<SUBMISSION>
<ACCESSION-NUMBER>0000950123-09-034483
<TYPE>8-K/A
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20090807
<ITEMS>5.02
<ITEMS>9.01
<FILING-DATE>20090813
<DATE-OF-FILING-DATE-CHANGE>20090813
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BORGWARNER INC
<CIK>0000908255
<ASSIGNED-SIC>3714
<IRS-NUMBER>133404508
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K/A
<ACT>34
<FILE-NUMBER>001-12162
<FILM-NUMBER>091009371
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3850 HAMLIN RD.
<CITY>AUBURN HILLS
<STATE>MI
<ZIP>48326
<PHONE>2487549200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3850 HAMLIN RD.
<CITY>AUBURN HILLS
<STATE>MI
<ZIP>48326
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BORG WARNER AUTOMOTIVE INC
<DATE-CHANGED>19930628
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>c53038e8vkza.htm
<DESCRIPTION>AMENDMENT TO FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vkza</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K/A</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>Pursuant to Section&nbsp;13 or 15(d)<BR>
of the Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): August&nbsp;7, 2009</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>BORGWARNER INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Delaware<BR>
(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1-12162<BR>
(Commission File No.)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">13-3404508<BR>
(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">3850 Hamlin Road, Auburn Hills, Michigan 48326<BR>
(Address of principal executive offices) (Zip Code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: (248)&nbsp;754-9200</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(Former name or former address, if changed since last report)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;5.02</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Departure of Directors or Certain Officers</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the resignation of Dr.&nbsp;Bernd Matthes, the Company and Dr.&nbsp;Matthes entered
into a separation agreement dated August&nbsp;7, 2009. Under the terms of the agreement, Dr.&nbsp;Matthes
will receive a separation payment of $304,000 and $304,000 in payment of the vacation obligations
owed to him and as partial consideration for his non-competition agreement and release. In
addition, he will be eligible to receive a pro-rated bonus award with respect to 2009, a pro-rated
performance share award with respect to 2009, and six months of outplacement services. In
connection with the foregoing, Dr.&nbsp;Matthes agreed, for a period of 18&nbsp;months, not to seek
employment with, or become financially interested in, certain competitors of the Company and
released the Company from liability with respect to any potential claims arising from his
employment with the Company and its subsidiaries. A copy of the agreement is attached hereto as
Exhibit&nbsp;99.1.
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits. The following exhibits are being filed as part of this Report.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Separation Agreement dated August&nbsp;7, 2009</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&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 hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">BORGWARNER INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: August 13, 2009&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ John J. Gasparovic
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">John J. Gasparovic&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">Its:</TD>
    <TD align="left">Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>c53038exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">July&nbsp;15, 2009 / Revised August&nbsp;5, 2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dr.&nbsp;Bernd Matthes<BR>
3715 Durham Ct.<BR>
Bloomfield Hills, MI 48302

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Bernd:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This letter will confirm the understanding between BorgWarner Inc. (&#147;BW&#148;) and you regarding the
termination of your employment on August&nbsp;7, 2009. We have agreed (the &#147;Agreement&#148;) as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective as of August&nbsp;7, 2009 you will be relieved of your duties as Vice President,
BorgWarner Inc., President and General Manager DualTronic Transmissions China (&#147;BW DTT&#148;)
and from all other management, officer or director positions you hold with BW DTT, BW or
any divisions, subsidiaries, joint ventures, and/or affiliated companies of either BW DTT,
or BW (hereinafter all of the above entities are collectively referred to as the &#147;BW
Group&#148;). For the period July&nbsp;15, 2009 through August&nbsp;6, 2009 you will be granted a paid
leave of absence and shall not be required to report to the Auburn Hills, Michigan offices;
however, you understand and agree that during this period of time you will make yourself
available to, and will perform, those special assignments I may request of you.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective as of August&nbsp;7, 2009, you will resign from your employment with BW DTT and BW
and from any and all management, officer or director positions you hold with BW DTT and BW
and any other entity of the BW Group. You agree that such resignation will be irrevocable
and will be in the form attached hereto as Exhibit&nbsp;1. Any public disclosure, whether by
you, BW DTT or BW, will reflect that you have elected to resign from your employment with
BW DTT and BW effective August&nbsp;7, 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the same time you execute this Agreement, you will enter into the Non-Compete,
Confidentiality, General Waiver and Release and Covenant Not to Sue Agreement, which
document (for which you agree that sufficient consideration is given by the payments and
benefits provided to you pursuant to paragraph 4 below) is incorporated as an essential
part of this Agreement and attached hereto as Exhibit&nbsp;2. Accordingly, any reference
hereinafter to this Agreement shall also be deemed to be a reference to Exhibit&nbsp;2.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you have not revoked this Agreement within a period of seven (7)&nbsp;days from the date
of execution, BW will:</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dr.&nbsp;Bernd Matthes<BR>
July&nbsp;15, 2009 / Revised August&nbsp;5, 2009<BR>
Page 2 of 6

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on August&nbsp;31, 2009 pay you a lump sum gross amount of $304,000, less
applicable statutory withholding deductions (such amounts shall not be considered
as &#147;Compensation&#148; for purposes of the BorgWarner Inc. Retirement Savings Plan (the
&#147;RSP&#148;)). You acknowledge, understand and agree that you have no right, and are not
entitled to receive any severance or termination payment under any other
agreement, BW Group plan, policy or practice;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on January&nbsp;15, 2010, pay you a lump sum gross amount of $304,000, less
applicable statutory withholding deductions (this amount shall not be considered as
&#147;Compensation&#148; for purposes of the RSP) as full, final and complete payment for all
vacation obligations due and owing you through August&nbsp;6, 2009 and as partial
consideration for the Non-Compete, Confidentiality, General Waiver and Release and
Covenant Not to Sue Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>agree to maintain your eligibility to receive the 2009 (paid in 2010)
Management Incentive Plan bonus award (the &#147;Bonus Award&#148;). The amount of the Bonus
Award, if any, will be 8/12ths of the cash payment that you would have received if
your employment had continued for the entire year, and such payment will be made to
you at the same time in calendar year 2010 that payment is made, if any, to the
other participants in the bonus plan. This amount of such Bonus Award shall not be
considered as &#147;Compensation&#148; under the RSP;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>agree to maintain your eligibility to receive a prorated payment, if
any, under the BorgWarner Inc. Amended and Restated 2004 Stock Incentive Plan (the
&#147;SIP&#148;) for the Performance Share award granted to you for the performance period
from January&nbsp;1, 2007 to December&nbsp;31, 2009, paid in 2010. The amount of the
prorated payment, if any, will be 32/36ths of the payment that you would have
received if your employment had continued for the entire performance period, and
such payment will be made under the normal terms of the SIP, based on actual
performance, paid in 2010. The Performance Shares awarded for the periods of 2008
 &#151; 2010 and 2009 &#151; 2011 will be forfeited;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acknowledge that 53,690 of the Stock Options granted to you and vested
as of August&nbsp;7, 2009 will be exercisable by you and that the remaining 9,850
unvested Stock Options and the 18,410.6903 unvested shares of Restricted Stock will
be forfeited. Further, this Agreement does not adversely affect any rights you
have with respect to stock options which have already vested. You will have three
years from August&nbsp;7, 2009 within which to exercise your vested Stock Options, in
accordance with the applicable stock option agreements;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dr.&nbsp;Bernd Matthes<BR>
July&nbsp;15, 2009 / Revised August&nbsp;5, 2009<BR>
Page 3 of 6

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">f.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pay to you your vested post-2004 Excess Plan account balance in cash in
a single sum in the seventh month following August&nbsp;7, 2009, less applicable
statutory withholding deductions, under the BorgWarner Inc. Retirement Savings
Excess Benefit Plan ( the &#147;Excess Plan&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">g.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide you with executive outplacement services of BW&#146;s choice for up
to six (6)&nbsp;months from August&nbsp;7, 2009, to include reasonable access to office and
phone availability while the outplacement services are being provided;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">h.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide you with the opportunity to purchase AS IS the 2008 Cadillac
CTS VIN 1G6DF577980143527, which is presently assigned to you for the amount of
$25,546, including state, local and other taxes. You agree to notify me prior to
August&nbsp;6, 2009, of your decision with respect to the purchase of said automobile.
If you elect to purchase the automobile, the purchase amount must be paid to BW on
or before August&nbsp;15, 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide you, your spouse and your eligible dependents, pursuant to the
requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985 as
amended (&#147;COBRA&#148;), with all applicable medical, dental and vision coverage from
August&nbsp;7, 2009 to the earlier of February&nbsp;6, 2011 or the date you become eligible
for group health insurance coverage under another employer&#146;s group health plan
(provided you, your spouse and your dependents continue to remain eligible for such
coverages) by paying the required COBRA group insurance premiums for that period.
You understand and agree that if you desire to continue in effect the COBRA medical
and prescription insurance coverages and any supplemental group dental and vision
coverages in accordance with COBRA provisions beyond the date that BW stops its
payment of the COBRA group insurance premiums, you will be required to then make
all of the required timely COBRA monthly premium payments;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BW will reimburse you for any company related expense which you incurred prior to July
15, 2009. You understand and agree that (a)&nbsp;no reimbursement will be made to you for any
company related expense which you incur on or after July&nbsp;15, 2009 and (b)&nbsp;that you will
return to BW Group in accordance with the instructions you are given all BW Group
owned/leased property in your possession, including, but not limited to, cellular
telephone, all computer equipment and software, as well as all data, files, records, forms,
and other information of whatever kind, either electronic or hard copy, concerning the BW
Group.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You understand and agree that the payments and benefits provided hereunder by BW are in
consideration of the agreements and covenants contained in this Agreement (the term
&#147;agreements and covenants&#148; as used in this Agreement shall include the Non-Compete,
Confidentiality, General Waiver and Release and Covenant Not to Sue Agreement); that you
waive and release all rights to any further bonus, severance or termination payments</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dr.&nbsp;Bernd Matthes<BR>
July&nbsp;15, 2009 / Revised August&nbsp;5, 2009<BR>
Page 4 of 6

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>under any BW Group plan, policy, program, agreement, guidelines, practice or understanding
of any kind, whether written or oral; that each such agreement and covenant is of the
essence of this Agreement; that each such agreement and covenant is reasonable and necessary
to protect and preserve the interests and properties of the BW Group; that irreparable loss
and damage will be suffered by the BW Group should you breach any of such agreements and
covenants; that each such agreement and covenant is separate, distinct and severable not
only from the other of such agreements and covenants but also from the other and remaining
provisions of this Agreement; that the unenforceability of any such agreement or covenant
shall not affect the validity or enforceability of any other such agreement or covenant or
any other provision or provisions; and that, in addition to any other remedies available to
it, BW shall be entitled to both temporary and permanent injunctions to prevent a breach or
contemplated breach by you of any of such agreement or covenant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that either party fails to honor any of the agreements or covenants set
forth in this Agreement, such party shall reimburse the other for any and all expenses,
including reasonable attorney&#146;s fees, incurred in successfully enforcing such agreement or
covenant. Further, for a maximum of five (5)&nbsp;years from August&nbsp;7, 2009, in the event of a
breach of any of the agreements or covenants set forth in this Agreement, the running of
the applicable Statute of Limitations shall be tolled during the continuation of any such
breach.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You agree to cooperate in the development and execution of pending corporate documents
that pertain to actions for the period you were employed. Further, if requested by the BW
Group, and without additional consideration except as set forth in the following sentence,
you will make yourself available, for a period of three (3)&nbsp;years from August&nbsp;7, 2009, to
cooperate with the defense or prosecution of any claims filed by or against the BW Group
and will furnish your testimony if required by subpoena or when deemed reasonable and
necessary by counsel for the BW Group, provided such times are scheduled so as not to
interfere with the performance of your duties for another employer. BW will pay you a
daily witness fee of $250.00 for any day during which the cooperation services you provide
pursuant to this paragraph exceeds two (2)&nbsp;hours per day; provided, however, that should
you be required to provide such services for more than twenty (20)&nbsp;days (two (2)&nbsp;or more
hours of service per day) during a calendar year, then BW shall pay you a fee of $500.00
for each day such services (in excess of two (2)&nbsp;hours per day) exceed the twentieth
(20<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) day of services for that calendar year. BW will, within thirty (30)&nbsp;days
of receipt of a statement of expenses and/or documentation of all time incurred, reimburse
you for all of your out-of-pocket expenses reasonably incurred by you pursuant to this
paragraph, including travel, transportation, lodging and meals as well as related
miscellaneous costs if such travel is requested of you by BW.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BW agrees to continue to cover you as an Insured Person under the directors and
officers executive liability policy that BW has in force for claims made against you for
the period of your employment as a Managing Director of all of the BW Group companies. BW
will indemnify and hold you harmless from any and all claims, actions, demands, causes</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dr.&nbsp;Bernd Matthes<BR>
July&nbsp;15, 2009 / Revised August&nbsp;5, 2009<BR>
Page 5 of 6

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of action, attorneys&#146; fees and costs of any claims filed against you arising out of your
employment with the BW Group. BW hereby releases you from any claims, actions, demands, and
causes of action in connection with your employment with the BW Group.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BW Group by way of Tim Manganello, Angela D&#146;Aversa and John Sanderson, agree that they
will not make any disparaging, false or misleading remarks regarding you and/or your
employment with the BW Group, nor will they take any other action that could reasonably be
anticipated to cause damage to your reputation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The existence of any claim, demand, action or cause of action by either party against
the other, whether predicated upon this Agreement or otherwise, shall not constitute a
defense to the enforcement of any rights under this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement may be amended only upon the written authorization of both parties. No
action will constitute a waiver of any right unless such waiver is in writing and signed by
the waiving party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any notice pursuant to this Agreement shall be sent by registered or certified mail
return receipt requested, addressed:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="18%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">To:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BorgWarner Inc.<br>
Attn: Timothy M. Manganello<br>
Chairman and Chief Executive Officer<br>
3850 Hamlin Road<br>
Auburn Hills, MI 48326-2872</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="18%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">cc:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BorgWarner Inc.<br>
Attn: General Counsel<br>
3850 Hamlin Road<br>
Auburn Hills, MI 48326-2872</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="18%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">To:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dr.&nbsp;Bernd Matthes<br>
3715 Durham Ct.<br>
Bloomfield Hills, MI 48302</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement is to be performed and construed in accordance with the laws of the
State of Michigan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You represent that you received this Agreement on July&nbsp;15, 2009; revised on August&nbsp;5,
2009; that you were advised to seek information and guidance from such persons as you deem
appropriate, including, but not limited to, an attorney-at-law, regarding the content and
effect of each provision of this Agreement; that you were informed that you have until
August&nbsp;6, 2009 to consider execution of this Agreement; and that if such Agreement is not
executed on or before August&nbsp;6, 2009 it will be deemed rejected by you on such</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dr.&nbsp;Bernd Matthes<BR>
July&nbsp;15, 2009 / Revised August&nbsp;5, 2009<BR>
Page 6 of 6

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>date. Further, you understand that if you execute this Agreement, you may revoke it by
written notice to BW within a period of seven (7)&nbsp;days from the date of execution.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you do not execute this Agreement on or before August&nbsp;6, 2009 or if you revoke it
within the period of seven (7)&nbsp;days from the date of execution, your employment and all
positions (officer and/or director) that you hold with any and all entities of the BW Group
will be terminated on August&nbsp;7, 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of your death, BW agrees to continue to abide by the terms of this
Agreement and BW will make any remaining unpaid payments due to you under this Agreement to
your estate as documented to BW by your trust and will documents and in accordance with the
payment dates set forth in this Agreement. However, this provision does not supersede the
language and requirements of any Employee Benefit Plan or the SIP.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You acknowledge that neither BW nor any other person or entity of the BW Group have
made any representation to you which has not been expressly stated in this Agreement and
that there are no other understandings or agreements between you and the BW Group.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You acknowledge that you have voluntarily entered into this Agreement with full
knowledge of its benefits and requirements, and agree that this Agreement is binding upon
your heirs, legal representatives and assigns, executors and administrators.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this letter accurately sets forth our agreement, please execute the original and one copy and
return them to me.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="36%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">Accepted:&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">BorgWarner Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dr. Bernd Matthes&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Timothy M. Manganello&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chairman and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="6">&nbsp;</TD>
</TR>

<TR>
    <TD align="left">Date: <DIV style="border-bottom: 1px solid #000000; margin-left: 36px"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TABLE>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>EXHIBIT 1</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Timothy M. Manganello<BR>
Chairman and Chief Executive Officer<BR>
BorgWarner Inc.<BR>
3850 Hamlin Road<BR>
Auburn Hills, MI 48326-2872

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Tim:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to paragraph 2 of the Agreement between BorgWarner Inc. (&#147;BW&#148;) and me dated July&nbsp;15,
2009, and revised on August&nbsp;5, 2009 effective as of August&nbsp;7, 2009, I hereby resign my employment
with BorgWarner Inc., (&#147;BW&#148;), BorgWarner DualTronic Transmissions China (&#147;BW DTT&#148;) and any and all
management, officer and/or director positions I hold with, BW or any divisions, subsidiaries, joint
ventures, and/or affiliated companies of either BW DTT or BW (all of the above entities are
collectively the &#147;BW Group&#148;).
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-top: 0px solid #000000" align="left">Dr. Bernd Matthes
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Date: ___________________&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>



</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>EXHIBIT 2</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>NON-COMPETE, CONFIDENTIALITY, GENERAL WAIVER AND</B></U><BR>
<U><B>RELEASE AND COVENANT NOT TO SUE AGREEMENT</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In consideration of the actions, benefits and payments to be provided to me, pursuant to the
Agreement between the undersigned and BorgWarner Inc. (&#147;BW&#148;) dated July&nbsp;15, 2009, and revised on
August&nbsp;5, 2009 (the &#147;Agreement&#148;) of which this Exhibit&nbsp;2 is an essential part thereof, I agree:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For a period of eighteen (18)&nbsp;months from August&nbsp;7, 2009, I will not (i)&nbsp;directly or
indirectly engage in or become interested as a principal, partner, stockholder (other than
stock acquired for investment purposes in open market transactions), director, officer,
employee or consultant of Luk, ZF and ZF Sachs, GETRAG and GFT, Dynax, Fiat Powertrain, or any
division, subsidiary, joint venture, affiliate or parent corporation of any of such entity,
unless such interest is approved in writing by BW, <U>or</U> (ii)&nbsp;directly persuade or
attempt to persuade anyone who is an officer, employee, or agent of (a)&nbsp;BW, (b)&nbsp;BorgWarner
DualTronic Transmissions China (&#147;BW DTT&#148;) or (c)&nbsp;any divisions, subsidiaries, joint ventures,
and/or affiliated companies of either BW or BW DTT (hereinafter all of the above entities
named in this subparagraph (ii)&nbsp;are collectively referred to as the &#147;BW Group&#148;) to seek or
accept employment with any entity other than within the BW Group.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For a period of two (2)&nbsp;years from August&nbsp;7, 2009, I will not (i)&nbsp;disclose or divulge to
anyone any information about the BW Group and their customers, products, technology, and
services which are not available to the general public, including without limitation,
financial information, marketing information, computer technology information and processes,
customer lists, customer servicing requirements, price lists, material cost information,
organizational information, information relating to employment policies, compensation, benefit
plans, and work related personnel data, and any other data, formulae, specifications,
proprietary (whether patented or not) knowledge or information relating to manufacturing
methods, research projects, plans for future developments, trade secrets, inventions,
prototypes, or processes owned and developed and used in the course of any of the BW Group&#146;s
businesses (herein collectively referred to as &#147;Confidential Information&#148;), or (ii)&nbsp;directly
or indirectly make use of any Confidential Information. However, BW Group agrees that this
confidentiality provision will not apply to the extent that I disclose my own compensation
information and information concerning my employee benefit plans to my attorneys, accountants
and financial advisors for the purpose of receiving advice concerning the compensation and
benefits that I have received and will receive at a future date from the BW Group. Further,
BW Group agrees that I may disclose my own compensation and employee benefit information to
any potential employer. Furthermore, this provision will not apply should I be required to
provide Confidential Information pursuant to a subpoena or court order,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and I agree to immediately notify BW Group in the event that I receive a subpoena or court
order in order to allow BW Group the opportunity to object to the disclosure of the
Confidential Information. BW Group also agrees that I may disclose the terms and existence
of my confidentiality and non-competition obligations under the Agreement to a subsequent
employer or potential employer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To waive, release and forever discharge the BW Group and the present, former and future
employees, officers, directors, agents, successor and assigns of the BW Group (hereinafter
collectively referred to as the &#147;Released Parties&#148;) from any and all matters, claims, actions,
demands, causes of actions, attorneys fees and costs, debts, accounts, obligations, or
liabilities, of every nature and kind whatsoever in law, equity, tort or contract, whether
liquidated or unliquidated whether now known or unknown (by way of illustration, but without
limitation, any and all claims arising under the laws of The United States and /or
the State of Michigan as set forth in Appendix&nbsp;A) against the Released Parties, arising out of
my employment with the BW Group and termination there from, that I now have or may have at any
time prior to or at the time of my resignation (the &#147;Released Claims&#148;); provided however,
that nothing herein shall release any claim that I may have against the BW Group for failing
to perform its obligations under the Agreement (including without limitation the payments to
be made pursuant to the qualified and non-qualified plans listed in Section&nbsp;4 of the
Agreement) or my rights to receive a distribution under the BorgWarner Inc. Retirement Savings
Plan. The Released Claims include any claim to rescind the Agreement or this Non-Compete,
Confidentiality, General Waiver and Release and Covenant Not to Sue Agreement, once the seven
(7)&nbsp;day revocation period of paragraph 15 of the Agreement has expired.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To covenant not to sue the Released Parties pursuant to any provision of the United States
Code (specifically including, but not limited to, any and all rights created by or under the
Age Discrimination in Employment Act as amended), any state law, or any other cause or action
whatsoever in law, equity, tort, or contract with respect to any and all of the Released
Claims or to voluntarily participate in any other such cause or action against the Released
Parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That I will not make any disparaging, false or misleading remarks regarding the BW Group or
any of its products, employees, subsidiaries, joint ventures, or services, nor will I take any
other action that could reasonably be anticipated to cause damage to the reputation or
goodwill of the BW Group.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">F.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That all of the obligations I have undertaken in this Non-Compete, Confidentiality, General
Waiver And Release And Covenant Not To Sue Agreement will be binding upon my heirs, legal
representatives and assigns, executors and administrators.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">G.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That this Non-Compete, Confidentiality, General Waiver And Release And Covenant Not To Sue
Agreement are freely and voluntarily executed, that I have had adequate time to consider this
matter, obtain such information and guidance from others as I desire, and that no promise,
inducement, or agreement not set forth herein has been made to me.</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">H.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I understand that this Non-Compete, Confidentiality, General Waiver And Release And Covenant
Not To Sue Agreement creates certain obligations on my part and waives and releases certain
rights I may have; therefore, I have been advised to consult an attorney before I sign this
document.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">I.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I acknowledge that I have read this entire Agreement, that I have had the opportunity to
consult with counsel, and that I understand all of the terms and knowingly and voluntarily
enter into this Agreement. I am receiving valuable consideration to which I am not otherwise
entitled. I am waiving and releasing claims against Released Parties that exist as of the
date of my execution of this Agreement. I further acknowledge that I have been afforded
twenty-one (21)&nbsp;days to consider this Agreement, have been advised to seek review of this
Agreement by an attorney and that I have seven (7)&nbsp;days after execution to revoke the
Agreement.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, I willingly accept and agree to this Non-Compete, Confidentiality, General
Waiver And Release And Covenant Not To Sue Agreement by executing such this &#95;&#95;&#95;&#95;&#95;&#95; day of
&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;, 2009.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD colspan="3" style="border-top: 1px solid #000000" align="left">Dr. Bernd Matthes
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>

</TABLE>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX A</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>SCOPE OF RELEASE</B></U>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The list set forth below is a representative sample of the types of claims being released but is
not intended to be a complete list.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Federal Law:</U> Title VII of the Civil Rights Act of 1964 (race, color, religion, national
origin or sex); the Age Discrimination in Employment Act of 1967 (age); the Older Worker Benefit
Protection Act (&#147;OWBPA&#148;) (age); the Vocational Rehabilitation Act of 1973 (handicap); 42
U.S.C.S1981, 1986 and 1988 (race); the Employee Retirement Income Security Act (ERISA) (pension and
employee benefits); the Equal Pay Act of 1963 (prohibits pay differentials based on sex); the
Immigration Reform and Control Act of 1986 (immigration); Executive Order 11246 (race, color,
religion, sex or national origin); Executive Order 1141 (age), Vietnam Era Veterans Readjustment
Assistance Act of 1974 (Vietnam era veterans and disabled veterans); S301 of the Labor Management
Relations Act, 29 U.S.C.S185 <U>et. seq.</U> (suits for breach of a Collective Bargaining
Agreement); the Fair Labor Standards Act (minimum wage and overtime pay); the Labor Management
Relations Act (rights protected by the National Labor Relations Board); the Occupational Safety and
Health Act (safety matters) and Federal Common Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Michigan Law:</U> The Elliot-Larsen Civil Rights Act (race, color, religion, national origin,
age, sex, marital status, height and weight); the Michigan Handicappers&#146; Civil Rights Act
(handicap); the Michigan Wage Payment Act (MCLA S408.471) (wages and benefits); the Polygraph
Protection Act of 1981 (restrictions on the use of polygraphs); the Bullard-Plawecki Employee Right
to Know Act (personnel record information); the common law of the State of Michigan; workers&#146;
compensation; tort; breach or express or implied employment contract; wrongful discharge; workers&#146;
compensation retaliation; tortious interference with contractual relations and loss of consortium.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notice: Questions regarding the scope of this Release should be clarified with advice of an
attorney.
</DIV>



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