Document:

Amendment No. 2 to Credit and Guaranty Agreement

 EXHIBIT 10.31 
 EXECUTION COPY 
 AMENDMENT NO. 2 TO CREDIT AND GUARANTY AGREEMENT 
 AMENDMENT NO. 2 dated as of November 30, 2006 (this “Amendment”) to the Credit and Guaranty Agreement (the “Credit
Agreement”) dated as of November 23, 2005, among Federal-Mogul Corporation, certain of its subsidiaries named on the signature pages thereto as borrowers (the “Borrowers”), the lenders party thereto (the
“Lenders”) and Citicorp USA, Inc., as administrative agent (the “Administrative Agent”). 
 W I T N E S S
E T H : 
 WHEREAS, the Borrowers have asked the Lenders and the Administrative Agent, and the Lenders party hereto and the
Administrative Agent are willing, on the terms set forth below, to amend certain provisions of the Credit Agreement and the Security and Pledge Agreement; 
 NOW, THEREFORE, the parties hereto agree as follows: 
 Section 1. Defined Terms; References.
Unless otherwise specifically defined herein, each term used herein has the meaning assigned to such term in the Credit Agreement or the Security and Pledge Agreement, as applicable. Each reference to “hereof”, “hereunder”,
“herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement or the Security and Pledge Agreement, as applicable,
shall, after this Amendment becomes effective, refer to the Credit Agreement or the Security and Pledge Agreement, as applicable, as amended hereby. 
 Section 2. Amendment of Section 1.01 of the Credit Agreement. Section 1.01 of the Credit Agreement is hereby amended as follows: 
 (a) to revise the defined term “Adjusted LIBOR Rate” by deleting the phrase
“upwards, if necessary,” in the parenthetical in the first sentence thereof, and by deleting the phrase “next 1/16th” in that same parenthetical and inserting the phrase “nearest 1/100th” in its place;

 (b) to insert a new defined term immediately following the defined term “AM Finished Goods” as follows: 
 “‘Amendment Date’ shall mean November 30, 2006.”; 
 (c) to insert a new defined term immediately following the defined term “Amounts” as follows: 

 “‘Anticipated Japanese Consolidation’ shall mean, with respect to three of the
Parent’s and the Subsidiaries’ Japanese manufacturing, technical and distribution facilities that are related primarily to the Parent’s and its Subsidiaries’ System Protection Group and Aftermarket operations, the anticipated
consolidation of such facilities into one facility that will be located in Japan.”; 
 (d) to revise the defined term “Asian
Investment” by deleting “$90,000,000” from clause (ii)(A) thereof and inserting “$125,000,000” in its place, by deleting the word “and” at the end of clause (ii)(D) thereof, by inserting the following new
clause (iii) thereto: “(iii) related Other Foreign Transfers and”, by renumbering existing clause (iii) thereof as clause (iv) thereof, and by deleting the phrase “and (ii)” in clause (iv) thereof and
inserting the phrase “, (ii) and (iii)” in its place; 
 (e) to delete the defined term “Blocker BV”;

 (f) to revise the defined term “China Restructuring” by inserting the phrase “or another Non-Debtor Foreign
Subsidiary Holding Company” immediately after the phrase “Mauritius holding company” in clause (ii) thereof, by deleting the word “and” at the end of clause (ii) thereof, by adding the following new clause
(iii) thereto: “(iii) related Other Foreign Transfers and”, by renumbering existing clause (iii) thereof as clause (iv) thereof, and by deleting the phrase “and (ii)” in clause (iv) thereof and inserting the
phrase “, (ii) and (iii)” in its place; 
 (g) to insert a new defined term immediately following the defined term
“Commitment Fee” as follows: 
 “‘Company Voluntary Arrangements’ shall mean collectively, (i) the
proposals dated June 23, 2006 for company voluntary arrangements in respect of T&N and forty-eight other U.K. Subsidiaries which are group companies, and (ii) the proposals dated June 23, 2006 for company voluntary arrangements in
respect of Federal Mogul Growth Limited and F-M UK Holding Limited.”; 
 (h) to revise the defined term “Consolidated
EBITDA” by deleting “$56,000,000” in clause (g) thereof and inserting “$60,000,000” in its place; 
 (i) to
revise the defined term “Domestic EBITDA” by deleting “$56,000,000” in clause (g) thereof and inserting “$60,000,000” in its place; 
 (j) to revise the defined term “European Tax Restructuring” by deleting the phrase “dated November 2005” from clause
(ii) thereof, by adding the following new clause (ii) thereto: “(ii) Other Foreign Transfers related thereto and”, by renumbering existing clause (ii) thereof as clause (iii) thereof, and by deleting the phrase
“clause (i)” in new clause (iii) thereof and inserting the phrase “clauses (i) and (ii)” in its place; 
  

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 (k) to insert a new defined term immediately following the defined term “F-M Taiwan” as
follows: 
 “‘Federal-Mogul Corporation Pre-Emergence International Restructuring Plan’ shall mean the Federal-Mogul
Corporation Simplified Pre-Emergence International Restructuring Plan Updated October 27, 2006.”; 
 (l) to revise the defined term
“Final Order” by deleting the word “Existing” and inserting the word “JPM” in its place, and by inserting the word “Credit” immediately following the word “DIP”; 
 (m) to insert a new defined term immediately following the defined term “Foreign Subsidiary” as follows: 
 “‘French Restructuring’ shall mean (i) the conversion of Federal-Mogul S.A. into a société anonyme
simplifiée such that it becomes Federal-Mogul S.A.S., (ii) the conversion of Federal-Mogul Automotive France, S.A. into a société anonyme simplifiée such that it becomes Federal-Mogul Automotive France, S.A.S.,
(iii) the sale by Federal-Mogul Ignition Company of Federal-Mogul Automotive France, S.A.S. to Federal-Mogul S.A.S. in exchange for Intercompany Loans, (iv) the possible transfer of such Intercompany Loans by Federal-Mogul Ignition Company
to the Parent in exchange for cancellation of certain Intercompany Indebtedness, (v) the merger of Federal-Mogul Automotive France, S.A.S with and into Federal-Mogul S.A.S, (vi) the contribution to the equity of Federal-Mogul S.A.S. by
Federal-Mogul Ignition Company, or if the transfer referred to in clause (iv) above has taken place, by the Parent, of the Intercompany Loans referred to in clause (iii) above, (vii) related Other Foreign Transfers and
(viii) such other transactions including those contemplated in the Federal-Mogul Corporation Pre-Emergence International Restructuring Plan that are incidental to those contained in clauses (i) through (vii) for the purpose of
effecting the above described transactions; provided that no such transaction or series of transactions described in the preceding clauses shall have the effect of reducing the direct or indirect equity interest therein pledged pursuant to
the Loan Documents or the value thereof or otherwise adversely affect the collateral position of the Lenders with respect thereto or subject the same to additional or increased intervening claims.”; 
 (n) to revise the defined term “Intercompany Loan Notes Restructuring” by inserting the phrase “or the Excluded Subsidiaries”
immediately following the word “Borrowers” at the end of clause (i) thereof, by inserting the phrase “or the Excluded Subsidiaries” immediately following the first appearance of the word “Borrowers” in clause
(ii) thereof, and by inserting the phrase “, which equity in such obligor company may be cancelled in part” at the end of clause (iii)(D) thereof; 
  

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 (o) to revise the defined term “Italy Restructuring” by deleting the phrase
“Federal-Mogul Holding Italy S.r.L.” that appears beginning in the seventh line thereof and inserting the phrase “a new Non-Debtor Foreign Subsidiary Holding Company” in its place; 
 (p) to insert a new defined term immediately following the defined term “Loan Documents” as follows: 
 “‘Luxembourg Holdco’ shall mean that certain Foreign Subsidiary created in connection with the European Tax Restructuring and
described on page 5 of the Federal-Mogul Corporation Pre-Emergence International Restructuring Plan.”; 
 (q) to revise the defined term
“Maturity Date” by deleting the phrase “December 9, 2006” and inserting the phrase “July 1, 2007” in its place; 
 (r) to revise the defined term “Mexican Holdco” by inserting the word “either” immediately following the word “mean” and by inserting the phrase “, or the use of an existing Excluded Subsidiary
incorporated under the laws of one of the states of the United States for such purpose” at the end thereof; 
 (s) to revise the defined
term “Mexican Restructuring” by inserting the phrase “if not an existing entity” at the end of clause (i) thereof, by inserting a new clause (iv) immediately after the phrase “Mexican Holdco” appearing
on the eighth line thereof: “(iv) the transfer by Federal-Mogul Canada Limited of its equity interest in Servicos de Componentes Automotrices S.A., a Mexican company, to Mexican Holdco in exchange for equity interests in Mexican Holdco,”,
by renumbering existing clause (iv) thereof as clause (v) thereof, by renumbering existing clause (v) thereof as clause (vi) thereof, by inserting the phrase “in accordance with the European Tax Restructuring,” at the
beginning of new clause (vi), by deleting the phrase “Federal-Mogul Investments B.V., (v) the merger of Mexican Holdco with and into Federal-Mogul Investments B.V. and” appearing at the end of new clause (vi) and inserting the
phrase “Dutch Co-op and” in its place, by renumbering existing clause (vi) thereof as clause (vii) thereof, by deleting the phrase “and (v)” after the phrase “(iv)” in new clause (vii) thereof and
inserting the phrase “, (v) and (vi)” in its place, and by inserting the phrase “; provided that no transaction or series of transactions described in the preceding clauses shall have the effect of reducing the direct or
indirect equity interest therein pledged pursuant to the Loan Documents or the value thereof or otherwise adversely affect the collateral position of the Lenders with respect thereto or subject the same to additional or increased intervening
claims” at the end of new clause (vii) thereof; 
 (t) to revise the defined term “Obligations” by deleting
“$30,000,000” in clause (z) thereof and inserting “$100,000,000” in its place; 
 (u) to insert a new defined term
immediately following the defined term “Other Currency” as follows: 
  

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 “‘Other Foreign Transfers’ shall mean the authority to, where tax efficient,
transfer (by way of dividend, sale or other means) second or third tier Non-Debtor Foreign Subsidiaries to the Parent or another Borrower or Excluded Subsidiary organized under the laws of one of the states of the United States, followed by the
contribution of the equity interests in such Non-Debtor Foreign Subsidiaries to one of the Non-Debtor Foreign Subsidiary Holding Companies described in the European Tax Restructuring in exchange for equity interests in such Non-Debtor Foreign
Subsidiary Holding Company in order to consolidate ownership of such Non-Debtor Foreign Subsidiaries; provided that no such transaction shall have the effect of reducing the direct or indirect equity interest therein pledged pursuant to the
Loan Documents or the value thereof or otherwise adversely affect the collateral position of the Lenders with respect thereto or subject the same to additional or increased intervening claims.”; 
 (v) to revise the defined term “Permitted Investments” by deleting the word “Closing” in clause (h) thereof and inserting
the word “Amendment” in its place, by deleting the word “and” at the end of clause (h) thereof, by deleting the word “Closing” in clause (i) thereof and inserting the word “Amendment” in its place,
by deleting the word “Closing” in clause (j) thereof and inserting the word “Amendment” in its place, by deleting “$40,000,000” in clause (j) thereof and inserting the phrase “$70,000,000 on or after the
Amendment Date” in its place, by deleting “$30,000,000” in clause (l) thereof and inserting “€10,000,000 on or after the Amendment Date” in its place, by renumbering existing clause (m) as clause (q), and by
inserting the following new clauses after clause (l): 
 “(m) investments or additional investments, not to exceed
$20,000,000 in the aggregate, in connection with the establishment of a technical center in Pudong-Shanghai, China;” 
 “(n) additional Investments, not to exceed $25,000,000 in the aggregate, in connection with (i) existing or new operations of the Parent and its Subsidiaries in China and (ii) the transfer of machinery and equipment having a
fair market value of an amount not to exceed $10,000,000 from the Parent’s St. Louis, Missouri drum and rotor facility to a facility located in China;” 
 “(o) additional Investments by the Parent or any of its Subsidiaries in connection with the Anticipated Japanese Consolidation in an
amount not to exceed $10,000,0000;” and 
 “(p) additional investments made by the Parent or any of its Subsidiaries
in the form of (i) capital contributions to one or more Subsidiaries organized under the laws of Brazil and/or (ii) the forgiveness of Indebtedness (A) owing by one or more Subsidiaries organized under the laws of Brazil to the Parent
or any of its Subsidiaries or (B) purchased from one or more Subsidiaries 

  

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organized under the laws of Brazil by the Parent or any of its Subsidiaries, in an aggregate amount not to exceed $20,000,000; and”; 
 (w) to revise the defined term “Permitted Liens” by renumbering clause (viii)(x) as clause (viii)(A), by deleting “$15,000,000”
in new clause (viii)(A) and inserting “$25,000,000” in its place, by inserting a new clause (viii)(B) as follows: “Indebtedness of Non-Debtor Foreign Subsidiaries owed to Persons other than Affiliates, incurred pursuant to
Section 6.03(xv),” by renumbering clause (viii)(y) as clause (viii)(C), by renumbering clause (viii)(z) as clause (viii)(D), by deleting the phrase “derivatives traders” in clause (x) and inserting the phrase “hedging
counterparties” in its place, by deleting “$15,000,000” in clause (x) and inserting “$25,000,000” in its place, by deleting “and” at the end of clause (xxiii), by inserting the following new clauses:

 “(xxiv) Liens on the assets or equity of a joint venture securing Indebtedness incurred to satisfy the Joint Venture
Put Obligation relating to such joint venture, provided that such Indebtedness is permitted by Section 6.03(xv)”; 
 “(xxv) Liens on assets of any Person which becomes a Foreign Subsidiary subsequent to the Amendment Date to secure Indebtedness of such Person in an aggregate amount not to exceed $90,000,000 at any time, provided that such
Indebtedness (x) is otherwise permitted under this Agreement and (y) was in existence at the time such Person became a Foreign Subsidiary and was not incurred in contemplation thereof”; 
 “(xxvi) Liens on assets of any Non-Debtor Foreign Subsidiary securing Indebtedness permitted by Section 6.03(xiv),”; and

 “(xxvii) Liens consisting of deposits with hedging counterparties as may be required pursuant to the terms of the
International Swap Dealers Association Master Agreement(s) executed in connection with the Borrowers’ hedging of all or a portion of the interest rate risk relating to the Indebtedness that will be required to enable the Borrowers to terminate
the Cases by consummating a plan of reorganization, in an aggregate amount not to exceed at any time $50,000,000 and”; 
 by renumbering clause
(xxiv) as clause (xxviii), and by deleting “(xxiii)” from new clause (xxviii) and inserting “(xxvii)” in its place. 
 (x) to revise the defined term “Restricted Subsidiaries” by deleting “Blocker BV, Spanish ETVA” from clause (i) and inserting “Luxembourg Holdco” in its place and by inserting
“(including one or more limited liability companies 

  

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organized under the laws of one of the states of the United States of America)” in clause (ii)(x) immediately following “Company”; 

(y) to revise the defined term “Restricted Subsidiary Prohibited Indebtedness” by deleting the existing definition in its entirety and
inserting the following new definition in its place: “shall mean (i) Indebtedness owed by any Restricted Subsidiary to any Person other than (i) the Parent or (ii) another Subsidiary of the Parent which is either (x) a
Borrower or (y) another Subsidiary, but in the case of (y) only if the incurrence of such Indebtedness would not have the effect of reducing the value of the equity interest of the incurring Restricted Subsidiary directly or indirectly
pledged pursuant to the Loan Documents or otherwise adversely affect the collateral position of the Lenders with respect to the incurring Restricted Subsidiary or subject the same to additional or increased intervening claims.”; 
 (z) to delete the defined term “Spanish ETVA”; 
 (aa) to insert a new defined term immediately following the defined term “U.K. Administrators” as follows: 
 “‘U.K. Dissolution’ shall mean the winding up or striking off of (x) those U.K. Subsidiaries listed on Schedule 1.02 hereto or (y) any other U.K. Subsidiary provided that the gross
assets of any other U.K. Subsidiary which is struck off (as shown in the “High” valuation of any liquidation analysis produced by Kroll Limited on or about the date of its emergence from U.K. Administration) is less than £10,000.

 (bb) to revise the defined term “U.K. Subsidiaries” by deleting the word “are” that appears in the third line
thereof and inserting the phrase “were as of the Closing Date (i)” in its place, and by deleting the word “are” in the fifth line thereof and inserting the phrase “(ii)” in its place; and 
 (cc) to insert a new defined term immediately following the defined term “Wagner Brake Fluid Divestiture” as follows: 
 “‘Wagner Lighting Divestiture’ shall mean an Asset Sale consisting of the sale by the Parent and its Subsidiaries of certain assets
located in the United States related to the Wagner Lighting Group, including manufacturing equipment related thereto but excluding the sale of the “Wagner” brand.” 
 Section 3. Amendment of Section 2.03 of the Credit Agreement. Section 2.03 of the Credit Agreement is hereby amended as follows:

 (a) to revise clause (a)(B)(i) by deleting “$375,000,000” and inserting “$100,000,000” in its place; 
  

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 (b) to revise the first sentence of clause (h) by deleting “$375,000,000” and inserting
“$100,000,000” in its place; and 
 (c) to revise the first sentence of clause (i) by deleting “$375,000,000” and
inserting “$100,000,000” in its place. 
 Section 4. Amendment of Section 2.20 of the Credit Agreement.
Section 2.20 of the Credit Agreement is hereby amended by deleting the word “that” from the third line thereof, by deleting the word “letter” from the third line thereof and inserting the word “letters” in its
place, by inserting the phrase “and October 23, 2006” immediately after the phrase “October 25, 2005”, and by inserting the phrase “collectively,” at the beginning of the parenthetical in the fourth line thereof.

 Section 5. Amendment of Section 3.04 of the Credit Agreement. Section 3.04 of the Credit Agreement is hereby amended
by deleting “2003” in the fourth line thereof and inserting “2004” in its place, by deleting each other occurrence therein of “2004” and inserting the word “2005” in its place, by deleting each preexisting
occurrence therein of “2005” and inserting the word “2006” in its place, by inserting the phrase “and September 30, 2006” at the end of the first sentence thereof, by deleting the word “June” in the
second to last line thereof and inserting the word “September” in its place, and by deleting the phrase “or otherwise disclosed to the Lenders in the Confidential Information Memorandum” at the end thereof. 
 Section 6. Amendment of Section 3.06 of the Credit Agreement. Section 3.06 of the Credit Agreement is hereby amended by deleting the
phrase “or their Subsidiaries” in the second line thereof. 
 Section 7. Amendment of Section 5.01(p) of the Credit
Agreement. Section 5.01(p) of the Credit Agreement is hereby amended by deleting the phrase “derivatives trader” in the third line thereof and beginning at the end of the fourth line thereof and inserting the phrase “hedging
counterparty” in its place. 
 Section 8. Amendment of Section 5.08 of the Credit Agreement. Section 5.08 of the
Credit Agreement is hereby amended by deleting the phrase “Closing Date” in the second line thereof and inserting the phrase “Amendment Date” in its place. 
 Section 9. Amendment of Section 5.09 of the Credit Agreement. Section 5.09 of the Credit Agreement is hereby amended by deleting the
word “and” at the end of clause (ii) thereof, by renumbering clause (iii) thereof as clause (iv) thereof, by inserting a new clause (iii) thereof: “(iii) as soon as practicable and in any event within four
(4) Business Days after any sale or disposition outside the ordinary course of business (including by way of casualty or condemnation) of Accounts or Inventory comprising part of the Borrowing Base, and” and by inserting the phrase
“(which, in the case of a sale or disposition described in clause (iii), shall be 

  

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calculated to give effect to such sale or disposition)” immediately following the word “Base” in the twelfth line thereof. 
 Section 10. Amendment of Section 6.02 of the Credit Agreement. Section 6.02 of the Credit Agreement is hereby amended by inserting
the phrase “the U.K. Dissolution,” immediately following the phrase “Permitted Dissolution,” in the second line thereof. 
 Section 11. Amendment of Section 6.03 of the Credit Agreement. Section 6.03 of the Credit Agreement is hereby amended as follows: 
 (a) to revise clause (ii)(A) by inserting the word “DIP” immediately following the word “Existing” in the eighth line thereof; 
 (b) to revise clause (ii)(B) by deleting the word “Closing” and inserting the word “Amendment” in its place; 
 (c) to revise clause (vii) by deleting the phrase “except for any Restricted Subsidiary Prohibited Indebtedness” at the beginning thereof
and by deleting “$435,000,000” in each place that it appears in subclause (B)(x) thereof and inserting “$470,000,000” in its place; 
 (d) to revise clause (xi) by deleting word “or” appearing immediately after the phrase “Eurofriction Investment” and inserting a comma in its place, and by inserting the phrase “or the
French Restructuring” at the end thereof; 
 (e) to revise clause (xii) by inserting the phrase “and in connection with the
Company Voluntary Arrangements” immediately following the phrase “U.K. Settlement Agreement;; 
 (f) to renumber clause
(xiii) as clause (xvi); 
 (g) to insert the following new clauses (xiii), (xiv) and (xv): 
 “(xiii) Indebtedness incurred by a Non-Debtor Foreign Subsidiary, the proceeds of which are used exclusively to repay Indebtedness of
another Non-Debtor Foreign Subsidiary;”; 
 “(xiv) Indebtedness incurred by a Non-Debtor Foreign Subsidiary in
connection with (A) the Anticipated Japanese Consolidation in an amount not to exceed $10,000,000 and (B) the Parent’s and its Subsidiaries’ operations in China (including working capital needs and capital improvements related to
the Parent’s and its Subsidiaries’ operations in China) in an aggregate principal amount not to exceed $10,000,000;”; 
  

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 “(xv) Indebtedness incurred by a Non-Debtor Foreign Subsidiary to satisfy a Joint
Venture Put Obligation, in an amount not exceeding the borrowing capacity of the related joint venture at the time such Joint Venture Put Obligation is satisfied (as determined by the Parent in good faith); and”; 
 (h) and by deleting clause (xvi) thereof and inserting the following new clause (xvi) in its place: 
 “(xvi) other Indebtedness not included in clauses (i) through (xvi) in an amount not to exceed $10,000,000; provided
that no Indebtedness incurred in reliance on the exceptions provided in clauses (v), (vii), (xi), (xiii), (xiv) or (xv) shall constitute Restricted Subsidiary Prohibited Indebtedness. 
 Section 12. Amendment of Section 6.04 of the Credit Agreement. Section 6.04 of the Credit Agreement is hereby amended by inserting
the following three additional rows at the end of the table contained therein: 
  

				
	 12/31/2006
	  	$	80,000,000
	 03/31/2007
	  	$	80,000,000
	 06/30/2007
	  	$	80,000,000

 Section 13. Amendment of Section 6.05 of the Credit Agreement. Section 6.05
of the Credit Agreement is hereby amended by inserting the following three additional rows at the end of the table contained therein: 
  

							
	 12/31/2006
	  	$	610,000,000	  	$	200,000,000
	 03/31/2007
	  	$	610,000,000	  	$	200,000,000
	 06/30/2007
	  	$	610,000,000	  	$	200,000,000

 Section 14. Amendment of Section 6.06 of the Credit Agreement. Section 6.06
of the Credit Agreement is hereby amended by deleting the phrase “Closing Date” appearing in the seventh line thereof and inserting the phrase “Amendment Date” in its place, by renumbering existing clause (iv) as new clause
(v), by inserting a new clause (iv) thereof: “(iv) for any guaranty of payment obligations incurred by employees of the Borrowers for travel and entertainment expenses in the ordinary course of business,”, by renumbering existing
clauses (v), (vi), (vii), (viii), (ix) and (x) as new clauses (vi), (vii), (viii), (ix), (x) and (xii) respectively, by inserting the phrase “and the Company Voluntary Arrangements” immediately following the phrase
“U.K. Settlement Agreement in the renumbered clause (vi) thereof, and by inserting the following new clause (xi): 
 “(xi) for any guarantee by any Person which becomes a Foreign Subsidiary on or after the Amendment Date; provided that 
  

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 (x) such guarantee was in existence at the time such Person became a Foreign Subsidiary
and was not created in contemplation thereof and (y) the aggregate outstanding principal amount of the guaranteed obligations permitted by this clause (xi) shall at no time exceed $5,000,000 and”. 
 Section 15. Amendment of Section 6.08 of the Credit Agreement. Section 6.08 of the Credit Agreement is hereby amended by deleting
the phrase “$1,000,000 per annum” in clause (v) thereof and inserting the phrase “(x) $10,000,000 in any calendar year with respect to Minority Interests in Foreign Subsidiaries and (y) $2,000,000 in any calendar year with
respect to Minority Interests in Domestic Subsidiaries” in its place, by deleting the word “or” immediately following the phrase “Intercompany Loan Notes Restructuring” in clause (vii) thereof and inserting a comma in
its place, by deleting the comma after the phrase “Italy Restructuring” in clause (vii) thereof and by inserting the phrase “or the French Restructuring,” in its place, by inserting a new clause (ix) thereof: “(ix)
pursuant to Other Foreign Transfers, or” and by inserting a new clause (x) thereof: “(x) in connection with the U.K. Dissolution”. 
 Section 16. Amendment of Section 6.09 of the Credit Agreement. Section 6.09 of the Credit Agreement is hereby amended by inserting the phrase “the U.K. Dissolution,” immediately
following the phrase “Permitted Dissolution” in the second line thereof, by deleting the word “or” immediately following the phrase “Eurofriction Investment” in the fifth line thereof and inserting a comma in its place,
and by inserting the phrase “and the French Restructuring, and pursuant to the Company Voluntary Arrangements” immediately following the phrase “Asian Investment” in the fifth line thereof. 
 Section 17. Amendment of Section 6.10 of the Credit Agreement. Section 6.10 of the Credit Agreement is hereby amended as follows:

 (a) to revise clause (xvi) thereof by deleting “$36,000,000” from the proviso thereof and inserting “$70,000,000”
in its place; 
 (b) to revise clause (xvii) thereof by renumbering subclauses (x) and (y) within the parenthetical at the end
thereof as subclauses (w) and (x), respectively, by inserting a new subclause (y) within that same parenthetical as follows: “(y) in the case of the Wagner Lighting Divestiture, in an amount not to exceed 50% of the total
consideration for the assets sold in such Asset Sale”, and by deleting the phrase “during the term of this Agreement” appearing at the end of subclause (z) and inserting the clause “on or after the Amendment Date” in
its place; 
 (c) to revise clause (xxi) thereof by deleting the phrase “(except for any Restricted Subsidiary Prohibited
Indebtedness)”, by deleting the word “or” immediately following the phrase “Italy Restructuring” and inserting a comma in 

  

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its place, and by adding the phrase “or the French Restructuring” immediately following the phrase “Asian Investment”; 
 (d) to revise clause (xxv) thereof by deleting the word “or” after the phrase “Foreign Subsidiary” at the end of subclause
(b) thereof and inserting the phrase “, (c) a U.K. Subsidiary in another U.K. Subsidiary in connection with the Company Voluntary Arrangements or (d)” in is place; 
 (e) to revise clause (xxx) thereof by deleting the word “and” at the end thereof; 
 (f) to renumber existing clause (xxxi) as clause (xxxiii); 
 (g) by inserting a new clause (xxxi) thereof as follows: “investments pursuant to Other Foreign Transfers;”; 
 (h) by inserting a new clause (xxxii) thereof as follows: “Intercompany Loans from T&N to any other U.K. Subsidiary or from any U.K. Subsidiary to T&N in the ordinary course of business and solely in
connection with the establishment and operation of the consolidated cash management system of the U.K. Subsidiaries; and”; 
 (i) to
revise new clause (xxxiii) by deleting “(xxx)” and inserting “(xxxii)” in its place; and 
 (j) by inserting the
following new sentence immediately following new clause (xxxiii): “For the avoidance of doubt, if an Investment in the form of an acquisition of an entity which thereby becomes a Subsidiary is permitted under this Section 6.10, the
Investments held by such acquired entity on the date such acquired entity becomes a Subsidiary and not created in contemplation of such acquisition shall be permitted under this Section 6.10 and shall not be separately tested for compliance
with clauses (i) through (xxxiii) of the preceding sentence.” 
 Section 18. Amendment of Section 6.11 of the
Credit Agreement. Section 6.11 of the Credit Agreement is hereby amended as follows: 
 (a) to revise clause (vi)(y) thereof by
deleting “$435,000,000” and inserting “$470,000,000” in its place; 
 (b) to revise clause (viii) thereof by deleting
“$28,000,000” and inserting “$35,000,000” in its place, and by deleting the phrase “during the term of this Agreement” and inserting the phrase “at any time on or after the Amendment Date” in its place;

 (c) to revise clause (ix) thereof by deleting the phrase “during the term of this Agreement” and inserting the phrase
“at any time on or after the Amendment Date” in its place; 
  

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 (d) to revise clause (xiii) thereof by deleting the phrase “the China Restructuring, the
European Tax Restructuring, the Mexican Restructuring, the Intercompany Loan Notes Restructuring, the Italy Restructuring or the Asian Investment” and inserting the phrase “Investments permitted by Section 6.10” in its place;

 (e) to renumber existing clause (xvii) as clause (xix) and remove the period at the end thereof; and 
 (f) to insert new clauses (xvii), (xviii), (xx) and (xxi) as follows: 
 “(xvii) sales or dispositions of the equity interests in Non-Debtor Foreign Subsidiaries pursuant to Other Foreign Transfers”; 
 “(xviii) sales or dispositions of assets pursuant to the French Restructuring”; 
 “(xx) the Wagner Lighting Divestiture and”; and 
 “(xxi) in connection with the U.K. Dissolution or the Company Voluntary Arrangements.” 
 Section 19. Amendment of Section 6.13 of the Credit Agreement. Section 6.13 of the Credit Agreement is hereby amended by deleting the phrase “existing on the Closing Date and” in the second line thereof and
by inserting the phrase “or the Company Voluntary Arrangements.” immediately following the phrase “U.K. Administration” at the end thereof; 
 Section 20. Amendment of Section 7.01(e) of the Credit Agreement. Section 7.01(e) of the Credit Agreement is hereby amended by inserting the phrase “(other than with respect to the U.K.
Subsidiaries)” immediately following the word “dismissed” in the first line thereof and by inserting the phrase “(other than with respect to the U.K. Subsidiaries)” immediately following the phrase “Bankruptcy Code or
otherwise” in the fourth line thereof; 
 Section 21. Amendment of Section 7.01(k) of the Credit Agreement.
Section 7.01(k) of the Credit Agreement is hereby amended by inserting the phrase “(not being a judgment given or order made in connection with any company voluntary arrangement proposed by the UK Administrators pursuant to the terms of
the UK Settlement Agreement or any plan of reorganization proposed by the Debtors (whether alone or with others))” immediately following the word “order” in the first line thereof. 
 Section 22. Amendment of Section 7.01(m) of the Credit Agreement. Section 7.01(m) of the Credit Agreement is hereby amended by
deleting clause (A) thereof in its entirety and inserting the following new clause (A) in its place: 
  

 13 

 “(A) Prepetition Payments to be made to creditors of the UK Subsidiaries or to fund any reserve or
trust for the benefit of any such creditors in accordance with the terms of any company voluntary arrangement proposed by the UK Administrators pursuant to the terms of the UK Settlement Agreement or any plan of reorganization proposed by the
Debtors (whether alone or with others),”, 
 by deleting the word “or” at the end of clause (B)(xiv) thereof, by inserting the word
“or” at the end of clause (B)(xv) thereof, and by inserting a new clause (B)(xvi) as follows: 
 “(xvi) payments by a U.K.
Subsidiary (1) to a Borrower, (2) to a Foreign Subsidiary or (3) to another U.K. Subsidiary, of principal or interest on, or amounts otherwise on account of, Intercompany Loans made to such U.K. Subsidiary, provided that
payments pursuant to subclause (2) shall be limited to an aggregate of $30,000,000 on or after the Amendment Date;”. 
 Section 23. Amendment of Section 10.18 of the Credit Agreement. Section 10.18 of the Credit Agreement is hereby amended by deleting the phrase “other than Federal-Mogul, S.A. – France” from the fourth
line thereof. 
 Section 24. Amendment of Schedules to the Credit Agreement. The following schedules to the Credit Agreement are
hereby amended as follows: 
 (a) Schedule 1.02 – U.K. Subsidiaries Subject to Dissolution is hereby inserted in the form attached
as Exhibit 1.02 hereto; 
 (b) Schedule 3.06 – Liens is hereby amended to include the additional information contained in Exhibit
3.06 hereto; 
 (c) Schedule 6.03 – Existing Indebtedness of Foreign Subsidiaries is hereby amended to include the additional
information contained in Exhibit 6.03 hereto; 
 (d) Schedule 6.06 – Existing Guarantees is hereby amended to include the
additional information contained in Exhibit 6.06 hereto; 
 (e) Schedule 6.10 – Existing Joint Venture Investments is hereby
amended to include the additional information contained in Exhibit 6.10 hereto; 
 (f) Schedule 6.11 – Surplus Real Estate Assets
Eligible for Sale is hereby deleted and replaced in its entirety by the information contained in Exhibit 6.11 hereto; and 
 (g) Schedule
6.13 – Borrower Transaction Restrictions is hereby amended to include the additional information contained in Exhibit 6.13 hereto. 
  

 14 

 Section 25. Amendment of the Security and Pledge Agreement. The first paragraph after clause
(v) of Section 1 of the Security and Pledge Agreement dated as of November 23, 2005, by and among Federal-Mogul Corporation, a Michigan corporation, and each of its direct or indirect subsidiaries party to the Credit Agreement and the
Administrative Agent (in its capacity as administrative agent under the Credit Agreement and as collateral agent under the Security and Pledge Agreement), is hereby amended by deleting the phrase “(other than Federal-Mogul, S.A. –
France)” that appears beginning in the fourth line thereof, by deleting the word “and” that appears at the end of subclause (iv) thereof, by inserting the word “and” at the end of subclause (v) thereof, and by
inserting a new subclause (vi) as follows: 
 “(vi) any pledge by a Grantor of any equity interests in a Non-Debtor Foreign
Subsidiary that results solely from the acquisition by such Grantor of such equity interests in a transaction that is part of an Other Foreign Transfer shall, at the time that such equity interests are contributed or otherwise transferred to a
Non-Debtor Foreign Subsidiary Holding Company by such Grantor, be released without further action of any kind and, upon such release, the Administrative Agent shall promptly return to the applicable Grantor any certificates in its possession
representing such equity interests.” 
 Section 26. Representations. Each Borrower represents and warrants that (i) all
the representations and warranties contained in the Loan Documents are true and correct in all material respects as of the date of effectiveness of this Amendment (except to the extent that such representations and warranties relate to an earlier
date, in which case such representations and warranties are true and correct as of such earlier date) and (ii) no Default will have occurred and be continuing under the Credit Agreement on the date of effectiveness of this Amendment.

 Section 27. Changes in Lenders and Participations. With effect from and including the date this Amendment becomes effective in
accordance with Section 28 hereof: 
 (a) Each Person listed in Annex A hereto which is not a party to the Credit Agreement prior to the
effectiveness of this Amendment (a “New Lender”) shall become a Lender party to the Credit Agreement, and a Revolving Credit Lender if such New Lender has a Revolving Credit Commitment set forth in Annex A and/or a Term Lender if
such New Lender has a Term Loan Amount set forth in Annex A. 
 (b) Each Revolving Credit Lender listed in Annex A shall have a Revolving
Credit Commitment in the applicable amount set forth in Annex A, which shall replace Annex A to the Credit Agreement with respect to the Revolving Credit Lenders and their Revolving Credit Commitments. 
  

 15 

 (c) Each New Lender which is a Term Lender shall make Term Loans to the Borrowers in an aggregate amount
equal to the amount set forth opposite its name under the column Term Loan Amount in Annex A, such new Term Loans to be allocated ratably among all outstanding Borrowings of Term Loans and to be deemed part of such outstanding Borrowings.

 (d) Each New Lender which is a Revolving Credit Lender shall make new Revolving Credit loans to the Borrowers in an amount such that, after
giving effect thereto, the aggregate amount of such Loans shall bear the same relationship to the Revolving Credit Commitment of such New Lender as the outstanding Revolving Credit Loans of the other Revolving Credit Lenders bear to their Revolving
Credit Commitments, such new Revolving Credit Loans to be allocated ratably among all outstanding Borrowings of Revolving Credit Loans and to be deemed part of such outstanding Borrowings. 
 (e) The participations of the Revolving Credit Lenders in outstanding Letters of Credit and their obligations with respect to outstanding Swing Line Loans
shall be redetermined on the basis of the Revolving Credit Commitments set forth in Annex A. 
 (f) Any Lender party to the Agreement but not
listed in Annex A (a “Departing Lender”) shall cease to be a Lender party to the Credit Agreement, shall cease to have any Commitment under the Credit Agreement, any participation in outstanding Letters of Credit or any obligation
with respect to outstanding Swing Line Loans, and all accrued fees and other amounts payable under the Credit Agreement for the account of such Lender shall be due and payable on such date; provided that the provisions of Sections 2.15, 2.16,
2.19, 10.04 and 10.05 of the Agreement shall continue to inure to the benefit of each such Lender. 
 (g) Any Lender which is not a New
Lender, but whose Revolving Credit Commitment and/or Term Loan Amount is increased in Annex A above that previously in effect shall be deemed a New Lender for purposes of clauses (c) and (d) to the extent of such increase, and any such
Lender whose Revolving Credit Commitment or Term Loan Amount is so decreased shall be deemed a Departing Lender for purposes of Section 28(b) hereof to the extent of such decrease. 
 Section 28. Effectiveness. This Amendment shall become effective on the date on which each of the following conditions precedent is met:

 (a) Execution. The Administrative Agent shall have received a counterpart hereof signed by each Borrower and Lenders comprising the
Super-majority Lenders. 
 (b) Payments to Departing Lenders. All Loans held by Departing Lenders shall have been prepaid in full,
together with all accrued interest thereon and all accrued fees and other amounts payable for the account of any Departing Lender, applying the proceeds of new Loans made pursuant to Section 27(c) and 

  

 16 

 
(d) of this Amendment. The Required Lenders hereby waive any requirement of prior notice of such prepayment. 
 (c) Approval Order. The Administrative Agent shall have received a certified copy of an order of the Bankruptcy Court in form satisfactory to the
Administrative Agent (the “Approval Order”) approving this Amendment and the Loan Documents as amended hereby, which Approval Order shall (i) be in full force and effect, (ii) not have been stayed, reversed, modified or
amended in any respect, except as approved by the Administrative Agent, in its sole discretion, (iii) approve or otherwise reaffirm the payment by the Borrowers of all of the Fees set forth in Sections 2.20, 2.21 and 2.22 of the Credit
Agreement as amended hereby and (iv) be entered with the consent or non-objection of a preponderance (as determined by the Administrative Agent in its sole discretion) of the secured creditors of any of the Borrowers under the Prepetition
Agreements; and, if the Approval Order is the subject of a pending appeal in any respect, neither the making of a Loan or Swing Line Loan nor the issuance of a Letter of Credit nor the performance by any of the Borrowers of any of their obligations
under the Loan Documents or under any other instrument or agreement referred to therein shall be the subject of a presently effective stay pending appeal. 
 (d) Opinion of Counsel. The Administrative Agent and the Lenders shall have received one or more favorable written opinion letters of counsel to the Borrowers, acceptable to the Administrative Agent,
substantially in the form of the opinion letters attached as Exhibit D to the Credit Agreement with reference to this Amendment and the Loan Documents as amended hereby. 
 (e) Payment of Fees. The Borrowers shall have paid to the Administrative Agent all fees then due under the Fee Letter (as defined after giving effect to this Amendment). 
 (f) Representations and Warranties. All representations and warranties contained in this Amendment and the other Loan Documents shall be true and
correct in all material respects on and as of such date except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct on and as of such earlier date. 
 (g) No Default. On such date no Event of Default or event which upon notice or lapse of time or both would constitute an Event of Default shall
have occurred and be continuing. 
 (h) Closing Documents. The Administrative Agent shall have received such evidence of the existence
of the Borrowers, the authority for and the validity of this Amendment, the satisfaction of the other conditions specified in this Section 28, and any other matters relevant hereto as the Administrative Agent may reasonably request, all
reasonably satisfactory in form and substance to the Administrative Agent. 
  

 17 

 Section 29. Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of the State of New York. 
 Section 30. Counterparts. This Amendment may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 Section 31. Effect on Credit Agreement and Security and Pledge Agreement. The execution, delivery and effect of this Amendment shall be limited precisely as written and shall not be deemed to (a) be a consent to any
waiver of any term or condition of, or to any amendment or modification of, any term or condition (except as specifically set forth herein) of the Credit Agreement, the Security and Pledge Agreement or any other of the Loan Documents or
(b) prejudice any right, power or remedy which the Administrative Agent or any Lender now has or may have in the future under or in connection with the Credit Agreement or any of the other Loan Documents. 
 [signature pages follow] 
  

 18 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date
first above written. 
  

			
	BORROWERS and GRANTORS:
	
	FEDERAL-MOGUL CORPORATION
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	J.W.J. HOLDINGS INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	CARTER AUTOMOTIVE COMPANY, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	President and Treasurer
	
	 FEDERAL-MOGUL VENTURE CORPORATION

		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer

			
	FEDERAL-MOGUL GLOBAL PROPERTIES
INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	President and Treasurer

			
	
	FEDERAL-MOGUL WORLD WIDE, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	President and Treasurer

			
	
	FELT PRODUCTS MFG. CO.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer

			
	
	FEDERAL-MOGUL U.K. HOLDINGS INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer

			
	
	FEDERAL-MOGUL GLOBAL INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer

			
	T&N INDUSTRIES INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	FERODO AMERICA, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	GASKET HOLDINGS, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	FEDERAL-MOGUL MYSTIC, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	FEDERAL-MOGUL PRODUCTS INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	President and Treasurer
	
	FEDERAL-MOGUL FX, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	President

			
	FEDERAL-MOGUL POWERTRAIN, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	FEDERAL-MOGUL PISTON RINGS, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	MCCORD SEALING, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	FEDERAL-MOGUL DUTCH HOLDINGS, INC.
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer
	
	FEDERAL-MOGUL IGNITION COMPANY
		
	By:	 	  

	Name:	 	David A. Bozynski
	Title:	 	Vice President and Treasurer

			
	 CITICORP USA, INC., as Administrative Agent and Swing Line Lender

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 CITIBANK, N.A., as Fronting Bank

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 CITICORP USA, INC., as Administrative Agent and Collateral Agent

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

			
	LENDERS:
	
	CITICORP USA, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

			
	[LENDER], as [Revolving Credit][Term] Lender
		
	By:	 	  

	Name:	 	
	Title:Employment Contract

 EXHIBIT 10.32 
 ENGLISH TRANSLATION 
 FEDERAL MOGUL 
 EMPLOYMENT CONTRACT 
 BETWEEN THE UNDERSIGNED: 
 The company FEDERAL MOGUL SERVICES, EURL with capital of 7,625 million Euros, whose headquarters is located at avenue des Temps Modernes, Z.I., 86360 Chasseneuil du Poitou, 
 Registered with the Poitiers business registry under number B 400 896 114, URSSAF number 086 000 000 114 226 151, APE code 741-G, 
 Represented by special delegation by Monsieur T. DUCAT, Director of Human Resources, 
 ON ONE HAND, 
 And: 
 Monsieur Jean BRUNOL, resident of
34-36 Boulevard Victor Hugo, 92200 Neuilly sur Seine, 
 ON THE OTHER HAND, 
 THE FOLLOWING HAS BEEN AGREED UPON. 
 Article 1 – Hiring 
 The Company hires Monsieur J. BRUNOL, who accepts, beginning on May 1, 2005, as Senior Vice President, Business and Operations Strategy. 
 This position grants Monsieur J. BRUNOL “Upper Executive” status. 
 [Handwritten initials] 
  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114 

 ENGLISH TRANSLATION 
  

 As part of his duties, Monsieur J. BRUNOL will provide services for various companies within the FEDERAL MOGUL Group;
and more specifically for the company FEDERAL MOGUL Corporation. 
 Monsieur J. BRUNOL will report directly to the President and Chief Executive Officer of
the FEDERAL MOGUL Group, Monsieur José Maria ALAPONT. 
 Article 2 – Place of Work 
 Monsieur J. BRUNOL will be based at: 
 The European office, Rue Jean Monet,
Parc Tertiare de la Croix, Compiègne 60472. 
 This location shall not constitute a substantial component of this contract, since Monsieur J.
BRUNOL’s duties will oblige him to travel quite frequently within France as well as elsewhere in the world. 
 It is, however, expressly agreed that any
transfer outside the area of employment; more specifically, outside the Paris metropolitan area, will be subject to the agreement of Monsieur J. BRUNOL. 
 Article 3 – Duration – Advance Notice 
 This contract is concluded for an indefinite duration. 
 The trial period has concluded favorably. 
 Reciprocal advance notice is set
at 6 months, barring serious error. 
 Article 4 – Obligation of Loyalty/Exclusivity 
 Monsieur J. BRUNOL will confine his professional activity to the service of the FEDERAL MOGUL Group. 
 Our Group may legitimately require that Monsieur BRUNOL’s professional activities are entirely confined to it. It is agreed that he may not, without the express permission of the President and CEO of the Group,
accept any other duty or conduct any other professional activity. 
 [Handwritten initials] 
  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114 

 ENGLISH TRANSLATION 
  

 Article 5 – Disclosure of Information 
 For the entire duration of this contract and after its termination, Monsieur J. BRUNOL may not, for any reason or in any manner, disclose any secrets or confidential information pertaining to FEDERAL MOGUL, its
distributors, its products, or its knowledge to any third party, or use the same for any purpose other than the performance of his duties. 
 Upon ceasing
his duties, Monsieur J. BRUNOL will return all documentation pertaining to FEDERAL MOGUL Group or its products, clientele, distributors, or knowledge that he may have in his possession to the Company. 
 Article 6 – Non-Competition Clause 
 The growth of the FEDERAL
MOGUL Group can only legitimately occur via the constant development of its business relationships in its various markets. 
 That is why, in case this
contract is broken for whatever reason and whichever of the parties is the one to initiate such action, Monsieur J. BRUNOL shall be prohibited, for the duration of one year (renewable once) after the effective date of his departure from the Company,
from working for any company with the same objective or activities as the FEDERAL MOGUL Group or that may act as competition to it. 
 He shall also be
prohibited, for the same duration, from creating, on his own account or that of a third party, directly or indirectly, a company having for its objective identical or similar activities to those of the FEDERAL MOGUL Group. 
 In case of violation of the above agreement, Monsieur J. BRUNOL will be liable to pay a penalty equal to the total salary received during his last year of employment
with the Company, without prejudice to any additional damages and additional interests. 
 The penalty shall be due to the Company within 8 days after notice
is given to Monsieur J. BRUNOL to cease his infraction via registered letter with acknowledgment of receipt, and will remain without effect and under fixed daily constraint equal to half of the last gross monthly salary paid to Monsieur J. BRUNOL.

 In return for his agreement not to compete with the Company, Monsieur J. BRUNOL will receive, for a period of 12 months after the end of the advance
notice period, a monthly fee equal to his last gross salary. 
 [Handwritten initials] 
  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114 

 ENGLISH TRANSLATION 
  

 Article 7 – Managing Executive 
 The importance of the mission and responsibilities entrusted to Monsieur J. BRUNOL, which involve a large measure of independence in the organization and management of his time in the fulfillment of his duties, as
well as a great deal of autonomy in decision-making, place him in the category of Managing Executive. 
 Consequently, Monsieur J. BRUNOL will receive a
fixed salary in return for the fulfillment of his duties, with no relationship between the amount of this salary and the time dedicated to it. Monsieur J. BRUNOL is not subject to the legal system of time worked. 
 Article 8—Salary 
 The gross annual salary paid to Monsieur J.
BRUNOL will be the sum of his fixed stipend, called the base salary, as defined in article 8-1 below, and the sums paid under the “Prime” title defined in article 8-5 of this contract. 
 This gross annual salary will serve as the basis for calculation of bonuses as defined in article 8-2 of this contract. 
 It will also serve as a reference point for the calculation of social schemes (retirement, contingency fund, etc). 
 This salary will be reviewed annually. 
 Article 8-1 – Fixed Stipend

 In compensation for the fulfillment of his duties, Monsieur J. BRUNOL will receive a fixed stipend called the base salary in an annual gross amount,
before deduction of the standard amounts for Social Security and other obligatory deductions, of 328,560 euros (three hundred twenty-eight thousand five hundred sixty euros), which will be paid in twelve monthly installments of 27,380 euros
(twenty-seven thousand three hundred eighty euros) each, for the first year. 
 [Handwritten initials] 
  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114 

 ENGLISH TRANSLATION 
  

 Article 8-2 – Variable Compensation 
 Monsieur J. BRUNOL will be able to receive an annual bonus based on 70% of his gross annual salary according to the rules defined each year by the Group, in return for the attainment of goals fixed each year.

 Monsieur J. BRUNOL will also be able to receive a specific bonus called the “Uplift Bonus” based on 35% of his gross annual salary according to
the rules defined each year by the Group. 
 According to the results obtained, each of these bonuses may be balanced by a multiplicative coefficient from 0
to 150%. 
 Article 8-2 – Special Bonus 
 Monsieur J.
BRUNOL will receive, upon signature of this contract, a special gross amount of 80,000 euros (eighty thousand euros gross). 
 This bonus will not comprise
part of the annual gross salary. 
 Article 8-4 – Company Car Fee 
 Monsieur J. BRUNOL will receive a gross fixed fee, called the “Company Car Fee”, equal to 4% of his gross annual salary. This fee will be paid monthly and in advance on the basis of an estimate of his gross
annual salary, and its amount will be standardized at the end of the year. 
 On the basis of the fixed stipend as mentioned in article 8-1 above, and the
estimate of the Premium for the year 2005 mentioned in article 8-5 below, this Company Car Fee is estimated for the year 2005 at 16,000 gross euros, or 1,334 euros gross per month. 
 This amount will be noted on his pay sheet; it will be subject to the social fees applicable to salary monies. 
 It will not
be included in the calculation of the variable remuneration elements defined in article 8-2 of this contract. 
 This fee can be replaced by the use of a
company car, in which case an amendment will be attached to this labor contract, and Monsieur J. BRUNOL will then be obligated to pay the social and fiscal fees related to the benefits naturally corresponding to the vehicle and its use. 

[Handwritten initials] 
  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114 

 ENGLISH TRANSLATION 
  

 Article 8-5 – Additional Salary for Foreign Travel 
 Taking into account the professional travel outside France to serve the needs and interests of the Company that will be required, as well as the specific dependencies
resulting from these trips and their frequency, Monsieur J. BRUNOL will receive a salary supplement (hereafter called the “Premium”) calculated as a percentage of his base daily salary. The applicable rates will be determined as follows:

  

			
	 Number of days worked abroad per year
	 	 Rate

	 0 to 9 days
	 	10%
	 10 to 25 days
	 	20%
	 26 to 45 days
	 	30%
	 46 to 60 days
	 	40%
	 61 to 130 days
	 	50%

 This method of calculation may be reviewed at the beginning of the calendar year. 
 This “Premium” will be paid in advance of each month’s payment in equal monthly segments and will be adjusted at the end of each calendar year.

 For the year 2005, the monthly amount of the Premium, up to and including November, will be 5,954 euros gross. Standardization according to the exact
number of days spent abroad during the year 2005 by Monsieur J. BRUNOL will be conducted during the month of December 2005. 
 The Premium will be subject to
the same social fees as the base salary, but will be listed on a specific line on the pay sheet under the heading “Expatriation Premium” and for the month of December under the heading “Expatriation Premium Standardization.”

 If the number of days spent abroad by Monsieur J. BRUNOL is less than the anticipated number, the surplus amount of the Premium will be considered as an
addition to the base salary and will be added to this for the purposes of the declaration of salary to the fiscal authorities. 
 In all cases, the Premium
ceiling will be 30% of the base salary. 
 The exact number of days spent abroad will be counted as the number of days spent outside metropolitan France,
with these days including the round-trip travel time for “major travel”. 
 [Handwritten initials] 
  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114 

 ENGLISH TRANSLATION 
  

 It is expressly agreed that Monsieur J. BRUNOL must work to the best of his ability to justify the number of days
spent abroad and the goal of his trips to the fiscal authorities. Barring this, Monsieur J. BRUNOL will be responsible for all taxes, expenditures, penalties, or fees that are imposed in case of recovery pertaining to payment of the Premium as
defined above. 
 Article 9 – Reimbursement of Expenses/Travel Insurance 
 The Company will reimburse Monsieur J. BRUNOL for all reasonable travel costs including hotel, restaurant, and representation costs that he incurs during the performance of his duties, upon presentation of
justification of same. 
 He will also be reimbursed for fuel costs related to the use of his vehicle during the performance of his professional duties as
well as the costs of insuring this vehicle under a “professional use liability” contract. 
 For his professional travel abroad, Monsieur J. BRUNOL
will receive coverage under a plan taken out by the Company from “Mondial Assistance” [Global Assistance]. 
 Article 10 – Mutual
Insurance/Contingency Fund/Retirement 
 Monsieur J. BRUNOL will receive mutual insurance and contingency fund coverage according to the Company system in
effect. 
 Monsieur J. BRUNOL will receive additional retirement benefits as granted to Upper Executives by the Company. 
 The monies falling under this additional category will not be received by him, however, until his 62nd year of life and will be prorated according to the number of years spent working for the company by Monsieur BRUNOL between
the signing of this contract and his 62nd year of life. 
 Article 11 – Internal Rules 
 Monsieur J. BRUNOL will respect and
comply with the rules in effect within the FEDERAL MOGUL Group and the company FEDERAL MOGUL SERVICES, his employer. 
 He agrees to inform the Company
without delay of any changes that take place in his personal situation (residence or family situation, etc). 
 [Handwritten initials]

  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114 

 ENGLISH TRANSLATION 
  

 Article 12 – Jurisdiction 
 This contract shall be subject to the jurisdiction of the French courts, which will preside according to French law. 
 So
done on April 20, 2005 
 In two original copies 
  

					
	 Monsieur Jean Brunol (1)
	 	For FEDERAL MOGUL SERVICES	  	
	[Handwritten signature]	 	By special delegation	  	
		 	T. DUCAT	  	
		 	[Handwritten signature]	  	

 (1) Signature preceded by the note “Read and approved – Agreed thereto.”

 [Handwritten initials] 
  

 FEDERAL MOGUL SERVICES 
 Administration: Bâtiment FINANCIAL SERVICES - Los lios Cordèes - 38 113 VEUREY VOIROIZE 
 Headquarters: 13 Avenue des Temps Modernes - BP 13 - 86 361 CHASSENEUIL-DU-POITOU 
 Telephone: +33 (0)4 78 53 76 34 - Fax: +33 (0)4
76 53 76 13 
 SARL with capital of 7,623m € - NAF 74 G - RCS Poitiers B 400 800 114

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