Holder be under any liability to any third person by reason of any action
taken by the parties to this Agreement pursuant to any provision hereof.
(c) No Holder shall have any right by virtue of any
provisions of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee written request to institute
such action, suit or proceeding in its own name as Trustee hereunder and shall
have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby,
and the Trustee, for 60 days after its receipt of such notice, request and
offer of indemnity, shall have neglected or refused to initiate any such
action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Holder with every other Holder and the Trustee,
that no one or more Holder shall have any right in any manner whatever by
virtue or by availing itself or themselves of any provisions of the Pooling
and Servicing Agreements to affect, disturb or prejudice the rights of any
other of the Interests, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to
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enforce any right under this Agreement, except in the manner herein provided
and for the equal, ratable and common benefit of all Holders. For the
protection and enforcement of the provisions of this Section 10.03, each and
every Holder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.
(d) By their acceptance of Interests pursuant to this
Agreement and the applicable Supplement, the Holders agree to the provisions
of this Section 10.03.
SECTION 10.04. Governing Law. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.
SECTION 10.05. Notices. All notices, requests and demands to
or upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein,
shall be deemed to have been duly given or made when delivered by hand, or
three days after being deposited in the mail, postage prepaid, or, in the case
of telecopy notice, when received, addressed as follows in the case of the
Company, the Servicer and the Trustee, or to such other address as may be
hereafter notified by the respective parties hereto:
The Company:
AAM Receivables Corp.
1840 Holbrook Avenue; Suite 2A
Detroit, MI 48212
Attention of: Mark Umlauf
Telecopy: (313) 873-5472
with a copy to the Servicer
The Servicer:
American Axle & Manufacturing, Inc.
1840 Holbrook Avenue
Detroit, MI 48212
Attention of: Gary Witosky
Telecopy: (313) 974-2229
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Pooling Agreement
The Trustee:
The Chase Manhattan Bank
450 West 33rd Street, 15th Floor
New York, New York 10001
Attention of: Structured Finance Services
Telecopy: (212) 946-3240
Any notice required or permitted to be mailed to a Holder shall be given by
first-class mail, postage prepaid, at the address of such Holder as shown in
the Certificate Register, the Exchange Register or the Subordinated Interest
Register, as the case may be. Any notice so mailed within the time prescribed
in any Pooling and Servicing Agreement shall be conclusively presumed to have
been duly given, whether or not the Holder receives such notice.
SECTION 10.06. Severability of Provisions. If
any one or more of the covenants, agreements, provisions or
terms of any Pooling and Servicing Agreement shall for any
reason whatsoever be held invalid, then such covenants,
agreements, provisions or terms shall be deemed severable
from the remaining covenants, agreements, provisions or
terms of such Pooling and Servicing Agreement and shall in
no way affect the validity or enforceability of the other
provisions of any Pooling and Servicing Agreement or of the
Investor Certificates or rights of the Holders.
SECTION 10.07. Assignment. Notwithstanding anything to the
contrary contained herein, except as provided in Section 5.03 of the Servicing
Agreement, no Pooling and Servicing Agreement may be assigned by the Company
or the Servicer without the prior written consent of the Trustee acting on
behalf of the holders of 66-2/3% of the Invested Amount of each Outstanding
Series and without the Rating Agency Condition having been satisfied with
respect to such assignment.
SECTION 10.08. Investor Certificates Nonassessable and Fully
Paid. It is the intention of the parties to each Pooling and Servicing
Agreement that the Investor Certificateholders shall not be personally liable
for obligations of the Trust, that the interests in the Trust represented by
the Investor Certificates shall be nonassessable for any losses or expenses of
the Trust or for any reason whatsoever and that Investor Certificates upon
authentication thereof by the Trustee pursuant to Section 5.02 are and shall
be deemed fully paid.
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Pooling Agreement
SECTION 10.09. Further Assurances. The Company and the
Servicer agree to do and perform, from time to time, any and all acts and to
execute any and all further instruments required or reasonably requested by
the Trustee more fully to effect the purposes of each Pooling and Servicing
Agreement, including, without limitation, the execution of any financing
statements or continuation statements relating to the Receivables for filing
under the provisions of the UCC of any applicable jurisdiction.
SECTION 10.10. No Waiver; Cumulative Remedies. No failure to
exercise and no delay in exercising, on the part of the Trustee or the
Investor Certificateholders, any right, remedy, power or privilege, hereunder,
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exhaustive of any rights, remedies, powers and privileges
provided by law.
SECTION 10.11. Counterparts. This Agreement may be executed
in two or more counterparts (and by different parties on separate
counterparts), each of which shall be an original, but all of which together
shall constitute one and the same instrument.
SECTION 10.12. Third-Party Beneficiaries. This Agreement
will inure to the benefit of and be binding upon the parties hereto, the
Holders and their respective successors and permitted assigns. Except as
otherwise provided in this Section 10.12, no other Person will have any right
or obligation hereunder.
SECTION 10.13. Actions by Investor Certificateholders. (a)
Wherever in any Pooling and Servicing Agreement a provision is made that an
action may be taken or a notice, demand or instruction given by Investor
Certificateholders, such action, notice or instruction may be taken or given
by any Investor Certificateholders of any Series, unless such provision
requires a specific percentage of Investor Certificateholders of a certain
Series or all Series.
(b) Any request, demand, authorization, direction, notice,
consent, waiver or other act by an Investor Certificateholder shall bind such
Investor Certificateholder and every subsequent holder of such Investor
Certificate issued upon the registration of
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Pooling Agreement
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done or omitted to be done by the Trustee, the Company, or the
Servicer in reliance thereon, whether or not notation of such action is made
upon such Investor Certificate.
SECTION 10.14. Merger and Integration. Except as
specifically stated otherwise herein, this Agreement and the Servicing
Agreement set forth the entire understanding of the parties relating to the
subject matter hereof, and all prior understandings, written or oral, are
superseded by this Agreement and the Servicing Agreement. This Agreement and
the Servicing Agreement may not be modified, amended, waived, or supplemented
except as provided herein.
SECTION 10.15. Headings. The headings herein are
for purposes of reference only and shall not otherwise
affect the meaning or interpretation of any provision
hereof.
SECTION 10.16. Construction of Agreement. (a) The Company
hereby grants to the Trustee, for the benefit of the Holders, a security
interest in all of the Company's right, title and interest in, to and under
the Receivables and the other Trust Assets now existing and hereafter created,
all monies due or to become due and all amounts received with respect thereto
and all "proceeds" thereof (including Recoveries), to secure all of the
Company's and the Servicer's obligations hereunder, including, without
limitation, the Company's obligation to sell or transfer Receivables hereafter
created to the Trust.
(b) This Agreement shall constitute a security agreement
under applicable law.
SECTION 10.17. No Setoff. Except as expressly provided in
this Agreement or any other Transaction Document, the Trustee agrees that it
shall have no right of setoff or banker's lien against, and no right to
otherwise deduct from, any funds held in the Collection Account for any amount
owed to it by the Company, the Servicer or any Holder.
SECTION 10.18. No Bankruptcy Petition. Each of the Trustee
and the Servicer hereby covenants and agrees that, prior to the date which is
one year and one day after the date of the end of the Amortization Period with
respect to all Outstanding Series, it will not institute against, or join any
other Person in instituting against, the Company any bankruptcy,
reorganization, arrangement, insolvency or
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liquidation proceedings, or other proceedings under any Federal or state
bankruptcy or similar law.
SECTION 10.19. Limitation of Liability. It is expressly
understood and agreed by the parties hereto that (a) each Pooling and
Servicing Agreement is executed and delivered by the Trustee, not individually
or personally but solely as Trustee of the Trust, in the exercise of the
powers and authority conferred and vested in it, (b) except with respect to
Section 8.15 hereof the representations, undertakings and agreements herein
made on the part of the Trust are made and intended not as personal
representations, undertakings and agreements by the Trustee, but are made and
intended for the purpose of binding only the Trust, (c) nothing herein
contained shall be construed as creating any liability on the Trustee,
individually or personally, to perform any covenant either expressed or
implied contained herein, all such liability, if any, being expressly waived
by the parties who are signatories to this Agreement and by any Person
claiming by, through or under such parties; provided, however, the Trustee
shall be liable in its individual capacity for its own wilful misconduct or
gross negligence and for any tax assessed against the Trustee based on or
measured by any fees, commission or compensation received by it for acting as
Trustee and (d) under no circumstances shall the Trustee be personally liable
for the payment of any indebtedness or expenses of the Trust or be liable for
the breach or failure of any obligation, representation, warranty or covenant
made or undertaken by the Trust under any Pooling and Servicing Agreement;
provided further that the foregoing clauses (a) through (d) shall survive the
resignation or removal of the Trustee.
The Company hereby agrees to indemnify and hold harmless the
Trustee and the Trust (for the benefit of the Holders) (each, an "Indemnified
Person") from and against any loss, liability, expense, damage or injury
suffered or sustained by reason of any acts, omissions or alleged acts or
omissions arising out of, or relating to, activities of the Company pursuant
to any Pooling and Servicing Agreement to which it is a party, including but
not limited to any judgment, award, settlement, reasonable attorneys' fees and
other reasonable costs or expenses incurred in connection with the defense of
any actual or threatened action, proceeding or claim, except to the extent
such loss, liability, expense, damage or injury resulted from the gross
negligence, bad faith or wilful misconduct of an Indemnified Person or
resulted from the performance of any Receivable, market fluctuations or other
market or investment risk not attributable to acts or omissions or alleged
acts or
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omissions of the Company provided, however, that any payments to be made by
the Company pursuant to this subsection shall be Company Subordinated
Obligations.
SECTION 10.20. Certain Information. The Servicer and the
Company shall promptly provide to the Trustee such information in computer
tape, hard copy or other form regarding the Receivables as the Trustee may
reasonably determine to be necessary to perform its obligations here under and
under the Servicing Agreement.
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Pooling Agreement
IN WITNESS WHEREOF, the Company, the Servicer and the
Trustee have caused this Agreement to be duly executed by their respective
officers as of the day and year first above written.
AAM RECEIVABLES CORP.,
by /s/ Patrick S. Lancaster
-------------------------
Name: Patrick S. Lancaster
Title: Secretary
AMERICAN AXLE & MANUFACTURING,
INC.,
as Servicer,
by /s/ Gary J. Witosky
------------------------
Name: Gary J. Witosky
Title: Chief Financial
Officer
THE CHASE MANHATTAN BANK, not
in its individual capacity but
solely as Trustee,
by /s/ Marcus Gustafson
-------------------------
Name: Marcus Gustafson
Title: Vice President
<PAGE>
Pooling Agreement
EXHIBIT A to the
POOLING AGREEMENT
[FORM OF LOCKBOX AGREEMENT]
, 1997
[Name and address of Lockbox Bank]
Attention:
Ladies and Gentlemen:
AAM Receivables Corp., a Delaware corporation (the
"Company"), has agreed to purchase certain receivables (the "Receivables")
from American Axle & Manufacturing, Inc. ("AAMI, in its capacity as seller,
the "Seller", and in its capacity as servicer pursuant to the Transaction
Documents, the "Servicer") pursuant to the Receivables Sale Agreement, dated
as of October 29, 1997 (as amended, supplemented or otherwise modified from
time to time, the "Receivables Sale Agreement"), between AAMI and the Company.
The Company has in turn assigned the Receivables to a master trust (the
"Master Trust") pursuant to a Pooling Agreement, dated as of October 29, 1997
(as amended, supplemented or otherwise modified from time to time, the
"Pooling Agreement"), among the Company, the Servicer and The Chase Manhattan
Bank, a New York banking corporation, as trustee (the "Trustee"). The
Receivables are serviced pursuant to the terms of a Servicing Agreement, dated
as of October 29, 1997 (as the same may be amended, supplemented or otherwise
modified from time to time, the "Servicing Agreement"; and, collectively with
the Pooling Agreement, the "Pooling and Servicing Agreements") among the
Company, the Servicer and the Trustee. Capitalized terms used herein but not
defined herein shall have the meanings assigned to such terms in the Pooling
Agreement.
Pursuant to the terms of the Pooling and Servicing
Agreements and except as otherwise provided therein, (i) the Servicer has
agreed to instruct all Obligors under the Receivables to make all payments in
respect of such Receivables to a blocked deposit account (each, a "Lockbox
Account") designated by the Servicer to such Obligor and (ii) the Company has
agreed to grant a security interest in its right, title and interest in each
Lockbox Account and all funds and other evidences of payment held therein to
the Trustee. Furthermore, the Company, the Servicer and the Trustee have
agreed, pursuant to the Pooling and Servicing Agreements, to enter into an
agreement with each bank
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Pooling Agreement
maintaining a Lockbox Account and hereby request that [name of Lockbox Bank]
(the "Lockbox Bank") act as, and the Lockbox Bank hereby agrees to act as, a
lockbox deposit bank for the Company with respect to the Lockbox Account. This
Letter Agreement defines certain rights and obligations with respect to the
appointment of the Lockbox Bank.
Accordingly, the Company, the Servicer, the Trustee and the
Lockbox Bank agree as follows:
Reference is made to the Lockbox Account (Account No. ),
including box number thereunder (collectively, the "Specified Account"),
maintained with you by the Servicer. The Servicer hereby transfers the
Specified Account to the Company and hereafter the Specified Account shall be
in the name of the Company and maintained by the Lockbox Bank for the benefit
of the Company and the Trustee, as set forth herein. All funds and other
evidences of payment received by the Lockbox Bank in its capacity as Lockbox
Bank shall be deposited in the Specified Account. Such payments shall not be
commingled with other funds. All funds and other evidences of payment at any
time on deposit in the Specified Account shall be held by the Lockbox Bank for
application strictly in accordance with the terms of this Letter Agreement.
The Lockbox Bank agrees to give the Trustee, the Company and the Servicer
prompt notice if the Specified Account shall become subject to any writ,
judgment, warrant of attachment, execution or similar process.
The Trustee shall have sole and exclusive dominion over and
control of the Specified Account and all Collections and other property from
time to time deposited therein, and shall have the sole right of withdrawal
from the Specified Account. Each of the Company and the Servicer acknowledges
and agrees that it shall not have any dominion over or control of the
Specified Account or any Collections or other property from time to time
deposited therein including any right to withdraw or utilize any funds or
other evidences of payment on deposit in the Specified Account, other than the
right to authorize transfers to the Collection Account as set forth herein and
pursuant to the terms of the Pooling and Servicing Agreements. The Lockbox
Bank shall automatically, by 1:00 p.m., New York City time, at least as often
as once each day that is a business day for the Lockbox Bank and for the
Trustee, transfer, by means of the Automated Clearing House System, all
available funds on deposit in the Specified Account, including all funds
transferred from Obligors on or before the end of the preceding day, along
with, subject to the next succeeding
<PAGE>
3
Pooling Agreement
sentence, all remittance advisements and payment invoices on deposit therein, to
the Collection Account. The Lockbox Bank acknowledges that, until it receives
instructions from the Trustee to the contrary, the Lockbox Bank shall return to
the Company, upon the Company's reasonable request therefor, any remittance
advisements and payment invoices deposited into the Specified Account.
Deposited checks with respect to the Specified Account
returned to the Lockbox Bank for any reason will be charged against the
Specified Account. Nothing contained in the previous sentence shall be
construed to prejudice other rights of the Lockbox Bank, which rights include
the right of recourse against the Company for any overdrafts in the Specified
Account.
The Trustee is authorized to receive mail delivered to the
Lockbox Bank with respect to the Specified Account and the Company has filed a
form of standing delivery order with the United States Postal Service
authorizing the Trustee to receive mail delivered to the Lockbox Bank with
respect to the Specified Account.
The Lockbox Bank shall also furnish the Trustee with
statements, in the form and manner typical for the Lockbox Bank, of amounts of
deposits in, and amounts transferred to the Collection Account from, the
Specified Account pursuant to any reasonable request of the Trustee but in any
event not less frequently than monthly and such other information relating to
the Specified Account at such times as shall be reasonably requested by the
Trustee.
For purposes of this Letter Agreement, any officer of the
Trustee shall be authorized to act, and to give instructions and notice, on
behalf of the Trustee hereunder.
The fees for the services of the Lockbox Bank shall be
mutually agreed upon between the Company and the Lockbox Bank and paid by the
Company. Neither the Trustee nor any investor in the Master Trust shall have
any responsibility or liability for the payment of any such fee.
The Lockbox Bank may perform any of its duties hereunder by
or through its officers, employees or agents and shall be entitled to rely
upon the advice of counsel as to its duties. The Lockbox Bank shall not be
liable to the Trustee, the Servicer or the Company for any action taken or
omitted to be taken by it in good faith, nor shall the Lockbox Bank be
responsible to the Trustee, the Servicer or the Company for the consequences
of any oversight or error of judgment or be answerable to the Trustee for the
same, unless such action, omission, oversight or error
<PAGE>
4
Pooling Agreement
of judgment shall happen through the Lockbox Bank's negligence or willful
misconduct.
The Lockbox Bank hereby represents and warrants that (a) it
is a banking corporation duly organized, validly existing and in good standing
under the laws of [ ] and has full corporate power and authority under such
laws to execute, deliver and perform its obligations under this Agreement and
(b) the execution, delivery and performance of this Agreement by the Lockbox
Bank have been duly and effectively authorized by all necessary corporate
action and this Agreement has been duly executed and delivered by the Lockbox
Bank and constitutes a valid and binding obligation of the Lockbox Bank
enforceable in accordance with its terms.
The Lockbox Bank may resign at any time as Lockbox Bank
hereunder by delivery to the Trustee and the Company of written notice of
resignation not less than 30 days prior to the effective date of such
resignation. The Company may, with the written consent of the Trustee, and, if
the Company shall refuse any demand by the Trustee to do so in the event (i)
an Early Amortization Period shall have occurred and be continuing or (ii)
there has been a failure by the Lockbox Bank to perform any of its material
obligations hereunder and such failure could adversely affect the Trustee's
interest in any Receivable or the Trustee's rights, or ability to exercise any
remedies, under this Letter Agreement or the Pooling and Servicing Agreements,
the Trustee may close the Specified Account at any time by delivery of notice
to the Lockbox Bank and the Company at the addresses appearing below. This
Letter Agreement shall terminate upon receipt of such notice of closing, or
delivery of such notice of resignation, except that the Lockbox Bank shall
immediately transfer to the Collection Account, or any other account
designated by the Trustee all available funds or, subject to the Company's
reasonable request to retain such items, any remittance advisements or payment
invoices, if any, then on deposit in, or otherwise to the credit of, the
Specified Account and deliver any available funds or such remittance
advisements or payment invoices relating to the Receivables received by the
Lockbox Bank after such notice directly to the Collection Account or any other
account designated by the Trustee.
All notices and communications hereunder shall be in writing
(except where telephonic instructions or notices are authorized herein) and
shall be deemed to have been
<PAGE>
5
Pooling Agreement
received and shall be effective on the day on which delivered (including
delivery by telex):
(i) in the case of the Trustee, to it at:
The Chase Manhattan Bank
450 West 33rd Street, 15th Floor
New York, NY 10011
Attention: Structured Finance Services
Telecopy No.: (212) 946-3240
(ii) in the case of the Lockbox Bank, to it at:
Attention:
Telecopy No.:
(iii) in the case of the Company, to it at:
AAM Receivables Corp.
1840 Holbrook Avenue, Suite 2A
Detroit, MI 48212
Attention: Mark Umlauf
Telecopy No.: (313) 873-5472
(iv) in the case of the Servicer, to it at:
American Axle & Manufacturing, Inc.
1840 Holbrook Avenue
Detroit, MI 48212
Attention: Gary Witosky
Telecopy No.: (313) 974-2229
The Lockbox Bank shall not assign or transfer any of its
rights or obligations hereunder (other than to the Trustee) without the prior
written consent of the Trustee. This Letter Agreement may be amended only by a
written instrument executed by the Company, the Servicer, the Trustee and the
Lockbox Bank, acting by their representative officers thereunto duly
authorized. Except with respect to the amount of its fees payable hereunder,
the Lockbox Bank hereby unconditionally and irrevocably waives (so long as the
Pooling and Servicing Agreements are in effect) any rights of setoff or
banker's lien against, or to otherwise deduct from, any funds or other
evidences of payment held in
<PAGE>
6
Pooling Agreement
any Specified Account for any indebtedness or other claim owed by the Company or
the Servicer to the Lockbox Bank.
THIS LETTER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT
THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST OR REMEDIES HEREUNDER IN
RESPECT OF ANY RECEIVABLE MAY BE GOVERNED BY THE LAW OF A JURISDICTION OTHER
THAN NEW YORK.
This Letter Agreement (i) shall inure to the benefit of, and
be binding upon, the Company, the Servicer, the Trustee, the Lockbox Bank and
their respective successors and assigns and (ii) may be executed in two or
more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. Delivery of an executed
counterpart of a signature page to this Letter Agreement by facsimile
transmission shall be effective as delivery of a manually executed counterpart
of this Letter Agreement.
<PAGE>
7
Pooling Agreement
IN WITNESS WHEREOF, the parties hereto have caused this
Letter Agreement to be executed by their duly authorized officers as of the
date first above written.
Very truly yours,
AAM RECEIVABLES CORP.,
by
--------------------------
Title:
AMERICAN AXLE & MANUFACTURING,
INC., as Servicer,
by
-------------------------
Title:
Agreed to and accepted:
[NAME OF LOCKBOX BANK],
as Lockbox Bank
by
--------------------------
Title:
THE CHASE MANHATTAN BANK,
as Trustee
by
--------------------------
Title:
<PAGE>
Pooling Agreement
Exhibit B to the
Pooling Agreement
FORM OF ANNUAL OPINION OF COUNSEL
PROVISIONS TO BE INCLUDED
IN ANNUAL OPINION OF COUNSEL DELIVERED PURSUANT TO
SECTION 2.07(b) OF THE POOLING AGREEMENT ON JANUARY 31,
OF EACH YEAR COMMENCING WITH JANUARY , 1999
The opinion set forth below, which is to be delivered
pursuant to Section 2.07(b) of the Pooling Agreement, dated as of October 29,
1997, among AAM Receivables Corp., American Axle & Manufacturing, Inc.
("AAMI"), as Servicer, and The Chase Manhattan Bank, as Trustee, may be
subject to certain qualifications, assumptions, limitations and exceptions
taken or made in the opinions of counsel delivered on the Initial Issuance
Date with respect to similar matters. In addition, the opinion may contain the
following qualification as applicable:
With your permission, we have based our opinions set forth in paragraphs
1, 2 and 3 below as they relate to the laws of [states in which the
opiner does not have an office] (each a "UCC State") solely upon our
review of the relevant provisions of Sections 9-102, 9-103, 9-105, 9-106,
9-302, 9-304, 9-306, 9-401, 9-402 and 9-403 [and such additional Sections
as the opiner may determine] of the Uniform Commercial Code as enacted in
each UCC State as set forth in [the CCH Secured Transactions Guide or a
similar compilation]. We have assumed such provisions are presently in
effect and have not been modified in any respect by any other statute,
regulation or court decision with respect to the laws of each such UCC
State or otherwise. We call to your attention that we are not licensed to
practice in any of the UCC States nor do we profess any expertise with
respect to the laws thereof.
1. With respect to the transfer by AAMI, as Seller (the
"Seller") to AAM Receivables Corp. of all of the Seller's right, title and
interest in, to and under the Receivables, Related Property, Collections and
all rights (including rescission, replevin or reclamation) relating to any
Receivable originated by the Seller or arising therefrom (collectively, the
"Seller Property") pursuant to the terms of the Receivables Sale Agreement,
dated as of October 29, 1997 (as amended, supplemented or otherwise modified
thereafter, the "Receivables Sale Agreement"), between AAM Receivables Corp.
and the Seller, no filing or other action, other than such filing or action
described in the [opinions of counsel delivered on the Initial Issuance Date]
[or the opinions delivered on January 31 of the prior year pursuant to Section
2.07(b) of the Pooling Agreement] with respect to
<PAGE>
2
Pooling Agreement
similar matters, is necessary from the date of such opinions through 90 days
into the following calendar year to continue the perfected and priority status
of the interest of AAM Receivables Corp. in such Seller Property.
2. With respect to the transfer by AAM Receivables Corp. to
the Trust of all of AAM Receivables Corp.'s right, title and interest in, to
and under the Receivables and the other Trust Assets (as defined in the
Pooling Agreement) (collectively, the "Trust Property") pursuant to the terms
of the Pooling Agreement, no filing or other action, other than such filing or
action described in the [opinions of counsel delivered on the initial Issuance
Date] [or the opinions delivered on January 31 of the prior year pursuant to
Section 2.07(b) of the Pooling Agreement] with respect to similar matters is
necessary from the date of such opinions through 90 days into the following
calendar year to continue the perfected and priority status of the interest of
the Trust in such Trust Property.
3. Set forth on Schedule __ to this opinion is a list of all
UCC Financing Statements which have been filed by the Seller relating to the
Seller Property and by AAM Receivables Corp. relating to the Trust Property
and the earliest and latest date under the applicable UCC on which
continuation statements may be filed for each such financing statement. 1/
- --------
1/ In the event that the earliest date for filing any continuation
statement occurs prior to January 30 of the following year, such opinion shall
also be delivered to the Seller, AAM Receivables Corp. and the Servicer with a
notice stating that such continuation statements shall be filed on such
earliest date.
<PAGE>
Pooling Agreement
Schedule 1 to the
POOLING AGREEMENT
Receivables
American Axle & Manufacturing, Inc. aged trial
balance as of October 24, 1997, on computer diskette.
<PAGE>
Pooling Agreement
SCHEDULE 2 to the
POOLING AGREEMENT
Identification of Trust Accounts
The following accounts have been established by and at the
Chase Manhattan Bank.
Name Number
------ -------
Collection Account 507-831454
Company Collection Subaccount 507-830555
<PAGE>
Pooling Agreement
SCHEDULE 3 to the
POOLING AGREEMENT
Chief Executive Office
American Axle & Manufacturing, Inc.
World Headquarters
1840 Holbrook Avenue
Detroit, Michigan 48212
<PAGE>
EXECUTION COPY
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AAM MASTER TRUST
SERIES 1997-A SUPPLEMENT
TO
POOLING AGREEMENT
Dated as of October 29, 1997
Among
AAM RECEIVABLES CORP.
AMERICAN AXLE & MANUFACTURING, INC.
as Servicer
and
THE CHASE MANHATTAN BANK
as Trustee
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
ARTICLE I
Definitions
<S> <C>
Page
SECTION 1.01. Definitions...............................................................................1
ARTICLE II
Designation of VFC Certificates; Purchase and
Sale of the VFC Certificates
SECTION 2.01. Designation..............................................................................20
SECTION 2.02. The VFC Certificates and Series 1997-A
Subordinated Interest......................................................20
SECTION 2.03. Purchases of Interests in the VFC
Certificates and the Series 1997-A
Subordinated Interest......................................................21
SECTION 2.04. Delivery.................................................................................21
SECTION 2.05. Procedure for Initial Issuance and for
Increasing the Series 1997-A Invested
Amount.....................................................................22
SECTION 2.06. Procedure for Decreasing the Series
1997-A Invested Amount; Optional
Termination................................................................23
SECTION 2.07. Reductions of the Commitments............................................................25
SECTION 2.08. Interest; Commitment Fee.................................................................25
SECTION 2.09. Indemnification by the Company and
the Servicer...............................................................26
ARTICLE III
Article III of the Agreement
SECTION 3A.02. Establishment of Trust Accounts.........................................................28
SECTION 3A.03. Daily Allocations.......................................................................29
SECTION 3A.04. Determination of Interest...............................................................32
SECTION 3A.05. Determination of Series 1997-A Monthly
Principal.................................................................34
SECTION 3A.06. Applications............................................................................35
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Series 1997-A Supplement Contents, p. ii
ARTICLE IV
Distributions and Reports
<S> <C>
Page
SECTION 4A.01. Distributions...........................................................................37
SECTION 4A.02. Daily Reports...........................................................................38
SECTION 4A.03. Statements and Notices..................................................................38
ARTICLE V
Additional Early Amortization Events
SECTION 5.01. Additional Early Amortization Events.....................................................39
ARTICLE VI
Servicing Fee
SECTION 6.01. Servicing Compensation...................................................................43
ARTICLE VII
Change in Circumstances
SECTION 7.01. Illegality...............................................................................43
SECTION 7.02. Requirements of Law......................................................................44
SECTION 7.03. Taxes....................................................................................46
SECTION 7.04. Indemnity................................................................................50
SECTION 7.05. Assignment of Commitments Under Certain
Circumstances; Duty to Mitigate............................................51
SECTION 7.06. Limitation...............................................................................52
ARTICLE VIII
Covenants, Representations and Warranties
SECTION 8.01. Representations and Warranties
of the Company and the Servicer............................................53
SECTION 8.02. Covenants of the Company and
the Servicer...............................................................53
SECTION 8.03. Covenants of the Servicer................................................................54
SECTION 8.04. Covenant of the Company..................................................................55
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Series 1997-A Supplement Contents, p. iii
Page
<S> <C>
SECTION 8.05. Obligations Unaffected...................................................................55
SECTION 8.06. Representations and Warranties of the
Initial Purchasers and any Acquiring
Purchasers..................................................................55
ARTICLE IX
Conditions Precedent
SECTION 9.01. Conditions Precedent to Effectiveness
of Supplement..............................................................56
ARTICLE X
The Agent
SECTION 10.01. Appointment.............................................................................60
SECTION 10.02. Delegation of Duties....................................................................60
SECTION 10.03. Exculpatory Provisions..................................................................60
SECTION 10.04. Reliance by Agent.......................................................................61
SECTION 10.05. Notice of Servicer Default or Early
Amortization Event or Potential Early
Amortization Event........................................................61
SECTION 10.06. Non-Reliance on Agent and Other
Purchasers................................................................62
SECTION 10.07. Indemnification.........................................................................63
SECTION 10.08. Agent in Its Individual Capacity........................................................63
SECTION 10.09. Successor Agent.........................................................................63
ARTICLE XI
Miscellaneous
SECTION 11.01. Ratification of Agreement...............................................................64
SECTION 11.02. Governing Law...........................................................................64
SECTION 11.03. Further Assurances......................................................................64
SECTION 11.04. Payments................................................................................64
SECTION 11.05. Costs and Expenses......................................................................65
SECTION 11.06. No Waiver; Cumulative Remedies..........................................................65
SECTION 11.07. Amendments..............................................................................65
SECTION 11.08. Severability............................................................................66
SECTION 11.09. Notices.................................................................................67
SECTION 11.10. Successors and Assigns..................................................................67
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Series 1997-A Supplement Contents, p. iv
Page
<S> <C>
SECTION 11.11. Counterparts............................................................................72
SECTION 11.12. Adjustments; Setoff.....................................................................72
SECTION 11.13. Limitation of Payments by Company.......................................................73
SECTION 11.14. No Bankruptcy Petition..................................................................73
ARTICLE XII
Final Distributions
SECTION 12.01. Certain Distributions...................................................................74
</TABLE>
<PAGE>
Series 1997-A Supplement
SERIES 1997-A SUPPLEMENT dated as of
October 29, 1997 (this "Supplement"), among AAM
RECEIVABLES CORP., a Delaware corporation (the
"Company"), AMERICAN AXLE & MANUFACTURING, INC., a
Delaware corporation, as servicer (the "Servicer"),
THE CHASE MANHATTAN BANK, as the initial purchaser
(the "Initial Purchaser"), the other financial
institutions from time to time parties hereto as
purchasers pursuant to Section 11.10, THE CHASE
MANHATTAN BANK, a New York corporation, as agent
(the "Agent") for the Purchasers (as hereinafter
defined) in its individual capacity and not as
Trustee and THE CHASE MANHATTAN BANK, in its
capacity as trustee (the "Trustee") under the
Agreement.
W I T N E S S E T H :
WHEREAS, the Company, the Servicer and the Trustee have
entered into the Pooling Agreement, dated as of October 29, 1997 (the
"Agreement");
WHEREAS, the Agreement provides, among other things, that
the Company, the Servicer and the Trustee may at any time and from time to
time enter into supplements to the Agreement for the purpose of authorizing
the issuance on behalf of the Trust by the Company for execution and
redelivery to the Trustee for authentication of one or more Series of Investor
Certificates; and
WHEREAS, the Company, the Servicer, the Trustee and the
Initial Purchaser wish to supplement the Agreement as hereinafter set forth.
NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, and other good and valuable consideration,
the receipt and sufficiency of which are hereby expressly acknowledged, the
parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Definitions. (a) The following
words and phrases shall have the following meanings with
<PAGE>
2
Series 1997-A Supplement
respect to Series 1997-A and the definitions of such terms are applicable to
the singular as well as the plural form of such terms and to the masculine as
well as the feminine and neuter genders of such terms:
"ABR" shall mean, for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%. If for any reason, the Agent shall have
determined (which determination shall be conclusive absent manifest error)
that it is unable to ascertain the Federal Funds Effective Rate for any
reason, including the failure of the Federal Reserve Bank of New York to
publish rates or the inability of the Agent to obtain quotations in accordance
with the terms thereof, the ABR shall be determined without regard to clause
(b) of the immediately preceding sentence until the circumstances giving rise
to such inability no longer exist. Any change in the ABR due to a change in
the Prime Rate or the Federal Funds Effective Rate shall be effective on the
effective date of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively. The term "Prime Rate" shall mean the rate of interest per
annum publicly announced from time to time by the Agent as its prime rate in
effect at its principal office in New York City; each change in the Prime Rate
shall be effective on the date such change is publicly announced as being
effective. The term "Federal Funds Effective Rate" shall mean, for any day,
the weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a Business
Day, the average of the quotations for the day for such transactions received
by the Agent from three Federal funds brokers of recognized standing selected
by it.
"Accrual Period" shall mean, with respect to Series 1997-A,
the period from and including a Distribution Date to but excluding the next
succeeding Distribution Date; provided that in the case of a Eurodollar
Tranche with a NIBO Period, it shall mean the period from and including the
Increase Date to but excluding the next succeeding Distribution Date; provided
further that in the case of the initial Accrual Period, it shall mean the
period from and including the Issuance Date to but excluding the next
succeeding Distribution Date.
<PAGE>
3
Series 1997-A Supplement
"Accrued Expense Adjustment" shall mean, for any Business
Day in any Accrual Period, the amount, if any, which may be less than zero,
equal to the difference between (a) the entire amount of (i) the Commitment
Fee, if any, due and payable on the next succeeding Distribution Date, (ii)
the Series 1997-A Monthly Interest to be distributed on the next succeeding
Distribution Date, (iii) the Series 1997-A Monthly Servicing Fee, (iv) the
aggregate amount of all previously accrued, unpaid and unallocated Series
1997-A Monthly Interest for prior Distribution Dates, (v) the aggregate amount
of all accrued, unpaid and unallocated Additional Interest and (vi) all
accrued Program Costs, in each case for such Accrual Period determined as of
such day, and (b) the aggregate of the amounts transferred to the Series
1997-A Non-Principal Collection Sub-subaccount on or before such day in
respect of such Accrual Period pursuant to subsection 3A.03(a)(i), before
giving effect to any transfer made in respect of the Accrued Expense
Adjustment on such day pursuant to the proviso contained in such subsection.
"Accrued Expense Amount" shall mean, for each Business Day
during an Accrual Period, the sum of (a) for Floating Tranches and Eurodollar
Tranches with Eurodollar Periods, in the case of each of the first ten
Business Days in the Accrual Period, one-tenth of the Series 1997-A Monthly
Interest determined as of such Business Day, (b) for Eurodollar Tranches with
NIBO Periods, in the case of each Business Day in the Accrual Period, the
Daily Interest Expense determined as of such Business Day, (c) in the case of
each of the first ten Business Days in the Accrual Period, one-tenth of the
Commitment Fee payable to the VFC Certificate holders on the next succeeding
Distribution Date, (d) in the case of each of the first ten Business Days in
the Accrual Period, one-tenth of the Series 1997-A Monthly Servicing Fee (in
the case of each of the foregoing clauses (a) through (d), up to the amount
thereof due and payable on such next succeeding Distribution Date, but subject
to Accrued Expense Adjustments as provided in subsection 3A.03(a)(i)), (e) the
aggregate amount of all previously accrued, unpaid and unallocated Series
1997-A Monthly Interest for prior Distribution Dates, (f) the aggregate amount
of all accrued, unpaid and unallocated Additional Interest and (g) all Program
Costs that have accrued since the preceding Business Day.
"Acquiring Purchaser" shall have the meaning
assigned in subsection 11.10(b).
<PAGE>
4
Series 1997-A Supplement
"Additional Interest" shall have the meaning
assigned in subsection 3A.04(b).
"Agent" shall have the meaning specified in the
recitals hereto.
"Aggregate Commitment Amount" shall mean, with respect to
any Business Day, the aggregate amount of the Commitments of all Purchasers on
such date, as reduced from time to time pursuant to Section 2.07.
"Aggregate Receivables Amount" shall mean with respect to
any date of determination, (i) the aggregate Principal Amount of all Eligible
Receivables in the Trust at the end of the Business day immediately preceding
such date minus (ii) the Aggregate Overconcentration Amount for such date;
provided that notwithstanding anything to the contrary contained herein,
during any GMT/PPAP Rejection Period, no Tooling Receivables relating to the
GMT 800 Program shall be included in the calculation of the Aggregate
Receivables Amount.
"Applicable Margin" shall mean at any date of determination
until the Margin Increase Date, for each Eurodollar Tranche, 0.75% per annum
and, for the Floating Tranche, 0.0% per annum, provided that from and after
the Margin Increase Date, the Applicable Margin at any time shall be equal to
the LIBOR Margin at such time (as set forth on Schedule B to the Credit
Agreement) for each Eurodollar Tranche and the ABR Margin at such time (as set
forth on Schedule B to the Credit Agreement) for the Floating Tranche.
"Article VII Costs" shall mean any amounts due
pursuant to Article VII.
"Available Commitment" shall mean, with respect to any
Business Day, the (i) Aggregate Commitment Amount on such Business Day minus
(ii) the Series 1997-A Invested Amount.
"Available Pricing Amount" shall mean, on any Business Day,
the sum of (i) the Unallocated Balance plus (ii) the Increase, if any, on such
date.
"Benefitted Purchaser" shall have the meaning
assigned in Section 11.12.
"Carrying Cost Reserve Ratio" shall mean, as of
any Settlement Report Date and continuing until (but not
<PAGE>
5
Series 1997-A Supplement
including) the next Settlement Report Date, an amount (expressed as a
percentage) equal to (a) the product of (i) 2.0 times Days Sales Outstanding
as of such day and (ii) 1.30 times the ABR in effect as of such day divided by
(b) 365.
"Certificate Rate" shall mean on any date of determination,
the average (weighted based on the respective outstanding amounts of the
Floating Tranche and each Eurodollar Tranche) of the ABR in effect on such day
and One-Month LIBOR or the NIBO Rate in effect on such day plus, in each case,
the Applicable Margin.
"Change in Control" shall mean the occurrence of any event
the result of which causes the Company not to be a direct or indirect, wholly
owned Subsidiary of American Axle & Manufacturing, Inc.
"Claim" shall have the meaning specified in
subsection 2.09(a).
"Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time.
"Commitment" shall mean, as to any Purchaser, its obligation
to maintain and, subject to certain conditions, increase, its Series 1997-A
Purchaser Invested Amount, in an aggregate amount not to exceed at any one
time outstanding the amount set forth opposite such Purchaser's name on
Schedule 1 under the caption "Commitment", as such amount may be reduced from
time to time as provided herein; collectively, as to all Purchasers, the
"Commitments".
"Commitment Fee" shall have the meaning assigned
in subsection 2.08(b).
"Commitment Percentage" shall mean, as to any Purchaser and
as of any date, the percentage equivalent of a fraction, the numerator of
which is such Purchaser's Commitment as set forth on Schedule 1 and the
denominator of which is the Aggregate Commitment Amount as of such date.
"Commitment Period" shall mean the period commencing on the
Issuance Date and terminating on the date that the Series 1997-A Amortization
Period commences.
"Commitment Reduction" shall have the meaning
assigned in subsection 2.07(a).
<PAGE>
6
Series 1997-A Supplement
"Commitment Termination Date" shall mean the earlier of (a)
the Scheduled Revolving Termination Date and (b) the date on which the
Commitments are terminated in whole pursuant to Section 2.07.
"Commitment Transfer Supplement" shall have the
meaning assigned in subsection 11.10(c).
"Company Indemnified Person" shall have the
meaning assigned in subsection 2.09(a).
"Credit Agreement" shall mean the Credit Agreement dated as
of October 27, 1997, among American Axle & Manufacturing of Michigan, Inc.,
the Seller, the lenders named therein, The Chase Manhattan Bank, as
Administrative Agent and Collateral Agent, and Chase Manhattan Bank Delaware,
as Fronting Bank (including any amendments or modifications thereto or
refinancing thereof).
"Daily Interest Adjustment" shall mean, for any Business Day
in any Accrual Period, the amount, if any, which may be less than zero, equal
to the difference between (i) the sum of (A) the Series 1997-A Monthly
Interest determined as of such day, (B) the aggregate amount of all previously
accrued, unpaid and unallocated Series 1997-A Monthly Interest for prior
Distribution Dates and (C) the aggregate amount of all accrued, unpaid and
unallocated Additional Interest and (ii) the amount on deposit in the Series
1997-A Accrued Interest Sub-subaccount on such day after making any deposit
thereto pursuant to subsection 3A.03(c), before giving effect to any transfer
made in respect of the Daily Interest Adjustment on such day pursuant to the
proviso to such subsection.
"Daily Interest Deposit" shall mean, for any Business Day,
an amount equal to (i) the amount of accrued and unpaid Daily Interest Expense
in respect of such day plus (ii) the aggregate amount of all previously
accrued, unpaid and unallocated Series 1997-A Monthly Interest for prior
Distribution Dates plus (iii) the aggregate amount of all accrued, unpaid and
unallocated Additional Interest.
"Daily Interest Expense" for any day in any Accrual Period,
shall mean the sum of (A) the product of (i) the portion of the Series 1997-A
Invested Amount (calculated without regard to clauses (d) and (e) of the
definition of Series 1997-A Purchaser Invested Amount) allocable to the
Floating Tranche on such day divided by 365 and (ii) the ABR plus the
Applicable Margin in effect on such day, and (B) the product of (i) the
portion of the
<PAGE>
7
Series 1997-A Supplement
Series 1997-A Invested Amount (calculated without regard to clauses (d) and
(e) of the definition of Series 1997-A Purchaser Invested Amount) allocable to
Eurodollar Tranches on such day divided by 360 and (ii) either (A) One-Month
LIBOR if the Eurodollar Tranche has a Eurodollar Period or (B) the NIBO Rate
if the Eurodollar Tranche has a NIBO Period plus the Applicable Margin on such
day in effect with respect thereto; provided, however, that for the purposes
of calculating Series 1997-A Monthly Interest, the "Daily Interest Expense"
for any day following the date of determination shall be based on the
allocable portions of the Series 1997-A Invested Amount, the ABR, One-Month
LIBOR, the NIBO Rate and the Applicable Margins as of or in effect on such
date of determination; provided further that for any such day during the
continuation of an Early Amortization Period, the "Daily Interest Expense" for
such day shall be equal to the greater of (i) the sum of the amounts
calculated pursuant to clauses (A) and (B) above and (ii) the product of (x)
the Series 1997-A Invested Amount on such day divided by 365 and (y) the ABR
in effect on such day plus 2.00% per annum.
"Daily Report" shall mean a report prepared by the Servicer
on each Business Day for the period specified therein, in substantially the
form of Exhibit D.
"Days Sales Outstanding" shall mean, as of any Settlement
Report Date and continuing until the next Settlement Report Date, the number
of days equal to the product of (a) 91 and (b) the amount obtained by dividing
(i) the Aggregate Receivables Amount as at the last day of the Settlement
Period immediately preceding such earlier Settlement Report Date, by (ii) the
aggregate Principal Amount of Receivables originated by the Seller (whether or
not billed) for the three Settlement Periods immediately preceding such
earlier Settlement Report Date, computed solely with respect to Receivables of
Designated Obligors.
"Decrease" shall have the meaning assigned in
Section 2.06.
"Designated Obligor" shall mean GM, Ford and any other
Obligor designated by the Servicer and approved by the Agent, provided that if
such other Obligor is of a credit quality comparable to GM, then such approval
shall not be unreasonably withheld, from time to time based on criteria
provided by the Agent to the Servicer.
"Dilution Horizon Factor" shall mean 1.0.
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8
Series 1997-A Supplement
"Dilution Period" shall mean, as of any Settlement Report
Date and continuing until (but not including) the next Settlement Report Date,
the quotient of (i) the product of (A) the aggregate Principal Amount of
Receivables that were initially billed by the Seller during the Settlement
Period preceding such earlier Settlement Report Date and (B) the Dilution
Horizon Factor and (ii) the aggregate Principal Amount of all Eligible
Receivables billed to Designated Obligors in the Trust as of the last day of
the Settlement Period preceding such earlier Settlement Report Date, computed
solely with respect to Receivables of Designated Obligors.
"Dilution Ratio" shall mean, as of the last day of each
Settlement Period, an amount (expressed as a percentage) equal to the
aggregate amount of Dilution Adjustments made during such Settlement Period
divided by the aggregate Principal Amount of Receivables that were initially
billed by the Seller during such Settlement Period, computed solely with
respect to Receivables of Designated Obligors.
"Dilution Reserve Ratio" shall mean, as of any Settlement
Report Date and continuing until (but not including) the next Settlement
Report Date, an amount (expressed as a percentage) that is calculated as
follows:
DRR = [(c * d) + e] * f
Where:
DRR = Dilution Reserve Ratio;
c = 2.00;
d = the average of the Dilution Ratio that occurred during the
period of twelve consecutive Settlement Periods ending
immediately prior to such earlier Settlement Report Date;
e = The product of (i) the twelve-month Sample Standard
Deviation of the Dilution Ratio as of the end of each of the
twelve consecutive Settlement Periods immediately preceding
such earlier Settlement Report Date and (ii) 1.96.
f = the Dilution Period.
<PAGE>
9
Series 1997-A Supplement
"Distribution Date" shall mean (i) in the case of a Floating
Tranche or a Eurodollar Tranche with a Eurodollar Period, the 15th day of the
month, or if such 15th day is not a Business Day, the next succeeding Business
Day or (ii) in the case of a Eurodollar Tranche with a NIBO Period, the NIBO
Distribution Date.
"Early Amortization Event" shall have the meanings assigned
in Section 5.01 of this Supplement and Section 7.01 of the Agreement.
"Early Amortization Period" shall have the meaning assigned
in Section 5.01 of this Supplement and Section 7.01 of the Agreement.
"Effective Date" shall have the meaning assigned
in Section 9.01.
"Eurodollar Lending Office" means, as to the Trustee or any
successor thereto, its office, branch or affiliate as it may designate as its
Eurodollar Lending Office by notice to the Purchasers and the Agent.
"Eurodollar Period" shall mean, with respect to
any Eurodollar Tranche:
(a) initially, the period commencing on the Issuance Date,
Increase Date or conversion date, as the case may be, with respect to
such Eurodollar Tranche and ending one month thereafter; and
(b) thereafter, each period commencing on the last day of
the immediately preceding Eurodollar Period applicable to such
Eurodollar Tranche and ending one month thereafter;
provided that, all of the foregoing provisions relating to
Eurodollar Periods are subject to the following:
(1) if any Eurodollar Period would otherwise end on a day
that is not a Business Day, such Eurodollar Period shall be extended
to the next succeeding Business Day unless the result of such
extension would be to carry such Eurodollar Period into another
calendar month in which event such Eurodollar Period shall end on the
immediately preceding Business Day;
(2) any Eurodollar Period that would otherwise extend beyond
the Scheduled Revolving Termination Date
<PAGE>
10
Series 1997-A Supplement
shall end on the Scheduled Revolving Termination Date;
and
(3) any Eurodollar Period that begins on the last Business
Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of
such Eurodollar Period) shall end on the last Business Day of a
calendar month.
"Eurodollar Tranche" shall mean a portion of the Series
1997-A Invested Amount for which the Series 1997-A Monthly Interest is
calculated by reference to One-Month LIBOR or the NIBO Rate determined by
reference to a particular Eurodollar Period or NIBO Period.
"Excess Program Costs" shall have the meaning assigned to
such term within the definition of "Program Costs".
"Floating Tranche" shall mean that portion of the Series
1997-A Invested Amount not allocated to a Eurodollar Tranche for which the
Series 1997-A Monthly Interest is calculated by reference to the ABR.
"GMT/PPAP Rejection Period" shall mean the period commencing
on any date on which the Seller shall fail any GM Production Part Approval
Process with respect to the GMT 800 Program such that GM informs the Seller
that it does not intend to pay its outstanding obligations with respect to the
GMT 800 Program and ending on the date that the Seller has received notice
from GM that the Seller has complied with such GM Production Part Approval
Process, and GM has informed the Seller that it intends to pay its obligations
with respect to the GMT 800 Program or has made any payments in respect
thereof.
"Increase" shall have the meaning assigned in
subsection 2.05(a).
"Increase Amount" shall have the meaning assigned
in subsection 2.05(a).
"Increase Date" shall have the meaning assigned in
subsection 2.05(a).
"Initial Purchaser" shall have the meaning
specified in the recitals hereto.
"Initial Series 1997-A Invested Amount" shall mean
$75,000,000.
<PAGE>
11
Series 1997-A Supplement
"Initial Series 1997-A Subordinated Interest
Amount" shall mean the Series 1997-A Subordinated Interest
Amount in respect of the Issuance Date.
"Interest Shortfall" shall have the meaning
assigned in subsection 3A.04(b).
"Invested Amount" shall mean, with respect to Series 1997-A,
the Series 1997-A Invested Amount.
"Issuance Date" shall mean October 29, 1997.
"Majority Purchasers" shall mean, on any day, Purchasers
having, in the aggregate, more than 50% of the Aggregate Commitment Amount.
"Margin Increase Date" shall mean the date that is 270 days
after the initial Receivables Purchase Date, or, if such date is not a
Business Day, the next succeeding Business Day.
"Maximum Commitment Amount" shall mean
$125,000,000.
"Maximum Invested Amount" shall mean, as of any day, the
lesser of (a) the Maximum Commitment Amount as of such day and (b) the
Aggregate Receivables Amount as of such day minus the Series 1997-A Required
Subordinated Amount as of such day.
"Minimum Ratio" shall mean 5.0%.
"Monthly Interest Payment" shall have the meaning
assigned in subsection 3A.06(b).
"NIBO Distribution Date" shall mean the last day
of any NIBO Period.
"NIBO Period" means, with respect to any
Eurodollar Tranche:
(a) initially, the period commencing on the Issuance Date,
Increase Date or conversion date, as the case may be, with respect to
such Eurodollar Tranche and ending one week, two weeks, or three
weeks thereafter, as determined by the Company pursuant to this
Agreement; and
(b) thereafter, each period commencing on the last day of
the immediately preceding NIBO Period
<PAGE>
12
Series 1997-A Supplement
applicable to such Eurodollar Tranche and ending one week, two weeks,
or three weeks thereafter, as determined by the Company pursuant to
this Agreement;
provided that, all of the foregoing provisions relating to
NIBO Periods are subject to the following:
(1) if any NIBO Period would otherwise end on a day that is
not a Business Day, such NIBO Period shall be extended to the next
succeeding business Day; and
(2) any NIBO Period that would otherwise extend beyond the
Scheduled Revolving Termination Date shall end on the Scheduled
Revolving Termination Date.
"NIBO Rate" means, with respect to any Eurodollar Tranche
for any NIBO Period, an interest rate per annum (rounded upwards, if
necessary, to the next higher 1/16 of 1%) equal to the interest rate at which
dollar deposits of $1,000,000 and for a maturity comparable to such NIBO
Period are offered in immediately available funds to the Trustee at the
Eurodollar Lending Office where its foreign currency and exchange operations
and Eurodollar funding operations are customarily conducted in the
international interbank market at approximately 11:00 A.M., New York City
time, two Business Days prior to the commencement of such NIBO Period.
"One-Month LIBOR" shall mean, with respect to any Eurodollar
Tranche for any Eurodollar Period, the rate per annum, as recorded by the
Trustee, which is the rate (rounded to the nearest 1/16 of 1%) at which U.S.
Dollar deposits in a principal amount of not less than $1,000,000 maturing in
one month are offered to the principal London office of the Trustee in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Eurodollar Period.
"Optional Repurchase Percentage" shall mean 10% of the
largest Series 1997-A Invested Amount at any time on or before the date of
determination.
"Optional Termination Date" shall have the meaning
assigned in subsection 2.06(d)(i).
"Optional Termination Notice" shall have the
meaning assigned in subsection 2.06(d)(i).
"Participants" shall have the meaning assigned in
subsection 11.10(f).
<PAGE>
13
Series 1997-A Supplement
"Program Costs" shall mean, for any Business Day, the sum of
(i) all expenses, indemnities and other amounts due and payable to the
Purchasers and the Agent under the Agreement or this Supplement (including,
without limitation, any Article VII Costs), (ii) the product of (A) all unpaid
fees and expenses due and payable to counsel to, and independent auditors of,
the Company (other than fees and expenses payable on or in connection with the
closing of the issuance of the VFC Certificates) and (B) a fraction, the
numerator of which is the Aggregate Commitment Amount on such Business Day and
the denominator of which is the sum of (x) the Aggregate Invested Amount on
such Business Day (excluding the Series 1997-A Invested Amount and the
Invested Amount in respect of any variable funding certificate of any other
Outstanding Series) and (y) the Aggregate Commitment Amount on such Business
Day plus the aggregate Commitment amount for any variable funding certificate
of any other Outstanding Series and (iii) all unpaid fees and expenses due and
payable to Rating Agencies rating the VFC Certificates; provided, however,
that the amount of Program Costs payable pursuant to Section 3A.06(b)(ii)
shall not exceed $100,000 in the aggregate in any fiscal year of the Servicer
(any amount of the foregoing expenses, indemnities and fees in excess of
$100,000 shall be referred to herein as "Excess Program Costs").
"Purchase Termination Event" shall have the meaning assigned
in Section 7.01 of the Receivables Sale Agreement.
"Purchaser" shall mean each purchaser of a VFC Certificate,
including each Initial Purchaser and each Acquiring Purchaser.
"Rating Agency" shall mean, in the event that Series 1997-A
has been rated, S&P, DCR or any such other rating agency that has rated the
VFC Certificates, as applicable; provided that in the event that Series 1997-A
has not been rated, any reference to "Rating Agency" or the "Rating Agencies"
shall be deemed to have been deleted herefrom and from the Agreement; provided
further that, in the case of the term "Rating Agency Condition", so long as
that Series 1997-A has not been rated, references to such term shall not be
deemed deleted but shall be modified as set forth under the definition of such
term.
"Rating Agency Condition" shall, with respect to any action,
have the meaning assigned in Section 1.01 of the Agreement; provided that in
the event that Series 1997-A has
<PAGE>
14
Series 1997-A Supplement
not been rated, any reference to a "Rating Agency Condition" shall be deemed
to be a reference to the prior written consent of the Agent with respect to
such action.
"Record Date" shall mean, with respect to any
Distribution Date, the Business Day immediately preceding such date.
"Register" shall have the meaning assigned in
subsection 11.10(d).
"Scheduled Revolving Termination Date" shall mean the last
day of the Settlement Period ending in October 2003.
"Series 1997-A" shall mean the Series of Investor
Certificates and Subordinated Company Interest, the Principal Terms of which
are set forth in this Supplement.
"Series 1997-A Accrued Interest Sub-subaccount"
shall have the meaning assigned in subsection 3A.02(a).
"Series 1997-A Adjusted Invested Amount" shall mean, as of
any date of determination, (i) the Series 1997-A Invested Amount on such date,
minus (ii) the amount on deposit in the Series 1997-A Principal Collection
Sub- subaccount on such date up to a maximum of the Series 1997-A Invested
Amount.
"Series 1997-A Allocable Charged-Off Amount" shall
mean, with respect to any Special Allocation Settlement
Report Date, the "Allocable Charged-Off Amount", if any,
that has been allocated to Series 1997-A.
"Series 1997-A Allocable Recoveries Amount" shall mean, with
respect to any Special Allocation Settlement Report Date, the "Allocable
Recoveries Amount", if any, that has been allocated to Series 1997-A.
"Series 1997-A Allocated Receivables Amount" shall mean, on
any date of determination, the lower of (i) the Series 1997-A Target
Receivables Amount on such day and (ii) the Aggregate Receivables Amount on
such day times the percentage equivalent of a fraction, the numerator of which
is the Series 1997-A Target Receivables Amount on such day and the denominator
of which is the Aggregate Target Receivables Amount on such day.
"Series 1997-A Amortization Period" shall mean the
period commencing on the Business Day following the earliest
<PAGE>
15
Series 1997-A Supplement
to occur of (i) the date on which an Early Amortization Period is declared to
commence or automatically commences, (ii) the Optional Termination Date and
(iii) the Scheduled Revolving Termination Date and ending on the earlier of
(i) the date when the Series 1997-A Invested Amount shall have been reduced to
zero and all accrued interest and other amounts owing on the VFC Certificates
and to the Agent and the Purchasers hereunder shall have been paid and (ii)
the Series 1997-A Termination Date.
"Series 1997-A Collections" shall mean, with respect to any
Business Day, an amount equal to the product of (i) the Series 1997-A Invested
Percentage on such Business Day and (ii) Aggregate Daily Collections.
"Series 1997-A Collection Subaccount" shall have
the meaning assigned in subsection 3A.02(a).
"Series 1997-A Invested Amount" shall mean, as of any date
of determination, the sum of the Series 1997-A Purchaser Invested Amounts of
all Purchasers on such date.
"Series 1997-A Invested Percentage" shall mean, with respect
to any Business Day (i) during the Series 1997- A Revolving Period, the
percentage equivalent of a fraction, the numerator of which is the Series
1997-A Allocated Receivables Amount as of the end of the immediately preceding
Business Day and the denominator of which is the greater of (A) the Aggregate
Receivables Amount as of the end of the immediately preceding Business Day and
(B) the sum of the numerators used to calculate the Invested Percentage for
all Outstanding Series on the Business Day for which such percentage is
determined and (ii) during the Series 1997-A Amortization Period, the
percentage equivalent of a fraction, the numerator of which is the Series
1997-A Allocated Receivables Amount as of the end of the last Business Day of
the Series 1997-A Revolving Period (provided that if during the Series 1997-A
Amortization Period, the amortization periods of all other Outstanding Series
which were outstanding prior to the commencement of the Series 1997-A
Amortization Period commence, then, from and after the date the last of such
series commences its Amortization Period, the numerator shall be the Series
1997- A Allocated Receivables Amount as of the end of the Business Day
preceding such date) and the denominator of which is the greater of (A) the
Aggregate Receivables Amount as of the end of the immediately preceding
Business Day and (B) the sum of the numerators used to calculate the Invested
Percentage for all Outstanding Series on the Business Day for which such
percentage is determined.
<PAGE>
16
Series 1997-A Supplement
"Series 1997-A Monthly Interest" shall mean, with respect to
any Accrual Period, the sum of the Daily Interest Expense for each day in such
Accrual Period.
"Series 1997-A Monthly Interest Distribution"
shall have the meaning assigned in subsection 3A.04(a).
"Series 1997-A Monthly Principal Payment" shall
have the meaning assigned in Section 3A.05.
"Series 1997-A Monthly Servicing Fee" shall have
the meaning assigned in Section 6.01.
"Series 1997-A Non-Principal Collection Sub- subaccount"
shall have the meaning assigned in subsection 3A.02(a).
"Series 1997-A Principal Collection Sub- subaccount" shall
have the meaning assigned in subsection 3A.02(a).
"Series 1997-A Purchaser Invested Amount" shall mean, with
respect to any Purchaser on the Issuance Date, an amount equal to the product
of such Purchaser's Commitment Percentage on such date and the Initial Series
1997-A Invested Amount, and with respect to such Purchaser on any date of
determination thereafter, an amount equal to (a) such Purchaser's Series
1997-A Purchaser Invested Amount on the immediately preceding Business Day
(or, with respect to the day as of which such Purchaser becomes a party to
this Supplement, whether by executing a counterpart hereof, a Commitment
Transfer Supplement or otherwise, the portion of the transferor's Series
1997-A Purchaser Invested Amount being purchased, in the case of an Acquiring
Purchaser), plus (b) the amount of any increases in such Purchaser's Series
1997-A Purchaser Invested Amount pursuant to Section 2.05 made on such day,
minus (c) the amount of any distributions to such Purchaser pursuant to
Section 2.06 or subsection 3A.06(c)(i) on such day minus (d) the aggregate
Series 1997-A Allocable Charged-Off Amount applied to such Purchaser on or
prior to such date pursuant to subsection 3A.05(b)(ii) plus (e) (but only to
the extent of any unreimbursed reductions made pursuant to clause (d) above)
the aggregate Series 1997-A Allocable Recoveries Amount applied to such
Purchaser on or prior to such date pursuant to subsection 3A.05(c)(i).
"Series 1997-A Required Reserves Ratio" shall mean, the
greater of (i) the Dilution Reserve Ratio and (ii) the Minimum Ratio.
<PAGE>
17
Series 1997-A Supplement
"Series 1997-A Required Subordinated Amount" shall mean, (a)
on any date of determination during the Series 1997-A Revolving Period, an
amount equal to the sum of:
(i) an amount equal to the product of (A) the Series 1997-A
Adjusted Invested Amount on such day (after giving effect to any
increase or decrease thereof on such day) and (B) a fraction, the
numerator of which is the Series 1997-A Required Reserves Ratio and
the denominator of which is one minus the Series 1997-A Required
Reserves Ratio;
(ii) the product of (A) the Series 1997-A Invested Amount on
such day (after giving effect to any increase or decrease thereof on
such day) and (B) a fraction, the numerator of which is the Carrying
Cost Reserve Ratio and the denominator of which is one minus the Series
1997-A Required Reserves Ratio;
(iii) the product of (A) the Principal Amount of Receivables
in the Trust on such day, (B) a fraction, the numerator of which is the
Series 1997-A Invested Amount on such day and the denominator of
which is the Aggregate Invested Amount on such day (after giving
effect to any increase or decrease thereof on such day) and (C) a
fraction, the numerator of which is the Servicing Reserve Ratio and
the denominator of which is one minus the Series 1997-A Required
Reserves Ratio; and
(iv) the product of (A) the Principal Amount of Receivables
from Eligible Obligors which are not Designated Obligors and (B) a
fraction, the numerator of which is 48% and the denominator of which
is one minus the Series 1997-A Required Reserves Ratio.
and (b) on any date of determination during the Series 1997- A Amortization
Period, an amount equal to the Series 1997-A Required Subordinated Amount on
the last Business Day of the Series 1997-A Revolving Period; provided, in each
of the foregoing clauses (a) and (b), that such amount shall be adjusted on
each Special Allocation Settlement Report Date, if any, as set forth in
Section 3A.05(b)(i) and Section 3A.05(c)(ii).
"Series 1997-A Revolving Period" shall mean the period
commencing on the Issuance Date and terminating on the earliest to occur of
the close of business on (i) the date on which an Early Amortization Period is
declared to
<PAGE>
18
Series 1997-A Supplement
commence or automatically commences, (ii) the Optional Termination Date and
(iii) the Commitment Termination Date.
"Series 1997-A Subordinated Interest" shall have
the meaning assigned in subsection 2.02(b).
"Series 1997-A Subordinated Interest Amount" shall mean, for
any date of determination, an amount equal to (i) the Series 1997-A Allocated
Receivables Amount minus (ii) the Series 1997-A Adjusted Invested Amount.
"Series 1997-A Subordinated Interest Increase Amount" shall
have the meaning assigned in subsection 2.05(a).
"Series 1997-A Subordinated Interest Reduction Amount" shall
have the meaning assigned in subsection 2.06(b).
"Series 1997-A Target Receivables Amount" shall mean, on any
date of determination, the sum of (i) the Series 1997-A Adjusted Invested
Amount on such day and (ii) the Series 1997-A Required Subordinated Amount for
such day.
"Series 1997-A Termination Date" shall mean the Distribution
Date that occurs in April 2004.
"Servicer Indemnified Person" shall have the
meaning specified in subsection 2.09(b).
"Servicing Reserve Ratio" shall mean, as of any Settlement
Report Date and continuing until (but not including) the next Settlement
Report Date, an amount (expressed as a percentage) equal to (i) the product of
(A) the Servicing Fee Percentage and (B) 2.0 times Days Sales Outstanding as
of such earlier Settlement Report Date divided by (c) 360.
"Transfer Issuance Date" shall mean the date on which a
Commitment Transfer Supplement becomes effective pursuant to the terms of such
Commitment Transfer Supplement.
"Transferee" shall have the meaning assigned in
subsection 11.10(f).
"Trust Accounts" shall have the meaning assigned
in subsection 3A.02(a).
<PAGE>
19
Series 1997-A Supplement
"Unallocated Balance" shall mean, as of any Business Day,
the sum of (i) the portion of the Series 1997- A Invested Amount for which
interest is then being calculated by reference to the ABR and (ii) the portion
of the Series 1997-A Invested Amount allocated to any Eurodollar Tranche the
Eurodollar Period or NIBO Period in respect of which expires on such Business
Day.
"VFC Certificate" shall mean a VFC Certificate, Series
1997-A, executed by the Company and authenticated by or on behalf of the
Trustee, substantially in the form of Exhibit A.
"VFC Certificate holders" shall mean the
Purchasers.
"VFC Certificate holders' Interest" shall have the
meaning assigned in subsection 2.02(a).
(b) If any term, definition or provision contained herein
conflicts with or is inconsistent with any term, definition or provision
contained in the Agreement, the terms and provisions of this Supplement shall
govern. All capitalized terms not otherwise defined herein are defined in the
Agreement. All Article, Section, subsection, Exhibit and Schedule references
herein shall mean Article, Section or subsection of or Exhibit or Schedule to
this Supplement, except as otherwise provided herein. Unless otherwise stated
herein, as the context otherwise requires or if such term is otherwise defined
in the Agreement, each capitalized term used or defined herein shall relate
only to the VFC Certificates and the Series 1997-A Subordinated Interest and
to no other Series of Investor Certificates or Subordinated Company Interest
issued by the Trust.
(c) Any reference herein to a Schedule or Exhibit to this
Supplement shall be deemed to be a reference to such Schedule or Exhibit as it
may be amended, modified or supplemented from time to time to the extent that
such Schedule or Exhibit may be amended, modified or supplemented (or any term
or provision of any Transaction Document may be amended that would have the
effect of amending, modifying or supplementing information contained in such
Schedule or Exhibit) in compliance with the terms of the Transaction
Documents.
(d) Any reference in this Supplement to any representation,
warranty or covenant "deemed" to have been made is intended to encompass only
representations, warranties or covenants that are expressly stated to be
<PAGE>
20
Series 1997-A Supplement
repeated on or as of dates following the execution and delivery of this
Supplement, and no such reference shall be interpreted as a reference to any
implicit, inferred, tacit or otherwise unexpressed representation, warranty or
covenant.
(e) The words "include", "includes" or "including" shall be
interpreted as if followed, in each case, by the phrase "without limitation".
ARTICLE II
Designation of VFC Certificates; Purchase and
Sale of the VFC Certificates
SECTION 2.01. Designation. The Investor
Certificates created and authorized pursuant to the
Agreement and this Supplement shall be designated as the
"VFC Certificates, Series 1997-A."
SECTION 2.02. The VFC Certificates and Series 1997-A
Subordinated Interest. (a) The VFC Certificates shall represent fractional
undivided interests in the Trust Assets, consisting of the right of the VFC
Certificate holders to receive the distributions specified herein out of (i)
the Series 1997-A Invested Percentage (expressed as a decimal) of Collections
received with respect to the Receivables and all other funds on deposit in the
Collection Account and (ii) to the extent such interests appear herein, all
other funds on deposit in the Series 1997-A Collection Subaccount and any
subaccounts thereof (collectively, the "VFC Certificate holders' Interest").
(b) The Company shall retain a fractional undivided interest
in the Trust Assets, consisting of the right of the holder of the Subordinated
Company Interest to receive the distributions specified herein out of (i) the
Series 1997-A Invested Percentage (expressed as a decimal) of Collections
received with respect to the Receivables and all other funds on deposit in the
Collection Account and (ii) to the extent such interests appear herein, all
other funds on deposit in the Series 1997-A Collection Subaccount and any
subaccounts thereof, in each case to the extent not required to be distributed
to or for the benefit of the VFC Certificate holders (the "Series 1997-A
Subordinated Interest"). The Exchangeable Company Interest and any other
Series of Investor Certificates or Subordinated Company Interests outstanding
shall represent the ownership interests in the remainder of the Trust Assets
not allocated
<PAGE>
21
Series 1997-A Supplement
pursuant hereto to the VFC Certificate holders' Interest or
the Series 1997-A Subordinated Interest.
(c) The VFC Certificates shall be substantially in the form
of Exhibit A, and shall, upon issue, be executed and delivered by the Company
to the Trustee for authentica tion and redelivery as provided in Section 2.04
hereof and Section 5.02 of the Agreement. The VFC Certificates shall not be
issued in the form of a single global certificate as provided for in Section
5.01 of the Agreement, but shall instead be issued in the form of one or more
definitive certificates, each registered in the name of a Purchaser as the
holder thereof. The Series 1997-A Subordinated Interest shall be
uncertificated.
SECTION 2.03. Purchases of Interests in the VFC Certificates
and the Series 1997-A Subordinated Interest. (a) Initial Purchase. Subject to
the terms and conditions of this Supplement, including delivery of notice in
accordance with Section 2.04, (i) each Initial Purchaser hereby severally
agrees (A) to purchase on the Issuance Date a VFC Certificate in an amount
equal to such Initial Purchaser's Commitment Percentage of the Initial Series
1997-A Invested Amount and (B) to maintain its VFC Certificate, subject to
increase or decrease during the Series 1997-A Revolving Period, in accordance
with the provisions of this Supplement and (ii) the Company hereby agrees (A)
to purchase from the Trust on the Issuance Date the rights as holder of the
Series 1997-A Subordinated Interest in an amount equal to the Initial Series
1997-A Subordinated Interest Amount and (B) to maintain such interest in the
Series 1997-A Subordinated Interest, subject to increase or decrease during
the Series 1997-A Revolving Period, in accordance with the provisions of this
Supplement. Payments by the Initial Purchasers in respect of the VFC
Certificates shall be made in immediately available funds on the Issuance Date
to the Agent for payment to the Trust.
(b) Subsequent Purchases. Subject to the terms and
conditions of this Supplement, each Acquiring Purchaser shall be deemed to
have severally agreed, by its acceptance of its VFC Certificate, to maintain
its VFC Certificate, subject to increase or decrease during the Series 1997-A
Revolving Period, in accordance with the provisions of this Supplement.
(c) Maximum Series 1997-A Purchaser Invested Amount.
Notwithstanding anything to the contrary contained in this Supplement, at no
time shall the Series 1997-A
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22
Series 1997-A Supplement
Purchaser Invested Amount (calculated without regard to clauses (d) and (e) of
the definition thereof) of any Purchaser exceed such Purchaser's Commitment at
such time.
SECTION 2.04. Delivery. On the Issuance Date, the Company
shall sign on behalf of the Trust and shall direct the Trustee in writing
pursuant to Section 5.02 of the Agreement to duly authenticate, and the
Trustee, upon receiving such direction, shall so authenticate the VFC
Certificates in such names and such denominations and deliver such VFC
Certificates to the Initial Purchasers in accordance with such written
directions. The VFC Certificates shall be issued in minimum denominations of
$5,000,000 and integral multiples of $1,000,000 in excess thereof; provided
that notwithstanding the foregoing one VFC Certificate may be issued in
non-integral multiples of $1,000,000. The Trustee shall mark on its books the
actual Series 1997-A Invested Amount and Series 1997-A Subordinated Interest
Amount outstanding on any date of determination, which, absent manifest error,
shall constitute prima facie evidence of the outstanding Series 1997-A
Invested Amount and Series 1997-A Subordinated Interest Amount from time to
time.
SECTION 2.05. Procedure for Initial Issuance and
for Increasing the Series 1997-A Invested Amount. (a) Subject to subsection
2.05(b), on any Business Day during the Commitment Period, each Purchaser agrees
that the Series 1997-A Invested Amount may be increased by increasing each
Purchaser's Series 1997-A Purchaser Invested Amount (an "Increase"), up to an
amount not exceeding each Purchaser's Commitment, upon the request of the
Servicer or the Company on behalf of the Trust (each date on which an increase
in the Series 1997-A Invested Amount occurs hereunder being herein referred to
as the "Increase Date" applicable to such Increase); provided, however, that the
Servicer or the Company, as the case may be, shall have given the Agent
irrevocable written notice (effective upon receipt), substantially in the form
of Exhibit F hereto, of such request no later than (i) if the Initial Series
1997-A Invested Amount or Increase Amount is to be priced solely with reference
to the ABR, 1:00 p.m., New York City time, on the Issuance Date or such Increase
Date, as the case may be, or (ii) if all or a portion of the Initial Series
1997-A Invested Amount or Increase Amount is to be allocated to a Eurodollar
Tranche, 1:00 p.m., New York City time, three Business Days prior to the
Issuance Date or such Increase Date, as the case may be; provided further that
the provisions of this subsection shall not restrict the allocations of
Collections pursuant to Article III. Such
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23
Series 1997-A Supplement
notice shall state (x) the Issuance Date or the Increase Date, as the case may
be; (y) the Initial Series 1997-A Invested Amount or the proposed amount of
such Increase (the "Increase Amount"), as the case may be; and (z) what
portions thereof will be allocated to a Eurodollar Tranche and the Floating
Tranche. No Purchaser shall be obligated to fund any such Increase, unless
concurrently with any such Increase in the Series 1997-A Invested Amount, the
Series 1997-A Subordinated Interest Amount shall be increased by an amount
(the "Series 1997-A Subordinated Interest Increase Amount") such that after
giving effect to such increase, the Series 1997-A Adjusted Invested Amount
plus the Series 1997-A Subordinated Interest Amount equals the Series 1997-A
Target Receivables Amount.
(b) The Purchasers shall not be required to make the initial
purchase of VFC Certificates on the Issuance Date or to increase their
respective Series 1997-A Invested Amounts on any Increase Date hereunder unless:
(i) the related aggregate initial purchase amount or
Increase Amount is equal to (A) in the case of a Floating Tranche,
$100,000 or an integral multiple of $100,000 in excess thereof and
(B) in the case of a Eurodollar Tranche, $500,000 or an integral
multiple of $500,000 in excess thereof;
(ii) after giving effect to the initial purchase amount or
Increase Amount, (A) the Series 1997-A Invested Amount (calculated
without regard to clauses (d) and (e) of the definition of Series
1997-A Purchaser Invested Amount) would not exceed the Maximum
Commitment Amount on the Issuance Date or such Increase Date, as the
case may be, and (B) the Series 1997-A Allocated Receivables Amount
would not be less than the Series 1997-A Target Receivables Amount on
the Issuance Date or such Increase Date, as the case may be; and
(iii) no Early Amortization Event or Potential Early
Amortization Event shall have occurred and be continuing.
(c) After receipt by the Agent of the notice required by
subsection 2.05(a) from the Servicer or the Company on behalf of the Trust,
the Agent shall, so long as the conditions set forth in subsections 2.05(a)
and (b) are satisfied, promptly provide telephonic notice to each Purchaser of
the Increase Date and of the portion of the Increase Amount allocable to such
Purchaser (which shall equal such Purchaser's Commitment Percentage of the
Increase
<PAGE>
24
Series 1997-A Supplement
Amount). The Servicer shall promptly notify the Company of the Increase Date
and the amount of the Series 1997-A Subordinated Interest Increase Amount.
Each Purchaser agrees to pay in immediately available funds such Purchaser's
Commitment Percentage of each Increase on the related Increase Date to the
Agent for payment to the Trust.
SECTION 2.06. Procedure for Decreasing the Series 1997-A
Invested Amount; Optional Termination. (a) On any Business Day during the
Series 1997-A Revolving Period or the Series 1997-A Amortization Period
(except for Distribution Dates during the Series 1997-A Amortization Period
(which shall be governed by subsection 3A.06(c))), upon the written request of
the Servicer or the Company on behalf of the Trust, the portion of the Series
1997-A Invested Amount not allocated to a Eurodollar Tranche may be reduced (a
"Decrease") by the distribution by the Trustee to the Agent for the pro rata
benefit of the Purchasers in accordance with their Commitment Percentages of
some or all of the funds on deposit in the Series 1997-A Principal Collection
Sub-subaccount on such day; provided that the Servicer shall have given the
Agent and the Trustee irrevocable written notice (effective upon receipt),
prior to 1:00 p.m., New York City time, on the Business Day of such Decrease
and which notice shall state the amount of such Decrease; provided further
that such Decrease shall be in an amount equal to $100,000 and integral
multiples of $100,000 in excess thereof; provided further, however, that no
prepayment of any Eurodollar Tranche prior to the termination of a Eurodollar
Period or NIBO Period may occur unless, concurrently with such prepayment, the
Company shall have paid to the Purchasers any amounts due and payable pursuant
to Section 7.04.
(b) Simultaneously with any such Decrease during the Series
1997-A Revolving Period, the Series 1997-A Subordinated Interest Amount shall
be reduced by an amount (the "Series 1997-A Subordinated Interest Reduction
Amount") such that the Series 1997-A Subordinated Interest Amount shall equal
the Series 1997-A Required Subordinated Amount after giving effect to such
Decrease. During the Series 1997-A Revolving Period, after the distribution
described in subsection (a) above has been made, and the Series 1997-A
Subordinated Interest Amount shall have been reduced by the Series 1997-A
Subordinated Interest Reduction Amount, a distribution shall be made to the
holder of the Series 1997-A Subordinated Interest out of remaining funds on
deposit in the Series 1997-A Principal Collection Sub- subaccount in an amount
equal to the lesser of (x) the Series 1997-A Subordinated Interest Reduction
Amount and
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Series 1997-A Supplement
(y) the amount of such remaining funds on deposit in the Series 1997-A
Principal Collection Sub-subaccount.
(c) Any reduction in the Series 1997-A Invested Amount on
any Business Day shall be allocated first to reduce the Available Pricing
Amount.
(d) (i) On any Business Day to occur after the Issuance Date
and prior to the occurrence of the Scheduled Revolving Termination Date, an
Early Amortization Event or Potential Early Amortization Event, the Company
shall have the right to deliver an irrevocable notice (an "Optional
Termination Notice") to the Trustee and the Servicer in which the Company
declares that the Series 1997-A Revolving Period shall terminate on the date
(the "Optional Termination Date") set forth in such notice (which date, in any
event, shall not be less than 10 days from the date on which such notice is
delivered).
(ii) From and after the Optional Termination Date, the
Series 1997-A Amortization Period shall commence for all purposes under this
Agreement and the other Transaction Documents. The Trustee shall give prompt
written notice of its receipt of an Optional Termination Notice to the
Purchasers and each Rating Agency.
SECTION 2.07. Reductions of the Commitments. (a) On any
Business Day during the Series 1997-A Revolving Period, the Company, on behalf
of the Trust, may, upon three Business Days' prior written notice to the Agent
(effective upon receipt), with copies to the Servicer and the Trustee, reduce
or terminate the Commitments (a "Commitment Reduction") in an aggregate amount
equal to $5,000,000 or a whole multiple of $5,000,000 in excess thereof;
provided that no such termination or reduction shall be permitted if, after
giving effect thereto and to any reduction in the Series 1997-A Invested
Amount (calculated without regard to clauses (d) and (e) of the definition of
Series 1997-A Purchaser Invested Amount) on such date, the Series 1997-A
Invested Amount would exceed the Aggregate Commitment Amount then in effect.
Each Purchaser's Commitment shall be reduced by such Purchaser's Commitment
Percentage of the amount of such Commitment Reduction.
(b) Once reduced, the Commitments may not be subsequently
reinstated. Upon effectiveness of any such reduction, the Agent shall prepare
a revised Schedule 1 to reflect the reduced Commitment of each Purchaser and
Schedule 1 of this Supplement shall be deemed to be
<PAGE>
26
Series 1997-A Supplement
automatically superseded by such revised Schedule 1. The Agent shall
distribute such revised Schedule 1 to the Company, the Servicer, the Trustee
and each Purchaser.
SECTION 2.08. Interest; Commitment Fee. (a) Interest shall
be payable on the VFC Certificates on each Distribution Date pursuant to
subsection 3A.06(a).
(b) The Trustee (acting at and in accordance with the
written direction of the Servicer upon which the Trustee may conclusively
rely) shall pay to the Agent from amounts deposited by the Servicer into the
Collection Account, for the pro rata account of the Purchasers in accordance
with their Commitment Percentages, on each Distribution Date, a commitment fee
(which the Servicer shall specify in such written direction) with respect to
each Accrual Period or portion thereof ending on such date (the "Commitment
Fee") during the Series 1997-A Revolving Period at a rate equal to (i) at any
time prior to the Margin Increase Date, 0.25% per annum and (ii) from and
after the Margin Increase Date, 0.375% per annum, in each case of the average
daily excess of the Aggregate Commitment Amount over the average Series 1997-A
Invested Amount (based on the Series 1997-A Purchaser Invested Amounts
calculated without regard to clauses (d) and (e) of the definition thereof)
during such Accrual Period; provided that, for purposes of calculating clause
(b) of the Accrued Expense Amount on any date of determination and clause
(a)(i) of the Accrued Expense Adjustment for purposes of clause (A) of the
proviso to subsection 3A.03(a)(i) of this Supplement, as they relate to the
Commitment Fee, it will be assumed that the average Series 1997-A Invested
Amount during the relevant Accrual Period is equal to zero. The Commitment Fee
shall be payable (a) monthly in arrears on each Distribution Date, (b) on the
Commitment Termination Date and (c) on the Optional Termination Date. To the
extent that funds on deposit in the Series 1997-A Accrued Interest
Sub-subaccount and the Series 1997-A Non-Principal Collection Sub- subaccount
at any such date are insufficient to pay the Commitment Fee due on such date,
the Trustee shall so notify the Company and the Company shall immediately pay
the Agent the amount of any such deficiency. The Trustee shall not be liable
for the payment of the Commitment Fee from its own funds.
(c) Calculations of per annum rates and fees under this
Supplement shall be made on the basis of a 365- day year with respect to
Commitment Fees, other fees, and, except with respect to Eurodollar Tranches,
interest rates. Each determination of One-Month LIBOR or the NIBO Rate by
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27
Series 1997-A Supplement
the Agent shall be conclusive and binding upon each of the parties hereto in
the absence of manifest error.
SECTION 2.09. Indemnification by the Company and the
Servicer. (a) The Company agrees to indemnify and hold harmless the Agent,
each Purchaser and each of their respective officers, directors, agents and
employees (each, a "Company Indemnified Person") from and against any loss,
liability, expense, damage or injury (a "Claim") suffered or sustained by such
Company Indemnified Person by reason of (i) any acts, omissions or alleged
acts or omissions arising out of, or relating to, activities of the Company
pursuant to any Pooling and Servicing Agreement or the other Transaction
Documents to which it is a party or (ii) in the case of a Claim brought by a
third party, (x) a breach of any representation or warranty made or deemed
made by the Company (or any of its officers) in any Transaction Document,
except to the extent that such Company Indemnified Person would be indemnified
and held harmless by an adjustment payment in respect of Ineligible
Receivables pursuant to Section 2.05 of the Agreement or (y) a failure by the
Company to comply with any applicable law or regulation or to perform its
covenants, agreements, duties or obligations required to be performed or
observed by it in accordance with the provisions of any Pooling and Servicing
Agreement or the other Transaction Documents, in any such case including any
judgment, award settlement, reasonable attorneys' fees and other reasonable
costs or expenses incurred in connection with the defense of any actual or
threatened action, proceeding or claim, except to the extent such loss,
liability, expense, damage or injury resulted from the gross negligence, bad
faith or wilful misconduct of such Company Indemnified Person or its officers,
directors, agents, principals, employees or employers; provided, however, that
any payments made by the Company pursuant to this subsection shall be Company
Subordinated Obligations.
(b) The Servicer agrees to indemnify and hold harmless the
Agent, each Purchaser and each of their respective officers, directors, agents
and employees (each, a "Servicer Indemnified Person") from and against any
Claim by reason of (i) any acts, omissions or alleged acts or omissions
arising out of, or relating to, activities of the Servicer pursuant to any
Pooling and Servicing Agreement to which it is a party or (ii) in the case of
a Claim brought by a third party, (x) a breach of any representation or
warranty made or deemed made by the Servicer (or any of its respective
officers) in any Pooling and Servicing Agreement or (y) a failure by the
Servicer to comply with any applicable law or regulation or to perform its
covenants,
<PAGE>
28
Series 1997-A Supplement
agreements, duties or obligations required to be performed or observed by it
in accordance with the provisions of any Pooling and Servicing Agreement, in
any such case including but not limited to any judgment, award, settlement,
reasonable attorneys fees and other reasonable costs or expenses incurred in
connection with the defense of any actual or threatened action, proceeding or
claim, except to the extent such loss, liability, expense, damage or injury
resulted from the gross negligence, bad faith or wilful misconduct of such
Servicer Indemnified Person or its officers, directors, agents, principals,
employees or employers, provided that the Servicer shall not indemnify any
Servicer Indemnified Person for any liability, cost or expense of such
Servicer Indemnified Person arising solely from a default by an Obligor with
respect to any Receivable (except that indemnification shall be made to the
extent that such default arises out of its failure to perform its duties or
obligations under this Agreement).
ARTICLE III
Article III of the Agreement
SECTION 3.01 of the Agreement and each other section of
Article III of the Agreement relating to another Series shall be read in its
entirety as provided in the Agreement. Article III of the Agreement (except
for Section 3.01 thereof and any portion thereof relating to another Series)
shall read in its entirety as follows and shall be exclusively applicable to
Series 1997-A:
SECTION 3A.02. Establishment of Trust Accounts. (a) The
Trustee shall cause to be established and maintained in the name of the
Trustee, on behalf of the Trust, (i) for the benefit of the Purchasers and
(ii) in the case of clauses (A) and (B) below, for the benefit (subject to the
prior and senior interest of the Purchasers) of the holder of the Series
1997-A Subordinated Interest, (A) a subaccount of the Collection Account (the
"Series 1997-A Collection Subaccount"), which subaccount is the Series
Collection Subaccount with respect to Series 1997-A; (B) two subaccounts of
the Series 1997-A Collection Subaccount: (1) the Series 1997-A Principal
Collection Sub- subaccount and (2) the Series 1997-A Non-Principal Collection
Sub-subaccount (respectively, the "Series 1997-A Principal Collection
Sub-subaccount" and the "Series 1997-A Non-Principal Collection
Sub-subaccount"), and (C) a subaccount of the Series 1997-A Non-Principal
Collection Sub-subaccount (the "Series 1997-A Accrued Interest Sub-
<PAGE>
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Series 1997-A Supplement
subaccount"; all accounts established pursuant to this subsection 3A.02(a) and
listed on Schedule 2, collectively, the "Trust Accounts"), each Trust Account
to bear a designation indicating that the funds deposited therein are held for
the benefit of the Persons (and, for each such Person, to the extent) set
forth in clauses (i) and (ii) above. The Trustee, on behalf of the Holders,
shall possess all right, title and interest in all funds from time to time on
deposit in, and all Eligible Investments credited to, the Trust Accounts and
in all proceeds thereof. The Trust Accounts shall be under the sole dominion
and control of the Trustee for the exclusive benefit of the Persons (and, for
each such Person, to the extent) set forth in clauses (i) and (ii) above. In
any case that the Company has not provided applicable written direction as to
Eligible Investments to the Trustee, the Trustee shall invest in demand
deposits or money market funds that constitute Eligible Investments.
(b) All Eligible Investments in the Trust Accounts shall be
held by the Trustee, on behalf of the Holders, for the benefit of the
Purchasers and, subject to the prior interest of the Purchasers, of the holder
of the Series 1997-A Subordinated Interest; provided, however, that funds on
deposit in a Trust Account that is a Sub-subaccount of the Series 1997-A
Collection Subaccount shall, at the direction of the Company, be invested
together with funds held in other Sub-subaccounts of the Collection Account.
After giving effect to any distribution to the Company pursuant to subsection
3A.03(b)(i), amounts on deposit and available for investment in the Series
1997-A Principal Collection Sub-subaccount shall be invested by the Trustee at
the written direction of the Company in Eligible Investments that mature, or
that are payable or redeemable upon demand of the holder thereof, (i) in the
case of any such investment made during the Series 1997-A Revolving Period, on
or prior to the next Business Day and (ii) in the case of any such investment
made during the Series 1997-A Amortization Period, on or prior to the Business
Day immediately preceding the next Distribution Date. Amounts on deposit and
available for investment in the Series 1997-A Non-Principal Collection
Sub-subaccount and the Series 1997- A Accrued Interest Sub-subaccount shall be
invested by the Trustee at the written direction of the Company in Eligible
Investments that mature, or that are payable or redeemable upon demand of the
holder thereof, on or prior to the Business Day immediately preceding the
subsequent Distribution Date. As of the Business Day immediately preceding
such subsequent Distribution Date, all interest and other investment earnings
(net of losses and investment
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Series 1997-A Supplement
expenses) on funds deposited in the Series 1997-A Accrued Interest
Sub-subaccount shall be deposited in the Series 1997-A Non-Principal
Collection Sub-subaccount. All interest and investment earnings (net of losses
and investment expenses) on funds deposited in the Series 1997-A Principal
Collection Sub-subaccount shall be deposited in the Series 1997-A
Non-Principal Collection Sub-subaccount.
SECTION 3A.03. Daily Allocations. (a) The portion of the
Aggregate Daily Collections allocated to Series 1997-A pursuant to Article III
of the Agreement shall be allocated and distributed as set forth in this
Article III by the Trustee based solely on the information provided it by the
Servicer in the Daily Report (upon which the Trustee may conclusively rely):
(i) on each Business Day, an amount equal to the Accrued
Expense Amount for such day (or, during the Series 1997-A Revolving
Period, such greater amount as the Company may request in writing)
shall be transferred from the Series 1997-A Collection Subaccount to
the Series 1997-A Non-Principal Collection Sub-subaccount; provided,
that (A) on the tenth Business Day of each Accrual Period (and each
Business Day thereafter, if necessary, until the full amount of any
positive Accrued Expense Adjustment is transferred), (B) on the day
of any Increase occurring after the tenth Business Day of the
applicable Accrual Period (and each Business Day thereafter, if
necessary, until the full amount of any positive Accrued Expense
Adjustment is transferred), (C) on the day of any Decrease occurring
after the tenth Business Day of the applicable Accrual Period and (D)
on the last Business Day of each Accrual Period, an amount equal to
the Accrued Expense Adjustment shall, if such adjustment is a
positive amount, be transferred from the Series 1997- A Collection
Subaccount to the Series 1997-A Non- Principal Collection
Sub-subaccount or, if such adjustment is a negative amount, be
transferred from the Series 1997-A Non-Principal Collection Sub-
subaccount to the Series 1997-A Collection Subaccount (or deducted
from the transfer in respect of the Accrued Expense Amount for such
day); and
(ii) on each Business Day (including Distribution Dates),
following the transfers pursuant to clause (i) above, any remaining
funds on deposit in the Series 1997-A Collection Subaccount shall be
transferred by the Trustee to the Series 1997-A
Principal Collection Sub-subaccount.
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Series 1997-A Supplement
(b) (i) On each Business Day during the Series 1997-A
Revolving Period (including Distribution Dates), after giving effect to (x)
all allocations of Aggregate Daily Collections referred to in subpara graphs
(a)(i) and (a)(ii) on such Business Day and (y) any deposit resulting from an
Increase, if any, pursuant to Subsection 2.05(c) on such Business Day, amounts
on deposit in the Series 1997-A Principal Collection Sub-subaccount shall be
distributed by the Trustee, based solely on the information provided to the
Trustee by the Servicer in the Daily Report (upon which the Trustee may
conclusively rely), (A) first, to pay Excess Program Costs and (B) second, to
the Company (but only to the extent that the Trustee has received a Daily
Report which reflects the receipt of the Collections on deposit therein) in
accordance with directions contained in the Daily Report or to such accounts
or such persons as the Company may direct in writing (which directions may
consist of standing instructions provided by the Company that shall remain in
effect until changed by the Company in writing); provided that such
distribution, whether under clause (A) or (B), shall be made only if no Early
Amortization Event set forth in Section 7.01 of the Agreement or subsections
(a), (d) (but only with respect to a Servicer Default set forth in subsection
6.01(e) of the Servicing Agreement), (g), (j) or (k) of Section 5.01 of this
Supplement or Potential Early Amortization Event relating to any such Early
Amortization Event (other than an event set forth in clause (i) or (ii) of
Section 7.01(a) of the Pooling Agreement has occurred and is continuing and
only to the extent that if, after giving effect to such distribution, the
Series 1997-A Target Receivables Amount would not exceed the Series 1997-A
Allocated Receivables Amount; provided further that if the Company or the
Servicer, on behalf of the Company, shall have given the Agent and the Trustee
irrevocable written notice (effective upon receipt) at least one Business Day
prior to such day (or, in the case of the Floating Tranche, notice may be
given on such day), the Company or the Servicer may instruct the Trustee in
writing (specifying the related amount) to withdraw all or a portion of such
amounts on deposit in the Series 1997-A Principal Collection Sub-subaccount
and apply such withdrawn amounts toward the reduction of the Series 1997-A
Invested Amount and the Series 1997-A Subordinated Interest Amount in
accordance with Section 2.06. Amounts distributed to the Company hereunder
shall be deemed to be paid first from Collections received directly by the
Servicer and second from Collections received in the Lockboxes.
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Series 1997-A Supplement
(ii) During the Series 1997-A Amortization Period, amounts
on deposit in the Series 1997-A Principal Collection Sub-subaccount on each
Distribution Date shall be distributed on such Distribution Date in accordance
with subsection 3A.06(c). No amounts on deposit in the Series 1997-A Principal
Collection Sub-subaccount shall be distributed by the Trustee to the Company
or the holder of the Series 1997-A Subordinated Interest during the Series
1997-A Amortization Period.
(c) On each Business Day, an amount equal to the Daily
Interest Deposit for such day shall be transferred by the Trustee, based
solely on the information provided to the Trustee by the Servicer in the Daily
Report (upon which the Trustee may conclusively rely), from the Series 1997-A
Non- Principal Collection Sub-subaccount to the Series 1997-A Accrued Interest
Sub-subaccount provided, that, on each Business Day that a transfer of funds
is required to be made in respect of an Accrued Expense Adjustment pursuant to
the proviso contained in subsection 3A.03(a)(i), an amount equal to the Daily
Interest Adjustment shall, if such adjustment is a positive amount, be
transferred from the Series 1997-A Non-Principal Collection Sub-subaccount to
the Series 1997-A Accrued Interest Sub-subaccount or, if such adjustment is a
negative amount, be transferred from the Series 1997-A Accrued Interest
Sub-subaccount to the Series 1997-A Non- Principal Collection Sub-subaccount
(or deducted from the transfer in respect of the Daily Interest Deposit for
such day).
(d) The allocations to be made pursuant to this Section
3A.03 are subject to the provisions of Sections 2.05, 2.06, 7.02, 9.01 and
9.04 of the Agreement.
SECTION 3A.04. Determination of Interest. (a) (i) The amount
of interest (as reported in writing by the Servicer to the Trustee)
distributable with respect to the VFC Certificates ("Series 1997-A Monthly
Interest Distribution") on each Distribution Date shall be the aggregate
amount of Daily Interest Expense accrued during the immediately preceding
Accrual Period.
(ii) Following any change in the amount of any Eurodollar
Tranche or Floating Tranche during an Accrual Period, the Series 1997-A
Monthly Interest shall be calculated by the Servicer with respect to such
changed amount for the number of days in the Accrual Period during which such
changed amount is outstanding and shall provide written notification to the
Trustee of such calculation.
<PAGE>
33
Series 1997-A Supplement
(iii) If the Certificate Rate changes during any Accrual
Period, the Servicer shall amend the Monthly Settlement Statement to reflect
the adjustment in the Series 1997-A Monthly Interest for such Accrual Period
caused by such change and any consequent adjustments and the Servicer shall
also provide written notification to the Trustee of any such change in the
Certificate Rate. Any amendment to the Monthly Settlement Statement pursuant
to this subsection 3A.04(a)(iii) shall be completed by 1:00 p.m. on the day
preceding the next Settlement Report Date.
(b) On each Distribution Date, the Servicer shall determine
the excess, if any (the "Interest Shortfall"), of (i) the aggregate Series
1997-A Monthly Interest Distribu tion for the immediately preceding Accrual
Period over (ii) the amount that will be available to be distributed to the
Purchasers on such Distribution Date in respect thereof pursuant to this
Supplement. If the Interest Shortfall with respect to any Distribution Date is
greater than zero, an additional amount ("Additional Interest") equal to the
product of (A) the number of days until such Interest Shortfall shall be
repaid divided by 365, (B) the ABR and (C) such Interest Shortfall (or the
portion thereof that has not been paid to the Purchasers) shall be payable as
provided herein with respect to the VFC Certificates on each Distribution Date
following such Distribution Date to but excluding the Distribution Date on
which such Interest Shortfall is paid to the VFC Certificateholders.
(c) On any Business Day, the Company may, subject to
subsection 3A.04(e), elect to allocate all or any portion of the Available
Pricing Amount to one or more Eurodollar Tranches with Eurodollar Periods or
NIBO Periods commencing on such Business Day by giving the Agent irrevocable
written or telephonic (confirmed in writing) notice thereof, which notice must
be received by the Agent prior to 1:00 p.m., New York City time, three
Business Days prior to such Business Day. Such notice shall specify (i) the
applicable Business Day, (ii) the Eurodollar Period or NIBO Period for each
Eurodollar Tranche to which a portion of the Available Pricing Amount is to be
allocated and (iii) the portion of the Available Pricing Amount being
allocated to each such Eurodollar Tranche. Promptly upon receipt of each such
notice the Agent shall notify each Purchaser of the contents thereof. If the
Agent shall not have received timely notice as aforesaid with respect to all
or any portion of the Available Pricing Amount, the Monthly Interest Payment
on such amount shall be calculated by reference to the ABR.
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Series 1997-A Supplement
(d) Any reduction in the Series 1997-A Invested Amount on
any Business Day shall be allocated in the following order of priority:
first, to reduce the Unallocated Balance, as
appropriate; and
second, to reduce the portion of the Series 1997-A Invested
Amount allocated to Eurodollar Tranches in such order as the Company
may select in order to minimize costs payable pursuant to Section 7.04.
(e) Notwithstanding anything to the contrary contained in
this Section 3A.04, (i) the portion of the Series 1997-A Invested Amount
allocable to each Eurodollar Tranche must be in an amount equal to $500,000 or
an integral multiple of $500,000 in excess thereof; (ii) no more than five
Eurodollar Tranches shall be outstanding at any one time; (iii) after the
occurrence and during the continuance of any Early Amortization Event or
Potential Early Amortization Event relating to an Early Amortization Event set
forth in subsections (a), (d) (but only with respect to a Servicer Default set
forth in sub section 6.01(e) of the Servicing Agreement), (e), (g) or (j) of
Section 5.01 of this Supplement, the Company, may not elect to allocate any
portion of the Available Pricing Amount to a Eurodollar Tranche; and (iv)
after the end of the Series 1997-A Revolving Period, the Company may not
select any Eurodollar Period or NIBO Period that does not end on or prior to
the next succeeding Distribution Date.
SECTION 3A.05. Determination of Series 1997-A Monthly
Principal. (a) Payments of Series 1997-A Principal. The amount (the "Series
1997-A Monthly Principal Payment") distributable from the Series 1997-A
Principal Collection Sub-subaccount on each Distribution Date during the
Series 1997-A Amortization Period shall be equal to the amount on deposit in
such account on the immediately preceding Settlement Report Date; provided,
however, that the Series 1997-A Monthly Principal Payment on any Distribution
Date shall not exceed the Series 1997-A Invested Amount on such Distribution
Date after giving effect to the reductions and increases pursuant to
paragraphs (b) and (c) below. Further, on any other Business Day during the
Series 1997-A Amortization Period, funds may be distributed from the Series
1997-A Principal Collection Sub-subaccount to the Purchasers in accordance
with Section 2.06 of this Supplement.
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Series 1997-A Supplement
(b) Reductions to Series 1997-A Principal. If, on any
Special Allocation Settlement Report Date, the Series 1997-A Allocable
Charged-Off Amount is greater than zero for the related Settlement Period, the
Trustee shall (in accordance with the written directions of the Servicer upon
which the Trustee may conclusively rely) make the following applications of such
amounts in the following order of priority:
(i) the Series 1997-A Required Subordinated Amount shall be
reduced (but not below zero) by an amount equal to the Series 1997-A
Allocable Charged-Off Amount (which shall also be reduced by the
amount so applied);
(ii) then, to the extent that the Series 1997-A Allocable
Charged-Off Amount is greater than zero following the application in
clause (i) above, the Series 1997-A Invested Amount shall be reduced
(but not below zero) by such remaining Series 1997-A Allocable
Charged-Off Amount (which shall also be reduced by the amount so
applied).
(c) Increases to Series 1997-A Principal. If, on any
Special Allocation Settlement Report Date, the Series 1997-A Allocable
Recoveries Amount is greater than zero for the related Settlement Period, the
Trustee shall (in accordance with written directions from the Servicer upon
which the Trustee may conclusively rely) make the following applications (after
giving effect to the applications in paragraph (b) of such amount in the
following order of priority):
(i) the Series 1997-A Invested Amount shall be increased
(but only to the extent of any previous reductions of the Series
1997-A Invested Amount pursuant to subsection 3A.05(b)(ii)) by the
amount of the Series 1997-A Allocable Recoveries Amount (which shall
also be reduced by the amount so applied);
(ii) then, to the extent that the Series 1997-A Allocable
Recoveries Amount is greater than zero following the applications in
clause (i) above, the Series 1997-A Required Subordinated Amount
shall be increased (but only to the extent of any previous reductions
of the Series 1997-A Required Subordinated Amount pursuant to
subsection 3A.05(b)(i)) by such remaining Series 1997-A Allocable
Recoveries Amount (which shall also be reduced by the amount so
applied).
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Series 1997-A Supplement
(d) Servicer Determination. With respect to any distribution
or allocations required in this Section 3A.05, the related amount shall be
determined by the Servicer and promptly provided in writing by the Servicer to
the Trustee.
SECTION 3A.06. Applications. (a) The Trustee shall
distribute, (i) with respect to Floating Tranches and Eurodollar Tranches with
Eurodollar Periods, based solely on the information provided to the Trustee by
the Servicer in the Monthly Settlement Statement (upon which the Trustee may
conclusively rely) and (ii) with respect to Eurodollar Tranches with NIBO
Periods, based solely on the information provided to the Trustee by the
Servicer in the Daily Reports issued during such NIBO Period (upon which the
Trustee may conclusively rely), on each Distribution Date, from amounts on
deposit in the Series 1997-A Accrued Interest Sub- subaccount, an amount equal
to the Series 1997-A Monthly Interest Distribution payable on such
Distribution Date (such amount, the "Monthly Interest Payment"), plus the
amount of any Monthly Interest Payment previously due but not distributed to
the Purchasers on a prior Distribution Date, plus the amount of any Additional
Interest for such Distribution Date and any Additional Interest previously due
but not distributed to the Purchasers on a prior Distribution Date, to the
Purchasers.
(b) On each Distribution Date, the Trustee shall, based
solely on the information provided to the Trustee by the Servicer in the Daily
Report (upon which the Trustee may conclusively rely), apply funds on deposit
in the Series 1997-A Non-Principal Collection Sub-subaccount in the following
order of priority to the extent funds are available:
(i) an amount equal to the Series 1997-A Monthly Servicing
Fee for the Accrual Period ending on such Distribution Date shall be
withdrawn from the Series 1997-A Non-Principal Collection
Sub-subaccount by the Trustee and paid to the Servicer (less any
amounts payable to the Trustee pursuant to Section 8.05 of the
Agreement which shall be paid to the Trustee); and
(ii) an amount equal to any Program Costs due and payable
shall be withdrawn from the Series 1997-A Non- Principal Collection
Sub-subaccount by the Trustee and paid to the Persons owed such
amounts.
Any remaining amounts on deposit in the Series 1997-A
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Series 1997-A Supplement
Non-Principal Collection Sub-subaccount (in excess of the Accrued Expense
Amount as of such day) not allocated pursuant to clauses (i) and (ii) above
shall be paid to the holder of the Series 1997-A Subordinated Interest;
provided, however, that during the Series 1997-A Amortization Period, such
remaining amounts shall be deposited in the Series 1997-A Principal Collection
Sub-subaccount for distribution in accordance with subsection 3A.06(c).
(c) During the Series 1997-A Amortization Period, the
Trustee shall, based solely on the information provided to the Trustee by the
Servicer in the Daily Report (upon which the Trustee may conclusively rely),
apply, on each Distribution Date, amounts on deposit in the Series 1997-A
Principal Collection Sub-subaccount in the following order of priority:
(i) if any amounts are owed to the Trustee or any other
Person, on account of Servicing Fees incurred in respect of the
performance of its responsibilities as Successor Servicer, an amount
equal to the product of (a) the amount so owed to such Successor
Servicer and (b) a fraction, the numerator of which shall be equal to
the Series 1997-A Invested Amount as of the end of the immediately
preceding Settlement Period and the denominator of which shall be
equal to the Aggregate Invested Amount as of the end of the
immediately preceding Settlement Period shall be transferred from the
Series 1997-A Principal Collection Sub-subaccount to the Trustee or
such other Person;
(ii) following the repayment in full of all amounts set
forth in clause (i) above, an amount equal to the Series 1997-A
Monthly Principal Payment for such Distribution Date shall be
distributed from the Series 1997-A Principal Collection
Sub-subaccount to the Purchasers in reduction of the Series 1997-A
Invested Amount;
(iii) if, following the repayment in full of all amounts set
forth in clauses (i) and (ii) above, any amounts are owed to the
Trustee or any other Person, on account of its fees, expenses and
disbursements incurred in respect of the performance of its
responsibilities hereunder (other than pursuant to clause (i) above
in the capacity as Successor Servicer), such amounts shall be
transferred from the Series 1997-A Principal Collection
Sub-subaccount and paid to the Trustee or such other Person; and
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Series 1997-A Supplement
(iv) following the repayment in full of all amounts set
forth in clauses (i) through (iii) above, the remaining amount on
deposit in the Series 1997-A Principal Collection Sub-subaccount on
such Distribution Date, if any, shall be distributed to the holder of
the Series 1997-A Subordinated Interest.
ARTICLE IV
Distributions and Reports
Article IV of the Agreement (except for any portion thereof
relating to another Series) shall read in its entirety as follows and the
following shall be exclusively applicable to the VFC Certificates issued
pursuant to this Supplement:
SECTION 4A.01. Distributions. (a) On each Distribution Date,
the Trustee shall distribute to each Purchaser from the account indicated in
Article III an amount equal to the product of (i) the amount to be distributed
to the Purchasers pursuant to Article III and (ii) such Purchaser's Commitment
Percentage.
(b) All allocations and distributions hereunder shall be in
accordance with the Daily Report and the Monthly Settlement Statement and
shall be made in accordance with the provisions of Section 11.04 hereof and
subject to Section 3.01(h) of the Agreement.
SECTION 4A.02. Daily Reports. The Servicer shall provide the
Agent and the Trustee with a Daily Report in accordance with subsection
4.02(a) of the Servicing Agreement. The Agent shall make copies of the Daily
Report available to the Purchasers at their reasonable request at the Agent's
office in The City of New York.
SECTION 4A.03. Statements and Notices. (a) Monthly
Settlement Statements. On each Settlement Report Date (commencing with the
Settlement Report Date occurring in December 1997), the Servicer shall deliver
to the Trustee and the Agent a Monthly Settlement Statement in the Form of
Exhibit E setting forth, among other things,, the Dilution Reserve Ratio, the
Minimum Ratio, the Carrying Cost Reserve Ratio and the Servicing Reserve
Ratio, each as recalculated for the next succeeding Settlement Period. The
Agent shall forward a copy of each Monthly Settlement Statement to any
Purchaser upon request by such Purchaser. The Company and the Servicer will
deliver copies of all
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Series 1997-A Supplement
notices, reports (other than Daily Reports), statements and other documents
delivered by it pursuant to the Pooling and Servicing Agreements to each
Rating Agency.
(b) Annual Certificate holders' Tax Statement. On or before
April 1 of each calendar year (or such earlier date as required by applicable
law), beginning with calendar year 1998, the Company on behalf of the Trustee
shall furnish, or cause to be furnished, to each Person who at any time during
the preceding calendar year was a Purchaser, a statement prepared by the
Company containing the aggregate amount distributed to such Person for such
calendar year or the applicable portion thereof during which such Person was a
Purchaser, together with such other information as is required to be provided
by an issuer of indebtedness under the Internal Revenue Code and such other
customary informa tion as the Company deems necessary to enable the Purchasers
to prepare their tax returns. Such obligation of the Company shall be deemed
to have been satisfied to the extent that substantially comparable information
shall have been prepared by the Servicer and provided to the Trustee or the
Agent and to the Purchasers, in each case pursuant to any requirements of the
Internal Revenue Code as from time to time in effect. The Trustee shall be
under no obligation to prepare tax returns for the Trust.
(c) Early Amortization Event/Distribution of Principal
Notices. Upon the occurrence of an Early Amortization Event with respect to
the Series 1997-A, the Company or the Servicer, as the case may be, shall give
prompt written notice thereof to the Trustee and the Agent. As promptly as
reasonably practicable after its receipt of notice of the occurrence of an
Early Amortization Event with respect to Series 1997-A, the Trustee shall give
notice (i) to each Rating Agency (which notice shall be given, by telephone or
otherwise, not later than the second Business Day after such receipt) and (ii)
to the Agent, who in turn shall give notice to each Purchaser. In addition, on
the Business Day preceding each day on which a distribution of principal is to
be made during the Series 1997-A Amortiza tion Period, the Servicer shall
direct the Agent to send notice to each Purchaser, which notice shall set
forth the amount of principal to be distributed on the related date to the
Purchasers with respect to the outstanding VFC Certificates.
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Series 1997-A Supplement
ARTICLE V
Additional Early Amortization Events
SECTION 5.01. Additional Early Amortization Events. If any
one of the events specified in Section 7.01 of the Agreement (after any grace
periods or consents applicable thereto) or any one of the following events
(each, an "Early Amortization Event") shall occur during the Series 1997-A
Revolving Period:
(a) (i) failure on the part of the Servicer to direct any
payment or deposit to be made, or failure of any payment or deposit
to be made, in respect of interest owing on any VFC Certificate or
the Commitment Fee within five Business Days of the date such
interest or Commitment Fee is due or (ii) failure on the part of the
Servicer to direct any payment or deposit to be made, or of the
Company to make any payment or deposit in respect of any other
amounts owing by the Company, under any Pooling and Servicing
Agreement to or for the benefit of the Purchasers within five
Business Days of the date such other amount is due or such deposit is
required to be made;
(b) failure on the part of the Company duly to observe or
perform in any material respect any covenant or agreement of the
Company set forth in any Pooling and Servicing Agreement (including
each covenant contained in Sections 2.07 and 2.08 of the Agreement)
that continues unremedied 30 days after the earlier of (i) the date
on which a Responsible Officer of the Company or, so long as the
Servicer is an Affiliate of the Company, a Responsible Officer of the
Servicer has knowledge of such failure and (ii) the date on which
written notice of such failure, requiring the same to be remedied,
shall have been given to the Company by the Trustee, or to the
Company and the Trustee by the Agent or Purchasers evidencing 25% or
more of the Series 1997-A Invested Amount;
(c) any representation or warranty made or deemed made by
the Company in any Pooling and Servicing Agreement to or for the
benefit of the Purchasers shall prove to have been incorrect in any
material respect when made or when deemed made that continues to be
incorrect 30 days after the earlier of (i) the date on which a
Responsible Officer of the Company or, so long as the Servicer is an
Affiliate of the Company, a Responsible Officer of the Servicer has
knowledge of
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Series 1997-A Supplement
such failure and (ii) the date on which notice of such failure,
requiring the same to be remedied, shall have been given to the
Company by the Trustee or to the Company and the Trustee by the Agent
or Purchasers evidencing 25% or more of the Series 1997-A Invested
Amount and as a result of such incorrectness, the interests, rights
or remedies of the Purchasers have been materially and adversely
affected; provided, however, that an Early Amortization Event with
respect to Series 1997-A shall not be deemed to have occurred under
this paragraph if the incorrectness of such representation or
warranty gives rise to an obligation to repurchase or make an
adjustment payment in respect of the related Receivables and the
Company has repurchased or made an adjustment payment in respect of
the related Receivable or all such Receivables, if applicable, in
accordance with the provisions of any Pooling and Servicing Agreement
within 10 Business Days of the day on which the Company was obligated
to do so;
(d) a Servicer Default with respect to the Servicer other
than any Servicer Default that is within subsection 5.01(a) above
shall have occurred and be continuing;
(e) a Purchase Termination Event shall have occurred and be
continuing;
(f) a Change in Control shall have occurred;
(g) the Series 1997-A Allocated Receivables Amount shall be
less than the Series 1997-A Target Receivables Amount for a period of
five consecutive Business Days;
(h) any of the Agreement, the Servicing Agreement, this
Supplement or the Receivables Sale Agreement shall cease, for any
reason, to be in full force and effect, or the Company, the Servicer,
the Seller or any Affiliate thereof shall so assert in writing;
(i) the Trust shall for any reason cease to have a valid and
perfected first priority undivided ownership or first priority
security interest in any of the Trust Assets (subject to no other
Liens other than any Permitted Liens) and such cessation would,
individually or together with other cessations, have a Material
Adverse Effect;
(j) a Federal tax notice of Lien, in an amount
equal to or greater than $2,000,000, shall have been
<PAGE>
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Series 1997-A Supplement
filed against the Company or the Trust unless such Lien is being
contested in compliance with the standard set forth in clause (i) of
subsection 2.07(l) of the Agreement or there shall have been
delivered to the Trustee and the Rating Agencies proof of release of
such Lien;
(k) a notice of Lien shall have been filed by the Pension
Benefit Guaranty Corporation against the Company or the Trust under
Section 412(n) of the Code or Section 302(f) of ERISA for a failure
to make a required installment or other payment to a plan to which
Section 412(n) of the Code or Section 302(f) of ERISA applies and
such notice could reasonably be expected to have a Material Adverse
Effect with respect to the Company or the Trust unless there shall
have been delivered to the Trustee and the Rating Agencies proof of
the release of such Lien;
(l) one or more judgments for the payment of money (to the
extent not bonded or covered by insurance to the reasonable
satisfaction of the Agent) shall be rendered against the Company in
an aggregate amount greater than $50,000 and the same shall remain
undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to levy upon assets or
properties of the Company, the Servicer or the Seller to enforce such
judgment or judgments; or
(m) the Trust shall issue any Series of Investor
Certificates other than the VFC Certificates,
then, in the case of (x) any event described in Section 7.01 of the Agreement
(after the applicable grace period (if any) provided for therein) and
paragraph (m) above, automatically without any notice or action on the part of
the Trustee or Purchasers, an early amortization period shall immediately
commence or (y) any other event described above, after the applicable grace
period (if any) set forth in the applicable subsection, the Trustee may, and
at the written direction of the Majority Purchasers shall, by written notice
then given to the Company and the Servicer, declare that an early amortization
period has commenced as of the date of such notice with respect to Series
1997-A (any such period under clause (x) or (y) above, an "Early Amortization
Period"); provided, however, that in the case of the event described in clause
(g) above, if an Early Amortization Period has not been declared within 10
Business Days from the occurrence of
<PAGE>
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Series 1997-A Supplement
such event, then an Early Amortization Period shall occur automatically
unless, (i) prior to the end of such 10 Business Day period, the Series 1997-A
Allocated Receivables Amount shall no longer be less than the Series 1997-A
Target Receivables Amount and (ii) so long as the Series 1997-A Allocated
Receivables Amount continues to be equal to or greater than the Series 1997-A
Target Receivables Amount, VFC Certificate holders evidencing 66-2/3% or more
of the Series 1997-A Invested Amount shall have waived the occurrence of such
event.
Notwithstanding the foregoing, a delay or failure in
performance referred to in clause (a) above for a period of up to five
Business Days after the applicable grace period, or in clause (b) above for a
period of up to 30 Business Days after the applicable grace period, will not
constitute an Early Amortization Event if such delay or failure could not have
been prevented by the exercise of reasonable diligence by the Company and such
delay or failure was caused by a Force Majeure Delay. The Company will
nevertheless be required to use its best efforts to perform its obligations in
a timely manner in accordance with the terms of the Transaction Documents, and
the Company shall promptly give the Trustee an Officer's Certificate notifying
it of any such delay or failure.
ARTICLE VI
Servicing Fee
SECTION 6.01. Servicing Compensation. The portion of the
Servicing Fee allocable to Series 1997-A (the "Series 1997-A Monthly Servicing
Fee") shall be payable to the Servicer on each Distribution Date for the
preceding Settlement Period, in an amount equal to the product of (a) the
Servicing Fee and (b) a fraction, the numerator of which shall be equal to the
Series 1997-A Invested Amount as of the end of the second preceding Settlement
Period and the denominator of which shall be equal to the Aggregate Invested
Amount as of the end of such second preceding Settlement Period; provided,
however, that, for the purposes of calculating the Accrued Expense Adjustment
on the last Business Day of any Accrual Period, such calculation shall be
based on the Series 1997-A Invested Amount and Aggregate Invested Amount as of
the end of the most recent Settlement Period that has elapsed. To the extent
that funds on deposit in the Series 1997-A Non-Principal Collection
Sub-subaccount on any such Distribution Date are insufficient to pay the
Series 1997-A Monthly Servicing Fee
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Series 1997-A Supplement
due on such date as set forth in the Monthly Settlement Statement delivered by
the Servicer to the Trustee, the Trustee shall so notify the Company and the
Company shall immediately pay the Servicer the amount of any such deficiency.
ARTICLE VII
Change in Circumstances
SECTION 7.01. Illegality. Notwithstanding any other
provision herein, if, after the Issuance Date, the adoption of or any change
in any law or regulation or in the interpretation thereof by any Governmental
Authority charged with the administration or interpretation thereof shall make
it unlawful for any Purchaser to make or maintain its portion of the VFC
Certificate holders' Interest in any Eurodollar Tranche then, by written
notice to the Agent, the Trustee and the Company, such Purchaser may declare
that the portion of each Eurodollar Tranche applicable to such Purchaser shall
thereafter be calculated by reference to the ABR (such calculation to be
performed by the Servicer). For purposes of this Section 7.01, a notice to the
Agent, the Trustee or the Company by any Purchaser shall be effective as to
each Eurodollar Tranche, if lawful, on the last day of the Eurodollar Period
or NIBO Period currently applicable to such Eurodollar Tranche; in all other
cases such notice shall be effective on the date of receipt by the Agent, the
Trustee or the Company, as applicable.
SECTION 7.02. Requirements of Law. (a) Notwith standing any
other provision herein, if after the Issuance Date any change in applicable
law or regulation or in the interpretation or administration thereof by any
Governmental Authority charged with the interpretation or administration
thereof (whether or not having the force of law):
(i) shall change the basis of taxation of payments to any
Purchaser in respect of the Transaction Documents (except for changes
in respect of (A) taxes imposed on the overall net income of such
Purchaser by the jurisdiction which such Purchaser has its principal
office or by any political subdivision or taxing authority therein
and (B) Excluded Taxes or Non- Excluded Taxes described in Section
7.03); or
(ii) shall impose, modify or deem applicable any reserve,
special deposit or similar requirement against assets or deposits
with or for the account of credit
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Series 1997-A Supplement
extended by, any office of such Purchaser which is not
otherwise included in the determination of the Eurodollar Rate;
and the result of any of the foregoing shall be to increase the cost to such
Purchaser by an amount deemed by such Purchaser to be material, of making,
converting into, continuing or maintaining Eurodollar Tranches or to reduce
any amount receivable hereunder in respect thereof, then, from time to time,
the Company will pay to such Purchaser upon demand such additional amount or
amounts as will compensate such Purchaser for such additional costs incurred
or reduction suffered.
(b) If any Purchaser shall have determined that the adoption
after the Issuance Date of any law, rule, regulation or guideline regarding
capital adequacy or any change after the Issuance Date in any of the foregoing
or in the interpretation or administration of any of the foregoing by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof or compliance by such Purchaser or
any corporation controlling such Purchaser with any request or directive
regarding capital adequacy (whether or not having the force of law) made or
issued after the date hereof by any such authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on such
Purchaser's or such corporation's capital as a consequence of this Agreement
or its obligations pursuant hereto to a level below that which such Purchaser
or such corporation would have achieved but for such adoption, change or
compliance (taking into consideration such Purchaser's or such corporation's
policies with respect to capital adequacy) by an amount deemed by such
Purchaser or such corporation to be material, then from time to time, the
Company shall promptly pay to such Purchaser or such corporation such
additional amount or amounts as will compensate such Purchaser or such
corporation for any such reduction suffered.
(c) A certificate of each Purchaser setting forth such
amount or amounts as shall be necessary to compensate such Purchaser or any
corporation controlling such Purchaser as specified in paragraph (a) or (b)
above, as the case may be, shall be delivered to the Company (with a copy to
the Agent) and shall be conclusive absent manifest error. The Company shall
pay each Purchaser the amount shown as due on any such certificate delivered
by it within 10 days of its receipt of same.
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Series 1997-A Supplement
(d) In the event any Purchaser delivers a notice pursuant to
paragraph (e) below, the Company may require, at the Company's expense and
subject to Section 7.04, such Purchaser to assign, at par plus accrued
interest and fees, without recourse (in accordance with Section 11.10) all its
interests, rights and obligations hereunder (including, in the case of a
Purchaser, all of its portion of the VFC Certificate holders' Interest) to a
financial institution specified by the Company, provided that (i) such
assignment shall not conflict with or violate any law, rule or regulation or
order of any court or other Governmental Authority, (ii) the Company shall
have received the written consent of the Agent (which consent shall not be
unreasonably withheld) to such assignment and (iii) the Company shall have
paid to the assigning Purchaser all monies accrued and owing hereunder to it
(including pursuant to this Section 7.02).
(e) Promptly after any Purchaser has determined, in its sole
judgment, that it will make a request for increased compensation pursuant to
this Section 7.02, such Purchaser will notify the Company thereof. Failure on
the part of any Purchaser so to notify the Company or to demand compensation
for any increased costs or reduction in amounts received or receivable or
reduction in return on capital with respect to any period shall not constitute
a waiver of such Purchaser's right to demand compensation with respect to such
period or any other period, provided that the Company shall not be under any
obligation to compensate any Purchaser under paragraph (b) above with respect
to increased costs or reductions with respect to any period prior to the date
that is six months prior to such request if such Purchaser knew or could
reasonably have been expected to be aware of the circumstances giving rise to
such increased costs or reductions and of the fact that such circumstances
would in fact result in a claim for increased compensation by reason of such
increased costs or reductions and provided further that the foregoing
limitation shall not apply to any increased costs or reductions arising out of
the retroactive application of any law, regulation, rule, guideline or
directive as aforesaid within such six-month period. The protection of this
Section 7.02 shall be available to each Purchaser regardless of any possible
contention as to the invalidity or inapplicability of the law, rule,
regulation, guideline or other change or condition which shall have occurred
or been imposed.
SECTION 7.03. Taxes. (a) Any and all payments by the
Company to the Agent or the Purchasers hereunder or under the other
Transaction Documents shall be made free and
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Series 1997-A Supplement
clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding (i) in the case of the Agent or any Purchaser,
taxes that would not be imposed but for a connection between such Purchaser or
the Agent (as the case may be) and the jurisdiction imposing such tax, other
than a connection arising solely by virtue of the activities of such Purchaser
or the Agent (as the case may be) pursuant to or in respect of this Agreement
or under any other Transaction Document or any transaction hereunder or
thereunder; (ii) any taxes imposed on the Agent or such Purchaser as a result
of payments not related to the VFC Certificates or this Supplement; (iii) any
taxes that would not have been imposed but for the failure of the Agent or
such Purchaser, as applicable, to provide and keep current to the extent
required by law any certification or other documentation required to be
furnished by the Agent or such Purchaser under Subsection 7.03(f) of this
Supplement; (iv) any taxes imposed as a result of a change (other than a
change mandated by law or this Agreement) by the Agent or any Purchaser of the
office in which any VFC Certificate is held, accounted for or booked; and (v)
any Withholding Taxes (as defined in Subsection 7.03(g) below) except to the
extent provided in Subsection 7.03(g) below (all such excluded taxes being
referred to hereinafter as "Excluded Taxes" and all such taxes, levies,
imposts, deductions, charges, withholdings and liabilities other than Excluded
Taxes being hereinafter referred to as "Taxes"). If any Taxes shall be
required by law to be deducted from or in respect of any sum payable hereunder
or under any other Transaction Document to any Purchaser or the Agent, (i) the
sum payable by the Company shall be increased as may be necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 7.03) such Purchaser or the Agent,
as the case may be, receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Company shall make such deductions
and (iii) the Company shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law.
(b) In addition, the Company agrees to pay any present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies which arise from the execution, delivery or
registration of, or otherwise with respect to, this Agreement or any other
Transaction Document (hereinafter referred to as "Other Taxes").
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Series 1997-A Supplement
(c) The Company will indemnify each Purchaser and the Agent
for the full amount of Taxes and Other Taxes (including any Taxes or Other
Taxes imposed by any jurisdiction on amounts payable under this Section 7.03)
paid by such Purchaser or the Agent, as the case may be, and any liability
(including penalties, interest and expenses including reasonable attorney's
fees and expenses) arising therefrom or with respect thereto whether or not
such Taxes or Other Taxes were correctly or legally asserted. A certificate as
to the amount of such payment or liability prepared by a Purchaser or the
Agent, absent manifest error, shall be final, conclusive and binding for all
purposes, provided that if the Company reasonably believes that such Taxes
were not correctly or legally asserted, such Purchaser or the Agent, as the
case may be shall use reasonable efforts to cooperate with the Company to
obtain a refund of such Taxes or Other Taxes. Such indemnification shall be
made within 10 days after the date any Purchaser or the Agent, as the case may
be, makes written demand therefor. If a Purchaser or the Agent shall become
aware that it is entitled to receive a refund in respect of Taxes or Other
Taxes, it shall promptly notify the Company of the availability of such refund
and shall, within 30 days after receipt of a request by the Company, pursue or
timely claim such refund at the Company's expense. If any Purchaser or the
Agent receives a refund in respect of any Taxes or Other Taxes for which such
Purchaser or the Agent has received payment from the Company hereunder, it
shall promptly repay such refund (plus any interest received) to the Company
(but only to the extent of indemnity payments made, or additional amounts
paid, by the Company under this Section 7.03 with respect to the Taxes or
Other Taxes giving rise to such refund), provided that the Company, upon the
request of such Purchaser or the Agent, agrees to return such refund (plus any
penalties, interest or other charges required to be paid) to such Purchaser or
the Agent in the event such Purchaser or the Agent is required to repay such
refund to the relevant taxing authority.
(d) Within 30 days after the date of any payment of Taxes or
Other Taxes withheld by the Company in respect of any payment to any Purchaser
or the Agent, the Company will furnish to the Administrative Agent, at its
address referred to in Section 11.09, the original or a certified copy of a
receipt evidencing payment thereof.
(e) Without prejudice to the survival of any other agreement
contained herein, the agreements and obligations contained in this Section
7.03 shall survive the
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Series 1997-A Supplement
payment in full of principal and interest hereunder and the
termination of the Trust.
(f) The Agent and each of the Purchasers (or Transferees)
agrees that, prior to the date on which the first interest payment on a VFC
Certificate is due hereunder, it will deliver to the Servicer and the Trustee
(i) if the Agent or such Purchaser is not incorporated under the laws of the
United States or any State thereof (a "Non- U.S. Person"), two duly completed
copies of the United States Internal Revenue Service Form 4224 or successor
applicable or required form and (ii) an Internal Revenue Service Form W-8 or
W-9 or successor applicable or required form. The Agent and each Purchaser
also agree to deliver to the Servicer and the Trustee two further copies of
the said Form 4224 and Form W-8 or W-9, or successor applicable forms or other
manner of certification, as the case may be, on or before the date that any
such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent form previously delivered by it to the
Servicer and the Trustee and such extensions or renewals thereof as may
reasonably be requested by the Servicer or the Trustee, unless in any such
case the Agent or such Purchaser is unable to deliver any such form due to a
change in law prior to the date on which any such delivery would otherwise be
required which renders any such form inapplicable. Notwithstanding any
provision of this Supplement or the Agreement to the contrary, the Servicer
and the Trustee shall be entitled to withhold or cause such withholding, and
additional amounts in respect of Taxes need not be paid under this Section
7.03, with respect to the Agent, a Purchaser, a Participant or an Acquiring
Purchaser in the event that such Person fails to provide all of the forms and
statements required pursuant to this paragraph (f) to the Servicer and the
Trustee.
(g) None of the Trustee, the Servicer or the Company shall
withhold with respect to any payments to the Agent or the Purchasers pursuant
to Section 1446 of the Code (a "Withholding Tax") except as provided in this
paragraph (g) and only if such withholding is required pursuant to a written
determination received by the Trustee, the Servicer or the Company from the
Internal Revenue Service. Following such determination, notwithstanding
anything to the contrary in this Section 7.03, each Purchaser, Acquiring
Purchaser or Participant which is not created or organized under the laws of
the United States or any State thereof (including the District of Columbia)
agrees that, upon written notice by the Trustee or the Company to such
Purchaser, Acquiring Purchaser or
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Series 1997-A Supplement
Participant, as the case may be, that the Trustee, the Servicer or the Company
intends to withhold Withholding Tax (such determination being a "Withholding
Event"):
(i) such Purchaser, Acquiring Purchaser or Participant shall
for tax years for which the Purchaser, Acquiring Purchaser or
Participant has already filed United States federal income tax
returns (each a "Prior Tax Year") prior to proper notice of such
Withholding Event and as a condition to the obligations of the
Servicer and the Trustee pursuant to Subsection 7.03(a), provide (A)
a signed Officer's Certificate of such Purchaser, Acquiring Purchaser
or Participant stating that amounts paid hereunder have been included
in such Purchaser's, Acquiring Purchaser's or Participant's United
States federal income tax returns for each such Prior Tax Year, which
certificate may be relied on by the Trustee and Company in asserting
to the Internal Revenue Service the applicability of Section 1463 of
the Code with respect to its liability for any Withholding Tax for
each such Prior Tax Year and (B) provide information to the Trustee
and the Company or, at the option of such Purchaser, Acquiring
Purchaser or Participant, to the Internal Revenue Service in support
of the application of Section 1463 of the Code for each such Prior
Tax Year;
(ii) if Section 1463 of the Code is not applicable for any
Prior Tax Year of such Purchaser, Acquiring Purchaser or Participant
because such Purchaser, Acquiring Purchaser or Participant did not
properly pay the United States federal income tax due on amounts
payable on its VFC Certificates or hereunder during such Prior Tax
Year, the Purchaser, Acquiring Purchaser or Participant shall
indemnify the Trust, the Trustee and the Company for any Withholding
Tax (and any interest and penalties thereon) payable by the Trustee,
the Company, the Servicer or the Trust on such amounts that are
attributable to such Prior Tax Year and with respect to which such
Purchaser, Acquiring Purchaser or Participant did not properly pay
such United States federal income tax; and
(iii) all payments to any Purchaser, Acquiring Purchaser or
Participant shall be made without deduction for any Withholding Tax
and the Company shall be solely responsible for paying any
Withholding Tax. At the time and to the extent such Purchaser,
Acquiring Purchaser or Participant receives an actual tax benefit
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Series 1997-A Supplement
from the Company's payment of such Withholding Tax (including, a
reduction in estimated tax payments due), such Purchaser, Acquiring
Purchaser or Participant shall reimburse the Company to the extent of
such benefits.
Notwithstanding any other provision contained in this
Agreement or in any Supplement, the Servicer and the Company shall be required
to determine and notify the Trustee when withholding is appropriate under this
Section 7.03, and the Trustee shall not be liable for, and shall not be
required to pay from its own funds, the amount of any Withholding Taxes or any
related penalties or fines. To the extent that any amounts relating to any
such withholding are paid by the Trustee from its own funds, such amounts
shall be promptly reimbursed to the Trustee by the Company, the Servicer and
each Purchaser.
SECTION 7.04. Indemnity. The Company agrees to indemnify
each Purchaser and to hold each Purchaser harmless from any loss or expense
which such Purchaser may sustain or incur as a consequence of (a) default by
the Company in making a borrowing of, conversion into or continuation of a
Eurodollar Tranche after the Company has given irrevocable notice requesting
the same in accordance with the provisions of this Supplement, or (b) default
by the Company in making any prepayment in connection with a Decrease after
the Company has given irrevocable notice thereof in accordance with the
provisions of Section 2.06 of this Supplement or (c) the making of a
prepayment of a Eurodollar Tranche prior to the termination of the Eurodollar
Period or NIBO Period for such Eurodollar Tranche. Such indemnification may
include an amount equal to the excess, if any, of (i) the amount of interest
which would have accrued on the amount so prepaid or not so borrowed,
converted or continued, for the period from the date of such prepayment or of
such failure to borrow, convert or continue to the last day of the Eurodollar
Period or NIBO Period (or in the case of a failure to borrow, convert or
continue, the Eurodollar Period or NIBO Period that would have commenced on
the date of such prepayment or of such failure) in each case at the applicable
rate of interest for such Eurodollar Tranche provided for herein (excluding,
however, the Applicable Margin included therein, if any) over (ii) the amount
of interest (as reasonably determined by such Purchaser) which would have
accrued to such Purchaser on such amount by placing such amount on deposit for
a comparable period with leading banks in the interbank Eurodollar market;
provided that any payments made by the Company pursuant to this Section shall
be Company Subordinated Obligations. This
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Series 1997-A Supplement
covenant shall survive the termination of this Supplement and the payment of
all amounts payable hereunder. A certificate as to any additional amounts
payable pursuant to the foregoing sentence submitted by any Purchaser to the
Company shall be conclusive absent manifest error.
SECTION 7.05. Assignment of Commitments Under Certain
Circumstances; Duty to Mitigate. If (a)(i) any Purchaser delivers a notice
described in Section 7.02 or (ii) the Company is required to pay any
additional amount or indemnification payment to any Purchaser pursuant to
Sections 7.03 or 7.04, the Company may, at its sole expense and effort
(including with respect to the processing and recordation fee referred to in
subsection 11.10(b)), upon notice to such Purchaser and the Agent, require
such Purchaser to transfer and assign, without recourse (in accordance with
and subject to the restrictions contained in Section 11.10), all of its
interests, rights and obligations under this Agreement to an assignee that
shall assume such assigned obligations (which assignee may be another
Purchaser, if another Purchaser accepts such assignment); provided that (A)
such assignment shall not conflict with any law, rule or regulation or order
of any court or other Governmental Authority having jurisdiction, (B) the
Company shall have received the prior written consent of the Agent, which
consent shall not unreasonably be withheld, and (C) the Company or such
assignee shall have paid to the affected Purchaser in immediately available
funds an amount equal to the sum of the principal of, and interest accrued to
the date of such payment on, the outstanding VFC Certificates of such
Purchaser plus all fees and other amounts accrued for the account of such
Purchaser hereunder (including any amounts under Sections 7.02, 7.03 and
7.04); and provided further that, if prior to any such transfer and assignment
the circumstances or event that resulted in such Purchaser's notice under
Section 7.02 or the amounts paid pursuant to Sections 7.03 or 7.04, as the
case may be, cease to cause such Purchaser to suffer increased costs or
reductions in amounts received or receivable or reduction in return on
capital, or cease to have the consequences specified in Section 7.02, or cease
to result in amounts being payable under Sections 7.03 or 7.04, as the case
may be (including as a result of any action taken by such Purchaser pursuant
to subsection 7.05(b) below), or if such Purchaser shall withdraw its notice
under Section 7.02 or shall waive its right to further payments under Sections
7.03 or 7.04 in respect of such circumstances or event, as the case may be,
then such Purchaser shall not thereafter be required to make any such transfer
and assignment hereunder.
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Series 1997-A Supplement
(b) If (i) any Purchaser delivers a notice described in
Section 7.02 or (ii) the Company is required to pay any additional amount to
any Purchaser (or Transferee), pursuant to Sections 7.03 or 7.04, then such
Purchaser shall use reasonable efforts (which shall not require such Purchaser
to incur an unreimbursed loss or unreimbursed cost or expense or otherwise
take any action inconsistent with its internal policies or legal or regulatory
restrictions or suffer any disadvantage or burden reasonably deemed by it to
be significant) (A) to file any certificate or document reasonably requested
in writing by the Company or (B) to assign its rights and delegate and
transfer its obligations hereunder to another of its offices, branches or
affiliates, if such filing or assignment would enable it to withdraw its
notice pursuant to Section 7.02 or would reduce amounts payable pursuant to
Sections 7.03 or 7.04, as the case may be, in the future. The Company hereby
agrees to pay all reasonable costs and expenses incurred by any Purchaser in
connection with any such filing or assignment, delegation and transfer.
SECTION 7.06. Limitation. The obligations of the
Company under this Article VII shall be limited by Section 11.13.
ARTICLE VIII
Covenants, Representations and Warranties
SECTION 8.01. Representations and Warranties of the Company
and the Servicer. The Company and the Servicer each hereby represents and
warrants to the Trustee, the Agent and each of the Purchasers that each and
every of their respective representations and warranties contained in the
Agreement and, in the case of the Servicer, the Servicing Agreement is true
and correct as of the Issuance Date and as of the date of each Increase.
SECTION 8.02. Covenants of the Company and the Servicer. The
Company and the Servicer hereby agree, in addition to their obligations under
the Agreement and the Servicing Agreement, that:
(a) they shall not terminate the Agreement unless in
compliance with the terms of the Agreement and the Supplement
relating to each Outstanding Series;
(b) they will (i) provide the Agent with evidence,
satisfactory to the Agent, of the establishment of
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Series 1997-A Supplement
computer back-up systems (in accordance with the time limits set
forth in Schedule 3) and (ii) within 90 days of the Issuance Date,
deliver to the Trustee executed copies of any landlord waivers (or
the lease containing such waiver provisions), in a form reasonably
acceptable to the Trustee, that may be necessary to grant to the
Trustee access to any leased premises of the Servicer for which the
Trustee may require access to perform the collection and
administrative functions to be performed by the Trustee under the
Transaction Documents;
(c) they shall observe in all material respects each and
every of their respective covenants (both affirmative and negative)
contained in the Agreement, the Servicing Agreement, this Supplement
and all other Transaction Documents to which each is a party;
(d) they shall afford the Agent or any representative of the
Agent access to all records relating to the Receivables at any
reasonable time during regular business hours, upon reasonable prior
notice, for purposes of inspection and shall permit the Agent or any
representative of the Agent to visit any of the Company's or the
Servicer's, as the case may be, offices or properties during regular
business hours and as often as may reasonably be requested, subject
to the Company's or the Servicer's, as the case may be, normal
security and confidentiality requirements and to discuss the
business, operations, properties, financial and other conditions of
the Company or the Servicer with their respective officers and
employees and with their Independent Public Accountants; provided
that the Agent shall notify the Company or the Servicer, as the case
may be, prior to any contact with such accountants and shall give the
Company or the Servicer the opportunity to participate in such
discussions; and
(e) they shall not waive the provisions of subsections
7.01(d), (e)(i),(g) and (h)of the Receivables Sale Agreement without
the consent of the Agent.
SECTION 8.03. Covenants of the Servicer. The
Servicer hereby agrees that it shall:
(i) observe each and all of its respective covenants (both
affirmative and negative) contained in each Pooling and Servicing
Agreement in all material respects;
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Series 1997-A Supplement
(ii) provide to the Agent, simultaneously with delivery to
the Trustee or the Rating Agencies, all reports, notices,
certificates, statements and other documents required to be delivered
to the Trustee or the Rating Agencies pursuant to the Agreement, the
Servicing Agreement and the other Transaction Documents and furnish
to the Agent promptly after receipt thereof a copy of each material
notice, material demand or other material communication (excluding
routine communications) received by or on behalf of the Company or
the Servicer with respect to the Transaction Documents; and
(iii) provide notice to the Agent of the appointment of a
Successor Servicer pursuant to Section 6.02 of the Servicing
Agreement; and
(iv) (A) immediately notify the Trustee and the Agent upon
receipt of notification from the Seller that in connection with any
Supplier Quality Assurance review relating to the GMT 800 Program, an
officer of the Seller has received notice from GM that such review is
unsatisfactory in any material respect, (B) keep the Trustee and the
Agent reasonably informed of the corrective actions being taken by
the Seller and (C) promptly notify the Trustee and the Agent of the
commencement and termination of any GMT/PPAP Rejection Period.
SECTION 8.04. Covenant of the Company. The Company hereby
agrees that it shall not permit any amendment, supplement, modification or
waiver or exercise any consent rights granted to it under the Receivables Sale
Agreement with respect to the GM Agreements unless (i) such amendment,
supplement, modification or waiver or such exercise of consent rights would
not have an adverse effect on the interests, rights or remedies of the Trustee
or the Investor Certificateholders under or with respect to the transaction
documents or (ii) the Agent shall have consented in writing to such amendment,
supplement, modification or waiver or such exercise of consent rights.
SECTION 8.05. Obligations Unaffected. The obligations of the
Company and the Servicer to the Agent and the Purchasers under this Supplement
shall not be affected by reason of any invalidity, illegality or irregularity
of any of the Receivables or any sale of any of the Receivables.
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Series 1997-A Supplement
SECTION 8.06. Representations and Warranties of the Initial
Purchasers and any Acquiring Purchasers. Each Initial Purchaser and any
Acquiring Purchaser represents, warrants and covenants to the Company that:
(a) it is not a trust, estate, partnership or "S
Corporation" (within the meaning of Section 1361(a) of the Code) for United
States federal income tax purposes, or if it is such an entity, the value of
the entity's interest in the VFC Certificates is less than 50% of the total
value of all the entity's assets;
(b) it has not acquired and agrees that it will not sell,
trade or transfer any interest in a VFC Certificate or cause a Participation
or any other interest in a VFC Certificate or this Supplement, to be marketed
on or through an "established securities market" within the meaning of Section
7704(b)(1) of the Code (and the Treasury regulations promulgated thereunder)
including, without limitation, an over-the-counter market or an interdealer
quotation system that regularly disseminates firm buy or sell quotations;
(c) it is the sole beneficial owner of its VFC Certificates
and it will remain the sole beneficial owner of such VFC Certificates until
such time as such VFC Certificates, or any Participation or other interest
therein, are sold, assigned or otherwise transferred in accordance with
Section 11.10 of this Supplement; and
(d) it will not sell, assign or transfer any VFC
Certificate, or any Participation or other interest therein, except as allowed
and to the extent permitted under Section 11.10 of this Supplement.
ARTICLE IX
Conditions Precedent
SECTION 9.01. Conditions Precedent to Effectiveness of
Supplement. This Supplement will become effective on the date (the "Effective
Date") on which the following conditions precedent have been satisfied:
(a) Transaction Documents. The Agent shall have received an
original copy for itself and photocopies for each Purchaser, each executed and
delivered in form and substance satisfactory to the Agent, of (i) the
Agreement executed by a duly authorized officer of each of the
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Series 1997-A Supplement
Company, the Servicer and the Trustee, (ii) this Supplement executed by a duly
authorized officer of each of the Company, the Servicer, the Trustee, the
Agent and the Initial Purchasers and (iii) the other Transaction Documents
duly executed by the parties thereto.
(b) Corporate Documents; Corporate Proceedings of the
Company and Servicer. The Agent shall have received, with a copy for each
Purchaser, from the Company, the Seller and the Servicer, complete copies of:
(i) the certificate of incorporation including all
amendments thereto, of such Person, certified as of a recent date by
the Secretary of State or other appropriate authority of the state of
incorporation, as the case may be, and a certificate of compliance,
of status or of good standing, as and to the extent applicable, of
each such Person as of a recent date, from the Secretary of State or
other appropriate authority of such jurisdiction;
(ii) a certificate of the Secretary or Assistant Secretary
of such Person dated the Effective Date and certifying (A) that
attached thereto is a true and complete copy of the By-laws of such
Person, as in effect on the Effective Date and at all times since a
date prior to the date of the resolutions described in clause (B)
below, (B) that attached thereto is a true and complete copy of the
resolutions of the Board of Directors of such Person or committees
thereof authorizing the execution, delivery and performance of the
Transaction Documents to which it is a party and the transactions
contemplated thereby, and in the case of the Company, the execution,
sale and delivery of the VFC Certificates, and that such resolutions
have not been amended, modified, revoked or rescinded and are in full
force and effect on the Effective Date, (C) that the certificate of
incorporation of such Person has not been amended since the date of
the last amendment thereto shown on the certificate of the Secretary
of State of the state of incorporation of such Person furnished
pursuant to clause (i) above and (D) as to the incumbency and
specimen signature of each officer executing any Transaction
Documents or any other document delivered in connection herewith or
therewith on behalf of such Person; and
(iii) a certificate of another officer as to the
incumbency and specimen signature of the Secretary or
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Series 1997-A Supplement
Assistant Secretary executing the certificate pursuant to clause (ii)
above.
(c) Good Standing Certificates. The Agent shall have
received copies of certificates of compliance, of status or of good standing,
dated as of a recent date from the Secretary of State or other appropriate
authority of such jurisdiction, with respect to the Company, the Servicer and
the Seller, in each State where the ownership, lease or operation of property
or the conduct of business requires it to qualify as a foreign corporation,
except where the failure to so qualify would not have a material adverse
effect on the business, operations, properties or condition (financial or
otherwise) of the Company, the Servicer or the Seller, as the case may be.
(d) Consents, Licenses, Approvals, Etc. The Agent shall have
received, with a photocopy for each Purchaser, certificates dated the
Effective Date of the President, Vice Chairman, Chief Financial Officer or any
Vice President of the Company, the Servicer and the Seller either (i)
attaching copies of all material consents, licenses and approvals required in
connection with the execution, delivery and performance by the Company, the
Servicer or the Seller, as the case may be, of the Agreement, this Supplement,
the Receivables Sale Agreement and/or the Servicing Agreement, as the case may
be, and the validity and enforceability of the Agreement, this Supplement, the
Receivables Sale Agreement and/or the Servicing Agreement against the Company,
the Servicer or the Seller, as the case may be, and such consents, licenses
and approvals shall be in full force and effect or (ii) stating that no such
consents, licenses or approvals are so required.
(e) Filings, Registrations and Recordings. Any documents
(including, without limitation, financing statements) required to be filed in
order (i) to perfect the sale of the Receivables by the Seller to the Company
pursuant to the Receivables Sale Agreement and (ii) to create, in favor of the
Trustee, a perfected ownership/perfected first security interest in the Trust
Assets under the Agreement with respect to which an ownership/security interest
may be perfected by a filing under the UCC or other comparable statute shall, in
each case, have been properly prepared for filing in each office in each
jurisdiction where required pursuant to the Agreement or the Receivables Sale
Agreement, as the case may be. The Agent shall have received evidence
reasonably satisfactory to it of each such filing, registration or
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Series 1997-A Supplement
recordation and reasonably satisfactory evidence of the payment of any
necessary fee, tax or expense relating thereto.
(f) Lien Searches. The Agent and the Trustee shall have
received the results of a recent search satisfactory to the Agent of any UCC
filings (or equivalent filings) made with respect to the Company and the
Seller in the states (or other jurisdictions) in which the chief executive
office of the Company and the Seller is located, any offices of the Company
and the Seller in which records have been kept relating to the Receivables and
the other jurisdictions in which UCC filings (or equivalent filings) were made
pursuant to the preceding subsection, together with copies of the financing
statements (or similar documents) disclosed by such search, and accompanied by
evidence satisfactory to the Agent that any Liens disclosed by such search
would be Permitted Liens or have been released.
(g) Legal Opinions. The Agent and the Trustee shall have
received, with a counterpart for each Purchaser, opinions (i) of counsel to
the Company, the Servicer and the Seller, dated the Issuance Date, as to
corporate, tax, bankruptcy, perfection and other matters, in form and
substance acceptable to the Agent and its counsel and (ii) opinions of local
counsel to the Company, the Servicer and the Seller, dated the Issuance Date,
as to certain corporate, state tax, perfection, priority and other matters, in
form and substance acceptable to the Agent and its counsel.
(h) Fees. The Agent, the Initial Purchaser and the Trustee
shall have received payment of all fees and other amounts due and payable to
any of them on or before the Effective Date.
(i) Funding Under Credit Agreement. The initial
funding under the Credit Agreement shall have occurred or
shall occur simultaneously with the Effective Date.
(j) Conditions Under the Receivables Sale Agreement. A
Responsible Officer of the Company shall have certified that all conditions to
the obligations of the Company and the Seller under the Receivables Sale
Agreement shall have been satisfied in all material respects.
(k) Copies of Written Policies. The Agent and
the Trustee shall have received copies of the written
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Series 1997-A Supplement
Policies of the Seller in form and substance reasonably acceptable to the Agent.
(l) Company's Board of Directors. The composition of the
Company's Board of Directors (including one independent director) shall be
reasonably acceptable to the Agent; provided, however, that a second
independent director shall be appointed to the Board of Directors upon the
request of the Agent.
(m) Financial Statements. The Agent and the Trustee shall
have received a pro forma balance sheet for the Company giving effect to all
transactions occurring on or before the Issuance Date. The Agent shall have
received the consolidated balance sheets and statements of income,
stockholders' equity and cash flows of American Axle & Manufacturing, Inc. and
its respective subsidiaries on a consolidated basis (i) as of and for the
fiscal year ended December 31, 1996, audited by and accompanied by the opinion
of Deloitte & Touche LLP, independent public accountants, and (ii) as of and
for the fiscal quarter ended June 30, 1997, certified by its chief financial
officer.
(n) Solvency Letter. The Agent and the Trustee shall have
received a solvency letter, in form and substance satisfactory to the Agent
from Murray, Devine & Co., as to the solvency of the Servicer after giving
effect to the transactions occurring on or before the Issuance Date.
(o) Representations and Warranties. The representations and
warranties of the Company and the Servicer in the Agreement and this
Supplement shall be true and correct in all material respects.
ARTICLE X
The Agent
SECTION 10.01. Appointment. Each Purchaser hereby
irrevocably designates and appoints the Agent as the agent of such Purchaser
under this Supplement and each such Purchaser irrevocably authorizes the
Agent, in such capacity, to take such action on its behalf under the
provisions of this Supplement and to exercise such powers and perform such
duties as are expressly delegated to the Agent by the terms of this
Supplement, together with such other powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary elsewhere in this
Supplement, the Agent shall not have any duties or
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responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Purchaser, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Supplement or otherwise exist against the Agent.
SECTION 10.02. Delegation of Duties. The Agent may execute
any of its duties under this Supplement by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel (who may be
counsel for the Company or the Servicer), independent public accountants and
other experts selected by it concerning all matters pertaining to such duties.
The Agent shall not be responsible for the negligence or misconduct of any
agents or attorneys-in-fact selected by it with reasonable care.
SECTION 10.03. Exculpatory Provisions. Neither the Agent nor
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates shall be (i) liable for any action lawfully taken or omitted to be
taken by it or such Person under or in connection with the Agreement or this
Supplement (x) with the consent or at the request of the Majority Purchasers
or (y) in the absence of its own gross negligence or wilful misconduct or (ii)
responsible in any manner to any of the Purchasers for any recitals,
statements, representations or warranties made by the Company or any officer
thereof contained in this Supplement or any other Transaction Document or in
any certificate, report, statement or other document referred to or provided
for in, or received by the Agent under or in connection with, this Supplement
or any other Transaction Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Supplement or any other
Transaction Document or for any failure of the Company to perform its
obligations hereunder or thereunder. The Agent shall not be under any
obligation to any Purchaser to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Supplement or any other Transaction Document, or to inspect the properties,
books or records of the Company.
SECTION 10.04. Reliance by Agent. The Agent shall be
entitled to rely, and shall be fully protected in relying, upon any VFC
Certificate, writing, resolution, notice, consent, certificate, affidavit,
letter, telecopy, telex or teletype message, statement, order or other
documents or conversation believed by it to be genuine and correct and to have
been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the
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Company or the Servicer), independent accountants and other experts selected
by the Agent and shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the advice of such counsel,
accountants or experts. The Agent may deem and treat the payee of any VFC
Certificate as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the
Agent. The Agent shall be fully justified in failing or refusing to take any
action under this Supplement or any other Transaction Document unless it shall
first receive such advice or concurrence of the Majority Purchasers as it
deems appropriate and it shall first be indemnified to its satisfaction by the
Purchasers against any and all liability and expense which may be incurred by
it by reason of taking or continuing to take any such action. The Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
this Supplement and the other Transaction Documents in accordance with a
request of the Majority Purchasers, and such request and any action taken or
failure to act pursuant thereto shall be binding.
SECTION 10.05. Notice of Servicer Default or Early
Amortization Event or Potential Early Amortization Event. The Agent shall not
be deemed to have knowledge or notice of the occurrence of any Servicer
Default with respect to the Servicer or any Early Amortization Event or
Potential Early Amortization Event hereunder unless the Agent has received
written notice from a Purchaser, the Company or the Servicer referring to the
Agreement or this Supplement, describing such Servicer Default or Early
Amortization Event or Potential Early Amortization Event and stating that such
notice is a "notice of a Servicer Default with respect to the Servicer" or a
"notice of an Early Amortization Event or Potential Early Amortization Event",
as the case may be. In the event that the Agent receives such a notice, the
Agent shall give notice thereof to the Purchasers, the Trustee, the Company
and the Servicer. The Agent shall take such action with respect to such
Servicer Default or Early Amortization Event or Potential Early Amortization
Event as shall be reasonably directed by the Majority Purchasers; provided
that unless and until the Agent shall have received such directions and
indemnifica tion satisfactory to the Agent from the Purchasers, the Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Servicer Default or Early Amortization Event or
Potential Early Amortization Event as it shall deem advisable in the best
interests of the Purchasers.
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SECTION 10.06. Non-Reliance on Agent and Other Purchasers.
Each Purchaser expressly acknowledges that neither the Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it and that no act by the Agent
hereinafter taken, including any review of the affairs of the Company, shall
be deemed to constitute any representation or warranty by the Agent to any
Purchaser. Each Purchaser represents to the Agent that it has, independently
and without reliance upon the Agent or any other Purchaser, and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, financial and
other condition and creditworthiness of the Company and made its own decision
to enter into this Supplement. Each Purchaser also represents that it will,
independently and without reliance upon the Agent or any other Purchaser, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Supplement and the other Transaction
Documents, and to make such investigation as it deems necessary to inform
itself as to the business, operations, property, financial and other condition
and creditworthiness of the Company. Except for notices, reports and other
documents expressly required to be furnished to the Purchasers by the Agent
hereunder, the Agent shall not have any duty or responsibility to provide any
Purchaser with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Borrower which may come into the possession of the
Agent or any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates.
SECTION 10.07. Indemnification. The Purchasers agree to
indemnify the Agent in its capacity as such (to the extent not reimbursed by
the Company and the Servicer and without limiting the obligation of the
Company and the Servicer to do so), ratably according to their respective
Commitment Percentages in effect on the date on which indemnification is
sought (or, if indemnification is sought after the Commitment Termination
Date, ratably in accordance with their Commitment Percentages immediately
prior to such date), from and against any and all liabilities, obliga tions,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time be imposed or,
incurred by or asserted against the Agent in any way relating to or arising
out of, the Commitments, this Supplement any of the
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other Transaction Documents or any documents contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by the Agent under or in connection with any of the
foregoing; provided that no Purchaser shall be liable for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting solely from the
Agent's gross negligence or wilful misconduct. The agreements in this Section
shall survive the payment of all amounts payable hereunder.
SECTION 10.08. Agent in Its Individual Capacity. The Agent
and its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Company, the Servicer or any of their
Affiliates as though the Agent were not the Agent hereunder. With respect to
any VFC Certificate held by the Agent, the Agent shall have the same rights
and powers under this Supplement and the other Transaction Documents as any
Purchaser and may exercise the same as though it were not the Agent, and the
terms "Purchaser" and "Purchasers" shall include the Agent in its individual
capacity.
SECTION 10.09. Successor Agent. The Agent may resign as
Agent upon 10 days' notice to the Purchasers. If the Agent shall resign as
Agent under this Supplement, then the Majority Purchasers shall appoint from
among the Purchasers a successor agent for the Purchasers, which successor
agent shall be approved by the Company and the Servicer (which approval shall
not be unreasonably withheld), whereupon such successor agent shall succeed to
the rights, powers and duties of the Agent, and the term "Agent" shall mean
such successor agent effective upon such appointment and approval, and the
former Agent's rights, powers and duties as Agent shall be terminated, without
any other or further act or deed on the part of such former Agent or any of
the parties to this Supplement. After any retiring Agent's resignation as
Agent, the provisions of this Article X shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent under this
Supplement.
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ARTICLE XI
Miscellaneous
SECTION 11.01. Ratification of Agreement. As supplemented by
this Supplement, the Agreement is in all respects ratified and confirmed and
the Agreement as so supplemented by this Supplement shall be read, taken and
construed as one and the same instrument.
SECTION 11.02. Governing Law. THIS SUPPLEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
SECTION 11.03. Further Assurances. Each of the Company, the
Servicer and the Trustee agrees, from time to time, to do and perform any and
all acts and to execute any and all further instruments required or reasonably
requested by the Agent or Majority Purchasers more fully to effect the
purposes of this Supplement and the sale of the VFC Certificates hereunder,
including, without limitation, in the case of the Company and the Servicer,
the execution of any financing or continuation statements or similar documents
relating to the Receivables and the other Trust Assets for filing or
registration under the provisions of the UCC or similar legislation of any
applicable jurisdiction; provided that in the case of the Trustee, in
furtherance and without limiting the generality of subsection 8.01(d) of the
Agreement, the Trustee shall have received a reasonable assurance of adequate
reimbursement and indemnity in connection with taking such action before the
Trustee shall be required to take any such action.
SECTION 11.04. Payments. Each payment to be made hereunder
shall be made on the required payment date in lawful money of the United
States and in immediately available funds, if to the Purchasers, at the office
of the Agent set forth below its signature hereto. On each Distribution Date,
the Agent shall remit in like funds to each Purchaser its applicable pro rata
share (based on each such Purchaser's Series 1997-A Invested Amount) of each
such payment received by the Agent for the account of the Purchasers.
SECTION 11.05. Costs and Expenses. The Company agrees to pay
all reasonable fees, out-of-pocket costs and expenses of the Agent (including,
without limitation, reasonable fees and disbursements of one counsel to the
Agent) in connection with (i) the preparation, execution and delivery of this
Supplement, the Agreement and the other
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Transaction Documents and amendments or waivers of any such documents and (ii)
the enforcement by the Agent of the obligations and liabilities of the Company
and the Servicer under the Agreement, this Supplement or any related document;
provided, however, that any payments made by the Company pursuant to this
Section shall be Company Subordinated Obligations.
SECTION 11.06. No Waiver; Cumulative Remedies. No failure to
exercise and no delay in exercising, on the part of the Trustee, the Agent or
any Purchaser, any right, remedy, power or privilege hereunder, shall operate
as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. The
rights, remedies, powers and privileges herein provided are cumulative and not
exhaustive of any rights, remedies, powers and privileges provided by law.
SECTION 11.07. Amendments. (a) Subject to sub section (c) of
this Section 11.07, this Supplement may be amended in writing from time to
time by the Servicer, the Company and the Trustee, with the consent of the
Agent but without the consent of any holder of any outstanding VFC
Certificate, to cure any ambiguity, to correct or supplement any provisions
herein or therein which may be inconsistent with any other provisions herein
or therein or to add any other provisions to or changing in any manner or
eliminating any of the provisions with respect to matters or questions raised
under this Supplement which shall not be inconsistent with the provisions of
any Pooling and Servicing Agreement; provided, however, that such action shall
not, as evidenced by an Officer's Certificate delivered to the Trustee upon
which the Trustee may conclusively rely, have a material adverse effect on the
interests of the VFC Certificate holders (but, to the extent that the
determination of whether such action would have such a material adverse effect
requires a conclusion as to a question of law, an Opinion of Counsel shall be
delivered to the Trustee in addition to such Officer's Certificate); provided
further that any amendment that is entered into to provide additional
Enhancement for any Outstanding Series shall be deemed to have no such
material adverse effect. The Trustee may, but shall not be obligated to, enter
into any such amendment pursuant to this paragraph or paragraph (b) below that
affects the Trustee's rights, duties or immunities under any Pooling and
Servicing Agreement or otherwise.
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(b) Subject to subsection (c) of this Section 11.07, this
Supplement may also be amended (other than in the circumstances referred to in
subsection (a)) in writing from time to time by the Servicer, the Company and
the Trustee with the consent of the Majority Purchasers for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Supplement or of modifying in any manner the rights of the
VFC Certificateholders; provided, however, that no such amendment shall,
unless signed or consented to in writing by all Purchasers, (i) extend the
time for payment, or reduce the amount, of any amount on money payable to or
for the account of any Purchaser under any provision of this Supplement, (ii)
subject any Purchaser to any additional obligation (including, without
limitation, any change in the determination of any amount payable by any
Purchaser) or (iii) change the Aggregate Commitment Amount or the number of
Purchasers which shall be required for any action under this subsection or any
other provision of this Supplement.
(c) Any amendment hereof can be affected without the Agent
being a party thereto; provided, however, that no such amendment, modification
or waiver of this Supplement that affects rights or duties of the Agent shall
be effective unless the Agent shall have given its prior written consent
thereto.
(d) No amendment hereof pursuant to clause (b) above shall
be effective until the Rating Agency Condition is satisfied (unless Series
1997-A has not been rated, in which case this Subsection 11.07(d) shall not
apply).
SECTION 11.08. Severability. If any provision hereof is void
or unenforceable in any jurisdiction, such voidness or unenforceability shall
not affect the validity or enforceability of (i) such provision in any other
jurisdiction or (ii) any other provision hereof in such or any other
jurisdiction.
SECTION 11.09. Notices. All notices, requests and demands to
or upon any party hereto to be effective shall be given (i) in the case of the
Company, the Servicer and the Trustee, in the manner set forth in Section
10.05 of the Agreement and (ii) in the case of the Agent, each Purchaser and
the Rating Agencies, in writing (including a confirmed transmission by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered by hand or three days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, (A) in the case of
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the Agent and each Purchaser, at their respective addresses set forth below
their names on Schedule 1 hereto and (B) in the case of the Rating Agencies,
at the addresses notified by such Rating Agencies; or to such other address as
may be hereafter notified by the respective parties hereto.
SECTION 11.10. Successors and Assigns. (a) Subject to
subsection 11.10(h), this Supplement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
(b) Any Purchaser may assign to one or more assignees (any
such assignee shall be referred to herein as an "Acquiring Purchaser") all or
a portion of its interests, rights and obligations under this Supplement and
the Transaction Documents; provided, however, that (i) except in the case of
an assignment to a Purchaser or an Affiliate thereof, the Company must give
its prior written consent to such assignment (which consent shall not in
either case be unreasonably withheld or delayed), (ii) except in the case of
an assignment to a Purchaser, the amount of the Commitment of the assigning
Purchaser subject to each such assignment (determined as of the date the
Commitment Transfer Supplement with respect to such assignment is delivered to
the Agent) shall not be less than $5,000,000, (iii) the parties to each such
assignment shall execute and deliver to the Agent the Commitment Transfer
Supplement, substantially in the form of Exhibit B, together with a processing
and recordation fee of $3,500 and (iv) the Acquiring Purchaser, if it shall
not be a Purchaser, shall deliver to the Agent an Administrative
Questionnaire, substantially in the form of Exhibit C. Upon acceptance and
recording pursuant to paragraph (e) of this Section 11.10, from and after the
effective date specified in each Commitment Transfer Supplement, which
effective date shall be at least five Business Days after the execution
thereof, (A) the Acquiring Purchaser thereunder shall be a party hereto and,
to the extent of the interest assigned by such Commitment Transfer Supplement,
have the rights and obligations of a Purchaser under this Supplement and (B)
the assigning Purchaser thereunder shall, to the extent of the interest
assigned by such Commitment Transfer Supplement, be released from its
obligations under this Supplement and the other Transaction Documents (and, in
the case of an Commitment Transfer Supplement covering all or the remaining
portion of an assigning Purchaser's rights and obligations under this
Supplement and the other Transaction Documents, such Purchaser shall cease to
be a party hereto but shall continue to be entitled to the benefits of
Sections 7.01,
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7.02, 7.03, 7.04 and 11.05, as well as to any fees accrued for its account and
not yet paid).
(c) By executing and delivering a Commitment Transfer
Supplement, the assigning Purchaser thereunder and the Acquiring Purchaser
thereunder shall be deemed to confirm to and agree with each other and the
other parties hereto as follows: (i) such assigning Purchaser warrants that it
is the legal and beneficial owner of the interest being assigned thereby free
and clear of any adverse claim and that its Commitment, and the outstanding
balances of its VFC Certificates, in each case without giving effect to
assignments thereof which have not become effective, are as set forth in such
Commitment Transfer Supplement; (ii) except as set forth in (i) above, such
assigning Purchaser makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Supple ment, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this
Supplement, any other Transaction Document or any other instrument or document
furnished pursuant hereto or thereto, or the financial condition of the
Seller, the Company or the Servicer, or the performance or observance by the
Seller, the Company or the Servicer of any of its obligations under this
Supplement, any other Transaction Document or any other instrument or document
furnished pursuant hereto or thereto; (iii) such Acquiring Purchaser
represents and warrants that it is legally authorized to enter into such
Commitment Transfer Supplement; (iv) such Acquiring Purchaser confirms that it
has received a copy of this Supplement and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Commitment Transfer Supplement; (v) such Acquiring
Purchaser will independently and without reliance upon the Agent, the Trustee,
the assigning Purchaser or any other Purchaser and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Supplement or any
other Transaction Document; (vi) such Acquiring Purchaser appoints and
authorizes the Agent and the Trustee to take such action as agent on its
behalf and to exercise such powers under this Supplement as are delegated to
the Agent and the Trustee, respectively, by the terms hereof, together with
such powers as are reasonably incidental thereto; and (vii) such Acquiring
Purchaser agrees that it will perform in accordance with their terms all the
obligations which by the terms of this Supplement are required to be performed
by it as a Purchaser.
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(d) Notwithstanding and in addition to the provisions of
Section 5.03 of the Agreement, the Agent shall maintain at one of its offices
in The City of New York a copy of each Commitment Transfer Supplement
delivered to it and a register for the recordation of the names and addresses
of the Purchasers, and the Commitments of, and the principal amount of the VFC
Certificates issued to, each Purchaser pursuant to the terms hereof from time
to time (the "Register"). Notwithstanding the provisions of Section 5.05 of
the Agreement, the entries in the Register as provided in this subsection
11.10(d) shall be conclusive and the Company, the Servicer, the Purchasers,
the Paying Agent, the Transfer Agent and Registrar, the Agent and the Trustee
shall treat each person whose name is recorded in the Register pursuant to the
terms hereof as a Purchaser hereunder for all purposes of this Supplement,
notwith standing notice to the contrary. However, in accordance with Section
5.05 of the Agreement, in determining whether the holders of the requisite
Fractional Undivided Interests have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, VFC Certificates owned by the
Company, the Servicer or any Affiliate thereof, shall be disregarded and
deemed not to be outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only VFC Certificates which a
Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded. VFC Certificates so owned by the Company, the Servicer or any
Affiliate thereof which have been pledged in good faith shall not be
disregarded and may be regarded as outstanding if the pledgee establishes to
the satisfaction of the trustee the pledgee's right so to act with respect to
such VFC Certificates and that the pledgee is not the Company, the Servicer or
any Affiliate thereof. The Register shall be available for inspection by the
Company, the Servicer, the Purchasers and the Trustee, at any reasonable time
and from time to time upon reasonable prior notice.
(e) Upon its receipt of a copy of the written consent of the
Trustee, the Company and the Servicer (as required under Section 11.10(b)
above) and a duly completed Commitment Transfer Supplement executed by an
assigning Purchaser and an Acquiring Purchaser, an Administrative
Questionnaire completed in respect of the Acquiring Purchaser (unless the
Acquiring Purchaser shall already be a Purchaser hereunder) and the processing
and recordation fee referred to in paragraph (b) above, the Agent shall (i)
accept such Commitment Transfer Supplement, (ii) record the information
contained therein in the Register and
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(iii) give prompt written notice thereof to the Purchasers, the Company, the
Servicer and the Trustee. No assignment shall be effective unless and until it
has been recorded in the Register as provided in this paragraph (e).
(f) Any Purchaser may sell participations to one or more
banks or other entities (the "Participants") in all or a portion of its rights
and obligations under this Supplement and the other Transaction Documents
(including all or a portion of its Commitment and VFC Certificates); provided
that any Participant shall, prior to entering into a Participation, execute
and deliver to the Company and the Trustee a participation certification in
substantially the form of Exhibit G (a "Participation Certification"); and
provided further, that (i) such Purchaser's obligations under this Agreement
shall remain unchanged, (ii) such Purchaser shall remain solely responsible to
the other parties hereto for the performance of such obligations, (iii) the
Participants shall be entitled to the benefit of the cost protection
provisions contained in Sections 7.01, 7.02, 7.03 and 7.04, and shall be
required to provide the tax forms and certifications described in Section
7.03(b), to the same extent as if they were Purchasers, provided that no such
Participant shall be entitled to receive any greater amount pursuant to such
Sections than a Purchaser would have been entitled to receive in respect of
the amount of Participation sold by such Purchaser to such Participant had no
sale occurred, (iv) the Company, the Servicer, the other Purchasers, the Agent
and the Trustee, shall continue to deal solely and directly with such
Purchaser in connection with such Purchaser's rights and obligations under
this Supplement, and such Purchaser shall retain the sole right to enforce its
rights under VFC Certificates and to approve any amendment, modification or
waiver of any provision of this Supplement (other than amendments,
modifications or waivers decreasing any fees payable hereunder or the amount
of principal of or the rate at which interest is payable on the VFC
Certificates, extending any scheduled principal payment date or date fixed for
the payment of interest on the VFC Certificates or increasing or extending the
Commitments) and (v) the sum of the aggregate amount of any Commitment or
portion thereof subject to each such Participation plus the portion of the
Series 1997-A Invested Amount represented by any VFC Certificates subject to
such Participation shall not be less than $5,000,000. Each Purchaser that
grants a Participation to a Non-U.S. Person pursuant to this Subsection shall
provide the Company and the Trustee with appropriately executed copies of
Internal Revenue Service Form 4224 with respect to each Participant (i) prior
to or promptly after any such disposition and
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(ii) upon the occurrence of any event which would require the amendment or
resubmission of any such form previously provided hereunder. No Participant
may grant a subparticipation in a VFC Certificate or this Supplement under any
circumstances.
(g) Any Purchaser may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
11.10, disclose to the Acquiring Purchaser or Participant or proposed
Acquiring Purchaser or Participant any information relating to the Seller, the
Servicer, the Trust or the Company furnished to such Purchaser by or on behalf
of such entities, provided that, prior to any such disclosure of information,
each such Acquiring Purchaser or Participant or proposed Acquiring Purchaser
or Participant shall execute a confidentiality agreement in the form of
Exhibit H.
(h) The Company shall not assign or delegate any of its
rights or duties hereunder without the prior written consent of the Agent, the
Trustee and each Purchaser, and any attempted assignment without such consent
shall be null and void.
(i) If, pursuant to this Supplement, any interest in this
Supplement or in a VFC Certificate is transferred to any Transferee which is a
Non-U.S. Person, the Purchaser making such transfer shall cause such
Transferee, concur rently with the effectiveness of such Transfer, (i) to
furnish to the assigning Purchaser (and, in the case of any Acquiring
Purchaser, the Agent, the Company and the Trustee), with copies to the
Servicer, United States Internal Revenue Service Form 4224 (or successor
applicable forms) unless a change in law has occurred prior to the date on
which such delivery would otherwise be required which renders such form
inapplicable and (ii) to agree (for the benefit of the Purchasers, the Agent,
the Servicer, the Company and the Trustee) to provide the assigning Purchaser
(and, in the case of any Acquiring Purchaser, the Agent, the Company and the
Trustee) a new Form 4224 (or successor applicable forms) upon the expiration
or obsolescence of any previously delivered form and comparable statements in
accordance with applicable United States laws and regula tions and amendments
duly executed and completed by such Transferee unless a change in law has
occurred prior to the date on which such delivery would otherwise be required
which renders such form inapplicable, and to comply from time to time with all
applicable United States laws and regulations with regard to such withholding
tax exemption.
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(j) Notwithstanding any other provisions herein, no transfer
or assignment of any interests or obligations of any Purchaser hereunder or
any grant of participations therein shall be permitted if such transfer,
assignment or grant would result in a prohibited transaction under Section
4975 of the Internal Revenue Code or Section 406 of ERISA or cause the Trust
Assets to be regarded as "plan assets" pursuant to 29 C.F.R. ss. 2510.3-101,
or require the Company or the Seller to file a registration statement with the
Securities and Exchange Commission or to qualify under the "blue sky" laws of
any state.
SECTION 11.11. Counterparts. This Supplement may be executed
in any number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an
original, and all of which taken together shall constitute one and the same
agreement.
SECTION 11.12. Adjustments; Setoff. (a) If any Purchaser (a
"Benefitted Purchaser") shall at any time receive in respect of its Series
1997-A Purchaser Invested Amount any distribution of principal, interest,
Commitment Fees or other fees, or any interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by
setoff, or otherwise) in a greater proportion than any such distribution
received by any other Purchaser, if any, in respect of such other Purchaser's
Series 1997-A Purchaser Invested Amount, or interest thereon, such Benefitted
Purchaser shall purchase for cash from the other Purchasers such portion of
each such other Purchaser's interest in the VFC Certificates, or shall provide
such other Purchasers with the benefits of any such collateral, or the
proceeds thereof, as shall be necessary to cause such Benefitted Purchaser to
share the excess payment or benefits of such collateral or proceeds ratably
with each of the Purchasers; provided, however, that if all or any portion of
such excess payment or benefits is thereafter recovered from such Benefitted
Purchaser, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest. The
Company agrees that each Purchaser so purchasing a portion of the VFC
Certificate holders' Interest may exercise all rights of payment (including,
without limitation, rights of setoff) with respect to such portion as fully as
if such Purchaser were the direct holder of such portion.
(b) In addition to any rights and remedies of the
Purchasers provided by law, each Purchaser shall have the
<PAGE>
74
Series 1997-A Supplement
right, without prior notice to the Company, any such notice being expressly
waived by the Company to the extent permitted by applicable law, upon any
amount becoming due and payable by the Company hereunder or under the VFC
Certificates to setoff and appropriate and apply against any and all deposits
(general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such Purchaser to or for the credit or the account
of the Company. Each Purchaser agrees promptly to notify the Company and the
Agent after any such setoff and application made by such Purchaser; provided
that the failure to give such notice shall not affect the validity of such
setoff and application.
SECTION 11.13. Limitation of Payments by Company. The
Company's obligations under Article VII shall be limited to the funds
available to the Company which have been properly distributed to the Company
pursuant to the Agreement and any Supplement and neither the Agent nor any
Purchaser shall have any actionable claim against the Company for failure to
satisfy such obligation because it does not have funds available therefor from
amounts properly distributed.
SECTION 11.14. No Bankruptcy Petition. Each Purchaser hereby
covenants and agrees that, prior to the date which is one year and one day
after the later of (i) the last day of the Series 1997-A Amortization Period
and (ii) the date on which all Investor Certificates of each other Outstanding
Series are repaid in full, it will not institute against, or join any other
Person in instituting against, the Company any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other similar
proceedings under any Federal or state bankruptcy or similar law.
ARTICLE XII
Final Distributions
SECTION 12.01. Certain Distributions. (a) Not later than
2:00 p.m., New York City time, on the Distribu tion Date following the date on
which the proceeds from the disposition of the Receivables pursuant to subsec
tion 7.02(b) of the Agreement are deposited into the Series 1997-A Non-Principal
Collection Sub-subaccount and
<PAGE>
75
Series 1997-A Supplement
the Series 1997-A Principal Collection Sub-subaccount, the Trustee shall
distribute such amounts pursuant to Article III of this Supplement.
<PAGE>
76
Series 1997-A Supplement
(b) Notwithstanding anything to the contrary in this
Supplement or the Agreement, any distribution made pursuant to this Section
shall be deemed to be a final distribution pursuant to Section 9.03 of the
Agreement with respect to the VFC Certificates.
<PAGE>
77
Series 1997-A Supplement
IN WITNESS WHEREOF, the Company, the Servicer, the Trustee,
the Agent and the Initial Purchasers have caused this Series 1997-A Supplement
to be duly executed by their respective officers as of the day and year first
above written.
AAM RECEIVABLES CORP.,
by /s/ Patrick S. Lancaster
------------------------------
Name: Patrick S. Lancaster
Title: Secretary
AMERICAN AXLE & MANUFACTURING
INC., as Servicer,
by /s/ Gary J. Witosky
------------------------------
Name: Gary J. Witosky
Title: Chief Financial Officer
THE CHASE MANHATTAN BANK, not
in its individual capacity but
solely as Trustee,
by /s/ Marcus Gustafson
------------------------------
Name: Marcus Gustafson
Title: Vice President
THE CHASE MANHATTAN BANK, as Agent,
by /s/ Julie S. Long
------------------------------
Name: Julie S. Long
Title: Vice President
<PAGE>
78
Series 1997-A Supplement
THE CHASE MANHATTAN BANK, as
Initial Purchaser,
by /s/ Julie S. Long
------------------------------
Name: Julie S. Long
Title: Vice President
<PAGE>
Series 1997-A Supplement
EXHIBIT A TO SERIES
1997-A SUPPLEMENT
AAM MASTER TRUST
FORM OF VFC CERTIFICATE, SERIES 1997-A
REGISTERED UP TO $_____________.00 SERIES
NO. VFC-[ ] 1997-A PURCHASER INVESTED AMOUNT*
(OF UP TO $_____________.00 SERIES
1997-A INVESTED AMOUNT ISSUED)
*THE SERIES 1997-A PURCHASER INVESTED AMOUNT OF
THIS VFC CERTIFICATE IS SUBJECT TO CHANGE AS DESCRIBED HEREIN.
THIS VFC CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE "SECURITIES ACT"). NEITHER THIS VFC CERTIFICATE
NOR ANY PORTION HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE WITH THE
REGISTRATION PROVISIONS OF THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM SUCH REGISTRATION PROVISIONS.
THIS VFC CERTIFICATE IS NOT PERMITTED TO BE TRANSFERRED,
ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH
THE TERMS OF THE POOLING AGREEMENT AND SUPPLEMENT REFERRED TO HEREIN.
This VFC Certificate evidences a fractional
undivided interest in the assets of the
AAM MASTER TRUST
the corpus of which consists of receivables representing amounts payable for
goods or services, which receivables have been purchased by AAM Receivables
Corp., a Delaware corporation, which in turn transferred and assigned such
receivables to the AAM Master Trust.
(Not an interest in or obligation of
AAM Receivables Corp., the Seller
under the Receivables Sale Agreement
or any Affiliate thereof)
This certifies that
[NAME OF CERTIFICATEHOLDER]
(the "VFC Certificateholder") is the registered owner of a fractional
undivided interest in the assets of AAM Master Trust (the "Trust") created
pursuant to the Pooling Agreement, dated as of October 29, 1997 (as the same
may
<PAGE>
2
Series 1997-A Supplement
from time to time be amended, restated, supplemented or otherwise modified
thereafter, the "Pooling Agreement"), by and among AAM Receivables Corp., a
Delaware corporation (the "Company"), American Axle & Manufacturing, Inc., a
Delaware corporation, as servicer (the "Servicer"), and The Chase Manhattan
Bank, a New York banking corporation, not in its individual capacity but
solely as trustee (in such capacity, the "Trustee") for the Trust, as
supplemented by the Series 1997-A Supplement, dated as of October 29, 1997 (as
amended, supplemented or otherwise modified from time to time, the
"Supplement", collectively, with the Pooling Agreement, the "Agreement"), by
and among the Company, the Servicer, the Trustee, the purchasers named therein
and from time to time parties thereto (the "Purchasers") and The Chase
Manhattan Bank, a New York corporation, as initial purchaser and agent for the
Purchasers (in such capacity, the "Agent"). The corpus of the Trust consists
of receivables (the "Receivables") representing amounts payable for goods or
services and all other Trust Assets referred to in the Agreement. Although a
summary of certain provisions of the Agreement is set forth below, this VFC
Certificate does not purport to summarize the Agreement, is qualified in its
entirety by the terms and provisions of the Agreement and reference is made to
the Agreement for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Trustee. A copy of the Agreement may be requested by a
holder hereof by writing to the Trustee at The Chase Manhattan Bank, 450 W.
33rd Street, 15th Floor, New York, New York 10001, Attention of Structured
Finance Services. To the extent not defined herein, the capitalized terms used
herein have the meanings ascribed to them in the Agreement.
This VFC Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the VFC
Certificateholder, by virtue of the acceptance hereof, assents and is bound.
It is the intent of the Servicer, the Company, each VFC
Certificateholder, each beneficial owner of a VFC Certificate (or any interest
therein) and the Trustee that for U.S. Federal, state and local income and
franchise tax purposes, and for Michigan single business tax and intangibles
tax purposes, the VFC Certificates be considered as indebtedness of the
Company secured by the Trust Assets and the Trust be treated as a mere
security device or arrangement. The VFC Certificateholder, by the acceptance
hereof, and the beneficial owner of the VFC Certificate (or any interest
therein), by acquiring a beneficial ownership
<PAGE>
3
Series 1997-A Supplement
interest in such VFC Certificate (or interest), agree to treat the VFC
Certificates in such manner for such purposes.
This VFC Certificate is one in a Series of Investor
Certificates entitled "AAM Master Trust, VFC Certificates, Series 1997-A" (the
"VFC Certificates") representing a fractional undivided interest in the Trust
Assets, consisting of the right to receive the distributions specified in the
Supplement out of (i) the Series 1997-A Invested Percentage (expressed as a
decimal) of Collections received with respect to the Receivables and all other
funds on deposit in the Collection Account and (ii) to the extent such
interests appear in the Supplement, all other funds on deposit in the Series
1997-A Collection Subaccount and any subaccounts thereof (collectively, the
"VFC Certificate holders' Interest"). Concurrent with the issuance of the VFC
Certificates, the Trust shall also issue a Subordinated Company Interest to
the Company representing a fractional undivided interest in the Trust Assets,
consisting of the right to receive the distributions specified in the
Supplement out of (i) the Series 1997-A Invested Percentage (expressed as a
decimal) of Collections received with respect to the Receivables and all other
funds on deposit in the Collection Account and (ii) to the extent such
interests appear in the Supplement, all other funds on deposit in the Series
1997-A Collection Subaccount and any subaccounts thereof, in each case to the
extent not required to be distributed to or for the benefit of the VFC
Certificate holders (the "Series 1997-A Subordinated Interest"). The Trust
Assets are allocated in part to the VFC Certificate holders and the holders of
the Series 1997-A Subordinated Interest with the remainder allocated to the
Investor Certificate holders and the holders of the Subordinated Company
Interests of other Series, if any, and to the Company. An Exchangeable Company
Interest representing the Company's interest in the Trust was issued to the
Company pursuant to the Pooling Agreement on ________, 1997. The Exchangeable
Company Interest represents the interest in the Trust Assets not represented
by the Investor Certificates and the Subordinated Company Interests of each
Outstanding Series. The Exchangeable Company Interest may be decreased by the
Company pursuant to the Pooling Agreement in exchange for an increase in the
Invested Amount of a Class of Investor Certificates of an Outstanding Series
and an increase in the related Series Subordinated Company Interest, or one or
more newly issued Series of Investor Certificates and the related newly issued
Series Subordinated Company Interest, upon the conditions set forth in the
Agreement.
<PAGE>
4
Series 1997-A Supplement
Distributions with respect to this VFC Certificate shall be
paid by the Agent in immediately available funds to the VFC Certificateholder
at the office of the Agent set forth in the Agreement. Final payment of this
VFC Certificate shall be made only upon presentation and surrender of this VFC
Certificate at the office or agency specified in the notice of final
distribution delivered by the Trustee to the VFC Certificate holders in
accordance with the Agreement.
This VFC Certificate does not represent an obligation of, or
an interest in, the Company, the Servicer or any Affiliate of either of them.
The transfer of this VFC Certificate shall be registered in
the Certificate Register upon surrender of this VFC Certificate for
registration of transfer at any office or agency maintained by the Transfer
Agent and Registrar accompanied by a written instrument of transfer, in a form
satisfactory to the Trustee and the Transfer Agent and Registrar, duly
executed by the VFC Certificateholder or the VFC Certificateholder's attorney,
and duly authorized in writing with such signature guaranteed, and thereupon
one or more new VFC Certificates of authorized denominations and of like
aggregate Fractional Undivided Interests will be issued to the designated
transferee or transferees. In addition, the Agent shall maintain at one of its
offices in the City of New York the Register for the recordation of the names
and addresses of the Purchasers, and the Commitment of, and the principal
amount of VFC Certificates issued to, each Purchaser.
It is understood and agreed by the VFC Certificateholder and
the Agent that each will deliver certain United States Internal Revenue
Service forms, including Form 4224, Form W-8 or W-9, as provided in Section
7.03 of the Supplement, and that failure to provide such Forms may entitle the
Servicer and the Trustee to withhold amounts in respect of taxes.
The Company, the Trustee, the Servicer, the Transfer Agent
and Registrar, the Agent and any agent of any of them, may treat the person
whose name is recorded in the Register as a Purchaser for all purposes of the
Supplement, notwithstanding notice to the contrary (other than notice in
connection with an assignment effected or to be effected in accordance with
Section 11.10 of the Supplement).
It is expressly understood and agreed by the Company and the
VFC Certificateholder that (i) the Agreement
<PAGE>
5
Series 1997-A Supplement
is executed and delivered by the Trustee, not individually or personally but
solely as Trustee of the Trust, in the exercise of the powers and authority
conferred and vested in it, (ii) the representations, undertakings and
agreements made on the part of the Trust in the Agreement are made and
intended not as personal representations, undertakings and agreements by the
Trustee, but are made and intended for the purpose of binding only the Trust,
(iii) nothing herein contained shall be construed as creating any liability of
the Trustee, individually or personally, to perform any covenant either
expressed or implied made on the part of the Trust in the Agreement, all such
liability, if any, being expressly waived by the parties who are signatories
to the Agreement and by any Person claiming by, through or under such parties;
provided, however, the Trustee shall be liable in its individual capacity for
its own wilful misconduct or gross negligence and for any tax assessed against
the Trustee based on or measured by any fees, commission or compensation
received by it for acting as Trustee and (iv) under no circumstances shall the
Trustee be personally liable for the payment of any indebtedness or expenses
of the Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under the
Agreement.
The holder of this VFC Certificate is authorized to record
the date and amount of each increase and decrease in the Series 1997-A
Purchaser Invested Amount with respect to such holder on the schedules annexed
hereto and made a part hereof and any such recordation shall constitute prima
facie evidence of the accuracy of the information so recorded, absent manifest
error, provided that the failure of the holder of this VFC Certificate to make
such recordation (or any error in such recordation) shall not affect the
obligations of the Company, the Servicer or the Trustee under the Agreement.
This VFC Certificate shall be construed in accordance with
and governed by the laws of the State of New York without reference to any
conflict of law principles.
By acceptance of this VFC Certificate, the VFC
Certificateholder hereby agrees that, prior to the date which is one year and
one day after the later of (i) the last day of the Series 1997-A Amortization
Period and (ii) the date on which all Investor Certificates of each other
Outstanding Series are repaid in full, it will not institute against, or join
any other Person in instituting against, the Company any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
<PAGE>
6
Series 1997-A Supplement
proceedings under any federal or state bankruptcy or similar law.
Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee, by manual signature, this VFC
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.
IN WITNESS WHEREOF, the Company has caused this VFC
Certificate to be duly executed.
Dated: ___________ , 1997
AAM RECEIVABLES CORP.,
as authorized pursuant to
Section 5.01 of the Pooling
Agreement,
by
------------------------------
Title
<PAGE>
7
Series 1997-A Supplement
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the VFC Certificates described in the
within-mentioned Agreement.
THE CHASE MANHATTAN BANK, not
in its individual capacity but
solely as Trustee,
by
------------------------------
Authorized Signatory
OR
by
------------------------------
Authenticating Agent
by
------------------------------
Authorized Signatory
<PAGE>
Schedule 1
to VFC Certificate
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Increase Decrease
in Series in Series
1997-A 1997-A Series 1997-A
Purchaser Purchaser Purchaser
Invested Invested Invested Notation
Date Amount Amount Amount Made By
==================== ====================== ===================== ========================== =================
</TABLE>
<PAGE>
EXHIBIT B TO SERIES
1997-A SUPPLEMENT
[FORM OF COMMITMENT TRANSFER SUPPLEMENT]
COMMITMENT TRANSFER SUPPLEMENT, dated as of [ , ] among [ ]
(the "Transferor"), each purchaser listed as an Acquiring Purchaser on the
signature pages hereof (each, an "Acquiring Purchaser") and [ ], a [ ]
corporation, as Agent for the Purchasers under the Supplement described below
(in such capacity, the "Agent").
W I T N E S S E T H :
WHEREAS this Commitment Transfer Supplement is being
executed and delivered in accordance with subsection 11.10(b) of the Series
1997-A Supplement, dated as of October 29, 1997 (as from time to time amended,
supplemented or otherwise modified in accordance with the terms thereof, the
"Supplement"; terms defined therein being used herein as therein defined),
among the Company, the Servicer, the Transferor, the other Purchasers from
time to time parties thereto, the Trustee and the Agent, to the Pooling
Agreement among the Company, the Servicer and the Trustee (as the same may be
from time to time amended, supplemented or otherwise modified, the "Pooling
Agreement");
WHEREAS each Acquiring Purchaser (if it is not already a
Purchaser party to the Supplement) wishes to become a Purchaser party to the
Supplement; and
WHEREAS the Transferor is selling and assigning to each
Acquiring Purchaser, rights, obligations and commitments under the Supplement.
NOW, THEREFORE, the parties hereto hereby agree as follows:
1. Upon the execution and delivery of this Commitment
Transfer Supplement by each Acquiring Purchaser, the Transferor and
the Agent (the date of such execution and delivery, the "Transfer
Issuance Date"), each Acquiring Purchaser shall be a Purchaser party
to the Supplement for all purposes thereof.
2. This Commitment Transfer Supplement is being delivered to
the Agent together with (i) if the
<PAGE>
2
Series 1997-A Supplement
Acquiring Purchaser is organized under the laws of a jurisdiction
outside the United States, the forms specified in Section 7.03(f) of
the Supplement, duly completed and executed by such Acquiring
Purchaser, (ii) if the Acquiring Purchaser is not already a Purchaser
under the Supplement, an Administrative Questionnaire in the form of
Exhibit C to the Supplement and (iii) a processing and recordation
fee of $3,500.
3. The Transferor acknowledges receipt from each Acquiring
Purchaser of an amount equal to the purchase price, as agreed between
the Transferor and such Acquiring Purchaser (the "Purchase Price"),
of the portion being purchased by such Acquiring Purchaser (such
Acquiring Purchaser's "Purchased Percentage") of the undivided
interest in the VFC Certificate owned by, and other amounts owing to,
the Transferor under the Supplement. The Transferor hereby
irrevocably sells, assigns and transfers to each Acquiring Purchaser,
without recourse, representation or warranty (except as set forth in
paragraph 8(i) below), and each Acquiring Purchaser hereby
irrevocably purchases, takes and assumes from the Transferor, such
Acquiring Purchaser's Purchased Percentage of the commitment of the
Transferor to increase its VFC Invested Amount under, and the portion
of the undivided interest in, the VFC Certificate, Series 1997-A
owned by, and other amounts owing to, the Transferor, in each case
under the Supplement together with all instruments, documents and
collateral security pertaining thereto.
4. The Transferor has made arrangements with each Acquiring
Purchaser with respect to (i) the portion, if any, to be paid, and
the date or dates for payment, by the Transferor to such Acquiring
Purchaser of any Commitment Fees heretofore received by the
Transferor pursuant to the Supplement prior to the Transfer Issuance
Date and (ii) the portion, if any, to be paid, and the date or dates
for payment, by such Acquiring Purchaser to the Transferor of
Commitment Fees or Series 1997-A Monthly Interest received by such
Acquiring Purchaser pursuant to the Supplement from and after the
Transfer Issuance Date.
5. From and after the Transfer Issuance Date, amounts that
would otherwise by payable to or for the account of the Transferor
pursuant to the Supplement shall, instead, be payable to or for the
account of the Transferor and the Acquiring Purchasers, as the case
<PAGE>
3
Series 1997-A Supplement
may be, in accordance with their respective interests as reflected in
this Commitment Transfer Supplement, whether such amounts have
accrued prior to the Transfer Issuance Date or accrue subsequent to
the Transfer Issuance Date.
6. Prior to or concurrently with the execution and delivery
hereof, the Agent will, at the expense of the Transferor, provide to
each Acquiring Purchaser (if it is not already a Purchaser party to
the Supplement) photocopies of all documents delivered to the Agent
on the Issuance Date in satisfaction of the conditions precedent set
forth in the Supplement.
7. Each of the parties to this Commitment Transfer
Supplement agrees that at any time and from time to time upon the
written request of any other party, it will execute and deliver such
further documents and do such further acts and things as such other
party may reasonably request in order to effect the purposes of this
Commitment Transfer Supplement.
8. By executing and delivering this Commitment Transfer
Supplement, the Transferor and each Acquiring Purchaser confirm to
and agree with each other and the Purchasers as follows: (i) the
Transferor warrants that it is the legal and beneficial owner of the
interest being assigned hereby free and clear of any adverse claim
and that its Commitment, and the outstanding balances of its VFC
Certificates, in each case without giving effect to assignments
thereof which have not become effective, are [ ] and [ ],
respectively; (ii) except as set forth in (i) above, the Transferor
makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in
or in connection with the Supplement, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the
Supplement, any other Transaction Document or any other instrument or
document furnished pursuant hereto or thereto, or the financial
condition of the Seller, the Company or the Servicer, or the
performance or observance by the Seller, the Company or the Servicer
of any of its obligations under the Supplement, any other Transaction
Document or any other instrument or document furnished pursuant
hereto or thereto; (iii) the Acquiring Purchaser represents and
warrants that it is legally authorized to enter into this Commitment
Transfer Supplement; (iv) the Acquiring Purchaser confirms that
<PAGE>
4
Series 1997-A Supplement
it has received a copy of the Supplement, the other Transaction
Documents and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter
into this Commitment Transfer Supplement; (v) the Acquiring Purchaser
will independently and without reliance upon the Agent, the Trustee,
the assigning Purchaser or any other Purchaser and based on such
documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking
action under the Supplement or any other Transaction Document; (vi)
the Acquiring Purchaser appoints and authorizes the Agent and the
Trustee to take such action as agent on its behalf and to exercise
such powers under the Supplement as are delegated to the Agent and
the Trustee, respectively, by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vii) the Acquiring
Purchaser agrees that it will perform in accordance with their terms
all the obligations which by the terms of the Supplement are required
to be performed by it as a Purchaser.
9. The Acquiring Purchaser confirms that, by executing and
delivering this Commitment Transfer Supplement, it shall be deemed to
have made the representations and warranties in Section 8.06 of the
Supplement.
10. Schedule I hereto sets forth the revised Commitment
Percentages of the Transferor and each Acquiring Purchaser as well as
administrative information with respect to each Acquiring Purchaser.
11. This Commitment Transfer Supplement shall be governed
by, and construed in accordance with, the laws
<PAGE>
5
Series 1997-A Supplement
of the State of New York without giving effect to
principles of conflict of laws.
IN WITNESS WHEREOF, the parties hereto have caused this
Commitment Transfer Supplement to be executed by their respective duly
authorized officers as of the date first set forth above.
[NAME OF SELLING PURCHASER],
by
------------------------------
Title
[NAME OF PURCHASING
PURCHASER], as Acquiring
Purchaser,
by
------------------------------
Title
[ ], as
Agent,
by
------------------------------
Title
<PAGE>
6
SCHEDULE I
TO EXHIBIT B
TO Series 1997-A
SUPPLEMENT
----------------
LIST OF ADDRESSES FOR NOTICES
AND OF COMMITMENT PERCENTAGES
[ , as Agent
Address: [ ]
[ ]
Attention of
Telecopier:
[TRANSFEROR]
Address:
Prior Commitment Percentage:
Revised Commitment Percentage:
[ACQUIRING PURCHASER]
Address:
[Prior] Commitment Percentage:
[Revised Commitment Percentage:]
<PAGE>
1
EXHIBIT C TO SERIES
1997-A SUPPLEMENT
[Form of]
[ ]
ADMINISTRATIVE QUESTIONNAIRE
Please accurately complete the following information and return via Telecopy
to the attention of [ ] at [ ] as soon as possible,
at Telecopy
No. ( ) [ ].
- -------------------------------------------------------------------------------
PURCHASER LEGAL NAME TO APPEAR IN DOCUMENTATION: ______________________________
GENERAL INFORMATION:
Institution Name: ______________________________________________________________
Street Address: ________________________________________________________________
City, State, Zip Code: _________________________________________________________
POST-CLOSING, ONGOING CREDIT CONTACTS/NOTIFICATION METHODS:
CREDIT CONTACTS:
Primary Contact: _______________________________________________________________
Street Address: ________________________________________________________________
City, State, Zip Code: _________________________________________________________
Phone Number: __________________________________________________________________
Telecopy Number: _______________________________________________________________
Backup Contact: ________________________________________________________________
Street Address: ________________________________________________________________
City, State, Zip Code: _________________________________________________________
Phone Number: __________________________________________________________________
Telecopy Number: _______________________________________________________________
<PAGE>
2
Series 1997-A Supplement
TAX WITHHOLDING:
Nonresident Alien ____________________ Y* _______________________ N
* Form 4224 Enclosed
Tax ID Number _________________________
POST-CLOSING, ONGOING ADMINISTRATIVE CONTACTS/NOTIFICATION METHODS:
ADMINISTRATIVE CONTACTS - PAYMENTS, FEES, ETC.
Contact: _______________________________________________________________________
Street Address: ________________________________________________________________
City, State, Zip Code: _________________________________________________________
Phone Number: __________________________________________________________________
Telecopy Number: _______________________________________________________________
PAYMENT INSTRUCTIONS:
Name of Bank to which funds are to be transferred:
________________________________________________________________________________
Routing Transit/ABA number of Bank to which funds are to be transferred:
________________________________________________________________________________
Name of Account, if applicable:
________________________________________________________________________________
Account Number: ________________________________________________________________
Additional information: ________________________________________________________
It is very important that all the above information be accurately completed
and that this questionnaire be returned
<PAGE>
3
Series 1997-A Supplement
to the person specified in the introductory paragraph of this questionnaire as
soon as possible. If there is someone other than yourself who should receive
this questionnaire, please notify us of that person's name and telecopy number
and we will telecopy a copy of the questionnaire. If you have any questions
about this form, please call [ ] at ( ) [ ].
<PAGE>
1
EXHIBIT F TO SERIES
1997-A SUPPLEMENT
FORM OF ISSUANCE/INCREASE NOTICE
________, 199__
[Agent/Address of Agent]
Telecopier:
Attention:
Ladies and Gentlemen:
Reference is hereby made to the Series 1997-A Supplement,
dated as of October 29, 1997 (as amended or supplemented, the "Supplement"),
among AAM Receivables Corp. (the "Company"), American Axle & Manufacturing,
Inc. (the "Servicer"), the purchasers named therein and from time to time
party thereto, The Chase Manhattan Bank, as Agent and Initial Purchaser, and
The Chase Manhattan Bank, as Trustee. Capitalized terms used in this Notice
and not otherwise defined herein shall have the meanings assigned thereto in
the Supplement.
This Notice constitutes the notice required in connection
with [the initial issuance] [any Increase] pursuant to subsection 2.05(a) of
the Supplement.
The [Servicer] [Company] hereby requests [a purchase in
respect of the initial issuance of Investor Certificates] [an Increase] be
made by the Purchasers on ______, ___ in the aggregate amount of $_______,
such [purchase] [Increase] to be allocated to a [Floating Tranche] [Eurodollar
Tranche with a [Eurodollar Period of one month] or [NIBO Period of [one] [two]
[three] weeks]].
The [Servicer] [Company] hereby represents and
warrants, as of the date of such [purchase] [Increase] after
<PAGE>
2
giving effect thereto, that the conditions set forth in subsections 2.05(a)
and (b) of the Supplement with respect to such [purchase] [Increase] have been
satisfied.
IN WITNESS WHEREOF, the undersigned has caused this Notice
to be executed by its duly authorized officer as of the date first above
written.
[AMERICAN AXLE & MANUFACTURING,
INC., as Servicer] [AAM
RECEIVABLES CORP.]
By:___________________________
Name:
Title:
<PAGE>
1
EXHIBIT G TO SERIES
1997-A SUPPLEMENT
PARTICIPATION CERTIFICATION
AAM Receivables Corp.
1840 Holbrook Avenue
Detroit, MI 48212
The Chase Manhattan Bank
270 Park Avenue
New York, New York 10017
Ladies and Gentlemen:
In connection with out proposed entrance into a
participation in respect of the VFC Certificate held by [insert name of
Purchaser] (the "Participation") and pursuant to Section 11.10(f) of the AAM
Master Trust Series 1997-A Supplement (the "Supplement") to the Pooling
Agreement (the "Agreement"), dated as of October 29, 1997, among AAM
Receivables Corp. (the "Company"), American Axle & Manufacturing, Inc., as
Servicer, and The Chase Manhattan Bank, as Trustee, we confirm that:
1. Certain terms of the Participation are as
follows:
(a) The effective date of the Participation
is _______________ .
(b) The expected maturity date of the
Participation is ________________ .
(c) The aggregate principal amount of the VFC
Certification being participated is
$ ____________ .
2. We are not a trust, estate, partnership, or "S
Corporation" (within the meaning of Section 1361(a) of the Code) for United
States federal income tax purposes, or if we are such an entity, the value of
our interest in the VFC Certificates is less than 50% of the total value of
all our assets.
3. We have acquired the Participation described herein for
our own account and we are and will remain the sole beneficial owner of such
Participation, or any interest therein, at all times.
<PAGE>
2
4. We understand that we may not at any time grant any
participation or other interest in the Participation or otherwise subdivide
our interest therein, and we further understand that the Participation is not
transferable unless we obtain the prior written consent of the Company and the
Trustee and that we may not sell, assign, trade, pledge or otherwise transfer
the Participation except in accordance with and to the extent permitted under
Section 11.10 of the Supplement.
5. We have neither acquired nor will we sell, trade or
transfer any interest in the Participation, the VFC Certificate or the
Supplement or cause an interest in the Participation, VFC Certificate or the
Supplement to be marketed on or through an "established securities market"
within the meaning of Section 7704(b)(1) of the Code (and Treasury regulations
promulgated thereunder) including, without limitation, an over-the-counter or
an interdealer quotation system that regularly disseminates firm buy or sell
quotations. We are aware that counsel's opinion to the effect that the Trust
will not be treated as a publicly traded partnership taxable as a corporation
is dependent in part on the accuracy of the preceding sentence.
All capitalized terms used but not defined herein shall have
the meanings ascribed to such terms in the Supplement or the Agreement, as the
case may be.
You are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.
Very truly yours
[PARTICIPANT]
By:
------------------------------
Name:
Title:
<PAGE>
1
EXHIBIT H TO SERIES
1997-A SUPPLEMENT
Form of Confidentiality Agreement
(Telecopy to [ ] at - )
[Name of assignor Purchaser]
Ladies and Gentlemen:
You are prepared to furnish to the undersigned [describe
information to be provided]. The [described information] and any other
materials, documents and information which you, the Seller, the Servicer, the
Company and the Trustee, on behalf of the Trust, or any of your or their
respective affiliates may furnish to us in connection with our evaluation of a
possible assignment or participation are collectively called the
"Information". Terms used herein that are not otherwise defined herein shall
have the meaning ascribed to such terms in the Pooling Agreement, dated as of
October 29, 1997 among American Axle & Manufacturing, Inc., AAM Receivables
Corp. and The Chase Manhattan Bank, as Trustee.
We agree to keep confidential, and to not publish, disclose
or otherwise divulge, the Information (and to cause our officers, directors,
employees, agents and representatives to keep confidential, and to not
publish, disclose or otherwise divulge, the Information) and, at your, the
Seller's, the Servicer's, the Company's or the Trustee's request (except as
provided below), promptly to return to you, the Seller, the Servicer, the
Company or the Trustee (as applicable), or destroy, the Information and all
copies thereof, extracts therefrom and analyses or other materials based
thereon, except that we shall be permitted to disclose Information (i) to such
of our officers, directors, employees, agents and representatives as need to
know such Information in connection with our evaluation of a possible
assignment or participation (who will be informed of the confidential nature
of the Information); (ii) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, or requested by any
bank regulatory authority (in any which event we will notify you, the Seller,
the Servicer, the Company or the Trustee to the extent not prohibited by
applicable law); (iii) to the extent such Information (A) becomes publicly
available other than as a result of a
<PAGE>
2
breach of this agreement, (B) becomes available to us on a non-confidential
basis from a source other than you, the Seller, the Servicer, the Company or
the Trustee or any of your Affiliates or (C) was available to us on a non-
confidential basis prior to its disclosure to us by you; (iv) to the extent
you, the Seller, the Servicer, the Company and the Trustee shall have
consented to such disclosure in writing; or (v) pursuant to the last paragraph
of this letter.
We further agree that we will use the Information (except to
the extent the conditions referred to in subclauses (A), (B) and (C) of clause
(iii) above have been met and as provided in the last paragraph of this
letter) only to evaluate a possible assignment or participation.
We further agree, in the event we participate in an
assignment or participation, that we will not disclose any of the Information
to any assignee or participant or proposed assignee or participant unless and
until such assignee or participant or proposed assignee or participant first
executes and delivers to you a letter substantially in the form hereof.
Our obligations under this letter are for the benefit of
you, the Seller, the Servicer, the Company and the Trustee and your and their
Affiliates and you and each of them may pursue remedies against us for the
breach hereof, either in equity or at law.
Notwithstanding anything to the contrary contained above if
we participate in an assignment or participation, we will be entitled to
retain all Information and to use it in monitoring our investment and in
exercising our rights with respect thereto. This agreement shall be governed
by the laws of the State of New York.
Name of Recipient:
by:
-----------------------------
Authorized Officer
------------------------------
[Name of Assignee/Participant/
Proposed Assignee/Proposed
Participant]
<PAGE>
3
Schedule 1 to the
Series 1997-A Supplement
COMMITMENTS
Purchaser Commitment
The Chase Manhattan Bank $125,000,000
270 Park Avenue
New York, NY 10017
<PAGE>
4
Schedule 2 to the
Series 1997-A Supplement
Trust Accounts
Account Account Number
AAM Collection Account 507-831454
AAM Company Collection Sub-Account 507-830555
AAM 97-A Collection Subaccount 507-831462
AAM 97-A Principal Collection Sub- 507-831470
subaccount
AAM 97-A Non-Principal Collection Sub- 507-831497
subaccount
AAM 97-A Accrued Interest Sub- 507-831578
subaccount
<PAGE>
EXECUTION COPY
Exhibit 10.17
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RECEIVABLES SALE AGREEMENT
Between
AAM RECEIVABLES CORP.,
as Company
and
AMERICAN AXLE & MANUFACTURING, INC.
as Seller and Servicer
Dated as of October 29, 1997
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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TABLE OF CONTENTS
ARTICLE I
Definitions
SECTION 1.01. Defined Terms.............................................................................1
SECTION 1.02. Other Definitional Provisions.............................................................7
ARTICLE II
Purchase and Sale of Receivables
SECTION 2.01. Purchase and Sale of Receivables......................................................... 8
SECTION 2.02. Purchase Price...........................................................................13
SECTION 2.03. Payment of Purchase Price................................................................13
SECTION 2.04. No Repurchase............................................................................15
SECTION 2.05. Rebates, Adjustments, Returns,
Reductions and Modifications...............................................15
SECTION 2.06. Seller Repurchase Payments...............................................................15
SECTION 2.07. Certain Charges..........................................................................17
SECTION 2.08. Certain Allocations......................................................................17
SECTION 2.09. Further Assurances.......................................................................17
SECTION 2.10. GMT/PPAP Rejection Period................................................................18
ARTICLE III
Conditions to Purchase and Sale
SECTION 3.01. Conditions Precedent to the
Company's Purchase of Receivables
on the Effective Date......................................................18
SECTION 3.02. Conditions Precedent to All the
Company's Purchases of Receivables.........................................20
SECTION 3.03. Conditions Precedent to the Seller's
Obligations on the Effective Date..........................................21
SECTION 3.04. Conditions Precedent to All the
Seller's Obligations.......................................................21
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ARTICLE IV
Representations and Warranties
SECTION 4.01. Representations and Warranties of
the Seller Relating to Itself..............................................22
SECTION 4.02. Representations and Warranties of
the Seller Relating to the
Receivables................................................................27
SECTION 4.03. Representations and Warranties of
the Company................................................................28
ARTICLE V
Affirmative Covenants
SECTION 5.01. Certificates; Other Information..........................................................30
SECTION 5.02. Compliance with Law and Policies.........................................................31
SECTION 5.03. Preservation of Corporate Existence......................................................31
SECTION 5.04. Separate Corporate Existence.............................................................31
SECTION 5.05. Maintaining Records; Access to
Properties and Inspections.................................................32
SECTION 5.06. Location of Records......................................................................33
SECTION 5.07. Computer Files...........................................................................33
SECTION 5.08. Payment of and Compliance with
Obligations................................................................33
SECTION 5.09. Collections..............................................................................34
SECTION 5.10. Furnishing Copies, Etc...................................................................34
SECTION 5.11. Obligations with Respect to Obligors
and Receivables............................................................35
SECTION 5.12. Responsibilities of the Seller...........................................................35
SECTION 5.13. Assessments..............................................................................35
SECTION 5.14. Further Action...........................................................................36
SECTION 5.15. Sale of Receivables......................................................................37
SECTION 5.16. GMT/PPAP Rejection Period................................................................37
ARTICLE VI
Negative Covenants
SECTION 6.01. Limitations on Transfers of
Receivables, Etc...........................................................37
SECTION 6.02. Extension or Amendment of Receivables....................................................37
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SECTION 6.03. Change in Payment Instructions to
Obligors...................................................................38
SECTION 6.04. Change in Name...........................................................................38
SECTION 6.05. Policies.................................................................................38
SECTION 6.06. Modification of Ledger...................................................................39
SECTION 6.07. Accounting for Purchases.................................................................39
SECTION 6.08. Instruments..............................................................................39
SECTION 6.09. Ineligible Receivables...................................................................39
SECTION 6.10. Business of the Seller...................................................................40
SECTION 6.11. Limitation on Fundamental Changes........................................................40
SECTION 6.12. Amendment of GM Agreements...............................................................40
ARTICLE VII
Purchase Termination Events
SECTION 7.01. Purchase Termination Events..............................................................40
SECTION 7.02. Remedies.................................................................................44
ARTICLE VIII
Seller Note
SECTION 8.01. Seller Note..............................................................................45
SECTION 8.02. Restrictions on Transfer of Seller
Note.......................................................................46
SECTION 8.03. Discretion; Aggregate Amount.............................................................46
ARTICLE IX
Miscellaneous
SECTION 9.01. Payments.................................................................................47
SECTION 9.02. Costs and Expenses.......................................................................47
SECTION 9.03. Successors and Assigns...................................................................48
SECTION 9.04. Governing Law............................................................................49
SECTION 9.05. No Waiver; Cumulative Remedies...........................................................49
SECTION 9.06. Amendments and Waivers...................................................................49
SECTION 9.07. Severability.............................................................................49
SECTION 9.08. Notices..................................................................................50
SECTION 9.09. Counterparts.............................................................................50
SECTION 9.10. Waivers of Jury Trial....................................................................50
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SECTION 9.11. Jurisdiction; Consent to Service
of Process.................................................................51
SECTION 9.12. Integration..............................................................................52
SECTION 9.13. No Bankruptcy Petition...................................................................52
SECTION 9.14. Termination..............................................................................52
SECTION 9.15. Construction of Agreement................................................................53
Exhibit A Form of Seller Note
SCHEDULES
Schedule 1 Receivables
Schedule 2 Lockboxes
Schedule 3 Chief Executive Office
Schedule 4 Names
Schedule 5 Discounted Percentage
<PAGE>
RECEIVABLES SALE AGREEMENT dated as of
October 29, 1997 (this "Agreement"), between
AMERICAN AXLE & MANUFACTURING, INC., a Delaware
corporation, as seller (in such capacity, the
"Seller") and as servicer (in such capacity, the
"Servicer") and AAM RECEIVABLES CORP., a Delaware
corporation (the "Company").
W I T N E S S E T H :
WHEREAS in the ordinary course of business, the Seller
generates Receivables (such term and all other capitalized terms being defined
or referenced in Article I);
WHEREAS the Seller is willing to sell to the Company, and
the Company is willing to purchase from the Seller, all of the Seller's right,
title and interest in, to and under the Receivables then existing and
thereafter created and all other Receivable Assets;
WHEREAS, the Seller and the Company desire the sale of
Receivables and Receivable Assets rom the Seller to the Company to be a true
sale providing the company with the full benefits of ownership and of the
Receivables; and
WHEREAS, the Servicer, the Company and The Chase Manhattan
Bank, as Trustee, have entered into a Pooling Agreement dated as of the date
hereof (such agreement, as it may be amended, modified or otherwise
supplemented from time to time, being the "Pooling Agreement") in order to
create a master trust into which the Company will transfer all its right,
title and interest in, to and under the Receivables and certain other assets
then or hereafter owned by the Company.
NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, the parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Defined Terms. Capitalized terms
defined or referenced in the Pooling Agreement shall be used
<PAGE>
2
Receivables Sale Agreement
herein as therein defined (unless otherwise defined or referenced herein), and
the following terms shall have the following meanings:
"Adjustment Amount" shall have the meaning specified in
subsection 2.06(a).
"Applicable Insolvency Laws" shall have the meaning specified
in subsection 7.01(d).
"Collections" shall mean all collections and all amounts
received in respect of the Receivables assigned to the Company, including
Recoveries, Adjustment Payments, indemnification payments made by the Servicer
and payments received in respect of Dilution Adjustments, together with all
collections received in respect of the Related Property in the form of cash,
checks, wire transfers or any other form of cash payment, and all proceeds of
Receivables and collections thereof (including, without limitation,
collections evidenced by an account, note, instrument, letter of credit,
security, contract, security agreement, chattel paper, general intangible or
other evidence of indebtedness or security, whatever is received upon the
sale, exchange, collection or other disposition of, or any indemnity, warranty
or guaranty payable in respect of, the foregoing and all "proceeds" as defined
in Section 9-306 of the UCC as in effect in the State of New York).
"Credit Agreement" shall mean the Credit Agreement dated as of
October 27, 1997, among American Axle & Manufacturing of Michigan, Inc., the
Seller, the lenders named therein, The Chase Manhattan Bank, as Administrative
Agent and Collateral Agent, and Chase Manhattan Bank of Delaware, as Fronting
Bank (including any amendments or modifications thereto or refinancing thereof).
"Cut-Off Date" shall mean the close of business on October 24,
1997.
"Discounted Percentage" shall have the meaning specified in
Schedule 6.
"Documents" shall have the meaning specified in subsection
7.02(b)(iii).
<PAGE>
3
Receivables Sale Agreement
"Early Termination" shall have the meaning specified in
Article VII.
"Effective Date" shall mean October 29, 1997.
"ERISA Affiliate" shall mean with respect to any Person, any
trade or business (whether or not incorporated) that is a member of a group of
which such Person is a member and which is treated as a single employer under
Section 414 of the Internal Revenue Code.
"GM Agreements" shall mean (i) the Component Supply
Agreement, as amended, dated as of February 29, 1994, between the Seller and
General Motors Corporation, (ii) the GMCL Purchase Order Agreement, as
amended, dated as of February 17, 1994, and effective on March 1, 1994,
between the Seller and General Motors of Canada Limited ("GMCL"), (iii) the
Amended and Restated Memorandum of Understanding dated as of September 22,
1997, as amended pursuant to an Extension Agreement dated as of September 22,
1997 between the Seller and General Motors Corporation, (iv) the letter
agreement, dated as of February 20, 1996, between the Seller and General
Motors Corporation and (v) any agreements entered into between the Seller and
General Motors or GMCL succeeding or replacing the agreements in clauses (i)
and (ii), including "Lifetime Program Contracts".
"Ineligibility Event" shall have the meaning specified in
subsection 2.06.
"Ineligible Receivable" shall have the meaning specified in
subsection 2.06.
"Insolvency Event" with respect to the Seller, shall mean the
occurrence of any one or more of the Purchase Termination Events specified in
subsection 7.01(d).
"Multiemployer Plan" shall mean with respect to any Person,
a multiemployer plan as defined in Section 4001(a)(3) of ERISA to which such
Person or any ERISA Affiliate of such Person (other than one considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414 of the
Internal Revenue Code) is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years made or
accrued an obligation to make contributions.
<PAGE>
4
Receivables Sale Agreement
"Payment Date" shall have the meaning specified in subsection
2.03(a).
"PBGC" shall mean the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA, or any successor
thereto.
"Plan" shall mean, with respect to any Person, any pension
plan (other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Internal Revenue Code which is maintained for
employees of such Person or any ERISA Affiliate of such Person.
"Pooling Agreement" shall have the meaning specified in the
recitals hereto.
"Potential Purchase Termination Event" shall mean any
condition or act specified in Article VII that, with the giving of notice or the
lapse of time or both, would become a Purchase Termination Event.
"Purchase Price" shall have the meaning specified in Section
2.02.
"Purchase Termination Event" shall have the meaning specified
in Section 7.01.
"Purchased Receivable" shall mean, at any time, any Receivable
sold to the Company by the Seller pursuant to, and in accordance with the terms
of, this Agreement.
"Receivable" shall mean the indebtedness and payment
obligations of any Person to the Seller (including, without limitation,
obligations constituting an account or general intangible or evidenced by a
note, instrument, contract, security agreement, chattel paper or other
evidence of indebtedness or security and whether or not any invoice or other
bill has been rendered by the Seller or any other Person) arising from (x) a
sale of merchandise or services by the Seller (including, without limitation,
any right to payment for goods sold or for services rendered), (y) an
obligation of any Person to provide rebates to the Seller with respect to, or
to reimburse the Seller for, a portion of the costs of materials and parts to
be used in the manufacturing of products for such Person or its affiliates, or
(z) an obligation of any Person to pay for
<PAGE>
5
Receivables Sale Agreement
tooling or equipment purchased or built by the Seller for the purpose of
manufacturing products for such Person, including the right to payment of any
interest, sales taxes, finance charges, returned check or late charges and
other obligations of such Person with respect thereto; provided that any
Tooling Receivable that is not generated as part of the GMT 800 program or any
other program providing for periodic payments to the Seller shall not
constitute a "Receivable" until the Production Part Approval Process (PPAP)
has been completed with respect to the tooling giving rise to such Tooling
Receivable; provided further that in no event shall any intercompany or
intracompany obligation owed to the Seller by any of its Subsidiaries,
divisions or other operating units constitute a "Receivable".
"Receivable Assets" shall have the meaning specified in
subsection 2.01(a).
"Reference Rate" shall mean, for any day, a rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of
(a) the Prime Rate in effect on such day and (b) the Federal Funds Effective
Rate in effect on such day plus 1/2 of 1%. If The Chase Manhattan Bank shall
have determined (which determination shall be conclusive absent manifest error)
that it is unable to ascertain the Federal Funds Effective Rate for any reason,
including the failure of the Federal Reserve Bank of New York to publish rates
or the inability of The Chase Manhattan Bank to obtain quotations in accordance
with the terms of the definition thereof, the Reference Rate shall be determined
without regard to clause (b) of the immediately preceding sentence, as
appropriate, until the circumstances giving rise to such inability no longer
exist. Any change in the Reference Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective on the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively. The
term "Prime Rate" shall mean the rate of interest per annum publicly announced
from time to time by The Chase Manhattan Bank as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective on the date such change is publicly announced as being effective. The
term "Federal Funds Effective Rate" shall mean, for any day, the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as
<PAGE>
6
Receivables Sale Agreement
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a Business
Day, the average of the quotations for the day for such transactions received
by The Chase Manhattan Bank from three Federal funds brokers of recognized
standing selected by it.
"Related Property" shall mean, with respect to each
Receivable:
(a) all of the Seller's interest in the goods
(including returned goods), if any, relating to the sale
which gave rise to such Receivable;
(b) all other security interests or Liens, and the
Seller's interest in the property subject thereto, from time
to time purporting to secure payment of such Receivable,
whether pursuant to the contract related to such Receivable
or otherwise, together with all financing statements signed
by an Obligor describing any collateral securing such
Receivable; and
(c) all guarantees, insurance, letters of credit
and other agreements or arrangements of whatever character
from time to time supporting or securing payment of such
Receivable whether pursuant to the contract related to such
Receivable or otherwise;
including in the case of clauses (b) and (c), without limitation,
pursuant to any obligations evidenced by a note, instrument,
contract, security agreement, chattel paper or other evidence of
indebtedness or security.
"Reportable Event" shall mean any reportable event
as defined in Section 4043(b) of ERISA or the regulations issued
thereunder with respect to a Plan (other than a Plan maintained by an
ERISA Affiliate which is considered an ERISA Affiliate only pursuant
to subsection (m) or (o) of Section 414 of the Internal Revenue
Code).
"Sale Documents" shall mean this Agreement
and the Seller Note.
<PAGE>
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Receivables Sale Agreement
"Sale Termination Date" shall have the
meaning specified in subsection 9.13(b).
"Seller" shall have the meaning specified in
the recitals hereto.
"Seller Dilution Adjustment Payment" shall
have the meaning specified in Section 2.05.
"Seller Note" shall have the meaning
specified in Section 8.01.
"Seller Repurchase Payment" shall have the
meaning specified in subsection 2.06.
"Tooling Receivable" shall mean any
Receivable described in clause (z) of the definition
thereof.
"Transactions" shall have the meaning
specified in subsection 4.01(b).
"Withdrawal Liability" shall mean liability to a
Multiemployer Plan as a result of a complete or partial withdrawal
from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.
SECTION 1.02. Other Definitional Provisions. (a)
The words "hereof", "herein", "hereunder" and words of similar import
when used in this Agreement shall refer to this Agreement as a whole
and not to any particular provision of this Agreement, and article,
section, subsection, schedule and exhibit references are to this
Agreement unless otherwise specified.
(b) As used herein and in any certificate or other
document made or delivered pursuant hereto, accounting terms relating
to the Seller and the Company, unless otherwise defined herein, shall
have the respective meanings given to them under GAAP.
(c) The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of
such terms.
<PAGE>
8
Receivables Sale Agreement
(d) Any reference herein to a Schedule or Exhibit
to this Agreement shall be deemed to be a reference to such Schedule
or Exhibit as it may be amended, modified or supplemented from time
to time to the extent that such Schedule or Exhibit may be amended,
modified or supplemented (or any term or provision of any Transaction
Document may be amended that would have the effect of amending,
modifying or supplementing information contained in such Schedule or
Exhibit) in compliance with the terms of the Transaction Documents.
(e) Any reference in this Agreement to any
representation, warranty or covenant "deemed" to have been made is
intended to encompass only representations, warranties or covenants
that are expressly stated to be repeated on or as of dates following
the execution and delivery of this Agreement, and no such reference
shall be interpreted as a reference to any implicit, inferred, tacit
or otherwise unexpressed representation, warranty or covenant.
(f) The words "include", "includes" or "including"
shall be interpreted as if followed, in each case, by the phrase
"without limitation".
ARTICLE II
Purchase and Sale of Receivables
SECTION 2.01. Purchase and Sale of Receivables. (a)
The Seller hereby sells, transfers, assigns, and conveys, without
recourse (except as expressly provided herein), to the Company, all
its present and future right, title and interest in, to and under:
(i) all Receivables, including those existing at the
close of business on the Effective Date and all such Receivables
thereafter arising from time to time until but not including the
date an Early Termination occurs;
(ii) the Related Property;
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9
Receivables Sale Agreement
(iii) all Collections;
(iv) all rights (including rescission,
replevin or reclamation) relating to any
Receivable or arising therefrom;
(v) all proceeds of or payments in respect of any and
all of the foregoing clauses (i) through (iv) (including
Collections).
Such property described in the foregoing clauses (i) through (v)
shall be referred to herein as the "Receivable Assets".
(b) On the Effective Date and on the date of
creation of each newly created Receivable (but only so long as no
Early Termination shall have occurred and be continuing), all of the
Seller's right, title and interest in and to (i) in the case of the
Effective Date, all then existing Receivables and all other
Receivable Assets in respect of such Receivables and (ii) in the case
of each such date of creation, all such newly created Receivables and
all other Receivable Assets in respect of such Receivables shall be
considered to be part of the assets that have been sold, transferred,
assigned, set over and otherwise conveyed to the Company pursuant to
paragraph (a) above without any further action by the Seller or any
other Person. Anything herein to the contrary notwith standing, to
the extent the Seller shall not have received payment from the
Company of the Purchase Price for any Receivable and other related
Receivable Assets in accordance with the terms of Section 2.03, such
Receivable and Receivable Assets shall, upon receipt of notice from
the Seller of such failure to receive payment, immediately and
automatically be sold, assigned, transferred and reconveyed by the
Company to the Seller without any further action by the Company or
any other Person.
(c) The parties to this Agreement intend that, for
accounting and commercial purposes, the transactions contemplated by
Section 2.01 hereby shall be, and shall be treated as, a purchase by
the Company and a sale by the Seller of the Purchased Receivables and
other Receivable Assets and not a lending trans-
<PAGE>
10
Receivables Sale Agreement
action. All sales of Receivables and other Receivable Assets by the
Seller hereunder shall be without recourse to, or representation or
warranty of any kind (express or implied) by, the Seller, except as
other wise specifically provided herein. The foregoing sale,
assignment, transfer and conveyance does not constitute and is not
intended to result in the creation or assumption by the Company of any
obligation of the Seller or any other Person in connection with the
Receivables, the other Receivable Assets or any agreement or instrument
relating thereto, including any obligation to any Obligor. Although it
is the intent of the parties to this Agreement that the conveyance of
the Seller's right, title and interest in, to and under the Receivables
and other Receivable Assets pursuant to this Agreement shall constitute
purchases and sales and not loans, in the event that any such
conveyance is deemed to be a loan, it is the intent of the parties to
this Agreement that the Seller hereby grants to the Company a security
interest (as defined in the UCC as in effect in the States of New York
and Michigan) in all of the Seller's present and future right, title
and interest in, to and under the Receivables, the Related Property,
all Collections, all rights (including rescission, replevin or
reclamation) relating to any Receivable or arising therefrom and all
proceeds or payments in respect of any of the foregoing (it is
understood and agreed that the parties intend that such security
interest shall be perfected and first priority upon the filing of UCC-1
financing statements with the appropriate authorities) and that this
Agreement shall constitute a security agreement under applicable law in
favor of the Company.
(d) In connection with the foregoing conveyances,
the Seller agrees to record and file, or cause to be recorded and
filed, at its own expense, financing statements (and continuation
statements with respect to such financing statements when
applicable), (i) with respect to the Receivables now existing and
hereafter acquired pursuant to this Agreement by the Company from the
Seller and (ii) with respect to any other Receivable Assets for which
a security interest may be perfected under the relevant UCC,
legislation or similar statute by such filing, in each case meeting
the requirements of applicable law in such manner and
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Receivables Sale Agreement
in such jurisdictions as are necessary to perfect and maintain
perfection of the conveyance of such Receivables and any other
Receivable Assets to the Company, and to deliver to the Company no
later than 10 days after the Effective Date (i) where available, a
file-stamped copy or certified statement of such financing statement
or other evidence of such filing and (ii) otherwise, a photocopy,
certified by a Responsible Officer to be a true and correct copy, of
each such financing statement or other filing made no later than 10
days after the Effective Date.
(e) In connection with the foregoing sales,
transfers, assignments and conveyances, the Seller agrees at its own
expense, no later than 30 days after the Effective Date with respect
to the Receivables and any other similar receivables that it will, as
agent of the Company, (i) indicate or cause to be indicated on the
computer files (but not on individual invoices or individual
collection files) relating to such Receivables and any such other
receivables (by means of a general legend that will automatically
appear at or near the beginning of any screen, list or print-out of
such Receivables) that, unless otherwise specifically identified on
such screen, list or print-out as a receivable not so sold,
transferred, assigned and conveyed, all Receivables (and any such
other receivables) included in such screen, list or print-out and all
other Receivable Assets (and any other similar related property) have
been sold, transferred, assigned and conveyed to the Company in
accordance with this Agreement and (ii) deliver or transmit or cause
to be delivered or transmitted to the Company a computer tape,
diskette or data transmission containing at least the information
specified in Schedule 1 as to all such Receivables, as of a date no
later than the Cut-Off Date.
(f) As further confirmation of the sale of the
Receivables, but subject to Section 7.02, it is understood and agreed
that the Company shall have the following rights:
(i) the Company (and its assignees) shall have the
right at any time to notify, or require that the Seller at
its own expense notify, the
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12
Receivables Sale Agreement
respective Obligors of the Company's ownership of the
Purchased Receivables and other Receivable Assets and may
direct that payment of all amounts due or to become due
under the Purchased Receivables be made directly to the
Company or its designee;
(ii) the Company (and its assignees) shall have the
right to (A) sue for collection on any Purchased Receivables
or (B) sell any Purchased Receivables to any Person for a
price that is acceptable to the Company.
(iii) the Seller shall, upon the Company's written
request and at the Seller's expense, (A) assemble all of the
Seller's documents, instruments and other records (including
credit files and computer tapes or disks) that (1) evidence
or will evidence or record Receivables sold by the Seller
and (2) are other wise necessary or desirable to effect
Collections of such Purchased Receivables (collectively, the
"Documents") and (B) deliver the Documents to the Company or
its designee at a place designated by the Company. In
recognition of the Seller's need to have access to any
Documents which may be transferred to the Company hereunder,
whether as a result of its continuing business relationship
with any Obligor for Receivables purchased here under or as
a result of its responsibilities as a Servicer, the Company
hereby grants to the Seller an irrevocable license to access
the Documents transferred by the Seller to the Company and
to access any such transferred computer software in
connection with any activity arising in the ordinary course
of the Seller's business or in performance of the Seller's
duties as a Servicer; provided that the Seller shall not
disrupt or otherwise interfere with the Company's use of and
access to the Documents and its computer software during
such license period;
(iv) the Seller hereby grants to the Company an
irrevocable power of attorney (coupled with an interest) to
take any and all steps in the Seller's name necessary or
desirable, in the
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13
Receivables Sale Agreement
reasonable opinion of the Company, to collect all amounts
due under the Purchased Receivables, including, without
limitation, enforcing the Purchased Receivables and
exercising all rights and remedies in respect thereof and
(without regard to the limitation set forth in subsection
7.02(b)) endorsing the Seller's name on checks and other
instruments representing Collections; and
(v) upon written request of the Company, the Seller
will (A) deliver to the Company all licenses, rights,
computer programs, related material, computer tapes, disks,
cassettes and data necessary for the immediate collection of
the Purchased Receivables by the Company, with or without
the participation of the Seller (excluding software licenses
which by their terms are not permitted to be so delivered;
provided that the Seller shall use reasonable efforts to
obtain the consent of the relevant licensor to such
delivery) and (B) make such arrangements with respect to the
collection of the Purchased Receivables as may be reasonably
required by the Company.
SECTION 2.02. Purchase Price. The aggregate
purchase price payable by the Company to the Seller (the "Purchase
Price") for Receivables and other Receivable Assets on any Payment
Date under this Agreement shall be equal to the product of (a) the
aggregate outstanding Principal Amount of Receivables as set forth in
the applicable Daily Report created since the previous Daily Report
and (b) the Discounted Percentage then in effect.
SECTION 2.03. Payment of Purchase Price. (a) The
Company shall pay or provide for the Purchase Price for Receivables
and other Receivable Assets (net of the deductions referred to in
Section 2.03(d)) in the manner provided below on each day for which
Daily Reports are prepared and delivered to the Company (each such
day, a "Payment Date").
(b) The Purchase Price (net of the
deductions referred to in Section 2.03(d)) shall be
paid by the Company to the Seller or to such accounts
<PAGE>
14
Receivables Sale Agreement
or such Persons as the Seller may direct in writing (which direction
may consist of standing instructions provided by the Seller that
shall remain in effect until changed by the Seller in writing), on
each Payment Date as follows:
(i) to the extent available for such purpose, in cash
from the net proceeds of a transfer of such Purchased
Receivables by the Company to other Persons (including the
Trustee pursuant to the Pooling Agreement);
(ii) to the extent available for such purpose, in
cash from Collections received by the Company from other Persons
(including from the Trustee pursuant to the Pooling Agreement
and any Supplement thereto);
(iii) at the option of the Company (subject to the provisions
of Sections 8.03), by incurring Indebtedness to the Seller
evidenced by the Seller Note; and
(iv) in cash from the proceeds of capital contributed
by the Seller to the Company, if any, in respect of its equity
interest in the Company.
(c) Any increase in the principal amount of the
Seller Note, in payment of any Purchase Price pursuant to Section
2.03(b), shall be applied to the Purchase Price in an amount equal to
such increase.
(d) The Company shall deduct from the Purchase
Price otherwise payable to the Seller on any Payment Date, any
outstanding Seller Dilution Adjustment Payments and Seller Repurchase
Payments pursuant to Section 2.05, and 2.06, respectively.
(e) All cash payments under this Agreement shall be
made not later than 3:30 p.m. (New York City time) on the date
specified therefor in same day funds.
(f) Whenever any payment to be made under this
Agreement shall be stated to be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day.
Amounts not paid when
<PAGE>
15
Receivables Sale Agreement
due in accordance with the terms of this Agreement shall bear
interest at a rate equal at all times to the Reference Rate, payable
on demand.
SECTION 2.04. No Repurchase. Except to the extent
expressly set forth herein, the Seller shall not have any right or
obligation under this Agreement, by implication or otherwise, to
repurchase from the Company any Purchased Receivables or other
Receivable Assets or to rescind or otherwise retroactively effect any
purchase of any such Purchased Receivables or other Receivable Assets
after the Payment Date relating thereto.
SECTION 2.05. Rebates, Adjustments, Returns,
Reductions and Modifications. From time to time the
Seller may make Dilution Adjustments to Receivables in
accordance with this Section 2.05 and Section 6.02.
The Seller agrees to pay to the Company, on the
Payment Date immediately succeeding the date of the grant of any
Dilution Adjustment, the amount of any such Dilution Adjustment (a
"Seller Dilution Adjustment Payment"). The amount of any Dilution
Adjustment shall be set forth on the first Daily Report prepared
after the date of the grant thereof.
SECTION 2.06. Seller Repurchase Payments. If (i)
any representation or warranty under subsection 4.02(a) or (b) is not
true and correct in any material respect as of the date specified
therein with respect to any Receivable sold to the Company or any
Receivable encompassed by the representation or warranty under
subsection 4.02(c) is determined not to be an Eligible Receivable as
of its date of purchase, (ii) there is a breach of any covenant under
Section 6.01 with respect to any Receivable and such breach has a
material adverse effect on the Company's interest in such Receivable,
(iii) the Company's interest in any Receivable is not a first
priority perfected ownership or security interest at any time as a
result of any action taken by, or the failure to take action by, the
Seller, (iv) any Eligible Receivable becomes subject to any asserted
defense, dispute, off set or counterclaim of any kind as a result of
any action taken by, any failure to take action by, or any
<PAGE>
16
Receivables Sale Agreement
event relating to the Seller (other than as expressly permitted by
this Agreement or the Pooling Agreement)(provided that in the case of
any Eligible Receivable that becomes subject only in part to any of
the foregoing, this Section 2.06 shall apply only to the portion
thereof that is so subject) or (v) there is a breach by the Seller of
any covenant contained in Section 5.02, 5.08, 5.09, 6.02, 6.03, 6.04
or 6.05 with respect to any Receivable, and as a result thereof such
Receivable (or a portion thereof) ceases to be an Eligible Receivable
on the date on which such breach occurs (each event referred to in
clauses (i), (ii), (iii), (iv) and (v) of this Section 2.06 shall be
referred to herein as an "Ineligibility Event" and any Receivable (or
portion thereof) as to which an Ineligibility Event applies shall be
referred to herein as an "Ineligible Receivable"), then the Seller
agrees to pay to the Company, upon the request of the Company or the
Seller obtaining knowledge thereof, an amount (the "Adjustment
Amount") equal to the Principal Amount of such Receivable (or portion
thereof) (whether the Company paid the related Purchase Price in cash
or otherwise) less Collections received by the Company in respect of
such Receivable; provided that in no event shall an Ineligibility
Event arise solely from any Receivable becoming a Defaulted
Receivable or any other default by an Obligor with respect to any
Receivable. Such payment shall be made on or prior to the 30th day
after the day the Company requests payment or the Seller obtains
knowledge thereof (except that if such day is not a Business Day,
then such payment shall be made on the Business Day immediately
succeeding such day) (unless such breach or incorrectness shall have
been cured or waived on or before such day); provided that in the
event that (x) an Early Termination has occurred and is continuing or
(y) the Company shall be required to make a payment in respect of
such Receivable pursuant to Section 2.05 of the Pooling Agreement and
the Company has insufficient funds to make such payment, the Seller
shall make such payment immediately. Any payment by the Seller
pursuant to this Section 2.06 is referred to as a "Seller Repurchase
Payment". If, on or prior to such 30th day (or the Business Day
immediately succeeding such 30th day, as applicable), the Seller
shall make a Seller Repurchase Payment in respect of any such
<PAGE>
17
Receivables Sale Agreement
Ineligible Receivable, then the Company shall have no further remedy
against the Seller in respect of the Ineligibility Event with respect
to such Receivable. Simultaneously with any Seller Repurchase Payment
with respect to any Receivable, such Receivable and the Receivable
Assets with respect thereto shall immediately and automatically be
sold, assigned, transferred and conveyed by the Company to the Seller
without any further action by the Company or any other Person.
SECTION 2.07. Certain Charges. Each of the Seller
and the Company agrees that late charge revenue, reversals of
discounts, other fees and charges and other similar items, whenever
created, accrued in respect of Purchased Receivables shall be the
property of the Company notwithstanding the occurrence of an Early
Termination and all Collections with respect thereto shall continue
to be allocated and treated as Collections in respect of Purchased
Receivables.
SECTION 2.08. Certain Allocations. The Seller
hereby agrees that, following the occurrence of an Early Termination,
all Collections and other proceeds received in respect of Receivables
generated by the Seller shall be applied, first, to pay the out
standing Principal Amount of Purchased Receivables (as of the date of
such Early Termination) of the Obligor to whom such Collections are
attributable until such Purchased Receivables are paid in full and,
second, to the Seller to pay Receivables of such Obligor not sold to
the Company; provided, however, that notwithstanding the foregoing,
if the Seller can attribute a Collection to a specific Obligor and a
specific Receivable, then such Collection shall be applied to pay
such Receivable of such Obligor; and the Company and the Servicer
shall take such action as the Seller may reasonably request, at the
expense of the Seller, to assure that any Receivable not sold to the
Company, the Related Property and Collections with respect thereto do
not remain commingled with other Collections hereunder and are
immediately paid to the Seller.
SECTION 2.09. Further Assurances. From time
to time at the request of the Seller, the Company shall
deliver to the Seller such documents, assignments,
<PAGE>
18
Receivables Sale Agreement
releases and instruments of termination as the Seller may reasonably
request to evidence the reconveyance by the Company to the Seller of
a Receivable pursuant to the terms of Section 2.01(b) or 2.06,
provided that the Company shall have been paid all amounts due
thereunder; and the Company and the Servicer shall take such action
as the Seller may reasonably request, at the expense of the Seller,
to assure that any receivable not sold to the Company, the Related
Property and Collections with respect thereto do not remain
commingled with other Collections hereunder and are immediately paid
to the Seller.
SECTION 2.10. GMT/PPAP Rejection Period.
Notwithstanding anything to the contrary contained herein, during any
GMT/PPAP Rejection Period, no Tooling Receivable shall be sold,
assigned, transferred or otherwise conveyed hereunder; provided that
immediately upon the cessation of any GMT/PPAP Rejection Period all
existing Tooling Receivables relating to the GMT 800 Program shall
immediately be sold hereunder.
ARTICLE III
Conditions to Purchase and Sale
SECTION 3.01. Conditions Precedent to the Company's
Purchase of Receivables on the Effective Date. The obligation of the
Company to purchase the Receivables and the other Receivable Assets
hereunder on the Effective Date from the Seller is subject to the
conditions precedent, which may be waived by the Company, that (a)
each of the Sale Documents shall be in full force and effect and (b)
the conditions set forth below shall have been satisfied on or before
the Effective Date:
(i) the Company shall have received copies of duly
adopted resolutions of the Board of Directors of the Seller, as
in effect on such Effective Date, authorizing this Agreement,
the documents to be delivered by the Seller hereunder and the
transactions contemplated hereby, certified by the Secretary or
Assistant Secretary of the Seller;
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19
Receivables Sale Agreement
(ii) the Company shall have received duly executed
certificates of the Secretary or an Assistant Secretary of the
Seller, dated the Effective Date, and in form and substance
reason ably satisfactory to the Company, certifying the names
and true signatures of the officers authorized on behalf of the
Seller to sign this Agreement and any instruments or documents
in connection with this Agreement (on which certificates the
Company may conclusively rely until such time as the Company
shall receive from the Seller a revised certificate with respect
to the Seller meeting the requirements of this subsection (ii));
(iii) the Seller shall have made available for filing
and recordation, at its own expense, UCC-1 financing statements
with respect to the Receivables and other Receivable Assets in
such manner and in such jurisdictions as are necessary to
perfect the Company's ownership interest thereof under the UCC;
and all other action necessary, in the reasonable judgment of
the Company, to perfect under the UCC (to the extent applicable)
the Company's ownership of the Receivables and other Receivable
Assets shall have been duly taken;
(iv) the Seller shall have delivered or transmitted
to the Company, with respect to the Receivables originated by
it, a computer tape, diskette or data transmission reasonably
acceptable to the Company showing, as of a date no later than
the Cut-Off Date, at least the information specified in Schedule
1 as to all Receivables to be transferred by the Seller to the
Company on such Effective Date;
(v) the Company shall have received reports of UCC-1
and other searches of the Seller with respect to the Receivables
and the other Receivable Assets reflecting the absence of Liens
thereon, except for Liens created in connection with the sale by
the Seller to the Company, and by the Company to the Trust, of
such Receivables and other Receivable Assets.
<PAGE>
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Receivables Sale Agreement
(vi) the Company shall be satisfied that the Seller's
systems, procedures and record keeping relating to the Purchased
Receivables originated by the Seller are sufficient and
satisfactory in order to permit the purchase and administration
of such Purchased Receivables in accordance with the terms and
intent of this Agreement; and
(vii) the Company shall have received such other
approvals, opinions or documents as the Company may reasonably
request.
SECTION 3.02. Conditions Precedent to All the
Company's Purchases of Receivables. The obligation of the Company to
purchase any Receivable and the other related Receivable Assets on
each date (including the Effective Date) shall be subject to the
further conditions precedent, which may be waived by the Company,
that, on and as of the related Payment Date, the following statements
shall be true (and the acceptance by the Seller of the Purchase Price
for such Receivable on such Payment Date shall constitute a
representation and warranty by the Seller that on such Payment Date
the statements in clauses (i) and (ii) below are true):
(i) the representations and warranties of the Seller
contained in Sections 4.01 and 4.02 shall be true and correct in
all material respects on and as of such Payment Date as though
made on and as of such date, except insofar as such
representations and warranties are expressly made only as of
another date (in which case they shall be true and correct in
all material respects as of such other date);
(ii) after giving effect to such purchase, no (A)
Early Termination or (B) Potential Purchase Termination Event
with respect to a Purchase Termination Event set forth in clause
(d)(i) or (ii) of Section 7.01 shall have occurred and be
continuing; and
(iii) the Company shall have received such other
approvals, opinions or documents as the Company may reasonably
request;
<PAGE>
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Receivables Sale Agreement
provided, however, that the failure of the Seller to satisfy any of
the foregoing conditions shall not prevent the Seller from
subsequently selling Receivables originated by it upon satisfaction
of all such conditions.
SECTION 3.03. Conditions Precedent to the Seller's Obligations
on the Effective Date. The obligations of the Seller on the Effective
Date shall be subject to the conditions precedent, which may be
waived by the Seller, that the Seller shall have received on or
before the Effective Date the following, each dated such Effective
Date and in form and substance satisfactory to the Seller:
(i) a copy of duly adopted resolutions of the Board
of Directors of the Company authorizing this Agreement, the
documents to be delivered by the Company hereunder and the
transactions contemplated hereby, certified by the Secretary or
Assistant Secretary of the Company; and
(ii) a duly executed certificate of the Secretary or
Assistant Secretary of the Company certifying the names and true
signatures of the officers authorized on its behalf to sign this
Agreement and the other documents to be delivered by it hereunder.
SECTION 3.04. Conditions Precedent to All the
Seller's Obligations. The obligation of the Seller to sell any
Receivable on any date (including on the Effective Date) shall be
subject to the further conditions precedent, which may be waived by
the Seller, that, on the related Payment Date, the following
statement shall be true (and the payment by the Company of the
Purchase Price for such Receivable on such date shall constitute a
representation and warranty by the Company on such Payment Date that
the statement in clause (ii) below is true): after giving effect to
such purchase, (i) no Purchase Termination Event set forth in
paragraph (d) of Section 7.01 hereof, and (ii) no Early Amortization
Event set forth in paragraph (a) of Section 7.01 of the Pooling
Agreement (as in effect on the date hereof and without giving effect
to any amendment or supplement to, or
<PAGE>
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Receivables Sale Agreement
modification or waiver of, or departure from, such paragraph unless,
in each case, the Seller shall have consented thereto) shall have
occurred and be continuing.
ARTICLE IV
Representations and Warranties
SECTION 4.01. Representations and Warranties
of the Seller Relating to Itself. The Seller
represents and warrants as to itself on the Effective
Date and each Payment Date as follows:
(a) Organization; Powers. It (i) is a corporation
duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization, (ii) has all requisite power
and authority, to own its property and assets and to carry on its
business as now conducted and as proposed to be conducted, (iii) is
qualified to do business in, and is in good standing in, every
jurisdiction where the nature of its business so requires, except
where the failure so to qualify could not reasonably be expected to
result in a Material Adverse Effect and (iv) has the corporate power
and authority to execute, deliver and perform its obligations under
each of the Transaction Documents and each other agreement or
instrument contemplated hereby or thereby to which it is or will be a
party.
(b) Authorization. The execution, delivery and
performance by the Seller of each of the Transaction Documents to
which the Seller is a party and the other transactions contemplated
hereby and thereby (collectively, the "Transactions") (i) have been
duly authorized by all requisite corporate and, if required,
stockholder action and (ii) will not (A) violate (1) any Requirement
of Law or the certificate or articles of incorporation or other
constitutive document or by-laws of any Subsidiary or (2) any
provision of any Contractual Obligation to which it or any Subsidiary
is a party or by which any of them or any of their property is or may
be bound, (B) be in conflict with, result in a breach of or
<PAGE>
23
Receivables Sale Agreement
constitute (alone or with notice or lapse of time or both) a default
under, or give rise to any right to accelerate or to require the
prepayment, repurchase or redemption of any obligation under any such
Contractual Obligation except where any such conflict, violation,
breach or default referred to in clause (A) or (B), individually or
in the aggregate, could not reasonably be expected to have a Material
Adverse Effect or (C) result in the creation or imposition of any
Lien upon or with respect to any property or assets now owned or
hereafter acquired by it or any Subsidiary (other than any Lien
created hereunder or contemplated or permitted hereby).
(c) Enforceability. This Agreement has been duly
executed and delivered by the Seller and consti tutes, and each other
Transaction Document to which the Seller is a party when executed and
delivered by the Seller will constitute, a legal, valid and binding
obligation of the Seller enforceable against the Seller in accordance
with its respective terms, subject (a) as to enforcement of remedies,
to applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting the enforcement of creditors' rights
generally, from time to time in effect and (b) to general principles
of equity (whether enforcement is sought by a proceeding in equity or
at law).
(d) Governmental Approvals. No action, consent or
approval of, registration or filing with or any other action by any
Governmental Authority is or will be required in connection with the
Transactions, except for (i) the filing of Uniform Commercial Code
financing statements, (ii) such as have been made or obtained and are
in full force and effect and (iii) such actions, consents, approvals
and filings the failure of which to obtain or make could not
reasonably be expected to result in a Material Adverse Effect.
(e) Litigation; Compliance with Laws.
(i) There are no actions, suits or proceedings at law
or in equity or by or before any Governmental Authority
now pending or, to the knowledge of the Seller,
threatened against or affecting the Seller or any
Subsidiary or any business, property or rights of any
<PAGE>
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Receivables Sale Agreement
such Person (A) that involve any Transaction Document or the
Transactions or (B) as to which there is a reasonable possibility of
an adverse determination and that, if adversely determined, could
reasonably be expected, individually or in the aggregate, to result
in a Material Adverse Effect.
(ii) Neither it nor any Subsidiary is in default
with respect to any judgment, writ, injunction, decree or order of
any Governmental Authority, where such violation or default could
reasonably be expected to result in a Material Adverse Effect.
(f) Agreements. (i) Neither it nor any
Subsidiary is a party to any agreement or instrument or
subject to any corporate restriction that has resulted
or could reasonably be expected to result in a Material
Adverse Effect.
(ii) Neither it nor any Subsidiary is in default in
any manner under any provision of any indenture or other agreement or
instrument evidencing Indebtedness or any other material agreement or
instrument (including the GM Agreements) to which it is a party or by
which it or any of its properties or assets are bound, where such
default could reasonably be expected to result in a Material Adverse
Effect.
(iii) As of the Effective Date, neither it nor any
Subsidiary is a party to any contract with GM relating to Receivables
other than the GM Agreements. Each of the GM Agreements (other than
Lifetime Program Contracts) is in full force and effect in accordance
with its terms except as could not reasonably be expected to have a
Material Adverse Effect.
(g) Federal Reserve Regulations.
(i) Neither it nor any Subsidiary is engaged
principally, or as one of its important activities, in
the business of extending credit for the purpose of
purchasing or carrying Margin Stock.
(ii) No part of the proceeds from the sale of
Receivables hereunder will be used, whether directly or indirectly,
and whether immediately, incidentally or ultimately, (A) to purchase
or carry Margin Stock or to
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Receivables Sale Agreement
extend credit to others for the purpose of purchasing or carrying
Margin Stock or to refund indebtedness originally incurred for such
purpose, or (B) for any purpose which entails a violation of, or
which is inconsistent with, the provisions of the Regulations of the
Board, including Regulation G, U or X.
(h) Investment Company Act. It is not an
"investment company" as defined in, or subject to
regulation under, the Investment Company Act of 1940.
(i) Tax Returns. It and each Subsidiary has filed
or caused to be filed all Federal, state and other material tax
returns and has paid or caused to be paid all taxes due and payable
by it and all assessments received by it, in each case to the extent
that nonpayment could reasonably be expected to result in a Material
Adverse Effect.
(j) Employee Benefit Plans. Except to the extent
failure to comply could not reasonably be expected to result in a
Material Adverse Effect, the Seller and its ERISA Affiliates are in
compliance in all material respects with the applicable provisions of
ERISA and the Code and the regulations and published interpretations
thereunder. No Reportable Event has occurred or is reasonably
expected to occur that, when taken together with all other such
Reportable Events, could reasonably be expected to result in a
Material Adverse Effect.
(k) Indebtedness to Company. Immediately prior to
consummation of the transactions contemplated hereby on such
Effective Date, it had no outstanding Indebtedness to the Company
other than amounts permitted by this Agreement.
(l) Lockboxes. Set forth in Schedule 2 is a
complete and accurate description as of the Effective Date of each
Lockbox Account currently maintained by the Seller. Each of the
Lockbox Agreements to which the Seller is a Party is the legal, valid
and binding obligation of the Seller, enforceable against the Seller
in accordance with its terms.
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Receivables Sale Agreement
(m) Chief Executive Office. The offices at which
the Seller keeps its records concerning the Receivables originated by
it either (x) are located as set forth on Schedule 3 hereto or (y)
the Seller has notified the Company of the location thereof in
accordance with Section 5.06. The chief executive office of the
Seller is listed opposite its name on Schedule 3 and is the place
where the Seller is "located" for the purposes of Section 9-103(3)(d)
of the UCC as in effect in the State of New York. As of the Effective
Date, the state and county where the chief executive office of the
Seller is "located" for the purposes of 9-103(3)(d) of the UCC as in
effect in the State of New York has not changed in the past four
months.
(n) Bulk Sales Act. No transaction contemplated
hereby with respect to the Seller requires compliance with, or will
be subject to avoidance under, any bulk sales act or similar law.
(o) Names. The legal name of the Seller is as set
forth in this Agreement. It has no trade names, fictitious names,
assumed names or "doing business as" names except as set forth on
Schedule 4.
(p) Solvency. No Insolvency Event with respect to
the Seller has occurred and the sale of the Receivables by it to the
Company has not been made in contemplation of the occurrence thereof.
Both prior to and after giving effect to the transactions occurring
on the Effective Date and after giving effect to each subsequent
transaction contemplated hereunder (i) the fair value of the assets
of the Seller at a fair valuation will exceed the debts and
liabilities, sub ordinated, contingent or otherwise, of the Seller;
(ii) the present fair salable value of the property of the Seller
will be greater than the amount that will be required to pay the
probable liability of the Seller on its debts and other liabilities,
subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (iii) the Seller will be
able to pay its debts and liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured;
and (iv) the Seller will not have unreasonably small
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Receivables Sale Agreement
capital with which to conduct the business in which it is engaged as
such business is now conducted and is proposed to be conducted. For
all purposes of clauses (i) through (iv) above, the amount of
contingent liabilities at any time shall be computed as the amount
that, in the light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to
become an actual or matured liability. The Seller does not intend to,
nor does it believe that it will, incur debts beyond its ability to
pay such debts as they mature, taking into account the timing of and
amounts of cash to be received by it and the timing of the amounts of
cash to be payable on or in respect of its Indebtedness.
(q) No Purchase Termination Event. As of
the Effective Date, no Purchase Termination Event or Potential
Purchase Termination Event with respect to the Seller has occurred
and is continuing.
(r) No Fraudulent Transfer. The Seller is not
entering into this Agreement with the intent (whether actual or
constructive) to hinder, delay, or defraud its present or future
creditors and is receiving reasonably equivalent value and fair
consideration for the Receivables originated by it being transferred
hereunder.
(s) Collection Procedures. The Seller has in place
procedures pursuant to the Transaction Documents which are either
necessary or advisable to ensure the timely collection of Receivables
originated by it.
(t) Filings. On or prior to the date that is 10
days after the Effective Date, all filings and other acts (including
but not limited to all filings and other acts necessary or advisable
under the UCC) shall have been made or performed such that the
Company has on such date a first priority perfected ownership or
security interest in respect of all Receivables.
SECTION 4.02. Representations and Warranties
of the Seller Relating to the Receivables. The Seller
hereby represents and warrants to the Company on each
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Receivables Sale Agreement
Payment Date that with respect to the Receivables originated by it
being paid for as of such date:
(a) Receivables Description. As of the CutOff Date,
the computer tape, diskette or data transmission delivered
or transmitted pursuant to Section 2.01(e) sets forth in all
material respects an accurate and complete listing of all
Receivables sold to the Company as of the Cut-Off Date and
the information contained therein in accordance with
Schedule 1 with respect to each such Receivable is true and
correct as of the Cut-Off Date. As of the Cut-Off Date, the
aggregate amount of Receivables owned by the Seller is
accurately set forth on such computer tape, diskette or data
transmission.
(b) No Liens. Each Receivable existing on the
Effective Date or, in the case of Receivables sold to the
Company after the Effective Date, on the date that each such
Receivable shall have been sold to the Company, has been
conveyed to the Company free and clear of any Liens, except
for Permitted Liens specified in clauses (i), (iii) or (iv)
of the definition thereof.
(c) Eligible Receivable. On the Effective Date,
each Receivable that is represented to be an Eligible
Receivable sold to the Company on such date is an Eligible
Receivable on the Effective Date and, in the case of
Receivables sold to the Company after the Effective Date,
each such Receivable that is represented to be an Eligible
Receivable sold to the Company on such later date is an
Eligible Receivable on such later date.
SECTION 4.03. Representations and Warranties
of the Company. The Company represents and warrants as
to itself as follows:
(a) Organization; Powers. The Company (i) is a
corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, (ii) has all
requisite power and authority to own its property and assets and to
carry on its business as now conducted and as proposed to be
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Receivables Sale Agreement
conducted, (iii) is qualified to do business in, and is in good
standing in, every jurisdiction where the nature of its business so
requires, except where the failure so to qualify would not have a
Material Adverse Effect and (iv) has the corporate power and
authority to execute, deliver and perform its obligations under each
of the Transaction Documents and each other agreement or instrument
contemplated hereby or thereby to which it is or will be a party.
(b) Authorization. The execution, delivery and
performance by the Company of each of the Transactions (i) have been
duly authorized by all requisite corporate and, if required,
stockholder action and (ii) will not (A) violate (1) any Requirement
of Law or (2) any provision of any Transaction Document or any other
material Contractual Obligation to which the Company is a party or by
which it or any of its property is or may be bound, (B) be in
conflict with, result in a breach of or constitute (alone or with
notice or lapse of time or both) a default under, or give rise to any
right to accelerate or to require the prepayment, repurchase or
redemption of any obligation under any Transaction Document or any
other material Contractual Obligation or (C) result in the creation
or imposition of any Lien upon or with respect to any property or
assets now owned or hereafter acquired by the Company (other than any
Lien created hereunder or contemplated or permitted hereby).
(c) Enforceability. This Agreement has been duly
executed and delivered by the Company and constitutes, and each other
Transaction Document to which the Company is a party when executed
and delivered by the Company will constitute, a legal, valid and
binding obligation of the Company enforceable against the Company in
accordance with its respective terms, subject (a) as to enforcement
of remedies, to applicable bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting the enforcement of
creditors' rights generally, from time to time in effect and (b) to
general principles of equity whether enforcement is sought by a
proceeding in equity or at law.
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Receivables Sale Agreement
(d) Accounting Treatment. The Company will not
prepare any financial statements that shall account for the
transactions contemplated hereby, nor will it in any other respect
(other than for tax purposes) account for the transactions
contemplated hereby, in a manner that is inconsistent with the
Company's owner ship interest in the Receivables.
ARTICLE V
Affirmative Covenants
The Seller hereby agrees that, so long as there are
any amounts outstanding with respect to Purchased Receivables
originated by it previously sold by the Seller to the Company or
until an Early Termination, whichever is later, the Seller shall:
SECTION 5.01. Certificates; Other
Information. Furnish to the Company:
(a) not later than 120 days after the end of each
fiscal year and not later than 90 days after the end of each
of the first three fiscal quarters of each fiscal year, a
certificate of a Responsible Officer of the Seller stating
that, to the knowledge of such Responsible Officer (after
due inquiry), the Seller during such period has observed or
performed in all material respects all of its covenants and
other agreements, and satisfied in all material respects
every condition, contained in the Sale Documents to which it
is a party to be observed, performed or satisfied by it, and
that such Responsible Officer has obtained no knowledge of
any Purchase Termination Event or Potential Purchase
Termination Event except as specified in such certificate;
and
(b) promptly, such additional financial and other
information as the Company may from time to time reasonably
request.
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Receivables Sale Agreement
SECTION 5.02. Compliance with Law and
Policies. (i) Comply in all material respects with the
Requirements of Law and Contractual Obligations applicable to it.
(ii) Perform its obligations in all material
respects in accordance and compliance with the Policies, as amended
from time to time in accordance with the Transaction Documents, in
regard to the Receivables originated by it and the other Receivable
Assets.
SECTION 5.03. Preservation of Corporate Existence.
(i) Preserve and maintain its corporate existence, rights, franchises
and privileges in the jurisdiction of its incorporation and (ii)
qualify and remain qualified in good standing as a foreign
corporation in each jurisdiction where the nature of its business so
requires, except where the failure so to qualify would not,
individually or in the aggregate with other such failures, have a
Material Adverse Effect.
SECTION 5.04. Separate Corporate Existence.
(i) Maintain its deposit account or accounts,
separate from those of the Company and ensure that its funds will not
be diverted to the Company, nor will such funds be commingled with
the funds of the Company;
(ii) To the extent that it shares any officers or
other employees with the Company, the salaries of and the expenses
related to providing benefits to such officers and other employees
shall be fairly allocated among it and the Company, and it and the
Company shall bear their fair shares of the salary and benefit costs
associated with all such common officers and employees;
(iii) To the extent that it jointly contracts with
the Company to do business with vendors or service providers or to
share overhead expenses, the costs incurred in so doing shall be
allocated fairly between it and the Company, and it and the Company
shall bear their fair shares of such costs. To the extent that it
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Receivables Sale Agreement
contracts or does business with vendors or service providers where
the goods and services provided are partially for the benefit of the
Company, the costs incurred in so doing shall be fairly allocated
between it and the Company in proportion to the benefit of the goods
or services each is provided, and it and the Company shall bear their
fair shares of such costs. All material transactions between it and
the Company, whether currently existing or hereafter entered into,
shall be only on an arm's length basis, it being understood and
agreed that the transactions contemplated in the Transaction
Documents meet the requirements of this clause (iii);
(iv) Maintain office space separate from the office
space of the Company (but which may be located at the same address as
the Company). To the extent that it and the Company have offices in
the same location, there shall be a fair and appropriate allocation
of overhead costs between them, and each shall bear its fair share of
such expenses;
(v) Not assume or guarantee any of the
liabilities of the Company; and
(vi) Take, or refrain from taking, as the case may
be, all other actions that are necessary to be taken or not to be
taken in order (x) to ensure that the assumptions and factual
recitations set forth in the Specified Bankruptcy Opinion Provisions
remain true and correct with respect to it (and, to the extent within
its control, to ensure that the assumptions and factual recitations
set forth in the Specified Bankruptcy Opinion Provisions remain true
and correct with respect to the Company) and (y) to comply with those
procedures described in such provisions that are applicable to it.
SECTION 5.05. Maintaining Records; Access to
Properties and Inspections. Maintain all financial records in
accordance with GAAP and permit any persons designated by the Company
to visit and inspect its financial records and properties at
reasonable times, upon reasonable prior notice to it, and as often as
reasonably requested and to make extracts from and copies of such
financial records, and permit any
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Receivables Sale Agreement
persons designated by the Company upon reasonable prior notice to
discuss the affairs, finances and condition of the Seller with the
officers thereof and independent accountants therefor (subject to
reasonable requirements of confidentiality, including requirements
imposed by law or by contract).
SECTION 5.06. Location of Records. Keep its chief
place of business and chief executive office, and the offices where
it keeps the records concerning the Purchased Receivables (and all
original documents relating thereto), at the locations referred to
for it on Schedule 3 hereto or upon 30 days' prior written notice to
the Company, at such other locations in a jurisdiction where all
action required by Section 5.14 shall have been taken and completed
and be in full force and effect; provided, however, that the Rating
Agency shall be notified of any such changes in location and such
location shall not be changed to a state which is within the Tenth
Circuit unless it delivers an opinion of counsel reasonably
acceptable to the Rating Agencies to the effect that Octagon Gas
Systems, Inc. v. Rimmer, 995 F.2d 948 (10th Cir. 1993), is no longer
controlling precedent in the Tenth Circuit.
SECTION 5.07. Computer Files. At its own cost and
expense, retain the ledger used by it as a master record of the
Obligors and retain copies of all documents relating to each Obligor
as custodian and agent for the Company and other Persons with
interests in the Purchased Receivables and mark the computer tape or
other physical records of the Purchased Receivables to the effect
that interests in the Purchased Receivables existing with respect to
the Obligors listed thereon have been sold to the Company and that
the Company has sold an interest therein and, subsidiarily, has
granted a security interest therein.
SECTION 5.08. Payment of and Compliance with
Obligations. Pay, discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all
its obligations of whatever nature, except where the amount or
validity thereof is currently being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP with
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Receivables Sale Agreement
respect thereto have been provided on its books or except where the
failure to so pay, discharge or otherwise satisfy such obligations
would not have a Material Adverse Effect in respect of the Seller and
would not subject any of its properties to a Lien which is not a
Permitted Lien. The Seller shall defend the right, title and interest
of the Company in, to and under the Receivables originated by it and
the other Receivable Assets, whether now existing or hereafter
created, against all claims of third parties claiming through the
Seller. The Seller will duly fulfill all obligations on its part to
be fulfilled under or in connection with each Receivable originated
by it and will do nothing to impair the rights of the Company in such
Receivable.
SECTION 5.09. Collections. Instruct each Obligor to
make payments in respect of its Receivables to a Lockbox or a Lockbox
Account or by wire transfer to a Lockbox Account or the Collection
Account and to comply in all material respects with procedures with
respect to Collections reasonably specified from time to time by the
Company. In the event that any payments in respect of any such
Receivables are made directly to the Seller (including, without
limitation, any employees thereof or independent contractors employed
thereby), the Seller shall, within two Business Days of receipt
thereof, deliver (which may be via regular mail) or deposit such
amounts to a Lockbox, a Lockbox Account or the Collection Account
and, prior to forwarding such amounts, the Seller shall hold such
payments in trust as custodian for the Company and the Trustee.
SECTION 5.10. Furnishing Copies, Etc.
Furnish to the Company:
(a) within five Business Days of the Company's
request, a certificate of the chief financial officer of the
Seller or of the Servicer, on behalf of the Seller,
certifying, as of the date thereof, to the knowledge of such
officer, that no Purchase Termination Event has occurred and
is continuing or if one has so occurred, specifying the
nature and extent thereof
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Receivables Sale Agreement
and any corrective action taken or proposed to be
taken with respect thereto;
(b) promptly after a Responsible Officer of the
Seller obtains knowledge of the occurrence of any Purchase
Termination Event or Potential Purchase Termination Event,
written notice thereof specifying the nature and extent
thereof and the corrective action (if any) proposed to be
taken with respect thereto;
(c) promptly following request therefor, such other
information, documents, records or reports regarding or with
respect to the Purchased Receivables of the Seller, as the
Company may from time to time reasonably request; and
(d) promptly upon determining that any Purchased
Receivable originated by it designated as an Eligible
Receivable on the applicable Daily Report or Monthly
Settlement Statement was not an Eligible Receivable as of
the date provided therefor, written notice of such
determination.
SECTION 5.11. Obligations with Respect to Obligors
and Receivables. Take all actions on its part reasonably necessary to
maintain in full force and effect its rights under all contracts
relating to the Purchased Receivables originated by it.
SECTION 5.12. Responsibilities of the Seller.
Notwithstanding anything herein to the contrary, the Seller shall
perform or cause to be performed in all material respects all its
obligations under the Policies related to the Purchased Receivables
to the same extent as if such Purchased Receivables had not been
transferred to the Company hereunder.
SECTION 5.13. Assessments. Promptly pay and
discharge all taxes, assessments, levies and other governmental
charges imposed upon it except such taxes, assessments, levies and
charges which are being contested in good faith and for which the
Seller has set aside on its books adequate reserves.
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Receivables Sale Agreement
SECTION 5.14. Further Action. In addition
to the foregoing:
(a) The Seller agrees that from time to time, at
its expense, it will promptly execute and deliver all
further instruments and documents, and take all further
action, that may be necessary in the Seller's reasonable
judgment or that the Company may reasonably request, in
order to more fully effect the purposes of this Agreement
and the transfer of the Receivables hereunder, to protect or
more fully evidence the Company's right, title and interest
in the Purchased Receivables, or to enable the Company to
exercise or enforce any of its rights in respect thereof.
Without limiting the generality of the foregoing, the Seller
will upon the request of the Company (i) execute and file
such financing or continuation statements, or amendments
thereto, and such other instruments or notices, as may be
necessary or, in the opinion of the Company, advisable and
(ii) obtain the agreement of any Person having a Lien on any
Receivables owned by the Seller (other than any Lien created
or imposed hereunder or under the Pooling Agreement or any
Permitted Lien) to release such Lien upon the purchase of
any such Receivables by the Company.
(b) The Seller hereby irrevocably authorizes the
Company to file one or more financing or continuation
statements (and other similar instruments), and amendments
thereto, relative to all or any part of the Purchased
Receivables and the other Receivable Assets sold or to be
sold by the Seller without the signature of the Seller to
the extent permitted by applicable law.
(c) If the Seller fails to perform any of its
agreements or obligations under this Agreement, the Company
may (but shall not be required to) perform, or cause
performance of, such agreements or obligations, and the
expenses of the Company incurred in connection therewith
shall be payable by the Seller as provided in Section 9.02.
The Company agrees promptly to notify the Seller after any
such performance;
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Receivables Sale Agreement
provided, however, that the failure to give such notice
shall not affect the validity of any such performance.
SECTION 5.15. Sale of Receivables. Sell
Receivables solely in accordance with the terms of this
Agreement.
SECTION 5.16. GMT/PPAP Rejection Period. (i)
Immediately notify the Company and the Servicer if in connection with
any Supplier Quality Assurance review relating to the GMT 800
Program, any officer of the Seller receives notice from GM that such
review is unsatisfactory in any material respect, (ii) keep the
Company and the Servicer reasonably informed of the corrective
actions being taken by Seller and (iii) promptly notify the Company
and the Servicer of the commencement and termination of any GMT/PPAP
Rejection Period.
ARTICLE VI
Negative Covenants
The Seller hereby agrees that, so long as there are
any amounts outstanding with respect to Purchased Receivables
originated by it previously sold by the Seller to the Company or
until an Early Termination with respect to the Seller, whichever is
later, the Seller shall not, directly or indirectly:
SECTION 6.01. Limitations on Transfers of
Receivables, Etc. At any time sell, transfer or other-
wise dispose of any of the Receivables or other
Receivable Assets pursuant to:
(i) any Lien Creation except for Permitted
Liens; or
(ii) any Investment.
SECTION 6.02. Extension or Amendment of
Receivables. Extend, make any Dilution Adjustment to,
rescind, cancel, amend or otherwise modify, or attempt
or purport to extend, amend or otherwise modify, the
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Receivables Sale Agreement
terms of any Purchased Receivables, or otherwise take any action to
cause, or which would permit, a Receivable that was designated as an
Eligible Receivable on the Payment Date relating to such Receivable
to cease to be an Eligible Receivable, except in any such case (a) in
accordance with the terms of the Policies, (b) as required by any
Requirement of Law or (c) in the case of Dilution Adjustments, upon
making a Seller Dilution Adjustment Payment pursuant to Section 2.05.
SECTION 6.03. Change in Payment Instructions to
Obligors. Instruct any Obligor of any Purchased Receivables to make
any payments with respect to any Receivables other than, in
accordance with Section 5.09, to a Lockbox, a Lockbox Account or the
Collection Account; provided, however, that, in accordance with
Section 2.03 of the Servicing Agreement, (i) it may terminate any
Lockbox Agreements or Lockbox Accounts and (ii) it may execute
additional Lockbox Agreements or Lockbox Accounts and instruct
Obligors to make payments in respect of any Receivables to such
additional accounts; provided, however, upon the satisfaction of the
Rating Agency Condition (or, if no Outstanding Series has been rated
by a Rating Agency, with the consent of the Agent) the Seller may
enter into any amendments or modifications of a Lockbox Agreement
that the Seller reasonably deems necessary to conform such Lockbox
Agreement to the cash management system of the Company or the Seller.
SECTION 6.04. Change in Name. Change its name, use
an additional name, or change its identity or corporate structure in
any manner which would or might make any financing statement or
continuation statement (or other similar instrument) relating to this
Agreement seriously misleading within the meaning of Section 9-402(7)
of the UCC, or impair the perfection of the Company's interest in any
Receivable under any other similar law, without 30 days' prior
written notice to the Company.
SECTION 6.05. Policies. Make any change or
modification (or permit any change or modification to
be made) to the Policies that is materially adverse to
the interests of the Company or its assigns (including
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Receivables Sale Agreement
the Trustee and the Investor Certificateholders), except (i) if such
changes or modifications are necessary under any Requirement of Law,
(ii) if such changes or modifications would not reasonably be likely
to have a Material Adverse Effect with respect to the Company, or
(iii) if the Rating Agency Condition is satisfied with respect
thereto.
SECTION 6.06. Modification of Ledger.
Delete or otherwise modify the marking on the ledger
referred to in Section 2.01(e).
SECTION 6.07. Accounting for Purchases. Prepare any
financial statements which shall account for the transactions
contemplated hereby (other than capital contributions and the Seller
Note contemplated hereby) in any manner other than as a sale of the
Purchased Receivables by the Seller to the Company or in any other
respect account for or treat the transactions contemplated hereby
(including for financial accounting purposes, except as required by
law) (other than capital contributions and the Seller Note
contemplated hereby) in any manner other than as sales of the
Purchased Receivables originated by the Seller to the Company;
provided, however, that this subsection shall not apply for any tax
or tax accounting purposes.
SECTION 6.08. Instruments. Subject to the delivery
requirements set forth in Section 2.01(b) of the Pooling Agreement,
take any action to cause any Receivable not evidenced by an
"instrument" (as defined in the UCC as in effect in the State of New
York or other similar statute or legislation) upon origination to
become evidenced by an instrument, except in connection with the
enforcement or collection of an overdue Receivable.
SECTION 6.09. Ineligible Receivables. With out the
prior written approval of the Company, take any action to cause, or
which would permit, a Receivable that was designated as an Eligible
Receivable on the Payment Date relating to such Receivable to cease
to be an Eligible Receivable, except as otherwise expressly provided
by this Agreement; provided that in no event
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Receivables Sale Agreement
shall an Eligible Receivable becoming a Defaulted Receivable
constitute a breach of this Section 6.09.
SECTION 6.10. Business of the Seller. Fail
to maintain and operate the business currently
conducted by the Seller and business activities reason
ably incidental or related thereto in substantially the
manner in which it is presently conducted and operated
if such failure would materially adversely affect the
interests of the Company under the Transaction
Documents.
SECTION 6.11. Limitation on Fundamental Changes.
Enter into any merger, consolidation or amalgamation, or liquidate,
wind up or dissolve itself (or suffer any liquidation or
dissolution), or make any material change in its present method of
conducting business, or convey, sell, lease, assign, transfer or
otherwise dispose of, all or substantially all of its property,
business or assets other than the assignments and transfers
contemplated hereby.
SECTION 6.12. Amendment of GM Agreements. Amend,
supplement, modify or waive any of the provisions of the GM
Agreements relating to the Receivables or consent or agree to suffer
to exist or permit any such amendment, supplement, modification or
waiver or exercise any consent rights granted to it thereunder unless
such amendment, supplement, modification or waiver or such exercise
of consent rights (a) could not reasonably be expected to have a
Material Adverse Effect with respect to the Seller or (b) has been
consented to in writing by the Company.
ARTICLE VII
Purchase Termination Events
SECTION 7.01. Purchase Termination Events.
If any of the following events (herein called "Purchase
Termination Events") shall have occurred and be
continuing:
(a) the Seller shall fail (i) to pay any
amount due pursuant to Section 2.06 in accordance
<PAGE>
41
Receivables Sale Agreement
with the provisions thereof and such failure shall continue
unremedied for a period of five Business Days from the
earlier of (A) the date any Responsible Officer of the
Seller obtains knowledge of such failure and (B) the date
the Seller receives notice of such failure from the Company,
the Servicer or the Trustee or (ii) to pay any other amount
required to be paid by the Seller hereunder within five
Business Days of the date when due; or
(b) the Seller shall fail to observe or perform in
any material respect any covenant or agreement applicable to
it contained herein (other than as specified in paragraph
(a) of this Section 7.01); provided that no such failure
shall constitute a Purchase Termination Event under this
paragraph (b) unless such failure shall continue unremedied
for a period of 30 consecutive days from the date the Seller
receives notice of such failure from the Company, the
Servicer or the Trustee; or
(c) any representation, warranty, certification or
statement made or deemed made by the Seller in this
Agreement or in any statement, record, certificate,
financial statement or other document delivered pursuant to
this Agreement shall prove to have been incorrect in any
material respect when made or deemed made; provided that no
such event shall constitute a Purchase Termination Event
unless such event shall continue unremedied for a period of
30 days from the earlier of (A) the date any Responsible
Officer of the Seller obtains knowledge thereof and (B) the
date the Seller receives notice of the incorrectness of such
representation or warranty from the Company, the Servicer or
the Trustee; provided, further, that a Purchase Termination
Event shall not be deemed to have occurred under this
paragraph (c) based upon a breach of any representation or
warranty set forth in Section 4.02 if the Seller shall have
complied with the provisions of Section 2.06 in respect
thereof; or
<PAGE>
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Receivables Sale Agreement
(d) (i) a court having jurisdiction in the premises
shall enter a decree or order for relief in respect of the
Seller in an involuntary case under the Bankruptcy Code or
any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect (the Bankruptcy Code and all
other such applicable laws being collectively, "Applicable
Insolvency Laws"), which decree or order is not stayed or
any other similar relief shall be granted under any
applicable federal or state law now or hereafter in effect
and shall not be stayed; (ii)(A) an involuntary case is
commenced against the Seller under any Applicable Insolvency
Law now or hereafter in effect, a decree or order of a court
having jurisdiction in the premises for the appointment of a
receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over the Seller, or over
all or a substantial part of the property of the Seller,
shall have been entered, an interim receiver, trustee or
other custodian of the Seller for all or a substantial part
of the property of the Seller is involuntarily appointed, a
warrant of attachment, execution or similar process is
issued against any substantial part of the property of the
Seller, and (B) any event referred to in clause (ii)(A)
above continues for 60 days unless dismissed, bonded or
discharged; (iii) the Seller shall at its request have a
decree or an order for relief entered with respect to it or
commence a voluntary case under any Applicable Insolvency
Law now or hereafter in effect, or shall consent to the
entry of a decree or an order for relief in an involuntary
case, or to the conversion of an involuntary case to a
voluntary case, under any such Applicable Insolvency Law,
consent to the appointment of or taking possession by a
receiver, trustee or other custodian for all or a
substantial part of its property; (iv) the making by the
Seller of any general assignment for the benefit of
creditors; or (v) the Board of Directors of the Seller
authorizes action to approve any of the foregoing; or
<PAGE>
43
Receivables Sale Agreement
(e) there shall have occurred (i) an Early
Amortization Event set forth in Section 7.01 of the Pooling
Agreement or (ii) the Amortization Period with respect to
all Outstanding Series shall have occurred and be
continuing; or
(f) the Seller has been terminated as Servicer
following a Servicer Default with respect to the Seller
under the Servicing Agreement; or
(g) a notice of Lien shall have been filed by the
PBGC against the Seller under Section 412(n) of the Code or
Section 302(f) of ERISA for a failure to make a required
installment or other payment to a plan to which Section
412(n) of the Code or Section 302(f) of ERISA applies and
such notice could reasonably be expected to have a Material
Adverse Effect with respect to the Seller unless there shall
have been delivered to the Trustee and the Rating Agencies
proof of release of such Lien; or
(h) any Lien in an amount equal to or greater than
$10,000,000 has been asserted against or imposed on the
Receivables pursuant to the Comprehensive Environmental
Response, Compensation, and Liability Act, 42 U.S.C. ss.
9607(l), or any equivalent or comparable state law, relating
to or arising from the costs of, response to, or
investigation, remediation or monitoring of, any
environmental contamination resulting from the current or
past operations of the Seller, unless such Lien is being
contested in compliance with the standard set forth in
Section 5.13; or
(i) a Federal tax notice of Lien, in an amount
equal to or greater than $2,000,000, shall have been filed
against the Seller, unless such Lien is being contested in
compliance with the standard set forth in Section 5.13 or
there shall have been delivered to the Trustee and the
Rating Agencies proof of release of such Lien; or
(j) any "Event of Default", as such term is
defined in paragraph (b), (c) or (d) (but only
<PAGE>
44
Receivables Sale Agreement
with respect to Article VI of the Credit Agreement in the
case of paragraph (d)) of Article VII of the Credit
Agreement, after giving effect to any grace period
applicable thereto under the Credit Agreement, shall have
occurred and be continuing;
then, (i) in the case of any Purchase Termination Event described in
paragraph (d), (e) or (g) above, the obligation of the Company to
purchase Receivables shall thereupon automatically terminate without
further notice of any kind, which is hereby waived by the Seller and
(ii) in the case of any other Purchase Termination Event, so long as
such Purchase Termination Event shall be continuing, the Company may
terminate its obligation to purchase Receivables from the Seller by
written notice to the Seller (any termination pursuant to clause (i)
or (ii) of this Article VII is herein called an "Early Termination");
provided, how ever, that in the event of an involuntary petition or
proceeding as described in paragraphs (d)(i) and (d)(ii) above, the
Company shall not purchase Receivables from the Seller until such
time, if any, as such involuntary petition or proceeding has been
dismissed, provided that such dismissal shall have occurred within 60
days of the filing of such petition or the commencement of such
proceeding.
SECTION 7.02. Remedies. (a) If an Early
Termination has occurred and is continuing:
(i) the Company (and its assignees) shall have all
of the rights and remedies provided to a secured creditor or
a purchaser of accounts under the UCC by applicable law in
respect thereto.
(ii) If required by the terms of Section 9-504 or
9-505 of the UCC (or analogous provisions of any other
similar law applicable to the Receivables), the Company (and
its assignees) may offer to sell any Purchased Receivable to
any Person, together, at its option, with all other
Receivables created by the same Obligor. Any Purchased
Receivable sold hereunder (other than pursuant to the
Pooling Agreement) shall cease to be a Receivable for all
purposes under this Agreement as of the effective date of
such sale;
<PAGE>
45
Receivables Sale Agreement
(b) In the absence of a Purchase Termination Event
under Section 7.01(d) or (e)(i), it is understood and agreed that the
Company will not exercise the rights granted to it pursuant to
Section 2.01(f) in its own capacity.
ARTICLE VIII
Seller Note
SECTION 8.01. Seller Note. On the Effective Date,
the Company shall issue to the Seller a sub ordinated note
substantially in the form of Exhibit A (as amended, supplemented or
otherwise modified from time to time, the "Seller Note"). The Company
may incur Indebtedness evidenced by the Seller Note on any date only
(i) if such date is a Payment Date; (ii) in payment to the Seller of
all or a portion of the Purchase Price (net of such deductions as
provided in Section 2.03(d)) for Receivables and other Receivable
Assets required to be paid for by the Company to the Seller on such
Payment Date in accordance with Section 2.02; (iii) to the extent
that cash was not available to pay such Purchase Price (net of such
deductions) in accordance with subsections 2.03(b)(i), 2.03(b)(ii)
and 2.03(b)(iii) (as applicable); and (iv) subject, in any event, to
Section 8.03. The aggregate principal amount of the Seller Note at
any time shall be equal to the difference between (i) the sum of the
aggregate principal amount on the issuance thereof and each addition
to the principal amount of such Seller Note pursuant to Section 2.03
as of such time and (ii) the aggregate amount of all payments made in
respect of the principal of such Seller Note as of such time. All
payments made in respect of the Seller Note shall be allocated,
first, to pay accrued and unpaid interest thereon, and second, to pay
the outstanding principal amount thereof. Interest on the principal
amount of the Seller Note (as such principal amount may have been
increased pursuant to the following proviso) shall accrue at the
Reference Rate in effect from time to time from and including the
Effective Date and shall be paid on each Distribution Date with
respect to amounts accrued and not paid as of
<PAGE>
46
Receivables Sale Agreement
the last day of the preceding Settlement Period and the maturity date
thereof; provided, however, that, to the maximum extent permitted by
law, accrued interest on the Seller Note which is not so paid shall
be added, at the request of the Seller, to the principal amount of
the Seller Note. The principal amount of the Seller Note (as such
principal amount may have been increased pursuant to the proviso to
the preceding sentence) shall be payable on the maturity date of the
Seller Note (unless sooner prepaid pursuant to the terms thereof and
of the other Transaction Documents). Default in the payment of
principal or interest under the Seller Note shall not constitute a
default or event of default or a Purchase Termination Event
hereunder, a Servicer Default under the Servicing Agreement or an
Early Amortization Event under the Pooling Agreement or any
Supplement thereto.
SECTION 8.02. Restrictions on Transfer of Seller
Note. Neither the Seller Note, nor any right of the Seller to receive
payments thereunder, shall be assigned, transferred, exchanged,
pledged, hypothecated, participated or otherwise conveyed, except as
provided in the Credit Agreement and the security documents related
thereto.
SECTION 8.03. Aggregate Amount. Anything herein to
the contrary notwithstanding, the Company may not make any payment of
any Purchase Price in the form of Indebtedness of the Company under
the Seller Note unless (i) at the time of such payment and after
giving effect thereto, the fair market value of the Company's assets,
including any beneficial interests in or indebtedness of a trust and
all Receivables and Receivable Assets the Company owns, is greater
than the amount of its liabilities, including its liabilities on the
Seller Note and all interest and other fees due and payable under the
Pooling Agreement and the other Transaction Documents plus
$10,000,000 and (ii) the aggregate principal amount of Indebtedness
evidenced by the Seller Note, incurred on or before such Payment Date
and outstanding on such Payment Date (after giving effect to all
repayments thereof on or before such Payment Date) would not exceed
25% of the outstanding balance of the Receivables on such Payment
Date. The principal amount of Indebtedness evidenced by the
<PAGE>
47
Receivables Sale Agreement
Seller Note incurred on any Payment Date shall not, in any event, be
greater than the excess, if any, of (x) the Purchase Price for
Receivables and other Receivable Assets required to be paid for by
the Company on such Payment Date pursuant to Section 2.03 over (y)
the portion of such Purchase Price paid in cash pursuant to
sub-sections 2.03(b)(i), 2.03(b)(ii) and 2.03(b)(iii).
ARTICLE IX
Miscellaneous
SECTION 9.01. Payments. Each cash payment to be
made by either the Company or the Seller here under shall be made on
the required payment date and in immediately available funds at the
office of the payee set forth below its signature hereto or to such
other office as may be specified by either party in a notice to the
other party hereto.
SECTION 9.02. Costs and Expenses. The Seller agrees
(a) to pay or reimburse the Company for all its costs and expenses
incurred in connection with the enforcement or preservation of any
rights against the Seller under this Agreement and the other Sale
Documents, including, without limitation, the reasonable fees and
disbursements of counsel to the Company, (b) to pay, indemnify, and
hold the Company harmless from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any
delay caused by the Seller in paying, stamp, excise and other similar
taxes, if any, which may be payable or determined to be payable in
connection with the execution and delivery of, or any amendment,
supplement or modification of, or any waiver or consent under or in
respect of, this Agreement and any such other documents, and (c) to
pay, indemnify, and hold the Company harmless from and against any
and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which would not have been imposed on,
incurred by or asserted against the Company but for its having
acquired the Receivables hereunder (all such other liabilities,
<PAGE>
48
Receivables Sale Agreement
obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses and disbursements being herein called "Indemnified
Liabilities"); provided, however, that such indemnity shall not be
available to the extent that such Indemnified Liabilities result from
the gross negligence or wilful misconduct of the Company; and
provided, further, that the Seller shall have no obligation under
this Section 9.02 to the Company with respect to Indemnified
Liabilities arising from (i) any action taken, or omitted to be
taken, by a Servicer that is not an Affiliate of the Seller, (ii) any
action taken by the Trustee or the Company in collecting from an
Obligor or (iii) a delay in payment, or a default, by an Obligor with
respect to any Purchased Receivable (other than arising out of (x)
any discharge, claim, offset or defense (other than discharge in
bankruptcy of the Obligor or otherwise in respect of Charged-Off
Receivables) of the Obligor to the payment of any Purchased
Receivable (including, without limitation, a defense based on such
Purchased Receivable not being a legal, valid and binding obligation
of such Obligor enforceable against it in accordance with its terms)
or any other claim resulting from the sale of the merchandise or
services related to any such Purchased Receivable or the furnishing
or failure to furnish such merchandise or services, (y) a failure by
the Seller to perform its duties or obligations under this Agreement
or (z) the sale of any Purchased Receivable that is designated on the
applicable Daily Report to be an Eligible Receivable and is
determined to have been at the date of such sale an Ineligible
Receivable). The agreements in this Section 9.02 shall survive the
collection of all Receivables, the termination of this Agreement and
the payment of all amounts payable here under.
SECTION 9.03. Successors and Assigns. This
Agreement shall be binding upon and inure to the
benefit of the Seller and the Company and their
respective successors (whether by merger, consolidation
or otherwise) and assigns. The Seller agrees that it
will not assign or transfer all or any portion of its
rights or obligations hereunder without the prior
written consent of the Company. The Seller
acknowledges that the Company shall assign all of its
<PAGE>
49
Receivables Sale Agreement
rights hereunder to the Trustee. The Seller consents to such
assignment and agrees that the Trustee, to the extent provided in the
Pooling Agreement, shall be entitled to enforce the terms of this
Agreement and the rights (including, without limitation, the right to
grant or withhold any consent or waiver) of the Company directly
against the Seller, whether or not a Purchase Termination Event, a
Potential Purchase Termination Event, an Early Amortization Event or
a Potential Early Amortization Event has occurred. The seller further
agrees that, in respect of its obligations hereunder, it will act at
the direction of and in accordance with all requests and instructions
from the Trustee until all amounts due to the Investor
Certificateholders are paid in full. The Trustee, on behalf of the
Investor Certificateholders, shall have the rights of a third-party
beneficiary under this Agreement.
SECTION 9.04. Governing Law. THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 9.05. No Waiver; Cumulative Remedies. No
failure to exercise and no delay in exercising, on the part of the
Company, any right, remedy, power or privilege hereunder, shall
operate as a waiver thereof, nor shall any single or partial exercise
of any right, remedy, power or privilege here under preclude any
other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exhaustive of any
rights, remedies, powers and privileges provided by law.
SECTION 9.06. Amendments and Waivers. Neither this
Agreement nor any terms hereof may be amended, supplemented or
modified except in a writing signed by the Company and the Seller.
Any amendment, supplement or modification shall not be effective
until the Rating Agency Condition has been satisfied.
SECTION 9.07. Severability. Any provision
of this Agreement which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or
<PAGE>
50
Receivables Sale Agreement
unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.
SECTION 9.08. Notices. All notices, requests and
demands to or upon the respective parties hereto to be effective
shall be in writing (including by telecopy), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or
made when delivered by hand, or three days after being deposited in
the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed as follows in the case of the Company and the
Seller, or to such other address as may be hereafter notified by the
respective parties hereto:
The Company: AAM Receivables Corp.
1840 Holbrook Avenue, Suite 2A
Detroit, MI 48212
Attention: Mark Umlauf
Telecopier: (313) 873-5472
The Seller: American Axle & Manufacturing, Inc.
1840 Holbrook Avenue
Detroit, MI 48212
Attention: Gary Witosky
Telecopier: (313) 974-2229
in each case, with a copy to
Trustee: The Chase Manhattan Bank, as
Trustee
450 W. 33rd Street, 15th Floor
New York, New York 10001
Attention: Structured Finance
Services
Telecopier: (212) 946-3240
SECTION 9.09. Counterparts. This Agreement
may be executed by one or more of the parties to this
Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts
taken together shall be deemed to constitute one and
the same instrument. A set of the copies of this
<PAGE>
51
Receivables Sale Agreement
Agreement signed by all the parties shall be lodged with the Company.
SECTION 9.10. Waivers of Jury Trial. EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OF THE OTHER SALE DOCUMENTS.
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT AND THE OTHER SALE DOCUMENTS, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 9.10.
SECTION 9.11. Jurisdiction; Consent to Service of
Process. (a) EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL COURT OF THE
UNITED STATES OF AMERICA SITTING IN NEW YORK CITY, AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE OTHER SALE DOCUMENTS OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS
IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW,
IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION OR PROCEEDING MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT THE
COMPANY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR THE OTHER SALE DOCUMENTS AGAINST THE SELLER OR
ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.
(b) EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT THEY MAY
LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT
<PAGE>
52
Receivables Sale Agreement
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
OTHER SALE DOCUMENTS IN ANY NEW YORK STATE OR FEDERAL COURT. EACH OF
THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
(c) EACH PARTY TO THIS AGREEMENT IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN
SECTION 9.08. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW.
SECTION 9.12. Integration. This Agreement and the
other Transaction Documents contain a final and complete integration
of all prior expressions by the parties hereto with respect to the
subject matter hereof and thereof and shall together constitute the
entire agreement among the parties hereto with respect to the subject
matter hereof and thereof, superseding all prior oral or written
understandings.
SECTION 9.13. No Bankruptcy Petition. The
Seller, by entering into this Agreement, and any
present or future holder of the Seller Note, by its
acceptance thereof, covenants and agrees that, prior to
the date which is one year and one day after the date
of termination of this Agreement pursuant to
Section 9.14, it will not institute against, or join
any other Person in instituting against, the Company
any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings, or other proceedings under
any Applicable Insolvency Laws.
SECTION 9.14. Termination. This Agreement will
terminate at such time as (a) the commitment of the Company to
purchase Receivables from the Seller hereunder shall have terminated
and (b) all Receivables purchased hereunder have been collected, and
the proceeds thereof turned over to the Company and all other amounts
owing to the Company hereunder shall have been paid in full or, if
Receivables sold hereunder have not been collected, such Receivables
have become Defaulted Receivables and the Company shall have
<PAGE>
53
Receivables Sale Agreement
completed its collection efforts in respect thereto; provided,
however, that the indemnities of the Seller to the Company set forth
in this Agreement shall survive such termination and provided,
further that, to the extent any amounts remain due and owing to the
Company hereunder, the Company shall remain entitled to receive any
collections on Receivables sold hereunder which have become Defaulted
Receivables after it shall have completed its collection efforts in
respect thereof.
SECTION 9.15. Construction of Agreement. (a) The
Seller hereby grants to the Company a security interest in all of the
Seller's right, title and interest in, to and under the Receivables
and other Receivable Assets now existing and hereafter created, all
monies due or to become due and all amounts received with respect
thereto and all "proceeds" thereof (including Recoveries), to secure
all of the Seller's obligations hereunder.
(b) This Agreement shall constitute a
security agreement under applicable law.
<PAGE>
54
Receivables Sale Agreement
IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by their respective officers thereunto
duly authorized, all as of the day and year first above written.
AMERICAN AXLE &
MANUFACTURING, INC., as
Seller and Servicer
by
/s/ Gary J. Witkosky
--------------------
Name: Gary J. Witkosky
Title: Chief Financial
Officer
AAM RECEIVABLES CORP.
by
/s/ Patrick S. Lancaster
------------------------
Name: Patrick S. Lancaster
Title: Secretary
<PAGE>
Exhibit A to the
Receivables Sale Agreement
[FORM OF
SELLER NOTE]
New York, New York
__________, 1997
AAM RECEIVABLES CORP., a Delaware corporation (the
"Company"), hereby promises to pay to the order of American Axle &
Manufacturing, Inc., a Delaware corporation, in its capacity as Seller under
the Receivables Sale Agreement described below the principal amount of this
Seller Note, determined as described below, together with interest thereon
at a rate per annum equal to the Reference Rate in effect from time to time
plus 2.50% in lawful money of the United States of America. Capitalized
terms used herein but not defined herein shall have the meanings assigned to
such terms in the Receivables Sale Agreement dated as of October 29, 1997,
between the Company and American Axle & Manufacturing, Inc. as seller (in
such capacity, the "Seller") and as servicer (in such capacity, the
"Servicer") (as amended, supplemented or otherwise modified from time to
time in accordance with its terms, the "Receivables Sale Agreement") and in
the Pooling Agreement, dated as of October 29, 1997, among the Company, the
Servicer, and The Chase Manhattan Bank, a New York banking corporation, as
Trustee (as amended, supplemented or otherwise modified from time to time in
accordance with its terms, the "Pooling Agreement"). This Seller Note is the
Seller Note referred to in the Receivables Sale Agreement and is subject to
the terms and conditions thereof.
1. Principal Amount. The aggregate principal amount of this
Seller Note at any time shall be calculated in accordance with Section 8.01
of the Receivables Sale Agreement and shall be recorded by the Servicer (the
authority to so record such amounts being hereby granted to the Servicer) on
the schedule annexed to and constituting a part of this Seller Note.
2. Payments of Principal and Interest. (a) Principal on this
Seller Note may be prepaid at any time. Principal not prepaid shall be due
and payable on the Trust Termination Date (as defined in the Pooling
Agreement).
(b) Payments of interest on this Seller Note shall be paid
on each Distribution Date (with respect to interest accrued and not paid as
of the preceding Distribution Date (or, in the case of the first
Distribution Date, as of the date on which this Seller Note is issued)) and
on the Trust Termination Date by depositing such payment in such account of
the Seller as the
<PAGE>
2
Seller may designate in writing; provided, however, that accrued interest on
this Seller Note which is not so paid may (to the maximum extent permitted
by law) be added to the principal amount of this Seller Note as indicated on
the schedule annexed to and constituting a part of this Seller Note.
Notwithstanding the foregoing, no payments of interest or principal may be
made under this Seller Note at the times and to the extent prohibited under
the Subordination Provisions and Certain Termination Events described in
Sections 3 and 6 below.
3. Subordination Provisions. The Company covenants and
agrees, and the Seller, by its acceptance of this Seller Note, likewise
covenants and agrees, that the payment of all obligations of the Company to
the Seller under this Seller Note from or with the proceeds (such proceeds
being the "Proceeds") of Receivables (as defined in the Pooling Agreement)
or Related Property (as defined in the Pooling Agreement)(and any
extensions, renewals, financing, refundings and replacements of all or any
part of such obligations) (the "Seller Subordinated Debt") are hereby
expressly subordinated in right of payment to the payment and performance of
the obligations of the Company to the Trustee for the benefit of the Holders
(as defined in the Pooling Agreement) howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due (the "Senior Obligations") to
the extent and in the manner set forth in this paragraph including each of
the following subparts:
(a) Insolvency Events; Priority of Senior Obligations;
Payments Made Directly to the Trustee. In the event of any
bankruptcy, dissolution, winding up, liquidation, readjustment,
reorganization or other similar event relating to the Company,
whether voluntary or involuntary, partial or complete, and whether in
bankruptcy, insolvency, receivership or other similar proceedings, or
upon an assignment for the benefit of creditors, or any other
marshalling of the assets and liabilities of the Company (each an
"Insolvency Event") or any sale of all or substantially all the
assets of the Company (except pursuant to the Pooling Agreement and
any Supplement thereto),
(i) the Senior Obligations shall first be paid and
performed in full and in cash before the Seller shall be
entitled to receive and to retain any payment or
distribution from or with the Proceeds in respect of the
Seller Subordinated Debt, whether of principal, interest or
otherwise; and
(ii) any payment or distribution from or with the
Proceeds of any kind (including cash or property arising
<PAGE>
3
from Proceeds which may be payable or deliverable by
reason of the payment of any other indebtedness of the
Company being subordinated to the payment of the Seller
Subordinated Debt) in respect of the Seller Subordinated
Debt that otherwise would be payable or deliverable with
respect to the Seller Subordinated Debt directly or
indirectly, by set-off or in any other manner to the Seller,
shall be paid or delivered by the Person making such payment
or delivery (whether a trustee in bankruptcy, a receiver,
custodian, liquidating trustee or otherwise) directly to the
Trustee on behalf of the Holders for application to (in the
case of cash) or as collateral for (in the case of noncash
property or securities) the payment of the Senior
Obligations until the Senior Obligations shall have been
paid in full in cash.
(b) Payments Received by Seller. In the event that the
Seller receives any payment or other distribution of any kind or
character arising from Proceeds from the Company or from any other
source whatsoever in respect of the Seller Subordinated Debt after
the commencement of an Insolvency Event, such payment or other
distribution shall be deemed to be property of the Holders and shall
be received and held by the Seller in trust for the Trustee on behalf
of the Holders and shall be turned over by the Seller to the Trustee
for the benefit of the Holders forthwith, until all Senior
Obligations have been paid and performed in full and in cash.
(c) Application of Payments. All payments and distributions
arising from Proceeds received by the Trustee in respect of the
Seller Subordinated Debt, to the extent received in or converted into
cash, may be applied by the Trustee for the benefit of the Holders
(i) first to the payment of any and all reasonable expenses
(including reasonable attorneys' fees and legal expenses) paid or
incurred by the Trustee or any Holder in enforcing these
Subordination Provisions, or in endeavoring to collect or realize
upon the Seller Subordinated Debt, and (ii) any balance remaining
therefrom shall be applied by the Trustee toward the payment of the
Senior Obligations in a manner determined by the Trustee to be in
accordance with the Pooling Agreement.
(d) Seller's Rights of Subrogation. The Seller agrees that
no payment or distribution to Holders pursuant to these Subordination
Provisions shall entitle the Seller to exercise any right of
subrogation in respect thereof until the Senior Obligations shall
have been paid in full in cash. The Seller agrees that these
Subordination Provisions herein shall not
<PAGE>
4
be affected by any action, or failure to act, by any holder of Senior
Obligations which results, or may result, in affecting, impairing or
extinguishing any right of reimbursement or subrogation or other right
or remedy of the Seller.
(e) Company's Obligations Absolute. The provisions of this
paragraph are intended solely for the purpose of defining the
relative rights with respect to Proceeds of the Seller, on the one
hand, and the Holders, on the other hand. Nothing contained in these
provisions or elsewhere in this Seller Note is intended to or shall
impair, as between the Company, its creditors (other than the
Trustee) and the Seller, the Company's obligation, which is
unconditional and absolute, to pay the Seller Subordinated Debt as
and when the same shall become due and payable in accordance with the
terms hereof and of the Receivables Sale Agreement or to affect the
relative rights of the Seller and creditors of the Company (other
than the Certificateholders); provided that any payments made by the
Company pursuant to this subsection shall be made solely from funds
available to the Company which are not otherwise needed to be applied
to the payment of any amounts by the Company pursuant to any Pooling
and Servicing Agreements, and the Seller shall make no claim against
the Company for payment in contravention of this proviso.
(f) Avoided Payments. If, at any time, any payment (in whole
or in part) made with respect to any Senior Obligations is rescinded
or must be restored or returned by a Holder or the Trustee on behalf
of the Holders, the provisions of this paragraph shall continue to be
effective or shall be reinstated, as the case may be, as though such
payment had not been made.
(g) Subordination Not Affected by Certain Actions of Holders
or the Trustee. As between the Seller, on the one hand, and the
Holders and the Trustee, on the other hand, each of the Holders or
the Trustee may, from time to time, at its sole discretion, without
notice to the Seller, and without waiving any of its rights under
these Subordination Provisions, take any or all of the following
actions: (i) retain or obtain an interest in any property to secure
any of the Senior Obligations; (ii) extend or renew for one or more
periods (whether or not longer than the original period), alter,
increase or exchange any of the Senior Obligations, or release or
compromise any obligation of any nature with respect to any of the
Senior Obligations; (iii) amend, supplement, amend and restate, or
otherwise modify any Transaction Document; and (iv) release its
<PAGE>
5
security interest in, or surrender, release or permit any
substitution or exchange for all or any part of any rights or property
securing any of the Senior Obligations.
(h) Waiver of Notice. By its acceptance hereof, the Seller
hereby waives: (i) notice of acceptance of the provisions of this
paragraph by any of the Holders or the Trustee; (ii) notice of the
existence, creation, non-payment or non-performance of all or any of
the Senior Obligations; and (iii) all diligence in enforcement,
collection or protection of, or realization upon, the Senior
Obligations or any security therefor.
4. Restrictions on Assignment. Neither this Seller Note, nor
any right of the Seller to receive payments hereunder, shall be assigned,
transferred, exchanged, pledged, hypothecated, participated or otherwise
conveyed, except as provided in the Credit Agreement and in the security
documents related thereto.
5. No Bankruptcy Petition. The Seller covenants and agrees
that, prior to the date which is one year and one day after the date of
termination of the Receivables Sale Agreement pursuant to Section 9.13
thereof, it will not institute against, or join any other Person in
instituting against, the Company any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings
under any federal or state bankruptcy or similar law.
6. Certain Termination Events. During the continuance of any
Early Amortization Event set forth in paragraphs (a) or (b) of Section 7.01
of the Pooling Agreement, until all Senior Obligations have been paid in
full:
(a) the Company shall cease making any payments to the
Seller under this Seller Note;
(b) the Trustee (on behalf of the Holders) may demand, sue
for, collect and receive every payment or distribution of any kind
made in respect of the Seller Subordinated Debt and file claims and
proofs of claim and take such other action (including enforcing any
security interest or other lien securing payment of the Seller
Subordinated Debt) as the Trustee (on behalf of the Holders) may deem
necessary for the exercise or enforcement of any of the rights or
interests of Holders; provided that in the event the Trustee takes
such action, it shall apply all proceeds first to the payment of
costs under this Seller Note, then to the payment of the Senior
Obligations and any surplus proceeds remaining thereafter to be paid
over to whosoever may be lawfully entitled thereto; and
<PAGE>
6
(c) the Seller shall promptly take such action as the
Trustee (on behalf of the Holders) may request (i) to file
appropriate claims or proofs of claim in respect of the Seller
Subordinated Debt; (ii) to execute and deliver to the
Trustee (on behalf of the Holders) such powers of attorney,
assignments, or other instruments as the Trustee may request in order
to enable it to enforce any and all claims with respect to, and any
security interests and other liens securing payment of, the Seller
Subordinated Debt, and (iii) to collect and receive any and all
payments or distributions which may be payable or deliverable upon or
with respect to the Seller Subordinated Debt for account of the
Trustee (on behalf of the Holders).
7. The Company covenants and agrees that, at any time that
the outstanding principal amount of this Seller Note is greater than zero,
it shall not declare or pay any dividend on, or make any payment on account
of, or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, defeasance, retirement or other acquisition of, any
shares of any class of capital stock of the Company, whether now or
hereafter outstanding, or make any other distribution in respect thereof.
THIS SELLER NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO ANY CONFLICT OF LAW PRINCIPLES.
AAM RECEIVABLES CORP.,
by
-------------------------
Name:
Title:
<PAGE>
Schedule 1 to
Seller Note
Subordinated Loans and Payments of Principal1
---------------------------------------------
Amount of Unpaid
Amount of Principal Principal Notation
Date Loans Repaid Balance Made by
---- --------- --------- --------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
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-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
- ----------------
1 The grid below may be maintained electronically by the Seller, rather
than in written form.
<PAGE>
Schedule 1 to the
Receivables Sale Agreement
Receivables
American Axle & Manufacturing, Inc. aged trial balance as of
October 29, 1997, on computer diskette.
<PAGE>
Schedule 2 to the
Receivables Sale Agreement
Lockboxes
Lockbox Account
Name Bank Name Number Number
---- --------- ------- -------
American Axle Mellon Bank 360254 091-8591
& Manufacturing, P.O. Box 360254
Inc. Pittsburgh, PA 15251-6254
<PAGE>
Schedule 3 to the
Receivables Sale Agreement
Chief Executive Office
Jurisdiction of Location of Chief Office Where Records
Seller Incorporation Executive Office are kept
- ------ --------------- ---------------- --------------------
American Axle & 1840 Holbrook Ave.
Manufacturing, Inc. Delaware Detroit, MI 48212 Finance Dept.
Other Locations where Records
Concerning Receivables are Located
----------------------------------
A. Detroit Gear & Axle and Detroit Forge
1840 Holbrook Avenue
Detroit, Michigan 48212
B. Buffalo Gear & Axle
1001 East Delavan Avenue
Buffalo, New York 14215
C. Tonawanda Forge
2390 Kenmore
Tonawanda, New York 14150
D. Three Rivers Plant
One Manufacturing Drive
Three Rivers, Michigan 49093
E. Engineering, Sales & Marketing
Techinical Center
2965 Technology Drive
Rochester Hills, Michigan 48309
<PAGE>
Schedule 4 to the
Receivables Sale Agreement
Names
-----
Seller Trade Names
------ -----------
American Axle & Manufacturing, Inc. AAM*
The corporation is frequently referred to as "AAM" and, for this reason, it
is claimed as a trade name. The corporation does not have any "doing
business as" names or "assumed names".
<PAGE>
Schedule 5 to the
Receivables Sale Agreement
Discounted Percentage
All terms defined or referenced in the Receivables Sale
Agreement, the Pooling Agreement or a Supplement and not otherwise defined
or referenced herein are used herein as therein defined or referenced.
The Discounted Percentage applicable to the Receivables
purchased on any date from the Seller shall equal (a) during the initial
Accrual Period, 99.25% and (b) thereafter, the percentage obtained from the
following formula:
100% - (A + B + C + D)
all determined by the Company as of the Related Payment Date,
Where
A = Adjusted Loss Reserve Percentage, which as of such Payment
Date will equal the ratio obtained by dividing (a) Charged-
Off Receivables (net of recoveries in respect of Charged-Off
Receivables) during the six-fiscal month period immediately
preceding the Settlement Report Date most recently preceding
such Payment Date by (b) two times the aggregate amount of
Collections during the three-fiscal month period immediately
preceding the Settlement Report Date most recent to such
Payment Date.
B = Adjusted Carrying Cost Reserve Percentage, which as of such Payment
Date will equal the amount obtained by dividing (a) the product of
(i) 1.5, (ii) the average of the Days Sales Outstanding for the three
Settlement Report Dates most recent to such Payment Date and (iii)
the Reference Rate as of the Settlement Report Date most recent to
such Payment Date by (b) 365.
C = The Servicing Fee Percentage divided by 360.
D = Processing Expense Reserve Percentage, which will equal 1/20 of 1%
and reflects the cost of the Company's overhead, including costs of
processing the purchase of Receivables and other normal operation
costs and a reasonable profit margin.
None of the elements of the above-referenced formula, in
respect of any purchase of Receivables, will be adjusted following the
related Payment Date.
With respect to each calculation set forth above with
respect to a Settlement Report Date, such calculation as calculated on such
Settlement Report Date and included in the
<PAGE>
2
applicable Monthly Settlement Statement shall remain in effect from and
including the related Settlement Report Date to but excluding the following
Settlement Report Date.
</TABLE>
<PAGE>
EXECUTION COPY
===============================================================================
SERVICING AGREEMENT
Among
AAM RECEIVABLES CORP.,
AMERICAN AXLE & MANUFACTURING, INC.
as Servicer,
and
THE CHASE MANHATTAN BANK,
as Trustee
Dated as of October 29, 1997
===============================================================================
<PAGE>
TOC Servicing Agreement
TABLE OF CONTENTS
ARTICLE I
<TABLE>
<CAPTION>
Definitions
<S> <C>
SECTION 1.01. Definitions...............................................................................1
SECTION 1.02. Other Definitional Provisions.............................................................2
ARTICLE II
Administration and Servicing of Receivables
SECTION 2.01. Appointment of Servicer...................................................................3
SECTION 2.02. Servicing Procedures......................................................................3
SECTION 2.03. Collections...............................................................................6
SECTION 2.04. Reconciliation of Deposits................................................................7
SECTION 2.05. Servicing Compensation....................................................................7
ARTICLE III
Representations and Warranties of the Servicer
SECTION 3.01. Organization; Powers......................................................................9
SECTION 3.02. Authorization; No Conflict................................................................9
SECTION 3.03. Enforceability...........................................................................10
SECTION 3.04. Governmental Approvals...................................................................10
SECTION 3.05. Litigation; Compliance with Laws.........................................................10
SECTION 3.06. Agreements...............................................................................11
SECTION 3.07. No Servicer Default......................................................................11
SECTION 3.08. Servicing Ability........................................................................11
SECTION 3.09. Location of Records......................................................................11
ARTICLE IV
Covenants of the Servicer
SECTION 4.01. Delivery of Daily Reports................................................................12
SECTION 4.02. Delivery of Monthly Settlement Statement.................................................12
SECTION 4.03. Delivery of Annual Servicer's Certificates...............................................13
SECTION 4.04. Delivery of Independent Public Accountants' Servicing Reports............................14
SECTION 4.05. Extension, Amendment and Adjustment of Receivables; Amendment of Policies................14
SECTION 4.06. Protection of Holders' Rights............................................................15
SECTION 4.07. Security Interest........................................................................15
</TABLE>
<PAGE>
TOC Servicing Agreement Contents page ii
<TABLE>
<S> <C>
SECTION 4.08. Location of Records......................................................................15
SECTION 4.09. Visitation Rights........................................................................16
SECTION 4.10. Lockbox Agreement; Lockbox Accounts......................................................16
SECTION 4.11. Delivery of Financial Statements.........................................................17
SECTION 4.12. Notices..................................................................................19
ARTICLE V
Other Matters Relating to the Servicer
SECTION 5.01. Merger, Consolidation, etc...............................................................19
SECTION 5.02. Indemnification of the Trust and the Trustee.............................................20
SECTION 5.03. Servicer Not to Resign...................................................................21
SECTION 5.04. Access to Certain Documentation and Information Regarding the Receivables................21
ARTICLE VI
Servicer Defaults;
Servicer Termination
SECTION 6.01. Servicer Defaults........................................................................22
SECTION 6.02. Trustee To Act; Appointment of Successor.................................................26
SECTION 6.03. Waiver of Past Defaults..................................................................28
ARTICLE VII
Miscellaneous Provisions
SECTION 7.01. Amendment................................................................................28
SECTION 7.02. Termination..............................................................................28
SECTION 7.03. Governing Law............................................................................29
SECTION 7.04. Notices..................................................................................29
SECTION 7.05. Counterparts.............................................................................29
SECTION 7.06. Third-Party Beneficiaries................................................................29
SECTION 7.07. Merger and Integration...................................................................30
SECTION 7.08. Headings.................................................................................30
SECTION 7.09. No Set-Off...............................................................................30
SECTION 7.10. No Bankruptcy Petition...................................................................30
Exhibit A Form of Annual Servicer's Certificate
Exhibit B Form of Agreed Upon Procedures
</TABLE>
<PAGE>
SERVICING AGREEMENT, dated as of
October 29, 1997 (this "Agreement"), among
AAM RECEIVABLES CORP., a Delaware corporation
(the "Company"), AMERICAN AXLE & MANUFACTURING, INC.,
a Delaware corporation ("AAMI", in its capacity as
Seller under the Receivables Sale Agreement referred
to below, the "Seller"), as servicer (the
"Servicer"), and THE CHASE MANHATTAN BANK, not in its
individual capacity, but solely as trustee
(in such capacity, the "Trustee").
W I T N E S S E T H:
WHEREAS the Company and the Seller have entered into a
Receivables Sale Agreement, dated as of the date hereof (the "Receivables Sale
Agreement");
WHEREAS pursuant to the Receivables Sale Agreement, the Seller
sells to the Company, and the Company purchases from the Seller, all the
Seller's right, title and interest in, to and under the Receivables and other
Receivable Assets (as defined in the Receivables Sale Agreement);
WHEREAS, the Company in turn has transferred the Receivables
now existing or hereafter created and the rights of the Company in, to and under
all Related Property related thereto to a master trust pursuant to a Pooling
Agreement, dated as of the date hereof (as amended, supplemented or otherwise
modified from time to time, the "Pooling Agreement"), among the Company, the
Servicer and the Trustee; and
WHEREAS, the parties hereto wish to enter into this Agreement.
NOW, THEREFORE, in consideration of the premises and of the
mutual covenants herein contained, the parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Definitions. Unless otherwise defined herein,
capitalized terms that are used herein shall
<PAGE>
Servicing Agreement 2
have the meanings assigned to such terms in the Pooling Agreement and each
Supplement thereto.
SECTION 1.02. Other Definitional Provisions. (a) All terms
defined in this Agreement (directly or by incorporation by reference pursuant to
Section 1.01) shall have the defined meanings when used in any certificates or
other document made or delivered pursuant hereto unless otherwise defined
therein.
(b) As used herein and in any certificate or other document
made or delivered pursuant hereto or thereto, accounting terms not defined
herein (directly or by incorporation by reference pursuant to Section 1.01) and
accounting terms partly defined herein (directly or by incorporation by
reference pursuant to Section 1.01), to the extent not defined, shall have the
respective meanings given to them under GAAP. To the extent that the definitions
of accounting terms herein are inconsistent with the meanings of such terms
under GAAP, the definitions contained herein shall control.
(c) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
subsection, Schedule and Exhibit references contained in this Agreement are
references to Sections, subsections, Schedules and Exhibits in or to this
Agreement unless otherwise specified.
(d) The definitions contained herein are applicable to the
singular as well as the plural forms of such terms and to the masculine, the
feminine and the neuter genders of such terms.
(e) Where reference is made in this Agreement to the principal
amount of Receivables, such reference shall, unless explicitly stated otherwise,
be deemed a reference to the Principal Amount of such Receivables.
(f) Any reference herein or in any other Transaction Document
to a provision of the Internal Revenue Code or ERISA shall be deemed to be also
a reference to any successor provision thereto.
(g) Any reference herein to a Schedule or Exhibit to this
Agreement shall be deemed to be a reference to such Schedule or Exhibit as it
may be amended, modified or
<PAGE>
Servicing Agreement 3
supplemented from time to time to the extent that such Schedule or Exhibit may
be amended, modified or supplemented (or any term or provision of any
Transaction Document may be amended that would have the effect of amending,
modifying or supplementing information contained in such Schedule or Exhibit) in
compliance with the terms of the Transaction Documents.
(h) Any reference in this Agreement to any representation,
warranty or covenant "deemed" to have been made is intended to encompass only
representations, warranties or covenants that are expressly stated to be
6
repeated on or as of dates following the execution and delivery of this
Agreement, and no such reference shall be interpreted as a reference to any
implicit, inferred, tacit or otherwise unexpressed representation, warranty or
covenant.
(i) The words "include", "includes" or "including" shall be
interpreted as if followed, in each case, by the phrase "without limitation".
ARTICLE II
Administration and Servicing of Receivables
SECTION 2.01. Appointment of Servicer. The Company hereby
appoints AAMI to act as, and AAMI hereby accepts its appointment and agrees to
act as, Servicer under the Pooling and Servicing Agreements, and the Investor
Certificateholders, by their acceptance of the Investor Certificates, consent to
AAMI acting as Servicer. The Servicer shall have responsibility for the
management of the servicing and receipt of collections in respect of the
Receivables and will have the authority to make any management decisions
relating to the Receivables to the extent such authority is granted to the
Servicer under any Pooling and Servicing Agreement. The Company, the Trustee and
the Holders shall treat AAMI as the Servicer and may conclusively rely on the
instructions, notices and reports of AAMI as Servicer for so long as AAMI is the
Servicer.
SECTION 2.02. Servicing Procedures. (a) The Servicer shall
manage the servicing and administration of the Receivables, the collection of
payments due under the Receivables and charging off of any Receivables as
uncollectible, all in accordance with its Policies and the terms of the Pooling
and Servicing Agreements. The Servicer
<PAGE>
Servicing Agreement 4
shall have full power and authority, acting alone or through any party properly
designated by it hereunder, to do any and all things in connection with such
servicing and administration that it may deem necessary or desirable, but
subject to the terms of this Agreement and the other Transaction Documents.
Without limiting the generality of the foregoing and subject to Section6.01,
the Servicer or its designee is hereby authorized and empowered (i) to execute
and deliver, on behalf of the Trust for the benefit of the Holders, any and all
instruments of satisfaction or cancelation, or of partial or full release or
discharge, and all other comparable instruments, and, after the delinquency of
any Receivable and to the extent permitted under and in compliance with
applicable Requirements of Law, to commence enforcement proceedings with respect
to such Receivable and (ii) to make any filings, reports, notices, applications,
registrations with, and to seek any consents or authorizations from, the
Securities and Exchange Commission and any state securities authority on behalf
of the Trust as may be necessary or advisable to comply with any Federal or
state securities or reporting requirements or laws.
(b) Without limiting the generality of the foregoing and
subject to Section 6.01, the Servicer or its designee is hereby authorized and
empowered to give written direction to the Trustee with respect to withdrawals
from, and payments to, the Collection Account in accordance with the Daily
Report and as otherwise specified in the Pooling and Servicing Agreements.
(c) The Servicer shall, at its cost and expense and as agent
for the Company and the Trust, use its best efforts to collect, consistent with
its past practices, as and when the same becomes due, the amount owing on each
Receivable. The Servicer shall not make any material change in its
administrative, servicing and collection systems that deviates from its
Policies, except as expressly permitted by the terms of any applicable Pooling
and Servicing Agreement and after giving written notice to the Trustee. In the
event of default under any Receivable, the Servicer shall have the power and
authority, on behalf of the Company and the Trust, for the benefit of the
Holders, to take such action in respect of such Receivable as the Servicer may
deem advisable. In the enforcement or collection of any Receivable, the Servicer
shall be entitled to sue thereon in (i) its own name or (ii) if, but only if,
the Company consents in writing (which consent shall not be unreasonably
withheld), as agent for the Company. In no event shall the Servicer be entitled
to take any action that would make the
<PAGE>
Servicing Agreement 5
Company, the Trustee, any Agent or any Holder a party to any litigation without
the express prior written consent of such Person.
(d) Without limiting the generality of the foregoing and
subject to Section 6.01, the Servicer is hereby authorized and empowered to
delegate any or all of its servicing, collection, enforcement and administrative
duties hereunder with respect to the Receivables to a Person who agrees to
conduct such duties in accordance with its Policies; provided, however, that the
Servicer shall give prior written notice to the Company, the Trustee, each Agent
and the Rating Agencies of any such delegation relating to a material duty prior
to such delegation being effective, the Servicer shall have received notice that
the Rating Agency Condition shall be satisfied after giving effect to such
delegation and the consent of the Company, the Trustee and each Agent to such
delegation shall have been obtained. No delegation of duties by the Servicer
permitted hereunder shall relieve the Servicer of its liability and
responsibility with respect to such duties.
(e) Except as provided in any Pooling and Servicing Agreement,
neither the Servicer nor any Successor Servicer shall be obligated to use
separate servicing procedures, offices, employees or accounts for servicing the
Receivables transferred to the Company (and, subsequently, to the Trust) from
the procedures, offices, employees and accounts used by the Servicer or such
Successor Servicer, as the case may be, in connection with servicing other
receivables.
(f) The Servicer shall comply with and perform its servicing
obligations with respect to the Receivables in accordance with the contracts, if
any, relating to the Receivables and its Policies except insofar as any failure
to so comply or perform would not have a Material Adverse Effect with respect to
the Servicer.
(g) The Servicer shall not take any action to cause any
Receivable not evidenced by any "instrument" (as defined in the UCC as in effect
in the State of New York) upon origination to become evidenced by an instrument
and the Servicer shall not take any action to cause any interest in any
Receivable to be evidenced by any title documents in bearer form, except in
connection with its enforcement or collection of a Defaulted Receivable, in
which event the Servicer shall deliver such instrument or title documents to the
Trustee as soon as reasonably practicable, but in no
<PAGE>
Servicing Agreement 6
event more than five days after execution thereof; provided that any origination
of Receivables by the Servicer, in its capacity as the Seller, in compliance
with applicable Pooling and Servicing Agreements shall not constitute a breach
of this subsection 2.02(h).
SECTION 2.03. Collections. (a) The Servicer shall have
instructed all Obligors to make all payments in respect of the Receivables to a
Lockbox or a Lockbox Account. Each of the Company and the Servicer represents,
warrants and agrees that all Collections shall be collected, processed and
deposited by it pursuant to, and in accordance with the terms of, the Pooling
and Servicing Agreements and Lockbox Agreements. Without limiting the generality
of the foregoing, the Servicer shall comply with the provisions of subsection
3.01(d) of the Pooling Agreement as to remittance of funds available in any
Lockbox Account. In the event that any payments in respect of any Receivable are
made directly to the Servicer (including any employees thereof or independent
contractors employed thereby), the Servicer shall, within two Business Days of
receipt thereof, deliver (which may be via regular mail) or deposit such amounts
to a Lockbox, a Lockbox Account or the Collection Account and, prior to
forwarding such amounts, the Servicer shall hold such payments in trust as
custodian for the Company and the Trustee.
(b) Each Lockbox Agreement shall provide that the Lockbox
Processor thereunder is irrevocably directed, and such Lockbox Processor
irrevocably agrees, (i) to deposit funds received in the Lockbox directly into
the Lockbox Account and (ii) to transfer all available funds on deposit in the
Lockbox Account within one Business Day of the Business Day Received to the
Trustee for deposit in the Collection Account. Each Lockbox Agreement shall be
substantially in the form specified in the Pooling Agreement, subject to
modifications thereof as provided in the Pooling Agreement and applicable
Supplements. Prior to any resignation of the Lockbox Processor or termination of
the Lockbox Processor by the Company or the Trustee with respect to any
Receivables, the Servicer hereby agrees to obtain a replacement Lockbox
Processor. The Servicer may enter into any amendments or modifications of a
Lockbox Agreement that the Servicer reasonably deems necessary to conform such
Lockbox Agreement to the cash management system of the Company or the Servicer
and that are reasonably acceptable to the Trustee and each Agent.
<PAGE>
Servicing Agreement 7
(c) The Trustee shall administer amounts on deposit in the
Collection Account in accordance with the terms of the Pooling and Servicing
Agreements. Each of the Company and the Servicer acknowledges and agrees that
(i)it shall not have any right to withdraw any funds on deposit in the
Collection Account or any Lockbox Account and (ii) all amounts deposited in the
Collection Account or any Lockbox Account shall be under the sole dominion and
control of the Trustee (subject to the Servicer's rights to direct the
application of any such amounts as provided by the terms of any Pooling and
Servicing Agreement or to the extent funds are deposited in error (as certified
to the Trustee in writing by the Servicer)).
(d) As soon as practicable, but in any event not later than
the Business Day following the date that the Servicer identifies any of the
collected funds received in the Collection Account as funds that do not
constitute Collections on account of the Receivables, such moneys that do not
constitute such Collections shall be remitted to the Servicer and then by the
Servicer to the Seller.
(e) Unless otherwise required by law or unless an Obligor
designates that a payment be applied to a specific Receivable, all Collections
received from an Obligor shall be applied to the oldest Receivables of such
Obligor.
SECTION 2.04. Reconciliation of Deposits. If in respect of
Collections on account of a Receivable the Servicer deposits into the Lockbox
Account or the Collection Account (a) a check that is not honored for any reason
or (b) an amount that is less than or more than the actual amount of such
Collections, the Servicer shall, in lieu of making a reconciling withdrawal or
deposit, as the case may be, adjust the amount subsequently deposited into such
Lockbox Account or the Collection Account to reflect such dishonored check or
mistake. Any Receivable in respect of which a dishonored check is received shall
be deemed not to have been paid; provided, that no adjustments made pursuant to
this Section 2.04 shall change any amount previously reported pursuant to
Section 4.02.
SECTION 2.05. Servicing Compensation. (a) As full
compensation for the Servicer's servicing activities hereunder and reimbursement
for its expenses as set forth in subsection 2.05(b), the Servicer shall be
entitled to receive on each Distribution Date, for the preceding Settlement
Period prior to the termination of the Trust pursuant to Section 9.01 of the
Pooling Agreement, a
<PAGE>
Servicing Agreement 8
servicing fee (the "Servicing Fee"). The Servicing Fee shall be an amount equal
to (i) the product of (A) the Servicing Fee Percentage and (B) the average
aggregate Principal Amount of the Receivables in the Trust for such Settlement
Period and (C) the number of days in such Settlement Period, divided by
(ii) 360. Except as otherwise set forth in the related Supplement, the share of
the Servicing Fee allocable to each Outstanding Series for any Settlement Period
shall be an amount equal to the product of (i) the Servicing Fee for such
Settlement Period and (ii) a fraction (expressed as a percentage) (A) the
numerator of which is the daily average Invested Amount for such Settlement
Period with respect to such Outstanding Series and (B) the denominator of which
is the daily average Aggregate Invested Amount for such Settlement Period (with
respect to any such Series, the "Monthly Servicing Fee"). The Servicing Fee
shall be payable to the Servicer solely pursuant to the terms of, and to the
extent amounts are available for payment under, Article III of the Pooling
Agreement.
(b) The Company hereby authorizes the Servicer to pay amounts
due to the Trustee pursuant to Section 8.05(a) of the Pooling Agreement and the
reasonable fees and disbursements of independent accountants, and all other
reasonable fees and expenses of the Trust (including counsel fees, if any) not
expressly stated herein to be for the account of the Holders; provided, however,
that in no event shall the Servicer or the Trustee be liable for any Federal,
state or local income or franchise tax, or any interest or penalties with
respect thereto, assessed on the Trust or the Holders except in accordance with
Section 5.02 and as otherwise expressly provided herein and provided further
that the Company shall promptly reimburse the Servicer upon request for any
amounts paid by the Servicer pursuant to this Section 2.05(b). It is understood
and agreed that the Servicer shall not be obligated to make any such payment if,
in the reasonable judgment of the Servicer, the Company will be unable to meet
its reimbursement obligations pursuant to the further proviso in the immediately
preceding sentence. Notwithstanding anything to the contrary herein or in any
other Pooling and Servicing Agreement, in the event that the Servicer fails to
pay any amount due to the Trustee pursuant to Section 8.05(a) of the Pooling
Agreement, or following the commencement and continuation of an Early
Amortization Period, the Trustee shall be entitled, in addition to any other
rights it may have under law and under the Pooling Agreement, to receive
directly such amounts owing to it under the Pooling and Servicing Agreements
from, and in the
<PAGE>
Servicing Agreement 9
same order of priority as, the Servicing Fee before payment to the Servicer of
any portion thereof; provided, that in the event the Servicer shall have elected
to waive its rights to payment of its portion of the Servicing Fee, the Trustee
shall nonetheless be entitled to receive such amounts from payments that would
ordinarily be applied to the payment of the Servicing Fee, in the same order of
priority as though such portion of the Servicing Fee were payable. The Servicer
shall be required to pay expenses for its own account, and shall not be entitled
to any payment therefor other than its portion of the Servicing Fee. Nothing
contained herein shall be construed to limit the obligation of the Servicer or
the Company to pay any amounts due the Trustee pursuant to Section 8.05(a) of
the Pooling Agreement.
ARTICLE III
Representations and Warranties of the Servicer
As of (a) the date hereof and (b) each Issuance Date, the
Servicer hereby makes the following representations and warranties to each of
the other parties hereto:
SECTION 3.01. Organization; Powers. The Servicer (i) is a
corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization, (ii) has all requisite power and
authority to own its property and assets, to lease the properties it operates as
lessee and to carry on its business as now conducted and as proposed to be
conducted, (iii) is qualified to do business in, and is in good standing in,
every jurisdiction in which the servicing of Receivables as required by this
Agreement requires such qualification except in the case of clauses (ii) and
(iii) to the extent that a failure to have such power and authority or to
qualify could not reasonably be expected to result in a Material Adverse Effect
with respect to the Servicer and (iv) has the corporate power and authority to
execute, deliver and perform its obligations under each Transaction Document to
which it is or will be a party.
SECTION 3.02. Authorization; No Conflict. The execution,
delivery and performance by the Servicer of each of the Transaction Documents to
which it is a party and the other transactions contemplated hereby and thereby
(collectively, the "Transactions") (i) have been duly
<PAGE>
Servicing Agreement 10
authorized by all requisite corporate action and (ii) will not (A) violate
(1) NY Requirement of Law or (2) any provision of any Contractual Obligation to
which the Servicer is a party or by which any of them or any of their property
is or may be bound, (B) be in conflict with, result in a breach of or constitute
(alone or with notice or lapse of time or both) a default under, or give rise to
any right to accelerate or to require the prepayment, repurchase or redemption
of any obligation under any such Contractual Obligation, except where any such
conflict, violation, breach or default referred to in clause (A) or (B),
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect with respect to the Servicer, or (C) result in the
creation or imposition of any Lien (other than Permitted Liens) upon or with
respect to any property or assets now owned or hereafter acquired by the
Servicer or any Subsidiary.
SECTION 3.03. Enforceability. This Agreement has been duly
executed and delivered by the Servicer and consti tutes, and each other
Transaction Document to which it is a party when executed and delivered by it
will constitute, its legal, valid and binding obligation enforceable against it
in accordance with such document's terms, subject (a) as to enforcement of
remedies, to applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting the enforcement of creditors' rights generally,
from time to time in effect and (b) to general principles of equity (whether
enforcement is sought by a proceeding in equity or at law).
SECTION 3.04. Governmental Approvals. No action, consent or
approval of, registration or filing with or any other action by any Governmental
Authority is or will be required in connection with the Transactions, except for
(i) the filing of Uniform Commercial Code financing statements, (ii) those that
may be required under state securities or "blue sky" laws in connection with the
offering or sale of Investor Certificates and (iii) such as have been made or
obtained and are in full force and effect.
SECTION 3.05. Litigation; Compliance with Laws. (i) There are
no actions, suits or proceedings at law or in equity or by or before any
Governmental Authority now pending or, to its knowledge, threatened against or
affecting the Servicer or any Subsidiary or any business, property or rights of
any such Person (A) that involve any Transaction Document or the Transactions or
(B) as to which there is a reasonable possibility of an adverse
<PAGE>
Servicing Agreement 11
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect with
respect to the Servicer.
(ii) Neither the Servicer nor any Subsidiary is in default
with respect to any judgment, writ, injunction, decree or order of any
Governmental Authority, where such violation or default could reasonably be
expected to result in a Material Adverse Effect with respect to the Servicer.
SECTION 3.06. Agreements. (i) The Servicer is not a party to
any agreement or instrument or subject to any corporate restriction that has
resulted or could reasonably be expected to result in a Material Adverse Effect
with respect to the Servicer.
(ii) The Servicer is not in default in any manner under any
provision of any Contractual Obligation to which it is a party or by which it or
any of its properties or assets are bound, where such default could reasonably
be expected to result in a Material Adverse Effect with respect to the Servicer.
SECTION 3.07. No Servicer Default. No Servicer Default or
Potential Servicer Default has occurred and is continuing.
SECTION 3.08. Servicing Ability. As of the related Issuance
Date, there has not been since the date of this Agreement any material adverse
change in the Servicer's ability to perform its obligations as Servicer under
any Transaction Document to which it is a party.
SECTION 3.09. Location of Records. The office at which the
Servicer keeps its records concerning any Receivables either (i) is located at
the address set forth for it on Schedule 1 to the Receivables Sale Agreement or
(ii) has been notified to the Company and the Trustee in accordance with the
provisions of Section 4.08. The chief executive office of the Servicer is
located at such location and such office is the place where it is "located" for
the purposes of Section 9-103(3)(d) of the UCC as in effect in the State of
New York.
<PAGE>
Servicing Agreement 12
ARTICLE IV
Covenants of the Servicer
SECTION 4.01. Delivery of Daily Reports. Unless otherwise
specified in the Supplement with respect to any Series, for each Business Day
(the "Reported Day") and with respect to each Outstanding Series, the Servicer
shall submit to the Company, the Trustee and the relevant Agent, if any, no
later than 1:30 p.m., New York City time, on the next Business Day following
each Reported Day, a written report substantially in the form attached to the
related Supplement for each such Series (the "Daily Report") setting forth for
the Reported Day total Collections on the Receivables, the amount of Collections
attributable to previously identified Ineligible Receivables for which an
Adjustment Payment and a Seller Adjustment Payment have been made pursuant to
the Pooling Agreement and the Receivables Sale Agreement, respectively (which
are payable by the Seller in accordance with subsection 2.06(a) of the
Receivables Sale Agreement), the amount of Receivables originated, the amount of
Ineligible Receivables (if any) identified on the Reported Day, and such other
information as the Company, the Trustee or such Agent may reasonably request.
The Daily Report may be delivered in an electronic format mutually agreed upon
by the Servicer and the Trustee, or pending such agreement, by facsimile. By
delivery of a Daily Report, the Servicer shall be deemed to have made a
representation and warranty that all information set forth therein is true and
correct in all material respects.
SECTION 4.02. Delivery of Monthly Settlement Statement. Unless
otherwise specified in the Supplement with respect to any Outstanding Series,
the Servicer hereby covenants and agrees that it shall deliver to the Company,
the Trustee, the relevant Agent, if any, and each Rating Agency by 11:00 a.m.,
New York City time, on each Settlement Report Date, a certificate of a
Responsible Officer of the Servicer substantially in the form attached to the
related Supplement for each such Outstanding Series (a "Monthly Settlement
Statement") setting forth, as of the last day of the Settlement Period most
recently ended and for such Settlement Period, (a) the information described in
the form of such Monthly Settlement Statement with such changes as may be agreed
to by the Servicer, the Company, the Trustee and the relevant Agent, if any,
subject to satisfaction of the Rating Agency Condition (unless a Responsible
Officer of the Servicer certifies that such changes could not reasonably be
expected to have a materially adverse effect
<PAGE>
Servicing Agreement 13
on the interests of the Trust or the Investor Certificateholders for the
applicable Series under the Transaction Documents) and (b)such other information
as the Trustee or the relevant Agent, if any, may reasonably request. Such
certificate shall include a certification by a Responsible Officer of the
Servicer that, to such Responsible Officer's knowledge, the information
contained therein is true and correct in all material respects and the Servicer
has performed all of its respective obligations in all material respects under
each Transaction Document to which it is a party throughout such preceding
Settlement Period (or, if there has been a default in the performance of any
such obligation, specifying each such default known to such Responsible Officer
and the nature and status thereof). A copy of each Monthly Settlement Statement
may be obtained by any Holder by a request in writing to the Trustee addressed
to the Corporate Trust Office.
SECTION 4.03. Delivery of Annual Servicer's Certificates. The
Servicer agrees that it shall deliver to the Company, the Trustee, each Agent
and each Rating Agency, a certificate of a Responsible Officer of the Servicer
substantially in the form of Exhibit A hereto, certifying that:
(a) a review of its activities during the preceding calendar
year (or in the case of the first such certificate issued after the
Initial Closing Date, during the period from such date) and of its
performance under each Transaction Document was made under the
supervision of such Responsible Officer;
(b) to such Responsible Officer's knowledge, based on such
review, it has performed its obligations in all material respects under
each Transaction Document throughout the period covered by such
certificate (or, if there has been a material default in the
performance of any such obligation, specifying each such default known
to such Responsible Officer and the nature and status thereof); and
(c) each Daily Report and Monthly Settlement Statement
delivered during such period was accurate and correct in all material
respects, except as specified in such certificate or as corrected in
any Daily Report subsequently delivered during such period.
Such certificate shall be delivered by the Servicer within 90 days after the end
of each calendar year commencing with
<PAGE>
Servicing Agreement 14
the year ending December 31, 1998. A copy of each such certificate may be
obtained by any Holder by a request in writing to the Trustee addressed to the
Corporate Trust Office.
SECTION 4.04. Delivery of Independent Public Accountants'
Servicing Reports. The Servicer shall cause Independent Public Accountants to
furnish to the Company, the Trustee, each Agent and each Rating Agency within
120 days following the last day of each of its fiscal years (commencing with the
fiscal year ending on or about December 31, 1998) a letter to the effect that
such firm has performed certain agreed-upon procedures (as set forth in
Exhibit B hereto) relating to it and its performance hereunder during the
preceding fiscal year and describing such accountants' findings with respect to
such procedures. A copy of such report may be obtained by any Holder by a
request in writing to the Trustee addressed to the Corporate Trust Office.
SECTION 4.05. Extension, Amendment and Adjustment of
Receivables; Amendment of Policies. (a) The Servicer hereby covenants and
agrees with the Company and the Trustee that it shall not extend, rescind,
cancel, amend or otherwise modify, or attempt or purport to extend, rescind,
cancel, amend or otherwise modify, the terms of, or grant any Dilution
Adjustment to, any Receivable, or otherwise take any action that is intended to
cause or permit an Eligible Receivable to cease to be an Eligible Receivable,
except in any such case (i) in accordance with the terms of its Policies,
(ii) as required by any Requirement of Law or (iii) in the case of any Dilution
Adjustments (whether or not permitted by clause (i) or (ii)), upon the payment
by or on behalf of the Seller of a Seller Adjustment Payment pursuant to Section
2.05 of the Receivables Sale Agreement; provided that in no event shall an
Eligible Receivable becoming a Defaulted Receivable constitute a breach of this
Section 4.05. Any Dilution Adjustment authorized to be made pursuant to the
preceding sentence shall result in the reduction, on the Business Day on which
such Dilution Adjustment arises or is identified, in the aggregate Principal
Amount of Receivables used to calculate the Aggregate Receivables Amount and if
as a result of such a reduction the Aggregate Target Receivables Amount exceeds
the Aggregate Receivables Amount, the Company (in addition to the obligations of
the Seller under the Receivables Sale Agreement in respect of such Dilution
Adjustment) shall be required to pay into the Series Principal Collection Sub-
subaccount with respect to each Outstanding Series in
<PAGE>
Servicing Agreement 15
immediately available funds, within one Business Day of such determination, the
pro rata share for such Series of the amount (the "Cash Dilution Payment") by
which the Aggregate Target Receivables Amount exceeds the Aggregate Receivables
Amount.
(b) The Servicer shall not change or modify its Policies in
any material respect, except (i) if such change or modification is necessary
under any Requirement of Law, (ii) if such change or modification would not
reasonably be expected to have a Material Adverse Effect with respect to the
Servicer or (iii) if the Rating Agency Condition is satisfied with respect
thereto. The Servicer shall provide notice to the Company, the Trustee, each
Agent and each Rating Agency of any change or modification of its Policies.
SECTION 4.06. Protection of Holders' Rights. The Servicer
hereby agrees with the Company and the Trustee that it shall take no action, nor
intentionally omit to take any action, that could reasonably be expected to
materially and adversely impair the rights, remedies or interests of the Holders
under the Transaction Documents in respect of the Receivables or any Related
Property nor shall it reschedule, revise or defer payments due on any Receivable
except in accordance with its Policies or Section 4.05 above.
SECTION 4.07. Security Interest. The Servicer hereby covenants
and agrees that it shall not sell, pledge, assign or transfer to any other
Person, or grant, create, incur, assume or suffer to exist any Lien on, any
Receivable sold and assigned to the Company or the Trust, whether now existing
or hereafter created, or any interest therein, and the Servicer shall defend the
right, title and interest of the Company and the Trust in, to and under any
Receivable sold and assigned to the Company or the Trust, whether now existing
or hereafter created, against all claims of third parties claiming through or
under the Servicer or the Company; provided, however, that nothing in this
Section 4.07 shall prevent or be deemed to prohibit the Servicer from suffering
to exist upon any of the Receivables any Permitted Liens. The foregoing covenant
is in addition to any rights to require the Seller to repurchase any Ineligible
Receivable.
SECTION 4.08. Location of Records. The Servicer hereby
covenants and agrees that it (a) shall not move its chief executive office or
any of the offices where it keeps its records with respect to any Receivables
outside of the location specified in respect thereof on Schedule 1 to the
<PAGE>
Servicing Agreement 16
Receivables Sale Agreement, in any such case, without giving 30 days prior
written notice to the Company, the Trustee, each Agent and the Rating Agencies
and (b) shall promptly take all actions (including any filings under the UCC)
required or reasonably necessary in order to continue the valid and enforceable
interest of the Company and the Trust in all Receivables.
SECTION 4.09. Visitation Rights. (a) The Servicer shall, at
any reasonable time during normal business hours on any Business Day and from
time to time, upon reasonable prior notice, and as often as may reasonably be
requested, subject to its security and confidentiality requirements, (i)
permit the Company, the Trustee, any Agent or any of their respective agents or
representatives, (A) to examine and make copies of and abstracts from its
records, books of account and documents (including computer tapes and disks)
relating to the Receivables and (B) following the termination of its appointment
as Servicer to be present at its offices and properties to administer and
control the Collection of the Receivables and to allow the Trustee access to
documents, instruments and other records (including the documents, instruments
and other records required to be transferred to a successor pursuant to Section
6.01 upon a Service Transfer, equipment and personnel that are necessary to
enable a Successor Servicer to continue servicing operations in accordance with
the terms of the Transaction Documents and (ii) permit the Company, the Trustee,
any Agent or any of their respective agents or representatives to visit its
properties to discuss its affairs, finances and accounts relating to the
Receivables or its performance hereunder or under any of the other Transaction
Documents to which it is a party with any of its officers or directors and with
its Independent Public Accountants; provided, that the Company, the Trustee or
the Agent, as the case may be, shall notify it prior to any contact with such
accountants and shall give it the opportunity to participate in such
discussions.
(b) The Servicer shall provide the Trustee with such other
information as the Trustee may reasonably request in connection with the
fulfillment of the Trustee's obligations under any Pooling and Servicing
Agreement.
SECTION 4.10. Lockbox Agreement; Lockbox Accounts. The
Servicer shall (a) maintain, and keep in full force and effect, each Lockbox
Agreement to which it is a party, except to the extent otherwise permitted under
the terms of the Transaction Documents, and (b)take all
<PAGE>
Servicing Agreement 17
reasonable actions necessary to ensure that each related Lockbox Account shall
be free and clear of, and defend each such Lockbox Account against, any writ,
order, stay, judgment, warrant of attachment or execution or similar process.
SECTION 4.11. Delivery of Financial Statements. The Servicer
shall furnish to the Company, the Trustee, each Agent and the Rating Agencies:
(i) within 120 days after the end of fiscal 1997 and within 90
days after the end of each subsequent fiscal year, the Servicer's
consolidated balance sheet and related statements of operations, cash
flows and stockholders' equity showing the consolidated financial
condition of the Servicer and its consolidated subsidiaries as of the
close of such fiscal year and the consolidated results of its
operations and the operations of such subsidiaries during such year,
all audited by Deloitte & Touche or other independent public
accountants of recognized national standing acceptable to the
Administrative Agent(as defined in the Credit Agreement) and
accompanied by an opinion of such accountants (which shall not be
qualified in any material respect) to the effect that such consolidated
financial statements fairly present the financial condition and results
of operations of the Servicer and its consolidated subsidiaries on a
consolidated basis in accordance with GAAP.
(ii) within 45 days after the end of each of the first three
fiscal quarters of each fiscal year, the Servicer's consolidated
balance sheet and related statements of operations, cash flows and
stockholders' equity showing the consolidated financial condition of
the Servicer and its consolidated subsidiaries as of the close of such
fiscal quarter and the consolidated results of their operations during
such fiscal quarter and the then-elapsed portion of the fiscal year,
all certified by a Financial Officer (as defined in the Credit
Agreement) of the Servicer as fairly presenting the consolidated
financial condition and results of operations of the Servicer and its
consolidated subsidiaries on a consolidated basis in accordance with
GAAP (except for the absence of footnotes) subject to normal year-end
audit adjustments;
(iii) concurrently with any delivery of financial statements
under sub-paragraph (i) or (ii) above, a
<PAGE>
Servicing Agreement 18
certificate of the Financial Officer certifying such statements;
(iv) promptly after the same become publicly available, copies
of all periodic and other publicly available reports, proxy statements
and, to the extent provided by the Servicer under the Credit Agreement,
other materials filed by the Servicer or any Subsidiary thereof with
the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with
any national securities exchange, or distributed to its shareholders
generally, as the case may be;
(v) if, as a result of any change in accounting principles and
policies from those as in effect on the date of this Agreement, the
consolidated financial statements of the Servicer delivered pursuant to
paragraph (i) or (ii) above will differ in any material respect from
the consolidated financial statement that would have been delivered
pursuant to such clauses had no such change in accounting principles
and policies been made, then, together with the first delivery of
financial statements pursuant to paragraph (i) and (ii) above following
such change, a schedule prepared by a Financial Officer (as defined in
the Credit Agreement) on behalf of the Servicer reconciling such
changes to what the financial statements would have been without such
changes;
(vi) within 90 days after the beginning of each fiscal year, a
copy of an operating and capital expenditure budget for such fiscal
year;
(vii) promptly following the creation or acquisition of any
Subsidiary, a certificate from a Responsible Officer, identifying such
new Subsidiary and the ownership interest of the Servicer therein;
(viii) simultaneously with the delivery of any financial
statements pursuant to paragraph (i) or (ii) above, a balance sheet and
related statements of operations, cash flows and stockholder's equity
for each unconsolidated Subsidiary for the applicable period;
(ix) promptly, a copy of all reports submitted in connection
with any material interim or special audit
<PAGE>
Servicing Agreement 19
made by independent accountants of the books of the Servicer or any
Subsidiary; and
(x) promptly, from time to time, such other information
regarding the operations, business affairs and financial condition of
the Servicer or any Subsidi ary thereof, or compliance with the terms
of any Transaction Document, or such consolidating financial statements
in each case as the Agent or any Holder may reasonably request.
SECTION 4.12. Notices. The Servicer shall furnish to the
Company, the Trustee, each Agent and each Rating Agency, promptly upon obtaining
knowledge of the occurrence of any Purchase Termination Event, Potential
Purchase Termination Event, Early Amortization Event, Potential Early
Amortization Event or Servicer Default, written notice thereof.
ARTICLE V
Other Matters Relating to the Servicer
SECTION 5.01. Merger, Consolidation, etc. The Servicer shall
neither enter into any merger, consolidation or amalgamation, nor liquidate,
wind up or dissolve itself (or suffer any liquidation or dissolution), nor make
any material change in its present method of conducting business, nor convey,
sell, transfer, lease, assign or otherwise dispose of, all or substantially all
of its property, business or assets other than the assignments and transfers
contemplated hereby; provided that the Servicer may merge into or consolidate
with any other corporation or convey, sell or transfer its property, business or
assets substantially as an entirety to another Person, if:
(a) the corporation into which it is merged or the corporation
formed by such consolidation or the Person that acquires by conveyance,
sale or transfer its property, business or assets substantially as an
entirety shall be a corporation organized and existing under the laws
of the United States of America or any State or the District of
Columbia, and, if it is not the surviving entity, such corporation
shall assume, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, the performance
of every one of its covenants and obligations hereunder; and
<PAGE>
Servicing Agreement 20
(b) it has delivered to the Trustee an officer's certificate
executed by a Vice President or other senior officer and an Opinion of
Counsel addressed to the Trust and the Trustee each stating that such
consolidation, merger, conveyance or transfer complies with this
Section 5.01 and an officer's certificate executed by a Vice President
or other senior officer stating that all conditions precedent herein
provided for relating to such transaction have been complied with.
SECTION 5.02. Indemnification of the Trust and the Trustee.
(a) The Servicer hereby agrees to indemnify and hold harmless the Company, the
Trustee for the benefit of the Holders and the Trustee and their respective
directors, officers, agents and employees (each of the foregoing, an
"Indemnified Person") from and against any loss, liability, expense, damage or
injury suffered or sustained by reason of any acts, omissions or alleged acts or
omissions of the Servicer arising out of, or relating to, its activities
pursuant to any Pooling and Servicing Agreement to which it is a party,
including but not limited to any judgment, award, settlement, reasonable
attorneys' fees and other reasonable costs or expenses incurred in connection
with the defense of any actual or threatened action, proceeding or claim;
provided that the Servicer shall not indemnify any Indemnified Person for any
liability, cost or expense of such Indemnified Person (i) arising solely from a
default by an Obligor with respect to any Receivable (except that
indemnification shall be made to the extent that such default arises out of its
failure to perform its duties or obligations under this Agreement), or (ii) to
the extent that such liability, cost or expense arises from the gross
negligence, bad faith or wilful misconduct of such Indemnified Person (or any of
its respective directors, officers, agents or employees). The provisions of this
indemnity shall run directly to, and be enforceable by, an injured party and
shall survive the termination of the Agreement or the resignation of the
Servicer.
(b) In addition to and without giving effect to any
limitations set forth in subsection (a) above, the Servicer shall indemnify and
hold harmless each Indemnified Person from and against any loss, liability,
expense, damage or injury suffered or sustained by reason of a breach by the
Servicer of any covenant contained in subsections 2.02(f) or 2.02(g) or Sections
4.05, 4.06 or 4.07 that materially and adversely affects the interest of the
Company or the Holders
<PAGE>
Servicing Agreement 21
under the Transaction Documents with respect to any Receivable (an
"Indemnification Event"), in an amount equal to the outstanding Principal Amount
at such time of such Receivable; provided that the Servicer shall not indemnify
any Indemnified Person for any liability, cost or expense of such Indemnified
Person (i) arising solely from a default by an Obligor with respect to any
Receivable (except that indemnification shall be made to the extent that such
default arises out of its failure to perform its duties or obligations under
this Agreement or its gross negligence or willful misconduct), or (ii) to the
extent that such liability, cost or expense arises from the gross negligence,
bad faith or wilful misconduct of such Indemnified Person (or any of its
respective directors, officers, agents or employees). Payment shall occur on or
prior to the 30th Business Day after the day such Indemnification Event becomes
known to the Servicer unless such Indemnification Event shall have been cured on
or before such day. The obligation of the Servicer to indemnify the Trustee for
the benefit of the Holders for any such Receivables shall constitute the sole
remedy respecting any breach of the covenants set forth in subsections 2.02(g)
or (h) or Sections 4.05, 4.06 or 4.07 with respect to such Receivables available
to Holders.
SECTION 5.03. Servicer Not to Resign. The Servicer shall not
resign from the obligations and duties hereby imposed on it except (a) upon
determination that (i) the performance of its duties hereunder is no longer
permissible under applicable law, and (ii) there is no reasonable course of
action that it could take to make the performance of its duties hereunder
permissible under applicable law or (b) if the Servicer is terminated as
Servicer pursuant to Section 6.01. Any such determination permitting the
resignation of the Servicer shall be evidenced as to clause (a)(i) above by an
Opinion of Counsel to such effect delivered to the Company, the Trustee and each
Agent. No such resignation shall become effective until a Successor Servicer or
the Trustee shall have assumed the responsibilities and obligations of the
Servicer in accordance with Section 6.02. The Trustee, the Company, each Agent
and each Rating Agency shall be notified of such resignation by the resigning
Person.
SECTION 5.04. Access to Certain Documentation and Information
Regarding the Receivables. The Servicer shall hold in trust for the Company and
the Trustee at the office of the Servicer such computer programs, books of
account and other records as are reasonably necessary to enable the
<PAGE>
Servicing Agreement 22
Trustee to determine at any time the status of the Receivables and all
collections and payments in respect thereof (including, without limitation, an
ability to recreate records evidencing the Receivables in the event of the
destruction of the originals thereof).
ARTICLE VI
Servicer Defaults;
Servicer Termination
SECTION 6.01. Servicer Defaults. If any one of the following
events (a "Servicer Default") shall occur and be continuing with respect to the
Servicer:
(a) failure by the Servicer to deliver, within two Business
Days of the earlier date set forth below in clause (i) or (ii), any
Daily Report or, within three Business Days of the earlier date set
forth below in clause (i) or (ii), any Monthly Settlement Statement, in
either case, conforming in all material respects to the requirement of
Section 4.01 or 4.02, as the case may be, in each case, after the
earlier to occur of (i) the date upon which a Responsible Officer of
the Servicer obtains knowledge of such failure or (ii) the date on
which written notice of such failure, requiring the same to be
remedied, shall have been given to the Servicer by the Company or the
Trustee, or to the Company, the Servicer and the Trustee from holders
of Investor Certificates evidencing 25% or more of the Aggregate
Invested Amount or by any Agent;
(b) failure by the Servicer to pay any amount required to be
paid by it under any Pooling and Servicing Agreement on or before the
date occurring five Business Days after the earlier to occur of (i) the
date upon which a Responsible Officer of the Servicer obtains knowledge
of such failure or (ii) the date on which written notice of such
failure, requiring the same to be remedied, shall have been given to
the Servicer by the Company or the Trustee, or to the Company, the
Servicer and the Trustee by holders of Investor Certificates evidencing
25% or more of the Aggregate Invested Amount or by any Agent;
(c) failure on the part of the Servicer duly to observe or to
perform in any material respect any other of its covenants or
agreements set forth in any Pooling
<PAGE>
Servicing Agreement 23
and Servicing Agreement, which failure has a material adverse effect on
the holders of any Outstanding Series and which material adverse effect
continues unremedied for 30 days after the date on which written notice
of such failure, requiring the same to be remedied, shall have been
given to the Company and the Servicer by the Trustee, or to the
Company, the Servicer and the Trustee by holders of Investor
Certificates evidencing 25% or more of the Aggregate Invested Amount or
by any Agent; provided, that no Servicer Default shall be deemed to
occur under this subsection with respect to a failure on the part of
the Servicer if the Servicer shall have complied with the provisions of
Section 5.02(b) with respect thereto;
(d) any representation, warranty or certification made by the
Servicer in any Pooling and Servicing Agreement or in any certificate
delivered pursuant thereto shall prove to have been incorrect in any
material respect when made or deemed made, which incorrectness has a
material adverse effect on the holders of any Outstanding Series and
which material adverse effect continues unremedied for 30 days after
the date on which written notice thereof, requiring the same to be
remedied, shall have been given to the Company and the Servicer by the
Trustee, or to the Company, the Servicer and the Trustee by holders of
Investor Certificates evidencing 25% or more of the Aggregate Invested
Amount or by any Agent; provided, that no Servicer Default shall be
deemed to occur under this subsection with respect to a failure on the
part of the Servicer if the Servicer shall have complied with the
provisions of Section 5.02(b) with respect thereto;
(e)(i) a court having jurisdiction in the premises shall enter
a decree or order for relief in respect of the Servicer in an
involuntary case under any Applicable Insolvency Law, which decree or
order is not stayed, or any other similar relief shall be granted under
any applicable Federal or state law and shall not be stayed; (ii) an
involuntary case is commenced against the Servicer under any Applicable
Insolvency Law, a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator,
trustee, custodian or other officer having similar powers over the
Servicer, or over all or a substantial part of the property of the
Servicer shall have been entered, an interim receiver,
<PAGE>
Servicing Agreement 24
trustee or other custodian of the Servicer for all or a substantial
part of the property of the Servicer is involuntarily appointed or a
warrant of attachment, execution or similar process is issued against
any substantial part of the property of the Servicer, and the
continuance of any such events in this clause (ii) for 60 days unless
dismissed, bonded or discharged; (iii) the Servicer shall at its
request have a decree or an order for relief entered with respect to
it, commence a voluntary case under the Bankruptcy Code or any
Applicable Insolvency Law, consent to the entry of a decree or an order
for relief in an involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any such law, or consent to
the appointment of or taking possession by a receiver, trustee or other
custodian of all or a substantial part of its property; (iv) the making
by the Servicer of any general assignment for the benefit of creditors;
(v) the inability or failure of the Servicer generally to pay its debts
as such debts become due; or (vi) the Board of Directors of the
Servicer adopts any resolution or otherwise authorizes action to
approve any of the foregoing; or
(f) one or more judgments for the payment of money (to the
extent not bonded or covered by insurance to the reasonable
satisfaction of the Agent) shall be rendered against the Servicer (i)
in an aggregate amount greater than $10,000,000 or (ii) that,
individually or in the aggregate, have resulted or could reasonably be
expected to result in a Material Adverse Effect with respect to the
Servicer and the same shall remain undischarged for a period of 30
consecutive days during which execution shall not be effectively
stayed, or any action shall be legally taken by a judgment creditor to
levy upon assets or properties of the Servicer to enforce such judgment
or judgments;
then, in the event of any Servicer Default, so long as the Servicer Default
shall not have been remedied or waived, the Company (with the consent of the
Trustee) may, the Company at the direction of the Trustee shall, and the Company
and the Trustee shall, at the written direction of the holders of Investor
Certificates evidencing more than 50% of the Aggregate Invested Amount voting as
a single class, by notice then given in writing to the Servicer and each Rating
Agency (a "Termination Notice"), terminate all or any part of the rights and
obligations of the Servicer as Servicer
<PAGE>
Servicing Agreement 25
under the Pooling and Servicing Agreements. Notwithstanding anything to the
contrary in this Section 6.01, a delay in or failure of performance referred to
under clause (b) above for a period of 10 Business Days after the applicable
grace period or a delay in or failure of performance referred to under clauses
(a), (c) or (d) above for a period of 30 Business Days after the applicable
grace period shall not constitute a Servicer Default, if such delay or failure
could not have been prevented by the exercise of reasonable diligence by the
Servicer and such delay or failure was caused by a Force Majeure Delay. After
receipt by the Servicer of a Termination Notice, and on the date that a
Successor Servicer shall have been appointed by the Company and the Trustee
pursuant to Section 6.02, all authority and power of the Servicer under any
Pooling and Servicing Agreement to the extent specified in such Termination
Notice shall pass to and be vested in a Successor Servicer (a "Service
Transfer"), as the case may be; and, without limitation, the Trustee is hereby
directed, authorized and empowered (upon the failure of the Servicer to
cooperate) to execute and deliver, on behalf of the Servicer, as attorney-
in-fact or otherwise, all documents and other instruments upon the failure of
the Servicer to execute or to deliver such documents or instruments, and to do
and to accomplish all other acts or things necessary or appropriate to effect
the purposes of such Service Transfer and the Trustee shall incur no liability
in connection with effecting such Service Transfer. The Servicer agrees to
cooperate with the Company and the Trustee and such Successor Servicer in
effecting the termination of the responsibilities and rights of the Servicer to
conduct its duties hereunder, including, without limitation, the transfer to
such Successor Servicer of all authority of the Servicer to service the
Receivables provided for under the Pooling and Servicing Agreements (including,
without limitation, all authority over all Collections that shall on the date of
transfer be held by the Servicer for deposit, or that have been deposited by the
Servicer, in the Collection Account, or that shall thereafter be received with
respect to the Receivables), and in assisting the Successor Servicer. Upon a
Service Transfer, the terminated Servicer shall (x) promptly assemble all of its
documents, instruments and other records (including credit files, licenses (to
the extent transferable), rights, copies of all relevant computer programs and
any necessary licenses (to the extent transferable) for the use thereof, related
material, computer tapes, disks, cassettes and data) that (i) evidence or record
Receivables sold and assigned to the Trust and (ii) are otherwise necessary to
enable a Successor Servicer
<PAGE>
Servicing Agreement 26
to coordinate servicing of all such Receivables and to prepare and deliver Daily
Reports and Monthly Settlement Statements, with or without the participation of
the terminated Servicer, (y) promptly deliver or license (to the extent
transferable) the use of all of the foregoing documents, instruments and other
records to such Successor Servicer at a place designated by such Successor
Servicer and (z) provide the Successor Servicer with access to its facilities,
equipment, personnel, systems and leasehold agreements to assist the Successor
Servicer in performing its obligations hereunder. In recognition of the
terminated Servicer's need to have access to any such documents, instruments and
other records that may be transferred to a Successor Servicer hereunder, whether
as a result of its continuing responsibility as a servicer of accounts
receivable that are not sold and assigned to the Trust or otherwise, such
Successor Servicer shall provide to the terminated Servicer reasonable access to
such documents, instruments and other records transferred by the terminated
Servicer to it in connection with any activity arising in the ordinary course of
the terminated Servicer's business; provided that the terminated Servicer shall
not disrupt or otherwise interfere with the Successor Servicer's use of and
access to such documents, instruments and other records. To the extent that
compliance with this Section 6.01 shall require the terminated Servicer to
disclose to the Successor Servicer information of any kind that the terminated
Servicer reasonably deems to be confidential, the Successor Servicer shall be
required to enter into such customary licensing and confidentiality agreements
as the terminated Servicer shall reasonably deem necessary to protect its
interests. All costs and expenses incurred by the terminated Servicer, the
Successor Servicer and the Trustee in connection with any Service Transfer shall
be for the account of the terminated Servicer, as the case may be, and to the
extent any costs or expenses incurred by the Trustee are not so paid, the
Trustee shall be entitled to be paid such items from amounts that would
otherwise be distributable to the Company under Article III of the Pooling
Agreement.
SECTION 6.02. Trustee To Act; Appointment of Successor. (a) On
and after (i) the receipt by the Servicer of a Termination Notice pursuant to
Section 6.01 or (ii) the date on which the Servicer notifies the Trustee, the
Company and each Rating Agency in writing of its resignation pursuant to Section
5.03 (the "Resignation Notice"), the Servicer shall continue to perform all
servicing functions under the Pooling and Servicing
<PAGE>
Servicing Agreement 27
Agreements until the earlier of (i) the date on which a Successor Servicer
accepts its appointment and (ii) 60 days after the delivery of such Termination
Notice or Resignation Notice, as the case may be. The Trustee and the Company,
or the Company (with the consent of the Trustee) shall, as promptly as
reasonably possible after the receipt of a Termination Notice or Resignation
Notice, as the case may be, in accordance with the preceding sentence, appoint
an Eligible Successor Servicer as Successor Servicer (the "Successor Servicer").
The Successor Servicer shall accept its appointment by a written assumption in a
form acceptable to the Trustee and the Company.
(b) In the event that a Successor Servicer has not been
appointed or has not accepted its appointment at the time when the Servicer
ceases to act as Servicer, the Trustee without further action shall be appointed
Successor Servicer; provided, that the Trustee shall only be responsible for the
duties and liabilities of such Successor Servicer that are consistent with an
orderly collection and liquidation of the Receivables and other Trust Assets in
the manner contemplated for such liquidations in Section 7.02 of the Pooling
Agreement. The Trustee shall not be liable for any action taken or not taken in
effecting such liquidations of Receivables so long as such liquidations are
conducted in a commercially reasonable manner and on commercially reasonable
terms. The Trustee may delegate any of its servicing obligations to an affiliate
or agent in accordance with subsection 2.02(d). Notwithstanding the above, the
Trustee shall, if the Trustee is legally unable so to act, petition a court of
competent jurisdiction to appoint any Person qualifying as an Eligible Successor
Servicer as the Successor Servicer hereunder. The Servicer shall immediately
give notice to each Rating Agency of the appointment of a Successor Servicer.
(c) Upon its appointment, the Successor Servicer shall be the
successor in all respects to the Servicer with respect to servicing functions
under the Pooling and Servicing Agreements (with such changes as are agreed to
between such Successor Servicer and either the Company (with the consent of the
Rating Agencies) or the Company and the Trustee) and shall be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Servicer
by the terms and provisions hereof, and all references in any Pooling and
Servicing Agreement to the Servicer shall be deemed to refer to such Successor
Servicer. The Successor Servicer shall not be liable for, and the replaced
Servicer shall indemnify the Successor
<PAGE>
Servicing Agreement 28
Servicer against, costs incurred by the Successor Servicer as a result of any
acts or omissions of such replaced Servicer or any events or occurrences
occurring prior to the Successor Servicer's acceptance of its appointment. Any
Successor Servicer shall manage the servicing and administration of the
Receivables in accordance with the Policies of the replaced Servicer and the
terms of the Pooling and Servicing Agreements.
SECTION 6.03. Waiver of Past Defaults. Holders of Investor
Certificates evidencing more than 50% of the Aggregate Invested Amount may waive
any continuing default by the Servicer or the Company in the performance of its
respective obligations hereunder and its consequences, except a default in the
failure to make any required deposits or payments in respect of any Series of
Investor Certificates, which shall require a waiver by the holders of all of the
affected Investor Certificates. Upon any such waiver of a past default, such
default shall cease to exist, and any default arising therefrom shall be deemed
to have been remedied for every purpose of the Pooling and Servicing Agreements.
No such waiver shall extend to any subsequent or other default or impair any
right consequent thereon except to the extent expressly so waived. Either the
Company or the Servicer shall provide notice to each Rating Agency of any such
waiver.
ARTICLE VII
Miscellaneous Provisions
SECTION 7.01. Amendment. This Agreement may only be amended,
supplemented or otherwise modified from time to time if such amendment,
supplement or modification is effected in accordance with the provisions of
Section 10.01 of the Pooling Agreement.
SECTION 7.02. Termination. (a) The respective obligations and
responsibilities of the parties hereto shall terminate on the Trust Termination
Date (unless such obligations or responsibilities are expressly stated to
survive the termination of this Agreement).
(b) All authority and power granted to the Servicer under any
Pooling and Servicing Agreement shall automatically cease and terminate on the
Trust Termination Date, and shall pass to and be vested in the Company and,
without limitation, the Company is hereby authorized and
<PAGE>
Servicing Agreement 29
empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact
or otherwise, all documents and other instruments, and to do and accomplish all
other acts or things necessary or appropriate to effect the purposes of such
transfer of rights from and after the Trust Termination Date. The Servicer shall
cooperate with the Company in effecting the termination of its responsibilities
and rights to conduct servicing of the Receivables. The Servicer shall transfer
all of its records relating to the Receivables to the Company in such form as
the Company may reasonably request and shall transfer all other records,
correspondence and documents to the Company in the manner and at such times as
the Company shall reasonably request. To the extent that compliance with this
subsection 7.02(b) shall require the Servicer to disclose to the Company
information of any kind that the Servicer deems to be confidential, the Company
shall be required to enter into such customary licensing and confidentiality
agreements as the Servicer shall reasonably deem necessary to protect its
interests.
SECTION 7.03. Governing Law. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 7.04. Notices. All notices, requests and demands to or
upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered by hand, or three days
after being deposited in the mail, postage prepaid, or, in the case of telecopy
notice, when received, addressed as set forth in Section 10.05 of the Pooling
Agreement or Section 9.09 of the Receivables Sale Agreement, or to such other
address as may be hereafter notified by the respective parties hereto.
SECTION 7.05. Counterparts. This Agreement may be executed in
two or more counterparts (and by different parties on separate counterparts),
each of which shall be an original, but all of which together shall constitute
one and the same instrument. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile transmission shall be effective as delivery
of a manually executed counterpart of this Agreement.
SECTION 7.06. Third-Party Beneficiaries. This Agreement shall
inure to the benefit of and be binding upon the parties hereto and the Holders
and their respective successors and permitted assigns. Except as provided in
<PAGE>
Servicing Agreement 30
this Article VII, no other person shall have any right or obligation hereunder.
SECTION 7.07. Merger and Integration. Except as specifically
stated otherwise herein, this Agreement and the other Transaction Documents set
forth the entire understanding of the parties relating to the subject matter
hereof, and all prior understandings, written or oral, are superseded by this
Agreement and the other Transaction Documents. This Agreement may not be
modified, amended, waived, or supplemented except as provided herein.
SECTION 7.08. Headings. The headings herein are for purposes
of reference only and shall not otherwise affect the meaning or interpretation
of any provision hereof.
SECTION 7.09. No Set-Off. Except as expressly provided in this
Agreement, the Servicer agrees that it shall have no right of set-off or
banker's lien against, and no right to otherwise deduct from, any funds held in
the Collection Account for any amount owed to it by the Company, the Trust, the
Trustee or any Certificateholder.
SECTION 7.10. No Bankruptcy Petition. The Servicer hereby
covenants and agrees that, prior to the date which is one year and one day after
the Trust Termination Date, it shall not institute against, or join any other
Person in instituting against, the Company any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any Federal or state bankruptcy or similar law.
<PAGE>
Servicing Agreement 31
IN WITNESS WHEREOF, the Company, the Servicer and
the Trustee have caused this Agreement to be duly executed
by their respective officers as of the day and year first
above written.
AAM RECEIVABLES CORP.,
by /s/ Patrick S. Lancaster
------------------------------
Name: Patrick S. Lancaster
Title: Secretary
AMERICAN AXLE & MANUFACTURING, INC.,
as Servicer,
by /s/ Gary J. Witosky
------------------------------
Name: Gary J. Witosky
Title: Chief Financial Officer
THE CHASE MANHATTAN BANK, not
in its individual capacity but
solely as Trustee,
by /s/ Marcus Gustafson
------------------------------
Name: Marcus Gustafson
Title: Vice President
<PAGE>
EXHIBIT A TO
SERVICING AGREEMENT
FORM OF ANNUAL SERVICER'S CERTIFICATE
(As required to be delivered within 90 days after the end
of each calendar year of the Servicer
pursuant to Section 4.03 of the
Servicing Agreement referred to below)
[NAME OF SERVICER]
_________________________________________
AAM MASTER TRUST
_________________________________________
The undersigned, a duly authorized representative of [NAME OF
SERVICER] (the "Servicer"), as Servicer pursuant to (a) the Pooling Agreement,
dated as of October 29, 1997 (as amended, supplemented or otherwise modified
from time to time, the "Pooling Agreement"), by and among AAM Receivables Corp.
(the "Company"), American Axle & Manufacturing Inc., as Servicer and The Chase
Manhattan Bank, as Trustee (the "Trustee") and (b) the Servicing Agreement,
dated as of October 29, 1997 (as amended, supplemented or otherwise modified
from time to time, the "Servicing Agreement"; the Pooling Agreement and the
Servicing Agreement, collectively, the "Pooling and Servicing Agreements"), by
and among the Company, the Servicer and the Trustee, do hereby certify that:
1. [NAME OF SERVICER] is, as of the date hereof, the Servicer
under the Pooling and Servicing Agreements.
2. The undersigned is duly authorized pursuant to the Pooling
and Servicing Agreements to execute and deliver this Certificate to the Trustee.
3. A review of the activities of the Company and the Servicer
during the calendar year ended ______________, ____ and of its performance under
each Transaction Document was conducted under my supervision.
4. Based on such review, to my knowledge, each of the Company
and the Servicer has performed in all material respects all its obligations
under each Transaction Document and no material default in the performance of
such obligations has occurred or is continuing except as set forth in paragraph
5 below.
<PAGE>
Servicing Agreement 2
5. The following is a description of all material defaults in
the performance of the Servicer or the Company under the provisions of the
Transaction Documents known to us to have been made during the calendar year
ended _________, ___, which sets forth in detail (i) the nature of each such
default, (ii) the action taken by the Servicer and/or the Company, if any, to
remedy each such default and (iii) the current status of each default:
[If applicable, insert "None."]
6. The following is a description of each material inaccuracy
known to us to exist in any Daily Report and/or Monthly Settlement Statement
during the calendar year ended ________, ____:
Capitalized terms used in this certificate have the meanings
ascribed to them in the Pooling and Servicing Agreements.
IN WITNESS WHEREOF, the undersigned has duly executed this
Certificate this ___ day of ________, 199_.
By:
______________________________
Name:
Title:
<PAGE>
EXHIBIT B TO
SERVICING AGREEMENT
FORM OF AGREED-UPON PROCEDURES
To the Board of Directors of AAM Receivables Corp., the
Trustee, the Agent, the Rating Agencies and the Certificateholders:
At your request, we have performed the procedures enumerated
below with respect to the receivables of AAM Receivables Corp., (the "Company")
that are serviced by American Axle & Manufacturing, Inc. (the "Servicer") for
the period from ________, 199_ to ____________, 199_ as set forth in the
accompanying Monthly Settlement Statements (the "Statements") and in the five
accompanying Daily Reports (which were selected on a random basis from the
above- referenced period) (the "Daily Reports"). Capitalized terms used herein
and not defined herein shall have the meanings assigned to such terms in the
Pooling Agreement dated as of October 29, 1997, among the Company, the Servicer
and The Chase Manhattan Bank, as Trustee, as amended, supplemented or otherwise
modified to the date hereof. These procedures, which were specified by you, were
performed solely to assist you, and this report is solely for your information
and should not be used by those who did not participate in determining the
procedures. The procedures and findings are as follows:
A. We obtained all Statements for the period from _____, 199_ through
__________, 199_ (the "Fiscal Period") and performed the following:
-- We recalculated the mathematical accuracy of
the statements.
-- With respect to Receivables, we agreed the
amounts appearing as principal amounts,
amounts outstanding with respect to each
Receivable and the amount of interest paid by
Obligors with respect to each Receivable as a
result of late payment to either schedules
prepared by the Servicer or to reports
generated by the Servicer's systems.
B. For a selection of three Statements (one of which was the Statement
for the last Settlement Period of the Fiscal Period), we performed
the following procedures:
<PAGE>
2
With respect to the amount appearing as Collections on such
Statements:
-- Obtained a daily listing of Collections for
that Settlement Period and agreed the total
on the Statements to a cumulative total of
the daily listing of Collections for that
period.
-- Agreed a random sample of 10% (but at least
10) of the daily collections appearing on the
daily listing of cash Collections to the bank
statements of AAM Master Trust (the "Trust").
-- Agreed the total amount of cash Collections
allocated to the Series Collection Subaccount
of each Outstanding Series during that
Settlement Period to the Trust's bank
statements.
-- Agreed the total amount of cash Collections
allocated to the Series Principal Collection
Sub-subaccount and Series Non-Principal
Collection Sub-subaccount of each Outstanding
Series during that Settlement Period to the
Trust's bank statement.
-- Agreed the aggregate amount of Recoveries
received during that Settlement Period to the
Servicer's system-generated reports.
-- For each Obligor the amount of whose
Receivables is greater than 2.5% of the
aggregate amount of all Receivables, agreed
the aggregate amount of Receivables with
respect to such Obligor to the Seller's
system-generated reports.
With respect to the amount appearing as Defaulted Receivables:
-- Agreed the total Defaulted Receivables to the
Servicer's system-generated reports.
-- From a random sample of 10% (but at least 10)
of Defaulted Receivables during the month,
<PAGE>
3
agreed the default amount to the Obligor's
file in the Servicer's system.
With respect to the amount appearing as Adjustment Amounts:
-- Agreed the Adjustment Amount to a schedule
prepared by the Servicer.
With respect to the amount appearing as Eligible Receivables:
-- Recalculated the mathematical accuracy of the
Company's schedule of Eligible Receivables.
-- Agreed the amounts appearing in this schedule
to a Statement generated by the Servicer's
system.
With respect to the amounts appearing as Invested Percentages
applicable during that Settlement Period:
-- Agreed amounts to schedules provided by the
Servicer.
C. With respect to each of the Daily Reports, agreed amounts to the
system-generated reports provided by each Originator for such day.
D. Agreed the calculation used in computing the aggregate Servicing Fee
to the Agreement and agreed amounts appearing in the schedule of
Servicing Fee prepared by the Servicer to the Statements.
Because the above procedures do not constitute an audit made
in accordance with generally accepted auditing standards, we do not express an
opinion on any of the elements referred to above. Had we performed additional
procedures or had we made an audit of the financial statements of the Company in
accordance with generally accepted auditing standards, (other) matters might
have come to our attention that would have been reported to you. This report
relates only to the elements specified above and does not extend to any
financial statements of the Company taken as a whole.
<PAGE>
4
This report is solely for your information and is not to be
used, referred to or distributed for any other purpose.
<PAGE>
AGREEMENT FOR
INFORMATION TECHNOLOGY SERVICES
BETWEEN
AMERICAN AXLE & MANUFACTURING, INC.
AND
ELECTRONIC DATA SYSTEMS CORPORATION
<PAGE>
TABLE OF CONTENTS
AGREEMENT FOR INFORMATION TECHNOLOGY SERVICES.........................I
ARTICLE I. RELATIONSHIP MANAGEMENT.................................1
ARTICLE II. PERSONNEL..............................................1
ARTICLE III. EDS SERVICES..........................................3
ARTICLE IV. AAM'S ROLE.............................................4
ARTICLE V. ADDITIONAL PROPERTY.....................................6
ARTICLE VI. WARRANTIES AND ADDITIONAL COVENANTS....................6
ARTICLE VII. PROPRIETARY RIGHTS....................................9
ARTICLE VIII. DATA, CONFIDENTIALITY AND AUDIT RIGHTS..............11
ARTICLE IX. PAYMENTS..............................................13
ARTICLE X. DISPUTE ESCALATION, MEDIATION AND ARBITRATION..........19
ARTICLE XI. TERMINATION...........................................21
ARTICLE XII. INDEMNITIES AND LIABILITY............................23
ARTICLE XIII. MISCELLANEOUS.......................................27
AGREEMENT............................................................30
SCHEDULES............................................................36
SCHEDULE 3.2......................................................37
SCHEDULE 3.3......................................................38
SCHEDULE 3.4......................................................41
SCHEDULE 9.1......................................................42
SCHEDULE 13.8.....................................................44
<PAGE>
Agreement for Information Technology Services
This Agreement for Information Technology Services (the "Agreement"), dated as
of March 1, 1998 (the "Effective Date"), is between American Axle &
Manufacturing, Inc. a Delaware corporation ("AAM"), and Electronic Data Systems
Corporation, a Delaware corporation ("EDS") (EDS and AAM may be referred to in
this Agreement individually as a "Party" and together as the "Parties"). By way
of background, this Agreement supersedes in its entirety the Agreement for
Information Technology Services between AAM and EDS dated February 18, 1994, as
amended February 5, 1996, which is no longer of any force or effect. Under this
Agreement, AAM desires that EDS provide, and EDS desires to provide, certain
computer hardware and software operations and functions for various AAM
facilities in the United States. This Agreement documents the terms and
conditions under which AAM agrees to purchase, and EDS agrees to provide, such
services.
Article I. Relationship Management
1.1 EDS Account Executive. During the term of this Agreement, EDS will
provide an individual who will be dedicated to AAM's account and who
will maintain an office at AAM's facilities located in Detroit,
Michigan (the "EDS Account Executive"). The EDS Account Executive (a)
will be reasonably acceptable to AAM, (b) will be the primary contact
for AAM in dealing with EDS under this Agreement, (c) will have overall
responsibility for managing and coordinating the delivery of the EDS
Services, (d) will meet regularly with the AAM Representative, and (e)
will have the power and authority to make decisions with respect to
actions to be taken by EDS in the ordinary course of day-to-day
management of AAM's account in accordance with this Agreement.
1.2 AAM Representative. During the term of this Agreement, AAM will
designate a senior level individual who will be authorized to act as
AAM's primary contact for EDS in dealing with AAM under this Agreement
and who will have the power and authority to make decisions with
respect to actions to be taken by AAM under this Agreement (the "AAM
Representative"). The AAM Representative may designate a reasonable
number of additional AAM employees to be points of contact for EDS with
respect to particular matters of expertise relating to this Agreement.
These additional AAM employees will be identified in writing by AAM to
EDS and will have authority to review/approve project invoices per
Section 9.8.
Article II. Personnel
2.1 Use and Replacement of Personnel. In the event that AAM is dissatisfied
for any reason with any EDS personnel providing the Services, AAM will
give written notice of such dissatisfaction and the specific reasons
for such dissatisfaction. EDS will have 30 days from the receipt of
such notice in which to remedy such problem to the reasonable
satisfaction of AAM. In the event that AAM remains dissatisfied (in
AAM's reasonable discretion) with the EDS personnel in question after
such 30-day period, EDS will promptly replace that EDS person. EDS will
use commercially reasonable efforts to maintain an account team
providing the
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Services which is knowledgeable about AAM's business and the systems to
which the Services relate.
2.2 Use of Subcontractors. Subject to the other provisions of this Section
2.2, EDS may subcontract any portion of the Services to third parties,
including to EDS affiliates. EDS will not disclose any confidential
information of AAM to any unaffiliated subcontractor unless and until
such subcontractor has agreed in writing to protect the confidentiality
of such confidential information in a manner that is no less
restrictive than that required of EDS under Section 8.3 and then only
to the extent necessary for such subcontractor to perform those
Services subcontracted to it. EDS will remain responsible for the
obligations performed by any of its subcontractors to the same extent
as if such obligations were performed by EDS employees. Use of
subcontractors by EDS will not cause EDS charges to exceed those set
forth in Schedule 9.1.
2.3 Hiring of Employees. During the term of this Agreement and for a period
of 12 months thereafter, neither Party will solicit, directly or
indirectly, for employment or employ any employee of the other Party
who is or was actively involved in the performance, consumption or
evaluation of the Services without the prior written consent of the
other. Notwithstanding the foregoing, the Parties acknowledge and agree
that this Agreement will not prohibit (a) any executive search or
similar business controlled by EDS or by any of its affiliates from
engaging in its business in the ordinary course in a manner consistent
with past practices on behalf of clients other than EDS, (b)
solicitations through advertising or other publications of general
circulation or (c) the hiring of any employee of a Party who contacts
the other Party without such other Party having solicited such
employee.
2.4 Personnel. At the request of AAM, the AAM vice president of MIS and the
EDS vice president of operations shall meet to discuss Service Levels
and related personnel headcount requirements. Based on such
discussions, the Parties may mutually agree to revised EDS personnel
headcount and its resulting impact on pricing, Services and associated
Service Levels. If, following such discussions, the Parties do not
reach agreement, AAM may, in its sole discretion and upon thirty (30)
days written notice to EDS, direct EDS to reduce the EDS personnel
headcount and specific related Service Levels. EDS shall retain the
right to determine the identity of the personnel to be reduced.
Thereafter, the Monthly Charges in Schedule 9.1 shall be reduced by the
appropriate monthly charge for the EDS personnel so reduced. However,
if, despite the exercise of commercially reasonable efforts, EDS is
unable to reassign any of the reduced personnel within thirty (30)
days, AAM will be responsible for one-half (1/2) the monthly charge for
such unplaced personnel for an additional thirty (30) days, during
which time such unplaced personnel will not be performing Services. The
Parties shall agree in writing on appropriate adjustments to the scope
of Services and associated Service Levels resulting from the reduction
of EDS personnel. Unless and until they so agree, any degradation in
performance resulting from an EDS personnel headcount reduction
directed by AAM under this Section 2.4 will not constitute a failure by
EDS to perform the Services or meet the Service Levels. AAM shall not,
during the remainder of the term of the Agreement, utilize any internal
or third-party personnel to perform any Services substantially similar
to the Services performed by the EDS personnel reduced under this
Section 2.4.
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Article III. EDS Services
3.1 Term; Renewal. Unless terminated earlier in accordance with the
provisions of this Agreement, including but not limited to termination
by AAM as set forth in Section 11.4, the term of this Agreement will
commence on the Effective Date and will expire on February 28, 2001
(the "Expiration Date"). Thereafter, the term of this Agreement may be
extended by mutual written agreement of the Parties.
3.2 EDS Services. During the term of this Agreement, EDS will provide to
AAM, and AAM will obtain from EDS, the services described in the
Statement of Work ("SOW") at Schedule 3.2 (the "EDS Services"). As more
fully set forth in Schedule 3.2, the EDS Services generally will
consist of operation and support of AAM's client server-based
information technology systems at the following AAM locations: Detroit
Axle and Corporate (Detroit, Michigan), Detroit Forge (Detroit,
Michigan), Buffalo Axle (Buffalo, New York), Tonawanda Forge
(Tonawanda, New York), Technology Center (Rochester Hills, Michigan),
and Three Rivers (Three Rivers, Michigan). The EDS Services, and any
Additional Services are collectively referred to in this Agreement as
the "Services".
3.3 Telecommunications Services. Following the Effective Date, EDS will
provide to AAM, and AAM will obtain from EDS, its requirements for the
services set forth in Schedule 3.3 in accordance with the
responsibilities and assumptions set forth therein (the
"Telecommunications Services").
3.4 Service Levels. During the term of this Agreement, EDS will meet the
service levels and service metrics set forth in Schedule 3.2 ("the
"Service Levels"). Within ninety (90) days of the Effective Date, EDS
and AAM may jointly develop additional Service Levels applicable to the
EDS Services which shall be incorporated into this Agreement as
Schedule 3.4.
3.5 Procedures. EDS and AAM will jointly implement and utilize written
change control procedures, approval procedures and software development
methodologies in connection with the performance of their respective
obligations under this Agreement. The Parties may modify or supersede
such change control procedures and approval procedures by mutual
written agreement. EDS may modify or replace such development
methodologies at any time after consulting with the AAM Representative,
except that such modified or replacement methodologies may not increase
or otherwise alter in any material respect AAM's obligations under this
Agreement without the prior written consent of AAM.
3.6 Additional Services
(a) From EDS. In addition to the EDS Services, EDS will provide to AAM
such other information technology services as AAM may reasonably
request in writing from time to time during the term of this
Agreement via the Customer Service Request ("CSR") process and
with respect to which the Parties have reached an agreement
regarding the nature and scope of such services, the period of
time during which such services will be provided and the basis
upon which EDS will be compensated therefor (the "Additional
Services"). Such agreement with respect to any Additional Services
will be set forth in a written letter agreement which will contain
the following information, as applicable: (i) a reference to this
Agreement, which reference will be deemed to incorporate all of
3
<PAGE>
the provisions of this Agreement; (ii) the date as of which the
provisions of the letter will become effective and, if applicable,
the term or period of time during which the services or resources
referenced therein will be provided; (iii) a description of the
services or resources to be provided by EDS pursuant to the letter
and any performance standards applicable to such services or
resources; (iv) a description of AAM's responsibilities relating
to the letter, including any facilities, hardware, software or
other support that will be required; (v) the amounts payable for
the services or resources provided pursuant to the letter and the
schedule on which such amounts will be invoiced; and (vi) any
additional provisions applicable to the services or resources to
be provided pursuant to the letter that are not otherwise set
forth in this Agreement or that are exceptions to the provisions
set forth in this Agreement.
(b) From Third Parties. Nothing in this Section 3.6 or elsewhere in
this Agreement will be deemed to limit AAM's right to solicit or
use providers other than EDS (including any AAM in-house
capabilities) to render information technology services that are
in addition to, or outside the scope of, the EDS Services. AAM
agrees that if it uses a third party to perform services related
to its information technology needs, AAM will use commercially
reasonable efforts to ensure that such services will not affect
the ability of, or cost to, EDS to perform its obligations under
this Agreement, and EDS agrees to reasonably cooperate with any
such third party. As a condition to any such cooperation, the
third party must agree in writing to the security and
confidentiality obligations and procedures reasonably required by
EDS. AAM will keep EDS apprised of any material changes to AAM's
information technology environment that are made by AAM or any
third party. EDS will not be responsible or penalized for any
adverse impact on AAM, the Services or the Service Levels
resulting from the acts or omissions of AAM or a third party, but
will use commercially reasonable efforts to mitigate it.
3.7 Reliance on Instructions. In performing its obligations under
this Agreement, EDS will be entitled to rely upon any routine
instructions or information provided to EDS by the AAM
Representative or, as to areas of competency specifically
identified by the AAM Representative, by any other AAM personnel
identified by the AAM Representative, from time to time, as
having authority to provide the same on behalf of AAM in such
person's area of competency. Unless EDS knew of any error,
incorrectness or inaccuracy in such instructions or information,
EDS will incur no liability or responsibility of any kind in
relying on or complying with any such instructions or
information.
Article IV. AAM's Role
4.1 AAM's Role. During the term of this Agreement and in connection with
EDS' performance of its obligations hereunder, AAM will, at its own
cost and expense, have the obligations to EDS, and retain the
responsibilities, described below and in the SOW, Schedule 3.2.
(a) Facilities. AAM will provide to EDS at each AAM facility at which
Services are provided the following items that AAM currently
provides to its employees: space, parking, office furnishings,
janitorial service, computer hardware, computer software, voice
communication services, data communication services, utilities
(including heat
4
<PAGE>
and air conditioning), office-related equipment (telephones, file
cabinets, desks), supplies, access to duplicating and facsimile
equipment and services, and premises security services in such
facilities as are required in connection with the proper
performance of the Services provided by EDS. AAM will give EDS
access to such facilities 24 hours a day, seven days a week. AAM
will provide the AAM facilities and other items described in this
Section 4.1(a) in a manner such that they (i) are kept free of
health and safety hazards, and (ii) comply with and will be
maintained in compliance with all applicable laws.
(b) Hardware, Software, and Third Party Agreements. AAM will provide,
or cause to be provided, to EDS Access to the following items
throughout the Term of this Agreement at each AAM site as
reasonably required by EDS to perform the Services: (1) owned or
leased items of AAM hardware and related equipment (including
servers, personal computers, terminals, printers, remote job entry
workstations and similar equipment), as well as telecommunications
lines and equipment (the "AAM Hardware"); (2) AAM Software [as
defined in Section 7.1(c)] and AAM-Vendor Software [as defined in
Section 7.1(d)]; (3) maintenance or other agreements between AAM
and third parties relating to the AAM Hardware, the AAM Software,
or the AAM-Vendor Software ("Third-Party Agreements"); and (4)
such other items of additional property in accordance with Section
5.1. The term "Access" means the enjoyment of physical and legal
use and operation of the AAM Hardware, AAM Software, and
AAM-Vendor Software, and the authority to act as AAM agent with
respect to Third-Party Agreements, as required for EDS to perform
the Services. EDS will assist AAM in determining whether AAM will
need to obtain consents, licenses or other rights from AAM'
vendors in order to provide such rights to Access to EDS. AAM, at
its cost and expense, will be responsible for obtaining any
consents, licenses or other rights or for finding an alternative
solution in the event a vendor refuses consent. However,
notwithstanding the foregoing, if for any reason (including but
not limited to a determination that the costs and expenses
associated with obtaining consents, licenses or other rights or
for finding an alternative solution are unreasonable) AAM declines
or is unable to provide to EDS the right to Access any AAM
Hardware, AAM Software, AAM-Vendor Software, or any Third Party
Agreement for any reason, EDS will be relieved of any obligation
relating to the need to Access any such item in connection with
the performance of its obligations under this Agreement, if EDS
reasonably believes that such Access would cause EDS to violate
the proprietary or other rights of any third party. Nothing herein
will require EDS to violate the proprietary or other rights of any
third party. The Parties agree to execute and deliver such
instruments and documents as either Party may reasonably request
to evidence or effect the transactions contemplated by this
Article IV. The AAM Hardware, AAM Software, AAM-Vendor Software,
and Third Party Agreements include, but are not limited to, the
items set forth in Schedule 3.2 (including all Exhibits thereto)
which is based upon information provided by AAM to EDS as of the
Effective Date.
(c) Other Resources. To enable EDS to perform the Services, AAM will
make available, as applicable and as reasonably requested by EDS,
timely management decisions and information.
5
<PAGE>
Article V. Additional Property
5.1 Additional Items of Property. If any additional items of property,
whether in the form of equipment, software or otherwise, are required
by EDS to perform the Services or otherwise to meet its obligations
hereunder, whether in addition to or in replacement of any then
existing property, EDS will inform AAM and, with AAM's prior written
consent, will obtain such additional items and will provide them to AAM
at AAM's expense and on such other terms and conditions as the Parties
mutually agree. If AAM, on its own, decides to acquire any additional
items of property for use in AAM's information technology environment,
whether in addition to or in replacement of any then existing property,
AAM will consult with EDS prior to acquiring such property. If AAM does
not approve an acquisition proposed by EDS or does not obtain EDS'
consent to AAM's own acquisition of property, EDS will not be
responsible or penalized for any adverse impact on AAM, the Services or
the Service Levels resulting therefrom, but will use commercially
reasonable efforts to mitigate it. If EDS' responsibilities in
connection with this Section 5.1 (such as site preparation,
transportation, installation or maintenance) require resources in
addition to those then being used to perform the EDS Services, such
resources will be provided as Additional Services.
Article VI. Warranties and Additional Covenants
6.1 Warranties and Additional Covenants
(a) Performance. EDS represents and warrants that all Services will be
performed in a professional and workmanlike manner.
(b) AAM Information. AAM represents and warrants that the information
furnished by AAM to EDS on which EDS based the description of the
EDS Services and the charges to be paid by AAM therefor, as set
forth in this Agreement, is accurate and complete in all material
respects.
(c) Viruses. Each Party will use commercially reasonable measures to
screen any software provided or made available by it to the other
Party hereunder for the purpose of avoiding the introduction of
any "virus" or other computer software routine or hardware
components which are designed (i) to permit access or use by third
parties to the software of the other Party not authorized by this
Agreement, (ii) to disable or damage hardware or damage, erase or
delay access to software or data of the other Party or (iii) to
perform any other similar actions.
(d) Disabling Codes. EDS will not, without informing the AAM
Representative, knowingly insert into the software used by it
hereunder any code or other device which would have the effect of
disabling, damaging, erasing, delaying or otherwise shutting down
all or any portion of the Services or the hardware, software or
data used in providing the Services. EDS will not invoke such code
or other device at any time, including upon expiration or
termination of this Agreement for any reason, without AAM's prior
written consent.
(e) Year 2000. The Parties acknowledge and agree that the Services do
not include, and EDS will not be responsible for, any changes,
modifications, updates or enhancements
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to any software, systems, hardware and related equipment, data,
interfaces or processes (collectively, "items") which may be
necessary so that such items are Year 2000 Compliant. For purposes
of this Agreement, the term "Year 2000 Compliant" means that such
items (i) will operate and produce data before, on or after
January 1, 2000 (including taking into effect that such year is a
leap year), accurately and without delay, interruption or error
relating to the fact that the time at which and the date on which
such items are operating is on or after 12:00 a.m. on January 1,
2000, or (ii) will accept, calculate, process, maintain, write and
output, accurately and without delay, interruption or error, any
function referencing a time or date on or after 12:00 a.m. on
January 1, 2000, or both, whether before, on or after 12:00 a.m.
on January 1, 2000, and any time period determined or to be
determined based on any such times or dates, or both. Any Year
2000 Compliant work desired by AAM from EDS will be provided as
Additional Services. EDS will not be responsible or penalized for
any adverse impact on AAM, the Services or the Service Levels
resulting from any items of AAM or any third party not being Year
2000 Compliant or from any inaccuracies, delays, interruptions or
errors as a result of receiving data in two digit year date or
other formats that are not Year 2000 Compliant from other
software, systems, hardware and related equipment or third parties
or as a result of any changes made by AAM or any third party to
the software being operated by EDS as part of the Services.
(f) Pass-Through/Assignment of Warranties and Indemnities. EDS agrees
that it will pass through or assign to AAM any rights it obtains
under warranties and indemnities given by its third party
subcontractors or suppliers in connection with any services,
software, equipment or other products provided by EDS pursuant to
this Agreement to the extent permitted by the applicable
subcontractors or suppliers. If pass-through or assignable
warranties and indemnities reasonably acceptable to AAM are not
available from a particular subcontractor or supplier, EDS will
discuss the matter with AAM prior to engaging the particular
subcontractor or supplier, and the Parties will mutually determine
to either accept the terms available from such subcontractor or
supplier, in which case EDS will enforce the applicable warranty
or indemnity on behalf of AAM as provided below, or deal with
another vendor of comparable services, software, equipment or
other products that will provide warranties and indemnities
reasonably acceptable to AAM. In the event of a third party
software or equipment nonconformance, EDS will coordinate with,
and be the point of contact for resolution of the problem through,
the applicable vendor and, upon becoming aware of a problem, will
notify such vendor and will use commercially reasonable efforts to
cause such vendor to promptly repair or replace the nonconforming
item in accordance with such vendor's warranty. If any warranties
or indemnities may not be passed through, EDS agrees that it will,
upon the request of AAM, take reasonable action to enforce any
applicable warranty or indemnity which is enforceable by EDS in
its own name. However, EDS will have no obligation to resort to
litigation or other formal dispute resolution procedures to
enforce any such warranty or indemnity unless EDS chooses to do so
and AAM agrees to reimburse EDS for all costs and expenses
incurred in connection therewith, including reasonable attorneys'
fees and expenses.
(g) Software Development. For a period of 90 days following acceptance
of any
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Developed Software in accordance with the approval procedures
adopted by the Parties pursuant to Section 3.4, EDS warrants that
each item of Developed Software will conform in all material
respects to the written technical specifications agreed to by the
Parties in accordance with the software development methodologies
adopted by the Parties pursuant to Section 3.4. As soon as
reasonably practicable after discovery by AAM or EDS of a failure
of the Developed Software to so conform, AAM or EDS, as
applicable, will deliver to the other a statement and supporting
documentation describing in reasonable detail the alleged
nonconformance. If there is a material nonconformance that cannot
be corrected within a reasonable period of time within the scope
of the EDS Services, then EDS will use commercially reasonable
efforts to provide a repair or work around to correct such
nonconformance. The methods and techniques for correcting
nonconformances and implementing corrections will be as mutually
agreed between the Parties, except that EDS shall be relieved of
its obligations to correct nonconformances and implement
corrections until such time as the Parties mutually agree on such
methods and techniques. Any disclosure by EDS to AAM of its
methods and techniques shall be subject to Article VIII. The
foregoing warranty will not extend to any nonconformances caused
(i) by any change or modification to software without EDS' prior
written consent or (ii) by AAM operating software otherwise than
(x) in accordance with the applicable documentation, (y) for the
purpose for which it was designed or (z) on hardware not
recommended, supplied or approved in writing by EDS. Furthermore,
if, after undertaking commercially reasonable efforts to remedy a
breach by EDS of the foregoing warranty, EDS, in the exercise of
its reasonable business judgment, determines that any repair,
adjustment, modification or replacement is not feasible, or in the
event software subsequent to all repairs, adjustments,
modifications and replacements continues to fail to meet the
foregoing warranty, EDS will credit or pay to AAM, in a manner and
on a schedule agreed to by the Parties, an amount equal to the
charges actually paid by AAM to EDS for the Developed Software
that has failed to meet the foregoing warranty. Notwithstanding
the other provisions of this Section 6.1(g), upon the written
request of AAM, EDS will use commercially reasonable efforts to
correct an alleged nonconformance for which EDS is not otherwise
responsible hereunder because it is caused or contributed to by
one of the factors listed above and, to the extent that such
correction cannot be performed within the scope of the EDS
Services, such correction will be paid for by AAM at EDS' then
current commercial billing rates for the technical and programming
personnel and other materials utilized by EDS.
6.2 Disclaimer of Warranties EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN
SECTION 6.1, EDS MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR
IMPLIED, REGARDING ANY MATTER, INCLUDING THE MERCHANTABILITY,
SUITABILITY, ORIGINALITY, FITNESS FOR A PARTICULAR USE OR PURPOSE, OR
RESULTS TO BE DERIVED FROM THE USE, OF ANY INFORMATION TECHNOLOGY
SERVICE, SOFTWARE, HARDWARE OR OTHER MATERIALS PROVIDED UNDER THIS
AGREEMENT. EDS DOES NOT REPRESENT OR WARRANT THAT THE OPERATION OF ANY
SOFTWARE WILL BE UNINTERRUPTED, ERROR-FREE OR YEAR 2000 COMPLIANT.
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Article VII. Proprietary Rights
7.1 Software Definitions. For purposes of this Agreement:
(a) EDS Software. The term "EDS Software" means any Software that is
owned by EDS (and not proprietary to any other party) and is
operated by EDS in connection with the performance of the
Services.
(b) EDS-Vendor Software. The term "EDS-Vendor Software" means any
Software that is proprietary to any party other than EDS or AAM
and is licensed to EDS.
(c) AAM Software. The term "AAM Software" means any Software that is
owned by AAM (and not proprietary to any other party) and is
operated by or on behalf of AAM and identified in Schedule 3.2.
(d) AAM-Vendor Software. The term "AAM-Vendor Software" means any
Software that is proprietary to any party other than AAM or EDS
and is operated by or on behalf of AAM and identified in Schedule
3.2.
(e) Developed Software. The term "Developed Software" means any
Software that is developed and delivered by EDS under this
Agreement, and paid for by AAM, (i) including (as between EDS and
AAM) any Software Changes made by EDS to AAM Software or
AAM-Vendor Software as part of the Services, but (ii) excluding
(A) any Software Changes made by EDS to EDS Software or EDS-Vendor
Software and (B) any EDS Software or EDS Development Tools that
are used in developing, modifying or enhancing any Developed
Software hereunder and become embedded in such Developed Software.
(f) Software. The term "Software", as used in the terms that are
defined in this Section 7.1, means computer programs, together
with input and output formats, source and object codes, program
listings, data models, flow charts, outlines, narrative
descriptions, operating instructions and supporting documentation,
and includes the tangible media upon which such programs and
documentation are recorded, including all authorized
reproductions, corrections, updates, new releases and new versions
of such programs. Except as otherwise expressly provided in this
Agreement, Software includes any enhancements, translations,
modifications, updates, new releases and other changes
(collectively, "Software Changes").
7.2 EDS Software. All EDS Software will be and remain EDS' property, and
AAM will have no rights or interest therein. However, EDS will grant to
AAM, as provided in Section 11.5, a perpetual (subject to compliance
with the applicable license), royalty-free, nontransferable,
nonexclusive license to use, after the Expiration Date or the effective
date of termination by AAM, whichever is applicable, the object code
form of any application software programs (including existing
documentation) of the EDS Software (if any) then being used by EDS in
performing the Services (other than those items of EDS Software being
used at one or more EDS data centers as part of the Services) solely
for the purpose of AAM (or the Third Party Provider assuming the
obligations of EDS hereunder) performing the services previously
performed by EDS hereunder (the "Licensed Programs"), subject to EDS
and AAM entering
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into an agreement, in form and substance reasonably satisfactory to EDS
and AAM, containing such terms and conditions as may be appropriate.
Notwithstanding anything in this Agreement to the contrary, such
license will not include the right to use any Software Changes with
respect to the EDS Software other than those in use at the time the
license is granted.
7.3 EDS-Vendor Software. All EDS-Vendor Software will be and remain the
property of the applicable third party vendor(s), and, as between EDS
and AAM, any Software Changes made by EDS thereto will be owned by EDS.
EDS will obtain all consents necessary to permit EDS (and any
subcontractors of EDS engaged in accordance with this Agreement) to
Access the EDS-Vendor Software in connection with the performance of
the Services and will pay all costs and expenses associated therewith.
During the term of this Agreement, EDS will pay all required license,
installation, maintenance and upgrade fees with respect to the
EDS-Vendor Software.
7.4 AAM Software. All AAM Software will be and remain AAM's property. The
AAM Software will be made available to EDS in such form and on such
media as EDS may reasonably request, together with appropriate
documentation. To the extent that EDS makes any Software Changes to the
AAM Software under this Agreement, EDS will provide AAM, upon
expiration or termination of this Agreement for any reason or upon
AAM's reasonable request or after implementation of the AAM Software
Changes, with sufficient documentation and source code to fully utilize
such Software Changes.
7.5 AAM-Vendor Software. All AAM-Vendor Software will be and remain the
property of the applicable third party vendor(s), and, as between EDS
and AAM, any Software Changes made by EDS thereto will be owned by AAM.
The AAM-Vendor Software will be made available to EDS in such form and
on such media as EDS may reasonably request. To the extent that EDS
makes any Software Changes to the AAM-Vendor Software under this
Agreement, EDS will provide AAM, upon expiration or termination of this
Agreement for any reason or upon AAM's reasonable request or after
implementation of such Software Changes, with sufficient documentation
and source code to fully utilize such Software Changes.
7.6 Developed Software. AAM will own all Developed Software. The Developed
Software will be considered works made for hire owned by AAM. To the
extent that any Developed Software may not be considered works made for
hire under applicable law, EDS hereby irrevocably assigns to AAM
without further consideration the copyright in and to such Developed
Software. AAM hereby grants to EDS a royalty-free, nontransferable,
nonexclusive license during the term of this Agreement to use, copy,
maintain, modify, enhance and create derivative works of the Developed
Software for the sole purpose of performing Services for AAM. If any
EDS Software or EDS Development Tools used in developing, modifying or
enhancing the Developed Software hereunder are embedded in such
Developed Software, EDS hereby grants to AAM a perpetual (subject to
compliance with this sentence), royalty-free, nontransferable,
nonexclusive license to use such embedded EDS Software and EDS
Development Tools solely in connection with AAM's use and exploitation
of such Developed Software and only so long as such EDS Software and
EDS Development Tools remain embedded in such Developed Software and
are not separated therefrom.
7.7 Development Tools; Residual Knowledge. Notwithstanding anything to the
contrary in this
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Agreement, EDS (a) will retain all right, title and interest in and to
all software development tools, know-how, methodologies, processes,
technologies or algorithms used in providing the Services which are
based on trade secrets or proprietary information of EDS or are
otherwise owned or licensed by EDS (collectively, the "EDS Development
Tools") and (b) will be free to use the ideas, concepts and know-how
which are developed in the course of performing the Services and may be
retained by EDS' employees in intangible form. No licenses will be
deemed to have been granted by either Party to any of its patents,
trade secrets, trademarks or copyrights, except as otherwise expressly
provided in this Agreement. Nothing in this Agreement will require EDS
or AAM to violate the proprietary rights of any third party in any
software.
7.8 Further Assurances. EDS and AAM agree to execute and deliver such
other instruments and documents as either Party reasonably requests to
evidence or effect the transactions contemplated by this Article VII.
The provisions of this Article VII will survive the expiration or
termination of this Agreement for any reason.
Article VIII. Data, Confidentiality and Audit Rights
8.1 Data of AAM. As between EDS and AAM, information relating to AAM or its
customers (the "AAM Data") is confidential and will be and remain the
property of AAM. EDS is hereby authorized to have access to and to make
use of the AAM Data for the term of this Agreement as is appropriate
for the performance by EDS of its obligations hereunder. Upon
expiration or termination of this Agreement for any reason, EDS will,
at EDS' expense, return to AAM all of the AAM Data in EDS' possession
and in EDS' then existing machine-readable format and media. EDS will
not use the AAM Data for any purpose other than providing the Services.
8.2 Safeguarding Data. EDS will maintain safeguards against the
destruction, loss or alteration of the AAM Data in the possession of
EDS which are consistent with those written procedures established and
in use by AAM as of the Effective Date and provided to EDS. To the
extent that any such procedures have not been established, EDS will
maintain safeguards that are no less rigorous than those maintained by
EDS for its own information of a similar nature. AAM will have the
right to establish backup security for the AAM Data and to keep backup
data and data files in its possession if it so chooses; provided,
however, that EDS will have access to such backup data and data files
as is reasonably required by EDS to perform the Services under this
Agreement.
8.3 Confidentiality
(a) Scope of Obligation. Except as otherwise expressly provided in
this Agreement, EDS and AAM each agree that (i) all proprietary
information communicated to it by the other and identified as
confidential, whether before or after the Effective Date, (ii) all
information identified as confidential to which it has access in
connection with the Services, whether before or after the
Effective Date, and (iii) this Agreement and the Parties' rights
and obligations hereunder, will be and will be deemed to have been
received in confidence and will be used only for purposes of this
Agreement, and each of EDS and AAM agrees to use the same means as
it uses to protect its own confidential information, but in no
event less than reasonable means, to prevent the
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disclosure and to protect the confidentiality thereof. No such
information will be disclosed by the recipient Party without the
prior written consent of the other Party; provided, however, that
each Party may disclose this Agreement and the other Party's
confidential information to those of the recipient Party's
attorneys, auditors, insurers (if applicable), subcontractors and
full time employees who have a need to have access to such
information in connection with their employment (or engagement, if
applicable) by the recipient Party, so long as the recipient Party
requires, in the case of its auditors and insurers, that each of
them execute a confidentiality agreement containing terms and
conditions no less restrictive than those set forth in this
Section 8.3 and advises, in the case of its attorneys,
subcontractors and employees, each such attorney, subcontractor
and employee of the confidentiality obligations set forth in this
Section 8.3. In any event, compliance by each of the persons
referenced in the preceding sentence with the confidentiality
obligations set forth in this Section 8.3 will remain the
responsibility of the Party employing or engaging such persons.
(b) Exceptions. The foregoing will not prevent either Party from
disclosing information that belongs to such Party or (i) is
already known by the recipient Party without an obligation of
confidentiality other than under this Agreement, (ii) is publicly
known or becomes publicly known through no unauthorized act of the
recipient Party, (iii) is rightfully received from a third party,
(iv) is independently developed without use of the other Party's
confidential information or (v) is disclosed without similar
restrictions to a third party by the Party owning the confidential
information. If confidential information is required to be
disclosed pursuant to a requirement of a governmental authority,
such confidential information may be disclosed pursuant to such
requirement so long as the Party required to disclose the
confidential information, to the extent practicable, provides the
other Party with timely prior notice of such requirement and
coordinates with such other Party in an effort to limit the nature
and scope of such required disclosure. If confidential information
is required to be disclosed in connection with the conduct of any
mediation or arbitration proceeding carried out pursuant to
Article X, such confidential information may be disclosed pursuant
to and in accordance with the approval and at the direction of the
mediator or arbitrator, as the case may be, conducting such
proceeding. Upon written request at the expiration or termination
of this Agreement for any reason, all such documented confidential
information (and all copies thereof) owned by the requesting Party
will be returned to the requesting Party or will be destroyed,
with written certification thereof being given to the requesting
Party. The provisions of this Section 8.3 will survive the
expiration or termination of this Agreement for any reason.
8.4 Audit Rights
(a) General Employees of AAM and its auditors who are from time to
time designated by AAM and, with respect to such auditors, who
agree in writing to the security and confidentiality obligations
and procedures reasonably required by EDS will be provided with
reasonable access to any EDS facility at which the Services are
being performed to enable them to conduct audits of EDS'
performance of the Services and other matters relevant to this
Agreement, including (i) verifying the accuracy of EDS' charges to
AAM and (ii) verifying that the Services are being provided in
accordance
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with this Agreement, including any Service Levels.
(b) Procedures. Such audits may be conducted twice a year during
reasonable business hours; provided, however, that the Parties may
agree to more frequent audits as deemed reasonably necessary. AAM
will provide EDS with prior written notice of an audit. EDS will
cooperate in the audit, will make the information reasonably
required to conduct the audit available on a timely basis and will
assist the designated employees of AAM or its auditors as
reasonably necessary. If AAM requests resources beyond those
resources then assigned to the account team who are able to
provide reasonable assistance of a routine nature in connection
with such audit, such resources will be provided as Additional
Services. Records that support EDS' performance of the Services
and other matters relevant to this Agreement will be retained by
EDS in accordance with EDS' retention guidelines. Notwithstanding
anything to the contrary in this Agreement, EDS will not be
required to provide access to the proprietary data of EDS or other
EDS customers. All information learned or exchanged in connection
with the conduct of an audit, as well as the results of any audit,
is confidential and will be subject to Section 8.3.
(c) Results. Following an audit, AAM will conduct an exit conference
with EDS to discuss issues identified in the audit that pertain to
EDS, and AAM will give EDS a copy of any portion of the audit
report pertaining to EDS. The Parties will review each EDS audit
issue and will determine (i) what, if any, actions will be taken
in response to such audit issues and (ii) which Party will be
responsible for the cost to resolve such issues. Any such
determination will be based on the following criteria: (A) who the
owner of the original deficiency is; (B) who has contractual
responsibility for the improvement of internal controls; and (C)
who owns the standards against which the audit is done. Based on
the findings of an audit, the parties will negotiate in good faith
as to responsibility for costs and expenses associated with the
audit.
Article IX. Payments
9.1 Charges for EDS Services. In consideration for the performance of the
EDS Services, AAM will pay to EDS the charges set forth in Schedule
9.1. EDS will invoice AAM for (a) Monthly Charges and Desktop Support
Charges on or before the 15th of each month for Services provided in
that month, reconciled as necessary on the next monthly invoice, and
(b) Variable Voice and Data Charges on a monthly basis in arrears on or
about the 25th of the month after the month in which such charges are
incurred. Upon the reasonable request of AAM, EDS will make available
to AAM for review appropriate documentation which supports EDS' charges
and expenses under this Agreement.
9.2 Travel and Travel-Related Expenses. M will pay, or reimburse EDS for,
the reasonable travel and travel-related expenses incurred by EDS, in
accordance with AAM's standard travel reimbursement guidelines, in
connection with EDS' performance of its obligations under this
Agreement. AAM has provided EDS with a written copy of such
reimbursement guidelines as in effect on the Effective Date and will
forward to EDS a written copy of each amendment thereto on or prior to
the date on which such amendment becomes effective. AAM may book
directly, at AAM's expense, all travel arrangements with airlines,
hotels and rental cars for
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EDS personnel. For those travel and travel-related expenses that are
approved in advance by AAM and initially paid for by EDS are subject to
reimbursement by AAM, and EDS will invoice AAM separately for all such
expenses, which invoice will be sent by EDS to AAM after EDS incurs
such expenses and will contain an itemized listing of the applicable
expenses.
9.3 Other Out-of-Pocket Expenses. AAM will pay, or reimburse EDS for, the
reasonable out-of-pocket expenses, other than travel and travel-related
expenses covered by Section 9.2, incurred by EDS, with the prior
written consent of AAM, in connection with EDS' performance of its
obligations under this Agreement, including any purchases by EDS on
behalf of AAM of additional items of property pursuant to Section 5.1.
EDS will invoice AAM separately for all such out-of-pocket expenses,
which invoice will be sent by EDS to AAM after EDS incurs such expenses
and will contain an itemized listing of the applicable expenses.
9.4 Charges for Additional Services. In consideration for any agreement by
EDS to provide Additional Services, AAM will pay to EDS (a) the amounts
mutually agreed to in writing by EDS and AAM for the Additional
Services and (b) the out-of-pocket expenses incurred by EDS (in
accordance with Section 9.2 or Section 9.3, whichever is applicable) in
connection with the performance by EDS of the Additional Services.
9.5 Charges for Telecommunications Services. In consideration for the
performance of the Telecommunications Services, AAM will pay to EDS the
charges set forth in Schedule 9.1. Such charges will be included on the
invoice to be provided by EDS to AAM setting forth the charges for the
EDS Services.
9.6 Reruns. In the event that EDS incurs additional costs associated with
repeated reruns necessitated by incorrect or incomplete data or
erroneous instructions supplied to EDS by AAM or for corrections of
programming, operator or other processing errors caused by AAM, AAM
will pay EDS for such additional costs. EDS will be responsible for all
costs associated with reruns caused by its non-performance of the
Services.
9.7 Annual Adjustment to Charges
(a) Adjustments Using ECI. The Parties acknowledge and agree to use
the Employment Cost Index (not seasonally adjusted) for Total
Compensation, Private Industry Workers, White-collar occupations
excluding sales, June 1989 = 100 (the "ECI"), as the basis for
annual adjustments to the charges to be paid by AAM to EDS under
this Agreement for those Services listed in Section 9.7 (e) (the
"ECI Adjustable Charges"). The ECI is published by the Bureau of
Labor Statistics (the "BLS") of the U.S. Department of Labor. For
purposes of this Section 9.7, the most recently published ECI as
of any anniversary of the Effective Date is the "ECI Current
Index", and the "ECI Base Index" is the ECI Current Index from the
prior anniversary of the Effective Date (or, for the first
anniversary, the ECI most recently published as of the Effective
Date). If, on any anniversary of the Effective Date, the ECI
Current Index is higher than the ECI Base Index, then, effective
as of such anniversary, an adjustment to the ECI Adjustable
Charges will be made by increasing the ECI Adjustable Charges by
the percentage that the ECI Current Index increased from the ECI
Base Index. In calculating the percentage increase, the Parties
agree to round to one decimal place. If,
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on any anniversary of the Effective Date, the ECI Current Index is
lower than the ECI Base Index, no adjustment to the Adjustable
Charges will be made. If the period from the ECI Base Index to the
ECI Current Index is other than 12 months, an adjustment to a full
year will be made in the manner indicated in the example set forth
in Section 9.7(c). If an adjustment is not made on an anniversary
date for any reason, then the ECI Base Index for the following
anniversary date will be the same as the ECI Base Index for the
anniversary date on which no adjustment was made, as indicated in
the note to the third example set forth in Section 9.7(b). The ECI
is published quarterly at the end of the month following the
quarter measured, and the most recently published ECI as of the
Effective Date was the ECI published on or around January 31,
1998, for the quarter ending December 31, 1997. The Parties
acknowledge and agree that EDS will adjust the Adjustable Charges
and will advise AAM of such adjustment in writing so that the new
charges will amend this Agreement and become effective on the
applicable anniversary of the Effective Date. If no adjustment is
made on an anniversary date for any reason, EDS will advise AAM in
writing of such fact.
(b) Adjustment to Charges Example. The following is an example of the
adjustments described in Section 9.7(a). The specific numbers used
in the example are for illustration purposes only and are not
necessarily reflective of an actual calculation hereunder or the
actual ECI.
Annual Adjustment on First Anniversary Date:
<TABLE>
<S> <C>
Example Charge under this Agreement $1,500.00
ECI Current Index 136.0
ECI Base Index (as of Effective Date) 129.9
Percentage Change (136.0 - 129.9) / 129.9 = 4.7%
Charge Increased by (1+ Percentage $1,500.00 * (1 + 4.7%)
Change)
Equals Adjusted Charge $1,570.50
</TABLE>
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Annual Adjustment on Second Anniversary Date:
Adjusted Charge as of First $1,570.50
Anniversary Date
ECI Current Index 143.2
ECI Base Index (as of 136.0
First Anniversary Date)
Percentage Change (143.2 - 136.0) / 136.0 = 5.3%
Charge Increased by $1,570.50 * (1 + 5.3%)
(1+ Percentage Change)
Equals Adjusted Charge $1,653.74
Annual Adjustment on Third Anniversary Date:
Adjusted Charge as of Second $1,653.74
Anniversary Date
ECI Current Index 140.9
ECI Base Index (as of Second 143.2
Anniversary Date)
Percentage Change No adjustment is made
Charge Increased by (1+ $1,653.74 * (1 + 0.0%)
Percentage Change)
Equals Adjusted Charge* $1,653.74
* The ECI Base Index for the fourth anniversary date would be 143.2.
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(c) Change to ECI. In the event that the Bureau of Labor Statistics
should stop publishing the ECI or should substantially change the
content, format or calculation methodology of the ECI, the Parties
will substitute therefor another comparable measure published by a
mutually agreeable source, except as noted below. However, if such
change is merely to redefine the base period for the ECI from one
period to some other period, the Parties will continue to use the
index but will use the new base period figures for all future
adjustments. If the change is to the name of the ECI, the new name
will be used instead of the old name so long as the numbers
previously published for the index have not changed. If the change
is to the publication schedule, the Parties may agree in writing
to use a different publication schedule and to adjust any partial
year to a full year, if needed. The adjustment to convert a
partial year to a full year is shown below.
<TABLE>
<S> <C>
ECI Current Index as of July 19XX 151.0
ECI Base Index as of June 19XX-1 145.2
Percentage Change
(rounded to 3 decimals) (151.0- 145.2)/145.2 = 3.994%
Percent Times 12 Divided # of 3.994%* 12/13
Months in Period
Equals Percentage Change 3.7%
(rounded to 1 decimal)*
</TABLE>
*This calculation method will be used instead of the Percentage
Change calculation shown in Section 9.7(b) if the period between
the ECI Base Index and the ECI Current Index is other than 12
months.
(d) Adjustments Using Davis Survey. The Parties acknowledge and agree
to use the "Percent Change in Weighted Total Compensation" for all
levels of the Systems Integrator Jobs (the "Percent Change") as
the basis for annual adjustments to the charges to be paid by AAM
to EDS under this Agreement for those Services listed in Section
9.7(e) (the "Davis Survey Adjustable Charges"), as the Percent
Change is either reported in the Davis and Neusch Systems
Integration Survey (the "Survey") or as such Systems Integrator
Job information is otherwise made available by the consulting firm
of Davis & Neusch (or another comparable measure published or made
available by a mutually agreeable source should the Survey no
longer be published, the content or format of the Survey
substantially change or Davis & Neusch no longer makes comparable
Systems Integrator Job information available). If, on any
September 1 during the term of this Agreement, the most recently
published or available Percent Change is positive, an adjustment
to the Davis Survey Adjustable Charges will be made by increasing
the Davis Survey Adjustable Charges by such Percent Change.
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(e) Service Categories. The Parties acknowledge and agree that the
following Services will be subject to adjustment in accordance
with Section 9.7(a): Administrative, Business Analyst, Business
Analyst Advanced and Business Analyst Senior. The Parties
acknowledge and agree that the following Services will be subject
to adjustment in accordance with Section 9.7(d): Data Base
Analyst, Engineering Services Level I, Engineering Services Level
II, Engineering Services Level III, Infrastructure Analyst,
Project Manager, Systems Engineer, Systems Engineer Advanced,
Systems Engineer Senior, Systems Administrator, Systems
Administrator Advanced and Systems Administrator Associate.
9.8 Time of Payment; Disputed Amounts. Except as otherwise expressly
provided in this Agreement, any amount due to EDS under this Agreement
invoiced in an agreed-upon format and not disputed in good faith by AAM
(as provided below) will be due and payable on the 25th calendar day
following the first business day of the calendar month immediately
following the calendar month in which AAM receives the invoice from EDS
therefor. Any amount not paid when due will bear interest until paid at
a rate of interest equal to the lesser of (a) the prime rate
established from time to time by Citibank of New York plus one percent
or (b) the maximum rate of interest allowed by applicable law. If any
portion of an amount due to EDS under this Agreement is subject to a
bona fide dispute between the Parties, AAM will pay to EDS on the date
such amount is due all amounts not disputed in good faith by AAM.
Within 15 days of AAM's receipt of the invoice on which a disputed
amount appears, AAM will notify EDS in writing of the specific items in
dispute, will describe in detail AAM's reason for disputing each such
item. Within 10 days of EDS' receipt of such notice, the Parties will
negotiate in good faith pursuant to the provisions of Article X to
reach settlement on any items that are the subject of such dispute. If
AAM does not notify EDS of any items in dispute within such 15-day
period of time, AAM will be deemed to have approved and accepted such
invoice.
9.9 Taxes. There will be added to any charges under this Agreement, or
separately billed, and AAM will either pay to EDS, or reimburse EDS for
the payment of, amounts equal to any taxes, assessments, duties,
permits, fees and other charges of any kind, however designated,
assessed, charged or levied, based on, with respect to or measured by
(a) such charges, (b) this Agreement or (c) the Services (including
Telecommunication Services), software, equipment, materials or other
property (tangible or intangible), or the use thereof or the resources
used therefor, that are provided under this Agreement. Charges payable
under this Section 9.9 include state and local sales taxes, use taxes,
property taxes, telecommunications taxes, privilege taxes, excise taxes
(including federal excise taxes), value added taxes and any taxes or
amounts in lieu thereof paid or payable by EDS in respect of the
foregoing, exclusive however, of taxes based on the net income of EDS.
If EDS takes a position on any form or in any return, audit or
otherwise at the request of, or on behalf of, AAM, then AAM will be
liable for, and will pay EDS, or reimburse EDS for the payment of, all
expenses and liabilities, including taxes, additions to taxes,
penalties, interest or fines, resulting from or attributable to any
claims or assessments for taxes claimed by any taxing authority with
respect to such position. The Parties will work together to minimize
taxes and agree that, for state and local sales and use tax purposes,
the amounts payable under this Agreement will be audited, where
permissible, by the applicable taxing authority as part of EDS' state
and local sales and use tax audits.
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Article X. Dispute Escalation, Mediation and Arbitration
10.1 Dispute Escalation. In the event of any dispute, controversy or claim
of any kind or nature arising under or in connection with this
Agreement (including disputes as to the creation, validity,
interpretation, breach or termination of this Agreement) (a "Dispute"),
then upon the written request of either Party, each of the Parties will
appoint a designated senior business executive (other than the EDS
Account Executive or the AAM Representative) whose task it will be to
meet for the purpose of endeavoring to resolve the Dispute. The
designated executives will meet as often as the Parties reasonably deem
necessary in order to gather and furnish to the other all information
with respect to the matter in issue which the Parties believe to be
appropriate and germane in connection with its resolution. Such
executives will discuss the Dispute and will negotiate in good faith in
an effort to resolve the Dispute without the necessity of any formal
proceeding relating thereto. The specific format for such discussions
will be left to the discretion of the designated executives but may
include the preparation of agreed upon statements of fact or written
statements of position furnished to the other Party. No formal
proceedings for the resolution of the Dispute under Section 10.2 or
10.3 may be commenced until the earlier to occur of (a) a good faith
conclusion by the designated executives that amicable resolution
through continued negotiation of the matter in issue does not appear
likely or (b) the 30th day after the initial request to negotiate the
Dispute.
10.2 Mediation. Any Dispute that the Parties are unable to resolve through
informal discussions or negotiations pursuant to Section 10.1 will be
submitted to non-binding mediation, which will be held in Chicago,
Illinois, which the Parties agree constitutes a neutral venue. The
Parties will mutually determine who the mediator will be from a list of
mediators obtained from the American Arbitration Association office
located in Southfield, Michigan (the "AAA"). If the Parties are unable
to agree on the mediator, the mediator will be selected by the AAA.
10.3 Arbitration. Any Dispute that the Parties are unable to resolve through
mediation pursuant to Section 10.2 will be submitted to arbitration in
accordance with the following procedures:
(a) Demand for Arbitration; Location. Either Party may demand
arbitration by giving the other Party written notice to such
effect, which notice will describe, in reasonable detail, the
facts and legal grounds forming the basis for the filing Party's
request for relief and will include a statement of the total
amount of damages claimed, if any, and any other remedy sought by
that Party. The arbitration will be held before one neutral
arbitrator, which will be held in Chicago, Illinois, which the
Parties agree constitutes a neutral venue.
(b) Identification of Arbitrator. Within 30 days after the other
Party's receipt of such demand, the Parties will mutually
determine who the arbitrator will be. If the Parties are unable to
agree on the arbitrator within that time period, the arbitrator
will be selected by the AAA. In any event, the arbitrator will
have a background in, and knowledge of, the information technology
services industry and will be an appropriate person based on the
nature of the Dispute. If a person with such industry experience
is not available, the arbitrator will be chosen from the large and
complex case panel or, if an appropriate person is not available
from such panel, the retired federal judges pool.
(c) Conduct of Arbitration. The arbitration will be governed by the
Commercial
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Arbitration Rules of the AAA, except as expressly provided in this
Section 10.3. However, the arbitration will be administered by any
organization mutually agreed to in writing by the Parties. If the
Parties are unable to agree on the organization to administer the
arbitration, it will be administered by the AAA under its
procedures for large and complex cases. Pending the arbitrator's
determination of the merits of the Dispute, either Party may apply
to any court of competent jurisdiction to seek injunctive or other
extraordinary relief.
(d) Scope of Discovery. Discovery will be limited to the request for
and production of documents, depositions and interrogatories.
Interrogatories will be allowed only as follows: a Party may
request the other Party to identify by name, last known address
and telephone number (i) all persons having knowledge of facts
relevant to the Dispute and a brief description of that person's
knowledge, (ii) any experts who may be called as an expert
witness, the subject matter about which the expert is expected to
testify, the mental impressions and opinions held by the expert
and the facts known by the expert (regardless of when the factual
information was acquired) which relate to or form the basis for
the mental impressions and opinions held by the expert and (iii)
any experts who have been used for consultation, but who are not
expected to be called as an expert witness, if such consulting
expert's opinions or impressions have been reviewed by an expert
witness. All discovery will be guided by the Federal Rules of
Civil Procedure. All issues concerning discovery upon which the
Parties cannot agree will be submitted to the arbitrator for
determination.
(e) Authority of Arbitrator. In rendering an award, the arbitrator
will determine the rights and obligations of the Parties according
to the substantive and procedural laws of the State of Michigan.
The arbitrator will not have authority to award damages in excess
of the amount or other than the types allowed by Section 12.2 and
may not, in any event, make any ruling, finding or award that does
not conform to the terms and conditions of this Agreement.
(f) Joinder of Parties. Each of EDS and AAM agree that it will use
commercially reasonable efforts to join (and will allow the other
Party to join) any third party that the Parties have agreed is
indispensable to the arbitration. If any such third party does not
agree to be joined, the arbitration will proceed nonetheless.
(g) Award. The decision of, and award rendered by, the arbitrator will
be final and binding on the Parties. Upon the request of a Party,
the arbitrator's award will include written findings of fact and
conclusions of law. Judgment on the award may be entered in and
enforced by any court of competent jurisdiction. Each Party will
bear its own costs and expenses (including filing fees) with
respect to the arbitration, including one-half of the fees and
expenses of the arbitrator.
10.4 Exclusive Remedy. Other than those matters involving injunctive or
other extraordinary relief or any action necessary to enforce the award
of the arbitrator, the Parties agree that the provisions of this
Article X are a complete defense to any suit, action or other
proceeding instituted in any court or before any administrative
tribunal with respect to any Dispute or the provision of the Services
by EDS. Nothing in this Article X prevents the Parties from
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exercising their rights to terminate this Agreement in accordance with
Article XI.
Article XI. Termination
11.1 Termination for Cause. If either Party defaults in the performance of
any of its duties or obligations under this Agreement (except for a
default in payments to EDS, which will be governed by Section 11.2),
which default is not substantially cured within 60 days after written
notice is given to the defaulting Party specifying such default or,
with respect to those defaults that cannot reasonably be cured within
60 days, should the defaulting Party fail to proceed within 60 days to
commence curing the default and thereafter to proceed with reasonable
diligence to substantially cure the default, the Party not in default
may, by giving written notice thereof to the defaulting Party,
terminate this Agreement as of the date of receipt by the defaulting
Party of such notice or as of a future date specified in such notice of
termination.
11.2 Termination for Nonpayment. If AAM defaults in the payment when due of
any amount due to EDS pursuant to this Agreement and does not cure such
default within 30 days after being given written notice of such default
or otherwise does not comply with Section 9.8, EDS may, by giving
written notice thereof to AAM, terminate this Agreement as of the date
of receipt by AAM of such notice or as of a future date specified in
such notice of termination.
11.3 Termination for Bankruptcy and Related Events. Subject to Title 11,
United States Code, if either Party becomes or is declared insolvent or
bankrupt, is the subject of any proceedings relating to its
liquidation, insolvency or for the appointment of a receiver or similar
officer for it, makes an assignment for the benefit of all or
substantially all of its creditors or enters into an agreement for the
composition, extension or readjustment of all or substantially all of
its obligations, then the other Party may, by giving written notice
thereof to such Party, terminate this Agreement as of a date specified
in such notice of termination.
11.4 Termination following Benchmarking Discussions. On or after August 31,
1999, the Vice President of Operations for EDS and the Vice President,
MIS for AAM shall meet at the request of AAM to discuss information
which AAM has acquired which indicates that the charges for and
performance of the EDS Services are non-competitive with charges and
services provided by other well-managed firms in similar transactions
(the "Benchmark Information"). Based on the Benchmark Information, the
Parties will negotiate in good faith mutually acceptable adjustments to
the Services, Service Levels, and the EDS charges hereunder. If the
Parties are unable to reach agreement on any such adjustments within
thirty (30) days after the initial meeting requested by AAM under this
Section 11.4, AAM may terminate this Agreement for convenience and
without cause upon at least thirty (30) days written notice to EDS,
provided that any notice of termination under this Section 11.4 must be
delivered to EDS on or before October 31, 1999. On or before the
termination date, AAM shall pay EDS all charges and expenses due for
Services provided through the termination date, plus the sum of
$1,500,000.00 ($1.5 million).
11.5 Effect of Expiration or Termination
(a) Wind-Down. Upon expiration or termination of this Agreement for
any reason, but subject to Section 11.5(b), EDS will cease to
perform the Services, and AAM will pay to EDS all amounts due to
EDS for all Services provided and expenses incurred
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through the effective date of such expiration or termination.
(b) Transition. In connection with the expiration of this Agreement on
the Expiration Date or with the termination of this Agreement by
AAM or EDS pursuant to this Article XI, except as set forth below,
EDS will comply with AAM's reasonable directions to cause the
orderly transition and migration from EDS to AAM (or a third party
services provider undertaking, on behalf of AAM, to provide the
Services (the "Third Party Provider")) of all Services then being
performed by EDS (the "Termination Transition"). AAM will
cooperate in good faith with EDS in connection with EDS'
obligations under this Section 11.5(b) and will perform its
obligations under the Transition Plan. EDS will perform the
following obligations (and such other obligations as may be
contained in the Transition Plan) at AAM's expense, unless
otherwise stated below or in the Transition Plan. AAM acknowledges
and agrees that EDS will have no obligation to provide any form of
Termination Transition if EDS terminates this Agreement pursuant
to Section 11.1 as a result of AAM's breach of its confidentiality
obligations to EDS under Article VIII, Section 11.2, or Section
11.3.
(i) Transition Plan. EDS and AAM will work together to develop
a transition plan (the "Transition Plan") setting forth the
respective tasks to be accomplished by each Party in
connection with the Termination Transition and a schedule
pursuant to which such tasks are to be completed.
(ii) Specifications. EDS will, upon AAM's request, provide AAM
with reasonably detailed specifications for the hardware
and software needed by AAM (or the Third Party Provider) to
properly provide the Services then being performed by EDS.
(iii) Acquisition of Equipment. AAM will have the option to
purchase from EDS at its fair market value any equipment
owned by EDS and to assume the leases (provided such leases
are assumable) for any equipment leased by EDS, in each
case only to the extent that such equipment is dedicated
solely to providing the Services to AAM as of the
Expiration Date or the effective date of termination,
whichever is applicable.
(iv) Licensed Programs. Once a mutually acceptable license
agreement has been executed by the Parties, EDS will
deliver a copy of the Licensed Programs and existing
documentation to AAM and will install such copy on the
equipment of AAM (or the Third Party Provider).
(v) Vendor Software. EDS will reasonably assist AAM in AAM's
acquisition of any necessary rights to Access any
EDS-Vendor Software and existing documentation then being
used by EDS in performing the Services.
(vi) Training. EDS will provide appropriate training for the
employees of AAM (or the Third Party Provider) who will be
assuming responsibility following the Termination
Transition for operation of the software then being used by
EDS in performing the Services.
(vii) Hiring of Employees. Notwithstanding Section 2.3, AAM may
offer
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employment to any EDS employee who was an AAM employee or
an employee of General Motors' Saginaw Division who
accepted EDS' offer of employment and who is then dedicated
solely to providing the Services to AAM.
(c) Disclosure of Information. Notwithstanding anything to the
contrary in this Agreement, EDS will not be required to disclose
any of its proprietary information, whether in the nature of a
trade secret, software or otherwise, to the Third Party Provider
except to the extent that AAM is entitled to such information
under this Agreement. Prior to providing any termination
assistance to the Third Party Provider, AAM will cause the Third
Party Provider to provide EDS with written assurances, in form and
substance reasonably satisfactory to EDS, that the Third Party
Provider (i) will maintain at all times the confidentiality of any
EDS proprietary information disclosed or provided to, or learned
by, the Third Party Provider in connection therewith and (ii) will
use such information exclusively for the purposes for which AAM is
authorized to use such information pursuant to this Agreement.
(d) Charges. For so long as this Agreement remains in effect and
during the Termination Transition but subject to the last sentence
of this Section 11.5(d), AAM will pay to EDS the charges set forth
in this Agreement. If the Termination Transition provided by EDS
under this Section 11.5 requires personnel or other resources in
excess of those resources then being provided by EDS under this
Agreement, AAM will pay EDS for such additional resources at EDS'
then current commercial billing rates on such periodic basis as
the Parties agree in writing. Notwithstanding anything to the
contrary in this Agreement, all charges to be paid by AAM to EDS
during the Termination Transition (including those set forth in
Schedules 9.1) will be paid on a monthly basis in advance.
Article XII. Indemnities and Liability
12.1 Indemnities.
(a) Claims Relating to Space, Taxes and Employees. Subject to Sections
12.1(f) and 12.2, EDS and AAM each agree to indemnify and defend
the other Party and to hold the other Party harmless from any and
all claims, actions, damages, liabilities, costs and expenses,
including reasonable attorneys' fees and expenses (collectively,
"Losses"), arising out of, under or in connection with (i) any
claim for rent or utilities at any location where the indemnitor
is financially responsible under this Agreement for such rent or
utilities, (ii) any claim for wages, benefits (including workers
compensation benefits related to any of indemnitor's employees),
third party fees, taxes, assessments, duties, permits or other
charges of any nature for which the indemnitor is legally or
contractually responsible under this Agreement, as well as any
additions to tax, penalties, interest, fees or other expenses
resulting from such charges not being paid at the time or in the
manner required by applicable law, or (iii) any claim resulting
from an act or omission of the indemnitor in its capacity as an
employer of a person and relating to (A) federal, state or other
laws or regulations for the protection of persons who are members
of a protected class or category of persons, (B) sexual
discrimination or
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harassment, (C) work related injury or death, and (D) any other
aspect of the employment relationship or its termination
(including claims for breach of an express or implied contract of
employment) and including, without limitation, with respect to
each of clauses (A) through (D), claims, demands, charges,
actions, causes of action or other proceedings which arose when
the person asserting such claim, demand, charge, action, or cause
of action was or purported to be an employee of the indemnitor.
(b) Claims Relating to Personal Injury and Property Damage. Subject to
Section 12.1(f), if any act or omission of a Party or its
employees, servants, agents, or subcontractors causes or results
in (i) Losses to the tangible personal property (whether owed or
leased) of the other Party, and/or (ii) Losses for the death or
injury to any person, including, but not limited to, employees or
invitees of either Party, then such Party shall indemnify ,
defend, and hold harmless the other Party from and against any and
all such Losses resulting therefrom.
(c) Infringement Claims
(i) General. Subject to Sections 12.1(f) and 12.2 and the
limitations set forth below in this Section 12.1(c), EDS
and AAM each agree to defend the other Party against any
action to the extent that such action is based upon a claim
that the software, services, systems, hardware machinery
(other than third party software, systems, hardware, or
machinery) or confidential information provided by the
indemnitor, or any part thereof, (i) infringes a copyright
perfected under United States statute, (ii) infringes a
patent granted or trademark or mask work right recognized
under United States law or (iii) constitutes an unlawful
disclosure, use or misappropriation of another party's
trade secret. The indemnitor will bear the expense of such
defense and either settle such claim at its expense or pay
any amount of damages and attorneys' fees that are
attributable to such claim finally awarded by a court of
competent jurisdiction.
(ii) Exclusions. The indemnitor will have no liability to the
indemnitee hereunder if any claim of infringement is based
upon the use of software provided by the indemnitor
hereunder in connection or in combination with equipment,
devices or software not supplied or selected by the
indemnitor or used in a manner for which the software was
not designed. Also, the indemnitor will have no liability
if the indemnitee modifies any software provided by the
indemnitor hereunder and such infringement would not have
occurred but for such modification, or uses the software in
the practice of a patented process and there would be no
infringement in the absence of such practice, or such claim
arises out of the indemnitor's compliance with
specifications provided by the indemnitee and such
infringement would not have occurred but for such
compliance.
(iii) Additional Remedy. If software, services, systems,
hardware, machinery or confidential information becomes the
subject of a claim under this Section 12.1(c), or in the
indemnitor's opinion is likely to become the subject of
such a
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claim, then, in addition to defending the claim and paying
any damages and attorneys' fees as required above in this
Section 12.1(c), the indemnitor will either (A) replace or
modify the software, services, systems, hardware, machinery
or confidential information to make it noninfringing or
cure any claimed misuse of another's trade secret or (B)
procure for the indemnitee the right to continue using the
software, services, systems, hardware, machinery or
confidential information pursuant to this Agreement. Any
costs associated with implementing either of the above
alternatives will be borne by the indemnitor but will be
subject to Section 12.2. If neither option is available to
the indemnitor through the use of reasonable, diligent
efforts, (x) the indemnitee will return such software,
services, systems, hardware, or machinery or confidential
information to the indemnitor and (y) if requested by the
indemnitee in good faith, the Parties will negotiate,
pursuant to Article X but subject to Section 12.2, to reach
a written agreement on what, if any, monetary damages (in
addition to the indemnitor's obligation to defend the claim
and pay any damages and attorneys' fees as required above
in this Section 12.1(c)) are reasonably owed by the
indemnitor to the indemnitee as a result of the indemnitee
no longer having use of such software, services, systems,
hardware, machinery, or confidential information.
(d) Third Party Indemnification of EDS. Without limiting EDS'
liability to AAM under this Agreement, each of the Parties
acknowledge that by entering into and performing its obligations
under this Agreement EDS will not assume and should not be exposed
to the business and operational risks associated with AAM's
business which are unrelated to the EDS Services, or any software,
systems, hardware, or machinery provided by EDS hereunder, and AAM
therefore agrees, subject to Sections 12.1(f) and 12.2, to
indemnify and defend EDS and hold EDS harmless from any and all
third party Losses arising out of the conduct of AAM's business
which are unrelated to the EDS Services, or any software, systems,
hardware, or machinery provided by EDS hereunder.
(f) Procedures The indemnification obligations set forth in this
Section 12.1 will not apply unless the Party claiming
indemnification:
(i) Notice. Notifies the other promptly in writing of any
matters in respect of which the indemnity may apply and of
which the notifying Party has knowledge in order to allow
the indemnitor the opportunity to investigate and defend
the matter; provided, however, that the failure to so
notify will only relieve the indemnitor of its obligations
under this Section 12.1 if and to the extent that the
indemnitor is prejudiced thereby; and
(ii) Control of Defense. Gives the other Party full opportunity
to control the response thereto and the defense thereof,
including any agreement relating to the settlement thereof;
provided, however, that the indemnitee will have the right
to participate in any legal proceeding to contest and
defend a claim for indemnification involving a third party
and to be represented by legal counsel of its choosing, all
at the indemnitee's cost and expense. However, if the
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indemnitor fails to promptly assume the defense of the
claim, the Party entitled to indemnification may assume the
defense at the indemnitor's cost and expense.
The indemnitor will not be responsible for any settlement or
compromise made without its consent, unless the indemnitee has
tendered notice and the indemnitor has then refused to assume and
defend the claim and it is later determined that the indemnitor
was liable to assume and defend the claim. The indemnitee agrees
to cooperate in good faith with the indemnitor at the request and
expense of the indemnitor.
12.2 Liability
(a) Direct Damages. For any matter relating to or arising in
connection with this Agreement, whether based on an action or
claim in contract, equity, negligence, intended conduct, tort or
otherwise, the amount of damages recoverable against EDS for all
events, acts or omissions will not exceed, in the aggregate, the
lesser of (i) $5 million, or (ii) the aggregate amount of all
charges (exclusive of taxes, pass-through expenses and
out-of-pocket expenses) actually paid by AAM to EDS pursuant to
this Agreement during the 6-month period immediately preceding the
initial occurrence of such event, act or omission.
(b) Indirect Damages. For any matter relating to or arising in
connection with this Agreement, whether based on an action or
claim in contract, equity, negligence, intended conduct, tort or
otherwise, in no event will the measure of damages payable by EDS
include, nor will EDS be liable for, any amounts for loss of
income, profit or savings or indirect, incidental, consequential
or punitive damages of any party, including third parties.
(c) Conduct of Litigation. In connection with the conduct of any
litigation with third parties relating to any liability of either
Party to the other or to such third parties, each Party will have
all rights (including the right to accept or reject settlement
offers and to participate in such litigation) which are
appropriate to its potential responsibilities or liabilities.
(d) Contractual Statute of Limitations. No claim and demand for
mediation or arbitration or cause of action which arose out of an
event or events which occurred more than two years prior to the
filing of a demand for mediation or arbitration or suit alleging a
claim or cause of action may be asserted by either Party against
the other.
(e) Acknowledgment. EDS and AAM expressly acknowledge that the
limitations and exclusions set forth in this Section 12.2 have
been the subject of active and complete negotiation between the
Parties and represent the Parties' agreement based on the level of
risk to EDS and AAM associated with their respective obligations
under this Agreement and the payments provided under this
Agreement to EDS for such performance. The provisions of this
Article XII will survive the expiration or termination of this
Agreement for any reason.
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Article XIII. Miscellaneous
13.1 Right to Engage in Other Activities. AAM acknowledges and agrees that
EDS may provide data processing and other information technology
services for third parties at any EDS facility that EDS may utilize
from time to time for performing the Services. Nothing in this
Agreement will impair EDS' right to acquire, license, market,
distribute, develop for itself or others or have others develop for EDS
similar technology performing the same or similar functions as the
technology and Services contemplated by this Agreement.
13.2 Independent Contractors. The Parties are independent contractors, and
this Agreement will not be construed as constituting either Party as
partner, joint venturer or fiduciary of the other or to create any
other form of legal association that would impose liability on one
Party for the act or failure to act of the other or as providing either
Party with the right, power or authority (express or implied) to create
any duty or obligation of the other. Except as otherwise expressly
provided in this Agreement, each Party has the sole right and
obligation to supervise, manage, contract, direct, procure, perform or
cause to be performed all work to be performed by it pursuant to this
Agreement.
13.3 Entire Agreement; Survival. This Agreement (including the Schedules
attached hereto, each of which is incorporated into this Agreement by
this reference) constitutes the full and complete statement of the
agreement of the Parties with respect to the subject matter hereof and
supersedes any previous agreements, understandings or communications,
whether written or oral, relating to such subject matter. The
expiration or termination of this Agreement for any reason will not
release either Party from any liabilities or obligations set forth
herein which (a) the Parties have expressly agreed will survive any
such expiration or termination or (b) remain to be performed or by
their nature would be intended to be applicable following any such
expiration or termination.
13.4 Amendments; Waiver. Changes or modifications to this Agreement may not
be made orally, but only by a written amendment or revision signed by
the Parties. Any terms and conditions varying from this Agreement on
any order, invoice or other notification from either Party are not
binding on the other unless specifically accepted by the other. Unless
otherwise expressly provided in this Agreement, a delay or omission by
either Party to exercise any right or power under this Agreement will
not be construed to be a waiver thereof. No waiver of any breach of any
provision of this Agreement will constitute a waiver of any prior,
concurrent or subsequent breach of the same or any other provision
hereof.
13.5 Binding Nature; Assignment. This Agreement will be binding on the
Parties and their successors and permitted assigns (it being understood
and agreed that nothing contained in this Agreement is intended to
confer upon any other person any rights, benefits or remedies of any
kind or character whatsoever under or by reason of this Agreement).
Except as otherwise expressly provided in Section 2.3, neither Party
may, nor will it have the power to, assign this Agreement, or any part
hereof, without the consent of the other.
13.6 Export Regulations. This Agreement is expressly made subject to any
United States government laws, regulations, orders or other
restrictions regarding export from the United States of computer
hardware, software, technical data or derivatives of such hardware,
software or technical data. Notwithstanding anything to the contrary in
this Agreement, AAM
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will not directly or indirectly export (or reexport) any computer
hardware, software, technical data or derivatives of such hardware,
software or technical data, or permit the shipment of same: (a) into
(or to a national or resident of) Cuba, North Korea, Iran, Iraq, Libya,
Syria or any other country to which the United States has embargoed
goods; (b) to anyone on the U.S. Treasury Department's List of
Specially Designated Nationals, List of Specially Designated Terrorists
or List of Specially Designated Narcotics Traffickers, or the U.S.
Commerce Department's Denied Parties List; or (c) to any country or
destination for which the United States government or a United States
governmental agency requires an export license or other approval for
export without first having obtained such license or other approval.
The provisions of this Section 13.6 will survive the expiration or
termination of this Agreement for any reason.
13.7 Approvals and Similar Actions. Except as otherwise expressly provided
in this Agreement, where agreement, approval, acceptance, consent or
similar action is required of either Party by any provision of this
Agreement, such action will not be unreasonably withheld or delayed. An
approval or consent given by a Party under this Agreement will not
relieve the other Party from responsibility for complying with the
requirements of this Agreement, nor will it be construed as a waiver of
any rights under this Agreement, except as and to the extent otherwise
expressly provided in such approval or consent.
13.8 Notices. Except as otherwise expressly provided in this Agreement, all
notices under this Agreement will be in writing and will be deemed to
have been duly given if delivered personally or by courier service,
faxed or mailed by registered or certified mail, return receipt
requested, postage prepaid, to the Parties at the addresses set forth
in Schedule 13.8. All notices under this Agreement that are addressed
as provided in this Section 13.8, (a) if delivered personally or by
courier service, will be deemed given upon delivery, (b) if delivered
by facsimile, will be deemed given when confirmed and (c) if delivered
by mail in the manner described above, will be deemed given on the
fifth business day after the day it is deposited in a regular
depository of the United States mail. Either Party from time to time
may change its address or designee for notification purposes by giving
the other Party notice of the new address or designee and the date upon
which such change will become effective.
13.9 Excused Performance. Neither Party will be deemed to be in default
hereunder, or will be liable to the other, for failure to perform any
of its non-monetary obligations under this Agreement for any period and
to the extent that such failure results from acts or omissions of the
other Party or third parties, natural disasters, riots, war, civil
disorder, court order, labor dispute or any other causes beyond that
Party's reasonable control (including failures or fluctuations in
electrical power, heat, light, air conditioning or telecommunications
equipment or lines) and which it could not have prevented by reasonable
precautions or could not have remedied by the exercise of reasonable
efforts. To the extent that disaster recovery services are included in
the EDS Services, the foregoing will not limit EDS' obligation to
provide such services unless they also are affected by the force
majeure event.
13.10 Media Releases. Each Party will coordinate with the other regarding any
media release, public announcement or similar disclosure relating to
this Agreement or its subject matter and will give the other Party a
reasonable opportunity to review and comment on the content of such
release, announcement or disclosure prior to its release. This
provision does not alter the
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restrictions on the disclosure of confidential information set forth in
Section 8.3 and, subject to Section 8.3, will not be construed so as to
delay or restrict either Party from disclosing any information required
to be disclosed in order to comply with any applicable law, rule or
regulation. Notwithstanding the foregoing, EDS will have the right to
make general references to AAM and the type of services being provided
by EDS to AAM under this Agreement in EDS' promotional and marketing
materials as well as in EDS' oral and visual presentations to prospects
upon approval by AAM.
13.11 Construction Rules. The Article and Section headings and table of
contents used in this Agreement are for convenience of reference only
and will not enter into the interpretation hereof. As used in this
Agreement, unless otherwise expressly provided to the contrary, (a) any
reference to a "Section", "Article" or "Schedule" is a reference to a
Section or Article of this Agreement or a Schedule attached to this
Agreement, and (b) all references to days, months or years are
references to calendar days, months or years. To the extent that the
provisions of this Agreement and the Schedules are inconsistent, to the
extent possible such provisions will be interpreted so as to make them
consistent, and if that is not possible, the provisions of the
Schedules will prevail. If any provision of this Agreement is held to
be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions will not in any way be
affected or impaired, and such provision will be deemed to be restated
to reflect the original intentions of the Parties as nearly as possible
in accordance with applicable law. The Parties agree that this
Agreement is an executory contract as contemplated by 11 U.S.C. Section
365. In performing its obligations under this Agreement, neither Party
will be required to undertake any activity that would conflict with the
requirements of any applicable law, rule, regulation, interpretation,
judgment, order or injunction of any governmental authority. This
Agreement may be executed in multiple counterparts, each of which will
be deemed an original and all of which taken together will constitute
one instrument. The Parties acknowledge and agree that each has been
represented by legal counsel of its choice throughout the negotiation
and drafting of this Agreement, that each has participated in the
drafting hereof and that this Agreement will not be construed in favor
of or against either Party solely on the basis of a Party's drafting or
participation in the drafting of any portion of this Agreement.
13.12 Governing Law. This Agreement will be governed by and construed in
accordance with the substantive laws of the State of Michigan, without
giving effect to any choice-of-law rules that may require the
application of the laws of another jurisdiction.
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Agreement
In Witness Whereof, the Parties have duly executed and delivered this
Agreement as of the Effective Date.
AMERICAN AXLE & ELECTRONIC DATA SYSTEMS
MANUFACTURING, INC. CORPORATION
By: /s/ Michael D. Alexander By: Gary M. Burlzinski
----------------------------- -----------------------------
Title: Vice President MIS Title: Vice President
Date: 5/6/98 Date: 4/27/98
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Schedules
Schedule 3.2 - EDS Services/Statement of Work
Schedule 3.3 - Telecommunications Services
Schedule 3.4 - Service Levels
Schedule 9.1 - Charges
Schedule 13.8 - Notices
<PAGE>
Schedule 3.2
EDS Services
Statement of Work
<PAGE>
Schedule 3.2
American Axle & Manufacturing and EDS
Statement of Work
March 1, 1998
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TABLE OF CONTENTS
PROPRIETARY STATEMENT 5
SCOPE 6
INTRODUCTION 7
ASSUMPTIONS 8
APPLICATIONS SUPPORT SERVICES 10
Production Support Services 10
Application Code Correction 10
Application Documentation 11
Application Enhancements 12
Application Performance Monitoring 13
Application Problem Analysis 14
Application Security 15
Job Restart 15
Data Management Services 16
Database Maintenance 16
Software Update Installation 17
Change Management Services 18
Change Management 18
OPERATIONS SERVICES 18
Computer Operations 18
Change Control 19
Coordination of Information Technology for Engineering 20
Data Communications Network Environment Maintenance 21
Desktop Environment Maintenance 22
Disaster Recovery Procedures 24
Enforce Security 25
First Level Customer Support 26
Information Technology Asset Tracking 27
Information Technology Directional Consulting 27
Information Technology Management 28
Information Technology Planning 29
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Information Technologies Status Reporting 30
Information Technology Supplier Management 30
Markup and Rebill 31
Model Office 32
Monitor CSRs 32
Monitor Job Execution 33
Plant Floor Support 34
Production Job Backup and Recovery 34
Production Job Scheduling 35
Proposal Development 36
Special Requests 36
ACCOUNT ORGANIZATION 38
Job Descriptions 39
Account Executive 39
Administrative 39
Asset Analyst 39
Business Analyst 39
Business Analyst - Advanced 40
Business Analyst - Senior 40
Computer Operator 41
Corporate Account Manager 41
Database Administrator 41
Data Modeler 41
Engineering Systems Engineer 42
Engineering Systems Engineer - Advanced 42
Enterprise Solutions Specialist Level 1 Application Customizer 42
Enterprise Solutions Specialist Level 2 Application Customizer 43
Enterprise Solutions Specialist Level 3 Application Customizer 43
Infrastructure Analyst 44
Operations Manager 44
Project Manager 44
Site Manager 45
Systems Administrator 45
Systems Administrator Associate 45
Systems Administrator - Senior 45
Systems Engineer 46
Systems Engineer - Advanced 46
Systems Engineer - Senior 46
AAM RESPONSIBILITIES 47
Systems Operations 47
Systems and Security 47
Harware Related 48
Relationship 48
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EXHIBIT A: SCHEDULE OF NON-LEGACY APPLICATIONS TO BE SUPPORTED 49
EXHIBIT B: SCHEDULE OF LEGACY APPLICATIONS TO BE SUPPORTED 50
EXHIBIT C: SCHEDULE OF HARDWARE SUPPORTED 51
EXHIBIT D: EDS INSTALLED INFRASTRUCTURE SOFTWARE SUPPORTED 53
EXHIBIT E: DATA LINES SUPPORTED 54
EXHIBIT F: CUSTOMER CARE SERVICE METRICS 56
EXHIBIT G: DESCRIPTION OF NON-LEGACY APPLICATIONS 57
EXHIBIT H: EDS SERVICES FOR NON-LEGACY APPLICATIONS 60
EXHIBIT H: EDS SERVICES FOR NON-LEGACY APPLICATIONS (CONT'D) 61
EXHIBIT I: DESCRIPTION OF LEGACY APPLICATIONS 62
EXHIBIT J: DESCRIPTION OF SERVICES FOR LEGACY APPLICATIONS 63
EXHIBIT K. EDS PRICE PER LEGACY SYSTEM 64
EXHIBIT L. ITEMS AGREED TO BE JOINTLY DEVELOPED DURING
FIRST 90 DAYS OF AGREEMENT 65
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Proprietary Statement
The information contained in this document prepared for American Axle &
Manufacturing, Inc. (AAM), is confidential and proprietary to Electronic Data
Systems Corporation (EDS). EDS submits this document with the express
understanding that it will be held in strict confidence by AAM and will not be
duplicated or used by AAM for any purpose, in whole or in part, other than for
the evaluation of EDS, without the written consent of EDS. The subject of this
document and the matters described herein shall not be disclosed except to
employees of AAM on a need-to-know basis. If, however, a contract is awarded
to EDS, AAM shall have the right to duplicate, use, or disclose the
information to the extent provided in the resulting contract.
Copyright (C)1998 Electronic Data Systems Corporation. All rights reserved.
EDS is an equal opportunity employer, m/f/v/d.
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Scope
This Statement of Work (SOW) describes Services (the "Services") to be
performed by EDS on behalf of AAM. The Services generally include the
maintenance and operation of AAM's existing computer hardware, data
communication facilities, and software applications (including "Legacy
Applications" and "Non-Legacy Applications," as defined below), as further
described herein.
There may be, as of the Effective Date, certain projects in process or
contemplated by AAM that are related to new systems, data communications, or
infrastructure development and/or implementation that are outside the scope of
this Agreement and SOW. Such projects will be addressed under the Customer
Service Request ("CSR") process and constitute Additional Services.
There are, as of the Effective Date, certain Legacy Applications (as described
in Exhibit I) that are still required by AAM, but which AAM envisions
discontinuing over time. EDS will provide those Services specified in Exhibit
J for Legacy Applications at the charges set forth in Schedule 9.1. At such
time as AAM discontinues use of any Legacy Application, the EDS charge to AAM
will be reduced by the amount specified in Schedule 9.1 with respect to such
Legacy Application.
The services as outlined in this SOW will not commence for support of the
Enterprise Resource Planning Manufacturing system and the American Axle &
Manufacturing Human Resources and Payroll system until the specified date in
Schedule 9.1. The support of these systems will continue under separate
agreements until this specified date.
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Introduction
This SOW is organized into the following sections:
o Assumptions
o Applications Support
o Operations Support
o Account Organization
o Responsibilities
o Pricing
The Assumptions section sets forth business and technical assumptions that are
foundational to the integrity, deliverability, and pricing of the Services
described in the SOW.
The Applications Support section describes the Services that will be performed
relative to AAM Legacy and Non-Legacy Applications. Information about the
computer applications comprehended by this SOW may be found as follows:
Exhibit A "Schedule of Non-Legacy Applications to be Supported", Exhibit B
"Schedule of Legacy Applications to be Supported", Exhibit G "Description of
Non-Legacy Applications", Exhibit H "EDS Services for Non-Legacy
Applications", Exhibit I "Description of Legacy Applications, Exhibit J
"Description of Services for Legacy Applications".
The Operations Support section provides separate schedules of the types of
hardware (Exhibit C), software (Exhibit D) and communications (Exhibit E) to
be operated. It also furnishes a description of the Services that EDS will
provide related to the elements identified by those schedules.
The Account Organization section provides information depicting the proposed
EDS AAM Account organization and related job responsibilities.
The AAM Responsibilities section delineates the additional responsibilities
that AAM has with respect to this SOW.
The Services described in this document apply, as appropriate, to the AAM
locations identified in the Agreement only.
The Services described in this SOW may be extended to other future AAM
locations according to terms as may subsequently be agreed between the parties
as Additional Services.
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Assumptions
The following represent both the business and technical assumptions that are
foundational to the integrity, deliverability and pricing of the Services
described in this SOW:
Business Assumptions
o All computer hardware and software, except as otherwise noted, are
supplied and owned by AAM.
o All third-party maintenance agreements for computer hardware and
software are the responsibility of AAM.
o AAM will remain substantially in the same business during the term
of this agreement: a manufacturer of driveline systems, chassis
components, forged products, and associated Services.
o AAM will continue to do business at the locations identified in the
Agreement.
o Service availability is subject to the observance by EDS employees of
AAM recognized holidays.
o ERP Oracle Automotive and Release 11 are outside the scope of this
Agreement.
o ERP Manufacturing Support Services will commence on August 1, 1998.
o HR/Payroll support services will commence on June 1, 1999.
o AAM will pay cellular phone charges of only the Account Executive
o Any study or other documentation paid for by AAM will belong to AAM
* AAM may use this documentation for any purpose deemed appropriate
* EDS will not add their logo or EDS Confidential footer, and may
not add any information considered EDS Confidential
o Any study or other documentation paid for by EDS will belong to EDS
* EDS may use this documentation for any purpose deemed appropriate
* EDS may add their logo or EDS Confidential footer
o The list of items referenced in Exhibit L will be mutually completed
within 90 days of commencement of this agreement
o AAM will purchase the agreed upon Customer Care Center software to
monitor the network, track trouble tickets and generate reports not
to exceed $450,000.
o All Customer Care Center metrics tracking and reporting will commence
upon implementation of the aforementioned software.
o Any EDS price reductions resulting from system or process improvements
will be negotiated between the AAM Vice President of MIS and the EDS
Vice President of Operations.
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Technical Assumptions
o The quantity of servers covered by this SOW are those deployed as of
the Effective Date. Additional servers and support Services may be
added as mutually agreed upon between the Parties as Additional
Services.
o All hardware maintenance of the NT server platform is included as
part of this agreement to the extent of the manufacturers' warranty
available on a pass-through basis. Additional future maintenance is
the responsibility of AAM. UNIX server hardware maintenance has been
paid by AAM for those servers deployed as of the Effective Date.
Additional future maintenance for hardware/software is outside the
scope of this agreement.
o All AAM Personal Computers (PCs) and printer support is included as
part of this agreement to the extent of the manufacturers' warranty
available on a pass-through basis. Additional future maintenance is
the responsibility of AAM. Any changes to device configuration
standards will be mutually agreed upon by AAM and EDS. Changes to
configurations and non standard software will be charged at the time
and material rates to be agreed between the Parties.
o AAM will allow only EDS to move Information Technology (IT)
infrastructure devices.
o Cost for licenses and software that have been paid by AAM are not
within the scope of this SOW.
o Third party maintenance contracts needed to meet the agreed Service
metrics are not included in the scope of this SOW.
o Third-party software support is limited to that software that is
also developer supported. The current version and the prior version
of the software are comprehended.
o Charges are based on call volume to the Customer Care Center (CCC)
of 2100 calls per month or less. Any additional call volume sustained
over a 90 day period will result in increased staff at a rate to be
negotiated.
o Thirty (30) desktop moves/installs/software upgrades per month are
included within the scope of this SOW. Moves/installs in excess of 30
per month will be provided at EDS' standard commercial time and
material rates.
o Spare equipment and parts needed to meet the Service levels defined
in this SOW are managed by EDS and owned by AAM and are included
within the scope of this Agreement. Five spare PCs will be located in
the AAM vault.
o EDS will provide one point of contact for all computer related user
problems or assistance (see First Level Customer Support). If
problems are reported directly to a non-CCC EDS person, that person
will be responsible for alerting the CCC so that all problems may be
properly recorded and reported.
o EDS employees will have access to the EDS Intranet through the
network to access EDS productivity tools, processes, and
communications.
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Applications Support Services
EDS will perform the following services as outlined in Exhibits H and J for
the associated systems. Exhibits A and B identify at which facilities these
systems are supported. Non-Legacy Applications are described in Exhibit G.
Legacy Applications are described in Exhibit I. Applications Support Services
are grouped into three general categories:
o Production Support Services
o Data Management Services
o Change Management Services
Services pertain to all applications listed in Exhibits A and B unless
otherwise noted.
Production Support Services
Application Code Correction
Service Owner: EDS Production Support Manager
Service Description: Application Code Correction Services are delivered when
an application is in a failure state or EDS is alerted that the potential for
failure exists. EDS will coordinate the identification and correction of the
problem.
Service Trigger: Normally, the need for these Services arises from one of the
following sources:
o The software vendor alerts EDS that an error exists
o EDS observes that the application has experienced a hard failure state
o The applications system user or other person may report an application
failure
The delivery of these Services may sometimes overlap with other EDS
Application Support Services.
Service Deliverables: EDS will provide and/or utilize the following with
respect to the delivery of these Services:
o Skilled problem analysis and resolution personnel
o Hardware and software tools
o Change control procedures
o Application maintenance methodologies
In some instances EDS may use third party personnel.
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Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m. (on call 24 hours, 7 days)
Service Start: Within one hour of reported failure
Service Complete: Severity 1 A severity 1 problem is one which has caused a
mission critical function to be unavailable. Problem analysis will be begin
within one hour of reported failure. EDS will apply resources around the clock
until code is fixed.
Severity 2 A severity 2 problem is one which has caused a slowdown within a
function that is mission critical. Problem analysis will commence within one
hour of reported dysfunction unless the problem occurs during off hours - then
analysis will begin first thing on the next business day. EDS will apply
resources continually during regular business hours until the problem is
resolved.
Severity 3 A severity 3 problem is one in which a function is affected but
work-arounds are available. Problem analysis will begin within one hour of
reported dysfunction unless EDS resources are consumed addressing Severity 1
or Severity 2 problems. EDS will apply resources continually during regular
business hours unless preempted by Severity 1 or Severity 2 problems.
Application Documentation
Service Owner: EDS Site Managers
EDS Project Manager(s)
EDS Application Support Manager
Service Description: EDS will procure and maintain such documentation as the
various hardware, software, and communications vendors provide related to
their respective products. In instances where EDS has modified vendor
products, EDS will create and maintain documentation related to those changes.
EDS will communicate the implementation of system changes to affected users
and supply them documentation as needed.
Service Trigger: These Services are triggered by one or more of the following
events:
o Vendor enhancements
o AAM MIS or user requested changes
o Custom changes
o EDS Production Support group changes
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Service Deliverables: EDS will supply or maintain the following resources in
support of these Services:
o Change control procedures
o AAM provided software
o Appropriately skilled people
o AAM provided Hardware
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Service Level: No new system component will be promoted to production status
unless documentation is completed and available to affected users.
Application Enhancements
Service Owner: EDS Production Support Manager
Service Description: This Service delivered when an appropriately authorized
AAM person requests a change to an application that does not arise from a
problem condition. EDS will analyze the change to be performed and will
document and propose a recommendation for implementation and will communicate
such recommendation to the appropriate AAM person(s). In instances where some
aspect of the recommended solution causes it to be outside the scope of this
SOW, EDS will prepare a Customer Service Request (CSR) for AAM consideration
and approval. Development and implementation of Application enhancements are
outside the scope of this SOW and constitute Additional Services subject to
additional charges.
Service Trigger: Customer requirements
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled people
o AAM provided necessary Hardware
o AM provided necessary Software
o Application development methodologies
o Appropriate change control procedures
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
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Service Level: AAM and EDS will agree, on a case basis, as to a reasonable
time frame for analysis and solution recommendation. If AAM desires an
implementation schedule that cannot be met using regularly available staff,
AAM may use the CSR procedure to accelerate implementation.
Application Performance Monitoring
Service Owner: EDS Production Support Manager
Service Description: EDS will create and maintain performance specifications
for all applications. Specifications will include but not necessarily be
limited to the following:
o Scheduled run times
o Expected response times
o Required report distribution
o AAM performance issue contact(s)
EDS will take all reasonable actions to assure that application performance
specifications are met and maintained. EDS will report application performance
statistics at agreed regular intervals.
Service Trigger: Application Performance Monitoring will be ongoing. EDS will
employ AAM provided computer software for the automatic recording of
application related statistics. Special additional monitoring Service
activities may be initiated as a result of user reported poor application
performance or failure.
Service Deliverables: The following resources will be supplied by EDS in
support of Application Monitoring Services:
o Automated AAM provided application performance monitoring software
o Computer operations personnel
o Required AAM provided computer and/or other hardware
o Agreed application performance standards documentation
Delivery of this Service may require overlap with other agreed Services.
Service Metrics:
Service Level
Severity 1 A severity 1 problem is one which has caused a mission critical
function to be unavailable. Problem analysis will be begin within one hour of
reported failure. EDS will apply resources around the clock until code is
fixed.
Severity 2 A severity 2 problem is one which has caused a slowdown within a
function that is mission critical. Problem analysis will commence within one
hour of reported
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dysfunction unless the problem occurs during off hours - then analysis will
begin first thing on the next business day. EDS will apply resources
continually during regular business hours until the problem is resolved.
Severity 3 A severity 3 problem is one in which a function is affected but
work-arounds are available. Problem analysis will begin within one hour of
reported dysfunction unless EDS resources are consumed addressing Severity 1
or Severity 2 problems. EDS will apply resources continually during regular
business hours unless preempted by Severity 1 or Severity 2 problems.
Availability: Monday - Friday
8 a.m. - 5 p.m.
Application Problem Analysis
Service Owner: EDS Production Support Manager
Service Description: The Application Problem Analysis Service is delivered
when performance, results, or other non-failure problem exists related to an
application program. EDS will cause analysis of the problem to be performed
and will document and propose a recommendation for correction and communicate
such recommendation to the appropriate AAM person(s). In instances where some
aspect of the recommended solution causes it to be outside the scope of this
SOW, EDS will prepare a Customer Service Request (CSR) for AAM consideration
and approval.
Service Trigger: This Service is normally triggered when an AAM associate
alerts the Customer Care Center (CCC) that they are experiencing a performance
problem or that the application has produced undesirable or unexpected
results. A Trouble Ticket from the CCC will be generated and forwarded to EDS
Production Support.
Service Deliverables: EDS will provide and/or maintain the following:
o Appropriate methodologies
o Qualified people
o AAM provided test environment
o AAM provided tools and software
Service Metrics:
Availability: Monday - Friday
6 a.m. - 6 p.m.
Service Level: See Exhibit F
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Application Security
Service Owner: EDS Production Support Manager
EDS Operations Manager
Service Description: EDS will provide a secure applications environment
consisting of but not limited to the following:
o Physical environment - EDS will monitor computer rooms and maintain
a log related to physical access activity while EDS personnel are
present. When EDS personnel are not present, physical security is the
responsibility of AAM security forces. Working with AAM, EDS will
attempt to limit physical access to computer facilities to authorized
persons only. EDS will also make recommendations with respect to
steps, if any, that should be taken by AAM to assure that computer
room facilities are:
- Reasonably protected against fire and water damage
- Reasonably protected against power failure disruptions
o Electronic environment - EDS will ensure that centrally stored
applications and data are accessible only by authorized persons.
Service Triggers: Normally this Service is initiated by one or more of the
following:
o Software alert of an attempted security violation
o Alert to the CCC that access is denied
o Observation of physical security breech attempt
Service Deliverables: EDS will supply or maintain the following resources in
support of this Service:
o AAM supplied computer and other hardware
o AAM supplied software
o Appropriately skilled people
o Documented processes
Service Metrics:
Availability: 7 days, 24 hours
Service Level: Monthly report of security incidents, otherwise see Exhibit F.
Job Restart
Service Owner: EDS Production Support Manager
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Service Description: When a server or mainframe computer application
terminates abnormally, EDS will attempt to restart the job such that all data
is recovered, and the application hardware, software, and communications
environment is restored.
Service Trigger: An abnormal server or mainframe application termination
triggers this Service. Abnormal termination may be caused by such events as
electrical power, hardware, software, and communications failures, or by
application code error.
Service Deliverables: EDS will use all reasonable means to maintain an
operating environment such that alternate compute platforms are available as
required to deliver Job Restart Services. EDS will furnish as required, EDS or
third party personnel with the skills needed to perform all Job Restart
Services.
Service Metrics
Availability: Monday - Friday
8 a.m. - 5 p.m.
On call - 24 hours
Data Management Services
Database Maintenance
Service Owner: EDS Production Support Manager
Service Description: EDS will maintain AAM corporate databases such that,
subject to the capability of installed Database Management Software (DBMS),
information is efficiently stored, accessibility is appropriately controlled,
and response times are within agreed specifications.
Service Triggers: The following are the normal triggers for database
maintenance Services:
o Vendor requirements
o Application changes
o AAM customer requirements
Service Deliverables: EDS will provide:
o Appropriately skilled people
o Application development methodologies
o Appropriate change control procedures
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EDS will maintain the following resources in support of this Service:
o Necessary Hardware
o Necessary Software
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Service Level: AAM and EDS will agree, on a case basis, as to a reasonable
time frame for analysis and implementation.
Software Update Installation
Service Owner: EDS Production Support Manager
Service Description: EDS will receive, test, and install new Non-Legacy
Application software updates in a manner such that new releases are deployed
in the production environment. EDS and AAM will agree as to a reasonable
implementation date. If AAM desires an implementation date that cannot be
achieved using available EDS account personnel, the additional resources will
be supplied by EDS via the CSR process as an Additional Service.
Service Triggers: Software Installation Services are triggered by a
combination of new software releases from vendors and desire on the part of
AAM for their deployment.
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled people
o AAM provided hardware
o AAM provided software
o Application development methodologies
o Appropriate change control procedures
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Service Level: AAM and EDS will agree, on a case basis, as to a reasonable
time frame for analysis and implementation.
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Change Management Services
Change Management
Service Owner: EDS Manager of Production Support
EDS Manager of Operations
Service Description: After change management methodologies have been satisfied
with respect to code modifications, EDS will "promote" modified application
code to production status. EDS will also maintain and communicate, as needed,
documentation reflecting the changes effected. EDS will release new software
updates in a manner such that new versions are deployed in the production
environment.
EDS will also control changes related to hardware and data communication
technology components of the AAM system such that all affected parties are
informed and changes occur without incident.
Service Triggers: Hardware, software, and communications technology change
usually occurs as a result of one or more of the following:
o Implementation of the AAM Technology Plan
o Dynamic customer requirements
o Unanticipated system problems
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled people
o Change control methodologies
o Necessary AAM provided version control software
o Inventory of approved software licenses by individual machine.
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Operations Services
Computer Operations
Service Owner: EDS Operations Manager
EDS Site Managers
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Service Description: EDS will perform required tasks related to the operation
of the AAM server and/or mainframe computing environment including:
o Operations documentation
o Job scheduling
o Console operations
o Tape operations
o Print operations
o Job monitoring
o Capacity monitoring
o Scheduled data backup
o Scheduled system backup
Service Triggers: This Service is driven by the computer schedule.
Service Deliverables: EDS will supply and/or maintain the following resources
in support of Computer Operations Services:
o Appropriately skilled personnel
o AAM provided computer hardware
o AAM provided computer software
o Operational documentation
Availability: Monday - Friday
8 a.m. - 5 p.m.
on call 24 hours - 7 days
Change Control
Service Owner: EDS Operations Manager
Service Description: EDS will schedule all changes to supported hardware,
software, and communication components. EDS will manage the implementation of
these changes such that they are accomplished in an "event free" manner. EDS
will coordinate the documentation of all changes and communicate schedules for
change on a timely basis to all affected AAM associates and / or other
persons.
Service Triggers: Normally the need for Change Control Services is derived
from one or more of the following:
o Vendor initiated software changes
o Vendor initiated changes to computer or communications hardware
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o Alteration of AAM business processes
o Government mandates
o Errors related to production hardware, software, or communications
components
o Hardware upgrades
Service Deliverables: EDS will provide and/or maintain the following in
performance of Change Control Services:
o Change Control Methodology
o Priority list of changes
o Change Control Team
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Coordination of Information Technology for Engineering
Service Owner: EDS Site Manager for AAM Technology Center
Service Description: EDS Coordination of Information Technology Engineering
Services includes the following activities:
o Creation and maintenance of standards for engineering system
functionality and operation
o Coordination and communication of hardware and software vendor
capabilities and activities
o Coordination and communication related to the information technology
needs of AAM customers
o Coordination of information technology problem resolution
o User education
o Procurement of AAM requested and AAM approved engineering
technologies.
Service Triggers: This Service will normally be initiated as a result of one
or more of the following events:
o AAM customer requests
o Requests by hardware and/or software vendors
o User problems
Service Deliverables: EDS will provide and/or maintain the following resources
in support of these Services:
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o Software applications
o Engineering information technology hardware
o Engineering information technology communication networks
o Appropriately skilled personnel
o Appropriate educational curricula, materials, and delivery resources
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Data Communications Network Environment Maintenance
Service Owner: EDS Operations Manager
Service Description: EDS will perform or coordinate the performance of all
duties related to the procurement and/or maintenance of a data communications
network capable of delivering error-free information from point-to point as
the business needs of AAM require see Exhibit E
Service Triggers: This Service is normally initiated by one or more of the
following events:
o Incoming or outgoing data generated by:
- Computers
- Factory floor devices
- Databases
- Application programs
o User requests
o Communications technology changes
o Changes in business requirements
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Appropriate documentation
o Carrier and/or vendor relationships
AAM provided diagnostic hardware and software
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
7 Days 24 Hours (Emergency)
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Desktop Environment Maintenance
Service Owner: EDS Operations Manager
EDS Site Managers
Service Description: EDS will deploy new versions of personal computer
operating system, and applications software as authorized by AAM. EDS will
also install, relocate, and upgrade desktop hardware as requested by AAM. This
to be accomplished in a manner such that usage is not interrupted for the AAM
user.
Deployment schedules will be agreed between the parties. In the event EDS
cannot meet the requested schedules using agreed EDS staffing, AAM may
accelerate deployment by means of the CSR process as an Additional Service.
Service Triggers: This Service is normally triggered by one or more of the
following events:
o New AAM approved client software
o New AAM approved client hardware
o AAM user request
o Hardware and/or software vendor mandated changes
o New versions of software
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately Skilled personnel
o Appropriate hardware and/or software tools
o Work order procedures
o Project plans as required
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Service Metrics:
Availability: Monday - Friday
8:00 a.m. - 5 p.m. Detroit
7:30 a.m.- 4:00 Three Rivers
7:00 a.m. - 4 p.m. (Western New York)
On call 24 hours - 7 days
<TABLE>
<S> <C> <C> <C> <C>
- --------------------------------------- --------------- ----------------- ---------------- -----------------
Hardware/Software Maintenance Business Hours Business Hours Non Business Non Business
Hours Hours
- --------------------------------------- --------------- ----------------- ---------------- -----------------
Service Type Response Repair Response Repair
- --------------------------------------- --------------- ----------------- ---------------- -----------------
Server Service
- --------------------------------------- --------------- ----------------- ---------------- -----------------
* Urgent 15 Minutes 1 Hour 1 Hour 4 Hour
diagnostic Diagnostic
- --------------------------------------- --------------- ----------------- ---------------- -----------------
- --------------------------------------- --------------- ----------------- ---------------- -----------------
** Non-Urgent 1 Hour 4 Hour Next Business Next Business
Diagnostic day day
- --------------------------------------- --------------- ----------------- ---------------- -----------------
Workstation Service
- --------------------------------------- --------------- ----------------- ---------------- -----------------
* Urgent 30 Minutes 2 Hour On-Site Next Business Next Business
Diagnostic day day
- --------------------------------------- --------------- ----------------- ---------------- -----------------
- --------------------------------------- --------------- ----------------- ---------------- -----------------
** Non-Urgent 4 Hours 8 Business Next Business Next Business
Hours to Repair day day or as
or as dictated dictated by
by supplier supplier
limitations limitations
- --------------------------------------- --------------- ----------------- ---------------- -----------------
- --------------------------------------- --------------- ----------------- ---------------- -----------------
</TABLE>
* Urgent Service for LAN server is defined as that required as a result of a
hardware/software failure that affects multiple users, and/or impacts a
critical AAM production or business process. Urgent Service requests in excess
of ten in any month for single personal computers will be charged at EDS'
standard commercial rates for such Services.
** Non-Urgent is defined as that required as a result of problems /failures
that do not effect AAM critical production or business processes and are
typically related to a single or small number of personal computers.
<TABLE>
<S> <C> <C>
- ------------------------------------------------- ---------------------------- -----------------------------
Installs/Moves/Upgrades
- ------------------------------------------------- ---------------------------- -----------------------------
Response Service Response Time Time Completion
- ------------------------------------------------- ---------------------------- -----------------------------
Desktop Install 1 - 4 Units 8 Hours 3 Business Days
- ------------------------------------------------- ---------------------------- -----------------------------
5 - 10 Units 8 Hours 8 Business Days
- ------------------------------------------------- ---------------------------- -----------------------------
11 - + Units 8 Hours Scheduled as Project
- ------------------------------------------------- ---------------------------- -----------------------------
</TABLE>
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Disaster Recovery Procedures
Service Owner: EDS Production Support Manager
Service Description: EDS will maintain disaster recovery procedures that will
describe the process intended to assure timely recovery from an information
technology disaster event. Actual implementation of disaster recovery Services
are outside the scope of this SOW, but will be provided as an Additional
Service for an additional charge. Disaster Recovery Procedures will identify
the following:
o Steps to be taken in the event of a disaster
o AAM or other individuals to be involved in recovery
o Other resources required for recovery
- Disaster Recovery Plan
- Hardware
- Software
- Applications
- Data
- Facilities
o Maintenance of procedures related to the above
Service Triggers: Development and revision of Disaster Recovery Procedures are
usually triggered by one or more of the following:
o Information technology disaster
o Regular planned maintenance intervals
o Changes in the AAM production system portfolio
o Changes in AAM business needs
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o A disaster recovery plan
o Periodic disaster plan test and validation
o Offsite storage of software, applications, and data required for
recovery
o Vendor commitments for AAM provided hardware, software, and
communication resource replacement
o Appropriately skilled personnel
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Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
on call 24 hours - 7 days
Beginning September 1, 1998
Service Level: The Disaster Recovery Plan will be reviewed and updated as
required or not less than annually.
Note: EDS will provide pricing options to AAM on September 1, 1998 for a full
Disaster Recovery Services.
Enforce Security
Service Owner: EDS Operations Manager
Service Description: EDS will implement and enforce the security policies of
AAM and EDS. This Service includes, working with AAM security forces, the
physical securing of the various EDS controlled computer rooms throughout AAM
as well as the electronically stored AAM software, applications, and data. EDS
will perform ongoing oversight of both physical and electronically stored
information technology assets. EDS will report physical security violations
immediately to designated AAM security and/or AAM MIS security management
personnel. EDS will generate reports at intervals indicating agreed levels of
access history. This Service to be performed in a manner such that AAM
information technology assets are protected from unauthorized access,
destruction, contamination, or modification.
Service Triggers: This Service will normally be initiated as a result of one
or more of the following events:
o Adds, deletes, or changes to AAM authorized physical or electronic
access requirements
o Changes mandated by technology
o AAM customer security requirements
o Government, insurance underwriter, or third party mandate
Service Deliverables: EDS will supply and/or maintain the following resources
in the delivery of this Service:
o AAM provided, physically secured computer rooms
o AAM provided electronic access security software
o Physical and electronic security procedures
o AAM provided software to prevent contamination by computer viruses
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o Forms - electronic or otherwise to facilitate the above
Service Metrics:
Availability: Seven days per week, 24 hours per day or same as computer
operations scheduled up-time.
Service Level: Security reports will be generated for AAM management on a
monthly basis or as reasonably required by AAM.
First Level Customer Support
Service Owner: EDS Operations Manager
Service Description: EDS will maintain a Customer Care Center (CCC) which will
provide the following:
o A single point of contact for problems related to hardware, software,
applications, and/or communications
o Problem recording and tracking
o Problem escalation
o Problem solution coordination
o Problem resolution
o Customer information
o Communication of hardware, software, Application, and communication
information to AAM system users
o AAM and EDS will agree to a standard set of management reports.
Service Triggers: Normally First Level Customer Support Services are initiated
by one or both of the following:
o Customer problems related to hardware, software, applications, or
communications.
o Customer questions related to hardware, software, applications, or
communications.
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Personnel appropriately skilled in:
- Computer hardware technology
- AAM and EDS approved computer software
- AAM production applications
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- Communications technologies
o AAM provided software necessary for problem analysis, tracking, and
mutually agreed scheduled reporting
o Operational documentation
Service Metrics:
Please see Exhibit F.
Information Technology Asset Tracking
Service Owner: EDS Operations Manager
Service Description: EDS will create and maintain an accurate inventory of AAM
information technology assets that are supported by EDS. At agreed intervals
EDS will produce reports containing a complete listing of all information
technology asset inventories. Such reporting will be in a format agreeable to
AAM management and containing sufficient detail for efficient inventory
management.
Service Triggers: This Service will normally be initiated as a result of one
or more of the following events:
o Full asset inventory
o Additions to inventory
o Deletions from inventory
o Changes to asset items
o Customer requirement changes
o Customer requested moves performed by EDS
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Inventory methodologies
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Information Technology Directional Consulting
Service Owner: EDS Account Manager
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Service Description: EDS will from time to time advise AAM on potential
impacts and/or benefits of changing information technologies. Such Services
will include technical presentations, answers to technical direction
questions, technology white papers, and technology directional
recommendations.
Service Triggers: This Service will normally be initiated as a result of one
or more of the following events:
o AAM questions
o AAM requests
o Technology changes
o The AAM RFP process
Service Deliverables: EDS will provide the following resources in support of
this Service:
o Appropriately skilled personnel
o Internal EDS support groups
o EDS initiated white papers
o EDS technology improvement proposals
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Information Technology Management
Service Owner: EDS Account Manager
Service Description: EDS will manage the processes involved with the delivery
of information technology Services to AAM. This will be accomplished such that
these Services are delivered in a consistent, reliable manner that reasonably
conforms to the requirements of this SOW. Delivery Services include:
Procurement and maintenance of appropriately qualified personnel
o Implementation of Service metrics reflecting AAM expectations
o Monitoring of Service metrics
o Provision of, and adherence to appropriate methodologies
o Communication of information technology Services status to AAM
management
- Performance to agreed metrics
- Status of information technology projects
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o Recommendations and advice relative to information technology issues
and opportunities.
Service Triggers: Any and all of the Services referenced in this SOW are
subject to the delivery Services described above.
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Appropriate information technology management methodologies
o Information technology delivery metrics
Service Metrics:
Availability: Monday - Friday
8 p.m. - 5 p.m.
Information Technology Planning
Service Owner: EDS Account Manager
Service Description: EDS will assist AAM, as reasonably requested, in the
creation and maintenance of the AAM Information Technologies Strategic Plan.
Areas of EDS assistance may include the following:
o Assessment of the AAM "as is" situation
o Conception of a "to be" situation that is supportive of the AAM
Business Plan
o Performance of a "gap analysis" identifying capability shortfalls
o Identification of steps required to bridge between "as is" and "to
be" situations
Service Triggers: This Service will normally be initiated as a result of one
or more of the following events:
o AAM request for EDS assistance
o Changes in available or foreseen information technologies
o Changes in the AAM Business Plan
Service Deliverables: EDS will provide or maintain the following resources in
support of this Service.
o Appropriately skilled personnel
o Formal AAM Information Technology Plan
o Information technology planning methodologies
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Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Information Technologies Status Reporting
Service Owner: EDS Account Manager
Service Description: EDS will provide reports to AAM management on an agreed
periodic, or other mutually agreed basis, related to the status of information
technology Services. Information to be included in this reporting may include
but may not necessarily be limited to the following:
o Performance of EDS with respect to mutually agreed metrics
o Status of any and all projects in progress
Service Triggers: This Service will normally be initiated as a result of one
or more of the following events:
o Agreed reporting intervals
o Special AAM management request
o Special EDS request
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Service Level: Information Technology Status reports will be produced on a
mutually agreed basis.
Information Technology Supplier Management
Service Owner: EDS Operations Support Manager
Service Description: EDS will, as agent for AAM, interface between AAM and all
information technology suppliers who provide Services which are part of, or
related to, the EDS Services. EDS will maintain and report to AAM the status
of operating system, application, and database software including version,
revision, maintenance, and expiration dates. As indicated by status, EDS will
prepare information required for AAM Purchase Orders. EDS will place orders,
track, expedite, receive, and recommend payment as appropriate for hardware,
software, and communications products and Services.
Service Triggers: This Service will normally be initiated as a result of one
or more of the following events:
o Requests for purchase
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o Requests for Service
o Requests for quote
o Requests for change
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Asset tracking methodologies
o Asset management software
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Markup and Rebill
Service Owner: EDS Financial Analysis
Service Description: AAM may find it convenient from time to time to have EDS
coordinate the provision of Services from third parties. EDS and AAM will
agree on a Service fee to be added by EDS to third party charges. In instances
where such Services are billed directly to EDS, EDS will add the agreed
Service fee to such direct billings before passing then to AAM via the
appropriate EDS monthly invoice. Examples of such Services are as follows:
o Hardware
o Time sharing Services
o Software or software licenses
o Hardware or software maintenance costs
Service Triggers: This Service is normally initiated by one or both of the
following events:
o Monthly EDS invoice
o Special customer requests
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Billing Methodologies
o Billing documentation
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Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Model Office
Service Owner: EDS Production Support Manager
Service Description: EDS will maintain a model office environment for the
thorough testing of application software releases or changes as indicated by
Exhibits G and J, and hardware changes before they are released for
production.
Service Triggers: This Service may be initiated through one or more of the
following events:
o CSRs
o New hardware
o New software
o Software upgrades
o Change in AAM requirements
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriate test facilities including AAM provided hardware,
software, and communications
o Test data as required
o Testing methodologies
o Appropriate change control procedures
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Monitor CSRs
Service Owner: EDS Business Analysis
Service Description: EDS will monitor active CSRs such that the following is
accomplished:
o All CSRs are billed properly
o All CSRs are closed according to terms
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o No CSR continues to be billed to AAM after it is closed according to
terms.
o EDS will report CSR status on an agreed periodic basis.
Service Triggers: This Service is initiated as a result of one or both of the
following events:
o Regular CSR reporting interval
o Special request by AAM
Service Deliverables: EDS will provide or maintain the following resources in
support of this Service:
o Appropriately skilled personnel
o A CSR process
o CSR documentation
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Monitor Job Execution
Service Owner: EDS Production Support Manager
Service Description: EDS will monitor the execution of both real-time and
batch computer jobs to assure that all run as expected. EDS will identify jobs
that abnormally terminate, provide recovery Services, determine the cause of
failure, and provide Application Code Correction Services as required. If job
completion is dependent on resolution of items in the Oracle Pending
Transaction Table, it will be the responsibility of AAM to effect such
resolution.
Service Triggers: This Service will normally be initiated as a result of one
or both of the following events:
o Production jobs scheduled for execution
o Predecessor steps, if any, successfully executed
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Stable computing environment
o On-call technical support
o Computer environment monitoring software and hardware
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Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Plant Floor Support
Service Owner: EDS Manager Plant Floor Support
Service Description: EDS will provide analysis of plant floor related
opportunities and problems. EDS will make recommendations for improvement of
plant floor processes. Recommendations will include detailed description of
proposed changes, estimates of expected benefits, and the price for related
EDS Services.
Service Triggers: Plant Floor Support Services are normally initiated as a
result of one or more of the following:
o AAM plant floor associate request
o EDS observation of performance improvement opportunities
o The AAM Information Technology Plan
Service Deliverables: EDS will provide and / or maintain the following in
performance of Plant Floor Support Services:
o Appropriately skilled personnel
o Studies as reasonably requested
o Proposals for improvement
o CSR's related to agreed initiatives
o Information technology white papers
o All resources related to agreed CSRs
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
On call 24 hours - 7 days with one hour response for any
off-shift production emergency.
Production Job Backup and Recovery
Service Owner: EDS Production Support Manager
Service Description: EDS will provide backup of data residing on mainframe,
mini-computer, or server based production systems. This will be accomplished
such that restart and/or recovery may be accomplished subsequent to job
failure.
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Backup and recovery job scenarios comprehended by this Service are those
attributable to reasonably expected system component failures. Recovery from
failures of a catastrophic nature are not addressed under this Service.
Service Triggers: The provision of Production Job Backup and Recovery Services
is normally initiated by one or more of the following:
o Production job execution
o New production job implementation
o Changes to production jobs
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Production job documentation
o AAM provided hardware
o AAM provided software
Service Metrics:
Availability: Monday - Friday
12 a.m. - 5 p.m.
Production Job Scheduling
Service Owner: EDS Production Support Manager
EDS Operations Manager
Service Description: EDS will schedule the execution of production batch jobs
such that they execute in the proper sequence, receive the proper AAM provided
input, terminate properly, create accurate outputs, and initiate the expected
successor computer events.
Service Triggers: The provision of Production Job scheduling Services is
normally initiated by one or both of the following:
o Computer batch job run schedules
o Availability of required input data
Service Deliverables: EDS will provide and/or maintain the following resources
in the provision of this Service:
o Required technical infrastructure
o Appropriately skilled personnel
o Computer run schedules
o Detailed Production Job Scheduling performance reports
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Service Metrics:
Availability: 7 days - 24 hours
Proposal Development
Service Owner: EDS Account Manager
Service Description: EDS will assist AAM in achieving its business objectives
by proposing, from time to time, new applications for information
technologies. The format of EDS proposals will be as follows:
o Description of the current state
o Description of the future state
o Proposed timeline for accomplishing change
o Expected benefits to AAM
o EDS pricing
Service Triggers: This Service may be initiated by one or more of the
following events:
o A RFP from AAM MIS management
o Request from AAM users or management
o An opportunity identified by EDS
o Change in government regulations
Service Deliverables: EDS will provide and/or maintain the following resources
in support of this Service:
o Appropriately skilled personnel
o Appropriate software
o Proposal methodologies
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
Special Requests
Service Owner: EDS Account Manager
Service Description: From time to time AAM will experience the need for
special one-time Services that are different from the Services described
elsewhere in this document. EDS will estimate the time required to satisfy the
special request using regular site or support staff. If AAM is satisfied with
the estimated time of delivery, then EDS will
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accommodate the special request within the scope of this document. If AAM is
not satisfied with the estimated delivery time, AAM may provide for improved
delivery by requesting that the work be performed using a CSR as an Additional
Service for an additional charge.
Service Triggers: This Service is initiated by AAM making request for EDS
Services that are outside the scope of this document.
Service Deliverables: EDS will provide this Service using regular account
personnel, hardware, software, applications, communications, and facilities.
Service Metrics:
Availability: Monday - Friday
8 a.m. - 5 p.m.
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Account Organization
- -------------------------------------------------------------------------------
[Account Organization Chart]
[Organization Chart Omitted]
- -------------------------------------------------------------------------------
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Job Descriptions
EDS Account Team Members' job descriptions are generally as follows. Actual
work performed will ordinarily fall within these categories, however, actual
tasks performed may vary depending on location or customer need.
Account Executive
The EDS Account Executive is an experienced leader in account management and
has overall responsibility for delivering the Services defined in this SOW.
Additional responsibilities include maintaining the relationship between AAM
and EDS, overall issue resolution, and resource allocation.
Administrative
o Perform administrative support functions relating to personnel,
financial, and special projects
o Plan and coordinate meetings, conference, and employee functions
o Operate required office machinery i.e. personal computers, 10-key,
fax, and typewriter
Asset Analyst
o Orders hardware and software when authorized by customer purchase
order
o Tracks orders in process
o Receives ordered hardware and software
o Identifies and tags hardware for inventory tracking purposes
o Coordinates deployment of hardware and software in concert with CCC
o Creates and tracks invoices for new hardware and software
o Assists in the evaluation of proposed hardware and software
o Updates inventory tracking database
Business Analyst
o Applies industry knowledge to determine accuracy and reasonableness of
data
o Assists in implementing enterprise solutions to meet business needs
o Uses knowledge of information technology and the customer's industry to
support members of the engagement team
o Provides design and analysis support for enterprise-wide engagements
o Provides guidance to team members
o Provides experience to assess and recommend design alternatives
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o Reviews integration aspects of business processes and system design
o Coordinates and participates in testing of software
o Performs business process configuration activities
o Typically up to two years experience
Business Analyst - Advanced
o Provides product specific knowledge in the design and analysis support of
enterprise-wide engagements
o Applies specific industry knowledge to the clients' industry and
information technology to meet business objectives
o Assists in planning the engagement, establishing requirements, and
delivering results
o Provides training in specific areas with the enterprise products
o Knowledge of at least one functional business area
o Facilitates sessions during software confirmation
o Provides guidance to team members to tie user requirements to customer
direction and goals
o Assists customer focus group leaders with completing implementation
activities
o Provides broad experience to assess and recommend design alternatives
o Ability to review and recommend integration aspects of business processes
and systems design
o Ability to perform business process configuration activities
o Ability to define testing metrics/measurements
o Typically two to six years experience
Business Analyst - Senior
o Leads a functional area of an engagement and plays a major role in
developing recommendations for customer
o Applies disciplined methodologies to collect and analyze data
o Leads a module or an implementation to meet business needs
o Applies extensive knowledge of the customer's industry and information
technology to meet customer objectives
o Coordinates planning and definition in the design and analysis support
of enterprise-wide engagements
o Provides training in multiple areas within the enterprise products
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o Expert knowledge of at least one functional area or extensive knowledge of
multiple business areas
o Manages issue resolution
o Manages project plan to ensure solution of business issues
o Provides direct input for technical project direction
o Typically six to ten years experience
Computer Operator
o Strong customer and problem solving skills
o General network, hardware and software application knowledge
o Computer peripherals operation and support experience
o Typically minimum one year related experience
Corporate Account Manager
The Corporate Account Manager supports information technologies, AAM business
systems, and EDS internal systems common across AAM. Examples of supported
corporate systems include ERP, HR/Payroll, and AAMTS. This person, working
with corporate AAM vice presidents, supports the strategic initiative of IT
planning (enterprise and MES level).
Database Administrator
o Creates and supports database utility procedures
o Analyzes performance indicators and recommends changes to the application
process or physical database structure to meet performance metrics
o Recommends database reorganizations and updates database parameters
o Executes utility procedures to recover application databases
o Maintains control programs for database access
o Develops database standards and procedures
o Prepares and implements logical and physical database designs
o Monitors database performance statistics and recommends improvements
Data Modeler
o Interact with customers to gather and discuss business function and
system requirements information
o Analyze customer business functions to identify events, processes,
relationships, capabilities, and needs
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o Develop and prepare data, event, and process modeling diagrams using
automated tools
Engineering Systems Engineer
o Provides engineering application programming systems development and
support for systems of medium complexity
o Develops and evaluates alternative engineering systems solutions to meet
customer requirements
o Utilizes a systems methodology when developing or supporting systems
development
o Modifies program logic involving multiple engineering systems and
subsystems
o Is proficient in two programming languages
o Understands the customer's business an assigned area of responsibility
o Shares knowledge of current technology and methods with the team and
customer
o Typically a minimum of two years experience
Engineering Systems Engineer - Advanced
o Advises and mentors customers and team members on technical issues
o In-depth engineering or manufacturing environment knowledge
o Proficient in two or more programming languages
o Provides engineering application programming/systems development and
support for complex systems
o Conducts post-implementation reviews
o Develops work breakdown structure for large engineering systems development
efforts
o Possesses knowledge of customer's industry
o Recommends, test, and evaluates new engineering tools and hardware
o Typically four to eight years experience
Enterprise Solutions Specialist Level 1 Application Customizer
o Provides design and analysis support on enterprise-wide engagements
o Applies industry knowledge to determine accuracy and reasonableness of
data
o Assists in implementing enterprise solutions to meet business needs
o Uses knowledge of information technology and the customer's industry to
support members of the engagement team
o Develop interfaces required to support implementation approach
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o Create customized modifications
o Assists in loading/testing of system interfaces/conversions
o Possesses business understanding of the applications
o Utilizes the vendor tools with the packages
o Typically a minimum of two years related experience
Enterprise Solutions Specialist Level 2 Application Customizer
o Provides product specific knowledge in the design and analysis support
of enterprise-wide engagements
o Applies specific industry knowledge to the client's industry and
information technology to meet objectives
o Assist in planning engagement, establishing requirements and delivering
results
o Provide training in specific areas within the enterprise products
o Knowledge of at least one functional business area
o Define business requirements and develop interfaces required to support
implementation approach
o Create advanced customized modifications
o Assists in planning and loading/testing of system interfaces/conversions
o Possesses broad business understanding of the applications
o Utilizes the vendor tools with the packages
o Typically two to six years experience
Enterprise Solutions Specialist Level 3 Application Customizer
o Leads a functional area of an engagement and plays a major role in
developing recommendations for the customer
o Applies disciplined methodologies to collect and analyze data Leads a
module of the application implementation to meet business needs
o Applies extensive knowledge of the customers industry and information
technology to meet customer objectives
o Coordinates planning and definition in the design and analysis support
of enterprise-wide engagements
o Provides training in multiple areas within the enterprise application
products
o Expert knowledge of at least one programming language and extensive
knowledge of multiple programming languages
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o Expert knowledge of at least one major vendor product and extensive
knowledge of multiple major vendor products
o Manages issues resolution
o Manages project plan to assure solution of business and technical issues
o Provides direct input for technical project direction
o Typically six to ten years experience
Infrastructure Analyst
o Familiarity with Windows NT, Windows 95, Microsoft Office, and Microsoft
Excel
o Knowledge of network architecture
o Strong customer skills
o Strong knowledge of PC hardware
o Strong problem solving skills
o Good verbal and written communications skills
o Typically one to three years experience
Operations Manager
The EDS Operations Manager is responsible for the day to day operation of the
AAM computer infrastructure. Execution of this responsibility includes the
following tasks: management of infrastructure technology change; network and
desktop maintenance; system backup and recovery; performance monitoring;
security; and IT asset management.
Project Manager
o Manage and implement interrelated programs/projects from initiation to
final operational stage
o Lead empowered, matrixed, virtual teams of EDS, customer, and vendor
personnel
o Develop, administer, and control the budget and P & L for the
program/project
o Evaluate performance
o Work flexible hours
o Evaluate the performance of subordinates
o Administer subordinate's compensation
o Hire/terminate employees
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Site Manager
EDS Site Managers provide an interface to the AAM Plant Managers and Area
Managers at all AAM plant sites. The EDS Site Manager will, working with AAM
management at each plant location, respond to AAM RFPs and propose IT
solutions. In addition, they supervise EDS account team members at each
location under their administration.
Systems Administrator
o Plan and implement routine changes for operating environment
o Implement change control procedures
o Demonstrated capability to manage application security environment
o Ensure system/application environment is operating according to design
specifications
o Training or field experience with Windows NT, HP Unix, large-scale
networks, TCP/IP addressing, DHCP, MS Exchange, MS SQL, and MS SMS
software
o MS or Unix certification or equivalent field experience
o Typically two to five years experience
Systems Administrator Associate
o Analyze problems and develop solutions
o Communicate effectively with individuals or in a group
o Develop computer programs
o Multi-task
o Document complex topics and/or express processes
o Complete requisite technical training
Systems Administrator - Senior
o Participate in strategic IT planning
o Extensive network, hardware, and software application knowledge
o Lead the planning, design, and implementation of complex changes to a
heterogeneous operating environment
o Help define enterprise policies and standards across enterprise
architecture
o Research and evaluate new products to architect and recommend enterprise
improvements
o Expert knowledge of at least one technical area or extensive knowledge of
multiple technical areas
o Typically five to ten years experience
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Systems Engineer
o Provides application programming systems development and support for
systems of medium complexity
o Develops and evaluates alternative system solutions to meet customer
requirements
o Utilizes a system methodology when developing or supporting systems
development
o Modifies program logic involving multiple systems and subsystems
o Proficient in two programming languages
o Understands the customer's business in assigned area of responsibility
o Shares knowledge of current technology and methods with team and customer
o Typically minimum two years experience
Systems Engineer - Advanced
o Advises and mentors customers and team members on technical issues
o Proficient in two or more programming languages
o Provides application programming/systems development and support for
complex systems
o Conducts post-implementation reviews
o Develops work breakdown structure for large systems development efforts
Systems Engineer - Senior
o Develops principles and concepts and innovative solutions for the
customer enterprise
o Team with customer to assess concerns/requirements and develop specific
strategies
o Employs consistent measurement techniques
o Informs customer about emerging technologies and the business
implications of these to projects and the overall customer business
o Handles diverse and complex assignments concurrently
o Typically a minimum of eight years experience
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AAM Responsibilities
During the term of the Agreement AAM will perform the following obligations in
addition to, or in further explanation of, the obligations set forth in the
Service Agreement.
System Operations
o Promptly provide all information, approvals, and acceptances reasonably
requested so that EDS can properly deliver Services.
o Provide Systems execution parameters required to enable EDS to properly
operate Systems and process data.
o With respect to any direct data entry that AAM is responsible to perform,
adhere to agreed-upon data input schedules.
o Maintain AAM controlled on-line tables as necessary to use Existing
Systems properly.
o Except as otherwise agreed, perform report decollation and distribution
Services.
o Provide interoffice mail and distribution Services or reimburse EDS for
same between EDS facilities and AAM locations for EDS generated reports.
AAM will pay US Postal Service and express mail charges for AAM materials
sent by EDS.
o Observe System Maintenance and downtime schedules set for the production
systems.
o AAM will provide all supplies required by EDS in support of Services
described in this SOW at no cost to EDS.
Systems and Security
Designate an owner for each system identified in the Schedule of Applications
Supported. The AAM systems owner will authorize EDS access to all related
programs and data, and approve system changes.
Designate within 30 days of the Effective Date of the Service Agreement, for
each AAM location and staff organization within AAM, a limited number of
associates to submit and authorize CSR forms.
Be responsible for establishing and communicating to EDS the criteria for
allowing EDS personnel to have access to sensitive AAM data contained in
databases maintained by EDS. AAM shall periodically review and update such
procedures and criteria and so inform EDS. Any such procedures or criteria
shall allow EDS such access as is necessary for EDS to perform its obligations
hereunder.
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 47
<PAGE>
AAM will take all steps reasonably requested by EDS to assure that computer
room facilities are adequately air-conditioned and properly protected against:
o Fire and water perils
o Power disruptions
o Unauthorized entry
Provide EDS reasonable notification of pending AAM, government, and other
mandates that affect EDS performance of the Services described in this
document.
Submit written requirement specifications that are accurate, clearly defined,
and complete for Systems Analysis, Systems Development, Systems Enhancements,
and other systems engineering Services that AAM desires EDS to perform.
Involve EDS as early as possible, starting with the initial Project Planning,
to assist in these procedures.
Hardware Related
o Inform EDS of any System or Hardware defect or malfunction immediately
following detection.
o Provide appropriate cabling or other site preparation tasks required by
EDS for the proper installation of hardware that is to be installed or
qualified by EDS.
o Replace, at no cost to EDS, any EDS owned hardware or software stolen or
damaged while in the possession of AAM associates.
Relationship
o Work with EDS to establish consistency of Service delivery across all
AAM locations.
o In 90 days form a joint team to clearly delineate roles and
responsibilities in day to day relationships.
o Work with EDS to identify opportunities for EDS to assist AAM in the
achievement of AAM business goals.
o EDS will use commercially reasonably efforts to keep AAM fully informed
about the Services provided under this Agreement.
o AAM and EDS will use commercially reasonably efforts to make timely
management decisions and communicate information pertaining to the
support of AAM's business.
o EDS will review with the AAM Representative the planned training
activities pertaining to the AAM business.
o EDS will review with the AAM Representative the planned movement of EDS
personnel in and out of the AAM account organization in advance of such
movement.
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 48
<PAGE>
Exhibit A: Schedule Of Non-Legacy Applications to be Supported
<TABLE>
<CAPTION>
Name of Application Rochester Buffalo Tonawanda Detroit Detroit Forge Three Rivers
Hills Gear/
Corp.
- ------------------------ -------------- -------------- --------------- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
AAMTS x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
AGVS x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
APS x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
CAD x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
Crystal Reporting x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
ERP Financial x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
ERP Manufacturing x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
LDS x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
Manifest Build System x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
MIS STAFF x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
MQC x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
PIM x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
Slug Welder x
Verification System
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
TELISIS Marking SYSTEM x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
Trace x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
</TABLE>
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 49
<PAGE>
Exhibit B: Schedule Of Legacy Applications to be Supported
<TABLE>
<CAPTION>
Name of Application Rochester Buffalo Tonawanda Detroit Detroit Forge Three Rivers
Hills Gear/
Corp.
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CPS x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
Det. Stackers
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
Fire & Watch x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
Mainsaver x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
OLIMPIC x x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
PSIC x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
PU x x x x x
- ------------------------- -------------- -------------- --------------- ------------ -------------- --------------
</TABLE>
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 50
<PAGE>
Exhibit C: Schedule of Hardware Supported
COMPAQ COMPUTERS:
o Deskpro 4/33I
o Deskpro 4/66i
o DeskPro XE 4/66
o Deskpro 575
o Deskpro XE 560
o Deskpro XL560
o Deskpro 2000
o Deskpro 590
o LTE Lite 4/25e
o LTE Lite 4/33c
o LTE Lite 4/40
o LTE Lite 4/75
o LTE Elite 4/40CX
o LTE Elite 4/75CX
o LTE Elite 5100
o LTE Elite 5133
o Prolinea 4/33
o Prolinea 4/50
o Prolinea 466
o Prolinea 575
o Prolinea 590
o Prolinea 5100
o Prolinea 5120
Other Computer Hardware Supported
IBM COMPUTERS:
o PS/2 Mod 77
o PS/2 Model 30
o PS/2 Model 50z
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 51
<PAGE>
o PS/2 Model 55
o PS/2 Model 56
o PS/2 Model 60
o PS/2 Model 70
o PS/2 Model 80
o PS/2 Model 95
o IBM 300 PL
o IBM 300 XL
o Value Point 4/33
o Think Pad 770
TOSHIBA COMPUTERS:
o Toshiba T4700CS
Basic Supported Printers
HEWLETT PACKARD
o HP LaserJet 4/4m
o HP LaserJet 4L
o HP LaserJet 4 Plus
o HP LaserJet 4P, 5M, 5L, 5M Color, 6M
o HP LaserJet 5 Si
o HP LaserJet Color 5
o HP DeskJet 1200c
o HP DeskJet 500, 600, 800, 900, 1600
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 52
<PAGE>
Exhibit D: EDS Installed Infrastructure Software Supported
Desktop Operating Systems
WFW 3.11
Windows NT Workstations 4.0
Desktop Applications
MS Office Standard & Professional
Excel
MS Mail 3.5
MS Outlook 97
Norton Anti Virus for WFW
Norton Anti Virus for NT Workstations
IRMA for the Mainframe v3.x
Visio
Network Operating Systems
MS Windows NT Server 3.51 & 4.0
Exchange server
SNA Server
SMS Server
HP UNIX 9.x & 10.x
Oracle
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 53
<PAGE>
Exhibit E: Data Lines Supported
EDS LINK LINES
EDS Link Lines Southfield
Primary: 512k
EDS Link Lines Troy
Primary: T1
EDS Link Lines EDS Auburn Hills IPC
Primary: T1
EDS Link Lines Buffalo
Primary: T1
Secondary: T1
EDS Link Lines Detroit
Primary: T1
Secondary: T1
EDS Link Lines Rochester Hills
Primary: T1
Secondary: T1
EDS Link Lines Three Rivers
Primary: T1
Secondary: T1
EDS Link Lines Tonawanda
Primary: T1
Secondary: T1
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 54
<PAGE>
Legacy Data Circuits
Detroit
FDDA477657 19.2kb
FDEC839265 19.2kb
FDDA645035 19.2kb
L171095 19.2kb
Three Rivers
WZ398044 56kb
Western New York
WZ397901 19.2kb
40LGGS282851 19.2kb
WZ508975 56kb
WZ455386 19.2kb
Rochester Hills
WZ.523533..wtl 56kb
40.xegl.005578.001.NY 19.2kb
DSO.215084..USP 512kb
.XCGS.300001..MB 19.2kb
Tonawanda
WZ397946 9.6kb
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 55
<PAGE>
Exhibit F: Customer Care Service Metrics
- ------------------------------------------------------ ------------------------
Customer Care Center
- ------------------------------------------------------ ------------------------
Hours of Service 6 a.m. - 6 p.m. Monday - Friday
- ------------------------------------------------------ ------------------------
Measurement Metrics
- ------------------------------------------------------ ------------------------
Average Answer Time Less than four rings
- ------------------------------------------------------ ------------------------
Total Calls Placed On Hold Less than 10%
- ------------------------------------------------------ ------------------------
Maximum Time Placed On Hold 95% less than 2 minutes
- ------------------------------------------------------ ------------------------
Abandoned Calls Less than 2 %
- ------------------------------------------------------ ------------------------
Averaged Resolved at Level 1 (CCC) Greater than 75 %
- ------------------------------------------------------ ------------------------
Average Resolved At Level 2 (Support Personnel) Greater than 15 %
- ------------------------------------------------------ ------------------------
Average Resolved At Level 3 (Support Personnel
and Suppliers) 5 % to 10 %
- ------------------------------------------------------ ------------------------
Percent Unresolved (Older Than 5 Days) Less Than 3 %
- ------------------------------------------------------ ------------------------
Add New Network or Modem Accounts Less than 8 hours after
approval
- ------------------------------------------------------ ------------------------
Level 1 Resolution Times:
- ------------------------------------------------------ ------------------------
Less Than 1 Hour 97 %
- ------------------------------------------------------ ------------------------
Less Than 4 Hours 99 %
- ------------------------------------------------------ ------------------------
Level 2 Resolution Times
- ------------------------------------------------------ ------------------------
Less Than 8 Business Hours 98%
- ------------------------------------------------------ ------------------------
Level 3 Resolution Times
- ------------------------------------------------------ ------------------------
Less Than 4 Hours 50 %
- ------------------------------------------------------ ------------------------
Less Than 8 Hours 75 %
- ------------------------------------------------------ ------------------------
Less Than 2 Days 98 %
- ------------------------------------------------------ ------------------------
Non Business Hours Response 15 minutes
- ------------------------------------------------------ ------------------------
Business hours password resets 30 minutes
- ------------------------------------------------------ ------------------------
* Note: Times are from calls received
- ------------------------------------------------------ ------------------------
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 56
<PAGE>
Exhibit G: Description of Non-Legacy Applications
American Axle & Manufacturing Payroll System (AAMPS) - This system is a
software product of InPower, Inc. that has been heavily modified for AAM's
use. It provides for support of AAM's human resources processing and includes
both hourly and salary payroll processing capability including compensation,
and interfaces to 7 specific third party administrators (TPAs) that track and
administer AAM benefits.
HR Pay uses the ORACLE DBMS on a UNIX server.
Action Planning System - (APS) This system is a project management tool used
for local Three Rivers plant projects. It uses the AAM Four Square project
tracking methodology to track projects through the Investigate, cancel, Go,
Complete status. APS automates the manual spreadsheets formerly used for these
activities.
American Axle & Manufacturing Time Keeping System (AAMTS) - This system and
associated reporting sub-systems are drawn from the General Motors Time
Keeping System (GMTKS) which was modified to meet AAM needs and authorized for
AAM use. It collects the rings of AAM factory workers and passes this
information to HR Pay for hourly payroll generation.
Automated Guided Vehicle System (AGVS) - The AGVS is a material handling
system for hotformer components. Automated guided vehicles carry part
containers from four hotformers to fast and/or slow cool down areas, then to a
slow cool down area, and finally to one of two Computer Aided Vision
Inspection (CAVI) stations.
Computer Aided Design (CAD/CAM) - This is accomplished at AAM using two
software vehicles:
o AutoCAD - Auto CAD is PC based CAD software used by the manufacturing
engineering staff to support plant layout and electrical design, etc.,
applications.
o Unigraphics - A CAD software product that supports an integrated
design, engineering, and manufacturing process. Unigraphics provides
for the creation of 2D and 3D drawings and engineering designs for
dies and fixtures used in the manufacturing process.
o EDS*DNC (Distributed Numerical Control) - This system provides file
management, user, and machine interface functionality on the plant
floor. Numerical Control (NC) files are downloaded from the CAD/CAM
workstation to a PC on the factory floor via an Ethernet network. NC
files are ultimately downloaded to a NC machine where parts or dies
are machined.
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 57
<PAGE>
Crystal Reporting - This is a software product of InPower, Inc. Crystal
Reporting supports AAM associates in the creation of ad hoc reports related to
HR Pay.
Enterprise Resource Planning - Financial - This is an ORACLE applications
based system providing support for:
o General Ledger
o Accounts Payable
o Accounts Receivable
o Project Accounting
o Fixed Assets
The application uses the ORACLE Database Management System (DBMS) on a UNIX
server.
Enterprise Resource Planning - Manufacturing - This system is comprehensive in
scope. It provides potential for very sophisticated support of:
o Order entry/shipping
o Purchasing/Receiving
o Cost
o Work in Process
o Planning and Scheduling
o Bill of Material and Routing
o Inventory
The application uses the ORACLE (DBMS) on a UNIX server.
Labor Distribution System - (LDS) - This system accesses the clock card time
of the AAM hourly rated associates, compares this to routed labor for the same
period and calculates labor efficiencies for each department. In addition, LDS
interfaces with the General Ledger posting gross wages, net wages, accruals
and reversals. LDS also calculates cost of goods sold.
Manifest Build System - This system was designed to error-proof axle
assemblies by providing visual instructions to the assembly operators. The
system is a combination of PC hardware, software, barcode technology, model
build information and work procedures. It produces a manifest tag which
contains build information for assemblies in Plants 2 and 3. The tag is
attached to the axle and identifies the proper sub-assemblies and components
required to build a particular axle. The manifest is retained and can be used
for accountability or manual traceability.
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 58
<PAGE>
Material Quality Control System (MQC) - This system is used at the Tonawanda
plant to monitor steel used in the hot forming process. Material is recorded
and tracked through the hot forming process.
MIS STAFF - This is not, properly speaking, a system, but is, rather, a
convenient means to account for EDS Services that are not performed directly
in support of computer systems. The MIS STAFF category represents the MIS
function at AAM and is, as indicated in Exhibits G and I, the beneficiary of
management and clerical Services performed by EDS on behalf of AAM.
Product Information Management System (PIM) -This system provides an
electronic engineering release system for AAM. It manages the relationships
between CAD files, Engineering notices, and bills of material. It replaces
historic "blueprint rooms" by means of an electronic vaulting capability. PIM
allows on-line access to common engineering data for authorized associates
from any AAM location. The application uses the ORACLE Database Management
System (DBMS) on a UNIX server.
Slug Welder Verification System (Verification)- This system is used at the
Detroit Axle plant to verify that only scheduled axles are built and that
these are assembled using the correct tubes and third members. Baskets of
tubes are bar-coded as are third members. The system does the verification
against specifications and schedules.
Telesis Marking System (Telesis) - The system was designed to produce a dot
matrix mark on the axle tube at the final axle assembly operation. The axle
tube marker identifies the model, plant location, Julian date, military time
and, axle serial number. It provides a permanent identification of each axle
for traceability.
Trace - This is a system that records the date and time that certain axle
assemblies and sub assemblies were processed through the Detroit gear plant.
The system is intended to allow AAM to pinpoint time and location of quality
problems so that analysis can be properly focused and remedies more speedily
obtained.
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 59
<PAGE>
Exhibit H: EDS Services for Non-Legacy Applications
<TABLE>
<CAPTION>
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
M
A
N V
C E I E
R R F R
Y P E M I
S E S I F
T F R H T S T I
A I P R E C
A L N B S L T A
A A A M P U T E R T
M G A C R N F A L I A M P S A I
T V P A P C G Y D L F Q I I C O
S S S D T E * * S D F C M S E N
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C><C> <C> <C> <C>
Applications Support Services
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Production Support Services
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Application Code Correction x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Application Documentation x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Application Enhancements x x x x x x x x x x x
- ------------------------------------------ --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Application Performance Monitoring x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Application Problem Analysis x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Application Security x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Job Restart x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Data Management Services
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Database Maintenance x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Software Update Installation x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Change Management Services
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Change Management x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Operations Services
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Computer Operations x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Change Control x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Coordination of IT For Engineering x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Data Communications Network x x x x x x x x x x x x x x
Maintenance
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Desktop Environment Maintenance x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Disaster Recovery Procedures x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Enforce Security x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
First Level Customer Support x x x x x x x x x x x x x x
- ------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
</TABLE>
* ERP Manufacturing Support Services will commence on August 1, 1998.
HR/Payroll support services will commence on June 1, 1998.
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 60
<PAGE>
Exhibit H: EDS Services for Non-Legacy Applications (cont'd)
<TABLE>
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
M
A
N V
C I E
R F R
Y E M I
S S I F
T T S T I
A H E C
A L R B S L T A
A A E E U T E R T
M G A C R R R P L I A M P S A I
T V P A P P P A D L F Q I I C O
S S S D T 1 2 Y S D F C M S E N
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C><C> <C> <C> <C>
IT Asset Tracking x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
IT Direction Consulting x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
IT Management x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
IT Planning x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
IT Status Reporting x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
IT Supplier Management x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Markup and Rebill x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Model Office x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Monitor CSRs x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Monitor Job Execution x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Plant Floor Support x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Production Job Backup and Recovery x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Production Job Scheduling x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Proposal Development x x x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Special Requests x x x x x x x x x x x x x x x
- -------------------------------------------- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
</TABLE>
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 61
<PAGE>
Exhibit I: Description of Legacy Applications
Corporate Planning System (CPS) - This system provides data from a GM IMS
planning database. CPS provides AAM with GM projected sales volumes for car
and truck lines by model year. The planning horizon for the forecasted volumes
is typically for six months or more. This information is not provided to AAM
by any other means. AAM generates reports and populates planing spreadsheets
with a subset of this data.
Detroit Stacker System - The plant 2 stackers are computer controlled
auto-storage and retrieval systems capable of storing 3,000 pallets of
incoming materials. The computer hardware platform consists of DEC PDP-11/34
mini computers, RSX software operating system and Clark applications software.
Mainsaver Maintenance System (Mainsaver) - This system is used to support the
maintenance departments. It manages the spare parts inventories needed to
maintain machine tool and equipment. Mainsaver retains history of all
equipment downtime. Cost of repairs for material, labor and contractors is
maintained and a variety of reports are available.
MIS STAFF - This is not, properly speaking, a system, but is, rather, a
convenient means to account for EDS Services that are not performed directly
in support of computer systems. The MIS STAFF category represents the MIS
function at AAM and is, as indicated in Exhibits G and I, the beneficiary of
management and clerical Services performed by EDS on behalf of AAM.
On-line Indirect Material Purchasing Inventory Control (Olimpic) - This
comprehensive General Motors system manages the purchase, receipt, dispersal,
and inventory for indirect materials. Inventories are kept at the plant/crib
level. The system access corporate part catalogs and corporate supplier
contracts. Spot buys by plants are allowed when business conditions warrant.
Transactions are interfaced with financial systems as appropriate. Management
and operating reports are available in a wide variety.
Production Scheduling Inventory Control (PSIC) - This mainframe-based GM
system manages supplier sources, order processing, production planning, daily
production scheduling, supplier scheduling, shipping, scrap reporting,
receiving, consignments, annual physical inventories, stock analysis, product
specifications, financial interfaces, and product cost information. A variety
of management and operating, on-line, and batch reporting is available.
Purchasing (PU) - This system was created for use by Saginaw Division of GM.
It provides functional support for all aspects of direct materials purchasing.
Simplex Proprietary Fire and Watch System (Simplex) - The system provides
notification of device status changes to the security officer located at the
plant 56 command center. Water sprinkler systems, smoke detectors and
transformer oil temperatures are examples of devices monitored by the system.
Incorporated within the Fire & Watch are fire phone communications and fire
horns.
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 62
<PAGE>
Exhibit J: Description of Services for Legacy Applications
- -------------------------------------------------- -- --- --- --- --- --- --- -
D
E
T
M M
S A I
T I S O S
A N L I
C S S I M
K A T M P P
C E V A P S L
P R E F I I P E
S S R F C C U X
- -------------------------------------------------- -- --- --- --- --- --- --- -
Application Support Services
- -------------------------------------------------- -- --- --- --- --- --- --- -
Production Support Services
- -------------------------------------------------- -- --- --- --- --- --- --- -
Application Code Correction x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Application Documentation x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Application Problem Analysis x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Application security x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Job Restart x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Change Management Services
- -------------------------------------------------- -- --- --- --- --- --- --- -
Change Management x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Operations Services
- -------------------------------------------------- -- --- --- --- --- --- --- -
Change Control x x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Computer Operations x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Data Communications Maintenance x x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Data Communications Network Maintenance x x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Desktop Environment Maintenance x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Disaster Recovery Procedures x x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Enforce Security x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
First Level Customer Support x x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
IT Asset Tracking x
- -------------------------------------------------- -- --- --- --- --- --- --- -
IT Management x
- -------------------------------------------------- -- --- --- --- --- --- --- -
IT Status Reporting x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Markup and Rebill x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Model Office x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Monitor CSRs x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Monitor Job Execution x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Plant Floor Support x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Production Job Backup and Recovery x x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Production Job Scheduling x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
Special Requests x x x x x x x x
- -------------------------------------------------- -- --- --- --- --- --- --- -
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 63
<PAGE>
Exhibit K. EDS Price per Legacy System
- -------------------------------------------------- ------------------------
Legacy System Name Monthly Price
- -------------------------------------------------- ------------------------
Corporate Planning System (CPS) $ 1,448.
- -------------------------------------------------- ------------------------
Detroit Stacker System $ 734.
- -------------------------------------------------- ------------------------
Simplex Fire and Watch System $ 2,895.
- -------------------------------------------------- ------------------------
Mainsaver Maintenance System (Mainsaver) $ 7,238.
- -------------------------------------------------- ------------------------
OLIMPIC $ 23,741.
- -------------------------------------------------- ------------------------
PSIC $ 100,898.
- -------------------------------------------------- ------------------------
PU $ 869.
- -------------------------------------------------- ------------------------
Total $137,823.
- -------------------------------------------------- ------------------------
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 64
<PAGE>
Exhibit L. Items Agreed to be Jointly Developed During First 90 Days
of Agreement
o Written change control procedures
o Any additional metrics required
o All monthly reports required to determine compliance with metrics
o A written escalation process if metrics are not met
o A schedule of all AAM and EDS and third party software with owner
identified
o A schedule of all AAM and EDS hardware with owner identified
o Documented roles and responsibilities of AAM and EDS leadership for this
agreement
o A list of third party subcontractors and suppliers as referenced in
Section 6.1 (f) of the Agreement
o Organization charts of AAM and EDS with names, functions, and locations
[AAM LOGO] [EDS LOGO]
March 1, 1998 EDS Private Page 65
<PAGE>
Schedule 3.3
Telecommunications Services
1. Telecommunications Services. Following the Effective Date, EDS will provide
to AAM the following Telecommunications Services to AAM's Buffalo Gear
facility:
(a) General. EDS will acquire, implement and administratively support on
AAM's behalf local access, outbound long distance calling, and
General Motors 8-Line calling services from AT&T or such other third
party long distance carrier, local exchange carrier, Post Telephone
and Telegraph administration (for international services) or other
vendor (in any case, the "Vendor") from which EDS may purchase
services from time to time to pass through to AAM and other EDS
customers as Telecommunications Services. EDS will work with AAM and
the Vendor to develop a plan to implement the Telecommunications
Services.
(b) Billing Administration. EDS will provide to AAM, on a monthly basis, a
consolidated bill of rated call detail containing the following
information: date and time of call; duration; destination (both number
and location); cost and rate classification; and total per AAM
location.
(c) Management Assistance. EDS will provide up to one person on-site at
the AAM Buffalo Gear facility to coordinate with the Vendor regarding
billing inquiries by AAM in connection with its use of the
Telecommunications Services. In addition, EDS will facilitate all
moves, adds and changes ("MAC") work reasonably required by AAM, which
may include changing telephones and features, installing new telephone
sets and lines, moving telephones internally and removing or
disconnecting telephones.
2. Quality, Performance and Remedies. EDS makes no representation or warranty
with respect to the quality of the Telecommunications Services made
available to it by the Vendor and passed through to AAM pursuant to this
Schedule 3.3. AAM's remedies for any service problems with respect to the
Telecommunications Services will be the remedies set forth in the
applicable tariff, regulations or agreement with the Vendor, which, in most
situations, will consist of monetary credits for lost service. EDS' sole
responsibility in this regard will be to assist AAM in the proper reporting
of any service problems and to pass through to AAM any credits received
from the Vendor as a result of such problems.
3. AAM's Responsibilities. In connection with AAM's use of the
Telecommunications Services, AAM will have the following responsibilities:
(a) Agency. Within 10 days of the Effective Date, AAM will provide a
letter of agency in form and substance reasonably satisfactory to EDS
and the Vendor designating the right of EDS or the Vendor to act as
agent for AAM with respect to all matters related to obtaining the
Telecommunications Services from the Vendor. AAM agrees to do, or
cause to be done, all such further acts
<PAGE>
and to execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, all such further documentation (including
billing transfer letters) as EDS may reasonably request in connection
with AAM's use of the Telecommunications Services. AAM acknowledges
that EDS' performance of its obligations under this Schedule 3.3, and
the timing of such performance, are dependent upon EDS' ability to
acquire the Telecommunications Services from the Vendor on terms that
will allow the Telecommunications Services to be passed through to AAM
in the manner contemplated hereby.
(b) Use of the Telecommunications Services. AAM will be responsible for
all authorized and unauthorized use of the Telecommunications Services
and for complying with all obligations that are applicable to AAM and
are set forth in any tariff, regulation or agreement with the Vendor.
In particular, AAM will be responsible for the protection of all
transmission facilities from unauthorized access, for the selection of
the appropriate access control products or services and for the proper
use of such products or services.
(c) Telecommunications Equipment. AAM will provide all telecommunications
equipment and related services that are required at all AAM locations
to which the Telecommunications Services will be provided pursuant to
this Schedule 3.3 (the "Telecommunications Equipment"). AAM will be
responsible for the operation and maintenance of the
Telecommunications Equipment, including any transfers, modifications
or adjustments of the Telecommunications Equipment or any
configurations thereof. In addition, AAM will be responsible for any
termination or other liabilities under any supplier contracts the
services under which will be replaced by the Telecommunications
Services as well as for any deinstallation activities that are
required before performance of the Telecommunications Services can
begin.
(d) Billing Administration. AAM will be responsible for any internal
billing and collections within AAM or among AAM affiliates of all
amounts invoiced to AAM for the Telecommunications Services.
(e) Other Services. AAM will continue to be responsible for all
telecommunications and related services provided by suppliers directly
to AAM, including any obligations that AAM may have under its
contracts with such suppliers.
4. Telecommunications Indemnification. Subject to Sections 12.1(f) and 12.2 of
this Agreement, AAM agrees to indemnify and defend EDS and hold EDS
harmless from any and all Losses arising out of, under or in connection
with any claims relating to (i) the abuse or fraudulent use of the
Telecommunications Services or (ii) any information, data or message
transmitted over the network by AAM that constitutes libel, slander,
infringement of copyright, invasion of privacy, violation of trans-border
data flow regulations or alteration of private records or data.
<PAGE>
5. Termination. If, during the term of this Agreement, AAM desires to
terminate the Telecommunications Services, AAM will have the option to do
so by so notifying EDS. However, any such termination will be subject to
(i) such notice and other requirements that are imposed by the Vendor or
are otherwise necessary for the orderly termination and transition of the
Telecommunications Services and the arrangement by AAM for substitute
service and (ii) AAM's payment of, or reimbursement to EDS for, any charges
incurred by EDS on account of such termination and transition.
6. Regulatory Requirements.
(a) The Parties expressly acknowledge that this Schedule 3.3 has been
negotiated, and the Telecommunications Services have been uniquely
customized, to satisfy the special requirements of AAM. The
Telecommunications Services are private services and are not common
carrier services.
(b) If the Vendor, in its sole discretion, amends or withdraws a tariff
covering the Telecommunications Services which materially alters or
invalidates this Schedule 3.3, EDS will have the option to (i)
negotiate modifications to this Schedule 3.3 with AAM or (ii)
terminate this Schedule 3.3, in whole or in part, by giving AAM at
least 30 days' prior notice of the nature and effective date of such
termination and provide to AAM a pro-rata refund of any prepaid
charges, subject to any limitations set forth in this Agreement.
(c) In no event will EDS have any liability to AAM as a result of (i) any
regulatory requirements imposed by any agency of the United States
government, state or local governments or applicable foreign
government on a Vendor or (ii) any independent actions that a Vendor
may undertake which alter the terms, conditions or methodology for
providing the Telecommunications Services or render the provision of
the Telecommunications Services unlawful.
<PAGE>
Schedule 3.4
Service Levels
(If applicable)
<PAGE>
Schedule 9.1
Charges
1. Monthly Charges.: Commencing on the Effective Date: $1,131,785.00
ERP Manufacturing Support. Commencing on August 1, 1998,
$816,930.00 will be added to the Monthly Charge for ERP
Manufacturing Support Services as described in Schedule 3.2.
HR/Payroll Support. Commencing June 1, 1999, $153,090.00 will be
added to the Monthly Charges for HR/Payroll Support Services as
described in Schedule 3.2.
Legacy System Reduction. Commencing thirty (30) days after the
date of written notice from AAM to EDS directing EDS to
discontinue support for the Legacy Systems, the Monthly Charge
will be reduced by the associated charge by system as described in
Schedule 3.2.
2. Variable Voice and Data Charges (Charges for Telecommunications Services).
In addition to the Monthly Charges, for all Data Center (IPACS) voice and
data telecommunications resources and services provided by EDS to AAM under
this Agreement, AAM shall pay EDS on a monthly usage basis at the
then-current EDS commercial rates for such resources and services. EDS will
provide AAM with thirty (30) days notice of any change in EDS commercial
rates. As of the Effective Date, based on previous usage volumes by
FDF/AAM, EDS estimates that the monthly variable charges will average
approximately $290,000. EDS anticipates that variable charges will
gradually decrease as systems are migrated from the IPC data center
environment to the local client/server environment.
<PAGE>
3. Desktop Support Charges. For support of the Desktop environment as outlined
in Schedule 3.2, AAM will be pay a variable charge per desktop unit based
on the rate schedule below. As of the Effective Date, there are 2,175
desktops being supported by EDS.
Desktop Units Monthly Charge per Desktop
Below 1,400 $200
1,401 - 1,600 $165.50
1,601 - 1,800 $163.50
1,801 - 2,000 $161.50
2,001 - 2,175 $159.50
2,175 - 2,300 $157.75
2,301 - 2,500 $156
2,501 - 2,700 $154
2,701 - 2,900 $152
2,901 - 3,100 $150
3,101 - 3,300 $148
3,301 - 3,500 $146
Above 3,500 $144
All Charges do not include, and are subject to, applicable taxes, inflation
adjustment and expenses.
<PAGE>
Schedule 13.8
Notices
In the case of EDS: with a copy to :
Electronic Data Systems Corporation Electronic Data Systems Corporation
5400 Legacy Drive 1840 Holbrook Avenue
Plano, Texas 75024-3105 Detroit, Michigan 48212-3488
Attention: General Counsel Attention: Account Executive
In the case of AAM: with a copy to:
American Axle & Manufacturing, Inc. American Axle & Manufacturing, Inc.
1840 Holbrook Avenue 1840 Holbrook Avenue
Detroit, Michigan 48212-3488 Detroit, Michigan 48212-3488
Attention: Vice President, CIO Attention: General Counsel
