Document:

Exhibit 10.2 Q1 2015

Exhibit 10.2

FEDERAL-MOGUL MOTORPARTS
Management Incentive Plan for Fiscal Year 2015

		
	I.
	PURPOSE

The Federal-Mogul Motorparts Management Incentive Plan (the “Plan”) has been established for Fiscal Year 2015 for those Participants defined under Section III below.

The purpose of this Plan is to provide additional compensation to Participants for their contribution to the achievement of the objectives of the Company, encouraging and stimulating superior performance by such individuals, and assisting in attracting and retaining highly qualified key employees.

		
	II.
	DEFINITIONS

A.Base Salary equals the base annual salary for each Participant, effective as of January 1, 2015.  If a Participant’s Base Salary changes during the year, the Base Salary used to calculate the Bonus under this Plan will be prorated for the portion of the year each Base Salary was in effect based on a 12-month year. For the avoidance of doubt, Base Salary shall be determined before reductions for contributions (if any) under Code Section 401(k), and shall not include, without limitation and to the extent applicable, (i) any Financial Award under the Plan; (ii) variable compensation such as incentive awards, commissions or spot bonuses, if any; (iii) imputed income from such programs as life insurance, auto allowance, or non-recurring earnings such as moving or relocation expenses, allowances or perquisites, or reimbursed business expenses; (iv) long-term incentive compensation (including stock or stock-equivalent awards, if any); or (v) overtime, unless required to be included in Base Salary for purposes of the Plan in accordance with applicable law.
B.Chief Executive Officer means the Chief Executive Officer of Federal-Mogul Motorparts.
C.Chief Financial Officer means the Chief Financial Officer of Federal-Mogul Motorparts.
D.Senior Vice President, Human Resources means the Senior Vice President of Human Resources of Federal-Mogul Motorparts.
E.Code means the Internal Revenue Code of 1986, as amended.
F.Company means Federal-Mogul Motorparts and its subsidiaries and its successors and assigns.
G.Compensation Committee means the Compensation Committee of the Board of Directors of the Company.
H.Financial Awards mean the awards that Participants may earn pursuant to the Plan.
I.Fiscal Year means the Company’s Fiscal Year beginning January 1, 2015 and ending December 31, 2015.
J.Plan means the Federal-Mogul Motorparts Management Incentive Plan, as from time to time amended.

III.EMPLOYEES COVERED BY THIS PLAN
Participating employees of the Company selected to participate in the Plan shall be subject to the review and approval by the Compensation Committee (each a “Participant”).  If a Participant vacates a listed position, the employee selected as the replacement would be eligible to participate in the Plan pro-rata for the months in the position, subject to approval by the Chief Executive Officer (except that, in the case of Participants who are executive officers, subject to the approval by the Compensation Committee in its sole discretion).  Notwithstanding the foregoing, no Participant shall be eligible to participate in the Plan unless he or she has returned to the Company an executed Integrity Policy Certification Agreement and Confidentiality Agreement and acknowledged its understanding and acceptance of the Company’s policies consistent with the Company practices and procedures. 

In order to receive a payout under the Plan, on the actual bonus payout date, a Participant must be in good standing and not on a performance improvement plan or in corrective action status as a result of poor performance during the Fiscal Year.

		
	IV.
	FINANCIAL AWARD

A Participant in the Plan shall be entitled to a Financial Award computed as the product of:

	
									
	Participant’s Base Salary
	X
	Target Bonus Percentage
	X
	Financial Performance as a % of  Target
	X
	

Individual Performance Rating (on a 0% - 150% scale)

	=
	Participant’s Financial Award (“Bonus”)

A.“Participant’s Base Salary” shall be the Base Salary (as defined in Section II) of a Participant.
B.“Target Bonus Percentage” that is selected for each Participant shall be subject to the review and approval by the Compensation Committee.
C.“Individual Performance Rating” shall be based on an individual performance evaluation as determined in accordance with Section VI below.
D.“Financial Performance as a % of Target” shall be determined in the manner set forth in Exhibit A based on the attainment of the financial, operational and strategic initiative targets for the Fiscal Year. 
It is intended that increases and decreases in Financial Awards that result from the application of Individual Performance Rating shall not result in an increase in the aggregate Plan payout that would otherwise apply based on the Financial Performance as a % of Target (as set forth on the attached Exhibit A) and Individual Performance Rating at the 100% level (such aggregate Plan payout being referred to as the “Maximum Bonus Pool”), and in the event that the Financial Awards otherwise calculated in accordance with this Section IV would exceed the Maximum Bonus Pool, each of the Financial Awards calculated on that basis shall be reduced pro rata in order that the aggregate Financial Awards shall not exceed the Maximum Bonus Pool.

		
	V.
	FINANCIAL, OPERATIONAL AND STRATEGIC INTITIATIVE PERFORMANCE 

TARGETS AND PAYOUT RANGES
The financial performance target and payout ranges used under this Plan in the Fiscal Year have been approved by the Compensation Committee based on the annual business plan and are set forth in Exhibit A.  The payout percentage for the performance target will be based on the level of attainment as set forth in Exhibit A.  For purposes of the Plan (including, without limitation, Exhibit A), “Adjusted EBITDA” shall mean operating income including joint venture earnings (or loss) and other income (or loss), adjusted to exclude stock based compensation expense (or income), and before interest, taxes, depreciation, and amortization.

At any time prior to the final determination of awards, the Compensation Committee may, in its sole discretion, increase, decrease, or otherwise adjust performance measures, targets, and payout ranges used hereunder, as a result of extraordinary or non-recurring events, changes in applicable accounting rules or principles, changes in the Company’s methods of accounting, changes in applicable law, changes due to consolidations, acquisitions, or reorganizations affecting the Company and its subsidiaries and affiliates, or other similar changes in the Company’s business.

		
	VI.
	INDIVIDUAL PERFORMANCE RATING

A Participant’s personal goals shall be developed by the Participant’s supervisor for the Fiscal Year. The personal goals of the executive officers will be subject to review and approval by the Chief Executive Officer.  The personal goals of the Chief Executive Officer will be subject to the review and approval by the Compensation Committee or the Board of Directors.  Attainment of such goals and other performance criteria, both quantifiable and non-quantifiable, may be used to arrive at an overall individual performance rating from 0% to 150%.  Such criteria shall be applied consistently to Participants with similar duties pursuant to an evaluation process to be reviewed and approved by the Senior Vice President of Human Resources.  Criteria that may be weighed in arriving at an individual performance rating will be based on such personal goals and may include, without limitation:

		
	•
	Achievement of performance targets established in Company’s annual budget

		
	•
	Development of staff

		
	•
	Successful development of new accounts/products

		
	•
	Improvement in product programs

		
	•
	Attainment of self-development objectives

		
	•
	Control or reduction of operating expenses by business unit

		
	•
	Safety record of facility or facilities

		
	•
	Quality program achievement

		
	•
	Business process improvements

The supervisor will assign a personal performance rating, from 0% to 150%, reflecting the Participant’s performance during the Fiscal Year.  The Chief Executive Officer reserves the right, in his sole discretion, to accept the personal performance percentage recommendation for each Participant or to modify any personal performance percentage for any Participant to achieve such dispersion of performance ratings as the Chief Executive Officer deems appropriate; provided, however, that the personal performance percentage recommendation of the Chief Executive Officer and other executive officers shall be subject to the review and approval by the Compensation Committee in its sole discretion.

		
	VII.
	COMPUTATION AND DISBURSEMENT OF FUNDS

As soon as practicable after the close of the Fiscal Year and approval of the Company’s annual financial statements, the Chief Financial Officer shall calculate the applicable financial and operating performance measures under the Plan.  The Chief Financial Officer and the Senior Vice President of Human Resources shall then calculate the proposed payout under the Plan based upon the proposed achievement of the financial and operating performance measures and the achievement of the Participants’ Individual Performance Ratings.  The proposed payout shall be verified by the Senior Vice President of Human Resources and presented to the Compensation Committee for review and final approval.  Once approved, payment of the Financial Awards shall be made within 30 days after completion of the annual audit, but not later than March 15th of the calendar year following the fiscal year for which the award is earned. Any determination by the Compensation Committee made under this paragraph shall be final and binding on all parties.

Each Participant shall be liable for any and all federal, state, provincial, local or foreign taxes, pension plan contributions, employment insurance premiums, social insurance contributions, amounts payable to a governmental and/or regulatory body in the Participant’s country and other levies of any kind required by applicable laws to be deducted or withheld with respect to the awards granted pursuant to the Plan (collectively, the “Withholding Taxes”). The Company and its subsidiaries shall have the right to deduct and withhold all required Withholding Taxes from any payment or other consideration deliverable to the Participant.

		
	VIII.
	PRORATION OF FINANCIAL AWARDS

Any Participant who is not employed with the Company in a Bonus-eligible position on or prior to October 1, 2015 shall not be eligible to receive a Financial Award for the Fiscal Year, except as otherwise provided by the Chief Executive Officer or, in the case of the Chief Executive Officer and executives at the level of Vice President or above, by the Compensation Committee.  Any Participant who is eligible for a Financial Award but who did not serve in a Bonus-eligible position during the entire 2015 Fiscal Year will be eligible to receive a pro-rated Bonus payment based on the amount of time such eligible Participant was actively and continuously employed in an eligible position during the Fiscal Year.
		
	•
	New Hires and Rehires - The Financial Award will be prorated based upon the number of full months the Participant was employed during the Fiscal Year.  For example, a Participant initially hired on July 1st would be eligible for 50% of the annual Financial Award.  In the case of rehires, there is no credit for prior service and the rehire date must occur prior to October 1st in order for the Participant to be Bonus-eligible under the Plan for the Fiscal Year.

		
	•
	Leaves of Absence - Time taken during a leave of absence (including disability leave) is not credited toward eligibility for a Financial Award; therefore, awards will be prorated for the length of time on leave of absence.  Furthermore, payments of Financial Awards are not considered earned and payable unless and until the Participant returns to work, with the exception of military leave.  If the leave of absence lasts nine months or more during the Fiscal Year, the Participant will not have met the three-month eligibility required to earn a Bonus for that Fiscal Year.

		
	•
	Promotions and Demotions - If the action results in a movement from one Bonus-eligible position to another Bonus-eligible position (with either a higher or lower Bonus target) a prorated Financial Award will be calculated.  The Financial Award will be calculated separately by factoring the time in each Bonus-eligible position by the corresponding Bonus target and Base Salary during the Participant’s tenure in each position.  However, if a Participant is both promoted and later demoted during the Fiscal Year, the Participant’s entire Bonus eligibility and Bonus target percent will be determined by the lower grade.

		
	•
	Status Change

		
	◦
	Change in employment status - The Financial Award is not payable unless the Participant has occupied a Bonus-eligible position for at least three months during the Fiscal Year on a full-time basis (i.e., 40-hour or more per week), unless specifically approved by the company’s CEO, and meets all eligibility criteria during the last full quarter of the Fiscal Year, i.e., from October 1st through December 31st.  The Financial Award will be based upon the Base Salary and the annual Bonus target while in the Bonus-eligible position.

		
	◦
	Bonus-eligible position to a non-Bonus eligible position - The Financial Award will be prorated based upon the time in a Bonus-eligible position as long as the Participant was in the position for a minimum of three months during the Fiscal Year.  A Participant must occupy a Bonus-eligible position prior to October 1st in order to be eligible to receive a Bonus payment for the Fiscal Year. The Financial Award will be based upon the Base Salary and the annual Bonus target while in the Bonus-eligible position.

		
	◦
	Non-Bonus-eligible position to a Bonus-eligible position - The Financial Award will be prorated based on the time worked, the corresponding Bonus target, and the Base Salary in effect while in the Bonus-eligible position as long as the Participant was in the eligible position for a minimum of three months during the Fiscal Year.  A Participant must move into the Bonus-eligible position prior to October 1st in order to be eligible to receive a Bonus payment for the Fiscal Year.

		
	IX.
	FORFEITURE / RECOUPMENT OF FINANCIAL AWARDS

Financial Awards are not considered earned until they are approved by the Compensation Committee and are actually paid by the Company.  Consequently, a Participant whose employment with the Company is voluntarily or involuntarily terminated prior to the actual Financial Award payment date will be ineligible for payment of the Financial Award, except as otherwise provided by the Chief Executive Officer or, in the case of the Chief Executive Officer and executives at the level of Vice President or above, by the Compensation Committee in its sole and absolute discretion, in which case any such Financial Award to the terminated employee shall be paid at the time Financial Awards are paid to active employees pursuant to Section VII above. 
If the Compensation Committee, in its sole and absolute discretion, determines that (i) there has been misconduct or a gross dereliction of duty resulting in either a violation of law or Company policy or procedures, that, in either case, causes significant financial or reputational harm to the Company (or any of its affiliates), and that a Participant committed the misconduct/ gross dereliction of duty, or failed in his or her responsibility to manage or monitor the applicable conduct or risk; (ii) a conduct of a Participant involves an immoral act which is reasonably likely to impair the reputation of the Company (or any of its affiliates); (iii) a Participant committed, or was indicted for, a felony or any crime involving fraud or embezzlement or dishonesty or was convicted of, or entered a plea of nolo contendere to a misdemeanor (other than a traffic violation) punishable by imprisonment under federal, state or local law; (iv) a Participant violated any securities or employment laws or regulations; (v) a Participant materially breached the Integrity Policy Certification Agreement and  Confidentiality Agreement; or (vi) a Participant embezzled and/or misappropriated any property of the Company (or any of its affiliates) or committed any act involving fraud with respect to the Company (or any of its affiliates), then, to the extent not prohibited by applicable law, the Compensation Committee, in its sole and absolute discretion, may seek reimbursement from such Participant (and such Participant shall be obligated to repay) all or any portion of any payments made to such Participant in respect of the Financial Award; provided, however, that the Compensation Committee may only seek such reimbursement in respect of payments of the Financial Award  made to a Participant within the three-year period preceding the date that the Compensation Committee makes a determination that there has been misconduct or a gross dereliction of duty.
If the Compensation Committee determines, in its sole and absolute discretion, that calculations underlying the performance measures and targets, including but not limited to mistakes in the Company’s financial statements for the Fiscal Year, were incorrect, then the Compensation Committee may, in its sole and absolute discretion, seek to recover the amount of any payment made to Participants that exceeded the amount that would have been paid based on the corrected calculations; provided, however, that the Compensation Committee may only seek to recover such amounts within the three-year period preceding the date that the Compensation Committee makes a determination that the calculations were incorrect.

To the extent not prohibited by applicable law, if a Participant is an officer of the Company, or, if applicable, has otherwise been designated by the Board of Directors as an “officer” for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, the Board of Directors shall seek reimbursement of any payment made to such Participant in respect of the Financial Award in the event of a restatement of the Company’s (or any of its subsidiaries’) financial results (occurring due to material noncompliance with any financial reporting requirements under applicable securities laws) that reduced a previously granted payment made to such Participant in respect of the Financial Award.  In that event, the Compensation Committee may, in its sole and absolute discretion, seek to recover the amount of any such payment made to the Participant that exceeded the amount that would have been paid based on the restated financial results.
If the Company subsequently determines that it is required by law to apply a “clawback” or alternate recoupment provision to the Financial Award, under the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise, then such clawback or recoupment provision also shall apply to such Financial Award, as if it had been included on the effective date of this Plan.

To the extent not prohibited under applicable law, the Company, in its sole and absolute discretion, will have the right to set off (or cause to be set off) any amounts otherwise due to a Participant from the Company in satisfaction of any repayment obligation of such Participant hereunder, provided that any such amounts are exempt from, or set off in a manner intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.
For the avoidance of doubt, the Company’s rights under this Section IX shall apply to Participants, without regard to whether any such Participant is currently providing, or previously provided, services to the Company as an employee.
		
	X.
	ADMINISTRATION

This Plan shall be administered by the Senior Vice President of Human Resources, subject to the control and supervision of the Chief Executive Officer and the Compensation Committee.  In the event of a claim or dispute brought forth by a Participant (other than the Chief Executive Officer), the decision of the Chief Executive Officer as to the facts in the case and the meaning and intent of any provision of the Plan, or its application, shall be final, binding, and conclusive. In the event of a claim or dispute brought forth by the Chief Executive Officer, the decision of the Compensation Committee as to the facts in the case and the meaning and intent of any provision of the Plan, or its application, shall be final, binding, and conclusive.
		
	XI.
	NO EMPLOYMENT CONTRACT; FUTURE PLANS 

Participation in this Plan shall not confer upon any Participant any right to continue in the employ of the Company nor interfere in any way with the right of the Company to terminate any Participant’s employment at any time.  The Company is under no obligation to continue the Plan in future years.  Participation in this Plan shall also supersede and eliminate any incentive bonus plan or other contractual bonus arrangement (including, without limitation, any sales commission, safety incentive, personal incentives and project incentives) that the Participant has or may have had by contract or otherwise, except as may be expressly provided in the acceptance document that such Participant executes.

		
	XII.
	AMENDMENT OR TERMINATION

The Compensation Committee may at any time, or from time to time, in its sole and absolute discretion, (a) amend, alter or modify the provisions of this Plan, (b) terminate this Plan, or (c) terminate the participation of an employee or group of employees in this Plan; provided, however, that in the event of the termination of this Plan or a termination of participation, the Compensation Committee may determine that a prorated award is payable to employees who were Participants in this Plan under such terms and conditions as established by the Compensation Committee in its sole and absolute discretion. 

		
	XIII.
	GENERAL PROVISIONS

A.No rights of the Participants under this Plan shall be transferable or assignable by a Participant, either voluntarily or involuntarily by way of encumbrance, pledge, attachment, levy or charge of any nature (except as may be required by state or federal law).
B.Nothing in the Plan shall require the Company to segregate or set aside any funds or other property for the purpose of paying any portion of an award.  No Participant, beneficiary or other person shall have any right, title or interest in any amount awarded under the Plan prior to the payment of such award to him or her.  A Participant’s rights to a Financial Award under this Plan are no greater than those of unsecured general creditors of the Company.
C.By participating in the Plan, each Participant hereunder shall consent to the holding and processing of personal information provided by such Participant to the Company, any affiliate of the Company, trustee or third party service provider, for all purposes relating to the operation of the Plan. These include, but are not limited to: (i) administering and maintaining Participant records; (ii) providing information to the Company, its affiliates, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan; (iii) providing information to future purchasers or merger partners of the Company or any of its affiliates, or the business in which the Participant works; and (iv) transferring information about the Participant to any country or territory that may not provide the same protection for the information as the Participant’s home country.
D.This Plan is governed by the laws of the State of New York and as such will be construed under and in accordance with the laws of the State of New York without regard to conflicts of law.

                
Chief Executive Officer                               DateExhibit 10.3 Q1 2015

Exhibit 10.3

FEDERAL-MOGUL CORPORATION
2010 STOCK INCENTIVE PLAN 
2015-2017 EVA AWARD AGREEMENT - Powertrain Segment

Name: [____________] (the “Participant”)

Pursuant to and subject to the terms and conditions of the Federal-Mogul Corporation 2010 Stock Incentive Plan, as amended from time to time (the “Plan”), this award agreement (“Agreement”) evidences the issuance to the Participant by Federal-Mogul Corporation (the “Company”), effective as of the grant date set forth below, of a performance-based economic value added award (the “Award”).  The rights conferred by this Agreement shall be deemed for all purposes to be a “performance unit” under the Plan.  Any term capitalized herein but not defined will have the meaning set forth in the Plan. 

		
	1.
	Grant Date.  The grant date for the Award is [___________], 2015 

		
	2.
	Performance Period.  The Performance Period for the Award shall be the three-year period commencing on January 1, 2015 and ending on December 31, 2017.

		
	3.
	Vesting.  The Award shall vest 100% on the last day of the Performance Period, subject to the Participant’s continuous employment throughout the Performance Period.

		
	4.
	Award Value.  Participant’s Award shall be valued based on the Award Percentage multiplied by the PT Bonus Pool.  Subject to the provisions in Section 7 hereof, the Participant’s Award Percentage is equal to [_]%.

		
	(a)
	“PT Bonus Pool” means 3.0% of Economic Profit generated by the Powertrain Segment during the Performance Period.  The PT Bonus Pool cannot be less than $0 and may not exceed $10,000,000 with respect to the Performance Period.

		
	(b)
	“Economic Profit” means, with respect to the Powertrain Segment of the Company, EBIT of the Powertrain Segment less the Capital Charge.  Economic Profit shall be calculated quarterly during the Performance Period.  

		
	(c)
	“EBIT” means, for any fiscal quarter, the Powertrain Segment’s consolidated net income determined in accordance with GAAP before the following: 

		
	i.
	interest income and expense, 

		
	ii.
	provision for income taxes (including tax sharing payments), 

		
	iii.
	legacy defined benefit expenses, 

		
	iv.
	OPEB curtailment gains or losses, 

		
	v.
	expenses associated with factoring of receivables, and

		
	vi.
	gains and losses on the sale of a business. 

		
	vii.
	restructuring charge, to be capitalized and then amortized through EBIT over a 3 year period (i.e. over 12 quarters) 

EBIT shall be calculated quarterly during the Performance Period.  Notwithstanding anything to the contrary in the foregoing, the Compensation Committee of the Company's Board of Directors (“Compensation Committee”) shall, subject to the terms of the Plan, adjust the calculation of EBIT for events or actions during the course of the Performance Period that are extraordinary and/or non-recurring (including but not limited to goodwill impairments or legacy costs).
		
	(d)
	“Capital Charge” means, for any fiscal quarter, Average Working Assets multiplied by the annual rate specified below.  Capital Charge shall be calculated quarterly during the Performance Period.

		
	i.
	Fiscal 2015: Ten percent (10.0%) (i.e., 2.5% each fiscal quarter).

		
	ii.
	Fiscal 2016: Ten percent (10.0%) (i.e., 2.5% each fiscal quarter).

		
	iii.
	Fiscal 2017: Ten percent (10.0%) (i.e., 2.5% each fiscal quarter).

		
	(e)
	“Average Working Assets” means, for any fiscal quarter, the average of (i) Working Assets as of the last day of such quarter and (ii) Working Assets as of the last day of the immediately preceding quarter. Average Working Assets shall be calculated quarterly during the Performance Period.

		
	(f)
	“Working Assets” means, for any fiscal quarter, the following items for the Powertrain Segment as of the last day of such quarter (in each case determined in accordance with GAAP): 

		
	i.
	accounts receivable; plus 

		
	ii.
	factored receivables that would not have otherwise been paid during the fiscal quarter; plus 

		
	iii.
	net inventory; plus 

		
	iv.
	 property, plant and equipment net of depreciation (i.e. net book value); plus

		
	v.
	goodwill and other intangible assets related to acquisitions or investments completed on or after September 30, 2013; plus

		
	vi.
	investments in non-consolidated subsidiaries (excluding  $100 million consisting primarily of retained earnings established before January 1, 2014);  less

		
	vii.
	accounts payable; less 

		
	viii.
	accrued liabilities (other than accruals for short term taxes or short term interest). 

		
	ix.
	net book value of capitalized restructuring (i.e. gross amount of restructuring capitalized net of accumulated amortized restructuring charged through EBIT)

Working Assets shall be calculated quarterly during the Performance Period. The Participant and the Company acknowledge and agree that Working Assets for the fiscal quarter of the Powertrain Segment ended December 31, 2014 was [____].  Notwithstanding anything to the contrary in the foregoing: (A) Working Assets shall be determined without giving effect to any gains and losses on the sale of a business; and (B) the Compensation Committee shall, subject to the terms of the Plan, adjust the calculation of Working Assets for events or actions during the course of the Performance Period that are extraordinary and/or non-recurring (including but not limited to goodwill impairments).
		
	5.
	Form and Timing of Payment.  Except as hereinafter provided, after the end of the Performance Period, the Participant shall be entitled to receive a payment equal to the value of the Award, if any, in a lump sum in cash.  Payment of such amount shall be made as soon as administratively practicable after the later of (i) the filing of the Company’s 2017 Annual Report on Form 10-K (or any successor filing) and (ii) the Economic Profit results are calculated and certified by the Compensation Committee following the end of the Performance Period, but in no event later than March 15, 2018.

		
	6.
	Termination of Employment. Subject to the forfeiture and clawback provisions contained in Section 15 of the Plan and Section 11 of this Award, the Participant’s right to receive the Award after the Participant’s Termination of Employment within the Performance Period will be only as follows: 

		
	(a)
	Termination by the Company other than due to a Breach of Conduct. If the Participant incurs an involuntary Termination of Employment by the Company other than due to a Breach of Conduct prior to the end of the Performance Period, subject to the provisions of Section 7 hereof, the Participant shall have the right to receive a payment in a lump sum in cash equal to (i) the value of the Award, if any, multiplied by (ii) a fraction, (A) the numerator of which is equal to the number of days the Participant was employed during the Performance Period and (B) the denominator of which is equal to the total number of days in the Performance Period.  The payment of such amount, if any, shall be made in accordance with Section 5.  

		
	(b)
	Other Termination. Unless otherwise determined by the Committee, if the Participant incurs a Termination of Employment within the Performance Period for any reason other than as described in Section 6(a), then the Award shall thereupon immediately terminate and be forfeited by the Participant.

		
	7.
	Change in Control and Powertrain Segment Change of Control.  Notwithstanding anything to the contrary herein, if the Participant is employed by the Company immediately prior to a Change in Control Event that occurs during the Performance Period, to the extent that the Participant becomes entitled to a payment pursuant to Section 5 or Section 6 hereof, such payment shall not be less than the Change in Control Amount.  

		
	(a)
	“Change in Control Event” means a Change in Control as defined in the Plan and/or a Powertrain Segment Change of Control.

		
	(b)
	“Powertrain Segment Change of Control” shall mean a transaction by which all or substantially all of the assets of the Powertrain Segment (or the securities of the entities holding such assets) are sold to a third party who is not Affiliated with the Company in a private sale (including such transactions that occur following a Spin-Off Transaction or a public offering of the securities of the Powertrain Segment), but in no event shall such term be utilized to refer to a Spin-Off Transaction, a public offering of the securities of the Powertrain Segment or any other transaction that would not satisfy the definition of a “change in control event” as defined in Code Section 409A and the regulations and other official guidance issued thereunder.  For the avoidance of doubt, a “Powertrain Segment Change of Control” shall in no event include any transaction if, immediately following consummation thereof, Carl Icahn and/or the Related Parties are the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Powertrain Segment.

		
	i.
	“Powertrain Segment” means the powertrain operating segment of the Company (or any successor operating segment). 

		
	ii.
	“Affiliate” shall have the meaning set forth in Rule 405 of Regulation C of the Securities Act of 1933, as amended.

		
	iii.
	“Spin-Off Transaction” means any transaction by which (i) the Powertrain Segment (or all or substantially all of the assets of the Powertrain Segment or the securities of the entities holding such assets) is distributed to the security holders of the Company or (ii) the assets comprising all or 

substantially all of the Powertrain Segment (or the securities of the entities holding such assets) are otherwise reorganized or restructured in a manner similar to the foregoing.
		
	(c)
	“Change in Control Amount” means an amount equal to the value of the Award calculated in accordance with Section 4 hereof, but determined as if the Performance Period ended on the Change in Control Date.

		
	(d)
	 “Change in Control Date” means the date upon which a Change in Control Event is consummated.

		
	8.
	Withholding.  The Company shall have the right to retain any amounts that are distributable to the Participant hereunder to the extent necessary to satisfy the minimum required withholding taxes, whether federal, state, local or foreign, triggered by the payment of any amounts hereunder. 

		
	9.
	Transferability of the Award. The Award is transferable only by will or the laws of descent and distribution, or pursuant to a domestic relations order (as defined in the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder).

		
	10.
	No Limitation on Rights of the Company. The grant of the Award will not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. 

		
	11.
	Cancellation, Rescission, and Clawback of Awards.  In the event of a restatement of the Company’s consolidated financial statements that would reduce the amount of any previously awarded Award, the related outstanding Awards will be cancelled or reduced accordingly and the Participant shall pay over to the Company an amount equal to any gain realized as a result of the exercise, distribution or settlement (whether at the time of exercise, distribution or settlement or thereafter) within (a) the twenty-four (24) months preceding such financial restatement for the Chief Executive Officer, the Chief Financial Officer, and the Chief Accounting Officer of the Company or (b) the twelve (12) months preceding such financial restatement for all other Participants.

Additionally, the Committee may at any time, in its sole and absolute discretion, cancel, declare forfeited, rescind, or require the return of any outstanding Award (or a portion thereof) upon the Committee determining that the Participant has, at any time (whether before or after the grant date of the Award), committed a Breach of Conduct.  In addition, at any time following the payment of an Award, the Committee may, in its sole and absolute discretion, rescind any such payment and require the repayment of an Award (or a portion thereof) upon the Committee determining that the Participant has, at any time (whether before or after the payment of the Award), committed a Breach of Conduct.  

The Committee’s determination that a Participant has committed a Breach of Conduct, and its decision to require rescission of an Award’s payment, shall be conclusive, binding, and final on all parties.  The Committee’s determination that a Participant has violated the terms of the Plan or the Award and the Committee’s decision to cancel, declare forfeited, or rescind an Award or to require rescission of an Award’s payment shall be conclusive, binding, and final on all parties.

In connection with any cancellation, forfeiture or rescission contemplated by this Section 11, the terms of repayment by the applicable Participant shall be determined in the Committee’s sole and absolute discretion, which may include, among other terms, the repayment being required to be made (i) in one or more installments or payroll deductions or deducted from future bonus payments or (ii) immediately in a lump sum in the event that such Participant incurs a termination of employment. 

To the extent not prohibited under applicable law, the Company, in its sole and absolute discretion, will have the right to set off (or cause to be set off) any amounts otherwise due to a Participant from the Company in satisfaction of any repayment obligation of such Participant hereunder, provided that an such amounts are exempt from, or set off in a manner intended to comply with the requirements of Section 409A of the Code.  

		
	12.
	Plan and Agreement Not a Contract of Employment. Neither the Plan nor this Agreement is a contract of employment, and no terms of employment of the Participant will be affected in any way by the Plan, this Agreement or related instruments except as specifically provided therein. Neither the establishment of the Plan nor this Agreement will be construed as conferring any legal rights upon the Participant for a continuation of employment, nor will it interfere with the right of the Company or any subsidiary or Affiliate to discharge the Participant and to treat him or her without regard to the effect that treatment might have upon him or her as the Participant. 

		
	13.
	Notice. Any notice or other communication required or permitted hereunder must be in writing and must be delivered personally, or sent by certified, registered or express mail, postage prepaid. Any such notice will be deemed given when so delivered personally or, if mailed, seven days after the date of deposit in the United States mail, in the case of the 

Company to the Company’s U.S. corporate headquarters (as reflected on the Company’s corporate website), Attention: General Counsel, and, in the case of the Participant, to the last known address of the Participant in the Company’s or Subsidiary’s records. 

		
	14.
	Entire Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof, and may not be modified (except as provided herein and in the Plan) adversely to the Participant except by means of a written document signed by the Company and the Participant. This Agreement and the Award will be construed and enforced in accordance with, and governed by, the laws of the State of Delaware, determined without regard to its conflict of laws rules. 

		
	15.
	Plan Controls. The rights granted under this Agreement are in all respects subject to the provisions of the Plan to the same extent and with the same effect as if they were set forth fully herein. If the terms of this document conflict with the terms of the Plan, the Plan will control. 

		
	16.
	Participant’s Acknowledgement. The Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Agreement subject to all of the terms and provisions thereof. The Participant has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands the provisions of the Agreement. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Compensation Committee upon any questions arising under the Plan or this Agreement. The Participant further agrees to notify the Company upon any change in his or her residence address. A facsimile or photocopy of an executed counterpart of this Agreement shall be sufficient to bind the party or parties whose signature(s) appear thereon. 

	
							
	 
	 
	 
	 
	 
	 
	 

	Participant 
	 
	 
	 
	Federal-Mogul Corporation 
	 
	 

	__________________________
Name: 
	 
	 
	 
	By: __________________________
 Name: [_________]
Title: [_________________]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]