Document:

<PAGE>

                                                                    Exhibit 10.8

                               FIRST AMENDMENT TO
                               ------------------
               REVOLVING CREDIT, TERM LOAN AND GUARANTY AGREEMENT
               --------------------------------------------------

         This FIRST AMENDMENT TO REVOLVING CREDIT, TERM LOAN AND GUARANTY
AGREEMENT dated as of November 29, 2001 (the "First Amendment"), is entered into
                                              ---------------
by and among FEDERAL-MOGUL CORPORATION, a Michigan corporation ("Parent"), each
                                                                 ------
of the direct and indirect Domestic Subsidiaries of the Parent party to the
Agreement (as defined below) as borrowers (each, individually, a "Borrower" and
                                                                  --------
collectively, the "Borrowers"), JPMORGAN CHASE BANK, formerly known as The Chase
                   ---------
Manhattan Bank, a New York banking corporation, and each of the other commercial
banks, finance companies, insurance companies or other financial institutions or
funds from time to time party to the Agreement (as defined below) (the
"Lenders"), and JPMORGAN CHASE BANK, formerly known as The Chase Manhattan Bank,
 -------
as administrative agent (the "Administrative Agent") for the Lenders.
                              --------------------

                                   WITNESSETH:

         WHEREAS, the Borrowers, the Lenders and the Administrative Agent are
parties to that certain Revolving Credit, Term Loan and Guaranty Agreement dated
as of October 1, 2001, as amended (the "Agreement"), pursuant to which the
                                        ---------
Administrative Agent has made available to the Borrowers a revolving credit,
letter of credit and term loan facility in an aggregate principal amount not to
exceed $675,000,000; and

         WHEREAS, the Borrowers and the Lenders desire to amend and supplement
the Agreement to reflect certain modifications to the Agreement; and

         WHEREAS, subject to the terms and conditions set forth in Section 10.3
                                                                    -----------
of the Agreement, each Lender is entitled to assign to one or more Eligible
Assignees all or a ratable portion of its interests, rights and obligations
under the Agreement (including, without limitation, all or a portion of its
Commitment and the same portion of the related Loans at the time owing to it) by
executing and delivering an Assignment and Acceptance between such Lender and
such Eligible Assignee substantially in the form of Exhibit E to the Agreement;
                                                    ---------
and

         WHEREAS, pursuant hereto, JPMorgan Chase Bank, the sole Lender party to
the Agreement immediately prior to the effective date of this First Amendment
(in such capacity, the "Original Lender") wishes to assign to each of the
                        ---------------
financial institutions (other than itself) that is named on the Commitment
Schedule hereto (such financial institutions other than the Original Lender,
collectively the "New Lenders"), and each of the New Lenders wishes to assume, a
                  -----------
portion of the Original Lender's interests, rights and obligations under the
Agreement so that, after giving effect to this First Amendment, the respective
Commitments of the Original Lender and the New Lenders will be as set forth in
such Commitment Schedule; and

         WHEREAS, the Borrowers, the Original Lender, the New Lenders and the
Administrative Agent have determined that the execution and delivery of this
First Amendment to, among other things, effectuate a reallocation of the Total
Commitment among the Original Lender and the New Lenders will be more
expeditious and administratively efficient than the execution and delivery of
separate Assignments and Acceptances between the Original Lender and each of the
New Lenders; and

         WHEREAS, upon the occurrence of the Effective Date (as hereinafter
defined), each of the New Lenders shall become a party to the Agreement as a
Lender and shall have the

<PAGE>

rights and obligations of a Lender thereunder, and the respective Commitments of
the Original Lender and each New Lender under the Agreement shall be in the
amount set forth opposite its name on the Commitment Schedule hereto, as such
amount may be reduced from time to time pursuant to the Agreement;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

         Section 1.   Definitions. Capitalized terms used and not otherwise
                      -----------
defined in this First Amendment are used as defined in the Agreement.

         Section 2.   Amendments to Agreement. Subject to the conditions set
                      -----------------------
forth in Section 6 hereof, the Agreement is hereby amended as follows:
         ---------

         2.1      The index of the Agreement is hereby amended by adding the
following schedule listings in the proper numerical sequence: "Schedule 6.10 -
Existing Joint Venture Investments", and "Schedule 6.11(a) - Other Surplus
Assets Eligible for Sale."

         2.2      Section 1.1 of the Agreement is hereby amended by (a) adding
                  -----------
the following defined terms in proper alphabetical order:

                      "Approved Fund" means, with respect to any Lender that is
                       -------------
         a fund that invests in bank loans and similar commercial extensions of
         credit, any other fund that invests in bank loans and similar
         commercial extensions of credit and is managed by the same investment
         advisor as such Lender or by a Lender Affiliate of such investment
         advisor.

                      "Third Party Dividend" shall have the meaning set forth in
                       --------------------
         Section 6.8.
         -----------

; (b) amending the definition of the term "Indebtedness" by replacing the word
                                           ------------
"Indebtedness" with the word "indebtedness" in each place where it appears after
the initial reference thereto; and (c) amending the definition of the term
"Permitted Investments" by (i) deleting the word "and" at the end of clause
 ---------------------
"(f)" thereof; (ii) deleting the period at the end of clause "(g)" thereof and
substituting therefor a semicolon and immediately thereafter adding the word
"and"; and (iii) adding the following new clauses (h) and (i) immediately after
clause "(g)" as follows:

                      (h)  to the extent owned on the Filing Date, investments
         in joint ventures as disclosed in Schedule 6.10; and
                                           -------------

                                       2

<PAGE>

                      (i)  additional investments in joint ventures disclosed in
         Schedule 6.10 during each fiscal year listed below in an aggregate
         -------------
         amount not to exceed the amount specified opposite such fiscal year;
         provided that each such additional investment shall, for purposes of
         --------
         this Agreement, constitute a Capital Expenditure and shall be subject
         to the limitations on Capital Expenditures set forth in Section 6.4:
                                                                 -----------

                                          Maximum Additional Investment
                                          -----------------------------
         Fiscal Year Ending                     in Joint Ventures
         ------------------                     -----------------

                                                   (Millions)
             12/31/2001                              $ 8.7
             12/31/2002                              $25.9
             12/31/2003                              $ 7.9

         2.3      In accordance with the provisions of Section 2.1(d) of the
                                                       --------------
Agreement, the Administrative Agent has determined to reallocate $50,000,000 of
the Commitments from Tranche A to Tranche B. Accordingly, on the Effective Date
the Total Tranche A Commitment is hereby reduced to $475,000,000 and the Total
Tranche B Commitment is hereby increased to $200,000,000. Each reference in the
Agreement to the Total Tranche A Commitment of "$525,000,000" is hereby amended
to be "$475,000,000" and each reference in the Agreement to the Total Tranche B
Commitment of "$150,000,000" is hereby amended to be "$200,000,000". Concurrent
with the foregoing reallocation, $50,000,000 of the principal amount of the
Revolving Loans is hereby converted to be Term Loans. Such conversion shall be
effective without any further action on the part of the Borrowers, the Lenders
or the Administrative Agent and the converted portion of the Term Loans shall be
deemed made on the Effective Date, notwithstanding the provisions of Section
                                                                     -------
2.2(b) of the Agreement.
------

         2.4      Sections 2.3(e) and 2.3(f) of the Agreement are hereby amended
                  ---------------     ------
by replacing the word "Lender" with the words "Tranche A Lender" in each place
where it appears.

         2.5      Section 2.9 of the Agreement is hereby amended by inserting a
                  -----------
close parenthesis after the word "Credit" and again after the words "360 days".

         2.6      Section 2.13(b) of the Agreement is hereby amended by
                  ---------------
replacing the phrase "be less than $100,000,000 (before deducting the from time
to time principal balance of third party financing arrangements made available
to the Non-Debtor Foreign Subsidiaries as set forth in Section 6.10)", with the
                                                       ------------
following: "to the Non-Debtor Foreign Subsidiaries be less than $70,000,000
(without regard to deductions in respect of third party financing arrangements
made available to the Non-Debtor Foreign Subsidiaries pursuant to clause (iv) of
Section 6.10)."
-------------
         2.7      Section 4.2 of the Agreement is hereby amended by adding at
the end thereof a new paragraph as follows:

                                        3

<PAGE>

                      Each Borrowing shall be deemed to constitute a
         representation and warranty by the Borrowers on the date thereof as to
         the matters specified in paragraphs (c) and (d) of this Section.

         2.8      Sections 5.1(d) and 5.1(g) of the Agreement are each hereby
                  ---------------     ------
amended by replacing the phrase "thirty (30) days after the end of each month
(forty-five (45) days after the end of each month which is also the end of a
fiscal quarter)" in each such Section with the following: "forty-five (45) days
after the end of each month".

         2.9      Section 5.9 of the Agreement is hereby amended by adding after
                  -----------
the words "which business plan shall be" the word "reasonably".

         2.10     Section 6.3 is hereby amended by replacing the number
                  -----------
"$1,000,000" in clause "(iii)" thereof with the following: "$15,000,000".

         2.11     Section 6.8 of the Agreement is hereby amended by: (a)
                  -----------

deleting the word "or" at the end of clause "(iii)" thereof; (b) adding at the
end of clause "(iv)" thereof immediately after the words "Non-Debtor Foreign
Subsidiary to a Borrower", a comma, and the following new clause: "or (v) to
Persons directly owning Minority Interests in an aggregate amount not to exceed
$1,000,000 per annum,"; and (c) adding a new sentence at the end thereof as
follows:

         Notwithstanding the provisions of clause (v) above, no dividend,
         distribution or payment to Persons directly owning Minority Interests
         may be made unless with respect to each such anticipated dividend,
         distribution or payment (each, a "Third Party Dividend"), such
                                             ------------------
         distributing Borrower or Subsidiary shall first have remitted a
         dividend, distribution or payment to a Borrower in an amount not less
         than the recipient Borrower's proportionate share (based upon such
         Borrower's percentage ownership interest in the Person making such
         dividend, distribution or payment) of the total dividend, distribution
         or payment to be made by the distributing Borrower or Subsidiary.

         2.12     Section 6.10 of the Agreement is hereby amended by (a)
                  ------------
inserting immediately following the words "from time to time" in clause "(iv)"
thereof, the words "aggregate available commitments and"; (b) deleting the word
"and" at the end of clause "(ix)" thereof; (c) adding a new clause "(xi)"
immediately after clause "(x)" as follows: "; and (xi) capital contributions
advanced from the Borrowers to Federal-Mogul, S.A. - France in an aggregate
amount not to exceed $20,000,000 (which contributions shall be made only
substantially contemporaneously with the making of an Intercompany Loan in an
aggregate amount equal to such capital contributions from Federal-Mogul, S.A. -
France to one or more of the Borrowers)"; and (d) inserting at the end thereof a
new sentence as follows:

         Notwithstanding the provisions of clause (iv) above, (x) neither the
         Borrowers nor any of their Subsidiaries may make, or with respect to
         Intercompany Loans made after the Filing Date, permit to exist, an
         Intercompany Loan to a Non-Debtor Foreign Subsidiary during such time
         as such Non-Debtor Foreign Subsidiary shall not have borrowed all
         amounts available to such Non-Debtor Foreign Subsidiary

                                        4

<PAGE>

         pursuant to commitments under third party financing arrangements then
         provided to such Non-Debtor Foreign Subsidiary and (y) in no event
         shall the permitted amount of postpetition Intercompany Loans to the
         Non-Debtor Foreign Subsidiaries be less than $70,000,000.

         2.13     Section 6.11 of the Agreement is hereby amended by (a)
                  ------------
deleting the word "and" at the end of clause "(iii)" thereof; (b) renumbering
clause "(iv)" thereof as clause "(v)"; and (c) adding at the end of clause
"(iii)" thereof a new clause "(iv)" as follows: "(iv) sales of other surplus
assets of the Borrowers set forth on Schedule 6.11(a), and."

         2.14     Section 7.1(m) of the Agreement is hereby amended by (a)
                  --------------
deleting the word "or" at the end of clause "(xi)" thereof and (b) adding after
clause "(xii)" thereof the following new clause: "or (xiii) the adequate
protection payments payable to the collateral trustee for the benefit of the
holders under the Indentures, all as described in the Final Order;"

         2.15     Section 10.3(b) of the Agreement is hereby amended by (a)
                  ---------------
adding in clause "(i)" thereof after the words "Lender Affiliate" the words "or
to an Approved Fund of a Lender"; and (b) adding at the beginning of clause
"(ii)" thereof the following: "other than in the case of an assignment to any
Lender Affiliate or to an Approved Fund of a Lender or to a Person at least 50%
owned by the assignor Lender, or by a common parent of both, or to another
Lender,"; and (c) adding a new subsection (h) thereof as follows:

                      (h)  Any Lender may at any time pledge or assign a
         security interest in all or any portion of its rights under this
         Agreement to secure obligations of such Lender, including any pledge or
         assignment to secure obligations to a Federal Reserve Bank, and this
         Section shall not apply to any pledge or assignment of a security
         interest, provided that no such pledge or assignment of a security
                   --------
         interest shall release a Lender from any of its obligations hereunder
         or substitute any such pledgee or assignee for such Lender as a party
         hereto.

         2.16     Section 10.6 of the Agreement is hereby amended by adding
                  ------------
after the word "employees," the following: "trustees, advisors".

         2.17     Section 10.10 of the Agreement is hereby amended by adding
                  -------------
after the phrase "extend any date for payment of interest" the following: ",
principal or fees".

         2.18     Section 10.18 of the Agreement is hereby amended by adding
                  -------------
after the phrase "thirty (30) days after the Closing Date" the following: "or
such later date to which the Administrative Agent shall, in its sole discretion,
agree in writing".

                                        5

<PAGE>
         2.19     Section 10.19 of the Agreement is hereby amended by adding in
clause "(y)" thereof after the words "Foreign Subsidiary" the following: "other
than Federal-Mogul, S.A. - France".

         2.20     Annex A-1 to the Agreement is hereby replaced in its entirety
                  ---------
by Annex A-1 attached hereto, which Annex reflects the reallocation contemplated
   ---------
by Section 2.3 above.

         2.21     Annex A-2 to the Agreement is hereby replaced in its entirety
                  ---------
by Annex A-2 attached hereto, which Annex reflects the reallocation contemplated
   ---------
by Section 2.3 above.

         2.22     The signature pages to the Agreement are hereby amended to
list, in addition to the Original Lender, the New Lenders, as such new Lenders
are listed on the signature pages to this First Amendment.

         2.23     Schedule 3.12 to the Agreement is hereby replaced in its
                  -------------
entirety by Schedule 3.12 attached hereto.
            -------------

         Section 3.   Assignment and Acceptance.
                      -------------------------

         3.1      By its execution and delivery hereof, the Original Lender
hereby irrevocably sells and assigns to each of the New Lenders without recourse
to the Original Lender, and each of the New Lenders hereby irrevocably purchases
and assumes from the Original Lender without recourse to the Original Lender, as
of the Effective Date, an undivided interest (the "Assigned Interest") in and to
                                                   -----------------
all the Original Lender's rights and obligations under the Agreement in a
principal amount as set forth opposite each such New Lender's name on Annex A-1.
                                                                      ---------

         3.2      By its execution and delivery hereof, the Original Lender (i)
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
the Agreement or any other of the Loan Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Agreement,
any other of the Loan Documents or any other instrument or document furnished
pursuant thereto, other than that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear
of any adverse claim; (ii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrowers or the
performance or observance by the Borrowers of any of their respective
obligations under the Agreement, any of the other Loan Documents or any other
instrument or document furnished pursuant thereto; and (iii) requests that the
Administrative Agent evidence the Assigned Interest by recording the information
contained on Annex A-1 in the Register which reflects the assignment being made
             ---------
hereby (and after giving effect to any other assignments which have become
effective on the Effective Date).

         3.3      By its execution and delivery hereof, each of the New Lenders,
(i) represents and warrants that it is legally authorized to enter into this
First Amendment and that it is an Eligible Assignee; (ii) confirms that it has
received a copy of the Agreement, together with copies of the most recent
financial statements delivered pursuant to the Agreement, and such

                                       6

<PAGE>

other documents and information as it has deemed appropriate to make its own
credit analysis and to make its own decision to enter into this First Amendment
and thereby become a party to the Agreement; (iii) agrees that it will,
independently and without reliance upon the Administrative Agent, the Original
Lender or any other Lender and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Agreement; (iv) appoints and authorizes
the Administrative Agent to take such action as Administrative Agent on its
behalf and to exercise such powers under the Agreement and the other Loan
Documents as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; (v) agrees that
it will be bound by the provisions of the Agreement and will perform in
accordance with its terms all the obligations which by the terms of the
Agreement are required to be performed by it as a Lender; (vi) if the New Lender
is organized under the laws of a jurisdiction outside the United States,
attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to the New Lender's exemption from United States
withholding taxes with respect to all payments to be made to the New Lender
under the Agreement or such other documents as are necessary to indicate that
all such payments are subject to such tax at a rate reduced by an applicable tax
treaty; and (vii) has supplied the information requested on the administrative
questionnaire heretofore supplied by the Administrative Agent.

         3.4      By its execution and delivery hereof, each of the New Lenders
(i) agrees that any interest, Commitment Fees and Letter of Credit Fees that
accrued prior to the Effective Date shall not be payable to such New Lender and
authorizes and directs the Administrative Agent to deduct such amounts from any
interest, Commitment Fees or Letter of Credit Fees paid to it after the
Effective Date and to pay such amounts to the Original Lender (it being
understood that interest, Commitment Fees and Letter of Credit Fees respecting
the Commitment of the Original Lender and each New Lender that accrue on or
after the Effective Date shall be payable to each such Lender in accordance with
its Commitment), (ii) agrees that if it receives any amount under the Agreement
that is for the account of the Original Lender, it shall receive the same for
the account of such Original Lender to the extent of the Original Lender's
interest therein and shall promptly pay the same to such other party, (iii)
acknowledges that if such New Lender is organized under the laws of a
jurisdiction outside the United States, such New Lender has heretofore furnished
to the Administrative Agent the forms prescribed by the Internal Revenue Service
of the United States certifying as to such New Lender's exemption from United
States withholding taxes with respect to any payments to be made to such New
Lender under the Agreement (or such other documents as are necessary to indicate
that all such payments are subject to such tax at a rate reduced by an
applicable tax treaty).

         3.5      From and after the Effective Date, (i) each New Lender will
pay to the Administrative Agent (for the account of the Original Lender) such
amount as represents such New Lender's pro rata portion of the aggregate
principal amount of the Loans that are outstanding on the Effective Date and
such New Lender's pro rata portion of the aggregate amount of the then
unreimbursed drafts, if any, that were theretofore drawn under Letters of
Credit, and (ii) the Administrative Agent shall pay to each New Lender such fees
as have been previously agreed to between the Administrative Agent and such New
Lender.

                                        7

<PAGE>
         3.6      From and after the Effective Date, (i) each of the New Lenders
shall be a party to the Agreement and, to the extent provided in this First
Amendment, have the rights and obligations of a Lender thereunder, and (ii) the
Original Lender shall, to the extent provided in this First Amendment,
relinquish its rights and be released from its obligations under the Agreement.

         3.7      The execution of this First Amendment by the Borrowers, the
Administrative Agent and the Fronting Bank is evidence of the consents required
pursuant to Section 10.3(e) of the Agreement. In addition, to the extent it is
            ---------------
not satisfied by virtue of execution and delivery hereof, the condition
contained in clause (iii) of Section 10.3(e) of the Agreement is hereby waived.
                             ---------------
Pursuant to Section 2.7(e) of the Agreement, the Borrowers agree to execute and
            --------------
deliver a promissory note payable to the order of each New Lender requesting
that Loans made by it be evidenced by a promissory note to evidence the
assignment and assumption provided for herein.

         3.8      By executing and delivering this First Amendment, each New
Lender hereby becomes party to the Agreement as a Lender, with all of the
rights, privileges, obligations and duties of a Lender thereunder. Without
limiting the generality of the foregoing, each New Lender agrees to perform its
duties and obligations under the Agreement in accordance with the terms thereof.

         Section 4.   Termination of Initial Period. Each of the Borrowers, the
                      -----------------------------
Lenders and the Administrative Agent hereby acknowledge and agree that the
Initial Period terminated on November 20, 2001.

         Section 5.   Effectiveness. The effectiveness of this First Amendment
                      -------------
is conditioned upon the Administrative Agent's receipt of executed counterparts
of this First Amendment which, when taken together, bear the signatures of the
Borrowers, the Original Lender and each New Lender (or, in the case of any party
as to which an executed counterpart shall not have been received, the
Administrative Agent shall have received telegraphic, telex or other written
confirmation from such party of execution of a counterpart hereof by such
party). The "Effective Date" shall mean the first Business Day on which the
             --------------
foregoing condition is fully satisfied.

         Section 6.   Representations and Warranties. Each Borrower represents
                      ------------------------------
and warrants to the Lenders that:

         6.1      After giving effect to the amendments contained herein and
taking into account all prior written waivers and amendments in respect of the
Agreement, the representations and warranties of the Borrowers contained in
Section 3 of the Agreement are true and correct in all material respects on and
---------
as of the date hereof as if such representations and warranties had been made on
and as of the date hereof (except to the extent that any such representations
and warranties specifically relate to an earlier date); and

         6.2      After giving effect to the amendments contained herein and
taking into account all prior written waivers and amendments in respect of the
Agreement, (i) each Borrower

                                        8

<PAGE>
is in compliance with all the terms and provisions set forth in the Agreement,
and (ii) no Event of Default has occurred and is continuing or would result from
the execution, delivery and performance of this First Amendment.

         Section 7.   Choice of Law. THIS FIRST AMENDMENT SHALL IN ALL RESPECTS
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE
AND THE BANKRUPTCY CODE.

         Section 8.   Full Force and Effect. Except as specifically amended
                      ---------------------
hereby, all of the terms and conditions of the Agreement shall remain in full
force and effect, and the same are hereby ratified and confirmed. No reference
to this First Amendment need be made in any instrument or document at any time
referring to the Agreement, a reference to the Agreement in any such instrument
or document to be deemed a reference to the Agreement as amended hereby.

         Section 9.   Counterparts. This First Amendment may be executed in any
                      ------------
number of counterparts, each of which shall constitute an original, but all of
which taken together shall constitute one and the same agreement.

         Section 10.  Headings. The various headings of this First Amendment are
                      --------
inserted for convenience only and shall not affect the meaning or interpretation
of this First Amendment or any provisions hereof.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                        9

<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
duly executed as of the day and the year first written.

                                       BORROWERS:

                                       FEDERAL-MOGUL CORPORATION

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       J.W.J. HOLDINGS INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FEDERAL-MOGUL TRI-WAY, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       CARTER AUTOMOTIVE COMPANY, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FEDERAL MOGUL VENTURE
                                       CORPORATION

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

<PAGE>

                                       FEDERAL-MOGUL GLOBAL PROPERTIES, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: President and Treasurer

                                       FEDERAL-MOGUL WORLD WIDE, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: President and Treasurer

                                       FELT PRODUCTS MFG. CO.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FM INTERNATIONAL, LLC

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FEDERAL-MOGUL U.K. HOLDINGS INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

<PAGE>

                                       FEDERAL-MOGUL GLOBAL INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       T&N INDUSTRIES INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FERODO AMERICA, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       GASKET HOLDINGS, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FEDERAL-MOGUL MYSTIC, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

<PAGE>

                                       FEDERAL-MOGUL POWERTRAIN, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FEDERAL-MOGUL PISTON RINGS, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       MCCORD SEALING, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FEDERAL-MOGUL DUTCH HOLDINGS INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

                                       FEDERAL-MOGUL IGNITION COMPANY

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

<PAGE>

                                       FEDERAL-MOGUL PRODUCTS, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: President and Treasurer

                                       FEDERAL-MOGUL FX, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: President

                                       FEDERAL-MOGUL PUERTO RICO, INC.

                                       By: /s/ DAVID A. BOZYNSKI
                                           -------------------------------------
                                       Name: David A. Bozynski
                                       Title: Vice President and Treasurer

<PAGE>

                                       LENDERS:

                                       JPMORGAN CHASE BANK
                                       Individually and as Administrative Agent

                                       By: /s/ ROBERT ANASTASIO
                                           -------------------------------------
                                       Name: Robert Anastasio
                                       Title: Vice President

<PAGE>

                                       BANK OF AMERICA, N.A.

                                       By: /s/ DANIEL PETRIK
                                           -------------------------------------
                                       Name: Daniel Petrik
                                       Title: Vice President

<PAGE>

                                       FLEET NATIONAL BANK

                                       By: /s/ JAMES J. O'BRIEN
                                           -------------------------------------
                                       Name: James J. O'Brien
                                       Title: Authorized Officer

<PAGE>

                                       GENERAL ELECTRIC CAPITAL
                                       CORPORATION

                                       By: /s/ JAMES F. HOGAN
                                           -------------------------------------
                                       Name: James F. Hogan
                                       Title: Duly Authorized Signatory

<PAGE>

                                       THE CIT GROUP/BUSINESS CREDIT,
                                       INC.

                                       By: /s/ GARY L. LEMBO
                                           -------------------------------------
                                       Name: Gary L. Lembo
                                       Title: Assistant Vice President

<PAGE>

                                       First Union National Bank

                                       By: /s/ JILL W. AKRE
                                           -------------------------------------
                                       Name: Jill W. Akre
                                       Title: Senior Vice President

<PAGE>

                                       FOOTHILL CAPITAL CORPORATION

                                       By: /s/ SANAT AMLADI
                                           -------------------------------------
                                       Name: Sanat Amladi
                                       Title: Assistant Vice President

<PAGE>

                                       GMAC BUSINESS CREDIT, LLC

                                       By: /s/ W. WAKEFIELD SMITH
                                           -------------------------------------
                                       Name: W. Wakefield Smith
                                       Title: Director

<PAGE>

                                       THE BANK OF NOVA SCOTIA

                                       By: /s/ MARIA SOCORRO F. SEVILLA
                                           -------------------------------------
                                       Name: Maria Socorro F. Sevilla
                                       Title: Director

<PAGE>

                                       BANK ONE, NA

                                       By: /s/ RICHARD H. HUTTENLOCHER
                                           -------------------------------------
                                       Name: Richard H. Huttenlocher
                                       Title: Senior Vice President

<PAGE>

                                       CREDIT LYONNAIS NEW YORK
                                       BRANCH

                                       By: /s/ ANNE G. SHEAN
                                           -------------------------------------
                                       Name: Anne G. Shean
                                       Title: Vice President

<PAGE>

                                       SOCIETE GENERALE

                                       By: /s/ ROBERT P. TINARI
                                           -------------------------------------
                                       Name: Robert P. Tinari
                                       Title: Director

<PAGE>

                                       BANK OF SCOTLAND

                                       By: /s/ JOSEPH FRATUS
                                           -------------------------------------
                                       Name: Joseph Fratus
                                       Title: Vice President

<PAGE>

                                       CIBC INC.

                                       By: /s/ DANIEL D. MCCREADY
                                           -------------------------------------
                                       Name: Daniel D. McCready
                                       Title: Managing Director
                                              CIBG World Markets Corp.,
                                              As Agent

<PAGE>

                                       GUARANTY BUSINESS CREDIT
                                       CORPORATION

                                       By: /s/ HAROLD J. KESSLER
                                           -------------------------------------
                                       Name: Harold J. Kessler
                                       Title: Vice President

<PAGE>

                                       BAYERISCHE HYPO-UND
                                       VEREINSBANK AG

                                       By: /s/ MICHAEL D. NOVELLINO
                                           -------------------------------------
                                       Name: Michael D. Novellino
                                       Title: Associate Director

                                       BAYERISCHE HYPO-UND
                                       VEREINSBANK AG

                                       By: /s/ SALVATORE ESPOSITO
                                           -------------------------------------
                                       Name: Salvatore Esposito
                                       Title: Director

<PAGE>

                                       HELLER FINANCIAL, INC.

                                       By: /s/ ALBERT J. FORZANO
                                           -------------------------------------
                                       Name: Albert J. Forzano
                                       Title: Vice President

<PAGE>

                                       TRANSAMERICA BUSINESS
                                       CAPITAL CORPORATION

                                       By: /s/ TERESA B. GERLACH
                                           -------------------------------------
                                       Name: Teresa B. Gerlach
                                       Title: Vice President

<PAGE>

                                       THE INDUSTRIAL BANK OF JAPAN,
                                       LIMITED, as Lender

                                       By: /s/ NOEL P. PURCELL
                                           -------------------------------------
                                       Name: Noel P. Purcell
                                       Title: Senior Vice President

<PAGE>

                                       THE ROYAL BANK OF SCOTLAND PLC

                                       By: /s/ CHARLES GREER
                                           -------------------------------------
                                       Name: Charles Greer
                                       Title: Vice President Specialized Lending
                                              Services

<PAGE>

                                       THE PROVIDENT BANK

                                       By: /s/ RUSS SMETHWICK
                                           -------------------------------------
                                       Name: Russ Smethwick
                                       Title: Portfolio Manager, AVP

<PAGE>

                                       WEBSTER BANK

                                       By: /s/ JOHN GILSENAN
                                           -------------------------------------
                                       Name: John Gilsenan
                                       Title: Vice President

<PAGE>

                                       BILL & MELINDA GATES FOUNDATION
                                       By: David L. Babson & Company Inc. as
                                        Investment Adviser

                                       By: /s/ JOHN B. WHEELER
                                           -------------------------------------
                                       Name: John B. Wheeler
                                       Title: Managing Director

<PAGE>

                                       MASSACHUSETTS MUTUAL LIFE
                                       INSURANCE COMPANY
                                       By: David L. Babson & Company Inc. as
                                       Investment Adviser

                                       By: /s/ JOHN B. WHEELER
                                           -------------------------------------
                                       Name: John B. Wheeler
                                       Title: Managing Director

<PAGE>

                                       MAPLEWOOD (CAYMAN) LIMITED
                                       By: David L. Babson & Company Inc. under
                                       Delegated authority from Massachusetts
                                       Mutual Life Insurance Company as
                                       Investment Manager

                                       By: /s/ JOHN B. WHEELER
                                           -------------------------------------
                                       Name: John B. Wheeler
                                       Title: Managing Director

<PAGE>

                                       MASSMUTUAL HIGH YIELD PARTNERS II LLC
                                       By: HYP Management, Inc. as Managing
                                       Member

                                       By: /s/ JOHN B. WHEELER
                                           -------------------------------------
                                       Name: John B. Wheeler
                                       Title: Managing Director

<PAGE>

                                       RIVIERA FUNDING LLC

                                       By: /s/ DIANA L. MUSHILL
                                           -------------------------------------
                                       Name: Diana L. Mushill
                                       Title: Assistant Vice President

<PAGE>

                                       PROTECTIVE LIFE INSURANCE
                                       COMPANY

                                       By: /s/ DIANE S. GRISWOLD
                                           -------------------------------------
                                       Name: Diane S. Griswold
                                       Title: Assistant Vice President

<PAGE>

                                       NORTHWOODS CAPITAL, LIMITED
                                       By: Angelo, Gordon & Co., L.P.
                                       As Collateral Manager

                                       By: /s/ JOHN W. FRASER
                                           -------------------------------------
                                       Name: John W. Fraser
                                       Title: Managing Director

<PAGE>

                                       NORTHWOODS CAPITAL II, LIMITED
                                       By: Angelo, Gordon & Co., L.P.
                                       As Collateral Manager

                                       By: /s/ JOHN W. FRASER
                                           -------------------------------------
                                       Name: John W. Fraser
                                       Title: Managing Director

<PAGE>

                                       NORTHWOODS CAPITAL III, LIMITED
                                       By: Angelo, Gordon & Co., L.P.
                                       As Collateral Manager

                                       By: /s/ JOHN W. FRASER
                                           -------------------------------------
                                       Name: John W. Fraser
                                       Title: Managing Director

<PAGE>

                                       LENDERS:

                                       JPMORGAN CHASE BANK,
                                       Individually and as Administrative Agent

                                       By:
                                           -------------------------------------
                                       Name: Robert Anastasio
                                       Title: Vice President

                                       TORONTO DOMINION (NEW YORK), INC.

                                       By: /s/ SUSAN K. STRONG
                                           -------------------------------------
                                       Name: Susan K. Strong
                                             -----------------------------------
                                       Title: Vice President
                                              ----------------------------------

                                       [LENDER NAME]

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                       [LENDER NAME]

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                       [LENDER NAME]

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                       14

<PAGE>

                                       STANWICH LOAN FUNDING LLC

                                       By: /s/ DIANA L. MUSHILL
                                           -------------------------------------
                                       Name: Diana L. Mushill
                                       Title: Assistant Vice President

<PAGE>

                                       OAK HILL CREDIT PARTNERS I,
                                       LIMITED
                                       BY: OAK HILL CLO MANAGEMENT,
                                       LLC
                                       AS INVESTMENT MANAGER

                                       By: /s/ ROBERT B. OKUN
                                           -------------------------------------
                                       Name: Robert B. Okun
                                       Title: Authorized Signatory

<PAGE>

                                       OPPENHEIMER SENIOR FLOATING
                                       RATE FUND

                                       By: /s/ DAVID FOXHOVEN
                                           -------------------------------------
                                       Name: David Foxhoven
                                       Title: Assistant Vice President

<PAGE>

                                       BLACK DIAMOND INTERNATIONAL
                                       FUNDING, LTD.

                                       By: /s/ ALAN CORKISH
                                           -------------------------------------
                                       Name: Alan Corkish
                                       Title: Director

<PAGE>

                                       EAST WEST BANK

                                       By: /s/ NANCY A. MOORE
                                           -------------------------------------
                                       Name: Nancy A. Moore
                                       Title: Senior Vice President

<PAGE>

                                       MUIRFIELD TRADING LLC

                                       By: /s/ DIANA L. MUSHILL
                                           -------------------------------------
                                       Name: Diana L. Mushill
                                       Title: Assistant Vice President

<PAGE>

                                       LAGUNA FUNDING TRUST

                                       By: /s/ ANN E. MORRIS
                                           -------------------------------------
                                       Name: Ann E. Morris
                                       Title:  Authorized AgentExhibit 10(i)

                              Employment Agreement
                    (Amended and Restated November 20, 2001)

         THIS Employment Agreement (this "Agreement") is entered into effective
the 1st day of January, 2001, by and between Camco Financial Corporation, a
savings and loan holding company incorporated under the laws of the State of
Delaware ("Camco"), the principal office of which is located at 6901 Glenn
Highway, Cambridge, Ohio, and Richard C. Baylor (the "Employee"), an individual
whose residential address is 156 Hawthorne Drive, New Concord, Ohio 43762, and
is amended and restated effective November 20, 2001.

                                   WITNESSETH:

         WHEREAS, the Employee has assumed the responsibilities of President and
Chief Executive Officer of Camco effective January 1, 2001; and

         WHEREAS, as a result of the skill, knowledge, experience and
performance of the Employee, Camco desires to continue to retain the services of
the Employee as President and Chief Executive Officer in accordance with the
terms and conditions of this Agreement;

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable considerations, the receipt and
sufficiency of which is hereby acknowledged, Camco and the Employee agree as
follows:

         1. Employment and Term. The Employee is employed as the President and
Chief Executive Officer of Camco, and the Employee hereby accepts employment as
the President and Chief Executive Officer of Camco, upon the terms and
conditions of this Agreement. The term of employment shall be for the period
commencing on January 1, 2001, and shall end on December 31, 2003 (the "Term").
At the end of each year of the Term, the Agreement may be extended for periods
of one year each by Camco's Board of Directors ("Board") at its sole and
exclusive discretion, subject to the Employee's acceptance thereof. Prior to
consenting to any such extension, the Board will conduct a performance
evaluation of the Employee, and the results of such review shall be noted in the
minutes of the meeting of the Board. The Term of this Agreement, together with
each extension period, is hereinafter referred to as the "Employment Term".

         2.       Duties of Employee.

                  (a) General Duties and Responsibilities. The Employee shall
serve as the President and Chief Executive Officer of Camco; shall perform the
duties and responsibilities customary for such offices to the best of his
ability and in accordance with (i) the policies established by the Board and
(ii) all applicable laws and regulations; and shall perform such other duties
not inconsistent with his position as may be assigned to him from time to time
by the Board.

<PAGE>
                  (b) Devotion of Time to Camco's Business. The Employee shall
devote his entire productive time, ability and attention during normal business
hours throughout the Employment Term to the faithful performance of his duties
under this Agreement subject to the direction of the Board. The Employee shall
not directly or indirectly render any services of a business, commercial or
professional nature to any person or organization without the prior written
consent of the Board; provided, however, that the Employee shall not be
precluded from: (i) vacations and other leave time in accordance with Section
3(d) hereof; (ii) reasonable participation in community, civic, charitable or
similar organizations; (iii) reasonable participation in industry-related
activities including, but not limited to, directorship of a Federal Home Loan
Bank, attending industry trade association (national and state) conventions,
conferences and committee meetings, and holding positions of responsibility
therein; (iv) serving as an officer and/or director of Camco's subsidiaries; or
(v) the pursuit of personal investments that do not interfere or conflict with
the performance of the Employee's duties for Camco.

         3.       Compensation, Benefits and Reimbursements.

                  (a) Salary. The Employee shall receive an annual salary
payable in equal installments not less often than monthly. The amount of the
annual salary shall be $160,000 until changed by the Board. Each year throughout
the Employment Term, the amount of the Employee's annual salary shall be
reviewed by the Board, and shall be set at an amount not less than $160,000,
based upon the Employee's responsibilities and individual performance and the
overall profitability and financial condition of Camco (the "Annual Review").
The result of the Annual Review shall be reflected in the minutes of the Board.
Any directors' fees received by Employee, whether paid by Camco or any other
entity, shall be in addition to the salary provided for in this Agreement and
may be retained by Employee in their entirety.

                  (b) Expenses. In addition to any compensation received under
Section 3(a), Camco shall pay or reimburse the Employee for all reasonable
travel, entertainment and miscellaneous expenses incurred in connection with the
performance of his duties under this Agreement including participation in
industry-related activities. Such reimbursement shall be made in accordance with
the existing policies and procedures of Camco pertaining to reimbursement of
expenses to senior management officials.

                  (c) Employee Benefit Program. During the Employment Term, the
Employee shall be entitled to participate in all formally established employee
benefit, bonus, pension and profit-sharing plans and similar programs that are
maintained by Camco from time to time, including programs regarding group
health, disability or life insurance, salary continuation insurance,
reimbursement of membership fees in civic, social and professional organizations
and all employee benefit plans or programs hereafter adopted in writing by the
Board, for which senior management personnel are eligible, including any
employee stock ownership plan or stock option plan (collectively, the "Benefit
Plans"). Notwithstanding the foregoing sentence, Camco may discontinue at any
time any such Benefit Plans now existing or hereafter adopted, to the extent
permitted by the terms of such plans, and shall not be required to compensate
the Employee for the elimination of any such Benefit Plans.

                                      -2-
<PAGE>
                  (d) Vacation and Sick Leave.  The Employee shall be entitled,
without loss of pay, to be absent voluntarily from the performance of his duties
under this Agreement, subject to the following conditions:

                           (i)     The Employee shall be entitled to an annual
vacation, the duration of which shall not be less than four weeks each calendar
year;

                           (ii)     Vacation time shall be scheduled by the
Employee in a reasonable manner and shall be subject to approval by the Board.
The Employee shall not be entitled to receive any additional compensation from
Camco in the event of his failure to take the full allotment of vacation time in
any calendar year nor shall unused vacation time be carried over into any
succeeding calendar year; and

                           (iii)    The Employee shall be entitled to annual
sick leave as established by the Board for senior management officials of Camco.
In the event that any sick leave time shall not have been used during any
calendar year, such leave shall accrue to subsequent calendar years only to the
extent authorized by the Board. Upon termination of his employment, the Employee
shall not be entitled  to receive any  additional compensation from Camco for
unused sick leave.

                  (e) Employee shall be entitled to the full-time use of a
company-owned automobile. Camco shall be responsible for the cost of obtaining
collision and liability insurance for the automobile and shall pay for all other
costs of operating the automobile including fuel, maintenance and repair.

                  (f) During the Employment Term, Camco shall pay Employee's
membership dues at the Cambridge Country Club and non-resident membership dues
at the Columbus Club.

         4. Termination of Employment. In addition to Camco's right to terminate
the employment of the Employee at the end of the Employment Term, Camco may
terminate the employment of the Employee at any other time during the Employment
Term. In the event that Camco terminates the employment of the Employee during
the Employment Term because of the Employee's personal dishonesty, incompetence,
willful misconduct, breach of fiduciary duty involving personal profit,
intentional failure or refusal to perform the duties and responsibilities
assigned in this Agreement, willful violation of any law, rule, regulation or
final cease-and-desist order (other than traffic violations or similar
offenses), conviction of a felony or for fraud or embezzlement, or material
breach of any provision of this Agreement (collectively, "Just Cause"), the
Employee shall have no right to receive any compensation or other benefits for
any period after such termination. If Camco terminates the employment of the
Employee during the Employment Term for any reason other than Just Cause, or if
the Employee terminates his employment for Good Reason (hereinafter defined),
the Employee shall be entitled to the following:

                  (a) Termination After Change of Control. If, in connection
with or within one year of a Change of Control (hereinafter defined) of Camco,

                                      -3-
<PAGE>

Camco terminates the employment of the Employee for any reason other than Just
Cause, or if the Employee elects to terminate his employment for Good Reason,
then the following shall occur:

                           (i)      Camco shall promptly pay to the Employee or
to his beneficiaries, dependents or estate an amount equal to three times the
Employee's "average annual compensation" as such term is defined in Section 280G
of the Internal Revenue Code of 1986, as amended.

                           (ii)     Camco shall provide to the Employee and his
eligible dependents health, life and disability insurance benefits substantially
equal to those being provided  to the Employee and his eligible dependents
immediately prior to the occurrence of the Change of Control, at Camco's expense
and as if the Employee were still employed under this Agreement for a period of
36 months.

                           (iii)    Camco shall promptly pay to the Employee an
amount equal to all directors' fees to which the Employee would otherwise have
been entitled if he had remained a director of Camco or any of its subsidiaries
for a period of 36 months.

                           The Employee shall not be required to mitigate the
amount of any payment provided for in this Agreement, whether in this paragraph
or elsewhere in this Agreement, by seeking other employment or otherwise, nor
shall any amounts received from other employment or otherwise by the Employee
offset in any manner the obligations of Camco hereunder, except as specifically
stated in subsection (ii) of this subsection (a).

                           A "Change of Control" shall mean any one of the
following  events:  (i) the  acquisition of ownership or power to vote more than
25% of the voting stock of Camco; (ii) the acquisition of the ability to control
the election of a majority of the directors of Camco; (iii) during any period of
two  consecutive  years,  individuals  who  at  the  beginning  of  such  period
constitute the Board of Directors of Camco cease for any reason to constitute at
least a majority thereof; provided,  however, that any individual whose election
or  nomination  for  election as a member of the Board of Directors of Camco was
approved by a vote of at least  two-thirds of the directors then in office shall
be  considered  to have  continued  to be a member of the Board of  Directors of
Camco; or (iv) the  acquisition by any person or entity of "conclusive  control"
of Camco within the meaning of 12 C.F.R. ss.574.4(a),  or the acquisition by any
person  or  entity of  "rebuttable  control"  within  the  meaning  of 12 C.F.R.
ss.574.4(b) that has not been rebutted in accordance with 12 C.F.R. ss.574.4(c).
For purposes of this  paragraph,  the term  "person"  refers to an individual or
corporation,  partnership,  trust, association, or other organization,  but does
not include the  Employee  and any person or persons  with whom the  Employee is
"acting in concert" within the meaning of 12 C.F.R. Part 574.

                           "Good Reason" shall be deemed to exist if, within one
year  following a Change of Control,  any of the following  occurs,  without the
prior written consent of the Employee: (I) the present capacity or circumstances
in which the Employee is employed are materially and adversely  changed,  in the
reasonable opinion of the Employee (including,  without limitation,  a reduction

                                      -4-
<PAGE>

in responsibilities  or authority,  the assignment of duties or responsibilities
substantially  inconsistent with those normally  associated with the position of
President  and Chief  Executive  Officer or a  reduction  in  salary);  (II) the
Employee is no longer the President and Chief Executive  Officer of Camco or any
successor  by merger  to  Camco;  (III) the  Employee  is  required  to move his
personal  residence,  or perform his principal  executive  functions,  more than
thirty-five  (35)  miles  from  his  primary  office  as  of  the  date  of  the
commencement  of the Term of this Agreement;  or (IV) Camco  otherwise  breaches
this Agreement in any material respect.

                  (b) Termination without Change of Control. In the event Camco
terminates the employment of the Employee for any reason other than Just Cause
and the termination is not covered by the provisions of subsection (a) of this
Section 4, Camco shall be obligated to continue to (i) pay on a monthly basis to
the Employee, his designated beneficiaries or his estate, his annual salary
provided pursuant to Section 2 of this Agreement for the number of months
remaining in the Employment Term as of the date of the termination; and (ii)
provide to the Employee and his eligible dependents, at Camco's expense, health,
life and disability insurance benefits substantially equal to those being
provided to the Employee and his eligible dependents at the date of termination
of his employment until the earliest of (A) the end of the Employment Term under
this Agreement pursuant to Section 1 of this Agreement or (B) that date on which
the Employee is included in another employer's benefit plans as a full-time
employee. The Employee may choose, in lieu of monthly payments of the amounts
set forth above, to receive a lump sum payment equal to the present value of
such payments. For purposes of computing such lump-sum payment, the parties
shall use a discount rate of five percent (5%) per annum.

                  (c) Death of the Employee. The Employment Term automatically
terminates upon the death of the Employee. In the event of such death, the
Employee's estate shall be entitled to receive the compensation due the Employee
through the last day of the calendar month in which the death occurred.

         5. Consolidation, Merger or Sale of Assets. Nothing in this Agreement
shall preclude Camco from voluntarily or involuntarily consolidating with,
merging into, or transferring all, or substantially all, of its assets to
another corporation that assumes all of Camco's obligations and undertakings
hereunder. Upon such a consolidation, merger or transfer of assets, the term
"Camco" as used in this Agreement, shall mean such other corporation or entity
and this Agreement shall continue in full force and effect.

         6. Confidential Information. The Employee acknowledges that during his
employment he has learned, will learn and will have access to confidential
information regarding Camco and its customers and business. The Employee agrees
and covenants not to disclose or use for his own benefit or the benefit of any
other person or entity any confidential information, unless or until Camco
consents to such disclosure or use or such information becomes common knowledge
in the industry or is otherwise legally in the public domain. The Employee shall
not knowingly disclose or reveal to any unauthorized person any confidential
information relating to Camco, its subsidiaries or affiliates, or to any of the
businesses operated by them, and the Employee confirms that such information

                                      -5-
<PAGE>

constitutes the exclusive property of Camco. The Employee shall not otherwise
knowingly act or conduct himself (i) to the material detriment of Camco, its
subsidiaries or affiliates or (ii) in a manner which is inimical or contrary to
the interests of Camco.

         7. Nonassignability. Neither this Agreement nor any right or interest
hereunder shall be assignable by the Employee, his beneficiaries or legal
representatives without Camco's prior written consent; provided, however, that
nothing in this Section 7 shall preclude (i) the Employee from designating a
beneficiary to receive any benefits payable hereunder upon his death or (ii) the
executors, administrators or other legal representatives of the Employee or his
estate from assigning any rights hereunder to the person or persons entitled
thereto.

         8. No Attachment. Except as required by law, no right to receive
payment under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to
execution, attachment, levy or similar process of assignment by operation of
law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect.

         9.  Binding Agreement.  This Agreement shall be binding upon, and inure
to the benefit of, the Employee and Camco and  their  respective  permitted
successors and assigns.

         10. Amendment of Agreement.  This Agreement may not be modified or
amended, except by an instrument in writing signed by the parties hereto.

         11. Waiver. No term or condition of this Agreement shall be deemed to
have been waived, nor shall there be an estoppel against the enforcement of any
provision of this Agreement, except by written instrument of the party charged
with such waiver or estoppel. No such written waiver shall be deemed a
continuing waiver, unless specifically stated therein, and each waiver shall
operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act
other than the act specifically waived.

         12. Severability. If, for any reason, any provision of this Agreement
is held invalid, such invalidity shall not affect the other provisions of this
Agreement not held so invalid, and each such other provision shall, to the full
extent consistent with applicable law, continue in full force and effect. If
this Agreement is held invalid or cannot be enforced, then any prior agreement
between Camco (or any predecessor thereof) and the Employee shall be deemed
reinstated to the full extent permitted by law, as if this Agreement had not
been executed.

         13. Headings.  The headings of the paragraphs herein are included
solely for convenience of reference and shall not control the  meaning or
interpretation of any of the provisions of this Agreement.

         14. Governing Law.  This Agreement has been executed and delivered in
the State of Ohio, and its validity, interpretation, performance and enforcement
shall be governed by the laws of the State of Ohio, except to the extent that
federal or Delaware law is governing.

                                      -6-
<PAGE>

         15. Effect of Prior Agreements.  This Agreement contains the entire
understanding between the parties hereto and supersedes any prior Employment
Agreement between Camco, or any predecessor of Camco, and the Employee.

         IN WITNESS WHEREOF, Camco has caused this Agreement to be executed by
its duly authorized officers, and the Employee has signed this Agreement, all as
of the day and year first above written.

Attest:                                          CAMCO FINANCIAL CORPORATION

 /s/ Anita L. Frencik                            By:  /s/ Larry A. Caldwell
Its Assistant Secretary                                 Larry A. Caldwell,
                                                        Chairman of the Board

Witness:

/s/ Sharon K. Chorey                              /s/ Richard C. Baylor
                                                 Richard C. Baylor
                                                 President & CEO

                                      -8-

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