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EXHIBIT 10.1
Agreement
THIS
AGREEMENT made this day, May 3, 2008, as amended May 16,
2008, by and between General Motors Corporation (“GM”)
and American Axle & Manufacturing, Inc.
(“AAM”).
Whereas
AAM is in process of negotiating a collective bargaining agreement
with the UAW that has resulted in a protracted strike which has
impacted GM operations nationwide.
Whereas
AAM has advised GM that it has made significant progress in its
negotiations with the UAW and that with the level of GM support set
forth in this agreement AAM can reach a timely agreement with the
UAW on a new AAM-UAW collective bargaining agreement.
For
valuable consideration, the receipt and sufficiency for which is
acknowledged, the parties agree as follows:
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1. |
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In support of the transition of the UAW-represented legacy
labor at AAM’s original facilities, GM shall pay AAM a total
of $175 million in cash for buyouts, early retirements and
buydowns as determined by AAM payable as follows: |
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$15 million on or before August 1, 2008
$100 million on or before October 1, 2008, and
$60 million on or before April 1, 2009 |
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2. |
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The Asset Purchase Agreement, dated February 18, 1994,
between GM and AAM (the “APA”) shall be amended as
follows: |
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a. |
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The first sentence of section 5.5.4 of the APA shall provide
that AAM shall have no liability to GM for post-retirement health
care and life insur |
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