Updated from 1:05 a.m. EDT

The United Auto Workers union would eventually own 55% of the stock in a restructured Chrysler under a deal reached by the union and the automaker, according to the Wall Street Journal, which reviewed a summary of the agreement.

Italy's Fiat "eventually" will own 35%, and the U.S. government and Chrysler's secured lenders together will end up owning 10% of the company once it is reorganized, the summary said.

According to the summary, Chrysler will issue a $4.59 billion note to the health care trust fund that the union will manage for retired workers, the Journal reports. The agreement said Chrysler will pay $300 million in cash into the trust fund in 2010 and 2011, and increasing amounts up to $823 million in the years 2019 to 2023.

The trust fund will own a "significant" amount of Chrysler stock and will be allowed to appoint a representative to Chrysler's board, the summary said.

Factory-level union leaders voted unanimously Monday night to recommend approval of concessions that union President Ron Gettelfinger said would help keep the automaker out of bankruptcy.

Union leaders say ratification votes across the nation should be finished by Wednesday. That's one day before Chrysler's government-imposed deadline to restructure or the government will cut off aid and send the company into liquidation.

Meanwhile, Germany's Daimler ( DAI) said it has reached a deal to get rid of its remaining 19.9% stake in Chrysler, severing the last tie between the two automakers that was formed more than a decade ago.

"Following the transfer of the term sheet into the final definitive agreements, the relationship between Daimler and Chrysler will solely consist of supplier-customer relations, including limited support for certain dealer financing until the end of September 2009, as well as certain guaranties," Daimler said in a statement Monday.

Under the agreement, Daimler will forgive $1.9 billion in loans it extended to Chrysler. Daimler also agreed to pay $200 million into Chrysler's pension plan when the deal takes effect and in each of the two years afterward. The money will help fund the pensions of former DaimlerChrysler AG workers, Daimler said.

Daimler's 19.9% stake will be turned over to Chrysler's parent, Cerberus Capital.

The move allows Cerberus and Chrysler to intensify talls with Fiat on a merger deal. Chrysler needs the Fiat merger as well as cost concessions from its debt holders and the United Auto Workers to receive more U.S. aid and avoid bankruptcy, the Journal notes.
Copyright 2008 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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