Document:

exv4w2

 

Exhibit 4.2

FEDERAL-MOGUL CORPORATION

REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT, dated as of                     , 2007 (this “Agreement”), among the
parties listed on Schedule I hereto (the “Major Holders”) [Note: Schedule I will include only
those holders of in excess of 10% of the Reorganization Common Stock immediately following the
distributions contemplated by the Plan], the other Holders (as defined below) listed on Schedule II
hereto or that execute a joinder to this Agreement subsequent to the date hereof, and Federal-Mogul
Corporation, a Delaware corporation (the “Company”).

R E C I T A L S

     WHEREAS, on October 1, 2001, the Company commenced its case (the “Bankruptcy Case”) under
Chapter 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court
for the District of Delaware (the “Bankruptcy Court”);

     WHEREAS, the Holders were holders of claims against the Company in the Bankruptcy Case;

     WHEREAS, on                     , the Bankruptcy Court confirmed the Fourth Amended Plan of
Reorganization of the Company (the “Plan”);

     WHEREAS, on                      (the “Effective Date”), the Plan and the related transactions
contemplated thereby were consummated, at which time the Holders’ claims were cancelled and they
received Reorganization Common Stock (as defined below), PIK Debt (as defined below) or Warrants
(as defined below);

     WHEREAS, the Company has agreed to grant the Holders certain registration rights;

     WHEREAS, the Company and the Holders desire to define the registration rights of the Holders
on the terms and subject to the conditions herein set forth.

     NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration, the parties hereby agree as follows:

SECTION 1. DEFINITIONS

     As used in this Agreement, the following terms have the respective meaning set forth below:

Bankruptcy Code: shall have the meaning set forth in the Plan.

Commission: shall mean the Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act.

 

 

Effective Date: shall have the meaning set forth in the Recitals above.

Exchange Act: shall mean the Securities Exchange Act of 1934, as amended and the rules and
regulations promulgated thereunder.

Holder and Holders: shall mean: (i) the Major Holders; (ii) any Person that
received a distribution of Reorganization Common Stock, PIK Debt or Warrants in the Plan and would
qualify as an “underwriter” as defined in Section 1145(b) of the Bankruptcy Code or that reasonably
requests to be included as a Holder; provided that for purposes of this clause (ii), no
Person shall be deemed to be an “underwriter” or to have reasonably requested inclusion as a
Holder, unless such Person shall have provided to the Company an opinion of counsel, in form and
substance reasonably acceptable to the Company, stating that such Person is unable to sell in a
public distribution all of such Reorganization Common Stock, PIK Debt or Warrants pursuant to Rule
144 (without volume limitation) or another available exemption under the Securities Act; (iii) any
other Person that acquires Registrable Securities directly from a Major Holder in a transaction
that includes a contractual assignment to such Person of such Major Holder’s registration rights
under this Agreement and, as a result of such acquisition, is unable to sell in a public
distribution all of its Registrable Securities pursuant to Rule 144 (without volume limitation) or
another available exemption under the Securities Act and provides to the Company an opinion of
counsel, in form and substance reasonably acceptable to the Company, stating the same; or (iv) any
lender or financial institution that acquires Reorganization Common Stock, PIK Debt or Warrants by
foreclosure pursuant to a bona fide pledge arrangement with a Major Holder, and any transferees of
such lender or financial institution.

Initiating Holder: with respect to Reorganization Common Stock shall mean any Major Holder
or Major Holders who in the aggregate are holders of more than 20% of the then outstanding
Reorganization Common Stock and, with respect to PIK Debt, shall mean a Major Holder or Major
Holders who in the aggregate are holders of more than 20% of the then outstanding principal amount
of PIK Debt.

Person: shall mean an individual, partnership, joint-stock company, corporation, trust or
unincorporated organization, and a government or agency or political subdivision thereof.

PIK Debt: shall mean the Reorganized Federal-Mogul Junior Secured PIK Notes (as such term
is defined in the Plan).

Plan: shall have the meaning as set forth in the recitals.

Register, Registered and Registration: shall mean to a registration
effected by preparing and filing a registration statement in compliance with the Securities Act
(and any post-effective amendments filed or required to be filed) and the declaration or ordering
of effectiveness of such registration statement.

Registrable Securities: shall mean the PIK Debt, the shares of Reorganization Common Stock
and the Warrants (together with any securities issued or issuable in respect thereof by way of a
dividend or stock split or in connection with a combination of shares, recapitalization, merger,

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consolidation or other reorganization or otherwise) issued or issuable to the Holders pursuant to
the Plan; and any Reorganization Common Stock that may be purchased from time to time by a Major
Holder or its affiliates after the Effective Date, provided, however, that any
shares of Reorganization Common Stock that cease to be owned by a Holder or any of its affiliates
shall cease to be Registrable Securities; provided further, however, that
Registrable Securities shall not include any Securities acquired by any Person (other than a Major
Holder) in the market or otherwise (other than directly from a Major Holder in a transaction that
includes a contractual assignment to such Person of such Major Holder’s registration rights under
this Agreement) subsequent to the Effective Date or acquired in any other manner other than
pursuant to the terms of the Plan. For the purpose of determining whether one is a Holder, the
record and beneficial owner of Class B Common Stock shall be deemed to hold the Class A Common
Stock into which the Class B Common Stock would convert if it were transferred by such record and
beneficial owner. Any Holder who may offer and sell all of its Reorganization Common Stock or its
PIK Debt to the public in a transaction that (i) does not involve a registration under the
Securities Act or (ii) is pursuant to an exemption from registration in which the volume of sales
is not required to be limited shall no longer be deemed to hold Registrable Securities that would
enable it to require the Company to include such securities in a registration statement pursuant
hereto.

Registration Expenses: shall mean all expenses incurred by the Company in compliance with
Section 2(a), (b) and (c) hereof, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Company, fees and expenses of one
counsel for all the Holders in an amount not to exceed $50,000 per registration and $100,000 in
aggregate, blue sky fees and expenses and the expense of any special audits incident to or required
by any such registration (but excluding the compensation of regular employees of the Company, which
shall be paid in any event by the Company); provided, however, that Registration Expenses shall
exclude Selling Expenses.

Reorganization Common Stock: shall mean: (i) the Class A common stock of the Company, par
value $.01 per share, issued pursuant to the Plan on the Effective Date; (ii) the Class A common
stock of the Company, par value $.01 per share, issuable upon exercise of the Warrants issued
pursuant to the Plan on the Effective Date; and (iii) the Class B common stock of the Company, par
value $.01 per share, issued pursuant to the Plan on the Effective Date.

Security and Securities: shall have the meaning set forth in Section 2(1) of the
Securities Act.

Securities Act: shall mean the Securities Act of 1933, as amended and the rules and
regulations promulgated thereunder.

Selling Expenses: shall mean all underwriting discounts and selling commissions applicable
to the sale of Registrable Securities and all fees and disbursements of counsel for each of the
Holders other than the fees and expenses of one counsel for all the Holders referenced in the
definition of Registration Expenses above.

Warrant and Warrants: shall mean the warrants to purchase Reorganization Common
Stock which are issued pursuant to the Plan.

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SECTION 2. REGISTRATION RIGHTS

     (a) Requested Registration.

     
     (i) Request for Registration. If the Company shall receive from an Initiating Holder,
at any time after the Effective Date, subject to Section (2)(i), if applicable, a written request
that the Company effect any registration with respect to more than 10% of the Reorganization Common
Stock or more than 10% of the outstanding principal amount of the PIK Debt, the Company will:

     
          (1) promptly give written notice of the proposed registration, qualification or compliance to
all other Holders of the Reorganization Common Stock, the PIK Debt or the Warrants, as the case may
be; and

     
          (2) as soon as practicable, use its diligent best efforts to effect such registration
(including, without limitation, the execution of an undertaking to file post-effective amendments,
appropriate qualification under applicable blue sky or other state securities laws and appropriate
compliance with applicable regulations issued under the Securities Act) as may be so requested and
as would permit or facilitate the sale and distribution of all or such portion of such Registrable
Securities as are specified in such request, together with all or such portion of the Registrable
Securities of any Holder or Holders joining in such request as are specified in a written request
received by the Company within 10 business days after written notice from the Company is given
under Section 2(a)(i)(1) above; provided that the Company shall not be obligated to effect, or take
any action to effect, any such registration pursuant to this Section 2(a):

                    (A) In any particular jurisdiction in which the Company would be required to execute a general
consent to service of process in effecting such registration, qualification or compliance, unless
the Company is already subject to service in such jurisdiction and except as may be required by the
Securities Act or applicable rules or regulations thereunder;

     
               (B) After the Company has effected three (3) such registrations consisting of one (1) such
registration pursuant to a request by Thornwood Associates Limited Partnership (“Thornwood”) under
this Section 2(a) (the “Thornwood Request”); one (1) such registration pursuant to a request by the
Federal-Mogul U.S. Asbestos Personal Injury Trust (the “Trust”) under this Section 2(a) (the “Trust
Request”); and one (1) such registration pursuant to a request by Thornwood after it has made the
Thornwood Request, a request by the Trust after it has made the Trust Request, or a request by
another Initiating Holder under this Section 2(a); and all of such registrations have been declared
or ordered effective and the sales of such Registrable Securities shall have closed;

     
               (C) If the Registrable Securities requested by all Holders to be registered pursuant to such
request do not have an anticipated aggregate public offering price (before any underwriting
discounts and commissions) of not less than $5,000,000;

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               (D) During the period starting with the date sixty (60) days prior to the Company’s good faith
estimate of the date of filing of, and ending on the date six (6) months immediately following the
effective date of, any registration statement pertaining to securities of the Company in which
Securities held by the Initiating Holder could have been included for sale or distribution (other
than a registration of securities in a Rule 145 transaction, with respect to an employee benefit
plan or with respect to the Company’s first registered public offering of its stock); provided that
the Company is actively employing in good faith all reasonable efforts to cause such registration
statement to become effective; or

     
               (E) If the Company shall furnish to the Initiating Holders a certificate signed by an officer
of the Company stating that in the good faith judgment of the Board of Directors it would be
significantly detrimental to the Company or its stockholders for a registration statement to be
filed or securities to be offered, in which case the Company’s obligation to use its best efforts
to comply with this Section 2 shall be deferred for a period not to exceed ninety (90) days from
the date of receipt of written request from the Initiating Holders; provided, however, that the
Company shall not exercise such right more than once in any six-month period.

The registration statement filed pursuant to the request of the Initiating Holders may, subject to
the provisions of Section 2(a)(ii) below, include other securities of the Company which are held by
Persons who, by virtue of agreements with the Company, are entitled to include their securities in
any such registration (“Other Stockholders”). In the event any Holder requests a registration
pursuant to this Section 2(a) in connection with a distribution of Registrable Securities to its
partners, the registration shall provide for the resale by such partners, if requested by such
Holder.

The registration rights set forth in this Section 2 may be assigned, in whole or in part, to any
transferee of Registrable Securities (who shall be bound by all obligations of this Agreement);
provided that such transferee: (a) is an affiliate of a Holder but only if such affiliate satisfies
the definition of Holder, or (b) meets the requirements of subparts (ii), (iii) or (iv) of the
definition of Holder.

     
     (ii) Underwriting. If the Initiating Holders intend to distribute the Registrable
Securities covered by their request by means of an underwriting, they shall so advise the Company
as a part of their request made pursuant to Section 2(a).

If Other Stockholders request inclusion of securities of the same class as the Registrable
Securities to be included in such underwriting, the Holders shall offer to include the securities
of such Other Stockholders in the underwriting and may condition such offer on their acceptance of
the further applicable provisions of this Section 2. The Holders whose securities are to be
included in such registration and the Company shall (together with all Other Stockholders proposing
to distribute their securities through such underwriting) enter into an underwriting agreement in
customary form with the representative of the underwriter or underwriters selected for such
underwriting by the Initiating Holders and reasonably acceptable to the Company (the
“Representative”).

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Notwithstanding any other provision of this Section 2(a), if the Representative advises the Holders
in writing that, based on the good-faith judgment of the underwriter or underwriters, marketing
factors require a limitation on the number of securities to be underwritten, the securities of the
Company held by Other Stockholders shall be excluded from such registration to the extent so
required by such limitation. If, after the exclusion of such securities, further reductions are
still required, the number of securities included in the registration by each Holder shall be
reduced on a pro rata basis (based on the number of securities of the same class as the Registrable
Securities to be included in the underwriting held by such Holder), by such minimum number of
securities as is necessary to comply with such request. No Registrable Securities or any other
securities excluded from the underwriting by reason of the underwriter’s marketing limitation shall
be included in such registration. If any Other Stockholder who has requested inclusion in such
registration as provided above disapproves of the terms of the underwriting, such Person may elect
to withdraw therefrom by written notice to the Company, the underwriter and the Initiating Holders.
The securities so withdrawn shall also be withdrawn from registration. If the underwriter has not
limited the number of Registrable Securities or other securities to be underwritten, the Company
and officers and directors of the Company may include its or their securities of the same class as
the Registrable Securities to be included in the underwriting for its or their own account in such
registration if the Representative so agrees and if the number of Registrable Securities and other
securities which would otherwise have been included in such registration and underwriting will not
thereby be limited.

     (b) Company Registration.

          (i) If the Company shall determine to register any of its equity securities either for its own
account or for the account of Other Stockholders, other than a registration relating solely to
employee benefit plans, or a registration relating solely to a Commission Rule 145 transaction, or
a registration on any registration form (including Form S-4) which does not permit secondary sales
or does not include substantially the same information as would be required to be included in a
registration statement covering the sale of Registrable Securities, the Company will:

               (1) promptly give to each of the Holders a written notice thereof (which shall include a list
of the jurisdictions in which the Company intends to attempt to qualify such securities under the
applicable blue sky or other state securities laws); and

               (2) use its best efforts to include in such registration (and any related qualification under
blue sky laws or other compliance), and in any underwriting involved therein, all the Registrable
Securities specified in a written request or requests, made by the Holders within fifteen (15) days
after receipt of the written notice from the Company described in clause (i) above, except as set
forth in Section 2(b)(ii) below. Such written request may specify all or a part of the Holders’
Registrable Securities. In the event any Holder requests inclusion in a registration pursuant to
this Section 2(b) in connection with a distribution of Registrable Securities to its partners, the
registration shall provide for the resale by such partners, if requested by such Holder.

          (ii) Underwriting. If the registration of which the Company gives notice is for a
registered public offering of securities involving an underwriting, the Company shall so advise

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each of the Holders of Registrable Securities of the same class of securities that are being
registered as a part of the written notice given pursuant to Section 2(b)(i)(1). In such event, the
right of each of the Holders to registration pursuant to this Section 2(b) shall be conditioned
upon such Holders’ participation in such underwriting and the inclusion of such Holders’
Registrable Securities in the underwriting to the extent provided herein. The Holders whose
Registrable Securities are to be included in such registration shall (together with the Company and
the Other Stockholders distributing their securities through such underwriting) enter into an
underwriting agreement in customary form with the representative of the underwriter or underwriters
selected for underwriting by the Company. Notwithstanding any other provision of this Section 2(b),
if the representative of the underwriter or underwriters determines, based on the good-faith
judgment of the underwriter or underwriters, that marketing factors require a limitation on the
number of securities to be underwritten, the representative of the underwriter or underwriters may
(subject to the allocation priority set forth below) limit the number of Registrable Securities to
be included in the registration and underwriting to not less than twenty five percent (25%) of the
securities included therein (based on the number of securities, or in the case of PIK Notes, the
aggregate principal amount of the securities). The Company shall so advise all holders of
securities requesting registration, and the number of securities that are entitled to be included
in the registration and underwriting shall be allocated in the following manner: the securities of
the Company held by officers, directors and Other Stockholders of the Company (other than
Registrable Securities and other than securities held by holders who by contractual right demanded
such registration (“Demanding Holders”)) shall be excluded from such registration and underwriting
to the extent required by such limitation, and, if a limitation on the number of shares is still
required, the number of shares that may be included in the registration and underwriting by each of
the Holders and Demanding Holders shall be reduced, on a pro rata basis (based on the number of
Registrable Securities of the class being registered held by such Holder), by such minimum number
of shares as is necessary to comply with such limitation. If any of the Holders or any officer,
director or Other Stockholder disapproves of the terms of any such underwriting, such holder may
elect to withdraw therefrom by written notice to the Company and the underwriter. Any Registrable
Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from
such registration.

     (c) Form S-3. The Company shall use its best efforts to qualify for registration on
Form S-3 for secondary sales. After the Company has qualified for the use of Form S-3, the Holders
shall have the right to request three (3) registrations on Form S-3 (the right to one such request
shall be exercisable only by Thornwood (the “Thornwood Right”), the right to one such request shall
be exercisable only by the Trust (the “Trust Right”), and the right to one such request shall be
exercisable by Thornwood after it has exercised the Thornwood Right, by the Trust after it has
exercised the Trust Right, or by another Holder; and any such requests shall be in writing and
shall state the number of shares of Registrable Securities to be disposed of and the intended
method of disposition of shares by such holders), provided that the Company shall not be obligated
to effect, or take any action to effect, any such registration pursuant to this Section 2(c):

          (i) Unless the Holder or Holders requesting registration propose to dispose of Registrable
Securities having an aggregate price to the public (before deduction of Selling Expenses) of more
than $5,000,000;

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          (ii) Within 180 days of the effective date of the most recent registration pursuant to this
Section 2(c) in which Securities held by the requesting Holder could have been included for sale or
distribution;

          (iii) In any particular jurisdiction in which the Company would be required to execute a
general consent to service of process in effecting such registration, qualification or compliance,
unless the Company is already subject to service in such jurisdiction and except as may be required
by the Securities Act or applicable rules or regulations thereunder;

          (iv) During the period starting with the date sixty (60) days prior to the Company’s good
faith estimate of the date of filing of, and ending on the date six (6) months immediately
following the effective date of, any registration statement pertaining to securities of the Company
in which Securities held by the requesting Holder could have been included for sale or distribution
(other than a registration of securities in a Rule 145 transaction or with respect to an employee
benefit plan); provided that the Company is actively employing in good faith all reasonable efforts
to cause such registration statement to become effective; provided, however, that the Company may
only delay an offering pursuant to this Section 2(c)(iv) for a period of not more than sixty (60)
days, if a filing of any other registration statement is not made within that period and the
Company may only exercise this right once in any twelve (12) month period; or

          (v) If the Company shall furnish to the Holders a certificate signed by an officer of the
Company stating that in the good faith judgment of the Board of Directors it would be significantly
detrimental to the Company or its stockholders for a registration statement to be filed in the near
future, in which case the Company’s obligation to use its best efforts to comply with this Section
2(c) shall be deferred for a period not to exceed ninety (90) days from the date of receipt of
written request from the Holders; provided, however, that the Company shall not exercise such right
more than once in any six-month period.

The Company shall give written notice to all Holders of the receipt of a request for registration
pursuant to this Section 2(c) and shall provide a reasonable opportunity for other Holders to
participate in the registration; provided that if the registration is for an underwritten offering,
the terms of Section 2(a)(ii) shall apply to all participants in such offering. Subject to the
foregoing, the Company will use its best efforts to effect promptly the registration of all
Registrable Securities on Form S-3 to the extent requested by the Holder or Holders thereof for
purposes of disposition. In the event any Holder requests a registration pursuant to this Section
2(c) in connection with a distribution of Registrable Securities to its partners, the registration
shall provide for the resale by such partners, if requested by such Holder.

     (d) Expenses of Registration. All Registration Expenses incurred in connection with
any registration, qualification or compliance pursuant to this Section 2 shall be borne by the
Company, and all Selling Expenses shall be borne by the Holders of the securities so registered pro
rata on the basis of the number of their shares so registered.

     (e) Registration Procedures. In the case of each registration effected by the Company

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pursuant to this Section 2, the Company will keep the Holders that have requested inclusion of
Registrable Securities in such registration, as applicable, advised in writing as to the filing of
each registration with the Commission and as to the effectiveness thereof. The Company will:

          (i) use its best efforts to keep such registration effective for a period of one hundred
twenty (120) days or until the Holders (or in the case of a distribution to the partners of such
Holder, such partners), as applicable, have completed the distribution described in the
registration statement relating thereto, whichever first occurs; provided, however, that (A) such
120-day period shall be extended for a period of time equal to the period during which the Holders
or partners, as applicable, refrain from selling any securities included in such registration in
accordance with provisions in Section 2(i) or Section 2(j) hereof; and (B) in the case of any
registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous
or delayed basis, such 120-day period shall be extended until all such Registrable Securities are
sold, provided that Rule 415, or any successor rule under the Securities Act, permits an offering
on a continuous or delayed basis, and provided further that applicable rules under the Securities
Act governing the obligation to file a post-effective amendment permit, in lieu of filing a
post-effective amendment which (y) includes any prospectus required by Section 10(a) of the
Securities Act or (z) reflects facts or events representing a material or fundamental change in the
information set forth in the registration statement, the incorporation by reference of information
required to be included in (y) and (z) above to be contained in periodic reports filed pursuant to
Section 12 or 15(d) of the Exchange Act in the registration statement;

          (ii) furnish such number of prospectuses and other documents incident thereto as each of the
Holders, as applicable, from time to time may reasonably request;

          (iii) notify each Holder of Registrable Securities covered by such registration at any time
when a prospectus relating thereto is required to be delivered under the Securities Act of the
happening of any event as a result of which the prospectus included in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing; and

          (iv) furnish, on the date that such Registrable Securities are delivered to the underwriters
for sale, if such securities are being sold through underwriters or, if such securities are not
being sold through underwriters, on the date that the registration statement with respect to such
securities becomes effective, (1) an opinion, dated as of such date, of the counsel representing
the Company for the purposes of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering and reasonably satisfactory to a Majority in
Interest of the Holders participating in such registration, addressed to the underwriters, if any,
and to the Holders participating in such registration and (2) a letter, dated as of such date, from
the independent certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten
public offering and reasonably satisfactory to a Majority in Interest of the Holders participating
in such registration, addressed to the underwriters, if any, and if permitted by applicable
accounting standards, to the Holders participating in such registration. Solely for

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purposes of this Section 2(e), a “Majority in Interest of the Holders participating in such
registration” shall be calculated as if all securities included in such a registration were
Reorganization Common Stock as follows: Reorganization Common Stock shall be calculated based on
the number of shares of Reorganization Common Stock participating in such registration; Warrants
shall be calculated based on the number of shares of Reorganization Common Stock issuable upon
exercise of the Warrants participating in such registration and PIK Debt shall be calculated based
on the principal amount of the PIK Debt participating in such registration divided by the last
reported closing sale price of the Reorganization Common Stock immediately prior to the effective
date of the registration statement with respect to such securities, or if the Reorganization Common
Stock is not then listed on an exchange, as determined by the Board of Directors of the Company in
good faith.

     (f) Indemnification.

          (i) The Company will indemnify each of the Holders, as applicable, each of its officers,
directors and partners, and each Person controlling each of the Holders, with respect to each
registration which has been effected pursuant to this Section 2, and each underwriter, if any, and
each person who controls any underwriter, against all claims, losses, damages and liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any prospectus, offering circular or other document
(including any related registration statement, notification or the like) incident to any such
registration, qualification or compliance, or based on any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, or any violation by the Company of the Securities Act or the Exchange Act or any
rule or regulation thereunder applicable to the Company and relating to action or inaction required
of the Company in connection with any such registration, qualification or compliance, and will
reimburse each of the Holders, each of its officers, directors and partners, and each Person
controlling each of the Holders, each such underwriter and each Person who controls any such
underwriter, for any legal and any other expenses reasonably incurred in connection with
investigating and defending any such claim, loss, damage, liability or action, provided that the
Company will not be liable in any such case to the extent that any such claim, loss, damage,
liability or expense arises out of or is based on any untrue statement or omission based upon
written information furnished to the Company by the Holders or underwriter and stated to be
specifically for use therein.

          (ii) Each Holder will, if Registrable Securities held by it are included in the securities as
to which such registration, qualification or compliance is being effected, indemnify the Company,
each of its directors and officers and each underwriter, if any, of the Company’s securities
covered by such a registration statement, each person who controls the Company or such underwriter,
and each other Holder, each Other Stockholder and each of their officers, directors, and partners,
and each person controlling such other Holder and Other Stockholder against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document made by the indemnifying Holder, or any
omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements by the indemnifying Holder

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therein not misleading, and will reimburse the Company and such other Holders, Other Stockholders,
directors, officers, partners, persons, underwriters or control persons for any legal or any other
expenses reasonably incurred in connection with investigating or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent, that such untrue
statement (or alleged untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in reliance upon and in
conformity with written information furnished to the Company by the indemnifying Holder and stated
to be specifically for use therein; provided, however, that the obligations of each Holder
hereunder shall be limited to an amount equal to the net proceeds to such Holder of securities sold
as contemplated herein.

          (iii) Each party entitled to indemnification under this Section 2(f) (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct
the defense of such claim or any litigation resulting therefrom, shall be approved by the
Indemnified Party (whose approval shall not unreasonably be withheld) and the Indemnified Party may
participate in such defense at such party’s expense (unless the Indemnified Party shall have
reasonably concluded that there may be a conflict of interest between the Indemnifying Party and
the Indemnified Party in such action, in which case the fees and expenses of counsel shall be at
the expense of the Indemnifying Party), and provided further that the failure of any Indemnified
Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations
under this Section 2(f) unless the Indemnifying Party is materially prejudiced thereby. No
Indemnifying Party shall be liable for any settlement of any action or proceeding effected without
its written consent. No Indemnifying Party, in the defense of any such claim or litigation shall,
except with the consent of each Indemnified Party, consent to entry of any judgment or enter into
any settlement which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or
litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in
question as an Indemnifying Party may reasonably request in writing and as shall be reasonably
required in connection with the defense of such claim and litigation resulting therefrom.

          (iv) If the indemnification provided for in this Section 2(f) is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim,
damage or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions which resulted in
such loss, liability, claim, damage or expense, as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be
determined by reference to, among other things, whether the untrue (or alleged untrue) statement of
a material fact or the omission (or alleged omission) to state a material fact relates to
information supplied by the Indemnifying Party or by the Indemnified Party and the parties’

11

 

relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.

          (v) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with any
underwritten public offering contemplated by this Agreement are in conflict with the foregoing
provisions, the provisions in such underwriting agreement shall be controlling.

          (vi) The foregoing indemnity agreement of the Company and Holders is subject to the condition
that, insofar as they relate to any loss, claim, liability or damage arising out of a statement
made in or omitted from a preliminary prospectus but eliminated or remedied in the amended
prospectus on file with the Commission at the time the registration statement in question becomes
effective or the amended prospectus is filed with the Commission pursuant to Commission Rule 424(b)
(the “Final Prospectus”), such indemnity or contribution agreement shall not inure to the benefit
of any underwriter or Holder if a copy of the Final Prospectus was furnished to such underwriter or
Holder and was not furnished to the Person asserting the loss, liability, claim or damage at or
prior to the time such action is required by the Securities Act.

     (g) Information by the Holders.

          (i) Each of the Holders holding securities included in any registration shall furnish to the
Company such information regarding such Holder and the distribution proposed by such Holder as the
Company may reasonably request in writing and as shall be reasonably required in connection with
any registration, qualification or compliance referred to in this Section 2.

          (ii) In the event that, either immediately prior to or subsequent to the effectiveness of any
registration statement, any Holder shall distribute Registrable Securities to its partners, such
Holder shall so advise the Company and provide such information as shall be necessary to permit an
amendment to such registration statement to provide information with respect to such partners, as
selling securityholders. Promptly following receipt of such information, the Company shall file an
appropriate amendment to such registration statement reflecting the information so provided. Any
incremental expense to the Company resulting from such amendment shall be borne by such Holder.

     (h) Rule 144 Reporting. With a view to making available the benefits of certain rules
and regulations of the Commission which may permit the sale of restricted securities to the public
without registration, the Company agrees to:

          (i) make and keep public information available as those terms are understood and defined in
Rule 144 under the Securities Act (“Rule 144”), at all times from and after ninety (90) days
following the effective date of the first registration under the Securities Act filed by the
Company for an offering of its securities to the general public;

          (ii) use its best efforts to file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act at

12

 

any time after it has become subject to such reporting requirements; and

          (iii) so long as the Holder owns any Registrable Securities, furnish to the Holder upon
request, a written statement by the Company as to its compliance with the reporting requirements of
Rule 144, and of the Securities Act and the Exchange Act, a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents so filed as the Holder may
reasonably request in availing itself of any rule or regulation of the Commission allowing the
Holder to sell any such securities without registration.

     (i) “Market Stand-off” Agreement. Each of the Holders agrees, if requested by the
Company or an underwriter of securities of the Company, not to sell or otherwise transfer or
dispose of any Registrable Securities held by such Holder during the 180-day period following the
effective date of a registration statement of the Company filed under the Securities Act; provided
that all officers and directors of the Company enter into similar agreements; and provided, further
that under no circumstances shall the provisions of this Section 2(i) limit the ability of a Holder
to sell, transfer, or dispose of (i) PIK Debt, if the securities being sold in such an underwritten
offering do not consist of debt securities or (ii) Reorganization Common Stock or Warrants if the
securities being sold in such an underwritten offering do not consist of equity securities or
securities convertible into equity securities. If requested by the underwriters, the Holders shall
execute a separate agreement to the foregoing effect. The Company may impose stop-transfer
instructions with respect to the shares (or securities) subject to the foregoing restriction until
the end of said 180-day period. The provisions of this Section 2(i) shall be binding upon any
transferee who acquires Registrable Securities.

     (j) Suspension of Effectiveness. If the Company furnishes to the Holders of
Registrable Securities included in an effective registration statement under this Agreement a
certificate signed by an officer of the Company stating that in the good faith judgment of the
Board of Directors the continued effectiveness of any registration statement effected hereunder
would be significantly detrimental to the Company or its stockholders, then the Company may suspend
effectiveness of such registration statement for a period not to exceed ninety (90) days (the
“Suspension Period”); provided, however, that the Company shall not exercise such right more than
once in any six-month period. During any Suspension Period, each Holder agrees that it shall not
offer or sell any Securities pursuant to the registration statement that has been suspended until
such Holder receives written notice from the Company that the Suspension Period has terminated and
that the sale of Securities under the registration statement may be resumed.

SECTION 3. MISCELLANEOUS

     (a) Directly or Indirectly. Where any provision in this Agreement refers to action to
be taken by any Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person.

     (b) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed entirely
within such State.

13

 

     (c) Section Headings. The headings of the sections and subsections of this Agreement
are inserted for convenience only and shall not be deemed to constitute a part thereof.

     (d) Notices.

          (i) All communications under this Agreement shall be in writing and shall be delivered by hand
or facsimile or mailed by overnight courier or by registered or certified mail, postage prepaid:

               (1) if to the Company, to Federal-Mogul Corporation, 26555 Northwestern Highway, Southfield,
MI 48033, Attention: General Counsel (facsimile: (248) 354-8950, or at such other address as it may
have furnished in writing to the Holders.

               (2) if to the Holders, at the address or facsimile number listed on Schedule I hereto, or at
such other address or facsimile number as may have been furnished the Company in writing.

          (ii) Any notice so addressed shall be deemed to be given: if delivered by hand or facsimile,
on the date of such delivery; if mailed by overnight courier, on the first business day following
the date of such mailing; and if mailed by registered or certified mail, on the third business day
after the date of such mailing.

     (e) Reproduction of Documents. This Agreement and all documents relating thereto,
including, without limitation, any consents, waivers and modifications which may hereafter be
executed may be reproduced by the Holders by any photographic, photostatic, microfilm, microcard,
miniature photographic or other similar process and the Holders may destroy any original document
so reproduced. The parties hereto agree and stipulate that any such reproduction shall be
admissible in evidence as the original itself in any judicial or administrative proceeding (whether
or not the original is in existence and whether or not such reproduction was made by the Holders in
the regular course of business) and that any enlargement, facsimile or further reproduction of such
reproduction shall likewise be admissible in evidence.

     (f) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties.

     (g) Entire Agreement; Amendment and Waiver. This Agreement constitutes the entire
understanding of the parties hereto and supersedes all prior understanding among such parties. This
Agreement may be amended, and the observance of any term of this Agreement may be waived, with (and
only with) the written consent of the Company and the Holders holding a Majority in Interest of the
then outstanding Registrable Securities; provided that Sections 2(a) (Requested Registration), 2(c)
(Form S-3), and 2(f) (Indemnification), and this Section 3(g), along with the Definitions
pertaining thereto, shall not be amended without the consent of Thornwood and the Trust. Solely
for purposes of this Section 3(g), the “Holders holding a Majority in Interest of the then
outstanding Registrable Securities” shall be calculated as if all such Registrable Securities were
shares of Reorganization Common Stock as follows:

14

 

Reorganization Common Stock shall be calculated based on the number of shares of such
Reorganization Common Stock; Warrants shall be calculated based on the number of shares of
Reorganization Common Stock issuable upon exercise of such Warrants and PIK Debt shall be
calculated based on the principal amount of such PIK Debt divided by the last reported closing sale
price of the Reorganization Common Stock immediately prior to the effective date of such amendment
or waiver or if the Reorganization Common Stock is not then listed on an exchange, as determined by
the Board of Directors of the Company in good faith.

     (h) Severability. In the event that any part or parts of this Agreement shall be held
illegal or unenforceable by any court or administrative body of competent jurisdiction, such
determination shall not affect the remaining provisions of this Agreement which shall remain in
full force and effect.

     (i) No Third Party Beneficiaries. The parties hereto acknowledge and agree that there
are no intended third party beneficiaries to this Agreement and no third parties have any rights
under or relating to this Agreement

     (j) Counterparts. This Agreement may be executed in two or more counterparts
(including by facsimile), each of which shall be deemed an original and all of which together shall
be considered one and the same agreement.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 	 	 
	 	 	FEDERAL-MOGUL CORPORATION  
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THORNWOOD ASSOCIATES LIMITED PARTNERSHIP

By: Barberry Corp., its general partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Edward E. Mattner

Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	FEDERAL-MOGUL U.S. ASBESTOS PERSONAL INJURY TRUST
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

15

 

Schedule I

Major Holders

Investor Name and Address

Thornwood Associates Limited Partnership

c/o Icahn Associates Corp.

767 Fifth Avenue, Suite 4700

New York, NY 10153

Federal-Mogul U.S. Asbestos Personal Injury Trust

[ADDRESS]

[ANY OTHER 10% HOLDERS]

16

 

Schedule II

Holders

17exv4w1

 

Exhibit 4.1

Form of Warrant Agreement

 

WARRANT AGREEMENT

between

FEDERAL-MOGUL CORPORATION

and

[                                        ]

as Warrant Agent

Warrants to Purchase 6,951,871 Shares of Class A Common Stock

Dated as of [     ],200[  ]

 

 

 

     THIS WARRANT AGREEMENT (this “Warrant Agreement”), dated as of                     , 200___, is made by
and between Federal-Mogul Corporation, a Michigan corporation (the “Company”), and
                    , as warrant agent (the “Warrant Agent”).

WITNESSETH :

     WHEREAS, the Company proposes to issue warrants (the “Warrants”) to purchase Common Stock (as
defined below) pursuant to the Company’s Second Amended Joint Plan of Reorganization under Chapter
11 of the Bankruptcy Code (the “Plan of Reorganization”), as confirmed pursuant to the order, dated
[ ], 2004, of the United States Bankruptcy Court for the District of Delaware, and the terms
and conditions of this Warrant Agreement; and

     WHEREAS, the Company has requested the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing so to act, in connection with the issuance, division, transfer, exchange
and exercise of Warrants pursuant to the terms and conditions of this Warrant Agreement;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth,
the parties hereto agree as follows:

     1. Definitions. As used in this Warrant Agreement, the following capitalized terms
have the respective meanings set forth below:

     “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Warrant, the rules and procedures of the Depositary that apply
to such transfer or exchange.

     “Business Day” shall mean any day that is not a Saturday or Sunday or a day on which
banks are required or permitted to be closed in the State of New York or the State of Michigan.

     “Common Stock” shall mean the Class A Common Stock of the Company.

     “Company” has the meaning specified in the preamble hereof.

     “Definitive Warrants” means Warrants issued in definitive form as set forth in Section
5.1 hereof.

     “Depositary” shall mean the Person specified in Section 3.2 hereof as the Depositary
with respect to the Warrants and any and all successors thereto appointed as Depositary hereunder.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exercise Price” shall be equal to $45.8151 per share of Common Stock, as
such price may be adjusted pursuant to Section 6 of this Agreement.

 

			
	1	 	Representing a pro forma equity value for Reorganized
Federal-Mogul of $4.9 billion.

 

 

     “Expiration Date” shall mean                     , 2011.2 After the Expiration Date,
the Warrants will become void and of no value.

     “Global Warrants” means a global Warrant substantially in the form of Exhibit A hereto
bearing the Global Warrant Legend and deposited with or on behalf of, and registered in the name
of, the Depositary or its nominee.

     “Global Warrant Legend” means the legend set forth in Section 5.4, which is required
to be placed on all Global Warrants issued under this Warrant Agreement.

     “Holder” shall mean the Person in whose name a Warrant is registered in the warrant
register of the Company maintained by or on behalf of the Company for such purpose.

     “Officer” shall mean the President, any Vice-President or the Treasurer of the
Company.

     “Other Property” shall have the meaning set forth in Section 6.3.

     “Person” shall mean any individual, sole proprietorship, partnership, joint venture,
trust, incorporated organization, association, corporation, limited liability company, limited
liability partnership, institution, public benefit corporation, entity or government (whether
federal, state, county, city, municipal or otherwise, including, without limitation, any
instrumentality, division, agency, body or department thereof).

     “Transaction” shall have the meaning set forth in Section 6.3.

     “Warrants” has the meaning specified in the recitals hereto, and shall include all
Warrants issued upon registration of transfer, division or combination of, or in substitution for,
any thereof. All Warrants shall be issued in the form of a Global Warrant.

     “Warrant Agent” has the meaning specified in the preamble hereof and shall include any
successor Warrant Agent hereunder.

     “Warrant Agent’s Principal Office” shall mean the principal office of the Warrant
Agent at                                          (or such other office of the Warrant Agent or any successor
thereto hereunder acceptable to the Company as set forth in a written notice provided to the
Company and the Holders).

     “Warrant Agreement” has the meaning specified in the preamble hereof.

     “Warrant Price” shall mean an amount equal to (i) the number of shares of Common Stock
being purchased upon exercise of a Warrant pursuant to Section 4.1, multiplied by (ii) the Exercise
Price.

     “Warrant Stock” shall mean the shares of Common Stock purchased by the Holders of the
Warrants upon the exercise thereof.

 

			
	2	 	The 7th anniversary of the Effective Date.

- 2 -

 

     2. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act
as agent for the Company in accordance with the instructions set forth in this Warrant Agreement,
and the Warrant Agent hereby accepts such appointment.

     3. Issuance; Registration; Form and Execution of Warrants.

          3.1. Issuance. The Company hereby authorizes the Warrants and issues and grants to
the Holders listed on Schedule A hereto the number of Warrants set forth opposite the name of such
Holder on Schedule A attached hereto. The aggregate number of Warrants to be issued under this
Agreement is 6,951,871.3 Each Warrant shall entitle the Holder, subject to the
satisfaction of the conditions to exercise set forth in Section 4 hereof, to purchase from and
after the date hereof and until 5:00 p.m., New York City time, on the Expiration Date, one share of
Common Stock at the Exercise Price. The number of Warrants issued to the Holders pursuant to this
Warrant Agreement, the number of shares of Common Stock issuable on exercise of each Warrant and
the Exercise Price are all subject to adjustment pursuant to Section 6 hereof.

          3.2. Warrant Registrar and Depositary. A register of the Warrants and of their
transfer shall be maintained at the Warrant Agent’s Principal Office by the Warrant Agent (the
“Warrant Register”).

     The Company initially appoints the Warrant Agent to act as the registrar with respect to the
Global Warrants (the “Warrant Registrar”).

     The Company initially appoints The Depository Trust Company to act as Depositary with respect
to the Global Warrants.

          3.3. Form of Warrant.

               (a) General. The Warrants shall be issued in global form and shall be substantially
in the form of Exhibit A hereto (including the Global Warrant Legend thereon and the “Schedule of
Exchanges of Interests in the Global Warrant” attached thereto). The Warrants may have notations,
legends or endorsements required by law, stock exchange rule or usage. Warrants shall be dated the
date of the countersignature.

     The terms and provisions contained in the Warrants shall constitute, and are hereby expressly
made, a part of this Warrant Agreement. The Company and the Warrant Agent, by their execution and
delivery of this Warrant Agreement, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Warrant conflicts with the express provisions
of this Warrant Agreement, the provisions of this Warrant Agreement shall govern and be
controlling.

               (b) Global Warrants. Each Global Warrant shall represent such of the outstanding
Warrants as shall be specified therein and shall provide that it shall represent the number of
outstanding Warrants from time to time endorsed thereon and that the number of

 

			
	3	 	6.5% of the number of shares of Common Stock and Class
B Common Stock of the Company to be outstanding on the Effective Date on a
fully-diluted basis.

- 3 -

 

outstanding Warrants represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions.

          3.4. Execution of Warrants. An Officer shall sign the Warrants on behalf of the
Company by manual or facsimile signature.

     If the Officer whose signature is on a Warrant no longer holds that office at the time a
Warrant is countersigned, the Warrant shall nevertheless be valid.

     A Warrant shall not be valid until countersigned by the manual signature of the Warrant Agent.
The signature shall be conclusive evidence that the Warrant has been properly issued under this
Warrant Agreement.

     The Warrant Agent shall, upon a written order of the Company signed by an Officer, countersign
Warrants for original issue up to the number stated in Section 3.1 hereof. The Warrant Agent may
appoint an agent acceptable to the Company to countersign Warrants. Such an agent may countersign
Warrants whenever the Warrant Agent may do so. Each reference in this Warrant Agreement to a
countersignature by the Warrant Agent includes a countersignature by such agent. Such agent shall
have the same rights as the Warrant Agent in dealing with the Company.

     4. Exercise of Warrants.

          4.1. Manner of Exercise. In order to exercise all or any of the Warrants, the
exercising Holder whose name appears on a securities position listing of the Depositary as the
holder of such book-entry interest must comply with the Depositary’s procedures relating to the
exercise of such book-entry interest in such Global Warrant. In addition, the Holder shall deliver
to the Company at the Warrant Agent’s Principal Office (i) the Form of Election to Purchase
substantially in the form included in the form of Warrant Certificate attached hereto as Exhibit A
duly executed by such Holder or its agent or attorney and (ii) payment of the Warrant Price to the
Warrant Agent for the account of the Company.

          4.2. Payment of Taxes. The Company shall pay all expenses and costs in connection
with the issuance or delivery of the Warrants. The Holder shall be responsible for any taxes or
other governmental charges imposed on such Holder with respect to the issuance or delivery of the
Warrants or any transfer thereof.

          4.3. Fractional Shares. The Company shall not issue fractional shares of Common Stock
upon exercise of any Warrant. Whenever any distribution of Warrants exercisable into fractional
shares of Common Stock would otherwise be called for, the actual distribution thereof shall be
rounded as follows: (i) fractions of 1/2 or greater shall be rounded to the next higher whole number
and (ii) fractions of less than 1/2 shall be rounded to the next lower whole number.

     5. Transfer and Exchange.

          5.1. Transfer and Exchange of Global Warrants. A Global Warrant may not be
transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of

- 4 -

 

the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary
or any such nominee to a successor Depositary or a nominee of such successor Depositary. All
Global Warrants will be exchanged by the Company for Definitive Warrants if (i) the Company
delivers to the Warrant Agent notice from the Depositary that it is unwilling or unable to continue
to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act
and, in either case, a successor Depositary is not appointed by tile Company within 120 days after
the date of such notice from the Depositary or (ii) the Company in its sole discretion determines
that the Global Warrants (in whole but not in part) should be exchanged for Definitive Warrants and
delivers a written notice to such effect to the Warrant Agent. Upon the occurrence of either of
the preceding events, Definitive Warrants shall be issued in such names as the Depositary shall
instruct the Warrant Agent. Global Warrants may also be exchanged or replaced, in whole or in
part, as provided in Section 11 hereof. A Global Warrant may not be exchanged for another Warrant
other than as provided in this Section 5.1; however, beneficial interests in a Global Warrant may
be transferred and exchanged as provided in Section 5.2 hereof.

          5.2. Transfer and Exchange of Beneficial Interests in the Global Warrants. The
transfer and exchange of beneficial interests in the Global Warrants shall be effected through the
Depositary, in accordance with the Applicable Procedures.

          5.3. Transfer and Exchange of Definitive Warrants for Definitive Warrants. Upon
request by a holder of Definitive Warrants and such holder’s compliance with the provisions of this
Section 5.3, the Warrant Registrar shall register the transfer or exchange of Definitive Warrants
on the Warrant Register. Prior to such registration of transfer or exchange, the requesting holder
shall present or surrender to the Warrant Registrar the Definitive Warrants duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the Warrant Registrar duly
executed by such holder or by its attorney, duly authorized in writing.

          5.4. Global Warrant Legend. Each Global Warrant shall bear a legend in substantially
the following form:

“THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE WARRANT AGREEMENT
GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE
WARRANT AGENT MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 5 OF THE
WARRANT AGREEMENT, (II) THIS GLOBAL WARRANT MAY BE EXCHANGED IN WHOLE BUT NOT IN PART
PURSUANT TO SECTION 5.1 OF THE WARRANT AGREEMENT, (III) THIS GLOBAL WARRANT MAY BE DELIVERED
TO THE WARRANT AGENT FOR CANCELLATION PURSUANT TO SECTION 13.5 OF THE WARRANT AGREEMENT AND
(IV) THIS GLOBAL WARRANT MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY.”

          5.5. General Provisions Relating to Transfers and Exchanges.

- 5 -

 

               (a) To permit registrations of transfers and exchanges, the Company shall execute and the
Warrant Agent shall countersign Global Warrants and Definitive Warrants upon the Company’s order or
at the Warrant Registrar’s request.

               (b) No service charge shall be made to a holder of a beneficial interest in a Global Warrant
or to a holder of a Definitive Warrant for any registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any transfer tax or governmental charge
payable in connection therewith.

               (c) All Global Warrants and Definitive Warrants issued upon any registration of transfer or
exchange of Global Warrants or Definitive Warrants shall be duly authorized, executed and issued
Warrants for Common Stock of the Company, not subject to any preemptive rights, and entitled to the
same benefits under this Warrant Agreement, as the Global Warrants or Definitive Warrants
surrendered upon such registration of transfer or exchange.

               (d) Prior to due presentment for the registration of a transfer of any Warrant, the Warrant
Agent, and the Company may deem and treat the Person in whose name any Warrant is registered as the
absolute owner of such Warrant for all purposes and neither the Warrant Agent nor the Company shall
be affected by notice to the contrary.

               (e) The Warrant Agent shall countersign Global Warrants and Definitive Warrants in accordance
with the provisions of Section 3.4 hereof.

          5.6. Facsimile Submissions to Warrant Agent. All instructions required to be
submitted to the Warrant Registrar, pursuant to this Section 5 to effect a registration of transfer
or exchange may be submitted by facsimile.

     6. Adjustments. The number of shares of Common Stock for which a Warrant is
exercisable, and the Exercise Price shall be subject to adjustment from time to time as set forth
in this Section 6.

          6.1. Stock Dividends Subdivisions and Combinations. If at any time the Company shall:
(i) take a record of the holders of its Common Stock for the purpose of entitling them to receive a
dividend payable in, or other, distribution of, additional shares of Common Stock; (ii) subdivide
its outstanding shares of Common Stock into a larger number of shares of Common Stock, or (iii)
combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock,
then (a) the number of shares of Common Stock for which a Warrant is exercisable immediately after
the occurrence of any such event shall be adjusted to equal the number of shares of Common Stock
that a record holder of the same number of shares of Common Stock for which a Warrant is
exercisable immediately prior to the occurrence of such event would own or be entitled to receive
after the happening of such event and (b) the Exercise Price shall be adjusted to equal (1) the
Exercise Price prior to such adjustment multiplied by the number of shares of Common Stock for
which a Warrant is exercisable immediately prior to the adjustment divided by (2) the number of
shares for which a Warrant is exercisable immediately after such adjustment.

          6.2. Other Provisions Applicable to Adjustments under this Section. The following
provisions shall be applicable to the making of adjustments of the number of shares of

- 6 -

 

Common Stock for which a Warrant is exercisable and the Exercise Price provided for in this
Section 6:

               (a) When Adjustments to Be Made. The adjustments required by this Section 6 shall be
made whenever and as often as any specified event requiring an adjustment shall occur, except that
any adjustment of the number of shares of Common Stock for which a Warrant is exercisable that
otherwise would be required may be postponed (except in the case of a subdivision or combination of
shares of Common Stock, as provided for in Section 6.1) up to, but not later than the date of
exercise if such adjustment either by itself or with other adjustments not previously made would
result in an increase or decrease, as the case may be, of less than 1% of the shares of Common
Stock for which a Warrant is exercisable immediately prior to the making of such adjustment. Any
adjustment representing a change of less than such minimum amount (except as aforesaid) which is
postponed shall be carried forward and made as soon as such adjustment, together with other
adjustments required by this Section 6 and not previously made, would result in a minimum
adjustment or on the date of exercise. For the purpose of any adjustment, any specified event
shall be deemed to have occurred at the close of business on the date of its occurrence.

               (b) Fractional Interests. In computing adjustments pursuant to this Section 6 (but
subject to Section 4.3), fractional interests in Common Stock shall be taken into account to the
nearest 1/1000th of a share,

          6.3. Reorganization, Reclassification, Merger, Consolidation or Sale of
Substantially all Assets of the Company. If the Company (or any other entity, the stock or
other securities of which are at the time receivable on the exercise of the Warrants) shall
reorganize its capital, reclassify its capital stock, consolidate or merge with or into another
Person (where the Company is not the surviving corporation or resulting entity or where there is a
change in or distribution with respect to the Common Stock of the Company), other than as a result
of a stock dividend, stock split, reverse stock split, recapitalization or the like provided for in
Section 6.1 above (each such event hereinafter referred to as a
“Transaction”‘), and
pursuant to the terms of any such Transaction, the consideration to be paid or distributed to or
otherwise received by the holders of Common Stock consists of shares of common stock of the
surviving corporation or resulting entity and/or any cash, shares of stock (not constituting common
stock) or other securities or property of any nature whatsoever (including warrants or other
subscription or purchase rights) (such non-common stock property hereinafter referred to as
“Other Property”), then each Holder shall have the right thereafter to receive, upon
exercise of a Warrant, solely the number of shares of common stock of the surviving corporation or
resulting entity and/or such amount of Other Property receivable pursuant to such Transaction by a
holder of the number of shares of Warrant Stock for which a Warrant is exercisable immediately
prior to the effective time of such Transaction. In the case of any Transaction of the type
described in the preceding sentence, it shall be a condition precedent to consummation of the
Transaction that the surviving corporation or resulting entity assume the due and punctual
observance and performance of each and every covenant and condition of this Warrant Agreement and
the Warrants to be performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as determined by resolution
of the Board of Directors of the Company) in order to provide for adjustments of shares of the
Warrant Stock for which a Warrant is exercisable which shall be as nearly equivalent as practicable
to the

- 7 -

 

adjustments provided for in this Section 6.3. For purposes of this Section 6.3, “common stock
of the surviving corporation or resulting entity” shall include stock of such corporation of any
class which does not have a preference as to dividends or assets over any other class of stock of
such corporation and which is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities which are convertible into or exercisable or
exchangeable for any such stock, either immediately or after the lapse of any prescribed time
period or the occurrence of a specified event, and any warrants or other rights to subscribe for or
purchase any such stock. The foregoing provisions of this Section 6.3 shall similarly apply to
successive Transactions.

          6.4. Certain Limitations. Notwithstanding anything herein to the contrary, the
Company agrees not to enter into any transaction which, by reason of any adjustment hereunder,
would cause the Exercise Price to be less than the par value per share of Common Stock (if any)
unless the Company shall take such corporate action in order that the Company may validly and
legally issue fully paid and nonassessable shares of such Common Stock at such adjusted Exercise
Price.

     7. Notice to Warrant Holders. Whenever the number of shares of Common Stock for which
a Warrant is exercisable, or whenever the Exercise Price shall be adjusted pursuant to Section 6,
the Company shall forthwith prepare a certificate setting forth, in reasonable detail, the event
requiring the adjustment and the method by which such adjustment was calculated, specifying the
number of shares of Common Stock for which a Warrant is exercisable and describing the number and
kind of any other shares of stock or Other Property for which a Warrant is exercisable, and any
change in the purchase price or prices thereof, after giving effect to such adjustment or change.
The Company shall promptly cause a signed copy of such certificate to be delivered to the Warrant
Agent in accordance with Section 14.2. The Company shall keep at its office or agency designated
by the Company pursuant to Section 12 copies of all such certificates and cause the same to be
available for inspection at said office during normal business hours by any Holder or any
prospective purchaser of a Warrant designated by a Holder thereof.

     8. No Impairment. The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this Warrant Agreement
or any Warrant. Without limiting the generality of the foregoing, the Company will (i) not
increase the par value of any shares of Common Stock receivable upon the exercise of a Warrant
above the amount payable therefor upon such exercise immediately prior to such increase in par
value and (ii) take all such action as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise
of any Warrant.

     9. Reservation and Authorization of Common Stock. From and after the date hereof, the
Company shall at all times reserve and keep available for issue upon the exercise of Warrants such
number of its authorized but unissued shares of Common Stock as will be sufficient to permit the
exercise in full of all outstanding Warrants. All shares of Common Stock which shall be so
issuable, when issued upon exercise of any Warrant and payment therefor in accordance

- 8 -

 

with the terms of this Warrant Agreement and such Warrant, shall be duly and validly issued
and fully paid and nonassessable, and not subject to preemptive rights.

     10. Stock and Warrant Transfer Books. The Company will not at any time, except upon
dissolution, liquidation or winding up of the Company, close its stock transfer books or Warrant
transfer books so as to result in preventing or delaying the exercise or transfer of any Warrant.

     11. Loss or Mutilation. Upon receipt by the Company and the Warrant Agent from any
Holder of evidence reasonably satisfactory to them of the ownership of and the loss, theft,
destruction or mutilation of such Holder’s Warrant and indemnity reasonably satisfactory to them,
and in case of mutilation upon surrender and cancellation thereof, the Company will execute and the
Warrant Agent will countersign and deliver in lieu hereof a new Warrant of like tenor and
representing an equal number of Warrants to such Holder; provided, in the case of mutilation, no
indemnity shall be required if such Warrant in identifiable form is surrendered to the Company or
the Warrant Agent for cancellation.

     12. Office of Company. As long as any of the Warrants remain outstanding, the Company
shall maintain an office or agency (which may be the principal executive offices of the Company)
where the Warrants may be presented for exercise, registration of transfer, division or combination
as provided in this Warrant Agreement. The Company shall initially maintain such an agency at the
Warrant Agent’s Principal Offices.

     13. Warrant Agent.

          13.1. Merger or Consolidation or Change of Name of Warrant Agent. Any Person into
which the Warrant Agent may be merged or with which it may be consolidated, or any Person resulting
from any merger or consolidation to which the Warrant Agent shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the Warrant Agent, shall
be the successor to the Warrant Agent hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto. If, at the time such successor by merger or
consolidation to the Warrant Agent shall succeed to the agency created by this Warrant Agreement,
any of the Warrants shall have been countersigned but not delivered, any such successor to the
Warrant Agent may adopt the countersignature of the predecessor Warrant Agent and deliver such
Warrants so countersigned; and if at that time any of the Warrants shall not have been
countersigned, any successor to the Warrant Agent may countersign such Warrants either in the name
of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and in all such
cases Warrants shall have the full force provided in the Warrants and in this Warrant Agreement.
If at any time the name of the Warrant Agent shall be changed and at such time any of the Warrants
shall have been countersigned but not delivered, the Warrant Agent may adopt the countersignatures
under its prior name and deliver such Warrants so countersigned; and if at that time any of the
Warrants shall not have been countersigned as provided in Section 3.4, the Warrant Agent may
countersign such Warrants either in its prior name or in its changed name; and in all such cases
such Warrants shall have the full force provided in the Warrants and in this Warrant Agreement.

- 9 -

 

          13.2. Certain Terms and Conditions Concerning the Warrant Agent. The Warrant Agent
undertakes the duties and obligations imposed by this Warrant Agreement upon the following terms
and conditions, by all of which the Company and the Holders, by their acceptance of Warrants, shall
be bound:

               (a) Correctness of Statements. The statements contained herein and in the Warrants
shall be taken as statements of the Company, and the Warrant Agent assumes no responsibility for
the correctness of any of the same. The Warrant Agent assumes no responsibility with respect to
the distribution of the Warrants except as herein expressly provided.

               (b) Breach of Covenants. The Warrant Agent shall not be responsible for any failure
of the Company to comply with any of the covenants contained in this Warrant Agreement or in the
Warrants to be complied with specifically by the Company.

               (c) Performance of Duties. The Warrant Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either itself or by or through
its attorneys or agents (which shall not include its employees) and shall not be responsible for
the misconduct or negligence of any agent appointed with due care.

               (d) Reliance on Counsel. The Warrant Agent may consult at any time with legal counsel
satisfactory to it, and the Warrant Agent shall incur no liability or responsibility to the Company
or to any Holder in respect of any action taken, suffered or omitted by it hereunder in good faith
and in accordance with the opinion or the advice of such counsel provided that such counsel shall
have been selected with due care.

               (e) Compensation and Indemnification. The Company agrees to pay to the Warrant Agent
reasonable compensation for all services rendered by the Warrant Agent in the performance of this
Warrant Agreement, to reimburse the Warrant Agent for all expenses, taxes and governmental charges
and other charges of any kind and nature incurred by the Warrant Agent in the performance of this
Warrant Agreement to indemnify the Warrant Agent and save it harmless against any and all
liabilities, including judgments, costs and counsel fees, for anything done or omitted by the
Warrant Agent in the performance of its duties and powers under this Warrant Agreement, except for
such liabilities that arise as a result of the Warrant Agent’s negligence, willful misconduct or
bad faith.

               (f) Legal Proceedings. The Warrant Agent shall be under no obligation to institute
any action, suit or legal proceeding or to take any other action likely to involve expense unless
the Company or one or more Holders shall furnish the Warrant Agent with reasonable security and
indemnity for any costs and expenses that may be incurred, but this provision shall not affect the
power of the Warrant Agent to take such action as the Warrant Agent may consider proper, whether
with or without any such security or indemnity. All rights of action under this Warrant Agreement
or under any of the Warrants may be enforced by the Warrant Agent without the possession of any of
the Warrants or the production thereof at any trial or other proceeding relative thereto, and any
such action, suit or proceeding instituted by the Warrant Agent shall be brought in its name as
Warrant Agent, and any recovery of judgment shall be for the ratable benefit of the Holders, as
their respective rights or interests may appear.

- 10 -

 

               (g) Other Transactions in Securities of the Company. Except as prohibited by law, the
Warrant Agent and any stockholder, director, officer or employee of the Warrant Agent may buy, sell
or deal in any of the Warrants or other securities of the Company or become pecuniarily interested
in any transaction in which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Warrant Agent under this Warrant
Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for
the Company or for any other legal entity.

               (h) Liability of Warrant Agent. The Warrant Agent shall act hereunder solely as
agent, and its duties shall be determined solely by the provisions hereof. The Warrant Agent shall
not be liable for anything that it may do or refrain from doing in connection with this Warrant
Agreement except for its own gross negligence or bad faith.

               (i) Reliance on Documents. The Warrant Agent will not incur any liability or
responsibility to the Company or to any Holder for any action taken in reliance on any notice,
resolution, waiver, consent, order, certificate, or other paper, document or instrument reasonably
believed by it to be genuine and to have been signed, sent or presented by the proper party or
parties.

               (j) Validity of Agreements. The Warrant Agent shall not be under any responsibility
in respect of the validity of this Warrant Agreement or the execution and delivery hereof (except
the due execution and delivery hereof by the Warrant Agent) or in respect of the validity or
execution of any Warrant (except its countersignature and delivery thereof); nor shall the Warrant
Agent by any act hereunder be deemed to make any representation or warranty as to the authorization
or reservation of any Common Stock (or other stock or other property) to be issued pursuant to this
Warrant Agreement or any Warrant, or as to whether any Common Stock (or other stock or other
property) will, when issued, be validly issued, fully paid and nonassessable, or as to the Warrant
Price or the number or amount of Common Stock or other securities or other property issuable upon
exercise of any Warrant.

               (k) Instructions from Company. The Warrant Agent is hereby authorized and directed to
accept instructions with respect to the performance of its duties hereunder from the President, a
Vice President, the Secretary or any Assistant Secretary of the Company, and to apply to such
officers for advice or instructions in connection with its duties, and shall not be liable for, any
action taken or suffered to be taken by it in good faith in accordance with instructions of any
such officer or officers.

          13.3. Change of Warrant Agent. The Warrant Agent may resign and be discharged from
its duties under this Warrant Agreement by giving to the Company 30 days’ advance notice in
writing. The Warrant Agent may be removed by like notice to the Warrant Agent from the Company.
If the Warrant Agent shall resign or be removed or shall otherwise become incapable of acting, the
Company shall appoint a successor to the Warrant Agent. If the Company shall fail to make such
appointment within a period of 30 days after such removal or after it has been notified in writing
of such resignation or incapacity by the resigning or incapacitated Warrant Agent, then any Holder,
may apply to a court of competent jurisdiction for the appointment of a successor to the Warrant
Agent. Pending the appointment of the successor warrant agent, the Company shall perform the
duties of the Warrant Agent. After appointment,

- 11 -

 

the successor warrant agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Warrant Agent without further act or deed;
provided, however, the former Warrant Agent shall be required to deliver and transfer to the
successor warrant agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Failure to file any notice
provided for in this Section 13.3, however, or any defect therein, shall not affect the legality or
validity of the resignation or removal of the Warrant Agent or the appointment of the successor
warrant agent, as the case may be. In the event of such resignation or removal, the successor
warrant agent shall mail, first class, to each Holder, written notice of such removal or
resignation and the name and address of such successor warrant agent.

          13.4. Disposition of Proceeds on Exercise of Warrants Inspection of Warrant
Agreement. The Warrant Agent shall account promptly to the Company with respect to
Warrants exercised and concurrently pay to the Company in immediately available funds all amounts
received by the Warrant Agent for the purchase of the Warrant Stock through the exercise of such
Warrants. The Warrant Agent shall, upon request of the Company from time to time, deliver to the
Company such complete reports of registered ownership of the Warrants and such complete records of
transactions with respect to the Warrants as the Company may request. The Warrant Agent shall also
make available to the Company for inspection by the Company’s agents or employees, from time to
time as the Company may request, such original books of accounts and records maintained by the
Warrant Agent in connection with the issuance and exercise of Warrants hereunder, such inspections
to occur at the Warrant Agent’s Principal Office. The Warrant Agent shall keep copies of this
Warrant Agreement and any notices given or, received hereunder available for inspection by the
Company or the Holders at the Warrant Agent’s Principal Office. The Company shall supply the
Warrant Agent from time to time with such numbers of copies of this Warrant Agreement as the
Warrant Agent may request.

          13.5. Cancellation. The Warrant Agent shall cancel all Warrant certificates properly
surrendered for exercise, exchange, substitution, or transfer. The Warrant Agent shall destroy all
cancelled Warrant certificates and, if requested, deliver a certificate of such destruction to the
Company.

          13.6. Survival. This Section 13 shall survive the resignation or removal of the
Warrant Agent and the termination of this Warrant Agreement.

     14. Miscellaneous.

          14.1. Rights of Holders. Holders of unexercised Warrants are not entitled to (i)
receive dividends or other distributions, (ii) receive notice of or vote at any meeting of the
stockholders, (iii) consent to any action of the stockholders, (iv) exercise any preemptive right,
or (v) exercise any other right whatsoever granted to stockholders of the Company.

          14.2. Notice Generally. Any notice, demand, request, consent, approval, declaration,
delivery or other communication hereunder to be made pursuant to the provisions of this Warrant
Agreement shall be sufficiently given or made if in writing and either delivered in person with
receipt acknowledged or sent by registered or certified mail, return receipt requested, postage
prepaid or by facsimile, addressed as follows:

- 12 -

 

     If to any Holder or holder of Warrant Stock, at its last known address appearing on the
Warrant Register of the Company maintained for such purpose.

If to the Company at:

Federal-Mogul Corporation

26555 Northwestern Highway

Southfield, Michigan 48034

Attention: General Counsel

Telephone: (248) 354-7055

Fax: (248) 354-8103

If to the Warrant Agent at:

_____________________

_____________________

_____________________

Attention:

Telephone:

Fax:

or at such other address as may be substituted by notice given as herein provided. The giving of
any notice required hereunder may be waived in writing by the party entitled to receive such
notice. Every notice, demand, request, consent, approval, declaration, delivery or other
communication hereunder shall be deemed to have been duly given or served on the date on which
personally delivered, the first Business Day after delivery by facsimile, receipt acknowledged, or
the third Business Day after deposit in the United States mail, whichever is earliest.

          14.3. Successors and Assigns. All covenants and provisions of this Warrant Agreement
by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of
their respective successors and assigns hereunder.

          14.4. Supplements and Amendment. This Warrant Agreement constitutes the entire
agreement and supersedes all other prior agreements and understandings, both written and oral,
among the parties, or any of them, with respect to the subject matter hereof and may not be
amended, except in a writing signed by both of them.

     The Company and the Warrant Agent may from time to time supplement or amend this Warrant
Agreement (a) without the approval of any Holders of Warrants in order to cure any ambiguity,
manifest error or other mistake in this Warrant Agreement, or to correct or supplement any
provision contained herein that may be defective or inconsistent with any other provision herein,
or to make any other provisions in regard to matters or questions arising hereunder that the
Company and the Warrant Agent may deem necessary or desirable and that shall not adversely affect,
alter or change the interests of the Holders of the Warrants or (b) with the prior written consent
of Holders of the Warrants exercisable for a majority of the Common Stock then issuable upon
exercise of the Warrants then outstanding; provided, however, that each

- 13 -

 

amendment or supplement that decreases the Warrant Agent’s rights or increases its duties and
responsibilities hereunder shall also require the prior written consent of the Warrant Agent.

          14.5. Third-Party Beneficiaries. All covenants and provisions of this Warrant
Agreement shall inure to the benefit of each Holder from time to time of Warrants.

          14.6. Severability. Wherever possible, each provision of this Warrant Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Warrant Agreement.

          14.7. Headings. The headings used in this Warrant Agreement are for the convenience
of reference only and shall not, for any purpose, be deemed a part of this Warrant Agreement.

          14.8. Governing Law. This Warrant Agreement and the Warrants shall be governed by the
laws of the State of Michigan, without regard to the provisions thereof relating to conflict of
laws.

          14.9. Counterparts. This Warrant Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.

     IN WITNESS WHEREOF, each of the Company and the Warrant Agent has caused this Warrant
Agreement to be executed by its duly authorized officers as of the date first above written.

	 	 	 	 	 	 	 
	 	 	FEDERAL-MOGUL CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	As Warrant Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

- 14 -

 

	 	 	 
	 	 	Schedule
A
	 
	 	 
	Holder

	 	Aggregate Number of Warrants

- 15 -

 

Exhibit A

[Form of Face of Warrant Certificate]

WARRANT

TO PURCHASE CLASS A COMMON STOCK

OF

FEDERAL-MOGUL CORPORATION

			
	 	 	 
	Certificate No.:                     
	 	Number of Warrants:                    

     Exercisable from and after the date hereof until 5:00 p.m., New York City time on                     ,
20         (the “Expiration Date”).

THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE WARRANT AGREEMENT
GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE WARRANT AGENT MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 5.1 OF THE WARRANT AGREEMENT, (II) THIS GLOBAL WARRANT MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.5(A) OF THE WARRANT
AGREEMENT, (III) THIS GLOBAL WARRANT MAY BE DELIVERED TO THE WARRANT AGENT FOR
CANCELLATION PURSUANT TO SECTION 13.5 OF THE WARRANT AGREEMENT AND (IV) THIS GLOBAL
WARRANT MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT
OF THE COMPANY.

     The sale, encumbrance or other disposition of the Warrants and any securities acquired upon
exercise of the Warrants is subject to the provisions of the Warrant Agreement (as defined below),
a copy of which may be inspected at the principal office of the Warrant Agent or obtained from the
Company without charge. No registration or transfer of the securities issuable pursuant to the
Warrant will be recorded on the books of the Company until such provisions have been complied with.

     Thus
Warrant Certificate certifies that ______, or its registered assigns, is the
registered holder (“Holder”) of the number of Warrants set forth above expiring at 5:00 p.m., New
York City time, on the Expiration Date (the “Warrants”) to purchase Class A Common Stock (the
“Common Stock”) of Federal-Mogul Corporation, a Michigan corporation (the “Company”). The Common
Stock issuable upon exercise of the Warrants is hereinafter referred to as the “Warrant Stock.”
Each Warrant entitles the Holder, upon exercise thereof, to purchase from the Company at any time
from and after the date hereof until 5:00 p.m., New York City time, on the Expiration Date, one (1)
share of Common Stock at the purchase price of [$______] per share subject to adjustment and
the other terms and conditions set forth herein and in the Warrant Agreement dated as of
______, ___(the “Warrant

- 16 -

 

Agreement”)
by and between the Company and
             as warrant agent (the
“Warrant Agent”). Such purchase shall be payable in lawful money of the United States of America
by certified or official bank check or any combination thereof to the order of the Warrant Agent
for the account of the Company at the principal office of the Warrant Agent, subject to the
conditions set forth herein and in the Warrant Agreement. The number of shares of Common Stock for
which each Warrant is exercisable, and the price at which such shares may be purchased upon
exercise of each Warrant, are subject to adjustment upon the occurrence of certain events as set
forth in the Warrant Agreement. Whenever the number of shares of Common Stock for which a Warrant
is exercisable, or the price at which a share of such Common Stock may be purchased upon exercise
of the Warrants, is adjusted pursuant to the Warrant Agreement, the Company shall cause written
notice of such adjustment to be given to each Holder at such Holder’s address appearing on the
Warrant register by first class mail postage pre-paid.

     No Warrant may be exercised after 5:00 p.m., New York City time, on the Expiration Date, and
to the extent not exercised by such time such Warrants shall be void,

     Reference is hereby made to the further provisions of this Warrant Certificate set forth on
the reverse side hereof, and such further provisions shall for all purposes have the same effect as
though fully set forth at this place.

     This Warrant Certificate is not valid unless countersigned by the Warrant Agent.

     THIS WARRANT CERTIFICATE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MICHIGAN, WITHOUT
REGARD TO THE PROVISIONS THEREOF RELATING TO CONFLICT OF LAWS

     In witness whereof, the undersigned, duly authorized officer of the Company has caused this
Warrant Certificate to be signed as of this ___day of ______, ___.

	 	 	 	 	 	 	 
	 	 	FEDERAL-MOGUL CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	COUNTERSIGNED:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	as Warrant Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

- 17 -

 

[Form of Reverse of Warrant Certificate]

     The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of up
to ______ Warrants expiring at 5:00 p.m., New York City time, on the Expiration Date,
entitling the Holder, on exercise, to purchase shares of Class A Common Stock of the Company, and
are issued or to be issued pursuant to the Warrant Agreement, which Warrant Agreement is hereby
incorporated by reference and made a part of this instrument and is hereby referred to for a
description of the rights, limitation of rights, obligations, duties and immunities thereunder of
the Warrant Agent, the Company and the Holders. A copy of the Warrant Agreement may be obtained by
the Holder hereof upon written request to the Company or the Warrant Agent at the addresses set
forth below.

     Warrants may be exercised by surrendering this Warrant Certificate, with the Election to
Purchase set forth hereon properly completed and executed, together with payment of the purchase
price by certified or official bank check payable to the order of the Warrant Agent for the account
of the Company. In the event that the number of Warrants exercised shall be less than the total
number of Warrants evidenced hereby, there shall be issued to the Holder hereof or the Holder’s
assignee a new Warrant Certificate evidencing the number of Warrants not exercised.

     The Warrant Agreement provides that the number of shares of Common Stock for which each
Warrant is exercisable, and the price at which such shares may be purchased upon exercise of each
Warrant, are subject to adjustment upon the occurrence of certain events as set forth in the
Warrant Agreement. The Company shall not issue fractional shares of Common Stock upon the exercise
of any Warrant, and the Company shall round up or down, as the case may be, to the nearest share of
Common Stock as provided in the Warrant Agreement.

     Warrant Certificates, when surrendered at the office of the Warrant Agent by the registered
Holder thereof in person or by legal representative or attorney duly authorized in writing, may be
exchanged, in the manner and subject to the limitations provided in the Warrant Agreement for
another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate a
like number of Warrants.

     Upon due presentation for registration of transfer of this Warrant Certificate at the office
of the Warrant Agent, a new Warrant Certificate or Warrant Certificates of like tenor and
evidencing in the aggregate a like number of Warrants shall be issued to the transferee in exchange
for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement.

* * * *

	 	 	 	 	 
	COMPANY:

	 	WARRANT AGENT:	 	 
	 
	 	 	 	 
	Federal-Mogul Corporation

	 	 

	 	 
	26555 Northwestern Highway

	 	 

	 	 
	Southfield, Michigan 48034

	 	 

	 	 

* * * *

- 18 -

 

ELECTION TO PURCHASE

     The undersigned registered owner of this Warrant irrevocably exercises this Warrant for the
purchase of ______shares of Class A Common Stock of Federal-Mogul Corporation and herewith makes
payment therefor, all at the price and on the terms and conditions specified in this Warrant and
the Warrant Agreement and requests that certificates for the shares of Class A Common Stock hereby
purchased (and any securities or other property issuable upon such exercise) be issued in and
delivered to the name and address specified below and, if such shares of Class A Common Stock shall
not include all of the shares of Class A Common Stock issuable as provided in this Warrant, that a
new Warrant of like tenor and date for the balance of the shares of Class A Common Stock issuable
hereunder be delivered to the undersigned

Date: ___________

	 	 	 
	 

	 	 
	 

	 	Signature of Registered Owner*
	 
	 	 
	 

	 	 

Name Common Stock to be Registered Under
	 
	 	 
	 

	 	 
	 

	 	Address Common Stock to be Registered Under

* * * * *

SCHEDULE OF EXCHANGES OF INTERESTS OF GLOBAL WARRANTS

The following exchanges of a part of this Global Warrant have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Number of Warrants	 	 
	 

	 	Amount of decrease in
	 	Amount of increase in
	 	in this Global Warrant
	 	Signature of
	Date of

	 	number of warrants in
	 	number of Warrants in
	 	following such
	 	authorized officer
	Exchange

	 	this Global Warrant
	 	this Global Warrant
	 	decrease or increase
	 	of Warrant Agent
	 

	 	 
	 	 
	 	 
	 	 

- 19 -

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