VISTEON CORP
THIRD AMENDMENT TO THE MASTER SERVICES AGREEMENT
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<TYPE>EX-10.3
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<FILENAME>k35009exv10w3.htm
<DESCRIPTION>THIRD AMENDMENT TO THE MASTER SERVICES AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.3</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THIRD AMENDMENT TO MASTER SERVICES AGREEMENT</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This THIRD AMENDMENT TO MASTER SERVICES AGREEMENT, dated as of August&nbsp;14, 2008 (this
&#147;<U>Third MSA Amendment</U>&#148;) is made by and between VISTEON CORPORATION, a Delaware corporation
(&#147;<U>Visteon</U>&#148;) and AUTOMOTIVE COMPONENTS HOLDINGS, LLC, a Delaware limited liability company
(&#147;<U>ACH LLC</U>&#148;, and collectively with its Subsidiaries, &#147;<U>ACH</U>&#148;). Visteon and ACH are
each individually referred to herein as a &#147;<U>Party</U>,&#148; and collectively, as the
&#147;<U>Parties</U>.&#148;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Visteon Corporation, a Delaware corporation (&#147;<U>Visteon</U>&#148;) and Automotive
Components Holdings, LLC, a Delaware limited liability company (&#147;<U>ACH</U>&#148;) have entered into
that Master Services Agreement dated September&nbsp;30, 2005, as amended by that First Amendment to the
Master Services Agreement dated April&nbsp;24, 2006 and that Second Amendment to Master Services
Agreement dated June&nbsp;7, 2007 (the &#147;<U>Master Services Agreement</U>&#148;), which establishes the terms
and conditions pursuant to which Visteon provides or will provide certain Services to ACH, Ford and
certain ACH Buyers (as defined in the Master Services Agreement).
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Visteon and ACH wish to amend the Master Services Agreement on the terms and subject
to the conditions set forth herein;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the covenants and agreements set forth in this Third MSA
Amendment, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Visteon and ACH agree as follows:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Term</U>. Notwithstanding anything to the contrary in the Master Services Agreement,
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Extended Term of the Master Services Agreement is hereby
extended, effective as of the date of this Third MSA Amendment, for twelve (12)
months from December&nbsp;31, 2009, so that the Master Services Agreement will
expire at 12:01&nbsp;a.m. January&nbsp;1, 2011, unless earlier terminated in accordance
with its terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The 5% mark-up contemplated in Section&nbsp;5.1(a) of the Master
Services Agreement shall continue to apply to Service Fees during the Extended
Term as extended herein, but there shall be no additional mark-up or increase
in such 5% mark-up as it relates to ACH during such Extended Term; however,
nothing in this provision amends or modifies Section&nbsp;5.1(b) of the Master
Services Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon the expiration or termination of the Extended Term and at
the request of ACH, Visteon shall negotiate in good faith to provide ACH, on
commercially reasonable terms, with (i)&nbsp;Services necessary for the continuation
of ACH operations and (ii)&nbsp;those services that are required to
</TD>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide access to and facilitate use of the Climate Tools provided to ACH
pursuant to the Intellectual Property Contribution Agreement, as amended.
If, during the Term or any Extended Term of the Master Services Agreement,
ACH should terminate a Service that is required for the continued access to
and use of the executable version of engineering design tools, then Visteon
shall negotiate in good faith to provide ACH, on commercially reasonable
terms, with such services as are necessary for the continuation of such
access and use. For the avoidance of doubt, nothing in this Amendment
expands or modifies any rights granted to ACH under the terms of the
Intellectual Property Contribution Agreement, as amended.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Master Services Agreement is hereby amended to reflect the foregoing.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Services Fees</U>. The following Section&nbsp;5.1(e) shall be inserted into the Master
Services Agreement:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in this Agreement (in particular,
Subsection 5.1(d)(i)(4)), the Revised BMO Charge shall be eliminated and replaced without
further action of the Parties, effective as of January&nbsp;1, 2009 and for the remainder of the
Term of the Master Services Agreement, with a variable fee of ten percent (10%) of the
actual Service Fees incurred by ACH in the previous calendar month (the &#147;<U>Variable BMO
Charge</U>&#148;), provided, however, that the Variable BMO Charge:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall apply to costs of Visteon Third Party Service Providers incurred and
paid by Visteon and to reasonable and customary accruals related to Services
provided by Visteon Third Party Service Providers;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall not apply to accruals (e.g., annual and long-term incentives, bonus)
relating to shared personnel that are Visteon employees providing Services under the
Master Services Agreement;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not apply to:
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Services that are resold by ACH
pursuant to Section&nbsp;3.2(d); or</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the 5% mark-up on all Services
provided to ACH during any Extended Term,</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">except that during any Extended Term, the 5% markup on Services provided for in
Section&nbsp;5.1(a) of the Master Services Agreement shall not apply to any portion of the
Variable BMO Charge.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <U>BMO Services</U>. The parties acknowledge that, notwithstanding the change in the BMO
Charges pursuant to the new Section&nbsp;5.1(e), the same services that are provided to ACH as of the
date hereof by the BMO shall continue to be provided to ACH during the Extended Term.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Counterparts</U>. This Third MSA Amendment may be executed in two or more counterparts, all
of which, taken together, shall be considered to be one and the same instrument.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the Parties hereto, having caused this Third MSA Amendment to be
duly executed, do hereby warrant and represent that their respective signatories, whose signatures
appear below, have been and are on the date of this document officers duly authorized by all
necessary and appropriate corporate action to execute this Third MSA Amendment.
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    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left">VISTEON CORPORATION, a Delaware corporation</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">AUTOMOTIVE COMPONENTS <BR>
HOLDINGS, LLC, a Delaware limited liability company</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt">
<TD>&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Heidi A. Sepanik
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ W. C. Connelly</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">W. C. Connelly</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top" colspan="3">Its: Secretary</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Its: Chief Executive Officer and Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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