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<SEC-DOCUMENT>0001047469-07-004426.txt : 20070517
<SEC-HEADER>0001047469-07-004426.hdr.sgml : 20070517
<ACCEPTANCE-DATETIME>20070517164021
ACCESSION NUMBER:		0001047469-07-004426
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20070517
FILED AS OF DATE:		20070517
DATE AS OF CHANGE:		20070517

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MAGNA INTERNATIONAL INC
		CENTRAL INDEX KEY:			0000749098
		STANDARD INDUSTRIAL CLASSIFICATION:	MOTOR VEHICLE PARTS & ACCESSORIES [3714]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11444
		FILM NUMBER:		07861727

	BUSINESS ADDRESS:	
		STREET 1:		337 MAGNA DRIVE
		STREET 2:		N/A
		CITY:			AURORA, ONTARIO, CAN
		STATE:			A6
		ZIP:			L4G 7K1
		BUSINESS PHONE:		9057262462

	MAIL ADDRESS:	
		STREET 1:		337 MAGNA DRIVE
		STREET 2:		N/A
		CITY:			AURORA, ONTARIO, CAN
		STATE:			A6
		ZIP:			L4G 7K1
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>a2178061z6-k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#07ZBT19201_1">QuickLinks</A></FONT>
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<P><FONT SIZE=2>
<hr noshade width=100% align=left size=4>
<hr noshade width=100% align=left size=1> </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington,&nbsp;D.C. 20549  </B></FONT></P>

<BR>
<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 6-K  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>REPORT OF FOREIGN PRIVATE ISSUER  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B> Pursuant to Rule&nbsp;13a-16 or&nbsp;15d-16<BR>
of the Securities Exchange Act of 1934</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>For
the month of May&nbsp;2007 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Commission
File Number 001-11444 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>MAGNA INTERNATIONAL&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2>(Exact Name of Registrant as specified in its Charter) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>337&nbsp;Magna Drive, Aurora, Ontario, Canada L4G&nbsp;7K1<BR>  </B></FONT><FONT SIZE=2>(Address of principal executive offices) </FONT></P>

<P><FONT SIZE=2>Indicate
by check mark whether the registrant files or will file annual reports under cover Form&nbsp;20-F or Form&nbsp;40-F. </FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="90%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>Form&nbsp;20-F</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>Form&nbsp;40-F</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>Indicate
by check mark if the registrant is submitting the Form&nbsp;6-K in paper as permitted by Regulation&nbsp;S-T
Rule&nbsp;101(b)(1):&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></P>

<P><FONT SIZE=2><B>Note:</B></FONT><FONT SIZE=2> Regulation&nbsp;S-T Rule&nbsp;101(b)(1) only permits the submission in paper of a Form&nbsp;6-K if submitted solely
to provide an attached annual report to security holders. </FONT></P>

<P><FONT SIZE=2>Indicate
by check mark if the registrant is submitting the Form&nbsp;6-K in paper as permitted by Regulation&nbsp;S-T
Rule&nbsp;101(b)(7):&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></P>

<P><FONT SIZE=2><B>Note:</B></FONT><FONT SIZE=2> Regulation&nbsp;S-T Rule&nbsp;101(b)(7) only permits the submission in paper of a Form&nbsp;6-K if submitted to
furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or
legally organized (the&nbsp;registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a
Form&nbsp;6-K submission or other Commission filing on&nbsp;EDGAR. </FONT></P>

<P><FONT SIZE=2>Indicate
by check mark whether the registrant, by furnishing the information contained in this Form, is also thereby furnishing the information to the Commission pursuant to
Rule&nbsp;12g3-2(b) under the Securities Exchange Act of&nbsp;1934. </FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="90%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>Yes</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>No</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>If
"Yes" is marked, indicate below the file number assigned to the registrant in connection with
Rule&nbsp;12g3-2(b):&nbsp;82-&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ba19201_signatures"> </A>
<A NAME="toc_ba19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURES    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized. </FONT></P>

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<TD WIDTH="44%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>MAGNA INTERNATIONAL&nbsp;INC.</FONT><FONT SIZE=2><BR>
(Registrant)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><BR><FONT SIZE=2> Date: May&nbsp;17, 2007</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="44%"><BR><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BASSEM A. SHAKEEL</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Bassem A. Shakeel,<BR></FONT> <FONT SIZE=2><I>Assistant Secretary<BR> </I></FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ba19201_exhibits"> </A>
<A NAME="toc_ba19201_2"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBITS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>Exhibit&nbsp;99.1  </B></FONT></P>

<P><FONT SIZE=2>Material
Change Report of the Registrant dated May&nbsp;17, 2007 with respect to a press release issued on May&nbsp;10, 2007, copy of which is attached to this Material Change&nbsp;Report. </FONT></P>

<P><FONT SIZE=2><B> Exhibit&nbsp;99.2  </B></FONT></P>

<P><FONT SIZE=2>Transaction
Agreement dated May&nbsp;10, 2007 filed in Canada via SEDAR on May&nbsp;17, 2007, relating to the proposed transaction involving the Registrant, Russian Machines, the Stronach Trust
and certain other parties, which transaction is referred to in the Registrant's Form&nbsp;TO-C dated May&nbsp;10,&nbsp;2007. </FONT></P>

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<BR>
<P><br><A NAME="07ZBT19201_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ba19201_1">SIGNATURES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ba19201_2">EXHIBITS</A></FONT><BR>
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a2178061zex-99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="na19201_exhibit_99.1"> </A>
<A NAME="toc_na19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;99.1    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>FORM 51-102F3  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>MATERIAL CHANGE REPORT  </B></FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Name and Address of Company</U>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reporting issuer is Magna International&nbsp;Inc. (the&nbsp;"Corporation" or "Magna"), a corporation existing under the laws of the Province of Ontario
and having its registered office at 337&nbsp;Magna Drive, Aurora, Ontario, Canada L4G&nbsp;7K1. </FONT></P>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Date of Material Change</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The material change occurred on May&nbsp;10, 2007. </FONT></P>

<P><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Press Release</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On Thursday, May&nbsp;10, 2007 at approximately 3:30&nbsp;a.m. (Toronto time), a press release describing the material change was issued by the Corporation
and delivered to the Ontario Securities Commission and the other Canadian securities regulatory authorities, to the TSX, to the NYSE and to Canada NewsWire for publication and dissemination through
its North American Disclosure and European Financial Capitals Plus networks. A copy of the press release is&nbsp;attached. </FONT></P>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Summary of Material Change</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;10, 2007, the Corporation and Basic Element Company ("Basic Element") announced a major strategic investment in the Corporation by Open Joint Stock
Company Russian Machines ("RM"), a wholly owned subsidiary of Basic Element. Under the terms of a transaction agreement (the&nbsp;"Transaction Agreement") entered into by the Corporation, the
Stronach Trust (the&nbsp;Corporation's controlling shareholder), 445327&nbsp;Ontario Limited ("445"), RM, Veleron Holding&nbsp;B.V. i.o. ("RM&nbsp;Sub") and certain principals who are also
members of the Corporation's executive management (the&nbsp;"Principals", as further defined below), RM would invest approximately US$1.54&nbsp;billion to indirectly acquire
20,000,000&nbsp;Class&nbsp;A Subordinate Voting Shares of the Corporation from treasury. A new Canadian holding company, Newco, would hold the respective holdings in the Corporation of the
Stronach Trust and RM as well as a portion of the holdings held by the Principals. The Corporation would continue to be a Canadian-based company whose shares are listed on The Toronto Stock Exchange
and The New&nbsp;York Stock&nbsp;Exchange. </FONT></P>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Full Description of Material Change</U>  </B></FONT></P>

<UL>

<P><FONT SIZE=2><B><I> Description of Transaction and Material Terms  </I></B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;10, 2007, the Corporation and Basic Element announced a major strategic investment in the Corporation by RM, a wholly owned subsidiary of Basic
Element. Under the terms of the Transaction Agreement entered into by the Corporation, the Stronach Trust, 445, RM, RM Sub and the Principals, RM would invest approximately US$1.54&nbsp;billion to
indirectly acquire 20&nbsp;million Class&nbsp;A Subordinate Voting Shares of the Corporation from treasury. Newco would hold the respective holdings in the Corporation of the Stronach Trust and RM
as well as a portion of the holdings held by the Principals who are also members of the Corporation's executive management. The Corporation would continue to be a Canadian-based company whose shares
are listed on The Toronto Stock Exchange and The New&nbsp;York Stock&nbsp;Exchange. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<A NAME="page_na19201_1_2"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
transactions contemplated by the Transaction Agreement would be effected by way of a court approved plan of arrangement (the&nbsp;"Plan of Arrangement") under the laws of Ontario,
Canada and is subject to court and regulatory approvals and, subject to court approval, the following shareholder approvals: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>two-thirds
of the votes cast by holders of the Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares represented at a shareholders meeting to be
convened by the Corporation, voting together;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>two-thirds
of the votes cast by the holders of the Class&nbsp;B Shares represented at such shareholders meeting, voting separately as a&nbsp;class;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>a
majority of the votes cast by holders of the Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares represented at such shareholders meeting, excluding shares
held by 445, the Principals and any other "insiders," (as&nbsp;defined in the TSX Company Manual), voting together;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>a
majority of votes cast by holders of the Class&nbsp;A Subordinate Voting Shares represented at such shareholders meeting, excluding shares held by such "insiders,"
voting separately as a class;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>with
respect only to the redemption and modification of the Class&nbsp;B Shares described below, a majority of the votes cast by holders of the Class&nbsp;B Shares
represented at such shareholders meeting, excluding shares held by 445, the Principals, and certain other parties deemed to be "interested" shareholders under applicable Canadian securities law,
voting separately as a&nbsp;class. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Completion
of the transaction is also subject to finalizing definitive documentation and customary closing conditions. The Transaction Agreement may be terminated under certain
circumstances before the effectiveness of the Plan of Arrangement, including (i)&nbsp;by mutual agreement of the Corporation, RM and 445, (ii)&nbsp;by the Corporation on five days' notice or by
either RM or 445&nbsp;if the Corporation's board of directors fails to recommend, recommends against or withdraws, modifies or changes its approval or recommendation of the Plan of Arrangement in a
manner adverse to RM, (iii)&nbsp;by the Corporation, 445 or RM if the Certificate of Arrangement has not been issued on or before October&nbsp;31, 2007 or such later date as may be mutually agreed
from time to time, or (iv)&nbsp;by RM if the Corporation enters into certain transactions outside the ordinary course of&nbsp;business. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Transaction Agreement, 445&nbsp;would, among other things, incorporate a new wholly-owned subsidiary ("446"), which would, in turn, incorporate Newco as a wholly-owned
subsidiary. Pursuant to the Plan of Arrangement, 445&nbsp;would transfer the 726,829&nbsp;Class&nbsp;B Shares currently held by it to 446, which would in turn transfer such Class&nbsp;B Shares
to Newco in return for 420&nbsp;Class&nbsp;B shares of Newco that would carry an approximately 53% voting interest and 42% dividend entitlement. The remainder of the share capital of Newco would
be divided such that (x)&nbsp;RM Sub would hold 420&nbsp;Class&nbsp;C shares of Newco that would carry an approximately 36% voting interest and 42% dividend entitlement and (y)&nbsp;Donald J.
Walker and Siegfried Wolf, who are the co-chief executive officers of the Corporation, and Vincent Galifi, Peter Koob and Jeffrey O. Palmer, who are current members of the Corporation
management (collectively, the Principals), would hold in the aggregate, indirectly, 130&nbsp;Class&nbsp;A shares and 30&nbsp;Class&nbsp;D non-voting shares of Newco that would
represent in the aggregate an approximately 11% voting interest (shared equally as between Donald J. Walker and Siegfried Wolf only) and approximately a 16% dividend entitlement in Newco. RM Sub's
interest in Newco would be issued in consideration for US$76,830,000, constituting 5% of the "RM Investment Amount" (being US$1,536,600,000) and the interest of the Principals in Newco would be issued
in exchange for the transfer by the Principals to Newco of 605,000&nbsp;Class&nbsp;A Subordinate Voting Shares currently held by&nbsp;them. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<A NAME="page_na19201_1_3"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further
to the Plan of Arrangement, Newco would subscribe for 1,000,000&nbsp;preferred shares of a new wholly-owned subsidiary ("Newco II") for cash equal to 5% of the RM Investment
Amount. Newco would also own 100&nbsp;voting shares of Newco II. RM Sub would subscribe for 100&nbsp;non-voting common shares of Newco II and loan to Newco II an amount equal to the
Canadian dollar equivalent of US$1,459,770,000, being 95% of the RM Investment Amount (the&nbsp;"Newco II Loan"). Newco II would subscribe for 20,000,000&nbsp;Class&nbsp;A Subordinate Voting
Shares at a price equal to the RM Investment Amount using the proceeds of the Newco II Loan and the Newco II subscription amount contributed to&nbsp;Newco. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a result of the transactions contemplated by the Transaction Agreement, Newco and Newco II would hold 20,605,000&nbsp;Class&nbsp;A Subordinate Voting Shares and
726,829&nbsp;Class&nbsp;B Shares, collectively representing approximately 56.9% of the total voting power of the Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares. If approved by
the minority Class&nbsp;B shareholders pursuant to a special vote of the Class&nbsp;B Shareholders pursuant to the Plan of Arrangement: (i)&nbsp;the Corporation would acquire for cancellation
all of the outstanding Class&nbsp;B Shares other than those held by Newco for C$114.00 in cash per Class&nbsp;B Share; and (ii)&nbsp;the number of votes per share attached to the Class&nbsp;B
Shares would be reduced to 300&nbsp;votes per Class&nbsp;B Share. As a consequence, Newco and Newco II would control Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares collectively
representing approximately 68.8% of the total voting power of the Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares. The purpose of the reduction of the votes attached to the
Class&nbsp;B Shares is to achieve a result whereby the Class&nbsp;B Shares held by Newco represent approximately the same percentage of the total votes carried by all the outstanding
Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares (on&nbsp;a fully-diluted basis) as were carried by the Class&nbsp;B Shares controlled or directed by 445 and Frank Stronach,
excluding the shares held by the Corporation's Canadian and U.S.&nbsp;deferred profit sharing plans, prior to the transactions contemplated by the Transaction Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
20,000,000&nbsp;Class&nbsp;A Subordinate Voting Shares held by Newco II would be pledged by Newco II as security for the Newco II Loan.RM Sub is permitted to pledge some or all
of the Newco and Newco II shares held by it, as well as the Newco II Loan and the 20,000,000&nbsp;Class&nbsp;A Subordinate Voting Shares pledged to RM Sub as security for the Newco II Loan, to the
person or persons providing financing to RM or RM Sub in respect of the RM Investment Amount. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a result of the transactions contemplated by the Transaction Agreement, the shareholders of Newco would share (</FONT><FONT SIZE=2><I>pro&nbsp;rata</I></FONT><FONT SIZE=2> to their
respective equity interests) in any dividends received on the Class&nbsp;A Subordinate Voting Shares and the Class&nbsp;B Shares held by Newco and Newco II. Under the terms of the Transaction
Agreement, at any time after the second anniversary of the effective date of the Plan of Arrangement, RM Sub would have the right to sell its Newco shares and any Newco II shares it holds to Newco or
its designee (the&nbsp;"RM Exit Right") for a purchase price that would result in RM Sub receiving (a)&nbsp;the pre-tax value to Newco II of 20,000,000&nbsp;Class&nbsp;A
Subordinate Voting Shares up to the RM Investment Amount plus (b)&nbsp;50% of the amount, if any, by which the pre-tax value to Newco and Newco II of 20,000,000&nbsp;Class&nbsp;A
Subordinate Voting Shares exceeds the RM Investment Amount less (c)&nbsp;25% of the tax incurred by Newco and Newco II in connection with such buyback. In addition, at any time after the third
anniversary of the effective date of the Plan of Arrangement, 446&nbsp;would have the right to require RM Sub to sell its Newco shares and any Newco II shares it holds to Newco or its designee
(the&nbsp;"446&nbsp;Exit Right") for a purchase price that would result in RM Sub receiving (x)&nbsp;the pre-tax value to Newco and Newco II of 20,000,000&nbsp;Class&nbsp;A
Subordinate Voting Shares up to the RM Investment Amount plus (y)&nbsp;the amount, if any, by which the pre-tax value to Newco and Newco II of 20,000,000&nbsp;Class&nbsp;A
Subordinate Voting Shares exceeds the RM Investment Amount less (z)&nbsp;any tax incurred by Newco and Newco II in connection with such&nbsp;buyback. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
sale of RM Sub's Newco II shares and the Newco II loan in connection with the RM Exit Right or the 446&nbsp;Exit Right will be effected, if possible, by way of RM Sub converting
the Newco II Loan to Newco II shares and then Newco and RM Sub exchanging all their Newco II shares for Magna Class&nbsp;A Subordinate Voting Shares (the&nbsp;"Tuck-In Transaction").
If this cannot be done or RM Sub and 446&nbsp;otherwise agree, then RM Sub and 446&nbsp;will use reasonable efforts to identify an alternative structure which minimizes to the greatest extent
reasonably possible the tax to Newco and Newco II in connection with any such buyback while preserving the economic substance of the other provisions of the agreements among the Newco shareholders. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
a Tuck-In Transaction is completed, the Magna Class&nbsp;A Subordinate Voting Shares received by RM Sub will satisfy the portion of the purchase price attributable to RM
Sub's Newco II shares and the Newco II Loan. For the balance of the purchase price, at RM Sub's election, Newco or its designee will satisfy the consideration in cash or in
Magna Class&nbsp;A Subordinate Voting Shares. If a Tuck-In Transaction is not completed, then, at RM Sub's election, Newco or its designee will satisfy the consideration in cash or Magna
Class&nbsp;A Subordinate Voting&nbsp;Shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the transactions contemplated by the Transaction Agreement, RM Sub entered into an agreement (the&nbsp;"European Transaction Agreement") whereby, on the effective
date of the Plan of Arrangement, it would invest a net amount of US$150&nbsp;million for a 50% interest in Stronach&nbsp;&amp;&nbsp;Co. ("S&amp;Co."), a European company that provides the consulting
services of Mr.&nbsp;Frank Stronach in relation to the Corporation's business outside Canada and Austria. As a result of this investment, RM would be entitled to a 50% share of consulting fees paid
by the Corporation and its affiliates to S&amp;Co. and its affiliates under the existing arrangements. The completion of the transactions contemplated by the European Transaction Agreement is conditional
upon the effectiveness of the Plan of&nbsp;Arrangement. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Newco Governance  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Transaction Agreement, 446, RM Sub, Newco and Newco II would enter into certain agreements governing their relationship with respect to Newco and Newco
II and providing for the RM Exit Right, the 446&nbsp;Exit Right and certain other matters. The terms of such agreements would specify, among other things, the&nbsp;following: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
board of directors of Newco would consist of 6&nbsp;directors: 2&nbsp;nominees of 446 (including the Chair), 2&nbsp;nominees of RM Sub and each of the
co-chief executive officers of the Corporation (being nominees of the Principals), provided that (i)&nbsp;if either of the co-chief executive officers ceases to serve as a
Newco director, unless 446 and RM Sub otherwise agree, neither of the co-chief executive officers would be entitled to remain a director of Newco and the Principals would no longer be
entitled to Newco Board representation and (ii)&nbsp;if either of the co-chief executive officers resigns as an executive officer of the Corporation, unless 446 and RM Sub otherwise
agree, such co-chief executive officer would be entitled to continue to serve as a director of&nbsp;Newco;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>each
of 446 and RM Sub would have veto rights over all actions taken by Newco and Newco II, other than voting in respect of the election or removal of directors of the
Corporation or Newco II (in&nbsp;accordance with the terms set out&nbsp;below);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>446
and RM Sub would cause the Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares held by Newco and Newco II to be voted to effect the following in respect
of the Corporation:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Corporation's board would consist of 14&nbsp;directors: 6&nbsp;nominees of 446 (including the Chair), 6&nbsp;nominees of RM Sub and 2&nbsp;nominees of the
Principals (both co-chief executive officers of the Corporation);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>at
least 4&nbsp;nominees of each of 446 and RM Sub must meet the independence requirements of applicable securities laws and stock exchange&nbsp;rules; </FONT></DD></DL>
</DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>there
would be governance guidelines that would provide that: (i)&nbsp;directors shall declare their interest and abstain from voting on all matters where there is an
actual or perceived conflict, including, in the case of Principals who are directors, the appointment of members to Board committees or on any matter where 446 or RM Sub have declared a conflict; and
(ii)&nbsp;any material transaction out of the ordinary course of business shall require the support of two-thirds of the Corporation's directors, where a transaction shall be deemed to
be material if the transaction exceeds certain specified thresholds;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>without
the prior approval of the Newco board of directors, neither RM Sub nor 446 (nor&nbsp;their respective affiliates nor their shareholders) would be permitted to
acquire any additional shares of the Corporation, excluding Class&nbsp;A Subordinate Voting Shares which, when added to the Class&nbsp;A Subordinate Voting Shares held or controlled by Newco,
Newco II and their shareholders (after giving effect to the exercise of any options held by them), would exceed 20% in aggregate of the Class&nbsp;A Subordinate Voting Shares outstanding;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
board of directors of Newco II would be the same as the board of directors of Newco, unless otherwise agreed to by the Newco board of&nbsp;directors. </FONT></DD></DL>
</UL>
</UL>
<UL>

<P><FONT SIZE=2><I> Purpose and Business Reasons for the Transaction  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The investment by RM will accelerate the Corporation's strategic efforts to capitalize on the growth opportunities within the Russian and other automotive
markets, and align the interests of RM and the Stronach Trust with respect to Magna. Basic Element is one of the largest, privately held industrial conglomerates in Russia, and is beneficially held by
Oleg Deripaska. RM holds an interest in GAZ Group which is Russia's second-largest automotive company. This strategic investment is expected to expand the Corporation's growth potential and create
value for shareholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Russian automotive market is among the fastest growing in the world. A number of the world's leading automakers are expanding in Russia, where the local automotive supply base is
still under development. The local automakers in Russia, which hold significant shares of their home market, operate vertically integrated manufacturing operations, an approach they are eager to
streamline. Rising income per capita and a low level of car ownership per capita also make Russia an attractive market for Magna. More than 2&nbsp;million cars were sold in Russia in 2006, a
20&nbsp;percent increase compared to the previous&nbsp;year. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the terms of the Transaction Agreement, RM will assist and support the Corporation with identifying, developing and implementing strategic opportunities in the Russian
automotive industry. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Review and Approval Process by the Board and Special Committee  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Transaction Agreement was approved by the Corporation's board of directors after receiving the unanimous recommendation of a Special Committee of independent
directors of the Corporation comprised of Messrs.&nbsp;Michael D. Harris, who acted as Chairman, Klaus Mangold, Donald Resnick, Franz Vranitzky, and Lawrence D. Worrall. The Special Committee
retained Fasken Martineau DuMoulin&nbsp;LLP to act as its independent legal advisor and CIBC&nbsp;World Markets&nbsp;Inc. to act as its independent financial advisor. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<UL>

<P><FONT SIZE=2><I> Substantial Issuer Bid  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditional upon completion of the transaction and implementation of the Plan of Arrangement and subject to regulatory approval, Magna intends to conduct a
substantial issuer bid to repurchase up to 20&nbsp;million outstanding Class&nbsp;A Subordinate Voting&nbsp;Shares. </FONT></P>


<P><FONT SIZE=2><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reliance on Section&nbsp;7.1(2) or&nbsp;(3) of NI&nbsp;51-102</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This report is not being filed on a confidential basis. </FONT></P>

<P><FONT SIZE=2><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Omitted Information</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </FONT></P>

<P><FONT SIZE=2><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Executive Officer</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For further information, please contact J. Brian Colburn, Executive Vice-President, Special Projects and Secretary of the Corporation at
905-726-7022. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DATED
at Aurora, Ontario the 17<SUP>th</SUP>&nbsp;day of May, 2007. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2><A
NAME="page_nc19201_1_1"> </A> </FONT></P>

<!-- TOC_END -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="76%" VALIGN="BOTTOM"><FONT SIZE=2><B>
<IMG SRC="g760100.jpg" ALT="LOGO" WIDTH="163" HEIGHT="36">
 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM"><FONT SIZE=2><B>[BASIC<BR>
ELEMENT<BR>
LOGO]</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%" VALIGN="BOTTOM"><BR><FONT SIZE=3><B>Magna International&nbsp;Inc.</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM"><FONT SIZE=3><BR>&nbsp;</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM"><BR><FONT SIZE=3><B>Basic Element</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%" VALIGN="BOTTOM"><FONT SIZE=2>337&nbsp;Magna Drive</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM"><FONT SIZE=2>30&nbsp;Rochdelskaya Street</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%" VALIGN="BOTTOM"><FONT SIZE=2>Aurora, Ontario L4G&nbsp;7K1</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM"><FONT SIZE=2>Moscow 123022&nbsp;Russia</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%" VALIGN="BOTTOM"><FONT SIZE=2>Tel (905)&nbsp;726-2462</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM"><FONT SIZE=2>Tel +7-495-720-5028</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%" VALIGN="BOTTOM"><FONT SIZE=2>Fax (905)&nbsp;726-7164</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" VALIGN="BOTTOM"><FONT SIZE=2>Fax +7-495-720-5168</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="nc19201_joint_press_release"> </A>
<A NAME="toc_nc19201_1"> </A>
<BR></FONT><FONT SIZE=3><B>JOINT PRESS RELEASE  <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="nc19201_magna_and_basic_elemen__nc102167"> </A>
<A NAME="toc_nc19201_2"> </A>
<BR></FONT><FONT SIZE=3><B><U>MAGNA AND BASIC ELEMENT ANNOUNCE STRATEGIC INVESTMENT</U>  <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>May&nbsp;10, 2007, Aurora, Ontario, Canada and Moscow, Russia&nbsp;&#151;&nbsp;</B></FONT><FONT SIZE=2>Magna International&nbsp;Inc. (TSX: MG.A,
MG.B; NYSE: MGA) and Basic Element today announced a major strategic investment in Magna by Russian Machines, a wholly owned subsidiary of Basic Element. This investment will accelerate Magna's
strategic efforts to capitalize on the growth opportunities within the Russian and other automotive markets, and align the interests of Russian Machines and the Stronach Trust, Magna's controlling
shareholder, with respect to Magna. Basic Element is one of the largest, privately held industrial conglomerates in Russia, and is beneficially held by Oleg Deripaska. Russian Machines holds an
interest in Gaz Group which is Russia's second-largest automotive company. This strategic investment is expected to expand Magna's growth potential and create value for shareholders. </FONT></P>

<P><FONT SIZE=2>The
Russian automotive market is among the fastest growing in the world. A number of the world's leading automakers are expanding in Russia, where the local automotive supply base is still under
development. The local automakers in Russia, which hold significant shares of their home market, operate vertically integrated manufacturing operations, an approach they are eager to streamline.
Rising income per capita and a low level of car ownership per capita also make Russia an attractive market for Magna. More than 2&nbsp;million cars were sold in Russia in 2006, a 20&nbsp;percent
increase compared to the previous&nbsp;year. </FONT></P>

<P><FONT SIZE=2>Frank
Stronach, Magna's Chairman commented: "This proposed alliance with Basic Element and its respected founder and Chairman, Oleg Deripaska, is an exciting opportunity for Magna. Our partnership
will accelerate Magna's growth in Russia and surrounding countries, markets that we see as holding significant opportunities for us. In addition, the culture, business philosophies and operating
principles that have been the cornerstone of Magna's success for more than 50&nbsp;years, including employee profit sharing reflected in our Corporate Constitution and the Employee Charter
principles, will be preserved and will continue to be our strength going&nbsp;forward." </FONT></P>

<P><FONT SIZE=2>"We
are always pursuing ways to advance our leading position within the Russian automotive sector," said Oleg Deripaska, Chairman of the Supervisory Board of Basic Element and Chairman of the Board of
Directors of Russian Machines. "Our partnership with Magna gives us unique competitive advantages and significant growth potential within domestic and neighbouring markets. I have always admired
Magna's technological strengths, its know-how and the talent and professionalism of its people. We have already had excellent cooperation in our projects in Russia, and also believe that
Magna, as a truly global company, will help us achieve our international goals." </FONT></P>

<P><FONT SIZE=2><B><U>Proposed Transaction</U>  </B></FONT></P>

<P><FONT SIZE=2>Under
the terms of the transaction agreement entered into by Magna, the Stronach Trust and Russian Machines, Russian Machines would invest approximately US$1.54&nbsp;billion to indirectly acquire
20&nbsp;million Class&nbsp;A Subordinate Voting Shares of Magna from treasury. A new Canadian holding company ("Newco"), would hold the respective holdings in Magna of the Stronach Trust, Russian
Machines, and certain principals who are also members of Magna's executive management. Magna would continue to be a Canadian-based company whose shares are listed on the Toronto and New&nbsp;York
Stock Exchanges. </FONT></P>

<P><FONT SIZE=2>Subject
to acceptance and approval by the Toronto Stock Exchange, the 20&nbsp;million Class&nbsp;A Subordinate Voting Shares of Magna would be issued for US$76.83 per share, representing the
volume-weighted average closing price of Magna's Class&nbsp;A Subordinate Voting Shares on the New&nbsp;York Stock Exchange over the 20&nbsp;trading days ended April&nbsp;20, 2007, the last
trading day prior to the receipt of the proposal letter from Russian Machines. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2>Following
completion of the transaction, each of the Stronach Trust and Russian Machines will be entitled to nominate six Board members including at least four independent directors. Magna's
Co-CEO's will also be nominated to serve as directors on the 14&nbsp;member&nbsp;Board. </FONT></P>

<P><FONT SIZE=2>In
addition, under the terms of the proposed transaction: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Subject
to the approval of a "majority of the minority" of the holders of Class&nbsp;B Shares, Magna would repurchase all Class&nbsp;B shares not held by the Stronach
Trust for cash consideration of Cdn$114.00, representing a premium of approximately 30% over the volume-weighted average closing price of Magna's Class&nbsp;A Subordinate Voting Shares on the
Toronto Stock Exchange over the 20&nbsp;trading days ended April&nbsp;20, 2007. The effective cost to Magna of the repurchase is approximately Cdn$24.8&nbsp;million. Concurrent with the
repurchase of such Class&nbsp;B shares of Magna, the voting power of each remaining Class&nbsp;B share would be reduced to 300&nbsp;votes per share, in order to maintain approximately the same
level of control of Magna that is currently exercised by Frank Stronach and the Stronach&nbsp;Trust,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Russian
Machines would commit to use commercially reasonable efforts to assist and support Magna in identifying, developing and implementing opportunities in the Russian and
other automotive markets,&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Russian
Machines would invest a net amount of $150&nbsp;million for a 50% interest in a European company that provides the consulting services of Mr.&nbsp;Stronach in
relation to Magna's business outside Canada and Austria. As a result of this investment, Russian Machines would be entitled to a 50% share of consulting fees paid by Magna and its affiliates to
Stronach&nbsp;&amp;&nbsp;Co. and its affiliates under the existing arrangements. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>The
transaction is proposed to be carried out by way of a court-approved plan of arrangement under Ontario law and is subject to court, regulatory and shareholder approvals, including "majority of the
minority" approval of the holders of the Class&nbsp;A Subordinate Voting Shares, voting as a separate class. Completion of the proposed transaction is also subject to finalizing definitive
documentation, including a shareholders' agreement in respect of Newco, and customary closing conditions. </FONT></P>

<P><FONT SIZE=2>The
transaction agreement was approved by the Magna board of directors after receiving the unanimous recommendation of a Special Committee of independent directors of Magna comprised of
Messrs.&nbsp;Michael D. Harris, who acted as Chairman, Klaus Mangold, Donald Resnick, Franz Vranitzky, and Lawrence D. Worrall. The Special Committee retained Fasken Martineau to act as its
independent legal advisor and CIBC&nbsp;World Markets to act as its independent financial advisor. </FONT></P>

<P><FONT SIZE=2>Details
of the proposed transaction will be set out in the proxy solicitation materials that will be mailed to shareholders of Magna in due course in connection with a special meeting of shareholders
to be called to consider the transaction. It is anticipated that the special meeting of shareholders would be held in the third quarter of&nbsp;2007. </FONT></P>

<P><FONT SIZE=2><B><U>Substantial Issuer Bid</U>  </B></FONT></P>

<P><FONT SIZE=2>Conditional
upon the completion of the transaction and subject to regulatory approval, Magna intends to conduct a substantial issuer bid to repurchase up to 20&nbsp;million outstanding
Class&nbsp;A Subordinate Voting Shares. Additional information concerning this potential substantial issuer bid is provided later in this Joint Press&nbsp;Release. </FONT></P>

<P><FONT SIZE=2><B><U>CONTACTS:</U>  </B></FONT></P>

<P><FONT SIZE=2><B><U>For Magna:</U>  </B></FONT></P>

<P><FONT SIZE=2>Vincent
J. Galifi, Executive Vice-President and Chief Financial Officer<BR>
(905)&nbsp;726-7100 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2><B><U>For Basic Element and Russian Machines:</U>  </B></FONT></P>

<P><FONT SIZE=2>Joele
Frank/Eric Brielmann<BR>
Joele Frank, Wilkinson Brimmer Katcher<BR>
(212)&nbsp;355-4449<BR>
ebrielmann@joelefrank.com </FONT></P>

<P><FONT SIZE=2>Ian
Blair<BR>
Hill&nbsp;&amp; Knowlton Canada<BR>
(416)&nbsp;454-6262<BR>
Ian.blair@hillandknowlton.ca </FONT></P>

<P><FONT SIZE=2>Basic
Element Press Office<BR>
Tel.: +7&nbsp;-&nbsp;495&nbsp;-&nbsp;720 50 28 </FONT></P>

<P><FONT SIZE=2><B><U>About Magna</U>  </B></FONT></P>

<P><FONT SIZE=2>Magna
is the most diversified automotive supplier in the world. Magna designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete
vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. Magna's capabilities include the design,
engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and structural systems; vision systems; electronic systems; exterior systems;
powertrain systems; roof systems; as well as complete vehicle engineering and&nbsp;assembly. </FONT></P>

<P><FONT SIZE=2>Magna
has approximately 83,000&nbsp;employees in 235&nbsp;manufacturing operations and 62&nbsp;product development and engineering centres in 23&nbsp;countries. </FONT></P>

<P><FONT SIZE=2><B><U>About Basic Element</U>  </B></FONT></P>

<P><FONT SIZE=2>Basic
Element is a diversified holding company founded in 1997 (known as Sibirsky Aluminium until 2001) with assets in Russia and abroad. Basic Element's core assets are in
6&nbsp;sectors&nbsp;&#151;&nbsp;Energy, Machinery, Resources, Financial Services, Construction and Development. The consolidated revenues of the Group's enterprises in 2006
amounted to over $18&nbsp;billion. The Group employs 240,000&nbsp;people. Enterprises of the Basic Element Group are located in Russia and in countries of the CIS, Europe, Africa, Latin America,
as well as in&nbsp;Australia. </FONT></P>

<P><FONT SIZE=2><B><U>About Russian Machines</U>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Russian
Machines is a diversified holding company in the machinery building industry with origins and strength in Russia that is rapidly becoming a truly global player. Russian Machines represents the
Machinery Sector of the diversified holding company Basic Element, and includes automobile manufacturer GAZ Group, airplane manufacturer Aviacor, and train car manufacturer Abakanvagonmash. The 2006
estimated consolidated revenues of Russian Machines were approximately US$5&nbsp;billion. Russian Machines' subsidiaries currently employ approximately 130,000&nbsp;people and have a unique role
in helping to raise the profile of Russia's machinery-building industry and fostering its integration into the global marketplace. GAZ Group is Russia's second-largest automotive company with
significant operations, including the manufacturing of vans, trucks, buses, construction equipment and cars and is the fourth largest buses and seventh-largest light commercial vehicle manufacturer
worldwide.   </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">

<P><FONT SIZE=2><B>Magna will hold a conference call for interested analysts and shareholders to discuss the proposed transaction this morning at 8:30a.m. EDT. The conference call will be
co-chaired by Don Walker and Siegfried Wolf, Magna's co-Chief Executive Officers. The number to use for this call is 1-888-565-3922. The
number for overseas callers is 1-706-679-9940. Please call in 10&nbsp;minutes prior to the call. Magna will also webcast the conference call at www.magna.com. The
slide presentation accompanying the conference call will be available on Magna's website prior to the call. Both the webcast and the slide presentation can be found in the Investors section of Magna's
website under Calendar of Events&nbsp;&amp; Presentations.</B></FONT></P>

<P><FONT SIZE=2><B>For further information, please contact Louis Tonelli, Magna's Vice-President, Investor Relations at 905-726-7035.</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>For teleconferencing questions, please call 905-726-7103.</B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<BR>

<P><FONT SIZE=2><B><U>ABOUT ANY TENDER OFFER FOR CLASS A SUBORDINATE VOTING SHARES</U>  </B></FONT></P>

<P><FONT SIZE=2>If
Magna proceeds with the substantial issuer bid (referred to as an issuer tender offer in the United&nbsp;States), shareholders are strongly encouraged to carefully read all offer documents if and
when these become available because they would contain important information about the offer. The Magna Board of Directors has not yet approved any tender offer. This Press Release is for
informational purposes only, and is not an offer to buy or the solicitation of an offer to sell any shares of Magna's Class&nbsp;A Subordinate Voting Shares. Solicitation of offers to purchase
Magna's Class&nbsp;A Subordinate Voting Shares would only be made pursuant to offer documents that Magna would distribute to its shareholders after filing such offer documents with the applicable
securities regulatory authorities. </FONT></P>

<P><FONT SIZE=2>Any
tender offer documents required to be filed in the United&nbsp;States, including Schedule&nbsp;TO and&nbsp;related exhibits, along with all other documents that Magna would be required to
file with the Securities and Exchange Commission, would be available without charge at the Securities and Exchange Commission web site at www.sec.gov and by calling J. Brian Colburn, Magna's Executive
Vice-President and Secretary, at 905-726-2462. In addition, such documents would be delivered without charge to all holders of Class&nbsp;A Subordinate
Voting&nbsp;Shares. </FONT></P>

<P><FONT SIZE=2><B><U>MAGNA'S FORWARD-LOOKING STATEMENTS</U>  </B></FONT></P>

<P><FONT SIZE=2>The
previous discussion may contain statements that, to the extent that they are not recitations of historical fact, constitute "forward-looking statements" within the meaning of applicable securities
legislation. Forward-looking statements may include financial and other projections, as well as statements regarding Magna's future plans, objectives or economic performance, or the assumptions
underlying any of the foregoing. Magna uses words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and similar
expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Magna in light of its experience and its perception of historical
trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform
with Magna's expectations and predictions is subject to a number of risks, assumptions and uncertainties. These risks, assumptions and uncertainties include, but are not limited to, execution of
definitive agreements, regulatory, court and shareholder approvals and satisfaction of closing conditions, as well as the impact of: declining production volumes and changes in consumer demand for
vehicles; a reduction in the production volumes of certain vehicles, such as certain light trucks; the termination or non-renewal of Magna's customers of any material contracts; Magna's
ability to offset increases in the cost of commodities, such as steel and resins, as well as energy prices; fluctuations in relative currency values; Magna's ability to offset price concessions
demanded by its customers; Magna's dependence on outsourcing by its customers; Magna's ability to compete with suppliers with operations in low cost countries; changes in Magna's mix of earnings
between jurisdictions with lower tax rates and those with higher tax rates, as well as its ability to fully benefit tax losses; other potential tax exposures; the financial distress of some of Magna's
suppliers and customers; the inability of Magna's customers to meet their financial obligations to it; Magna's ability to fully recover pre-production expenses; warranty and recall costs;
product liability claims in excess of Magna's insurance coverage; expenses related to the restructuring and rationalization of some of its operations; impairment charges; Magna's ability to
successfully identify, complete and integrate acquisitions, potentially including a transaction involving the Chrysler Group; risks associated with new program launches; legal claims against Magna;
risks of conducting business in foreign countries; unionization activities at Magna's facilities; work stoppages and labour relations disputes; changes in laws and governmental regulations; costs
associated with compliance with environmental laws and regulations; potential conflicts of interest involving Magna's controlling shareholder, the Stronach Trust; and other factors set out in Magna's
Annual Information Form filed with securities commissions in Canada and its annual report on Form&nbsp;40-F filed with the United&nbsp;States Securities and Exchange Commission, and
subsequent filings. In evaluating forward-looking statements, readers should specifically consider the various factors which could cause actual events or results to differ materially from those
indicated by such forward-looking statements. Unless otherwise required by applicable securities laws, Magna does not intend, nor does it undertake any obligation, to update or revise any
forward-looking statements to reflect subsequent information, events, results or circumstances or&nbsp;otherwise. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<BR>
<P><br><A NAME="07ZBT19201_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_na19201_1">Exhibit 99.1</A></FONT><BR>
</UL>
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<FONT SIZE=2><A HREF="#toc_nc19201_1">JOINT PRESS RELEASE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_nc19201_2">MAGNA AND BASIC ELEMENT ANNOUNCE STRATEGIC INVESTMENT</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>a2178061zex-99_2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
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<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#07ZBT19201_3">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="pa19201_exhibit_99.2"> </A>
<A NAME="toc_pa19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;99.2    <BR>    </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pa19201_transaction_agreement_may_10,_2007"> </A>
<A NAME="toc_pa19201_2"> </A></FONT> <FONT SIZE=2><B>TRANSACTION AGREEMENT<BR>  May&nbsp;10, 2007    <BR>    </B></FONT></P>

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NAME="page_pc19201_1_1"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pc19201_table_of_contents"> </A>
<A NAME="toc_pc19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="4%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="5%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="83%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1><B>Page</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2> ARTICLE 1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>INTERPRETATION</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Definitions</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>2</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Currency</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Sections and Headings</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Interpretation</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Entire Agreement</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Time of Essence</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.7</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Applicable Law</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.8</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Severability</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.9</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Successors and Assigns</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.10</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Amendment and Waivers</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.11</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>No Strict Construction</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.12</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Statutory References</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.13</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Business Day</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.14</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Knowledge</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>1.15</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Exhibits and Schedules</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=4><BR><FONT SIZE=2> ARTICLE 2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>THE TRANSACTIONS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>2.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>The Arrangement</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>2.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Implementation Steps</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>2.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Magna Circular and Meeting</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>2.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Interim and Final Orders</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>2.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Preparation of Filings</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>2.6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Fiduciary Duties</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=4><BR><FONT SIZE=2> ARTICLE 3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>REPRESENTATIONS AND WARRANTIES</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>3.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Representations and Warranties of Magna</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>3.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Representations and Warranties of 445 and the Trust</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>3.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Representations and Warranties of RM and RM Sub</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>3.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Survival of Representations and Warranties</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=4><BR><FONT SIZE=2> ARTICLE 4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>COVENANTS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>4.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Covenants of Magna</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>4.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Covenants of the Newco Parties</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>4.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Covenants Concerning Regulatory Approvals</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>4.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Feasibility Study and Support</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>20</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>4.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Implementation</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>20</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>4.6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>No Solicitation</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>21</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>i</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pc19201_1_2"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pc19201_table_of_contents_(continued)_1"> </A>
<A NAME="toc_pc19201_2"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS<BR>  </B></FONT><FONT SIZE=2>(continued)    <BR></FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="4%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="84%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1><B>Page</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=4><FONT SIZE=2> ARTICLE 5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>CLOSING CONDITIONS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>5.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Mutual Conditions</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>5.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Conditions in favour of Magna</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>5.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Conditions in favour of RM</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>5.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Conditions in favour of 445</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>24</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=4><BR><FONT SIZE=2> ARTICLE 6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>TERMINATION</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>6.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Termination</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>6.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Remedies</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>6.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Expenses</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=4><BR><FONT SIZE=2> ARTICLE 7</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>CLOSING ARRANGEMENTS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>7.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Closing</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=4><BR><FONT SIZE=2> ARTICLE 8</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>MISCELLANEOUS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>8.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Notices</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>8.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Arbitration</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>31</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>8.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="84%"><FONT SIZE=2>Counterparts</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>31</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2> SCHEDULE "A"&nbsp;&nbsp;PLAN OF ARRANGEMENT TERMS</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2> SCHEDULE "B"&nbsp;&nbsp;NEWCO SHAREHOLDERS AGREEMENT TERMS</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2> SCHEDULE "C"&nbsp;&nbsp;REGULATORY APPROVALS</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2> SCHEDULE "D"&nbsp;&nbsp;PRINCIPALS AGREEMENT TERMS</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>ii</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pe19201_transaction_agreement"> </A>
<A NAME="toc_pe19201_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>TRANSACTION AGREEMENT</U>  <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS AGREEMENT</B></FONT><FONT SIZE=2> made the 10<SUP>th</SUP>&nbsp;day of May, 2007. </FONT></P>

<P><FONT SIZE=2><B>B&nbsp;E&nbsp;T&nbsp;W&nbsp;E&nbsp;E&nbsp;N:  </B></FONT></P>

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<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><B>MAGNA INTERNATIONAL&nbsp;INC.</B></FONT><FONT SIZE=2>, a corporation existing under the laws of the Province of Ontario,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
(hereinafter referred to as "</FONT><FONT SIZE=2><B>Magna</B></FONT><FONT SIZE=2>"),</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&#151;&nbsp;and&nbsp;&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><BR><FONT SIZE=2><B>OPEN JOINT STOCK COMPANY RUSSIAN MACHINES</B></FONT><FONT SIZE=2>, a company existing under the laws of Russia,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
(hereinafter referred to as "</FONT><FONT SIZE=2><B>RM</B></FONT><FONT SIZE=2>"),</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&#151;&nbsp;and&nbsp;&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><BR><FONT SIZE=2><B>VELERON HOLDING&nbsp;B.V. i.o.</B></FONT><FONT SIZE=2>, a company existing under the laws of The Netherlands,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
(hereinafter referred to as "</FONT><FONT SIZE=2><B>RM Sub</B></FONT><FONT SIZE=2>"),</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&#151;&nbsp;and&nbsp;&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><BR><FONT SIZE=2><B>445327&nbsp;ONTARIO LIMITED</B></FONT><FONT SIZE=2>, a corporation existing under the laws of the Province of Ontario,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
(hereinafter referred to as "</FONT><FONT SIZE=2><B>445</B></FONT><FONT SIZE=2>"),</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&#151;&nbsp;and&nbsp;&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><BR><FONT SIZE=2><B>THE STRONACH TRUST</B></FONT><FONT SIZE=2>, a trust existing under the laws of Ontario,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
(hereinafter referred to as the "</FONT><FONT SIZE=2><B>Trust</B></FONT><FONT SIZE=2>"),</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&#151;&nbsp;and&nbsp;&#151;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
the individuals listed in Schedule&nbsp;"D",</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
(each hereinafter referred to as a "</FONT><FONT SIZE=2><B>Principal</B></FONT><FONT SIZE=2>" and together, the "</FONT><FONT SIZE=2><B>Principals</B></FONT><FONT SIZE=2>")</FONT></TD>
</TR>
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<A NAME="page_pe19201_1_2"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WITNESSES THAT</B></FONT><FONT SIZE=2> in consideration of the respective covenants, agreements, representations and warranties of the Parties hereinafter
contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each Party, the Parties agree as&nbsp;follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pe19201_article_1_interpretation"> </A>
<A NAME="toc_pe19201_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 1    <BR>    <BR>    INTERPRETATION    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>1.1&nbsp;&nbsp;&nbsp;Definitions.  </B></FONT></P>

<P><FONT SIZE=2>In
this Agreement: </FONT></P>

<UL>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>446</B></FONT><FONT SIZE=2>" means a new corporation to be incorporated by 445&nbsp;under the provisions of the&nbsp;OBCA; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>446&nbsp;Exit</B></FONT><FONT SIZE=2>" has the meaning set out in Schedule&nbsp;"B"; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Agreement</B></FONT><FONT SIZE=2>" means this agreement, including all exhibits and schedules hereto, and all amendments or restatements as permitted hereunder; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Affiliate</B></FONT><FONT SIZE=2>" has the meaning set out in the OBCA; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Alternative Proposal</B></FONT><FONT SIZE=2>" means any </FONT><FONT SIZE=2><I>bona&nbsp;fide</I></FONT><FONT SIZE=2> proposal by a third party to (a)&nbsp;enter into a
strategic investment in excess of $1&nbsp;billion in Magna through a direct or indirect acquisition of treasury shares issued by Magna, (b)&nbsp;acquire a controlling interest in Magna or
(c)&nbsp;acquire a direct or indirect ownership or other interest (other than a </FONT><FONT SIZE=2><I>de minimus</I></FONT><FONT SIZE=2> interest) in Magna Class&nbsp;B Shares currently held by
445, in each case excluding the transactions contemplated by the Arrangement; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Applicable Laws</B></FONT><FONT SIZE=2>" means all applicable federal, provincial, state, municipal and local statutes, laws, by-laws, regulations, ordinances,
orders, enactments, directives and rules and all injunctions, decisions, directives, judgments and orders of any Governmental Entity having jurisdiction in respect of a particular matter and all
amendments thereto as of the Effective Time and which have the force of law in any jurisdiction in which Magna conducts business; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Arrangement</B></FONT><FONT SIZE=2>" has the meaning set out in Section&nbsp;2.1(a); </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Arrangement Resolution</B></FONT><FONT SIZE=2>" means the special resolution of the holders of Magna Class&nbsp;A Shares and Magna Class&nbsp;B Shares in respect of the
Plan of Arrangement to be considered at the Magna&nbsp;Meeting; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Articles of Arrangement</B></FONT><FONT SIZE=2>" means the articles of arrangement of Magna in respect of the Arrangement that are required by the OBCA to be filed with the
Director after the Final Order is made in order for the Arrangement to become effective; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Associate</B></FONT><FONT SIZE=2>" has the meaning set out in the </FONT><FONT SIZE=2><I>Securities Act</I></FONT><FONT SIZE=2> (Ontario); </FONT></P>


<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Business Day</B></FONT><FONT SIZE=2>" means any day on which commercial banks are generally open for business in Toronto, Ontario, New&nbsp;York, New&nbsp;York and Moscow,
Russia, other than a Saturday, a Sunday or a day observed as a statutory holiday in Toronto, Ontario, New&nbsp;York, New&nbsp;York or Moscow,&nbsp;Russia; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<A NAME="page_pe19201_1_3"> </A>
<UL>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Canadian DPSP</B></FONT><FONT SIZE=2>" means the Magna Deferred Profit Sharing Plan (Canada); </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Certificate of Arrangement</B></FONT><FONT SIZE=2>" means the certificate of arrangement to be issued by the Director pursuant to subsection&nbsp;183(2) of the OBCA in
respect of the Articles of&nbsp;Arrangement; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Collateral Realization</B></FONT><FONT SIZE=2>" has the meaning set out in Schedule&nbsp;"B"; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Contract</B></FONT><FONT SIZE=2>" means any agreement, contract, lease, licence, permit, franchise, purchase order, commitment, engagement, option, indenture, mortgage, deed,
instrument or other legally binding obligation, whether written, oral or&nbsp;implied; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Court</B></FONT><FONT SIZE=2>" means the Superior Court of Justice (Ontario); </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Court Orders</B></FONT><FONT SIZE=2>" means the Interim Order and the Final Order; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Director</B></FONT><FONT SIZE=2>" means the Director appointed pursuant to section&nbsp;278 of the OBCA; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Dissent Rights</B></FONT><FONT SIZE=2>" means the rights of dissent of the Magna Minority Class&nbsp;B Shareholders granted pursuant to the Plan of&nbsp;Arrangement; </FONT></P>


<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Effective Date</B></FONT><FONT SIZE=2>" means the date shown on the Certificate of Arrangement; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Effective Time</B></FONT><FONT SIZE=2>" means 12:01&nbsp;a.m. (Toronto time) on the Effective Date; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>European Transaction Agreement</B></FONT><FONT SIZE=2>" means the agreement between RM Sub, Stronach&nbsp;&amp;&nbsp;Co. and Styria Management Limited entered into
contemporaneously herewith; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Exchange Agreement</B></FONT><FONT SIZE=2>" means the exchange agreement to be entered into by Magna, Newco and RM Sub on the Effective Date as contemplated by
paragraph&nbsp;14 of Schedule&nbsp;"A"; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Final Order</B></FONT><FONT SIZE=2>" means the final order of the Court approving the Arrangement as such order may be amended by the Court at any time prior to the Effective
Time or, if appealed, then, unless such appeal is withdrawn or denied, as affirmed or as amended on&nbsp;appeal; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Governmental Entity</B></FONT><FONT SIZE=2>" means any (a)&nbsp;multinational, federal, provincial, state, regional, municipal, local or other government, governmental or
public department, central bank, court, tribunal, arbitrator or arbitral body, commission, board, bureau or agency, domestic or foreign, including the Ontario Securities Commission, the
Autorit&eacute; des march&eacute;s financiers du Qu&eacute;bec and the United&nbsp;States Securities and Exchange Commission, (b)&nbsp;self-regulatory
organization or stock exchange, including the TSX and the NYSE, (c)&nbsp;subdivision, agent, commission, board, or authority of any of the foregoing, or (d)&nbsp;quasi-governmental or private body
exercising any regulatory, expropriation or taxing authority under or for the account of any of the&nbsp;foregoing; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<UL>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Interested Class&nbsp;B Shareholders</B></FONT><FONT SIZE=2>" means, collectively, (i)&nbsp;445, the Principals, 865714&nbsp;Ontario&nbsp;Inc., the MIC Trust and the
MAG Trust, (ii)&nbsp;any related party of 445, the Principals, 865714&nbsp;Ontario&nbsp;Inc., the MIC Trust or the MAG Trust, within the meaning of Rule&nbsp;61-501 and
Regulation&nbsp;Q-27, subject to&nbsp;the exceptions set out therein, (iii)&nbsp;any other interested party to the Arrangement within the meaning of Rule&nbsp;61-501
and Regulation&nbsp;Q-27, and (iv)&nbsp;any person that is a joint actor with any of the foregoing for the purposes of Rule&nbsp;61-501 and
Regulation&nbsp;Q-27 and, for&nbsp;greater certainty, Interested Class&nbsp;B Shareholders shall not include the Canadian DPSP as the Magna Class&nbsp;B Shares held by the Canadian
DPSP will be voted by the trustee thereof in accordance with the instructions of the beneficial holders of Magna Class&nbsp;B Shares&nbsp;therein; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Interim Order</B></FONT><FONT SIZE=2>" means the interim order of the Court as contemplated by Section&nbsp;2.4, providing for, among other things, the calling and holding
of the Magna Meeting, as the same may be amended by the&nbsp;Court; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Board</B></FONT><FONT SIZE=2>" means the board of directors of Magna; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Business</B></FONT><FONT SIZE=2>" means the business and operations currently carried on by&nbsp;Magna; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Circular</B></FONT><FONT SIZE=2>" means the management information circular/proxy statement to be delivered to holders of Magna Class&nbsp;A Shares and Magna
Class&nbsp;B Shares in connection with the Magna Meeting, including all schedules and exhibits thereto and any amendments or supplements made&nbsp;thereto; </FONT></P>


<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Class&nbsp;A Share</B></FONT><FONT SIZE=2>" means a Class&nbsp;A Subordinate Voting Share in the capital of&nbsp;Magna; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Class&nbsp;B Share</B></FONT><FONT SIZE=2>" means a Class&nbsp;B Share in the capital of Magna; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Group</B></FONT><FONT SIZE=2>" means Magna and its Subsidiaries, taken as a whole; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Material Contract</B></FONT><FONT SIZE=2>" means any Contract to which any member of the Magna Group is a party or by which any member of the Magna Group is bound that
is material to the business, operations or prospects of the Magna Group taken as a&nbsp;whole; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Meeting</B></FONT><FONT SIZE=2>" means the special meeting of Magna Shareholders, including any adjournment or postponement thereof, to be called and held in accordance
with the Interim Order to consider the Arrangement Resolution; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Minority Class&nbsp;B Shareholders</B></FONT><FONT SIZE=2>" means all holders of Magna Class&nbsp;B Shares, other than the Interested
Class&nbsp;B&nbsp;Shareholders; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Magna Shareholders</B></FONT><FONT SIZE=2>" means collectively (i)&nbsp;the holders of Magna Class&nbsp;A Shares and (ii)&nbsp;the holders of Magna
Class&nbsp;B&nbsp;Shares; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Material Adverse Effect</B></FONT><FONT SIZE=2>" means any matter, event or occurrence that: (i)&nbsp;has materially adversely affected or would reasonably be expected to
materially adversely affect the business, financial condition or prospects of the Magna Group; (ii)&nbsp;has materially impaired or would reasonably be expected to materially impair the ability of
Magna to conduct its business in the ordinary course; or (iii)&nbsp;prevents or would reasonably be expected to prevent or significantly delay the completion of the Arrangement or Magna's ability to
perform its obligations under this&nbsp;Agreement; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<UL>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Newco</B></FONT><FONT SIZE=2>" means a new corporation to be incorporated under the laws of Canada by 446&nbsp;which will have the share terms that include those reflected
in Schedule&nbsp;"A"; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Newco Parties</B></FONT><FONT SIZE=2>" means, collectively, RM, RM Sub, 445 and the Principals; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Newco Shareholders Agreement</B></FONT><FONT SIZE=2>" means, collectively, agreements among two or more of 446, RM Sub, Newco or Newco II reflecting, in the aggregate, the
terms set out in Schedule&nbsp;"B"; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Newco II</B></FONT><FONT SIZE=2>" means a new corporation to be incorporated under the laws of Canada by&nbsp;Newco; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>NI&nbsp;51-102</B></FONT><FONT SIZE=2>" means National
Instrument&nbsp;51-102&nbsp;&#151;&nbsp;</FONT><FONT SIZE=2><I>Continuous Disclosure Obligations</I></FONT><FONT SIZE=2> of the Canadian Securities
Administrators; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>NYSE</B></FONT><FONT SIZE=2>" means the New&nbsp;York Stock Exchange; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>OBCA</B></FONT><FONT SIZE=2>" means the </FONT><FONT SIZE=2><I>Business Corporations Act</I></FONT><FONT SIZE=2> (Ontario), as now in effect and as it may be amended from
time to time prior to the Effective&nbsp;Time; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Out of the Ordinary Course Transaction</B></FONT><FONT SIZE=2>" means, in respect of the Magna Group, a commitment or agreement to: (i)&nbsp;incur or assume any indebtedness
for borrowed money in excess of $500&nbsp;million in the aggregate or guarantee any indebtedness in excess of $500&nbsp;million in the aggregate; (ii)&nbsp;acquire (by&nbsp;merging or
consolidating with, or by purchasing a substantial portion of the assets of, or by any other manner) any business or any corporation, partnership, association or other business organization or
division thereof, or otherwise acquire any assets, having a value in excess of $250&nbsp;million, in a single transaction or series of related transactions; (iii)&nbsp;divest any business or any
corporation, partnership, association or other business organization or division of the Magna Group, or otherwise sell any assets of the Magna Group, having a value in excess of $250&nbsp;million,
in a single transaction or series of related transactions; (iv)&nbsp;invest in or acquire any non-automotive businesses in excess of $20&nbsp;million in the aggregate;
(v)&nbsp;except for transactions referred to in paragraph&nbsp;(vi), enter into&nbsp;or amend any oral or written contract or related party transaction with any of Frank Stronach, 445 or the
Trust or any of their respective Affiliates, unless any such transaction or proposed transaction has been publicly disclosed by Magna or otherwise disclosed to RM by Magna prior to the execution of
this Agreement; (vi)&nbsp;enter into any transactions in respect of real property or any amendments thereto with MI Developments&nbsp;Inc. or its Subsidiaries unless any such transaction or
amendment has been approved by a majority of the independent directors or by a committee of independent directors of Magna; or (vii)&nbsp;issue treasury shares in the capital of Magna having a value
in excess of $100&nbsp;million, in the aggregate, other than shares issued by Magna pursuant to the terms of outstanding options, convertible debt or other securities of Magna that are convertible
into, or exchangeable or exerciseable for shares of&nbsp;Magna; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<UL>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Outside Date</B></FONT><FONT SIZE=2>" means October&nbsp;31, 2007 or such later date as may be mutually agreed from time to time by the&nbsp;Parties; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Party</B></FONT><FONT SIZE=2>" means a signatory to this Agreement; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>person</B></FONT><FONT SIZE=2>" includes any individual, firm, partnership, limited partnership, joint venture, venture capital fund, limited liability company, unlimited
liability company, association, trust, trustee, heir, executor, administrator, legal personal representative, estate, group, body corporate, corporation, unincorporated association or organization,
Governmental Entity, syndicate or other entity, whether or not having legal&nbsp;status; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Plan of Arrangement</B></FONT><FONT SIZE=2>" means the definitive plan of arrangement reflecting the terms set out in Schedule&nbsp;"A", and includes those agreements to be
entered into in accordance with the Plan of Arrangement, subject to any amendments or variations thereto made in accordance with the terms of this Agreement or the Plan of Arrangement or made at the
direction of the Court in the Final&nbsp;Order; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Pre-Effective Date Period</B></FONT><FONT SIZE=2>" means the period from the date of this Agreement to the Effective&nbsp;Time; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Principals Agreement</B></FONT><FONT SIZE=2>" means the agreement between the Principals and Newco reflecting the terms set out in Schedule&nbsp;"D"; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Registration Rights Agreement</B></FONT><FONT SIZE=2>" has the meaning set out in Section&nbsp;4.5(d); </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Regulation&nbsp;Q-27</B></FONT><FONT SIZE=2>" means Regulation&nbsp;Q-27: </FONT><FONT SIZE=2><I>Protection of minority securityholders in the
course of certain transactions</I></FONT><FONT SIZE=2> of the Autorit&eacute; des march&eacute;s financiers du&nbsp;Qu&eacute;bec; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Regulatory Approvals</B></FONT><FONT SIZE=2>" means those rulings, consents, orders, exemptions, permits, waivers, authorizations, agreements, certificates, clearances and
other approvals (including the lapse, without objection, of a prescribed time under a statute or regulation that provides that a transaction may only be implemented if a prescribed time lapses
following the giving of notice without an objection being made) of any Governmental Entity that are necessary in connection with the Arrangement, as set out in Schedule&nbsp;"C"&nbsp;hereto; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>RM's Lender</B></FONT><FONT SIZE=2>" has the meaning set out in Schedule&nbsp;"B"; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>RM Sub Exit</B></FONT><FONT SIZE=2>" means the transactions contemplated by Section&nbsp;10 of Schedule&nbsp;"A"; </FONT></P>


<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Rule&nbsp;61-501</B></FONT><FONT SIZE=2>" means Rule&nbsp;61-501&nbsp;&#151;&nbsp;</FONT><FONT SIZE=2><I>Insider Bids,
Issuer Bids, Business Combinations and Related Party Transactions</I></FONT><FONT SIZE=2> of the Ontario Securities Commission; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Securities Act</B></FONT><FONT SIZE=2>" means the </FONT><FONT SIZE=2><I>Securities Act</I></FONT><FONT SIZE=2> (Ontario), as now in effect and as it may be amended from time
to time prior to the Effective&nbsp;Time; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Special Committee</B></FONT><FONT SIZE=2>" means the special committee of independent directors of the Magna Board constituted to consider and make recommendations in respect
of the Arrangement; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<UL>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Subsidiary</B></FONT><FONT SIZE=2>" means, in respect of a Party, a subsidiary (as&nbsp;that term is defined in the OBCA as now in effect) of that Party and any other person
in which such Party has a direct or indirect controlling interest or a joint-controlling interest, and shall be deemed to include any partnership or joint venture in which such Party has a direct or
indirect interest of more than 50%;&nbsp;and </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>TSX</B></FONT><FONT SIZE=2>" means the Toronto Stock Exchange. </FONT></P>

</UL>

<P><FONT SIZE=2><B>1.2&nbsp;&nbsp;&nbsp;Currency.  </B></FONT></P>

<P><FONT SIZE=2>Unless
otherwise indicated, all dollar amounts in this Agreement are expressed in United&nbsp;States&nbsp;funds. </FONT></P>

<P><FONT SIZE=2><B>1.3&nbsp;&nbsp;&nbsp;Sections and Headings.  </B></FONT></P>

<P><FONT SIZE=2>The
division of this Agreement into Articles and Sections, the insertion of headings and the inclusion of a table of contents are for reference purposes only and shall not affect the interpretation of
this Agreement. Unless otherwise indicated, any reference in this Agreement to an Article, a Section, a Schedule or an Exhibit refers to the specified Article or Section of, or Schedule or Exhibit to,
this&nbsp;Agreement. </FONT></P>

<P><FONT SIZE=2><B>1.4&nbsp;&nbsp;&nbsp;Interpretation.  </B></FONT></P>

<P><FONT SIZE=2>In
this Agreement, words importing the singular number only shall include the plural and </FONT><FONT SIZE=2><I>vice versa</I></FONT><FONT SIZE=2> and words importing gender shall include all
genders. Wherever the word "include" or any grammatical variation appears in this Agreement, it shall be deemed to be followed by the phrase "without limitation". Wherever used in this Agreement,
unless otherwise specifically indicated, the terms "material change," "material fact" and "misrepresentation" shall have the respective meanings ascribed thereto in the Securities&nbsp;Act. </FONT></P>

<P><FONT SIZE=2><B>1.5&nbsp;&nbsp;&nbsp;Entire Agreement.  </B></FONT></P>

<P><FONT SIZE=2>This
Agreement, together with the documents to be delivered pursuant to this Agreement, constitutes the entire agreement between the Parties concerning the Arrangement and supersedes all prior
agreements, understandings, negotiations and discussions, whether written or oral. There are no conditions, covenants, agreements, representations, warranties, indemnities or other provisions, express
or implied, collateral, statutory or otherwise, relating to the subject matter of this Agreement except as provided in this&nbsp;Agreement. </FONT></P>

<P><FONT SIZE=2><B>1.6&nbsp;&nbsp;&nbsp;Time of Essence.  </B></FONT></P>

<P><FONT SIZE=2>Time
shall be of the essence of this Agreement. </FONT></P>

<P><FONT SIZE=2><B>1.7&nbsp;&nbsp;&nbsp;Applicable Law.  </B></FONT></P>

<P><FONT SIZE=2>This
Agreement shall be construed, interpreted and enforced in accordance with, and the respective rights and obligations of the Parties shall be governed by, the laws of the Province of Ontario and
the federal laws of Canada applicable in that province. Subject to Section&nbsp;8.2, each Party unconditionally submits to the non-exclusive jurisdiction of the courts of the Province
of&nbsp;Ontario. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2><B>1.8&nbsp;&nbsp;&nbsp;Severability.  </B></FONT></P>

<P><FONT SIZE=2>If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law, or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible. </FONT></P>


<P><FONT SIZE=2><B>1.9&nbsp;&nbsp;&nbsp;Successors and Assigns.  </B></FONT></P>

<P><FONT SIZE=2>This
Agreement shall enure to the benefit of and shall be binding on, and enforceable by, the Parties and, where the context so permits, their respective successors and permitted assigns. No Party may
assign any of its rights or obligations hereunder without the prior written consent of the other Parties. RM Sub shall be permitted to assign its rights and obligations hereunder to a direct or
indirect wholly-owned subsidiary of the ultimate controlling shareholder of&nbsp;RM. </FONT></P>


<P><FONT SIZE=2><B>1.10&nbsp;Amendment and Waivers.  </B></FONT></P>

<P><FONT SIZE=2>No
amendment or waiver of any provision of this Agreement shall be binding on any Party unless consented to in writing by that Party. No waiver of any provision of this Agreement shall constitute a
waiver of any other provision, nor shall any waiver constitute a continuing waiver unless otherwise expressly provided; provided, however, that the consent of the Principals shall only be required in
respect of amendments or waivers that relate to their rights and obligations hereunder and the consent of the Trust shall only be required in respect of amendments or waivers that relate to its rights
and obligations hereunder. </FONT></P>

<P><FONT SIZE=2><B>1.11&nbsp;No Strict Construction.  </B></FONT></P>

<P><FONT SIZE=2>The
language used in this Agreement is the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any&nbsp;Party. </FONT></P>

<P><FONT SIZE=2><B>1.12&nbsp;Statutory References.  </B></FONT></P>

<P><FONT SIZE=2>A
reference to a statute includes all rules and regulations made pursuant to such statute and, unless otherwise specified, the provisions of any statute or regulation or rule which amends, supplements
or supersedes any such statute or any such regulation or&nbsp;rule. </FONT></P>

<P><FONT SIZE=2><B>1.13&nbsp;Business Day.  </B></FONT></P>

<P><FONT SIZE=2>Any
action or payment required or permitted to be taken or made hereunder on a day that is not a Business Day may be taken or made on the next following Business&nbsp;Day. </FONT></P>

<P><FONT SIZE=2><B>1.14&nbsp;Knowledge.  </B></FONT></P>

<P><FONT SIZE=2>Where
any representation or warranty contained in this Agreement is qualified by any reference to the knowledge of Magna it refers to the actual knowledge, in their capacity as officers of Magna and
not in their personal capacity, of the Co-Chief Executive Officers and the Chief Financial Officer of&nbsp;Magna. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<P><FONT SIZE=2><B>1.15&nbsp;Exhibits and Schedules.  </B></FONT></P>

<P><FONT SIZE=2>The
following Exhibits and Schedules are attached to and form part of this&nbsp;Agreement: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="14%" ALIGN="LEFT"><FONT SIZE=1><B>Schedule<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="83%" ALIGN="LEFT"><FONT SIZE=1><B>Description<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%"><FONT SIZE=2>Schedule&nbsp;"A"</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Pre-Arrangement Steps and Plan of Arrangement Terms</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%"><FONT SIZE=2>Schedule&nbsp;"B"</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Newco Shareholders Agreement Terms</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="14%"><FONT SIZE=2>Schedule&nbsp;"C"</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Regulatory Approvals</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="14%"><FONT SIZE=2>Schedule&nbsp;"D"</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="83%"><FONT SIZE=2>Principals Agreement Terms</FONT></TD>
</TR>
</TABLE></DIV>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pg19201_article_2_the_transactions"> </A>
<A NAME="toc_pg19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 2    <BR>    <BR>    THE TRANSACTIONS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>2.1&nbsp;&nbsp;&nbsp;The Arrangement.  </B></FONT></P>

<P><FONT SIZE=2>Subject
to the provisions of this Agreement, including satisfaction or waiver of the conditions set out in Article&nbsp;5: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>the
Newco Parties and Magna agree to proceed with the proposed arrangement (the&nbsp;"</FONT><FONT SIZE=2><B>Arrangement</B></FONT><FONT SIZE=2>") under the provisions of
Section&nbsp;182 of the OBCA to be set out in the Plan of Arrangement;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Newco
and the Newco Parties, to the extent they are parties thereto, agree to be bound by the terms set out in Schedules&nbsp;"B" and&nbsp;"D". </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>2.2&nbsp;&nbsp;&nbsp;Implementation Steps.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>As
soon as reasonably practicable and subject to the terms and conditions of this Agreement, the Parties agree to finalize the terms of the Plan of Arrangement, including the Exchange
Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>As
soon as reasonably practicable and in any event within 30&nbsp;days following the date of execution of this Agreement, the Newco Parties shall prepare, settle and finalize, and
provide to Magna, the form of each of the Newco Shareholders Agreement and the Principals Agreement, it being understood&nbsp;that:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>the
Newco Shareholders Agreement and the Principals Agreement shall not include any material terms other than (A)&nbsp;those terms set out in Schedules&nbsp;"B" and&nbsp;"D",
respectively, and (B)&nbsp;terms reasonably ancillary thereto as required to give full effect to the provisions and intent of such&nbsp;Schedules; </FONT></DD></DL>
</DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>in
preparing, settling and finalizing the Newco Shareholders Agreement and the Principals Agreement, neither Magna nor any Newco Party shall seek to introduce any terms that are
inconsistent with the terms set out&nbsp;in Schedules&nbsp;"B" and&nbsp;"D", respectively, or that would create any significant rights or impose any significant obligations not contemplated by
such Schedules;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>the
terms of such finalized forms of agreement, once provided to Magna, may not thereafter be varied without the prior written consent of the Newco Parties and Magna prior to their
execution.
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>As
soon as reasonably practicable following the completion of the matters referred to in Sections&nbsp;2.2(a) and&nbsp;(b), and subject to the terms and conditions of this
Agreement, Magna shall take the following actions:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>apply
for the Interim Order in accordance with Section&nbsp;2.4;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>convene
and&nbsp;hold the Magna Meeting for the purpose of considering and, if deemed advisable, approving the Arrangement Resolution;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>subject
to compliance by the directors and officers of Magna with their fiduciary duties, use commercially reasonable efforts to solicit proxies in respect of the Arrangement
Resolution;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>subject
to obtaining the approvals required by the Interim Order, use commercially reasonable efforts to pursue the application to the Court for the Final Order;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>subject
to obtaining the Final Order and the satisfaction or waiver of the other conditions herein contained, on the date contemplated in Section&nbsp;7.1, send to&nbsp;the
Director the Articles of Arrangement for endorsement thereon of the Certificate of Arrangement and such other documents as may be required to give effect to the Arrangement. </FONT></DD></DL>
</DD></DL>
</UL>

<P><FONT SIZE=2><B>2.3&nbsp;&nbsp;&nbsp;Magna Circular and Meeting.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Magna
shall prepare the Magna Circular and shall permit the Newco Parties and their respective counsel to review and comment on the Magna Circular, all documents sent with the Magna
Circular, all documents filed with the Court in connection with the transactions contemplated hereby and any amendments thereto, recognizing that whether or not such comments are ultimately included
will be determined by the Magna Board, acting reasonably. As soon as reasonably practicable and after obtaining the Interim Order, Magna shall cause the Magna Circular and other documentation required
in connection with the Magna Meeting to be sent to Magna Shareholders and to be filed with applicable Governmental Entities, as required by the Interim Order and Applicable&nbsp;Laws.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Magna
and, to the extent applicable, the Newco Parties shall ensure that the Magna Circular and such other documents and filings comply in all material respects with the requirements
of the OBCA and other Applicable&nbsp;Laws. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Each
of the Newco Parties shall ensure that any information provided by it for inclusion or incorporation by reference into the Magna Circular does not, as of its date, contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements contained therein not misleading in light of the circumstances in
which they are&nbsp;made. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>2.4&nbsp;&nbsp;&nbsp;Interim and Final Orders.  </B></FONT></P>

<P><FONT SIZE=2>The
application referred to in Section&nbsp;2.2(c) shall request that the Interim Order&nbsp;provide: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>for
the class of persons to whom notice is to be provided in respect of the Arrangement Resolution and the Magna Meeting and the manner in which such notice is to be&nbsp;provided;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>that
the requisite approval for the Arrangement Resolution shall be: (A)&nbsp;66<SUP>2</SUP>/<SMALL>3</SMALL>% of the votes cast by the holders of Magna Class&nbsp;A Shares and Magna
Class&nbsp;B Shares voting together as a single class, present in person or represented by proxy at the Magna Meeting; (B)&nbsp;66<SUP>2</SUP>/<SMALL>3</SMALL>% of the votes cast by the holders of Magna
Class&nbsp;B Shares, voting separately as a class, present in person or represented by proxy at the Magna Meeting; (C)&nbsp;a simple majority of the votes cast by holders of Magna Class&nbsp;A
Shares and Magna Class&nbsp;B Shares voting together as a single class, present in person or represented by proxy at the Magna Meeting, excluding the votes attached to Magna Class&nbsp;A Shares or
Magna Class&nbsp;B Shares held by 445, the Principals or any other "insiders" (as&nbsp;defined in the TSX Company Manual) participating in the Arrangement; (D)&nbsp;a simple majority of the
votes cast by holders of Magna Class&nbsp;A Shares, voting separately as a class, present in person or represented by proxy at the Magna Meeting, excluding the votes attached to Magna Class&nbsp;A
Shares held by 445, the Principals or any other "insiders" (as&nbsp;defined in the TSX Company Manual) participating in the Arrangement; and (E)&nbsp;such other shareholder approvals as may be
required by Applicable Law, any Governmental Entity or the&nbsp;Court;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>that
the requisite approval for the inclusion in the Plan of Arrangement of steps 15 and 16 of Schedule&nbsp;"A" shall be, in addition to the requisite approval set out in
Section&nbsp;2.4(b), a simple majority of the votes cast by the Magna Minority Class&nbsp;B Shareholders, voting separately as a class, present in person or represented by proxy at the
Magna&nbsp;Meeting;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>that,
in all other respects, the provisions of the by-laws and articles of Magna, including quorum requirements and all other applicable matters, shall apply in respect of
the Magna Meeting;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>for
the grant of the Dissent Rights. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2><B>2.5&nbsp;&nbsp;&nbsp;Preparation of Filings.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>The
Parties shall cooperate in:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>the
preparation of any application for the Court Orders and the preparation of any other documents reasonably considered by the Parties to be necessary to discharge their respective
obligations under Applicable Laws in connection with the transactions contemplated hereby;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>the
taking of all such actions as may be required under Applicable Laws in connection with the transactions contemplated hereby.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Each
Party shall furnish to the other Parties all such information concerning it and its Affiliates and Associates as may reasonably be required to effect the actions described in
Sections&nbsp;2.2 and&nbsp;2.3 and the foregoing provisions of this Section&nbsp;2.5, and each Party covenants that no information furnished by it in connection with such actions or otherwise in
connection with the consummation of the Arrangement and the transactions contemplated thereby will contain any untrue statement of a material fact or omit to state a material fact required to be
stated in any such document or necessary in order to make any information so furnished for use in any such document not misleading in the light of the circumstances in which it is furnished or to
be&nbsp;used.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Each
Party shall promptly notify the other Parties if at any time before the Effective Time it becomes aware that the Magna Circular or an application for a Regulatory Approval or
Court Order described in Sections&nbsp;2.2, 2.4 or&nbsp;2.5(a)(i) contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to
make the statements contained therein not misleading in light of the circumstances in which they are made, or that otherwise requires an amendment or supplement to the Magna Circular or such
application. In any such event, the Parties shall cooperate in the preparation of a supplement or amendment to the Magna Circular or such other document, as required and as the case may be, and, if
required, shall cause the same to be distributed to Magna Shareholders and/or filed with applicable Governmental Entities. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>2.6&nbsp;&nbsp;&nbsp;Fiduciary Duties.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing
contained herein shall be construed to require the Magna Board to take or refrain from taking any action that would be inconsistent with its obligation to properly discharge its
fiduciary duties under Applicable Laws as advised by its counsel. Without limiting the generality of the foregoing and notwithstanding any other provision of this Agreement, the Magna Board may change
its recommendation in respect of the Arrangement Resolution and may (i)&nbsp;delay the holding of the Magna Meeting in order to communicate to Magna Shareholders any decision to change its
recommendation or to seek an amendment to the Arrangement, the Interim Order or the terms of this Agreement, provided that Magna shall have notified the Newco Parties regarding its intention to do any
of the foregoing prior to announcing its intention to take any steps in connection therewith, or (ii)&nbsp;terminate the Agreement pursuant to Section&nbsp;6.1. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pg19201_article_3_representations_and_warranties"> </A>
<A NAME="toc_pg19201_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 3    <BR>    <BR>    REPRESENTATIONS AND WARRANTIES    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>3.1&nbsp;&nbsp;&nbsp;Representations and Warranties of Magna.  </B></FONT></P>

<P><FONT SIZE=2>Magna
represents and warrants to and in favour of RM, RM Sub and 445&nbsp;as follows (and, in the case of 445, represents and warrants only as to the matters set out in paragraphs&nbsp;(b), (c),
(d)&nbsp;and&nbsp;(e)) and acknowledges that RM, RM Sub and 445&nbsp;are relying on such representations and warranties in entering into this&nbsp;Agreement: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Existence</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna is a corporation validly existing under the laws of the Province of Ontario,
and has all necessary corporate power and authority to carry on its business as now conducted, to own or lease and operate its assets and to execute, deliver and perform its obligations under this
Agreement and the Plan of&nbsp;Arrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Corporate Authority and Enforceability</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subject to the approval by the Magna Board of the
Plan of Arrangement, to obtaining the Magna Shareholder approvals referred to in Sections&nbsp;2.4(b) and&nbsp;(c) and the receipt of the Court Orders, Magna has taken all necessary corporate
action to authorize the execution, delivery and performance of this Agreement. This Agreement has been duly executed and delivered by Magna and is a legal, valid and binding obligation of Magna,
enforceable against Magna by the Newco Parties in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally
and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>Approval by Magna Board</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Magna Board has received a fairness opinion from
CIBC&nbsp;World Markets&nbsp;Inc. to the effect that, among other things, as of the date of the opinion, the consideration offered to holders of Magna Class&nbsp;B Shares under the Plan of
Arrangement is fair, from a financial point of view, to Magna Minority Class&nbsp;B Shareholders. After receiving the unanimous recommendation of the Special Committee, the Magna Board has approved
the execution and delivery of this&nbsp;Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>No Violation</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except for the Regulatory Approvals, the execution, delivery and performance of
this Agreement does not, and will not, result in a breach or violation of any of the provisions of or constitute a default under, or conflict with or cause the acceleration of any obligation of any
member of the Magna Group under (i)&nbsp;any Magna Contract, (ii)&nbsp;any provision of the articles, by-laws or resolutions of the board of directors (or&nbsp;any committee thereof)
or shareholders or similar organizational document of any member of the Magna Group, (iii)&nbsp;any judgment, decree, order or award of any Governmental Entity having jurisdiction over any member of
the Magna Group or (iv)&nbsp;any Applicable Law, except with respect to clauses&nbsp;(i), (iii)&nbsp;and&nbsp;(iv) above, for any such breaches, violations, defaults, conflicts or other
occurrences that have not had and are not reasonably expected to have a Material Adverse Effect. Except for the Regulatory Approvals and the Court Orders, no consent, approval, order or authorization
of, or declaration or filing with, any Governmental Entity&nbsp;or other person is required to be obtained or made, as the case may be, by any member of the Magna Group in connection with the
execution and delivery of this Agreement or the consummation by Magna of the Arrangement. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pg19201_1_14"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2><B><U>Magna Class&nbsp;A Shares</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Magna Class&nbsp;A Shares required to be issued to Newco
II pursuant to the Plan of Arrangement will be duly authorized and validly issued by Magna as fully paid and non-assessable shares of Magna. No order, ruling or determination having the
effect of precluding the issuance or delivery of such shares or ceasing, suspending or restricting the trading of such shares or any other securities of Magna in any jurisdiction, has been issued or
made by any stock exchange, securities commission or regulatory authority and is continuing in effect and no proceedings, investigations or enquiries for that purpose have been instituted or are
pending or, to the knowledge of Magna, are contemplated or&nbsp;threatened.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2><B><U>Share Capital</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The authorized share capital of Magna consists of an unlimited number of Magna
Class&nbsp;A Shares, 1,412,341&nbsp;Magna Class&nbsp;B Shares and 99,760,000&nbsp;preferred shares, issuable in series, of which 108,862,850&nbsp;Magna Class&nbsp;A shares,
1,092,933&nbsp;Magna Class&nbsp;B Shares and no preferred shares are issued and outstanding as of April&nbsp;30, 2007. In addition, as of April&nbsp;30, 2007, 3,509,125&nbsp;Magna
Class&nbsp;A Shares have been reserved for issuance upon the exercise of outstanding options or pursuant to future option grants. Except as publicly disclosed, there are no options, warrants,
conversion privileges or other rights, agreements, arrangements or commitments (pre-emptive, contractual or otherwise) obligating Magna to issue or sell any shares of Magna or securities
or obligations of any kind convertible into or exchangeable for any shares or other securities of Magna. There are no bonds, debentures or other evidences of indebtedness of Magna outstanding having
the right to vote (or&nbsp;that are convertible for or exercisable into securities having the right to vote) with shareholders of Magna on any&nbsp;matter.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2><B><U>Public Disclosure</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna is a reporting issuer under the Securities Act and is not in default
of any of its requirements under NI&nbsp;51-102 or any other continuous disclosure requirements under any Applicable Laws. The documents or information filed by Magna under applicable
securities laws did not, as of their respective dates, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements contained therein not misleading in light of the circumstances in which they are made. Magna has not filed any confidential material change report or similar disclosure document with any
securities regulatory authority or stock exchange which remains confidential as of the date of this&nbsp;Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(h)</FONT></DT><DD><FONT SIZE=2><B><U>Financial Statements</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The audited consolidated financial statements of Magna (including the
notes thereto) as at and for the years ended December&nbsp;31, 2006 and 2005 and the unaudited consolidated interim financial statements of Magna as at and for the three months ended
March&nbsp;31, 2007 present fairly in all material respects the financial condition of Magna and the financial information presented therein for the periods and as at the dates thereof. Such
financial statements have been prepared in accordance with generally accepted accounting principles in Canada in effect at the date of such financial statements (subject only to year-end
adjustments in the case of the interim unaudited consolidated financial statements). </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pg19201_1_15"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2><B><U>Absence of Unusual Transactions or Events</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as publicly disclosed or disclosed to RM
prior to the execution of this Agreement, since December&nbsp;31, 2006: (i)&nbsp;the Magna Business has been carried on only in the ordinary course of business; and (ii)&nbsp;there has not been
any effect, event, development or change that has had or is reasonably expected to have a Material Adverse Effect, other than any effect, event, development or change after the date of this Agreement
arising out of or resulting from: (A)&nbsp;matters, events or occurrences in general political, financial or economic conditions, industry trends and similar matters that generally affect the
economy in the markets in which the Magna Group does business or the securities markets in Canada or the United&nbsp;States or the industries in which the Magna Group compete and which do not have a
materially disproportionate adverse effect on the Magna Group, taken as a whole, or (B)&nbsp;matters, events or occurrences publicly disclosed or disclosed in writing by Magna to RM prior to the
execution of this&nbsp;Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(j)</FONT></DT><DD><FONT SIZE=2><B><U>Agreements with Related Parties</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as publicly disclosed or disclosed in writing by
Magna to RM prior to the execution of this Agreement, Magna is not a party to any oral or written material agreements with Frank Stronach, 445, the Trust or any of their respective Affiliates.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(k)</FONT></DT><DD><FONT SIZE=2><B><U>Litigation</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as publicly disclosed or disclosed to RM prior to the execution of this
Agreement: (i)&nbsp;there is no suit, action, dispute, civil or criminal litigation, arbitration, legal, administrative or other proceeding or governmental investigation, including appeals and
applications for review, in progress, pending or, to the knowledge of Magna, threatened against Magna or any of its subsidiaries or relating to the business, properties or assets of Magna or any of
its subsidiaries that has had or is reasonably expected to have a Material Adverse Effect or which questions the validity of the issuance of the Magna Class&nbsp;A Shares required to be issued
pursuant to the Plan of Arrangement or any action taken or to be taken by Magna pursuant to or in connection with this Agreement; (ii)&nbsp;to the knowledge of Magna, no circumstances have occurred
which would give rise to any such suit, action, dispute, litigation, arbitration, proceeding or investigation that has a reasonable likelihood of success and that if adversely decided would, in
Magna's reasonable judgment, have a Material Adverse Effect; and (iii)&nbsp;there is not presently outstanding against Magna or any of Magna's subsidiaries any judgment, execution, decree,
injunction, writ or order of any regulatory authority, court, tribunal, instrumentality, or arbitrator which has had or is reasonably expected to have a Material Adverse&nbsp;Effect. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>3.2&nbsp;&nbsp;&nbsp;Representations and Warranties of 445 and the Trust.  </B></FONT></P>

<P><FONT SIZE=2>445
and the Trust jointly and severally represent and warrant to and in favour of Magna and RM as follows and acknowledge that each of Magna, RM and RM Sub is relying on such representations and
warranties in entering into this&nbsp;Agreement: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pg19201_1_16"> </A>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Existence</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;445&nbsp;is a corporation validly existing under the laws of Ontario, and
445&nbsp;has all necessary corporate power and authority to carry on its business as now conducted, to own or lease and operate its assets and to execute, deliver and perform its obligations under
this Agreement and the Plan of&nbsp;Arrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Authority and Enforceability</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;445&nbsp;has taken all necessary corporate action to
authorize the execution, delivery and performance of this Agreement. The Trust has full right and all necessary authority to execute, deliver and perform this Agreement. This Agreement has been duly
executed and delivered by 445 and the Trust and is a legal, valid and binding obligation of such Party, enforceable against such Party by Magna, RM and RM Sub in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and except that equitable remedies may be granted only in the discretion of a court of
competent jurisdiction.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>No Violation</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except for the Regulatory Approvals, the execution, delivery and performance of
this Agreement does not, and will not, result in a breach or violation of any of the provisions of or constitute a default under, or conflict with or cause the acceleration of any obligation of 445,
the Trust or their respective Subsidiaries under (i)&nbsp;any material Contract to which it is a party, (ii)&nbsp;any provision of the articles, by-laws or resolutions of its board of
directors (or&nbsp;any committee thereof) or shareholders, (iii)&nbsp;any judgment, decree, order or award of any Governmental Entity having jurisdiction over it or (iv)&nbsp;any Applicable Law.
Except for the Regulatory Approvals and Court Orders, no consent, approval, order or authorization of, or declaration or filing with, any Governmental Entity or other person is required to be obtained
or made, as the case may be, by 445 or the Trust in connection with the execution and delivery of this Agreement or the consummation by it of the Arrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>Investment Canada</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each of 445 and the Trust is not a non-Canadian for the
purposes of the </FONT><FONT SIZE=2><I>Investment Canada Act&nbsp;</I></FONT><FONT SIZE=2>(Canada). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>3.3&nbsp;&nbsp;&nbsp;Representations and Warranties of RM and RM Sub.  </B></FONT></P>


<P><FONT SIZE=2>RM
and RM Sub jointly and severally represent and warrant to and in favour of Magna, 445 and the Trust as follows and acknowledge that each of Magna, 445 and the Trust is relying on such
representations and warranties in entering into this&nbsp;Agreement: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Existence</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RM is a company validly existing under the laws of Russia and RM Sub is a company
validly existing under the laws of The Netherlands and each has all necessary corporate power and authority to carry on its business as now conducted, to own or lease and operate its assets and to
execute, deliver and perform its obligations under this Agreement and the Plan of&nbsp;Arrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Authority and Enforceability</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each of RM and RM Sub has taken all necessary corporate action
to authorize the execution, delivery and performance of this Agreement. This Agreement has been duly executed and delivered by RM and RM Sub and is a legal, valid and binding obligation of such Party,
enforceable against such Party by Magna, 445 and the Trust in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors
generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pg19201_1_17"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>No Violation</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except for the Regulatory Approvals, the execution, delivery and performance of
this Agreement does not, and will not, result in a breach or violation of any of the provisions of or constitute a default under, or conflict with or cause the acceleration of any obligation of RM or
RM Sub under (i)&nbsp;any material Contract to which it is a party, (ii)&nbsp;any provision of the articles, by-laws or resolutions of its board of directors (or&nbsp;any committee
thereof) or shareholders, (iii)&nbsp;any judgment, decree, order or award of any Governmental Entity having jurisdiction over it or (iv)&nbsp;any Applicable Law. Except for the Regulatory
Approvals and Court Orders, no consent, approval, order or authorization of, or declaration or filing with, any Governmental Entity or other person is required to be obtained or made, as the case may
be, by RM or RM Sub in connection with the execution and delivery of this Agreement or the consummation by it of the Arrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>Availability of Funds</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RM Sub has or will have sufficient cash on hand or available to it
under existing credit facilities to capitalize Newco and Newco II in accordance with the Plan of Arrangement. As of the date hereof, RM knows of no circumstance or condition that could be reasonably
expected to prevent the availability of such funds at the Effective&nbsp;Time. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>3.4&nbsp;&nbsp;&nbsp;Survival of Representations and Warranties.  </B></FONT></P>

<P><FONT SIZE=2>All
representations and warranties contained in this Agreement and in all certificates delivered pursuant to this Agreement shall survive until the date that is 15&nbsp;months after the
Effective&nbsp;Time. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pg19201_article_4_covenants"> </A>
<A NAME="toc_pg19201_3"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 4    <BR>    <BR>    COVENANTS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>4.1&nbsp;&nbsp;&nbsp;Covenants of Magna.  </B></FONT></P>

<P><FONT SIZE=2>Without
in any way limiting the obligations of Magna under this Agreement, except (x)&nbsp;as contemplated hereby, or (y)&nbsp;as otherwise agreed in writing by the Parties, during the
Pre-Effective Date&nbsp;Period: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Notice of Certain Events</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna shall promptly advise the Newco Parties if Magna becomes
aware&nbsp;of:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>any
event occurring after the date of this Agreement that would reasonably be expected to render any of the representations and warranties given by Magna in this Agreement untrue or
inaccurate in any material respect if made on or as of the Effective Date;&nbsp;or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>any
matter, event or occurrence that constitutes a Material Adverse Effect; </FONT></DD></DL>
</DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pg19201_1_18"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Listing of Magna Class&nbsp;A Shares</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna shall use commercially reasonable efforts to
cause the listing on the TSX of the Magna Class&nbsp;A Shares to be issued under the Arrangement at the Effective&nbsp;Time;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>Magna Class&nbsp;A Shares</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna shall not make any change in or reclassify the Magna
Class&nbsp;A Shares, including by way of consolidation, subdivision, amalgamation, arrangement or merger or a similar transaction, unless Magna and the Newco Parties agree to amend the Plan of
Arrangement in an appropriate manner;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>Conduct of Business</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna shall not, and shall not permit any Subsidiary to, take any action
that would, or that could reasonably be expected to, result in any of the conditions to the Arrangement (including the steps described in Article&nbsp;2) not being satisfied;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2><B><U>Notice and Consultation</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna agrees to provide RM with reasonable notice in writing of any
proposal to accept, approve or enter into an agreement relating to an Out of the Ordinary Course Transaction, together with a reasonable description of the proposed transaction consistent with the
form of description provided to the Magna Board, and to consult with RM prior to accepting, approving or entering into an agreement relating to an Out of the Ordinary Course Transaction. Following
Magna's determination to accept, approve or enter into an agreement relating to an Out of the Ordinary Course Transaction, Magna shall notify RM of such determination, and RM may terminate this
Agreement within 15&nbsp;days following the date RM received such&nbsp;notice. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>4.2&nbsp;&nbsp;&nbsp;Covenants of the Newco Parties.  </B></FONT></P>

<P><FONT SIZE=2>Without
in any way limiting the obligations of the Newco Parties under this Agreement, except (x)&nbsp;as contemplated hereby, or (y)&nbsp;as otherwise agreed in writing by Magna and the Newco
Parties, during the Pre-Effective Date Period (or, in the case of Section&nbsp;4.2(d), for such longer period as may be in effect pursuant to Section&nbsp;6.2): </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Restriction on Certain Activities</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each of the Newco Parties shall not do or permit to be
done or refrain from doing any action that, if effected before the date of this Agreement, would constitute a breach of any representation and warranty or a material breach of any covenant or other
provision of this&nbsp;Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Notice of Certain Events</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each of the Newco Parties shall promptly advise an authorized
officer of Magna orally and, if then requested by Magna, in writing if any of the Newco Parties becomes aware&nbsp;of:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>any
event occurring after the date of this Agreement that would reasonably be expected to render any of the representations and warranties given by any of the Newco Parties in this
Agreement untrue or inaccurate if made on or as of the Effective Date;&nbsp;or </FONT></DD></DL>
</DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pg19201_1_19"> </A>
<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>any
matter, event or occurrence that would reasonably be expected to impede, interfere with, prevent or materially delay the consummation of the Arrangement;
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>Deposit of Consideration</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the Plan of Arrangement and subject to the terms
and conditions of this Agreement, (i)&nbsp;the Newco Parties shall capitalize Newco, (ii)&nbsp;RM Sub shall capitalize Newco II, and (iii)&nbsp;RM Sub and 445&nbsp;shall cause (A)&nbsp;Newco
to capitalize Newco II and (B)&nbsp;Newco II to subscribe for the Magna Class&nbsp;A Shares to be issued by Magna under the Plan of&nbsp;Arrangement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>Voting</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as contemplated by this Agreement or the Plan of Arrangement, (i)&nbsp;each
of 445 and the Trust agrees that 445&nbsp;shall own, and the Trust shall cause 445 to own, 726,829&nbsp;Magna Class&nbsp;B Shares and will not participate in any Alternative Proposal and
(ii)&nbsp;at any and all meetings of Magna Shareholders called to consider or approve the transactions contemplated by this Agreement, or at any adjournment thereof or in any other circumstances
upon which a vote, consent (including unanimous written consent), agreement or other approval (whether or not to consider or approve the transactions contemplated by this Agreement) is sought, each of
445 and the Trust shall vote, and shall cause their Subsidiaries to vote, any Magna Shares held by them in favour of the Arrangement and against any Alternative Proposal;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2><B><U>RM Sub</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RM shall cause RM Sub or its permitted assigns to effect the payment and performance
of all liabilities and obligations of RM Sub arising under and in connection with this Agreement and the transactions contemplated by the Arrangement. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>4.3&nbsp;&nbsp;&nbsp;Covenants Concerning Regulatory Approvals.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Each
of the Newco Parties shall apply for and use all commercially reasonable efforts to obtain promptly any Regulatory Approvals relating to the Newco Parties that are required in
order to consummate the Arrangement and, in doing so, keep Magna informed as to the status of the proceedings related to obtaining any such Regulatory Approvals.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Without
limiting the generality of Section&nbsp;4.3(a), Magna and&nbsp;each of the Newco Parties will as promptly as possible, and in any event within 10&nbsp;Business Days
after the Plan of Arrangement (including the Exchange Agreement), the Newco Shareholders Agreement and the Principals Agreement have been finalized as contemplated by Sections&nbsp;2.2(a)
and&nbsp;2.2(b), make all filings or submissions as are required to obtain all Regulatory Approvals as necessary to consummate the transactions contemplated by this Agreement and shall promptly file
any additional information requested by any Governmental Entity. Magna and each of the Newco Parties will promptly furnish to the other such necessary information and reasonable assistance as the
other may request in connection with its preparation of any filing, notification, or submission which is necessary or desirable in connection with obtaining any Regulatory Approval. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
</UL>
</UL>
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<P><FONT SIZE=2><A
NAME="page_pi19201_1_20"> </A> </FONT></P>

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<P><FONT SIZE=2><B>4.4&nbsp;&nbsp;&nbsp;Feasibility Study and Support.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Consistent
with its existing business strategy, Magna shall use all reasonable efforts to explore opportunities to expand the Magna Business in Russia and, in particular, will
complete a feasibility study regarding such expansion within 18&nbsp;months of the Effective Date for presentation to the Magna&nbsp;Board.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>RM
shall use its commercially reasonable efforts to assist and support the Magna Group in identifying, developing and implementing strategic opportunities in the Russian automotive
industry. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>4.5&nbsp;&nbsp;&nbsp;Implementation.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Satisfaction of Conditions</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each Party shall use its commercially reasonable efforts to
satisfy the conditions contained in Article&nbsp;5 and&nbsp;shall take such commercially reasonable measures as are lawful and within its power or control to implement the Arrangement as of the
Effective Date in accordance with the terms of this&nbsp;Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Publicity</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No public release or announcement concerning the transactions contemplated hereby
shall be issued by any party without the prior consent of the other parties (which consent shall not be unreasonably withheld), except as such release or announcement may be required by Applicable
Laws, in which case the party required to make the release or announcement shall allow the other party reasonable time to comment on such release or announcement in advance of such issuance; provided,
however, that Magna and RM may make internal announcements to their respective employees that are consistent with the parties' prior public disclosures regarding the transactions contemplated hereby
after reasonable prior notice to and consultation with the other. RM and Magna agree to issue jointly a press release with respect to the execution of this Agreement as soon as practicable in a form
acceptable to RM and Magna, and each of the Parties agrees to file&nbsp;a copy of this Agreement with the relevant Governmental Entities, if any, as required by Applicable Laws. Each Party agrees
not to make any public statement that is inconsistent with such press&nbsp;release.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>Pre-Closing Actions</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Prior to the Closing, each Newco Party shall take the
actions specified in the section of Schedule&nbsp;"A" entitled "Pre-Plan of Arrangement Steps" to be taken by each Party prior to the&nbsp;Closing.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>Registration Rights</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna agrees to provide Newco, Newco II, RM Sub and RM's Lender (each a
"</FONT><FONT SIZE=2><B>Requesting Party</B></FONT><FONT SIZE=2>") with the following qualification and registration rights with respect to the Magna Class&nbsp;A Shares held by them in connection
with an RM Sub Exit, a 446&nbsp;Exit or a Collateral Realization, as applicable (each a "</FONT><FONT SIZE=2><B>Triggering Event</B></FONT><FONT SIZE=2>"). Upon the occurrence of a Triggering
Event, if Magna receives a written request from a Requesting Party, Magna will file&nbsp;a prospectus in Canada and a registration statement in the United&nbsp;States under The Multijurisdictional
Disclosure System qualifying for distribution, as requested by the Requesting Party, all or part of the Magna Class&nbsp;A Shares held by such Requesting Party under applicable Canadian securities
laws and registering such offers and sales of Magna Class&nbsp;A&nbsp;Shares under applicable U.S.&nbsp;securities laws. The qualification and registration rights of the Requesting Parties will
be set out in an agreement to be entered into as of the Effective Time between Magna and the Requesting Parties which shall contain customary terms and conditions
(the&nbsp;"</FONT><FONT SIZE=2><B>Registration Rights Agreement</B></FONT><FONT SIZE=2>"). </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2><B>4.6&nbsp;&nbsp;&nbsp;No Solicitation.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>During
the Pre-Effective Date Period: neither 445&nbsp;nor the Trust shall, directly or indirectly, through any of its trustees, officers, directors, employees,
representatives or agents or any investment bankers, attorneys, accountants or other representatives retained by it (i)&nbsp;solicit, initiate or encourage any Alternative Proposal,
(ii)&nbsp;approve or recommend any Alternative Proposal, (iii)&nbsp;enter into any agreement with respect to any Alternative Proposal or (iv)&nbsp;participate in any discussions or negotiations
regarding, or furnish to any person any information with respect to, or take any other action to facilitate any inquiries or the making of any proposal that constitutes, or may reasonably be expected
to lead to, any Alternative Proposal. Nothing contained in this Section&nbsp;4.6 shall prohibit 445 or the Trust from responding to any unsolicited proposal or inquiry solely by advising the person
making such proposal or inquiry of the terms of this Section&nbsp;4.6.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>During
the Pre-Effective Date Period: each of 445 and the Trust shall promptly notify RM, at first orally and then in writing, of any Alternative Proposal and any inquiry
that could lead to an Alternative Proposal, or any amendments to the foregoing, or any request for non public information relating to it in connection with an Alternative Proposal or for access to its
properties, books or records by any person that informs such party that it is considering making, or has made, an Alternative Proposal. Such notice shall include a description of the material terms
and conditions of any proposal, the identity of the person making such proposal, inquiry or contact and provide such other details of the proposal, inquiry or contact as RM may reasonably request. 445
and the Trust shall (i)&nbsp;keep RM fully informed of the status including any change to the material terms of any such Alternative Proposal or inquiry and (ii)&nbsp;provide to RM, as soon as
practicable after receipt of delivery thereof, copies of all correspondence and other written material sent or provided to it from any person in connection with any Alternative Proposal or sent or
provided by it to any person in connection with any Alternative Proposal. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pi19201_article_5_closing_conditions"> </A>
<A NAME="toc_pi19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 5    <BR>    <BR>    CLOSING CONDITIONS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>5.1&nbsp;&nbsp;&nbsp;Mutual Conditions.  </B></FONT></P>

<P><FONT SIZE=2>The
respective obligations of the Parties hereunder are subject to the satisfaction or waiver, at or before the Effective Time, of the following conditions precedent, each of which may only be waived
by the unanimous consent of Magna and each of RM and&nbsp;445: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pi19201_1_22"> </A>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Magna Shareholder Approvals</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Arrangement Resolution shall have been approved by Magna
Shareholders as required by the Interim&nbsp;Order;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Orders</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each of the Interim Order and the Final Order shall have been obtained on terms
consistent with this Agreement and in form and content satisfactory to Magna and each of 445 and RM, acting reasonably, and shall not have been set aside or modified in a manner unacceptable to Magna
or any of the Newco Parties, acting reasonably, on appeal or&nbsp;otherwise;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>Articles of Arrangement</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Articles of Arrangement shall be in form and content consistent
with this Agreement and satisfactory to Magna and each of the Newco Parties, acting reasonably;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>No Termination of Agreement</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall not have been terminated in accordance with
its&nbsp;terms;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2><B><U>Regulatory Approvals</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Regulatory Approvals shall have been obtained or satisfied and
shall not have been revoked and reasonably satisfactory evidence of the receipt of such Regulatory Approvals shall have been delivered to each&nbsp;Party;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2><B><U>Listing of Magna Shares</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Magna Class&nbsp;A Shares issuable pursuant to the Arrangement
shall have been approved for listing on the TSX, subject to the filing of required documentation, notice of issuance and other usual requirements;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2><B><U>No Law</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No Governmental Entity shall have enacted, issued, promulgated, enforced or entered
any law which is then in effect and has the effect of making the execution, delivery or performance of this Agreement illegal or otherwise preventing or prohibiting the consummation of the transaction
contemplated by this&nbsp;Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(h)</FONT></DT><DD><FONT SIZE=2><B><U>No Legal Restraint</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No material legal or regulatory action or proceeding shall be pending or
threatened by any person to enjoin, restrict or prohibit the Arrangement;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2><B><U>No Cease Trade Order</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No cease trading or stop order shall have been issued and remain in
effect with respect to the Magna Class&nbsp;A&nbsp;Shares. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>5.2&nbsp;&nbsp;&nbsp;Conditions in favour of Magna.  </B></FONT></P>

<P><FONT SIZE=2>The
obligations of Magna hereunder are subject to the satisfaction at or before the Effective Time of the following conditions for the exclusive benefit of Magna, any of which may be waived in writing
by&nbsp;Magna: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Representations and Warranties</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of the Newco Parties
contained in this Agreement in favour of Magna shall be true and correct at the Effective Time with the same force and effect as if such representations and warranties were made at and as of such
time, and certificates dated the Effective Date to that effect shall have been signed on behalf of each of the Newco Parties by a senior officer of each Newco Party and delivered to Magna, each such
certificate to be in form and substance satisfactory to Magna, acting reasonably;&nbsp;and </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pi19201_1_23"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Covenants</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each of the Newco Parties shall have complied in all material respects with and
performed in all material respects its covenants and obligations hereunder that are to be complied with or performed at or before the Effective Time, and certificates dated the Effective Date to that
effect shall have been signed on behalf of each of the Newco Parties by two senior officers and delivered to Magna, each such certificate to be in form and substance satisfactory to Magna, acting
reasonably. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>Magna
may not rely on the failure to satisfy any of the conditions precedent in Section&nbsp;5.2 if the condition precedent would have been satisfied but for a default by Magna in complying with its
obligations under this&nbsp;Agreement. </FONT></P>

<P><FONT SIZE=2><B>5.3&nbsp;&nbsp;&nbsp;Conditions in favour of RM.  </B></FONT></P>


<P><FONT SIZE=2>The
obligations of RM hereunder are subject to the satisfaction at or before the Effective Time of the following conditions for the exclusive benefit of RM, any of which may be waived in writing
by&nbsp;RM: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Representations and Warranties of Magna</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of Magna
contained in this Agreement shall be true and correct at the Effective Time with the same force and effect as if such representations and warranties were made at and as of such time, and a certificate
dated the Effective Date to that effect shall have been signed on behalf of Magna by two senior officers and delivered to RM, such certificate to be in form and substance satisfactory to RM, acting
reasonably;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Representations and Warranties of 445</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of
445&nbsp;contained in this Agreement shall be true and correct at the Effective Time with the same force and effect as if such representations and warranties were made at and as of such time, and a
certificate dated the Effective Date to that effect shall have been signed on behalf of 445&nbsp;by two senior officers and delivered to RM, such certificate to be in form and substance satisfactory
to RM, acting reasonably;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>Covenants of Magna</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna shall have complied in all material respects with and performed in
all material respects its covenants and obligations hereunder that are to be complied with or performed at or before the Effective Time, and a certificate dated the Effective Date to that effect shall
have been signed on behalf of Magna by two senior officers and delivered to the Newco Parties, such certificate to be in form and substance satisfactory to the Newco Parties, acting reasonably;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>Covenants of 445</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;445&nbsp;shall have complied in all material respects with and performed
in all material respects its covenants and obligations hereunder that are to be complied with or performed at or before the Effective Time, and a certificate dated the Effective Date to that effect
shall have been signed on behalf of 445&nbsp;by two senior officers and delivered to the Newco Parties, such certificate to be in form and substance satisfactory to the Newco Parties, acting
reasonably;&nbsp;and </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pi19201_1_24"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2><B><U>European Transaction Agreement</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The transactions contemplated by the European Transaction
Agreement shall have been consummated on or before the Effective&nbsp;Date. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>RM
may not rely on the failure to satisfy any of the conditions precedent in Section&nbsp;5.3 if the condition precedent would have been satisfied but for a default by RM or any of its Affiliates in
complying with its obligations under this Agreement or the European Transaction Agreement. </FONT></P>

<P><FONT SIZE=2><B>5.4&nbsp;&nbsp;&nbsp;Conditions in favour of 445.  </B></FONT></P>

<P><FONT SIZE=2>The
obligations of 445&nbsp;hereunder are subject to the satisfaction at or before the Effective Time of the following conditions for the exclusive benefit of 445, any of which may be waived in
writing by&nbsp;445: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B><U>Representations and Warranties of Magna</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of Magna
contained in this Agreement shall be true and correct at the Effective Time with the same force and effect as if such representations and warranties were made at and as of such time, and a certificate
dated the Effective Date to that effect shall have been signed on behalf of Magna by two senior officers and delivered to 445, such certificate to be in form and substance satisfactory to 445, acting
reasonably;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B><U>Representations and Warranties of RM</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of RM contained in
this Agreement shall be true and correct at the Effective Time with the same force and effect as if such representations and warranties were made at and as of such time, and a certificate dated the
Effective Date to that effect shall have been signed on behalf of RM by two senior officers and delivered to 445, such certificate to be in form and substance satisfactory to 445, acting reasonably;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><B><U>Covenants of Magna</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Magna shall have complied in all material respects with and performed in
all material respects its covenants and obligations hereunder that are to be complied with or performed at or before the Effective Time, and a certificate dated the Effective Date to that effect shall
have been signed on behalf of Magna by two senior officers and delivered to the Newco Parties, such certificate to be in form and substance satisfactory to the Newco Parties, acting reasonably;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2><B><U>Covenants of RM</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RM shall have complied in all material respects with and performed in all
material respects its covenants and obligations hereunder that are to be complied with or performed at or before the Effective Time, and a certificate dated the Effective Date to that effect shall
have been signed on behalf of RM by two senior officers and delivered to the Newco Parties, such certificate to be in form and substance satisfactory to the Newco Parties, acting
reasonably;&nbsp;and </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pi19201_1_25"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2><B><U>European Transaction Agreement</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The transactions contemplated by the European Transaction
Agreement shall have been consummated on or before the Effective&nbsp;Date. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>445&nbsp;may
not rely on the failure to satisfy any of the conditions precedent in Section&nbsp;5.4 if the condition precedent would have been satisfied but for a default by 445 or any of its
Affiliates (excluding Magna) in complying with its obligations under this Agreement or the European Transaction Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pi19201_article_6_termination"> </A>
<A NAME="toc_pi19201_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 6    <BR>    <BR>    TERMINATION    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>6.1&nbsp;&nbsp;&nbsp;Termination.  </B></FONT></P>


<P><FONT SIZE=2>This
Agreement may be terminated and the Arrangement may be abandoned at any time prior to the filing of the Articles of Arrangement, notwithstanding any requisite approval and authorization of this
Agreement by Magna Shareholders: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>by
the mutual agreement of Magna, RM and 445&nbsp;prior to the Effective Time, whether before or after the Magna Meeting (and&nbsp;for greater certainty, without further action on
the part of the Magna Shareholders if terminated after the Magna&nbsp;Meeting);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>by
Magna on five days' notice or by either RM or 445&nbsp;if the Magna Board shall have failed to recommend, shall have recommended against, or shall have withdrawn, modified or
changed in a manner adverse to RM its approval or recommendation of the Arrangement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>by
Magna, 445 or RM if the Effective Date has not occurred on or prior to the Outside Date provided that the right to terminate this Agreement pursuant to this Section&nbsp;6.1(c)
shall not be available to a Party if any action of such Party or the failure of such Party to perform any of its obligations under this Agreement required to be performed at or prior to the Effective
Time shall have resulted in the conditions contained in Section&nbsp;5.1, Section&nbsp;5.2 or Section&nbsp;5.3 (as&nbsp;applicable) not having been satisfied prior to the Outside&nbsp;Date;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>by
Magna, 445 or RM if any Governmental Entity shall have enacted, issued, promulgated, enforced or entered any law which is then in effect and has the effect of making the execution,
delivery or performance of this Agreement illegal or otherwise preventing or prohibiting the consummation of the transaction contemplated by this&nbsp;Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>by
Magna, 445 or RM if the Arrangement Resolution shall have failed to receive the requisite vote for approval at the Magna Meeting or at any adjournment or postponement thereof in
accordance with the Interim&nbsp;Order;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>by
Magna if there has been a breach of or failure to perform any representation, warranty, covenant or agreement on the part of any of the Newco Parties set forth in this Agreement,
which breach or failure to perform would cause the conditions set forth in Section&nbsp;5.2(a) or Section&nbsp;5.2(b) not to be&nbsp;satisfied; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pi19201_1_26"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>by
either 445 or RM if there has been a breach of or failure to perform any representation, warranty, covenant or agreement on the part of Magna set forth in this Agreement, which
breach or failure to perform would cause the conditions set forth in Section&nbsp;5.3(a) or Section&nbsp;5.3(b) not to be satisfied;&nbsp;or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(h)</FONT></DT><DD><FONT SIZE=2>by
RM in accordance with the provisions of Section&nbsp;4.1(e). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>6.2&nbsp;&nbsp;&nbsp;Remedies.  </B></FONT></P>

<P><FONT SIZE=2>In
the event of the valid termination of this Agreement by any Party as provided in Section&nbsp;6.1, this Agreement shall forthwith become void and have no further effect, and there shall be no
liability or further obligation on the part of any Party or their respective officers or directors hereunder, except that the provisions of Section&nbsp;6.3 (Expenses), and&nbsp;this
Section&nbsp;6.2 shall remain in full force and effect and shall survive any such termination, and the provisions of Section&nbsp;4.2(d) (Voting) shall survive for a period of 12&nbsp;months
from the date that this Agreement is terminated in accordance with Section&nbsp;6.1(b). </FONT></P>

<P><FONT SIZE=2><B>6.3&nbsp;&nbsp;&nbsp;Expenses.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Except
as otherwise provided in this Agreement, each Party shall bear and pay all costs, expenses and fees incurred by it in connection with the transactions contemplated by
this&nbsp;Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>If
the failure by Magna to fulfil any of its obligations under this Agreement was the principal cause of, or resulted in, the failure of the Effective Time to occur on or before the
Outside Date, provided that RM is not in breach of its obligations under this Agreement, Magna shall reimburse RM for its reasonable, actual, documented, out-of-pocket expenses
incurred in connection with the transactions contemplated by this Agreement up to a maximum of $10&nbsp;million.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>If
the failure by RM to fulfil any of its obligations under this Agreement or if the failure by RM Sub to fulfil any of its obligations under the European Transaction Agreement was
the principal cause of, or resulted in, the failure of the Effective Time to occur on or before the Outside Date, provided that Magna is not in breach of its obligations under this Agreement, RM shall
reimburse Magna for its reasonable, actual, documented, out-of-pocket expenses incurred in connection with the transactions contemplated by this Agreement up to a maximum of
$10&nbsp;million.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>If
the failure by 445 to fulfil any of its obligations under this Agreement or the failure by any of the Stronach related parties to fulfil any of its obligations under the European
Transaction Agreement was the principal cause of, or resulted in, the failure of the Effective Time to occur on or before the Outside Date, provided that RM is not in breach of its obligations under
this Agreement, 445&nbsp;shall reimburse RM for its reasonable, actual, documented, out-of-pocket expenses incurred in connection with the transactions contemplated by this
Agreement up to a maximum of $10&nbsp;million. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_pk19201_1_27"> </A> </FONT></P>

<!-- TOC_END -->
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>If
the failure by RM to fulfil any of its obligations under this Agreement or the failure by RM Sub to fulfil any of its obligations under the European Transaction Agreement was the
principal cause of, or resulted in, the failure of the Effective Time to occur on or before the Outside Date, provided that 445&nbsp;is not in breach of its obligations under this Agreement, RM
shall reimburse 445&nbsp;for its reasonable, actual, documented, out-of-pocket expenses incurred in connection with the transactions contemplated by this Agreement up to a
maximum of $10&nbsp;million.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>Notwithstanding
the foregoing provisions, the maximum amount payable by, and the maximum amount collectible by, each of Magna, 445 and RM under this Section&nbsp;6.3 shall not
exceed $10&nbsp;million, and none of Magna, 445 or RM may claim expense reimbursement in respect of the same expenses from more than one Party hereunder, and for the purposes of this
Section&nbsp;6.3(f), any expenses reimbursed under the European Transaction Agreement shall count toward the $10&nbsp;million&nbsp;limit. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>Each
of Magna, RM and 445&nbsp;acknowledges that any payment made in accordance with this Section&nbsp;6.3 is the sole and exclusive remedy and no Party shall be entitled to any further claim or
remedy at law or equity or&nbsp;otherwise. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pk19201_article_7_closing_arrangements"> </A>
<A NAME="toc_pk19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 7    <BR>    <BR>    CLOSING ARRANGEMENTS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>7.1&nbsp;&nbsp;&nbsp;Closing.  </B></FONT></P>

<P><FONT SIZE=2>The
Parties shall cause the Effective Date to be the fifth day following the date on which all conditions in Sections&nbsp;5.1, 5.2, 5.3 and&nbsp;5.4 have been satisfied or waived by the Party
entitled to the benefit thereof or such other date as the Parties may mutually determine. Closing shall take place at the offices of Osler, Hoskin&nbsp;&amp; Harcourt&nbsp;LLP in Toronto, Ontario at
10:00&nbsp;a.m. on the Effective Date or at such other place, date and time as the Parties may mutually agree. At the closing of the Arrangement, each Party shall deliver the agreements contemplated
hereby to which it is a Party, including the Newco Shareholders Agreement, the Principals Agreement, the Exchange Agreement and the Registration Rights Agreement, and such certificates, resolutions
and other customary closing documents as may be required by the other Parties, acting reasonably, and each of the ultimate controlling shareholders of 445 and RM shall deliver to the other an
undertaking to comply with Sections&nbsp;7 and&nbsp;8 of Schedule&nbsp;"B". </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pk19201_article_8_miscellaneous"> </A>
<A NAME="toc_pk19201_2"> </A>
<BR></FONT><FONT SIZE=2><B>ARTICLE 8    <BR>    <BR>    MISCELLANEOUS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>8.1&nbsp;&nbsp;&nbsp;Notices.  </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be delivered in person or transmitted by telecopier or similar means of
recorded electronic communication (with receipt confirmed) as&nbsp;follows: </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pk19201_1_28"> </A>
<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>If
to Magna at: </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Magna
International&nbsp;Inc.<BR>
337&nbsp;Magna Drive<BR>
Aurora, Ontario<BR>
L4G&nbsp;7K1 </FONT></P>

<P><FONT SIZE=2>Attention:
Executive Vice President, Special Projects<BR>
Telecopier No.: (905)&nbsp;726-7164 </FONT></P>

<P><FONT SIZE=2>with
a copy to: </FONT></P>

<P><FONT SIZE=2>Osler,
Hoskin&nbsp;&amp; Harcourt&nbsp;LLP<BR>
1&nbsp;First Canadian Place<BR>
66th&nbsp;Floor, 100&nbsp;King Street West<BR>
Toronto, Ontario<BR>
M5X&nbsp;1B8 </FONT></P>

<P><FONT SIZE=2>Attention:
Jean M. Fraser<BR>
Telecopier No.: (416)&nbsp;862-6666 </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>If
to RM at: </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Open
Joint Stock Company Russian Machines<BR>
Registration #1047701003778<BR>
3&nbsp;Kapranov Lane<BR>
123242&nbsp;Moscow<BR>
Russia </FONT></P>

<P><FONT SIZE=2>Attention:
Peter Zolotarev<BR>
Telecopier No.: 7&nbsp;495&nbsp;705 5792 </FONT></P>

<P><FONT SIZE=2>with
a copy to: </FONT></P>

<P><FONT SIZE=2>Bennett
Jones&nbsp;LLP<BR>
3400&nbsp;One First Canadian Place<BR>
P.O.&nbsp;Box&nbsp;130<BR>
Toronto, Ontario<BR>
M5X&nbsp;1A4 </FONT></P>

<P><FONT SIZE=2>Attention:
Alan Bell<BR>
Telecopier No.: (416)&nbsp;863-1716 </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pk19201_1_29"> </A>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>and: </FONT></P>

<P><FONT SIZE=2>Cravath,
Swaine&nbsp;&amp; Moore&nbsp;LLP<BR>
Worldwide Plaza<BR>
825&nbsp;Eighth Avenue<BR>
New&nbsp;York, NY<BR>
10019-7475 </FONT></P>

<P><FONT SIZE=2>Attention:
Mark Greene<BR>
Telecopier No.: (212)&nbsp;474-3700 </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>If
to RM Sub at: </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Veleron
Holding&nbsp;B.V. i.o.<BR>
Haakabergweg 31<BR>
Suite&nbsp;4<BR>
1101&nbsp;BP Amsterdam<BR>
The Netherlands </FONT></P>

<P><FONT SIZE=2>Telecopier
No.: 31 20&nbsp;650 9061 </FONT></P>


<P><FONT SIZE=2>with
a copy to: </FONT></P>

<P><FONT SIZE=2>Open
Joint Stock Company Russian Machines<BR>
Registration #1047701003778<BR>
3&nbsp;Kapranov Lane<BR>
123242&nbsp;Moscow<BR>
Russia </FONT></P>

<P><FONT SIZE=2>Attention:
Peter Zolotarev<BR>
Telecopier No.: 7&nbsp;495&nbsp;705 5792 </FONT></P>

<P><FONT SIZE=2>and:
</FONT></P>

<P><FONT SIZE=2>Bennett
Jones&nbsp;LLP<BR>
3400&nbsp;One First Canadian Place<BR>
P.O.&nbsp;Box&nbsp;130<BR>
Toronto, Ontario<BR>
M5X&nbsp;1A4 </FONT></P>

<P><FONT SIZE=2>Attention:
Alan Bell<BR>
Telecopier No.: (416)&nbsp;863-1716 </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pk19201_1_30"> </A>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>and: </FONT></P>

<P><FONT SIZE=2>Cravath,
Swaine&nbsp;&amp; Moore&nbsp;LLP<BR>
Worldwide Plaza<BR>
825&nbsp;Eighth Avenue<BR>
New&nbsp;York, NY<BR>
10019-7475 </FONT></P>

<P><FONT SIZE=2>Attention:
Mark Greene<BR>
Telecopier No.: (212)&nbsp;474-3700 </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>If
to 445&nbsp;at: </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>c/o
Miller Thomson&nbsp;LLP<BR>
Scotia Plaza, Suite&nbsp;5800<BR>
40&nbsp;King Street West<BR>
Suite&nbsp;2700<BR>
Toronto, Ontario<BR>
M5H&nbsp;3S1 </FONT></P>

<P><FONT SIZE=2>Attention:
John Campbell<BR>
Telecopier No.: (416)&nbsp;595-8695 </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>If
to the Trust at: </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>c/o
Miller Thomson&nbsp;LLP<BR>
Scotia Plaza, Suite&nbsp;5800<BR>
40&nbsp;King Street West<BR>
Suite&nbsp;2700<BR>
Toronto, Ontario<BR>
M5H&nbsp;3S1 </FONT></P>

<P><FONT SIZE=2>Attention:
John Campbell<BR>
Telecopier No.: (416)&nbsp;595-8695 </FONT></P>

<P><FONT SIZE=2>with
a copy to: </FONT></P>

<P><FONT SIZE=2>Stikeman
Elliott&nbsp;LLP<BR>
5300&nbsp;Commerce Court West<BR>
199&nbsp;Bay Street, P.O.&nbsp;Box&nbsp;85<BR>
Toronto, Ontario<BR>
M5L&nbsp;1B9 </FONT></P>

<P><FONT SIZE=2>Attention:
Edward J. Waitzer<BR>
Telecopier No.: (416)&nbsp;947-0866 </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pk19201_1_31"> </A>
<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vi)</FONT></DT><DD><FONT SIZE=2>If
to any of the non-Canadian resident Principals: </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>c/o
Magna International Europe<BR>
Magna&nbsp;&#151;&nbsp;Strasse 1<BR>
A-2522<BR>
Oberwaltersdorf<BR>
Austria </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vii)</FONT></DT><DD><FONT SIZE=2>if
to any of the Canadian resident Principals: </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>c/o
Magna International&nbsp;Inc.<BR>
337&nbsp;Magna Drive<BR>
Aurora, Ontario<BR>
L4G&nbsp;7K1 </FONT></P>

<P><FONT SIZE=2>Attention:
Executive Vice President, Special Projects<BR>
Telecopier No.: (905)&nbsp;726-7164 </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Any
such notice or other communication shall be deemed to have been given and received on the day on which it was delivered or transmitted (or, if such day is not a Business Day, on
the next following Business&nbsp;Day). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>8.2&nbsp;&nbsp;&nbsp;Arbitration.  </B></FONT></P>

<P><FONT SIZE=2>Any
controversy or dispute arising out of or relating to this Agreement, including its negotiation, validity, existence, breach, termination, construction or application, or the rights, duties or
obligations of any Party to this Agreement, shall be referred to and finally resolved by arbitration to be administered by the London Court of International Arbitration (LCIA) in accordance with the
UNCITRAL Arbitration Rules in effect on the date of this Agreement. The seat of the arbitration shall be London, England and the proceedings shall be conducted in the English language before a panel
composed of three (3)&nbsp;arbitrators. Each party shall appoint one arbitrator and the two (2)&nbsp;appointed arbitrators shall appoint a chair. Should the two (2)&nbsp;arbitrators fail to
agree upon a chair within 15&nbsp;days of their appointment, either party may apply to the LCIA for the appointment of the third arbitrator. </FONT></P>

<P><FONT SIZE=2>Notwithstanding
anything to the contrary in the UNCITRAL Arbitration Rules, each party shall have the right to conduct an oral discovery of a representative of the party&nbsp;opposite. </FONT></P>

<P><FONT SIZE=2>Nothing
in this section shall preclude one of the parties to this Agreement from seeking injunctive relief from a court of competent jurisdiction when deemed necessary by such court to preserve the </FONT> <FONT SIZE=2><I>status quo</I></FONT><FONT SIZE=2>
or prevent irreparable injury pending resolution by arbitration of the actual&nbsp;dispute.
 </FONT></P>

<P><FONT SIZE=2><B>8.3&nbsp;&nbsp;&nbsp;Counterparts.  </B></FONT></P>

<P><FONT SIZE=2>This
Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which shall together constitute one and the same instrument. The Parties may rely on copies
of this Agreement which are delivered by telecopier as if such copies were&nbsp;originals. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pk19201_1_32"> </A>

<P><FONT SIZE=2><B>IN WITNESS WHEREOF</B></FONT><FONT SIZE=2> the Parties have executed this Agreement. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B>MAGNA INTERNATIONAL&nbsp;INC.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>FRANK STRONACH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Frank Stronach<BR>
Title: Vice Chairman</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>SIEGFRIED WOLF</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Siegfried Wolf<BR>
Title: Co-Chief Executive Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>OPEN JOINT STOCK COMPANY<BR>
RUSSIAN MACHINES</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>GULZHAN MOLDOZHANOVA</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Gulzhan Moldozhanova<BR>
Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name:<BR>
Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>VELERON HOLDING&nbsp;B.V. i.o.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>GULZHAN MOLDOZHANOVA</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Gulzhan Moldozhanova<BR>
Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name:<BR>
Title:</FONT></TD>
</TR>
</TABLE>
<!-- insert table folio -->
<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pk19201_1_33"> </A>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B>445327&nbsp;ONTARIO LIMITED</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>FRANK STRONACH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Frank Stronach<BR>
Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BELINDA STRONACH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Belinda Stronach<BR>
Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>THE STRONACH TRUST</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>FRANK STRONACH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Frank Stronach<BR>
Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BELINDA STRONACH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Belinda Stronach<BR>
Title:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>SIEGFRIED WOLF</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>SIEGFRIED WOLF</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>DONALD J. WALKER</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DONALD J. WALKER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>VINCENT J. GALIFI</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>VINCENT J. GALIFI</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
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<BR>
<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pk19201_1_34"> </A>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>PETER KOOB</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>PETER KOOB</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>JEFFREY O. PALMER</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JEFFREY O. PALMER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>34</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pm19201_schedule__a__transaction_steps"> </A>
<A NAME="toc_pm19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE "A"<BR>  <BR>    TRANSACTION STEPS    <BR>    </B></FONT></P>


<P><FONT SIZE=2><U>Definitions</U> </FONT></P>

<P><FONT SIZE=2><B>"RM Investment Amount"</B></FONT><FONT SIZE=2> means US$76.83, being the volume weighted average trading price of Magna Class&nbsp;A Shares on the NYSE for the
20&nbsp;trading days ending April&nbsp;20, 2007 multiplied by 20,000,000;&nbsp;and </FONT></P>

<P><FONT SIZE=2><B>"RM's Lender"</B></FONT><FONT SIZE=2> means the person or persons providing financing (including refinancing) to RM and/or RM Sub for all or part of the RM Investment Amount. </FONT></P>


<P><FONT SIZE=2>References
to numbers of Magna shares will be subject to adjustment for stock splits, share consolidations and similar&nbsp;events. </FONT></P>

<P><FONT SIZE=2><U>Pre-Plan of Arrangement Steps</U> </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>445&nbsp;incorporates
446&nbsp;as a wholly-owned subsidiary. One common share of 446&nbsp;is issued to 445&nbsp;on incorporation for&nbsp;CDN$1.00.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>446&nbsp;incorporates
Newco as a wholly-owned subsidiary. One common share of Newco is issued to 446&nbsp;on incorporation for CDN$1.00. Newco's authorized capital consists of
Class&nbsp;A, B, C and&nbsp;D shares which have the following attributes:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;B
shares have 1.5&nbsp;votes per share.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;A
and&nbsp;C shares have 1&nbsp;vote per share.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Class&nbsp;D
shares are non-voting.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Class&nbsp;A, B, C and&nbsp;D shares participate </FONT><FONT SIZE=2><I>pari&nbsp;passu</I></FONT><FONT SIZE=2> in dividends and other distributions, however,
distributions on the Class&nbsp;A, C and&nbsp;D shares may be treated first as a return of&nbsp;capital.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Class&nbsp;C shares have a preferential and fixed entitlement on a liquidation or winding-up of Newco equal to the lesser of 5% of the RM Investment Amount
and the fair market value of 1,000,000&nbsp;Magna Class&nbsp;A Shares at the time of liquidation or winding-up. After the preferential entitlement of the Class&nbsp;C shares, the
Class&nbsp;A, B and&nbsp;D shares shall share </FONT><FONT SIZE=2><I>pro&nbsp;rata</I></FONT><FONT SIZE=2> on a liquidation or winding-up of&nbsp;Newco.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>The
Class&nbsp;A shares may be issuable in two series. The Class&nbsp;D shares may be issuable in three&nbsp;series.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Newco
incorporates Newco II as a wholly-owned subsidiary. Newco II's authorized capital consists&nbsp;of:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>1,000,000&nbsp;non-voting
redeemable retractable preferred shares; </FONT></DD></DL>
</DD></DL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_pm19201_1_2"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>an
unlimited number of non-voting common shares;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>an
unlimited number of voting common shares; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>an
unlimited number of special shares. </FONT></DD></DL>

<P><FONT SIZE=2>The
preferred shares of Newco II are redeemable and retractable for the lesser of 5% of the RM Investment Amount and the fair market value at the time of redemption of 1,000,000&nbsp;Magna
Class&nbsp;A Shares, plus any unpaid dividends, and have a preference over the non-voting common shares and the voting shares on liquidation or winding-up equal to the
redemption price plus any unpaid dividends. The dividend entitlement of the preferred shares is equal to 100% of Newco II's net&nbsp;income. </FONT></P>

<P><FONT SIZE=2>The
non-voting common shares and voting common shares of Newco II participate </FONT><FONT SIZE=2><I>pari&nbsp;passu</I></FONT><FONT SIZE=2> on liquidation, subject to the prior rights
of the preferred shares. The non-voting common shares and the voting common shares of Newco II have no entitlement to&nbsp;dividends. </FONT></P>


<P><FONT SIZE=2>The
special shares of Newco II are non-voting and not entitled to dividends. The special shares are, as a class, redeemable and retractable in connection with any RM Sub Exit,
446&nbsp;Exit or Collateral Realization for the lesser of 95% of the RM Investment Amount and the fair market value of 19,000,000&nbsp;Magna Class&nbsp;A Shares. The special shares have a
preference over the non-voting common shares and the voting common shares on liquidation or winding-up equal to their redemption price. The common shares and the preferred
shares rank equally on liquidation or winding-up and are subordinate to the special&nbsp;shares. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>Newco
subscribes for 100&nbsp;voting common shares of Newco II for CDN$100.00. </FONT></DD></DL>

<P><FONT SIZE=2><U>Plan of Arrangement Steps</U> </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>445&nbsp;transfers
its 726,829&nbsp;Magna Class&nbsp;B Shares to 446&nbsp;in exchange for 100&nbsp;common shares of&nbsp;446.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>6.</FONT></DT><DD><FONT SIZE=2>446&nbsp;transfers
726,829&nbsp;Magna Class&nbsp;B Shares to Newco in exchange for 420&nbsp;Class&nbsp;B shares of&nbsp;Newco.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>7.</FONT></DT><DD><FONT SIZE=2>The
Principals, and/or companies controlled by them, transfer a total of 605,000&nbsp;Magna Class&nbsp;A Shares to Newco in exchange for 130&nbsp;Class&nbsp;A shares and
30&nbsp;Class&nbsp;D shares of&nbsp;Newco.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>8.</FONT></DT><DD><FONT SIZE=2>RM
Sub subscribes for 420&nbsp;Class&nbsp;C shares of Newco for cash equal to 5% of the RM Investment Amount.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>9.</FONT></DT><DD><FONT SIZE=2>Newco
subscribes for 1,000,000&nbsp;preferred shares of Newco II for cash equal to 5% of the RM Investment Amount.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>10.</FONT></DT><DD><FONT SIZE=2>RM
Sub subscribes for 100&nbsp;non-voting common shares of Newco II for&nbsp;CDN$100.00.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>11.</FONT></DT><DD><FONT SIZE=2>RM
Sub loans Newco II an amount, in Canadian dollars, equal to 95% of the RM Investment Amount (the&nbsp;"Newco II&nbsp;Loan"). </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>12.</FONT></DT><DD><FONT SIZE=2>Newco
II subscribes for 20,000,000&nbsp;Magna Class&nbsp;A Shares for a price equal to the RM Investment Amount.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>13.</FONT></DT><DD><FONT SIZE=2>The
Newco II Loan has the following terms:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>non-interest
bearing and evidenced by a non-interest bearing promissory&nbsp;note,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>principal
amount, in Canadian dollars, equal to the lesser of 95% of the RM Investment Amount and the fair market value from time to time of 19,000,000&nbsp;Magna
Class&nbsp;A&nbsp;Shares,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>repayable
on demand by RM Sub after two years following the Effective Date,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>repayable
on demand at any time if RM and/or RM Sub defaults under the financing for its Newco/Newco II investment and RM Lender realizes on its security in the Newco II&nbsp;Loan,
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>secured
by a pledge of 20,000,000&nbsp;Magna Class&nbsp;A Shares (subject to the limitations specified in the Newco Shareholders Agreement),&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>convertible
into special shares of Newco II that have a fair market value equal to the lesser of 95% of the RM Investment Amount and the fair market value of 19,000,000&nbsp;Magna
Class&nbsp;A&nbsp;Shares.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>14.</FONT></DT><DD><FONT SIZE=2>Magna,
Newco and&nbsp;RM Sub enter into an exchange agreement (the&nbsp;</FONT><FONT SIZE=2><B>"Exchange Agreement"</B></FONT><FONT SIZE=2>) that provides for the Newco II
special shares, preferred shares, non-voting common shares and voting common shares to be exchanged for a number of new Magna Class&nbsp;A Shares to be issued from treasury by Magna
equal, in aggregate, to the number of Magna Class&nbsp;A Shares held by Newco II at the time of exchange. Such exchange, subject to satisfaction of specified conditions, shall be triggered by an RM
Sub Exit, a Collateral Realization or a 446&nbsp;Exit. Subject to regulatory approval, Magna will be obliged to complete this exchange after the Effective Date, provided that Newco II's only assets
are Class&nbsp;A shares of Magna and cash, Newco II has no liabilities or its liabilities have been provided for to the reasonable satisfaction of Magna and provided that other reasonable conditions
for the exchange (which conditions shall not include approval by the Magna Board or Magna Shareholders) are&nbsp;met.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>15.</FONT></DT><DD><FONT SIZE=2>If
approved by Magna Minority Class&nbsp;B Shareholders as contemplated by Section&nbsp;2.4(c) of the Agreement, Magna acquires for cancellation all the outstanding Magna
Class&nbsp;B Shares other than those held by Newco for cash at a price per share of&nbsp;CDN$114.00.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>16.</FONT></DT><DD><FONT SIZE=2>If
approved by Magna Minority Class&nbsp;B Shareholders as contemplated by Section&nbsp;2.4(c) of the Agreement, the number of votes per share attached to the Class&nbsp;B
shares of Magna will be reduced to 300&nbsp;votes per&nbsp;share.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>17.</FONT></DT><DD><FONT SIZE=2>The
Magna Minority Class&nbsp;B Shareholders will be given a right of dissent if the Plan of Arrangement (including paragraphs&nbsp;15 and&nbsp;16) is&nbsp;approved.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>18.</FONT></DT><DD><FONT SIZE=2>The
by-laws of Magna are amended to eliminate the right of the Chairman of the Board of Directors to cast a second or deciding vote in the event of an equality
of&nbsp;votes.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>19.</FONT></DT><DD><FONT SIZE=2>The
Magna Board will be increased to 14&nbsp;members and nominees will be elected to fill vacant positions on the Magna&nbsp;Board. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="po19201_schedule__b__newco_shareholders_agreement"> </A>
<A NAME="toc_po19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE "B"<BR>  <BR>    NEWCO SHAREHOLDERS AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distribution Policy  </B></FONT></P>

<P><FONT SIZE=2>The
Board of Directors of Newco and Newco&nbsp;II will each establish a dividend distribution policy. </FONT></P>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newco Board of Directors  </B></FONT></P>

<P><FONT SIZE=2>The
Board of Directors of Newco shall consist of 6&nbsp;directors, 2&nbsp;nominees of 446 (including Chair), 2&nbsp;nominees of RM&nbsp;Sub and each of the Co-CEOs (being nominees
of the Principals). In the event either of the Co-CEOs ceases to serve as a Newco director, unless 446 and RM&nbsp;Sub otherwise agree, neither of the Co-CEOs shall be
entitled to remain a director of Newco and the Principals shall no longer be entitled to representation on the Newco Board. In the event either of the Co-CEOs resigns as an executive
officer of Magna, unless 446 and RM&nbsp;Sub otherwise agree, such Co-CEO shall be entitled to continue to serve as a director of&nbsp;Newco. </FONT></P>

<P><FONT SIZE=2>Each
of RM Sub and 446&nbsp;shall be prohibited from entering into any voting trust or similar agreement or arrangement with any of the Principals with respect to&nbsp;Newco. </FONT></P>


<P><FONT SIZE=2>At
least one of 446's nominees shall meet any Canadian residency requirements of the corporations statute governing Newco. </FONT></P>

<P><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newco Veto Rights  </B></FONT></P>

<P><FONT SIZE=2>Newco
will be a special purpose company that shall not carry on any activities apart from holding shares of Magna and performing its obligations and enforcing its rights under the Exchange Agreement
and the Principals Agreement. Each of RM&nbsp;Sub and 446 (in&nbsp;its capacity as a shareholder) shall have veto rights over all actions to be taken by Newco, other than voting in respect of the
election or removal of directors of Magna or Newco&nbsp;II in accordance with the terms set out&nbsp;below. </FONT></P>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian of Magna Culture  </B></FONT></P>

<P><FONT SIZE=2>Newco
shall act as custodian of the culture, business philosophies and operating principles that have been the cornerstone of Magna's success to date and shall preserve and protect Magna's
Constitution and other key policies and principles. In particular, Newco shall not support any change that materially compromises the fundamental employee profit-sharing and Employee Charter
principles contained in Magna's Constitution. </FONT></P>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newco II  </B></FONT></P>

<P><FONT SIZE=2>Newco
II will be a special purpose company that shall not carry on any activities apart from holding the Magna Class&nbsp;A Shares and entering into the agreements governing the Newco&nbsp;II Loan
and complying with its obligations thereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
board of directors of Newco&nbsp;II will be the same as the Newco Board unless otherwise agreed by the Newco&nbsp;Board. </FONT></P>

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<A NAME="page_po19201_1_2"> </A>

<P><FONT SIZE=2>RM
Sub and 446&nbsp;shall have the same veto rights over the actions to be taken by Newco&nbsp;II as they do over the actions to be taken by&nbsp;Newco. </FONT></P>

<P><FONT SIZE=2><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Magna Board and Governance  </B></FONT></P>

<P><FONT SIZE=2>RM
Sub and 446&nbsp;shall cause the shares of Magna held by Newco and Newco&nbsp;II to be voted so that the following will be effected with respect to the Magna&nbsp;Board: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>The
Magna Board shall consist of 14&nbsp;directors, 6&nbsp;nominees of 446 (including Chair), 6&nbsp;nominees of RM Sub and 2&nbsp;nominees of Principals (both existing
Co-CEOs). The parties will consult with each other with respect to ensuring that Canadian residency requirements for the Magna Board are met. If the parties cannot agree on which directors
will be Canadian residents, then at least 3 of 446's independent nominees shall be resident Canadians within the meaning of the OBCA and at least 2 of RM&nbsp;Sub's independent nominees shall be
resident Canadians within the meaning of the&nbsp;OBCA.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>At
least 4&nbsp;nominees of each of 446 and RM Sub must meet independence requirements under applicable securities laws and stock exchange&nbsp;rules. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>The
Magna Board governance guidelines shall provide that: (i)&nbsp;directors shall declare their interest and abstain from voting on all matters where there is an actual or perceived conflict,
including, in the case of Principals who are directors, the appointment of members to Board committees or on any matter where 446 or RM Sub has declared a conflict; and (ii)&nbsp;any material
transaction out of the ordinary course of business shall require the support of two-thirds of the directors. For this purpose such a transaction shall be "material" if the transaction
value exceeds the thresholds set out in the definition of "Out of the Ordinary Course Transaction" except that the threshold for non-automotive investment shall be US$20,000,000 per year
in the&nbsp;aggregate. </FONT></P>

<P><FONT SIZE=2>446
and RM Sub will mutually determine the transition timing to effect the necessary changes to the Magna&nbsp;Board. </FONT></P>

<P><FONT SIZE=2><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restriction on Acquiring Magna Shares  </B></FONT></P>

<P><FONT SIZE=2>Without
the prior approval of the Newco Board, neither RM Sub nor 446 (nor&nbsp;their respective affiliates nor their shareholders) shall acquire any additional shares of Magna, excluding Magna
Class&nbsp;A Shares which, when added to the Magna Class&nbsp;A Shares held or controlled by Newco, Newco&nbsp;II and their shareholders (after giving effect to the exercise of any options held
by them), would not exceed 20% in aggregate of the Magna Class&nbsp;A Shares outstanding. </FONT></P>

<P><FONT SIZE=2><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer Restrictions  </B></FONT></P>

<P><FONT SIZE=2>No
sales, liens, pledges or transfers of any of the shares of 445, 446, RM&nbsp;Sub, Newco or Newco&nbsp;II or of the Newco&nbsp;II Loan (including indirect sales) are permitted, subject to the
following exceptions: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Any
party can transfer its Newco or Newco&nbsp;II shares or, in the case of RM&nbsp;Sub, the Newco&nbsp;II&nbsp;Loan: </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>in
the case of RM&nbsp;Sub, to Oleg Deripaska, Oleg Deripaska's immediate family, lineal descendants of Oleg Deripaska or his immediate family, one or more trusts for the benefit of
one or more of the foregoing and/or an entity, directly or indirectly, majority controlled by one or more of the foregoing;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>in
the case of 445 or 446, to Frank Stronach, Frank Stronach's immediate family, lineal descendants of Frank Stronach or his immediate family, one or more trusts for the benefit of
one or more of the foregoing and/or an entity, directly or indirectly, majority controlled by one or more of the&nbsp;foregoing;
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Newco
shares and Newco II shares may be sold by RM&nbsp;Sub to the extent permitted under Sections&nbsp;10 and 11&nbsp;below;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Newco
shares may be sold by the Principals in accordance with the terms of the Principals Agreement;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>As
permitted by Section&nbsp;9 below. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>If
a party wishes to make a permitted transfer as described in clause&nbsp;(a) above, that party shall provide the other party with particulars with respect to the transferee and shall cause the
transferee to sign a counterpart copy of the Newco Shareholders Agreement thereby agreeing to be bound by the terms of the Newco Shareholders Agreement. </FONT></P>

<P><FONT SIZE=2>Notwithstanding
clause&nbsp;(a) above, no party may transfer its shares of Newco or Newco&nbsp;II in a transaction which results in Newco or Newco&nbsp;II becoming liable as a "resident
contributor" to a non-resident trust for the purposes of the </FONT><FONT SIZE=2><I>Income Tax&nbsp;Act</I></FONT><FONT SIZE=2>&nbsp;(Canada). </FONT></P>

<P><FONT SIZE=2><B>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security for RM Financing  </B></FONT></P>

<P><FONT SIZE=2>RM
Sub may pledge some or all of its Newco shares, Newco&nbsp;II shares, the Newco&nbsp;II Loan and the 20,000,000&nbsp;Magna Class&nbsp;A Shares pledged as security for the Newco&nbsp;II
Loan (collectively the "Collateral") to the person or persons providing financing (including any refinancing) to RM and/or to RM&nbsp;Sub for all or part of the RM Investment Amount ("RM's Lender")
as security for the financing (including any refinancing) of the RM Investment Amount, subject to the following limitations: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>The
20,000,000&nbsp;Magna Class&nbsp;A Shares will be certificated and remain registered in the name of Newco&nbsp;II and, prior to realization by RM's Lender
(the&nbsp;"Collateral Realization"), Newco&nbsp;II shall receive all dividends on the 20,000,000&nbsp;Magna Class&nbsp;A Shares free of the pledge and Newco&nbsp;II shall be entitled to vote
such&nbsp;shares;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>The
Collateral must be held by a financial institution qualified to conduct business as a bank in Canada or the United&nbsp;States, with total assets of US$5,000,000,000 or greater,
either for its own account or as collateral agent;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>RM's
Lender will not have any claim against Newco, Newco&nbsp;II or their assets apart from the Collateral Realization in accordance with the terms&nbsp;hereof; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>Until
the second anniversary of the Effective Date, the amount of the loan secured by the Collateral cannot exceed 80% of the RM Investment Amount;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>After
the second anniversary of the Effective Date, the amount of the loan secured by the Collateral cannot exceed 100% of the RM Investment Amount;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>In
the event that RM&nbsp;Sub or RM's Lender realizes against the pledged Magna Class&nbsp;A Shares, RM&nbsp;Sub will be deemed to have sold all of RM's Newco shares,
Newco&nbsp;II shares and the Newco&nbsp;II Loan to Newco or its designee on the terms set out&nbsp;below:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>RM
Sub or RM's Lender may retain or may dispose of that number of pledged Magna Class&nbsp;A Shares with a market value equal to the lesser of (A)&nbsp;the outstanding secured
amount and (B)&nbsp;80% of the RM Investment Amount, and RM&nbsp;Sub will be deemed to have received sale proceeds equal to the market value of the number of pledged Magna Class&nbsp;A Shares so
retained or disposed of by RM&nbsp;Sub or RM's Lender (the&nbsp;"Realization Proceeds");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>If
the realization occurs on or after the second anniversary of the Effective Date, the remainder, if any, of the pledged Magna Class&nbsp;A Shares which are not retained or
disposed of by RM Sub or RM's Lender will be returned to Newco and/or Newco&nbsp;II, as the case may be, and sold in the market and the sum of the after-tax proceeds to Newco and/or
Newco&nbsp;II from such sale plus the Realization Proceeds will, subject to clause&nbsp;(iv) below, be shared as provided under section&nbsp;10 below, taking into account the prior deemed
receipt by RM Sub of the Realization Proceeds;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>If
the realization occurs prior to the second anniversary of the Effective Date, the remainder, if any, of the pledged Magna Class&nbsp;A Shares which are not retained or disposed
of by RM Sub or RM's Lender will be returned to Newco and/or Newco II, as the case may be, and sold in the market on the second anniversary of the Effective Date, or as soon as practicable thereafter,
and the sum of the after-tax sale proceeds to Newco and/or Newco II from such sale plus the Realization Proceeds will, subject to clause&nbsp;(iv) below, be shared as provided under
Section&nbsp;10 below taking into account the prior deemed receipt by RM of the Realization Proceeds, except that the total proceeds will be available firstly to put 446&nbsp;in the same economic
position as it would have been in (taking into account dividends and market price appreciation) if the full 20,000,000 pledged Magna Class&nbsp;A Shares had not been pledged but instead held by RM
Sub and sold at market price on the second anniversary of the Effective Date with the proceeds shared as provided under section&nbsp;10 below;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>If
RM's Lender agrees to facilitate a Tuck-In Transaction (as&nbsp;defined in Section&nbsp;10 below) and to replace the Magna Class&nbsp;A Shares previously pledged
to RM's Lender with Magna Class&nbsp;A Shares issued by Magna in the Tuck-In Transaction, then any tax payable by Newco and/or Newco&nbsp;II in connection with the realization will be
dealt with as provided for in the "RM Sub Exit" section below. If RM's Lender does not agree to this, then the amount to be deducted in respect of tax payable by Newco and Newco&nbsp;II in
determining the amount to which RM Sub is entitled under section&nbsp;10 below shall be all of the tax payable by Newco&nbsp;II as a result of the realization by RM's Lender against the pledged
Magna Class&nbsp;A Shares and 25% of any additional tax payable by Newco and/or Newco&nbsp;II in connection with the buyback;&nbsp;and </FONT></DD></DL>
</DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>the
Collateral will not include any rights of RM Sub under the Newco Shareholder Agreement other than with respect to the RM Sub Exit and the Tuck-In Transaction. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>10.&nbsp;&nbsp;&nbsp;RM Sub Exit  </B></FONT></P>

<P><FONT SIZE=2>Subject
to the special provisions referred to above that deal with RM Sub's ability to pledge the Collateral, RM Sub may sell its Newco shares, its Newco&nbsp;II shares, the Newco&nbsp;II Loan or
the Newco&nbsp;II shares issued to RM Sub on conversion of the Newco&nbsp;II Loan to Newco or its designee at any time after the second anniversary of the Effective Date for a purchase price that
would result in RM Sub receiving (i)&nbsp;the pre-tax value to Newco&nbsp;II of 20,000,000&nbsp;Magna Class&nbsp;A Shares up to the RM Investment Amount, plus (ii)&nbsp;50% of
the amount, if any, by which the pre-tax value to Newco and Newco&nbsp;II of 20,000,000&nbsp;Magna Class&nbsp;A Shares exceeds the RM Investment Amount, less (iii)&nbsp;25% of any
tax incurred by Newco and Newco&nbsp;II in connection with the&nbsp;buyback. </FONT></P>

<P><FONT SIZE=2>The
sale of RM Sub's Newco II shares and the Newco&nbsp;II loan will be effected, if possible, by way of RM Sub converting the Newco&nbsp;II loan to Newco II shares and then Newco and RM Sub
exchanging all their Newco&nbsp;II shares for Magna Class&nbsp;A Shares (the&nbsp;"Tuck-In Transaction"). If this cannot be done or RM&nbsp;Sub and 446&nbsp;otherwise agree, then
RM Sub and 446&nbsp;will use reasonable efforts to identify an alternative structure which minimizes to the greatest extent reasonably possible the tax to Newco and Newco&nbsp;II in connection
with any such buyback while preserving the economic substance of the other provisions contemplated by this&nbsp;Schedule. </FONT></P>

<P><FONT SIZE=2>If
a Tuck-In Transaction is completed, the Magna Class&nbsp;A Shares received by RM Sub will satisfy the portion of the purchase price attributable to RM Sub's Newco&nbsp;II shares and
the Newco&nbsp;II Loan. For the balance of the purchase price, at RM&nbsp;Sub's election, Newco or its designee will satisfy the consideration in cash or in Magna Class&nbsp;A Shares. If a
Tuck-In Transaction is not completed, then, at RM Sub's election, Newco or its designee will satisfy the consideration in cash or Magna Class&nbsp;A&nbsp;Shares. </FONT></P>

<P><FONT SIZE=2><B>11.&nbsp;&nbsp;&nbsp;446&nbsp;Exit  </B></FONT></P>

<P><FONT SIZE=2>At
any time after the third anniversary of the Effective Date, 446&nbsp;shall have the right to require RM Sub to sell its Newco shares, its Newco&nbsp;II shares, the Newco&nbsp;II Loan or the
Newco&nbsp;II shares issued to RM Sub on the conversion of the Newco&nbsp;II Loan to Newco or its designee. In the event that 446&nbsp;requires RM Sub to exit, RM&nbsp;Sub will receive an
aggregate amount for its Newco shares, its Newco&nbsp;II shares, the Newco&nbsp;II Loan or the Newco&nbsp;II shares issued to RM&nbsp;Sub on the conversion of the Newco&nbsp;II loan equal to
(i)&nbsp;the pre-tax value to Newco and Newco&nbsp;II of 20,000,000&nbsp;Magna Class&nbsp;A Shares up to the RM Investment Amount, plus (ii)&nbsp;the amount, if any, by which the
pre-tax value to Newco and Newco&nbsp;II of 20,000,000&nbsp;Magna Class&nbsp;A Shares exceeds the RM Investment Amount, minus (iii)&nbsp;any tax incurred by Newco and
Newco&nbsp;II in connection with the buyback. For greater certainty, the price payable for RM&nbsp;Sub's 420&nbsp;Class&nbsp;C shares of Newco and/or RM&nbsp;Sub's shares of Newco&nbsp;II
may be greater than the price payable for those shares pursuant to Section&nbsp;10 if required in order to provide RM Sub with the aggregate price to which it is entitled under this&nbsp;section. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_po19201_1_6"> </A>

<P><FONT SIZE=2>The
sale of RM Sub's Newco&nbsp;II shares and the Newco&nbsp;II Loan will be effected, if possible, by way of the Tuck-In Transaction. If this cannot be done or RM&nbsp;Sub and
446&nbsp;otherwise agree, then RM Sub and 446&nbsp;will use reasonable efforts to identify an alternative structure which minimizes to the greatest extent reasonably possible the tax to Newco and
Newco&nbsp;II in connection with any such buyback while preserving the economic substance of the other provisions contemplated by this&nbsp;Schedule. </FONT></P>

<P><FONT SIZE=2>If
the Tuck-In Transaction is completed, the Magna Class&nbsp;A Shares received by RM Sub will satisfy the portion of the purchase price attributable to RM Sub's Newco&nbsp;II shares
and the Newco&nbsp;II Loan. For the balance of the purchase price, at RM&nbsp;Sub's election, Newco or its designee will satisfy the consideration in cash or in Magna Class&nbsp;A&nbsp;Shares. </FONT></P>

<P><FONT SIZE=2><B>12.&nbsp;&nbsp;&nbsp;Principals Agreement  </B></FONT></P>

<P><FONT SIZE=2>Without
the prior approval of each of 446 and RM&nbsp;Sub, Newco shall enforce its rights under the Principals Agreement, and shall not amend the Principals Agreement nor waive any obligation of any
of the Principals under the Principals Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="pq19201_schedule__c__regulatory_approvals"> </A>
<A NAME="toc_pq19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE "C"<BR>  <BR>    REGULATORY APPROVALS    <BR>    </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Approval
of the TSX of the issuance and listing of the Magna Class&nbsp;A Shares to be issued to Newco&nbsp;II.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Approval
of the Autorit&eacute; des march&eacute;s financiers du Qu&eacute;bec.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>(a)
The issuance of an advance ruling certificate pursuant to section&nbsp;102 of the </FONT><FONT SIZE=2><I>Competition Act</I></FONT><FONT SIZE=2> (Canada) by the Commissioner of
Competition, or (b)&nbsp;the expiry, termination or waiver of any applicable waiting periods under Part&nbsp;IX of the </FONT><FONT SIZE=2><I>Competition Act</I></FONT><FONT SIZE=2> (Canada), and
the Commissioner advising RM, in writing, on terms satisfactory to Magna, 445 and RM, that she does not intend to make an application under Part&nbsp;VIII of the </FONT><FONT SIZE=2><I>Competition
Act</I></FONT><FONT SIZE=2> (Canada), in connection with the Arrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>Any
other rulings, consents, orders, exemptions, permits, waivers, authorizations, agreements, certificates, clearances and other approvals (including the lapse, without objection, of
a prescribed time under a statute or regulation that provides that a transaction may only be implemented if a prescribed time lapses following the giving of notice without an objection being made) of
any Governmental Entity that are necessary in connection with the Arrangement under, and other applicable requirements of, foreign and supranational laws relating to anti-trust,
competition and investment clearances. </FONT></DD></DL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ps19201_schedule__d__terms_of_agreemen__sch02541"> </A>
<A NAME="toc_ps19201_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE "D"<BR>  <BR>    TERMS OF AGREEMENT BETWEEN NEWCO AND THE PRINCIPALS    <BR>    </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>For
the purposes of the Principals Agreement, the 130&nbsp;Class&nbsp;A shares and 30&nbsp;Class&nbsp;D shares of Newco shall be related to the Principals and the contribution,
directly or indirectly, of Magna Class&nbsp;A Shares to Newco as&nbsp;follows: </FONT></DD></DL>
<BR>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="87%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="67%" ALIGN="CENTER"><FONT SIZE=1><B>Principal<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="16%" ALIGN="CENTER"><FONT SIZE=1><B>Magna Class&nbsp;A Shares</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER"><FONT SIZE=1><B>Newco Shares</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Donald Walker</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>250,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>65&nbsp;Class&nbsp;A</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Siegfried Wolf</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>250,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>65&nbsp;Class&nbsp;A</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Vince Galifi</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>35,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>10&nbsp;Class&nbsp;D</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Jeff Palmer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>35,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>10&nbsp;Class&nbsp;D</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="67%"><FONT SIZE=2>Peter Koob</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%" ALIGN="RIGHT"><FONT SIZE=2>35,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>10&nbsp;Class&nbsp;D</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->

<UL>

<P><FONT SIZE=2>The
Magna Class&nbsp;A Shares shown above for each Principal will be referred to as that Principal's "Contributed Shares". The Newco shares shown above for each Principal will be referred to as that
Principal's "Newco&nbsp;Shares". </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>A
Principal's Newco Shares shall be purchased by Newco or its designee if:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>the
Principal dies or becomes permanently disabled and the Principal or his estate or legal personal representatives decide to sell the Principal's Newco&nbsp;Shares;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>the
Principal's employment with Magna is terminated for cause, in which case the Principal must sell all his Newco Shares to Newco or its designee within 30&nbsp;days after the
termination of&nbsp;employment;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>the
Principal's employment with Magna is terminated and thereafter he becomes a competitor of Magna, in which case the Principal must sell all his Newco Shares within 30&nbsp;days
after Newco becomes aware of such competition;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>the
Principal is still employed by Magna and after the sixth anniversary of the Effective Date, the Principal elects to sell up to a maximum 15% per year of the Principal's remaining
Newco Shares;&nbsp;or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>the
Principal elects to have his Newco Shares purchased following termination of his employment with&nbsp;Magna.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>The
purchase price for a Principal's Newco Shares will be calculated as&nbsp;follows:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>the
after-tax value to Newco of the Principal's Contributed Shares on hand at the time of sale,&nbsp;plus
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>if
RM Sub is no longer a shareholder of Newco, 50% of the Principal's pro&nbsp;rata share of the after-tax value of any of the 20,000,000&nbsp;Magna
Class&nbsp;A&nbsp;Shares purchased by Newco II on the Effective Date still owned by Newco or its affiliates (valuing those Shares at market), any assets attributable to or substituted for such
Shares or proceeds from such assets,&nbsp;plus </FONT></DD></DL>
</DD></DL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_ps19201_1_2"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>the
Principal's pro&nbsp;rata share of the fair market value of any assets of Newco other than all of the Principals' Contributed Shares, the assets referred to in clause&nbsp;(b)
above (whether or not clause&nbsp;(b) above is applicable) and the Magna Class&nbsp;B Shares contributed to Newco by 446,&nbsp;minus
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>the
Principal's pro&nbsp;rata share of any liabilities of Newco.
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>The
purchase price for the Principal's Newco Shares will be paid as to the after-tax value to Newco of the Principal's Contributed Shares on hand at the time of sale by
transferring a portion of the Principal's Contributed Shares with a value equal to the after-tax value to Newco of the Principal's Contributed Shares on hand at the time of sale to the
Principal and as to the balance in cash. The purchase price for the Principal's Newco shares will be paid in full on&nbsp;closing.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>If
a Principal resigns from his employment with Magna prior to the sixth anniversary of the Effective Date and retains his Newco Shares, the portion of the dividends to which the
Principal's Newco Shares would otherwise be entitled in each of the six years following the Effective Date which exceeds the dividends received by Newco from the Principal's Contributed Shares shall
be reduced by the following percentages: </FONT></DD></DL>
<BR>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="94%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="59%" ALIGN="LEFT"><FONT SIZE=1><B>Termination of Employment<BR>
Occurs in Year after<BR>
Effective Date<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>Reduction</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="21%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>100</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>83<SUP>1</SUP>/<SMALL>3</SMALL></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>66<SUP>2</SUP>/<SMALL>3</SMALL></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>33<SUP>1</SUP>/<SMALL>3</SMALL></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="59%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>16<SUP>2</SUP>/<SMALL>3</SMALL></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>6.</FONT></DT><DD><FONT SIZE=2>A
Principal may not sell or transfer, directly or indirectly, any of the Principal's Newco Shares to any person other than Newco or its designee or except as provided for and in
accordance with the terms of the Principals Agreement. </FONT></DD></DL>
<BR>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="90%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="4%"><FONT SIZE=2>7.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Without the prior approval of the Newco Board, none of the Principals (or&nbsp;their respective Affiliates) shall acquire any additional Magna shares, excluding Magna Class&nbsp;A Shares which, when added to the Magna
Class&nbsp;A Shares held or controlled by Newco, Newco&nbsp;II and their shareholders (after giving effect to the exercise of any options held by them) would not exceed 20% in aggregate of the Magna Class&nbsp;A Shares outstanding.</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>The
restriction in Section&nbsp;7(a) does not apply to acquisitions of Magna Class&nbsp;A Shares pursuant to Magna's equity compensation arrangements. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
</UL>
</UL>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="07ZBT19201_3">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_pa19201_1">Exhibit 99.2</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_pa19201_2">TRANSACTION AGREEMENT May 10, 2007</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_pc19201_1">TABLE OF CONTENTS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_pc19201_2">TABLE OF CONTENTS (continued)</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_pe19201_1">TRANSACTION AGREEMENT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_pe19201_2">ARTICLE 1 INTERPRETATION</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_pg19201_1">ARTICLE 2 THE TRANSACTIONS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_pg19201_2">ARTICLE 3 REPRESENTATIONS AND WARRANTIES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_pg19201_3">ARTICLE 4 COVENANTS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_pi19201_1">ARTICLE 5 CLOSING CONDITIONS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_pi19201_2">ARTICLE 6 TERMINATION</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_pk19201_1">ARTICLE 7 CLOSING ARRANGEMENTS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_pk19201_2">ARTICLE 8 MISCELLANEOUS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_pm19201_1">SCHEDULE "A" TRANSACTION STEPS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_po19201_1">SCHEDULE "B" NEWCO SHAREHOLDERS AGREEMENT</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_pq19201_1">SCHEDULE "C" REGULATORY APPROVALS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ps19201_1">SCHEDULE "D" TERMS OF AGREEMENT BETWEEN NEWCO AND THE PRINCIPALS</A></FONT><BR>
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</BODY>
</HTML>
</TEXT>
</DOCUMENT>
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<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>g760100.jpg
<DESCRIPTION>G760100.JPG
<TEXT>
begin 644 g760100.jpg
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
