##### 



Execution Version
 PLAN B SETTLEMENT AGREEMENT
 DATED AS OF SEPTEMBER 18, 2006




---



##### 



Table of Contents
 PageARTICLE I. DEFINITIONS
    
    
    2Section
1.01
    
    Definitions
    
    
    2Section
1.02
    
    Other
Definitional
Provisions
    
    
    11Section
1.03
    
    Captions
    
    
    11Section
1.04
    
    Recitals
    
    
    11ARTICLE II. SETTLEMENT OF CLAIMS
    
    
    11Section
2.01
    
    Settlement; Plan B Payment
    
    
    11ARTICLE III. RELEASES
    
    
    12Section
3.01
    
    Debtor
Release of Pneumo
Parties
    
    
    12Section
3.02
    
    Pneumo Party
Release of FMC Group
    
    
    13Section
3.03
    
    Limitation on
Releases
    
    
    14Section
3.04
    
    Release and
Termination of PSA
    
    
    15Section
3.05
    
    Releases
Under 1994 APA
    
    
    15Section
3.06
    
    Release of
Pneumo Asbestos
Claims
    
    
    16ARTICLE IV. CERTAIN COVENANTS
    
    
    16Section
4.01
    
    Certain
Obligations of the
FM Parties
    
    
    16Section
4.02
    
    Cooperation
    
    
    17Section
4.03
    
    Motion to
Approve Settlement
    
    
    17Section 4.04
    
    Voting by
Pneumo Parties
    
    
    18Section 4.05
    
    Stay of
Pending Appeal
    
    
    18Section 4.06
    
    Specific
Performance
    
    
    18Section 4.07
    
    Documentation
of Agreement Set
Forth in Section
9(a) of Term Sheet
    
    
    19Section
4.08
    
    Restriction
on Payments Under
Plan
    
    
    19Section
4.09
    
    Segregation
of Assets
    
    
    19Section
4.10
    
    Plan/Confirmation Order Provisions
    
    
    20Section
4.11
    
    Termination
of Asbestos
Participation in
Plan
    
    
    20ARTICLE V. EFFECTIVENESS OF ARTICLES II AND III
    
    
    21Section
5.01
    
    Conditions
    
    
    21Section
5.02
    
    Pneumo Abex
Consultation Rights
    
    
    24ARTICLE VI. REPRESENTATIONS AND WARRANTIES
    
    
    25Section
6.01
    
    Representations and Warranties of
the FM Parties
    
    
    25Section
6.02
    
    Representations and Warranties of
Cooper
    
    
    25Section
6.03
    
    Representations and Warranties of
PCT and Pneumo Abex
    
    
    26ARTICLE VII. TERMINATION
    
    
    26Section
7.01
    
    Termination
of this Agreement
    
    
    26Section
7.02
    
    Consequences
of Termination of
Agreement
    
    
    28ARTICLE VIII. GENERAL PROVISIONS
    
    
    28Section
8.01
    
    Binding
Effect; Assignment;
Third Party
Beneficiaries
    
    
    28Section
8.02
    
    Entire
Agreement; Amendment; Waivers
    
    
    28




---



##### 



Table of Contents
 PageSection 8.03
    
    No Admissions
    
    
    29Section 8.04
    
    Notices
    
    
    29Section 8.05
    
    Governing Law;
Jurisdiction
    
    
    31Section 8.06
    
    Exercise of Rights and
Remedies
    
    
    31Section 8.07
    
    Further Assurances
    
    
    32Section 8.08
    
    Reformation and
Severability
    
    
    32Section 8.09
    
    Construction
    
    
    32Section 8.10
    
    Settlement Privilege
    
    
    32Section 8.11
    
    Counterparts
    
    
    32
 ExhibitsExhibit A:
    
    Affiliates of DebtorsExhibit B:
    
    Pneumo Protected PartiesExhibit 4.03(a):
    
    9019 MotionExhibit 4.03(b):
    
    Form of Settlement Approval OrderExhibit 4.07:
    
    Wagner Insurance Agreement




---



##### 



PLAN B SETTLEMENT AGREEMENT
 Agreement) Execution Date) Cooper Ltd (Cooper LLC, Cooper) PCT (Pneumo Abex Pneumo Parties), FMC (FMP FM Parties), FCR) ACC
 RECITALS
  Cooper Claims
 Pneumo
Settlement Agreement) Asserted Claims).




---



##### 



Term Sheet
    ARTICLE I.
 DEFINITIONS
 Definitions
 1994 APA
 1994 APA Buyer Indemnified Parties
 1994 APA Seller Indemnified Parties
 9019 Motion
 Affiliate Owner
 2




---



##### 



Agreement
 Asserted Claims
 Bankruptcy Code
 Bankruptcy Court
 Business
 Business Day
 Buyers
 Challenge Proceeding
 Claim
 Class 5J Claims
 Class 6J Claims
 Cooper
 Cooper Claims
 Cooper LLC
 Cooper Ltd
 3




---



##### 



Damages
 Debtors
 Disclosure Statement
 Effective Date
 Entity
 Estate
 Excluded Claims
 Execution Date
 FAIR Act
 Final Order
 FMC
 FMP
 FM Parties
 Former Affiliate
 4




---



##### 



Future Affiliate
 Governmental Unit
 Insurance Agreement
 Interim Plan A Effective Date
    Interim Plan B Effective Date
   Mallia Case Mallia v. Bennett Auto Supply, Inc., et al., on appeal sub nom., Pneumo Abex, LLC v. Mallia,
 Materially Changed Plan
 Modified Plan
 Mutual Guaranty
 5




---



##### 



Non-Debtor Affiliates
 PCT
 Person
 Plan
 Plan A
 Plan A Documents
 Plan A Effective Date
 Plan B Date
 Plan B Effective Date
    6




---



##### 



Plan B Implementation Date
     Plan B Payment
 Plan Documents
 Plan Proponents
 Pneumo Abex
 Pneumo Asbestos Claims
 7




---



##### 



provided, however, provided further,
 Pneumo Parties
 Pneumo Plan Supplement
 Pneumo Protected Asbestos Claims
 Pneumo Protected Party
 8




---



##### 



provided however
 Pneumo Protected Party Injunction
 Pneumo Settlement Agreement
 PSA
 PSA Buyer Indemnified Parties
 PSA Seller Indemnified Parties
 Qualifying Materially Changed Plan
 Released Claims Against Cooper
 9




---



##### 



Released Claims Against FMC Group
 Released Claims Against Pneumo Abex/PCT
 Reorganization Cases
 Reversal Order
 Settlement Approval
Order
 Term Sheet
 FMP/T&N Voting Determination
 FMP/T&N Voting Notice
 Trust
 Trust Advisory Committee
 U.S.
 U.S. Trustee
 Voting Determination
 Voting Notice
 Wagner
 Wagner Asbestos Claims
 10




---



##### 



Wagner Insurance Agreement
 Other Definitional Provisions
      Captions
 Recitals
 ARTICLE II.
SETTLEMENT OF CLAIMS
 Settlement; Plan B Payment Plan B Payment
 11




---



##### 



ARTICLE III.
RELEASES
 Debtor Release of Pneumo Parties
 Release of Cooper. including any of
the foregoing based on or related to acts or omissions that constituted or may have constituted
ordinary or gross negligence or reckless, willful, or wanton misconduct, or any conduct which
may result in strict liability under any applicable law, Released Claims Against Cooper)
 Release of Pneumo Abex/PCT
 12




---



##### 



including
any of the foregoing based on or related to acts or omissions that constituted or may have
constituted ordinary or gross negligence or reckless, willful, or wanton misconduct, or any
conduct which may result in strict liability under any applicable law, Released Claims Against Pneumo Abex/PCT)
  Pneumo Party Release of FMC Group
  13




---



##### 



including any of the foregoing based on or related to acts or
omissions that constituted or may have constituted ordinary or gross negligence or reckless,
willful, or wanton misconduct, or any conduct which may result in strict liability under any
applicable law, Released Claims Against FMC Group)
  Limitation on Releases Excluded Claims):
      14




---



##### 



Release and Termination of PSA
   Releases Under 1994 APA
  15




---



##### 



provided
however and provided further
  Release of Pneumo Asbestos Claims
 ARTICLE IV.
CERTAIN COVENANTS
 Certain Obligations of the FM Parties
  16




---



##### 



Cooperation
 Motion to Approve Settlement Exhibit 4.03(a) 9019
 17




---



##### 



Motion) Exhibit 4.03(b) Settlement Approval Order)
 Voting by Pneumo Parties provided
 Stay of Pending Appeal Cooper
Industries, LLC v. Federal-Mogul Global, Inc.,
 Specific Performance
 18




---



##### 



Documentation of Agreement Set Forth in Section 9(a) of Term Sheet Wagner Insurance Agreement (provided
 Restriction on Payments Under Plan
 Segregation of Assets Escrow Account
 19




---



##### 



Plan/Confirmation Order Provisions
    Termination of Asbestos Participation in Plan
  Materially Changed Plan
   20




---



##### 



ARTICLE V.
EFFECTIVENESS OF ARTICLES II AND III
 Conditions
 Voting of Pneumo Asbestos Claims
 Voting Notice Voting Determination).
  21




---



##### 



Certain Court Rulings Regarding Plan A Prior to the Plan A Effective Date
 Consensus
 Failure to Agree on Documentation
 Effectiveness Stayed Pending Appeal
 Appeal Pending After Six Months
 22




---



##### 



Re-solicitation Issues On Reversal of Plan A Confirmation Reversal Order) provided
 Failure to Approve Plan A Due to Issues Involving Representative of Future
Claimants
 Stay of Pneumo Protected Party Injunction (provided
 Voting of FMP and T&N Limited Asbestos Personal Injury Claims
 Class 5J Claims
 23




---



##### 



Class 6J Claims FMP/T&N Voting Notice FMP/T&N Voting Determination
    Pneumo Abex Consultation Rights
 24




---



##### 



ARTICLE VI.
REPRESENTATIONS AND WARRANTIES
 Representations and Warranties of the FM Parties
 Organization and Qualification
 Authority
 Enforceability
 Representations and Warranties of Cooper
 Organization and Qualification
 Authority
 Enforceability
 25




---



##### 



Representations and Warranties of PCT and Pneumo Abex
 Organization and Qualification
 Authority
 Enforceability
 ARTICLE VII.
TERMINATION
 Termination of this Agreement
     26




---



##### 



provided however provided further
     27




---



##### 



Consequences of Termination of Agreement
 ARTICLE VIII.
GENERAL PROVISIONS
 Binding Effect; Assignment; Third Party Beneficiaries
 Entire Agreement; Amendment; Waivers
 28




---



##### 



provided however
 No Admissions
 Notices
 1)
    
    If to the FM Parties:Federal-Mogul Corporation
26555 Northwestern Highway
Southfield, MI 48034 
Telephone: (248) 354-7055
Facsimile: (248) 354-8103
Attention: General Counselwith a copy (which will not constitute notice for purposes of this Agreement) to:Sidley Austin LLP
One South Dearborn Street 
Chicago, Illinois 60603
Telephone: (312) 853-7000
Facsimile: (312) 853-7036
Attention: James F. Conlan2)
    
    If to Cooper:
 29




---



##### 



Cooper Industries Ltd.
600 Travis
Suite 5800
Houston, TX 77210-4446
Telephone: (713) 209-8407
Facsimile: (713) 209-8989
Attention: General Counselwith a copy (which shall not constitute notice for purposes of this Agreement) to:Orrick, Herrington & Sutcliffe LLP
3050 K Street, NW
Washington, D.C. 20007
Telephone: (202) 339-8400
Facsimile: (202) 339-8500 
Attention: Roger Frankel3)
    
    If to the FCR:Eric D. Green
c/o Boston University School of Law
765 Commonwealth Avenue 
Boston, Massachusetts 02215 
Telephone: (617) 353-2807
Facsimile: (617) 353-3077with a copy (which shall not constitute notice for purposes of this Agreement) to:Young Conaway Stargatt & Taylor, LLP 
The Brandywine Building
1000 West Street
17th Floor
Wilmington, DE 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
Attention: James L. Patton, Jr.4)
    
    If to the ACC:Joseph F. Rice, Chairman of the ACC 
Motley Rice LLC 
28 Bridgeside Blvd.
Mount Pleasant, SC 29464
Telephone: (843) 216-9000
Facsimile: (843) 216-9450with a copy (which shall not constitute notice for purposes of this Agreement) to:
 30




---



##### 



Caplin & Drysdale, Chartered
375 Park Avenue
New York, New York 10152
Telephone: (212) 319-7125
Facsimile: (212) 644-6755
Attention: Elihu Inselbuch5)
    
    If to Pneumo Abex:Pneumo Abex LLC
35 East 62nd Street
New York, NY 10021
Telephone: (212) 572-8600
Facsimile: (212) 572-5151
Attention: Steven Fasmanwith a copy (which shall not constitute notice for purposes of this Agreement) to:Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019-6064
Telephone: (212) 373-3133
Facsimile: (212) 492-0133
Attention: Stephen J. Shimshak
 Governing Law; Jurisdiction
   Exercise of Rights and Remedies
 31




---



##### 



Further Assurances
 Reformation and Severability
 Construction
 Settlement Privilege
 Counterparts
   32




---



##### 



PNEUMO ABEX LLC
    
    
    
    FEDERAL-MOGUL CORPORATIONBy:
    
    /s/ Steven Fasman
    
    
    
    By:Name:
    
    Steven Fasman
    
    
    
    
    
    Name:Title:
    
    President
    
    
    
    
    
    Title:PCT INTERNATIONAL HOLDINGS INC.
    
    
    
    FEDERAL-MOGUL PRODUCTS, INC.By:
    
    /s/ Barry F. Schwartz
    
    
    
    By:Name:
    
    Barry F. Schwartz
    
    
    
    
    
    Name:Title:
    
    E.V.P & General Counsel
    
    
    
    
    
    Title:COOPER INDUSTRIES, LLC
    
    
    
    FUTURE CLAIMANTS REPRESENTATIVE FOR
FEDERAL-MOGUL CORPORATION AND FEDERAL-MOGUL
PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:COOPER INDUSTRIES, LTD.
    
    
    
    OFFICIAL COMMITTEE OF ASBESTOS CLAIMANTS
FOR FEDERAL-MOGUL CORPORATION AND
FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:




---



##### 



PNEUMO ABEX LLC
    
    
    
    FEDERAL-MOGUL CORPORATIONBy:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:PCT INTERNATIONAL HOLDINGS INC.
    
    
    
    FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:COOPER INDUSTRIES, LLC
    
    
    
    FUTURE CLAIMANTS REPRESENTATIVE FOR
FEDERAL-MOGUL CORPORATION AND FEDERAL-MOGUL
PRODUCTS, INC.By:
    
    /s/ Diane K. Schumacher
    
    
    
    By:Name:
    
    Diane K. Schumacher
    
    
    
    
    
    Name:Title:
    
    Vice President
    
    
    
    
    
    Title:COOPER INDUSTRIES, LTD.
    
    
    
    OFFICIAL COMMITTEE OF ASBESTOS CLAIMANTS
FOR FEDERAL-MOGUL CORPORATION AND
FEDERAL-MOGUL PRODUCTS, INC.By:
    
    /s/ Diane K. Schumacher
    
    
    
    By:Name:
    
    Diane K. Schumacher
    
    
    
    
    
    Name:Title:
    
    Special Counsel & Chief
    
    
    
    
    
    Title:Compliance Officer




---



##### 



PNEUMO ABEX LLC
    
    
    
    FEDERAL-MOGUL CORPORATIONBy:
    
    
    
    
    
    
    
    By:
    
    /s/ Lance LisName:
    
    
    
    
    
    
    
    Name:
    
    Lance LisTitle:
    
    
    
    
    
    
    
    Title:
    
    SecretaryPCT INTERNATIONAL HOLDINGS INC.
    
    
    
    FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:
    
    /s/ Lance LisName:
    
    
    
    
    
    
    
    Name:
    
    Lance LisTitle:
    
    
    
    
    
    
    
    Title:
    
    SecretaryCOOPER INDUSTRIES, LLC
    
    
    
    FUTURE CLAIMANTS REPRESENTATIVE FOR
FEDERAL-MOGUL CORPORATION AND FEDERAL-MOGUL
PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:COOPER INDUSTRIES, LTD.
    
    
    
    OFFICIAL COMMITTEE OF ASBESTOS CLAIMANTS
FOR FEDERAL-MOGUL CORPORATION AND
FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:




---



##### 



PNEUMO ABEX LLC
    
    
    
    FEDERAL-MOGUL CORPORATIONBy:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:PCT INTERNATIONAL HOLDINGS INC.
    
    
    
    FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:COOPER INDUSTRIES, LLC
    
    
    
    FUTURE CLAIMANTS REPRESENTATIVE FOR
FEDERAL-MOGUL CORPORATION AND FEDERAL-MOGUL
PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:
    
    /s/ ERIC D. GREENName:
    
    
    
    
    
    
    
    Name:
    
    ERIC D. GREENTitle:
    
    
    
    
    
    
    
    Title:
    
    FCRCOOPER INDUSTRIES, LTD.
    
    
    
    OFFICIAL COMMITTEE OF ASBESTOS CLAIMANTS
FOR FEDERAL-MOGUL CORPORATION AND
FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:




---



##### 



PNEUMO ABEX LLC
    
    
    
    FEDERAL-MOGUL CORPORATIONBy:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:PCT INTERNATIONAL HOLDINGS INC.
    
    
    
    FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:COOPER INDUSTRIES, LLC
    
    
    
    FUTURE CLAIMANTS REPRESENTATIVE FOR
FEDERAL-MOGUL CORPORATION AND FEDERAL-MOGUL
PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:Name:
    
    
    
    
    
    
    
    Name:Title:
    
    
    
    
    
    
    
    Title:COOPER INDUSTRIES, LTD.
    
    
    
    OFFICIAL COMMITTEE OF ASBESTOS CLAIMANTS
FOR FEDERAL-MOGUL CORPORATION AND
FEDERAL-MOGUL PRODUCTS, INC.By:
    
    
    
    
    
    
    
    By:
    
    /s/ Elihu InselbuchName:
    
    
    
    
    
    
    
    Name:
    
    Elihu InselbuchTitle:
    
    
    
    
    
    
    
    Title:
    
    Counsel




---



##### 



EXHIBIT A
 TO PLAN B SETTLEMENT AGREEMENT




---



##### 



EXHIBIT B
 TO PLAN B SETTLEMENT AGREEMENT
 A.
    
    Cooper Related Entities:
 1.
    
    Cooper B-Line. Inc.2.
    
    Cooper Bussmann, Inc.3.
    
    Cooper Crouse-Hinds, LLC4.
    
    Cooper Electrical International, Inc.5.
    
    Cooper Holdings Ltd.6.
    
    Cooper Industries, Ltd.7.
    
    Cooper Industries, LLC (including its predecessors-in-interest Cooper
Industries, Inc., McGraw-Edison Company, Cooper Bessemer Corporation)8.
    
    Cooper Lighting. Inc.9.
    
    Cooper Power Systems, Inc.10.
    
    Cooper Power Systems Transportation Company11.
    
    Cooper Power Tools, Inc.12.
    
    Cooper Tools, Inc.13.
    
    Cooper US, Inc.14.
    
    Cooper Wiring Devices, Inc.15.
    
    Powerstor, Inc.
 B.
    
    PCT/Pneumo Abex Related Entities:
 1.
    
    Abex Corporation (f/k/a The American Brake Shoe & Foundry Company and
American Brake Shoe Company)2.
    
    American Brakeblok Corporation (f/k/a American Brake Materials
Corporation)3.
    
    Cleveland Pneumatic Company (f/k/a Cleveland Pneumatic Tool Company)




---



##### 



4.
    
    Flavors Holdings Inc.5.
    
    Illinois Abex Corporation6.
    
    M & F Worldwide Corp. (f/k/a Henley Pneumo Abex Inc. and Power Control Technologies Inc.)7.
    
    Mafco Consolidated Group Inc. (f/k/a Henley Investments, Inc. and Abex Inc.)8.
    
    Mafco Worldwide Corporation9.
    
    MCG Intermediate Holdings Inc.10.
    
    NWL Service Corp.11.
    
    PCT International Holdings Inc. (f/k/a PA Acquisition Corporation, Control Technologies
International Inc. and Power Control Technology Inc.)12.
    
    Pneumo Abex Corporation (f/k/a Hengro Seven Inc. and PA Holdings Corporation)13.
    
    Pneumo Abex LLC14.
    
    Pneumo Corporation15.
    
    MacAndrews & Forbes Holdings Inc. (f/k/a/ Mafco Holdings Inc.)