exv10w77






Exhibit 10.77




SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT




Dated
as of May 4, 2005




Among




TENNECO
AUTOMOTIVE RSA COMPANY, as
Seller,




TENNECO
AUTOMOTIVE OPERATING COMPANY INC.,
as Servicer,





JUPITER SECURITIZATION CORPORATION and LIBERTY STREET FUNDING

CORP. , as Conduits,




THE COMMITTED PURCHASERS FROM TIME TO TIME PARTY HERETO,




THE BANK OF NOVA SCOTIA, 
as Liberty Street Agent




and




JPMORGAN CHASE BANK, N.A., 
as Jupiter Agent and Administrative Agent




 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	ARTICLE I. PURCHASE ARRANGEMENTS

	 	 	2	 
	 
	 	 	 	 
	Section 1.1 Purchase Facility

	 	 	2	 
	Section 1.2 Increases

	 	 	3	 
	Section 1.3 Decreases

	 	 	4	 
	Section 1.4 Payment Requirements

	 	 	4	 
	 
	 	 	 	 
	ARTICLE II. PAYMENTS AND COLLECTIONS

	 	 	5	 
	 
	 	 	 	 
	Section 2.1 Payments

	 	 	5	 
	Section 2.2 Collections Prior to Amortization

	 	 	5	 
	Section 2.3 Collections Following Amortization

	 	 	6	 
	Section 2.4 Application of Collections

	 	 	7	 
	Section 2.5 Payment Rescission

	 	 	7	 
	Section 2.6 Maximum Purchaser Interests

	 	 	8	 
	Section 2.7 Clean Up Call

	 	 	8	 
	 
	 	 	 	 
	ARTICLE III. CONDUIT FUNDING

	 	 	8	 
	 
	 	 	 	 
	Section 3.1 CP Costs

	 	 	8	 
	Section 3.2 CP Costs Payments

	 	 	8	 
	Section 3.3 Calculation of CP Costs

	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV. COMMITTED PURCHASER FUNDING

	 	 	8	 
	 
	 	 	 	 
	Section 4.1 Committed Purchaser Funding

	 	 	8	 
	Section 4.2 Yield Payments

	 	 	9	 
	Section 4.3 Selection and Continuation of Tranche Periods

	 	 	9	 
	Section 4.4 Committed Purchaser Discount Rates

	 	 	9	 
	Section 4.5 Suspension of the LIBO Rate

	 	 	9	 
	Section 4.6 Liquidity Agreement Fundings

	 	 	10	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES

	 	 	11	 
	 
	 	 	 	 
	Section 5.1 Representations and Warranties of the Seller Parties

	 	 	11	 
	Section 5.2 Committed Purchaser Representations and Warranties

	 	 	14	 
	 
	 	 	 	 
	ARTICLE VI. CONDITIONS OF PURCHASES

	 	 	15	 
	 
	 	 	 	 
	Section 6.1 Conditions Precedent to Amendment and Restatement

	 	 	15	 
	Section 6.2 Conditions Precedent to All Purchases and Reinvestments

	 	 	15	 
	 
	 	 	 	 
	ARTICLE VII. COVENANTS

	 	 	16	 
	 
	 	 	 	 
	Section 7.1 Affirmative Covenants of the Seller Parties

	 	 	16	 
	Section 7.2 Negative Covenants of the Seller Parties

	 	 	22	 
	 
	 	 	 	 
	ARTICLE VIII. ADMINISTRATION AND COLLECTION

	 	 	24	 
	 
	 	 	 	 
	Section 8.1 Designation of Servicer

	 	 	24	 
	Section 8.2 Duties of Servicer

	 	 	24	 
	Section 8.3 Collection Notices

	 	 	25	 
	Section 8.4 Responsibilities of Seller

	 	 	26	 
	Section 8.5 Portfolio Reports

	 	 	26	 
	Section 8.6 Servicing Fees

	 	 	26	 
	 
	 	 	 	 
	ARTICLE IX. AMORTIZATION EVENTS

	 	 	26	 
	 
	 	 	 	 
	Section 9.1 Amortization Events

	 	 	26	 






  i





 









 








	 	 	 	 	 
	 	 	Page	 
	Section 9.2 Remedies

	 	 	28	 
	 
	 	 	 	 
	ARTICLE X. INDEMNIFICATION

	 	 	29	 
	 
	 	 	 	 
	Section 10.1 Indemnities by the Seller Parties

	 	 	29	 
	Section 10.2 Increased Cost and Reduced Return

	 	 	31	 
	Section 10.3 Other Costs and Expenses

	 	 	32	 
	 
	 	 	 	 
	ARTICLE XI. THE AGENTS

	 	 	33	 
	 
	 	 	 	 
	Section 11.1 Appointment

	 	 	33	 
	Section 11.2 Delegation of Duties

	 	 	34	 
	Section 11.3 Exculpatory Provisions

	 	 	34	 
	Section 11.4 Reliance by Agents

	 	 	34	 
	Section 11.5 Notice of Seller Defaults

	 	 	34	 
	Section 11.6 Non-Reliance on Other Agents and Purchasers

	 	 	35	 
	Section 11.7 Indemnification of Agents

	 	 	35	 
	Section 11.8 Agents in their Individual Capacities

	 	 	36	 
	Section 11.9 UCC Filings

	 	 	36	 
	Section 11.10 Successor Agents

	 	 	36	 
	 
	 	 	 	 
	ARTICLE XII. ASSIGNMENTS; PARTICIPATIONS

	 	 	37	 
	 
	 	 	 	 
	Section 12.1 Assignments

	 	 	37	 
	Section 12.2 Participations

	 	 	38	 
	 
	 	 	 	 
	ARTICLE XIII. TERMINATING COMMITTED PURCHASERS

	 	 	38	 
	 
	 	 	 	 
	Section 13.1 Terminating Committed Purchasers

	 	 	38	 
	 
	 	 	 	 
	ARTICLE XIV. MISCELLANEOUS

	 	 	39	 
	 
	 	 	 	 
	Section 14.1 Waivers and Amendments

	 	 	39	 
	Section 14.2 Notices

	 	 	40	 
	Section 14.3 Ratable Payments

	 	 	41	 
	Section 14.4 Protection of Ownership Interests of the Purchasers

	 	 	41	 
	Section 14.5 Confidentiality

	 	 	42	 
	Section 14.6 Bankruptcy Petition

	 	 	42	 
	Section 14.7 Limitation of Liability

	 	 	42	 
	Section 14.8 CHOICE OF LAW

	 	 	43	 
	Section 14.9 CONSENT TO JURISDICTION

	 	 	43	 
	Section 14.10 WAIVER OF JURY TRIAL

	 	 	43	 
	Section 14.11 Integration; Binding Effect; Survival of Terms

	 	 	44	 
	Section 14.12 Counterparts; Severability; Section References

	 	 	44	 
	Section 14.13 Co-Agent Roles

	 	 	44	 
	Section 14.14 Characterization

	 	 	45	 






ii





 









 








Exhibits
and Schedules




	 	 	 
	Exhibit I

	 	Definitions
	 
	 	 
	Exhibit II

	 	Form of Purchase Notice
	 
	 	 
	Exhibit III

	 	Places of Business of the Seller Parties; Locations of Records; Federal
Employer Identification Number(s)
	 
	 	 
	Exhibit IV

	 	Names of Collection Banks; Collection Accounts
	 
	 	 
	Exhibit V

	 	Form of Compliance Certificate
	 
	 	 
	Exhibit VI

	 	[Intentionally Omitted]
	 
	 	 
	Exhibit VII

	 	[Intentionally Omitted]
	 
	 	 
	Exhibit VIII

	 	Credit and Collection Policy
	 
	 	 
	Exhibit IX

	 	Form of Daily Report
	 
	 	 
	Exhibit X

	 	Form of Monthly Report
	 
	 	 
	Exhibit XI

	 	Form of Performance Undertaking
	 
	 	 
	Schedule A

	 	Commitments
	 
	 	 
	Schedule B

	 	Closing Documents






iii





 









 







SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT




          THIS SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT dated as of May 4, 2005 is
among:





     (a) Tenneco Automotive RSA Company, a Delaware corporation



(“Seller”),




     (b) Tenneco Automotive Operating Company Inc., a Delaware corporation (“Tenneco
Operating”), as initial Servicer (the Servicer, and together with Seller, the “Seller
Parties”),




     (c) Jupiter Securitization Corporation, a Delaware corporation (“Jupiter” or
a “Conduit”), and Liberty Street Funding Corp., a Delaware corporation (“Liberty
Street” or a “Conduit”),




     (d) JPMorgan Chase Bank, N.A., successor by merger to Bank One, NA (Main Office
Chicago), a national banking association (“JPMorgan Chase”), and its assigns hereunder
(collectively, the “Jupiter Committed Purchasers” and, together with Jupiter, the “Jupiter
Group”), and The Bank of Nova Scotia, a Canadian chartered bank acting through its New York
Agency (“Scotiabank”), and its assigns hereunder (collectively, the “Liberty Street
Committed Purchasers” and, together with Liberty Street, the “Liberty Street Group”),




     (e) JPMorgan Chase, in its capacity as agent for the Jupiter Group (the “Jupiter
Agent” or a “Co-Agent”), and Scotiabank, in its capacity as agent for the Liberty Street
Group (the “Liberty Street Agent” or a “Co-Agent”), and




     (f) JPMorgan Chase, in its capacity as administrative agent for the Jupiter Group,
the Liberty Street Group and each Co-Agent (in such capacity,
together with its successors and assigns hereunder, the “Administrative Agent” and,
together with each of the Co-Agents, the “Agents”),


and amends and restates in its entirety that certain Amended and Restated Receivables Purchase
Agreement, dated as of January 31, 2003, among the parties hereto other than Liberty Street,
Scotiabank and the Liberty Street Agent, as heretofore amended from time to time (the “Existing
Agreement”). Unless defined elsewhere herein, capitalized terms used in this Agreement shall have
the meanings assigned to such terms in Exhibit I.




PRELIMINARY STATEMENTS





     Seller desires to add Liberty Street and Scotiabank as Purchasers under the facility
evidenced by the Existing Agreement, and thereafter, to continue to transfer and assign
Purchaser Interests for the benefit of the Purchasers from time to time.



 









 






     Each of the Conduits may, in its absolute and sole discretion, direct its
applicable Co-Agent to purchase Purchaser Interests from Seller from time to time for
the benefit of such Conduit.




     In the event that a Conduit declines to make any purchase through its Co-Agent, the
Committed Purchasers in its Group shall, at the request of Seller, direct the applicable
Co-Agent to purchase Purchaser Interests on their behalf from time to time.




     JPMorgan Chase has been requested and is willing to act as Jupiter Agent on behalf of
the Jupiter Group in accordance with the terms hereof.




     Scotiabank has been requested and is willing to act as Liberty Street Agent on behalf
of the Liberty Street Group in accordance with the terms hereof.




     JPMorgan Chase has also been requested and is willing to act as Administrative
Agent on behalf of the Groups in accordance with the terms hereof.




     The parties desire to amend and restate in its entirety the Existing
Agreement on the terms and subject to the conditions hereinafter set forth.



ARTICLE I.




PURCHASE ARRANGEMENTS




     Section 1.1 Purchase Facility.



          (a) Upon the terms and subject to the conditions hereof, Seller may from time to time prior to
the Facility Termination Date request that the Groups purchase their respective Percentages of
Purchaser Interests offered for sale from time to time by delivering a Purchase Notice to the
Co-Agents in accordance with Section 1.2. Upon receipt of a copy of each Purchase Notice from
Seller, each of the Co-Agents shall determine whether its Conduit will purchase, its Group’s
Percentage of the Purchaser Interest specified in such Purchase Notice, and





     (i) in the event that Jupiter elects not to make its Percentage of such Purchase, the
Jupiter Agent shall promptly notify the Seller and, unless the Seller cancels the Purchase
Notice, each of the Jupiter Committed Purchasers severally agrees to make its Pro Rata
Share of the Jupiter Group’s Percentage of such Purchase on the terms and subject to the
conditions hereof, provided that at no time may the aggregate Capital of the Jupiter Group
at any one time outstanding
exceed the lesser of (A) the aggregate amount of the Jupiter Committed Purchasers’
Commitments divided by 102%, and (B) the Jupiter Group’s Percentage of the Purchase Limit;
and



2









 






     (ii) in the event that Liberty Street elects not to make its Percentage of such
Purchase, the Liberty Street Agent shall promptly notify the Seller and, unless the Seller
cancels its Purchase Notice, each of the Liberty Street Committed Purchasers severally
agrees to make its Pro Rata Share of the Liberty Street Group’s Percentage of such
Purchase, on the terms and subject to the conditions hereof, provided that at no time may
the aggregate Capital of the Liberty Street Group at any one time outstanding exceed the
lesser of (A) the aggregate amount of the Liberty Street Committed Purchasers’ Commitments
divided by 102%, and (B) the Liberty Street Group’s Percentage of the Purchase Limit.



          (b) Seller may, upon at least thirty (30) Business Days’ notice to the Agents, terminate in
whole or reduce in part, ratably between the Groups (and within each Group, ratably amongst the
Committed Purchasers therein), the unused portion of the Purchase Limit; provided that each partial
reduction of the Purchase Limit shall be in an amount equal to $5,000,000 or a larger integral
multiple of $500,000.




     Section 1.2 Increases. Not later than 10:00 a.m. (Chicago time) on the Business Day prior to
each Incremental Purchase, Seller shall provide the Co-Agents with notice in the form set forth as
Exhibit II hereto of each Incremental Purchase (a “Purchase Notice”). Each Purchase Notice shall be
subject to Section 6.2 hereof and, except as set forth below, shall be irrevocable and shall
specify the requested Purchase Price and each Group’s Percentage thereof (which shall not be less
than $1,000,000 in the aggregate), the proposed date of purchase (which shall be a Business Day)
and, in the case of an Incremental Purchase to be funded by a Group’s Committed Purchasers, the
requested Discount Rate and Tranche Period; provided, however, that in no event shall the aggregate
number of Incremental Purchases pursuant to this Section 1.2 exceed two (2) in any calendar week.
Following receipt of a Purchase Notice, each of the Co-Agents will determine whether its Conduit
agrees to make its Group’s Percentage of such Purchase. If a Conduit declines to make its
Percentage of the proposed Purchase (such Conduit being a “Declining Conduit”), the applicable
Co-Agent shall promptly advise the Seller and the Servicer of such fact, and the Seller may
thereupon cancel the Purchase Notice as to all Groups or, in the absence of such a cancellation,
the Incremental Purchase of that Group’s Percentage of the applicable Purchaser Interest will be
made by the Committed Purchasers in such Group. In addition, Seller may replace the Declining
Conduit and its Group by first offering the Declining Conduit’s Group’s rights under, interest in,
title to and obligations under this Agreement to the other Conduit’s Group and if the other
Conduit’s Group accepts such offer, the Declining Conduit’s Group shall assign all of its rights
under, interest in, title to and obligations under this Agreement to the other Conduit’s Group. If
such other Conduit’s Group declines such an offer, Seller shall have until the 30th day after the
other Conduit’s Group has declined such offer to find another special purpose asset-backed
commercial paper conduit having a short-term debt rating of A-1 or better by Standard & Poor’s and
P-1 by Moody’s Investors Service, Inc. (and
committed purchasers) to accept an assignment of the Declining Conduit’s Group rights under,
interest in, title to and obligations under this Agreement and if Seller finds such a conduit (and
committed purchasers), the Declining Conduit’s Group shall assign all of its rights under, interest
in, title to and obligations under this Agreement to such other conduit and committed purchasers.
If such replacement cannot be found within such period, at Seller’s request, the Declining



3









 




Conduit Group’s Capital shall amortize in accordance with Section 2.2 as if such Group was a
Terminating Committed Purchaser’s Group hereunder until such Capital shall be paid in full.




          On the date of each Incremental Purchase, upon satisfaction of the applicable conditions
precedent set forth in Article VI, each Conduit or Committed Purchaser, as applicable, shall
deposit to an account specified by its Co-Agent, for transfer to an account designated by Seller
(or by Servicer on Seller’s behalf), in immediately available funds, no later than 12:00 noon
(Chicago time), an amount equal to (i) in the case of a Conduit, its Group’s Percentage of the
aggregate Purchase Price of the Purchaser Interests described in such Purchase Notice or (ii) in
the case of a Committed Purchaser, such Committed Purchaser’s Pro Rata Share of its Group’s
Percentage of the aggregate Purchase Price of such Purchaser Interests. Upon such transfer by a
Co-Agent to Seller’s designated account, Seller hereby, without the necessity of further action by
any Person, assigns, transfers, sets over and otherwise conveys to the Administrative Agent, for
the benefit of the Purchasers providing such funds, the applicable Purchaser Interest.




          Notwithstanding the foregoing, the Liberty Street Agent shall pay, on May 4, 2005, $40,000,000
(the “Equalization Payment”) to the Jupiter Agent at the following account: Acct title: Jupiter,
Bank One, NA, ABA # 071000013, Acct # 5948118, SWIFT address: FNBCUS44XXX, Funding Contact: Raquel
Thompson (312) 732-5366, Reference: Tenneco Automotive RSA, so that (after giving effect to such
Equalization Payment and any funding by each Group of any Incremental Purchase to be made on May 4,
2005) each Group’s Percentage of the outstanding Aggregate Capital, after giving effect to any
funding of such Incremental Purchase and the addition of the Liberty Street Group provided for
herein, equals the amount which would be such Group’s Percentage of the outstanding Aggregate
Capital if all Groups (including the Liberty Street Group) funded their respective Group’s
Percentage of all Incremental Purchases on or prior to May 4, 2005 (after giving to all payments in
respect of the Aggregate Capital outstanding on or prior to May 4, 2005).




     Section 1.3 Decreases. Not later than 12:00 noon (Chicago time) on the Business Day prior to a
proposed reduction in Aggregate Capital outstanding, Seller shall provide the Co-Agents with
written notice of any reduction requested by the Seller of the Aggregate Capital outstanding (a
“Reduction Notice”). Such Reduction Notice shall designate (i) the date (the “Proposed Reduction
Date”) upon which any such reduction of Aggregate Capital shall occur (which date shall be not
earlier than one (1) Business Day after the Reduction Notice is given), and (ii) the amount of
Aggregate Capital to be reduced (the “Aggregate Reduction”), which shall be applied ratably to the
Purchaser Interests of each Group in accordance with the amount of Capital owing to each and
within each Group, ratably in accordance with the amount of Capital, if any, owing to each
member of such Group.



     Section 1.4 Payment Requirements. All amounts to be paid or deposited by a Seller Party
pursuant to any provision of this Agreement shall be paid or deposited in accordance with the terms
hereof no later than 11:00 a.m. (Chicago time) on the day when due in immediately available funds.
If such amounts are payable to the Administrative Agent or a member of the Jupiter Group, they
shall be paid for its account to the Jupiter Agent, at 1 Bank One Plaza, Chicago, Illinois 60670
until otherwise notified by the Jupiter Agent (the “Jupiter Group Account”). If such amounts are
payable to the Liberty Street Agent, the Administrative Agent or



4









 




to a member of the Liberty Street Group, they shall be paid to Liberty Street Funding Corp.’s
account no. 2158-13 at The Bank of Nova Scotia — New York Agency, in New York, New York, ABA No.
026-002532, until otherwise notified by the Liberty Street Agent or the Administrative Agent (the
“Liberty Street Group Account”). Upon notice to Seller, the Administrative Agent may debit any
account of Seller maintained at JPMorgan Chase for all amounts due and payable hereunder. Except
for computations of Yield based on the Prime Rate, all computations of Yield, per annum fees
calculated as part of any CP Costs, per annum fees hereunder and per annum fees under the Fee
Letter shall be made on the basis of a year of 360 days for the actual number of days elapsed. All
computations of Yield or Default Fee based on the Prime Rate shall be computed for actual days
elapsed on the basis of a year consisting of 365 (or, when appropriate, 366) days. If any amount
hereunder shall be payable on a day which is not a Business Day, such amount shall be payable on
the next succeeding Business Day.




ARTICLE II.




PAYMENTS AND COLLECTIONS




     Section 2.1 Payments. Notwithstanding any limitation on recourse contained in this Agreement,
Seller shall immediately pay to each of the Co-Agents when due, for the account of the relevant
Purchaser or Purchasers in its Group, on a full recourse basis: (i) such fees as are set forth in
the applicable Fee Letter (which fees shall be sufficient to pay all fees owing to the Committed
Purchasers in such Co-Agent’s Group), (ii) all CP Costs owing to such Co-Agent’s Conduit (which
shall be due and payable in arrears on Monthly Payment Dates for the Accrual Period then most
recently ended), (iii) all amounts payable as Yield to the Committed Purchasers in such Co-Agent’s
Group (which shall be due and payable on the last day of the applicable Tranche Period), (iv) such
Co-Agent’s Group’s Percentage of all amounts payable as Deemed Collections (which shall be
immediately due and payable by Seller and applied to reduce outstanding Aggregate Capital hereunder
in accordance with Sections 2.2 and 2.3 hereof), (v) such Co-Agent’s Group’s Percentage of all
amounts payable to reduce the aggregate Capital of the Purchaser Interests, if required, pursuant
to Section 2.6, (vi) such Co-Agent’s Group’s share of all amounts payable pursuant to Article X, if
any, (vii) such Co-Agent’s Group’s share of all Broken Funding Costs and (viii) such Co-Agent’s
Group’s Percentage of all Default Fees (all of the foregoing in clauses (i)-(viii), collectively,
the “Recourse Obligations”). If Seller fails to pay any of the Recourse Obligations when due: (a) a
Settlement Date shall occur, and (b) Seller agrees to pay, on demand, the Default Fee on
the unpaid portion of such Recourse Obligation until paid in full. Notwithstanding the
foregoing, no provision of this Agreement or the Fee Letter shall require the payment or permit the
collection of any amounts hereunder in excess of the maximum permitted by applicable law. If at any
time Seller receives any Collections or is deemed to receive any Collections, Seller shall
immediately pay such Collections or Deemed Collections to the Servicer for application in
accordance with the terms and conditions hereof and, at all times prior to such payment, such
Collections or Deemed Collections shall be held in trust by Seller for the exclusive benefit of the
Purchasers and the Agents.



     Section 2.2 Collections Prior to Amortization. Prior to the Amortization Date, any Collections
and/or Deemed Collections received by the Servicer shall be set aside and held in trust by the
Servicer for the payment of any accrued and unpaid Aggregate Unpaids, for a



5









 




Reinvestment as provided in this Section 2.2 or to reduce the Aggregate Capital outstanding in
accordance with Section 1.3. If at any time any Collections are received by the Servicer prior to
the Amortization Date: (i) the Servicer shall set aside the Termination Percentage (hereinafter
defined) of Collections allocable to each Terminating Committed Purchaser’s Group and (ii) Seller
hereby requests, and the Purchasers (other than any Terminating Committed Purchasers) in each Group
are hereby deemed to make, simultaneously with such receipt, a reinvestment (each a “Reinvestment”)
with each Group’s Percentage of each and every Collection received by the Servicer that is part of
any Purchaser Interest (other than the Termination Percentage of any Collections allocable to each
Terminating Committed Purchaser’s Group and Collections set aside to reduce the Aggregate Capital
outstanding in accordance with Section 1.3), such that after giving effect to such Reinvestment,
the amount of Capital of such Purchaser Interest immediately after such receipt and corresponding
Reinvestment shall be equal to the amount of Capital immediately prior to such receipt. On each
Settlement Date prior to the occurrence of the Amortization Date, the Servicer shall remit to the
applicable Co-Agent’s account specified in Section 1.4 such Co-Agent’s Group’s Percentage of the
amounts set aside during the period since the prior Settlement Date that have not been subject to a
Reinvestment or used for an Aggregate Reduction pursuant to Section 1.3 and apply such amounts (if
not previously paid in accordance with Section 2.1): first, to reduce unpaid CP Costs, Yield and
other Recourse Obligations, if any, that are then due and owing to the members of such Group, and
second, to reduce the Capital of all Purchaser Interests of Terminating Committed Purchasers in
such Group, applied ratably to each such Terminating Committed Purchaser according to its
respective Termination Percentage. If any Group’s Capital, CP Costs, Yield and other Recourse
Obligations shall be reduced to zero, such Group’s Percentage of any additional Collections
received by the Servicer (i) if applicable, shall be remitted to the Agent’s account no later than
11:00 a.m. (Chicago time) to the extent required to fund such Group’s Percentage of any Aggregate
Reduction on such Settlement Date and (ii) any balance remaining thereafter shall be remitted from
the Servicer to Seller on such Settlement Date. Each Terminating Committed Purchaser shall be
allocated a ratable portion of Collections from the date of any assignment by Conduit pursuant to
Section
13.6 (the “Termination Date”) until such Terminating Committed Purchaser’s Capital shall be paid in
full. This ratable portion shall be calculated on the
Termination Date of each Terminating Committed Purchaser as a percentage equal to (i) Capital of
such Terminating Committed Purchaser outstanding on its Termination Date, divided by (ii) the
Aggregate Capital outstanding on such Termination Date (the “Termination Percentage”). Each
Terminating Committed Purchaser’s Termination Percentage shall remain constant prior to the
Amortization Date. On and after the Amortization Date, each Termination Percentage shall be
disregarded, and each Terminating Committed Purchaser’s Capital thereafter shall be reduced ratably
with all Committed Purchasers in accordance with Section 2.3.




     Section 2.3 Collections Following Amortization. On the Amortization Date and on each day
thereafter, the Servicer shall set aside and hold in trust, for the applicable Purchasers in each
Group, the applicable Group’s Percentage of all Collections received on each such day and an
additional amount for the payment of any accrued and unpaid Recourse Obligations owed by Seller and
not previously paid by Seller in accordance with Section 2.1. On and after the Amortization Date,
the Servicer shall, upon the request from time to time by (or pursuant to standing instructions
from) the Administrative Agent or pursuant to Section 1.3 (i) remit to each Co-Agent’s account
specified in Section 1.4, such Co-Agent’s Group’s Percentage of the



6









 




amounts set aside pursuant to the preceding sentence, and (ii) apply such amounts to reduce such
Group’s Capital associated with each such Purchaser Interest and any other Aggregate Unpaids owing
to such Group.




     Section 2.4 Application of Collections. If there shall be insufficient funds on deposit for
the Servicer to distribute funds in payment in full of the aforementioned amounts pursuant to
Section 2.2 or 2.3 (as applicable), the Servicer shall distribute funds in the following order of
priority:




     first, to the Servicer, in payment of the Servicer’s reasonable out-of-pocket
costs and expenses in connection with servicing, administering and collecting the
Receivables, including the Servicing Fee, if Seller or one of its Affiliates is not
then acting as the Servicer,




     second, (i) to the Administrative Agent in reimbursement of its reasonable costs of
collection and enforcement of this Agreement on behalf of the Purchasers and (ii) to the
Agents, in reimbursement of reasonable fees and expenses of a common legal counsel, or if
such common legal counsel determines that it cannot continue representation due to a
business or ethical conflict, separate legal counsel, representing Agents in connection
with such collection and enforcement,




     third, to each of the Co-Agents, ratably in accordance with its Group’s respective
Percentage, in payment of all accrued and unpaid fees under the Fee Letter, CP Costs
and Yield when and as due (to be shared ratably amongst the Purchasers in each Group in
accordance with their respective shares thereof),




     fourth, to each of the Co-Agents, ratably in accordance with its Group’s respective
Percentage, in reduction (if applicable) of its Group’s Capital (to be shared ratably
amongst the Purchasers in each Group in accordance with their respective shares
thereof),




     fifth, to each of the Co-Agents, ratably in accordance with its Group’s
respective Percentage, in ratable payment of all other unpaid Recourse Obligations
owing to such Group,




     sixth, in payment of the Servicer’s costs and expenses in connection with servicing,
administering and collecting the Receivables, including the Servicing Fee, if Seller or
one of its Affiliates is then acting as the Servicer, and




     seventh, after the Aggregate Unpaids have been indefeasibly reduced to zero, to
Seller.



     Section 2.5 Payment Rescission. No payment of any of the Aggregate Unpaids shall be considered
paid or applied hereunder to the extent that, at any time, all or any portion of such payment or
application is rescinded by application of law or judicial authority, or must otherwise be returned
or refunded for any reason. Seller shall remain obligated for the amount of any payment or
application so rescinded, returned or refunded, and shall promptly pay to each applicable Co-Agent
(for application to the Person or Persons who suffered such rescission,



7









 




return or refund) the full amount thereof, plus the Default Fee from the date of any such
rescission, return or refunding.




     Section 2.6 Maximum Purchaser Interests. Seller shall ensure that the Purchaser Interests of
the Purchasers do not exceed in the aggregate 100%. If the aggregate of the Purchaser Interests of
the Purchasers exceeds 100%, Seller shall determine the amount that must be applied to the
reduction of Capital of the Purchaser Interests to eliminate such excess (the “Mandatory Reduction
Amount”), and Seller shall pay, from funds available to Seller under Sections 2.2 and 2.3, to each
of the Co-Agents, not later than the next Business Day, its Group’s respective Percentage of the
Mandatory Reduction Amount for distribution to the Purchasers in such Group ratably in accordance
with their respective amounts of Capital outstanding.



     Section 2.7 Clean Up Call. Servicer shall have the right (after providing Agents with not less
than two (2) Business Days’ prior written notice), at any time following the reduction of the
Aggregate Capital to a level that is less than 10.0% of the original Purchase Limit, to purchase
from the Purchasers to the extent of available Collections for this purpose, all, but not less than
all, of the then outstanding Purchaser Interests. The aggregate purchase price in respect thereof
shall be an amount equal to the Aggregate Unpaids through the date of such repurchase, payable in
immediately available funds. Such repurchase shall be without representation, warranty or recourse
of any kind by, on the part of, or against any Purchaser or any Agent.



ARTICLE III.




CONDUIT FUNDING




     Section 3.1 CP Costs. Seller shall pay CP Costs with respect to the Capital funded by Conduit
for each day that any Capital in respect of such Purchaser Interest is outstanding. Capital funded
by a Conduit substantially with Pooled Commercial Paper will accrue CP Costs each day on a pro rata
basis, based upon the percentage share such Capital represents in relation to all assets held by
such Conduit and funded substantially with related Pooled Commercial Paper.



     Section 3.2 CP Costs Payments. On each Monthly Payment Date, Seller shall pay to each Co-Agent
(for the benefit of its Conduit) an aggregate amount equal to all accrued and unpaid CP Costs in
respect of all Capital of such Conduit for the immediately preceding Accrual Period in accordance
with Article II.



     Section 3.3 Calculation of CP Costs. Not later than the 5th Business Day of each
month hereafter, each Conduit shall calculate the aggregate amount of CP Costs of such Conduit
owing to it for the applicable Accrual Period and shall notify Seller of such aggregate amount.



ARTICLE IV.




COMMITTED PURCHASER FUNDING




     Section 4.1 Committed Purchaser Funding. Capital funded by the Committed Purchasers in a Group
shall accrue Yield for each day during each Tranche Period at either the



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LIBO Rate, the Transaction Rate or the Prime Rate in accordance with the terms and conditions
hereof. Until Seller gives notice to the applicable Co-Agent of another Discount Rate in accordance
with Section 4.4, the initial Discount Rate for any interest in a Purchaser Interest transferred to
the Committed Purchasers in a Group by the applicable Conduit pursuant to the terms and conditions
of any Liquidity Agreement shall be the Prime Rate. If the Committed Purchasers in a Group acquire
by assignment from the applicable Conduit any interest in a Purchaser Interest pursuant to a
Liquidity Agreement, Capital allocable to each interest so assigned shall each be deemed to have a
new Tranche Period commencing on the date of any such assignment.




     Section 4.2 Yield Payments. On the last day of each Tranche Period for each portion of Capital
funded by the Committed Purchasers in a Group, Seller shall pay to the applicable Co-Agent (for the
benefit of the Committed Purchasers in its Group) an aggregate amount equal to the accrued and
unpaid Yield for the entire Tranche Period of each such portion of Capital in accordance with
Article II.



     Section 4.3 Selection and Continuation of Tranche Periods.



          (a) With consultation from (and approval by) the applicable Co-Agent, Seller shall from time
to time request Tranche Periods for Capital funded by the Committed Purchasers in each Group.




          (b) Seller or the applicable Co-Agent, upon notice to and consent by the other received at
least three (3) Business Days prior to the end of a Tranche Period (the “Terminating Tranche”) for
any portion of Capital, may, effective on the last day of the Terminating Tranche: (i) divide any
such portion of Capital into multiple portions, (ii) combine any such portion of Capital with one
or more other portions that have a Terminating Tranche ending on the same day as such Terminating
Tranche or (iii) combine any such portion of Capital with a new interest in the Purchaser Interests
to be purchased on the day such Terminating Tranche ends, provided that in no event may any portion
of Capital of a Conduit be combined with any portion of Capital of its Committed Purchasers.




     Section 4.4 Committed Purchaser Discount Rates. Seller may select the LIBO Rate, the
Transaction Rate or the Prime Rate for each portion of Capital of the Committed Purchasers in each
Group. Seller shall by 11:00 a.m. (Chicago time): (i) at
least three (3) Business Days prior to the expiration of any Terminating Tranche with respect
to which the LIBO Rate is being requested as a new Discount Rate and (ii) at least one (1) Business
Day prior to the expiration of any Terminating Tranche with respect to which the Prime Rate or the
Transaction Rate is being requested as a new Discount Rate, give the applicable Co-Agent
irrevocable notice of the new Discount Rate for the portion of Capital of its Group associated with
such Terminating Tranche. Until Seller gives notice to the applicable Co-Agent of another Discount
Rate, the initial Discount Rate for any Purchaser Interest transferred to the Committed Purchasers
pursuant to the terms and conditions of any Liquidity Agreement shall be the Prime Rate.



     Section 4.5 Suspension of the LIBO Rate.



          (a) If prior to the first day of any Tranche Period:




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     (i) the applicable Co-Agent shall have determined (which determination shall be
conclusive and binding on Seller) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for ascertaining the LIBO
Rate for such Tranche Period, or




     (ii) the applicable Co-Agent shall have received notice from Committed Purchasers
holding Commitments in excess of 50% of the aggregate of all Commitments in such
Co-Agent’s Group that the LIBO Rate determined for such Tranche Period will not adequately
and fairly reflect the cost of acquiring or maintaining a Purchaser Interest at such LIBO
Rate,


such Co-gent shall give fax or telephonic notice thereto to Seller and the relevant Committed
Purchasers as soon as practicable thereafter. If such notice is given (A) any Capital funded by the
Committed Purchasers in such Group requested to accrue Yield at a LIBO Rate as of the first day of
such Tranche Period shall instead accrue Yield at the Prime Rate, (B) any Capital funded by the
Committed Purchasers in such Group that is already accruing Yield at a LIBO Rate shall, after the
last day of such Tranche Period, accrue Yield at the Prime Rate, and (C) until such notice is
withdrawn, Seller shall not request that Yield accrue at a LIBO Rate on any further Purchaser
Interests of such Group.




          (b) If less than all of the Committed Purchasers in a Group give a notice to the applicable
Co-Agent pursuant to Section 4.5(a)(ii), each Committed Purchaser in such Group which gave such a
notice shall be obliged, at the request of Seller, Conduit or such Co-Agent, to assign all of its
rights and obligations hereunder to (i) another Committed Purchaser or (ii) another funding entity
nominated by Seller or the applicable Co-Agent that is acceptable to such Conduit and willing to
participate in this Agreement through the Liquidity Termination Date in the place of such notifying
Committed Purchaser; provided that (i) the notifying Committed Purchaser receives payment in full,
pursuant to an Assignment Agreement, of an amount equal to such notifying Committed Purchaser’s Pro
Rata Share of the Capital and Yield owing to all of the Committed Purchasers in such Group and all
accrued but unpaid fees and other costs and expenses payable in respect of its Pro Rata Share of
the Purchaser Interests of the Committed Purchasers in such Group, and (ii) the replacement
Committed Purchaser otherwise satisfies the requirements of Section 12.1(b).




     Section 4.6 Liquidity Agreement Fundings. The parties hereto acknowledge that each Conduit may
assign all or any portion of its Purchaser Interests to the Committed Purchasers in its Group at
any time pursuant to its Liquidity Agreement to finance or refinance the necessary portion of its
Purchaser Interests through a funding under such Liquidity Agreement to the extent available. The
fundings under each Liquidity Agreement will accrue Yield in accordance with this Article IV.
Regardless of whether a funding of Purchaser Interests by Committed
Purchasers constitutes the direct purchase of an interest in Purchaser Interests hereunder, an
assignment under the applicable Liquidity Agreement of an interest in Purchaser Interests
originally funded by a Conduit or the sale of one or more participations or other interests under
such Liquidity Agreement of an interest in a Purchaser Interest originally funded by a Conduit,
each Committed Purchaser participating in a funding of an interest in Purchaser Interests shall
have the rights and obligations of a “Purchaser” hereunder with the same force and effect as if it
had directly purchased such interest from Seller hereunder.



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ARTICLE V.




REPRESENTATIONS AND WARRANTIES




     Section 5.1 Representations and Warranties of the Seller Parties. Each Seller Party hereby
represents and warrants to the Agents and the Purchasers, as to itself, as of the date hereof and
as of the date of each Incremental Purchase and the date of each Reinvestment that:



          (a) Corporate Existence and Power. Such Seller Party is a corporation duly organized, validly
existing and in good standing under the laws of Delaware and no other state or jurisdiction, and
such jurisdiction must maintain a public record showing the organization to have been organized.
Such Seller Party is duly qualified to do business and is in good standing as a foreign
corporation, and has and holds all corporate power and all governmental licenses, authorizations,
consents and approvals required to carry on its business in each jurisdiction in which its business
is conducted except where the failure to so qualify or so hold could not reasonably be expected to
have a Material Adverse Effect.



          (b) Power and Authority; Due Authorization, Execution and Delivery. The execution and delivery
by such Seller Party of this Agreement and each other Transaction Document to which it is a party,
and the performance of its obligations hereunder and thereunder and, in the case of Seller,
Seller’s use of the proceeds of purchases made hereunder, are within its corporate powers and
authority and have been duly authorized by all necessary corporate action on its part. This
Agreement and each other Transaction Document to which such Seller Party is a party has been duly
executed and delivered by such Seller Party.



          (c) No Conflict. The execution and delivery by such Seller Party of this Agreement and each
other Transaction Document to which it is a party, and the performance of its obligations hereunder
and thereunder do not contravene or violate (i) its certificate or articles of incorporation or
by-laws, (ii) any law, rule or regulation applicable to it, (iii) any restrictions under any
agreement, contract or instrument to which it is a party or by which it or any of its property is
bound, or (iv) any order, writ,
judgment, award, injunction or decree binding on or affecting it or its property, and do not
result in the creation or imposition of any Adverse Claim on assets of such Seller Party or its
Subsidiaries (except as created hereunder) except, in any case, where such contravention or
violation could not reasonably be expected to have a Material Adverse Effect; and no transaction
contemplated hereby requires compliance with any bulk sales act or similar law.



          (d) Governmental Authorization. Other than the filing of the financing statements required
hereunder, no authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for the due execution and delivery by such
Seller Party of this Agreement and each other Transaction Document to which it is a party and the
performance of its obligations hereunder and thereunder.



          (e) Actions, Suits. There are no actions, suits or proceedings pending, or to the best of such
Seller Party’s knowledge, threatened, against or affecting such Seller Party, or any of its
properties, in or before any court, arbitrator or other body, that could reasonably be expected to
have a Material Adverse Effect.



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          (f) Binding Effect. This Agreement and each other Transaction Document to which such Seller
Party is a party constitute the legal, valid and binding obligations of such Seller Party
enforceable against such Seller Party in accordance with their respective terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law).




          (g) Accuracy of Information. All information heretofore furnished by such Seller Party or any
of its Affiliates to the Agents or the Purchasers for purposes of or in connection with this
Agreement, any of the other Transaction Documents or any transaction contemplated hereby or thereby
is, and all such information hereafter furnished by such Seller Party or any of its Affiliates to
the Agents or the Purchasers will be, true and accurate in every material respect on the date such
information is stated or certified and does not and will not contain any material misstatement of
fact or omit to state a material fact or any fact necessary to make the statements contained
therein, taken as a whole, not misleading.




          (h) Use of Proceeds. No proceeds of any purchase hereunder will be used (i) for a purpose that
violates, or would be inconsistent with, Regulation T, U or X promulgated by the Board of Governors
of the Federal Reserve System from time to time or (ii) to acquire any security in any transaction
which is subject to Section 12, 13 or 14 of the Securities Exchange Act of 1934, as amended.




          (i) Good Title. Immediately prior to each purchase hereunder, Seller shall be the legal and
beneficial owner of the Receivables and Related Security with respect thereto, free and clear of
any Adverse Claim, except as created by the Transaction Documents. There have been duly filed all
financing statements or other similar instruments or documents necessary under the UCC (or any
comparable law) of all appropriate jurisdictions to perfect Seller’s ownership interest in each
Receivable, its Collections and the Related Security.




          (j) Perfection. This Agreement, together with the filing of the financing statements
contemplated hereby, is effective to, and shall, upon each purchase hereunder, transfer to the
Administrative Agent for the benefit of the relevant Purchaser or Purchasers (and the
Administrative Agent for the benefit of such Purchaser or Purchasers shall acquire from Seller) a
valid and perfected first priority undivided percentage ownership or security interest in each
Receivable existing or hereafter arising and in the Related Security and Collections with respect
thereto, free and clear of any Adverse Claim, except as created by the Transactions Documents.
There have been duly filed all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect the
Administrative Agent’s (on behalf of the Purchasers) ownership or security interest in the
Receivables, the Related Security and the Collections. Such Seller Party’s jurisdiction of
organization is a jurisdiction whose law generally requires information concerning the existence of
a nonpossessory security interest to be made generally available in a filing, record or
registration system as a condition or result of such a security interest’s obtaining priority over
the rights of a lien creditor which respect to collateral.




          (k) Places of Business and Locations of Records. The principal places of business and chief
executive office of such Seller Party and the offices where it keeps all of its




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Records are located at the address(es) listed on Exhibit III or such other locations of which the
Administrative Agent has been notified in accordance with Section 7.2(a) in jurisdictions where all
action required by Section 14.4(a) has been taken and completed. Seller’s Federal Employer
Identification Number is correctly set forth on Exhibit III.




          (l) Collections. The conditions and requirements set forth in Section 7.1(j) and Section 8.2
have at all times been satisfied and duly performed. The names and addresses of all Collection
Banks, together with the account numbers of the Collection Accounts of Seller at each Collection
Bank and the post office box number of each Lock-Box, are listed on Exhibit IV. Seller has not
granted any Person, other than the Administrative Agent as contemplated by this Agreement, dominion
and control of any Lock-Box or Collection Account, or the right to take dominion and control of any
such Lock-Box or Collection Account at a future time or upon the occurrence of a future event.




          (m) Material Adverse Effect. (i) The initial Servicer represents and warrants that since
December 31, 2004, no event has occurred that would have a material adverse effect on the financial
condition or operations of the initial Servicer and its Subsidiaries or the ability of the initial
Servicer to perform its obligations under this Agreement, and (ii) Seller represents and warrants
that since the date of this Agreement, no event has occurred that would have a material adverse
effect on (A) the financial condition or operations of Seller, (B) the ability of Seller to perform
its obligations under the Transaction Documents, or (C) the collectibility of the Receivables
generally or any material portion of the Receivables.




          (n) Names. The name in which Seller has executed this Agreement is identical to the name of
Seller as indicated on the public record of its state of organization which shows Seller to have
been organized. In the past five (5) years, Seller has not used
any corporate names, trade names or assumed names other than the name in which it has executed
this Agreement and the names set forth on Exhibit VI hereto.




          (o)
Ownership of Seller. Tenneco Operating owns, directly or indirectly, 100% of the issued
and outstanding capital stock of Seller. Such capital stock is validly issued, fully paid and
nonassessable, and there are no options, warrants or other rights to acquire securities of Seller.




          (p)
Not a Holding Company or an Investment Company. Such Seller Party is not a “holding
company” or a “subsidiary holding company” of a “holding company” within the meaning of the Public
Utility Holding Company Act of 1935, as amended, or any successor statute. Such Seller Party is not
an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or
any successor statute.




          (q) Compliance with Law. Such Seller Party has complied in all respects with all applicable
laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may
be subject, except where the failure to so comply could not reasonably be expected to have a
Material Adverse Effect. Each Receivable, together with the Contract related thereto, does not
contravene any laws, rules or regulations applicable thereto (including, without limitation, laws,
rules and regulations relating to truth in lending, fair credit billing, fair credit reporting,
equal credit opportunity, fair debt collection practices and privacy), and no part of




13









 







such Contract is in violation of any such law, rule or regulation, except where such contravention
or violation could not reasonably be expected to have a Material Adverse Effect.




          (r) Compliance with Credit and Collection Policy. Such Seller Party has complied with the
Credit and Collection Policy with regard to each Receivable and in all material respects with the
related Contract, and has not made any change to such Credit and Collection Policy, except such
change as to which the Administrative Agent has been notified in accordance with Section
7.1(a)(vii).




          (s) Payments to the Applicable Originator. With respect to each Receivable transferred to
Seller under a Receivables Sale Agreement by the applicable Originator, Seller has given reasonably
equivalent value to such Originator in consideration therefor and such transfer was not made for or
on account of an antecedent debt. No transfer by any Originator of any Receivable under its
Receivables Sale Agreement is or may be voidable under any section of the Bankruptcy Reform Act of
1978 (11 U.S.C. §§ 101 et seq.), as amended.




          (t) Enforceability of Contracts. Each Contract with respect to each Receivable is effective to
create, and has created, a legal, valid and binding obligation of the related Obligor to pay the
Outstanding Balance of the Receivable created thereunder and any accrued interest thereon,
enforceable against the Obligor in accordance with its terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or
limiting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).




          (u) Eligible Receivables. Each Receivable included in the Net Receivables Balance as an
Eligible Receivable on the date of its purchase under the applicable Receivables Sale Agreement was
an Eligible Receivable on such purchase date.




          (v) Net Receivables Balance. Seller has determined that, immediately after giving effect to
each purchase hereunder, the Net Receivables Balance is at least equal to the sum of (i) the
Aggregate Capital, plus (ii) the Aggregate Reserves.




          (w) Accounting. The manner in which such Seller Party accounts for the transactions
contemplated by this Agreement and the applicable Receivables Sale Agreement does not jeopardize
the true sale analysis.




     Section 5.2 Committed Purchaser Representations and Warranties. Each Committed Purchaser
hereby represents and warrants to its applicable Co-Agent, its Conduit, the Administrative Agent
and the Seller Parties that:



          (a)
Existence and Power. Such Committed Purchaser is a corporation or a banking association
duly organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization, and has all corporate power to perform its obligations hereunder.




          (b) No Conflict. The execution and delivery by such Committed Purchaser of this Agreement and
the performance of its obligations hereunder are within its corporate powers, have been duly
authorized by all necessary corporate action, do not contravene or violate (i) its




14









 







certificate or articles of incorporation or association or by-laws, (ii) any law, rule or
regulation applicable to it, (iii) any restrictions under any agreement, contract or instrument to
which it is a party or any of its property is bound, or (iv) any order, writ, judgment, award,
injunction or decree binding on or affecting it or its property, and do not result in the creation
or imposition of any Adverse Claim on its assets. This Agreement has been duly authorized, executed
and delivered by such Committed Purchaser.




          (c) Governmental Authorization. No authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body is required for the due execution
and delivery by such Committed Purchaser of this Agreement and the performance of its obligations
hereunder.




          (d) Binding Effect. This Agreement constitutes the legal, valid and binding obligation of such
Committed Purchaser enforceable against such Committed Purchaser in accordance with its terms,
except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or
other similar laws relating to or limiting creditors’ rights generally and by general principles of
equity (regardless of whether such enforcement is sought in a proceeding in equity or at law).




ARTICLE VI.




CONDITIONS OF PURCHASES




     Section 6.1 Conditions Precedent to Amendment and Restatement. The effectiveness of the
amendment and restatement evidenced hereby is subject to the conditions precedent that (a) the
Administrative Agent shall have received on or before the date of such purchase those documents
listed on Schedule B and (b) each of the
Agents shall have received all fees and expenses required to be paid on such date pursuant to
the terms of this Agreement and the Fee Letter.



     Section 6.2 Conditions Precedent to All Purchases and Reinvestments. Each purchase of a
Purchaser Interest and each Reinvestment shall be subject to the further conditions precedent that
(a) the Servicer shall have delivered to the Administrative Agent on or prior to the date of such
purchase or Reinvestment, in form and substance satisfactory to the Agents, all Settlement Reports
as and when due under Section 8.5; (b) the Facility Termination Date shall not have occurred; (c)
each of the Agents shall have received such other approvals, opinions or documents as it may
reasonably request, provided, however, that no Co-Agent shall request additional approvals,
opinions or documents pursuant to this Section unless mandated by Standard & Poor’s or Moody’s
Investors Service, Inc. or unless there has been a change in applicable law; and (d) on the date of
each such Incremental Purchase or Reinvestment, the following statements shall be true (and
acceptance of the proceeds of such Incremental Purchase or Reinvestment shall be deemed a
representation and warranty by Seller that such statements are then true):



               (i) the representations and warranties set forth in Section 5.1 excluding, in the case of any
Reinvestment, Section 5.1(e) (except as it relates to a Material Adverse Effect of the of the type
described in clause (iii) of the definition of such term ) or



15









 




Section 5.1(m), are true and correct on and as of the date of such Incremental Purchase or
Reinvestment as though made on and as of such date;




               (ii) no event has occurred and is continuing, or would result from such Incremental Purchase
or Reinvestment, that will constitute (A) in the case of an Incremental Purchase, an Amortization
Event or an Unmatured Amortization Event and (B) in the case of a Reinvestment, an Amortization
Event; and



               (iii) the Aggregate Capital does not exceed the Purchase Limit and the aggregate Purchaser
Interests do not exceed 100%.


It is expressly understood that each Reinvestment shall, unless otherwise directed by the
applicable Co-Agent or Purchaser, occur automatically on each day that the Servicer shall receive
any Collections without the requirement that any further action be taken on the part of any Person
and notwithstanding the failure of Seller to satisfy any of the foregoing conditions precedent in
respect of such Reinvestment. The failure of Seller to satisfy any of the foregoing conditions
precedent in respect of any Reinvestment shall give rise to a right of the Co-Agents, which right
may be exercised at any time on demand of the Co-Agents, acting together, to rescind the related
purchase and direct Seller to pay to each Co-Agent for the benefit of the Purchasers in its Group
an amount equal to such Group’s Percentage of the Collections prior to the Amortization Date that
shall have been applied to the affected Reinvestment.




ARTICLE VII.




COVENANTS




     Section 7.1 Affirmative Covenants of the Seller Parties. Until the date on which the Aggregate
Unpaids have been indefeasibly paid in full and this Agreement terminates
in accordance with its terms, each Seller Party hereby covenants, as to itself, as set forth
below:



          (a) Financial Reporting. Such Seller Party will maintain, for itself and each of its
Subsidiaries, a system of accounting established and administered in accordance with GAAP, and
furnish or cause to be furnished to the Co-Agents:




               (i) Annual Reporting. (A) As soon as available, but in any event within 90 days after the end
of each fiscal year of Performance Guarantor, a copy of the audited consolidated balance sheet of
Performance Guarantor and its consolidated Subsidiaries as at the end of such year and the related
audited consolidated statements of income and of cash flows (or such other similar or additional
statement then requested by the SEC for annual reports filed pursuant to the Exchange Act) for the
such year, setting forth in each case in comparative form the figures for the previous year,
reported on without a “going concern” or like qualification or exception, or qualification arising
out of the scope of the audit, or other material qualification of exception, by independent public
accountants of nationally recognized standing, and (B) as soon as available, but in any event
within 105 days after the end of each fiscal year of Seller, a copy of the unaudited balance sheet
of Seller as at the end of such year and the related unaudited statements of income and of cash
flows for the such year, setting forth, in each case, in



16









 




comparative form the figures for the previous year, if applicable, certified by an Authorized
Officer of Seller.




               (ii) Quarterly Reporting. (A) As soon as available, but in any event not later than 45 days
after the end of each of the first three quarterly periods of each fiscal year of Performance
Guarantor, the unaudited consolidated balance sheet of Performance Guarantor and its consolidated
Subsidiaries as at the end of such quarter and the related unaudited consolidated statements of
income and of cash flows (or such other or similar or additional statement then required by the SEC
for quarterly reports filed pursuant to the Exchange Act) for such quarter and the portion of the
fiscal year through the end of such quarter, setting forth in each case in comparative form the
figures for the previous year, certified by Performance Guarantor’s chief executive officer,
president or chief financial officer, and (B) as soon as available, but in any event not later than
60 days after the end of each of the first three quarterly periods of each fiscal year of Seller,
analogous unconsolidated unaudited statements for Seller, certified by an Authorized Officer of
Seller.



               (iii) Compliance Certificate. Together with the financial statements required hereunder, a
compliance certificate in substantially the form of Exhibit V signed by an Authorized Officer of
Performance Guarantor or Seller, as applicable, and dated the date of such annual financial
statement or such quarterly financial statement, as the case may be.



               (iv) Shareholders Statements and Reports. Promptly upon the furnishing thereof to the
shareholders of such Seller Party copies of all financial statements, reports and proxy statements
so furnished.



               (v) S.E.C. Filings. Within 60 days after the end of each of the first three (3) fiscal
quarters of Performance Guarantor, a narrative discussion and analysis of the financial condition
and results of operations of Performance Guarantor
and its Subsidiaries for such fiscal quarter and for the period from the beginning of the then
current fiscal year to the end of such fiscal quarter, as compared to the comparable periods of the
previous year (or such other or similar additional statement then required by the SEC for quarterly
reports filed pursuant to the Exchange Act); and within five days after the same are filed, copies
of all financial statements and reports that Performance Guarantor may make to, or file with, the
SEC.



               (vi) Copies of Notices. Promptly upon its receipt of any notice, request for consent,
financial statements, certification, report or other communication under or in connection with any
Transaction Document from any Person other than one of the Agents or Purchasers, copies of the
same.



               (vii) Change in Credit and Collection Policy. At least thirty (30) days prior to the
effectiveness of any material change in or material amendment to the Credit and Collection Policy,
a copy of the Credit and Collection Policy then in effect and a notice (A) indicating such change
or amendment, and (B) if such proposed change or amendment would be reasonably likely to adversely
affect the collectibility of the Receivables or decrease the credit quality of any newly created
Receivables, requesting the Agents’ consent thereto.



17









 





               (viii) Other Information. Promptly, from time to time, such other information, documents,
records or reports relating to the Receivables or the condition or operations, financial or
otherwise, of such Seller Party as any Agent may from time to time reasonably request in order to
protect the interests of the Agents and the Purchasers under or as contemplated by this Agreement.



          (b) Notices. Such Seller Party will notify the Agents in writing of any of the following
promptly upon learning of the occurrence thereof, describing the same and, if applicable, the steps
being taken with respect thereto:




               (i) Amortization Events or Potential Amortization Events. The occurrence of each Amortization
Event and each Potential Amortization Event, by a statement of an Authorized Officer of such Seller
Party.



               (ii) Judgment and Proceedings. (A) (1) The entry against the
Performance Guarantor or any of its Subsidiaries (other than Seller) of one or more judgments or
decrees involving in the aggregate for the Performance Guarantor and such Subsidiaries a liability
(not paid or fully covered by insurance as to which the relevant insurance company has acknowledged
coverage) of $75,000,000 or more, and (2) the institution of any litigation, arbitration proceeding
or governmental proceeding against the Performance Guarantor or any of its Subsidiaries (other than
Seller) which, if adversely determined, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect; and (B) the entry of any judgment or decree or the
institution of any litigation, arbitration proceeding or governmental proceeding against Seller.



               (iii) Material Adverse Effect. The occurrence of any event or condition that has had, or could
reasonably be expected to have, a Material Adverse Effect.



               (iv) Purchase Termination Date. The occurrence of the “Purchase Termination Date” under and as
defined in any Receivables Sale Agreement.



               (v) Defaults Under Other Agreements. The occurrence of a default or an event of default under
any other financing arrangement pursuant to which such Seller Party is a debtor or an obligor.



               (vi) Downgrade of Tenneco Automotive. Any downgrade in the rating of any Indebtedness of
Tenneco Automotive by Standard & Poor’s Ratings Service, a division of the McGraw-Hill Companies,
or by Moody’s Investors Service, Inc., setting forth the Indebtedness affected and the nature of
such change.



          (c) Compliance with Laws and Preservation of Corporate Existence. Such Seller Party will
comply in all respects with all applicable laws, rules, regulations, orders, writs, judgments,
injunctions, decrees or awards to which it may be subject, except where the failure to so comply
could not reasonably be expected to have a Material Adverse Effect. Such Seller Party will preserve
and maintain its corporate existence, rights, franchises and privileges in the jurisdiction of its
incorporation, and qualify and remain qualified in good standing as a foreign corporation in each
jurisdiction where its business is conducted.




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          (d) Audits. Such Seller Party will furnish to the Agents from time to time such information
with respect to it and the Receivables as any Agent may reasonably request. Such Seller Party will,
from time to time during regular business hours as requested by the Agents, acting together, upon
reasonable notice and at the sole cost of such Seller Party, permit a single firm acting for both
Co-Agents: (i) to examine and make copies of and abstracts from all Records in the possession or
under the control of such Person relating to the Receivables and the Related Security, including,
without limitation, the related Contracts, and (ii) to visit the offices and properties of such
Person for the purpose of examining such materials described in clause (i) above, and to discuss
matters relating to such Person’s financial condition or the Receivables and the Related Security
or any Person’s performance under any of the Transaction Documents or any Person’s performance
under the Contracts and, in each case, with any of the officers or employees of Seller or the
Servicer having knowledge of such matters (the procedures described in the foregoing clauses (i)
and (ii) are referred to herein as an “Audit”); provided, however, that Audits shall be limited to
not more than two per calendar year so long as (i) no Amortization Event has occurred and is
continuing and (ii) the immediately preceding Audit was satisfactory to the Agents in all material
respects.




          (e) Keeping and Marking of Records and Books.




               (i) The Servicer will maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing Receivables in the event
of the destruction of the originals thereof), and keep and maintain all documents, books, records
and other information reasonably necessary or advisable for the collection of all Receivables
(including, without limitation, records adequate to permit the immediate identification of each new
Receivable and all Collections of and adjustments to each existing Receivable). The Servicer will
give the Agents notice of any material change in the administrative and operating procedures
referred to in the previous sentence.



               (ii) Such Seller Party will: (A) on or prior to the date hereof, mark its master data
processing records and other books and records relating to the
Purchaser Interests with a legend, acceptable to the Administrative Agent, describing the
Purchaser Interests and (B) upon the request of the Administrative Agent following the occurrence
and during the continuance of any Amortization Event: (x) mark each Contract constituting an
instrument or chattel paper with a legend describing the Purchaser Interests and (y) deliver to the
Administrative Agent all Contracts (including, without limitation, all multiple originals of any
such Contract) relating to the Receivables.



          (f) Compliance with Contracts and Credit and Collection Policy. Such Seller Party will timely
and fully (i) perform and comply with all material provisions, covenants and other promises
required to be observed by it under the Contracts related to the Receivables, and (ii) comply in
all respects with the Credit and Collection Policy in regard to each Receivable and the related
Contract.




          (g) Performance and Enforcement of Receivables Sale Agreement. Seller will, and will require
the applicable Originator to, perform each of their respective obligations and undertakings under
and pursuant to the applicable Receivables Sale Agreement, will purchase Receivables thereunder in
strict compliance with the terms thereof and will vigorously




19









 







enforce the rights and remedies accorded to Seller under such Receivables Sale Agreement. Seller
will take all actions to perfect and enforce its rights and interests (and the rights and interests
of the Agents and the Purchasers as assignees of Seller) under the Receivables Sale Agreements as
the Administrative Agent may from time to time reasonably request, including, without limitation,
making claims to which it may be entitled under any indemnity, reimbursement or similar provision
contained in the Receivables Sale Agreements.




          (h) Ownership. Seller will, and will require the Originators to, take all necessary action to
(i) vest legal and equitable title to the Receivables, the Related Security and the Collections
purchased under the Receivables Sale Agreements irrevocably in Seller, free and clear of any
Adverse Claims other than Adverse Claims in favor of the Agents and the Purchasers (including,
without limitation, the filing of all financing statements or other similar instruments or
documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to
perfect Seller’s interest in such Receivables, Related Security and Collections and such other
action to perfect, protect or more fully evidence the interest of Seller therein as any Agent may
reasonably request), and (ii) establish and maintain, in favor of the Administrative Agent, for the
benefit of the Purchasers, a valid and perfected first priority undivided percentage ownership
interest (and/or a valid and perfected first priority security interest) in all Receivables,
Related Security and Collections to the full extent contemplated herein, free and clear of any
Adverse Claims other than Adverse Claims in favor of the Administrative Agent for the benefit of
the Purchasers (including, without limitation, the filing of all financing statements or other
similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect the Administrative Agent’s (for the benefit of the Purchasers) interest in
such Receivables, Related Security and Collections and such other action to perfect, protect or
more fully evidence the interest of
the Administrative Agent for the benefit of the Purchasers as the Administrative Agent may
reasonably request).




          (i) Purchasers’ Reliance. Seller acknowledges that the Purchasers are entering into the
transactions contemplated by this Agreement in reliance upon Seller’s identity as a legal entity
that is separate from each of the Tenneco Automotive Entities. Therefore, from and after the date
of execution and delivery of this Agreement, Seller shall take all reasonable steps, including,
without limitation, all steps that any Agent or Purchaser may from time to time reasonably request,
to maintain Seller’s identity as a separate legal entity and to make it manifest to third parties
that Seller is an entity with assets and liabilities distinct from those of each of the Tenneco
Automotive Entities and not just a division of any of the Tenneco Automotive Entities. Without
limiting the generality of the foregoing and in addition to the other covenants set forth herein:




                    (A) Seller will at all times have a board of directors consisting of at least two members, at
least one member of which is an Independent Director, and shall compensate the Independent Director
from its own funds;



                    (B) Seller will maintain its own telephone number, stationery, and other business forms
separate from those of any other Person (including each Tenneco Automotive Entity) and will conduct
business in its own name except that, as a general matter, Obligors will not be informed in the
first instance that Tenneco Operating is acting on behalf of Seller as servicer;



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                    (C) Seller will conduct its business at an office separate from the offices of the Originators
(which however, may be within the premises of and leased (at a fair market rent) from a Tenneco
Automotive Entity in which case such office will be clearly identified (by signage or otherwise));



                    (D) Seller will require that any consolidated financial statements of the Tenneco Automotive
Entities that include Seller will contain a footnote to the effect that the Originators have sold
the Receivable Assets to Seller, which is a separate legal entity and which has then entered into
this Agreement. Separate unaudited balance sheets and statements of income and cash flows (with no
footnote disclosures) will also be prepared for Seller. In addition to the aforementioned footnote
to any consolidated financial statement, Seller will take (or require the Originators to take)
certain actions to disclose publicly Seller’s separate existence and the transactions, including,
without limitation, through the filing of UCC financing statements. Seller will not conceal or
permit the Originators to conceal from any interested party any transfers contemplated by the
Transaction Documents, although Obligors will not be affirmatively informed in the first instance
of the transfer of their obligations;



                    (E) Seller will ensure that any allocations of direct, indirect or overhead expenses for items
shared between Seller and any Tenneco Automotive Entity that are not included as part of the
Servicing Fee will be made among such entities to the extent practical on the basis of actual use
or value of services rendered and otherwise on a basis reasonably related to actual use or the
value of services rendered;



                    (F) Except as provided in paragraph (E) above regarding the allocation of certain shared
overhead items, Seller will pay its own operating expenses and liabilities from its own funds;



                    (G) Seller will ensure that each of the Tenneco Automotive Entities, on the one hand, and
Seller, on the other hand, maintain its assets and liabilities in such a manner that it is not
costly or difficult to segregate, ascertain or otherwise identify Seller’s individual assets and
liabilities from those of the other or from those of any other person or entity. Except as set
forth below, Seller will maintain its own books of account and corporate records separate from the
Tenneco Automotive Entities. Seller will not commingle or pool its funds (or other assets) or
liabilities with those of any except as specifically provided in this Agreement with respect to the
temporary commingling of collections of the Receivable Assets and except with respect to Servicer’s
retention of Records pertaining to the Receivable Assets. Seller will not maintain joint bank
accounts or other depository accounts to which any Tenneco Automotive Entity (other than solely in
their capacity as Servicer or, as applicable, a permitted designee of Servicer) has independent
access;



                    (H) Seller will strictly observe, and will require each of the Tenneco Automotive Entities to
strictly observe, corporate formalities, including with respect to its dealings with each other,
and will do all things reasonably necessary to ensure that no transfer of assets between any
Originator, on the one hand, and Seller, on the other hand, is made without adherence to corporate
formalities;



21









 





                    (I) All distributions made by Seller to Tenneco Operating as its sole shareholder shall be
made in accordance with applicable law; and



                    (J) Seller will not enter into any transaction with any of the Tenneco Automotive Entities,
even if permitted (although not expressly provided for in) the Transaction Documents, unless such
transaction is fair and equitable to Seller, on the one hand, and such Tenneco Automotive Entity on
the other hand, and is of the type of transaction that would be entered into by a prudent Person in
the position of Seller vis à vis such Tenneco Automotive Entity and that is on terms that are at
least favorable as may be obtained from a Person who is not Tenneco Automotive Entity.



          (j) Collections. Such Seller Party will cause (1) all proceeds from all Lock-Boxes to be
directly deposited by a Collection Bank into a Collection Account and (2) each Lock-Box and
Collection Account to be subject at all times to a Collection Account Agreement that is in full
force and effect. In the event any payments relating to Receivables are remitted directly to Seller
or any Affiliate of Seller, Seller will remit (or will cause all such payments to be remitted)
directly to a Collection Bank and deposited into a Collection Account within two (2) Business Days
following receipt thereof, and, at all times prior to such remittance, Seller will itself hold or,
if applicable, will cause such payments to be held in trust for the exclusive benefit of the Agents
and the Purchasers. Seller will maintain exclusive ownership, dominion and control (subject to the
terms of this Agreement) of each Lock-Box and Collection Account and shall not grant the right to
take dominion and control of any Lock-Box or Collection Account at a future time or upon the
occurrence of a future event to any Person, except to the Administrative Agent as contemplated by
this Agreement.




          (k) Taxes. Such Seller Party will file all tax returns and reports required by law to be filed
by it and will promptly pay all taxes and governmental charges at any time owing, except any such
taxes which are not yet delinquent or are
being diligently contested in good faith by appropriate proceedings and, in each case, for
which adequate reserves in accordance with GAAP shall have been set aside on its books. Seller will
pay when due any taxes payable in connection with the Receivables, exclusive of taxes on or
measured by income or gross receipts of any Agent or any Purchaser.




          (l) Payment to the Applicable Originator. With respect to any Receivable purchased by Seller
from an Originator, such sale shall be effected under, and in strict compliance with the terms of,
the applicable Receivables Sale Agreement, including, without limitation, the terms relating to the
amount and timing of payments to be made to such Originator in respect of the purchase price for
such Receivable.




     Section 7.2 Negative Covenants of the Seller Parties. Until the date on which the Aggregate
Unpaids have been indefeasibly paid in full and this Agreement terminates in accordance with its
terms, each Seller Party hereby covenants, as to itself, that:



          (a) Name Change, Offices and Records. Such Seller Party will not (i) change its name, identity
or corporate structure (within the meaning of Article 9 of any applicable enactment of the UCC) or
at any time while the location of its chief executive office is relevant to perfection of any
interest in the Receivables, relocate its chief executive office or (ii) change




22









 







any office where Records are kept, unless it shall have: (A) given the Administrative Agent at
least forty-five (45) days’ prior written notice thereof and (B) delivered to the Administrative
Agent all financing statements, instruments and other documents requested by the Agent in
connection with such change or relocation.




          (b) Change in Payment Instructions to Obligors. Except as may be required by the
Administrative Agent pursuant to Section 8.2(b), such Seller Party will not add or terminate any
bank as a Collection Bank, or make any change in the instructions to Obligors regarding payments to
be made to any Lock-Box or Collection Account, unless the Administrative Agent shall have received,
at least ten (10) days before the proposed effective date therefor, (i) written notice of such
addition, termination or change and (ii) with respect to the addition of a Collection Bank or a
Collection Account or Lock-Box, an executed Collection Account Agreement with respect to the new
Collection Account or Lock-Box; provided, however, that the Servicer may make changes in
instructions to Obligors regarding payments if such new instructions require such Obligor to make
payments to another existing Collection Account.




          (c) Modifications to Contracts and Credit and Collection Policy. Such Seller Party will not,
without the Agents’ consent, make any change to the Credit and Collection Policy that could
reasonably be expected to adversely affect the collectibility of the Receivables or decrease the
credit quality of any newly created Receivables. Except as provided in Section 8.2(d), the Servicer
will not extend, amend or otherwise modify the terms of any Receivable or any Contract related
thereto other than in accordance with the Credit and Collection Policy.




          (d) Sales, Liens. Seller will not sell, assign (by operation of law or otherwise) or otherwise
dispose of, or grant any option with respect to, or create or suffer to exist any Adverse Claim
upon (including, without limitation, the filing of any financing statement) or with respect to, any
Receivable, Related Security or Collections,
or upon or with respect to any Contract under which any Receivable arises, or any Lock-Box or
Collection Account, or assign any right to receive income with respect thereto (other than, in each
case, the creation of the interests therein in favor of the Agents and the Purchasers provided for
herein), and Seller will defend the right, title and interest of the Agents and the Purchasers in,
to and under any of the foregoing property, against all claims of third parties claiming through or
under Seller or any Originator. Seller will not create or suffer to exist any mortgage, pledge,
security interest, encumbrance, lien, charge or other similar arrangement on any of its inventory.




          (e) Net Receivables Balance. At no time prior to the Amortization Date shall Seller permit the
Net Receivables Balance to be less than an amount equal to the sum of (i) the Aggregate Capital
plus (ii) the Aggregate Reserves.




          (f) Termination Date Determination. Seller will not designate the
“Termination Date” (as such term is defined in any Receivables Sale Agreement), or send any written
notice to the Originators in respect thereof, without the prior written consent of the Agents,
except with respect to the occurrence of such Termination Date arising pursuant to Section 5.1(d)
of any Receivables Sale Agreement.





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          (g) Restricted Junior Payments. From and after the occurrence of any Amortization Event,
Seller will not make any Restricted Junior Payment if, after giving effect thereto, Seller would
fail to maintain the Required Capital Amount.




ARTICLE VIII.




ADMINISTRATION AND COLLECTION




     Section 8.1 Designation of Servicer. The servicing, administration and collection of the
Receivables shall be conducted by such Person (the “Servicer”) so designated from time to time in
accordance with this Section 8.1. Tenneco Operating is hereby designated as, and hereby agrees to
perform the duties and obligations of, the Servicer pursuant to the terms of this Agreement. The
Co-Agents, acting together, may at any time when an Amortization Event has occurred and is
continuing designate as Servicer any Person to succeed Tenneco Operating or any successor Servicer.



     Section 8.2 Duties of Servicer.



          (a) The Servicer shall take or cause to be taken all such actions as may be necessary or
advisable to collect each Receivable from time to time, all in accordance with applicable laws,
rules and regulations, with reasonable care and diligence, and in accordance with the Credit and
Collection Policy.



          (b) The Servicer will instruct Seller or Obligors to pay all Collections directly to a
Lock-Box or Collection Account. The Servicer shall effect a Collection Account Agreement
substantially in the form of Exhibit VI with each bank party to a Collection Account at any time.
In the case of any remittances received in any Lock-Box or Collection Account that shall have been
identified, to the satisfaction of the Servicer, to not constitute Collections or other proceeds of
the Receivables or the Related Security, the Servicer shall promptly remit such items to the Person
identified to it as being the owner of such remittances.




          (c) The Servicer shall administer the Collections in accordance with the procedures described
herein and in Article II. The Servicer shall set aside and hold in trust for the account of Seller
and the Purchasers their respective shares of the Collections in accordance with Article II. The
Servicer shall, upon the request of the Administrative Agent after the occurrence and during the
continuance of an Amortization Event, segregate, in a manner acceptable to the Administrative
Agent, all cash, checks and other instruments received by it from time to time constituting
Collections from the general funds of the Servicer or Seller prior to the remittance thereof in
accordance with Article II. If the Servicer shall be required to segregate Collections pursuant to
the preceding sentence, the Servicer shall segregate and deposit with a bank designated by the
Administrative Agent such allocable share of Collections of Receivables set aside for the
Purchasers as soon as possible, but no later than two (2) Business Days following receipt by the
Servicer of such Collections, duly endorsed or with duly executed instruments of transfer.




          (d) The Servicer may, in accordance with the Credit and Collection Policy, extend the maturity
of any Receivable or adjust the Outstanding Balance of any Receivable as




24









 







the Servicer determines to be appropriate to maximize Collections thereof; provided, however, that
such extension or adjustment shall not alter the status of such Receivable as a Delinquent
Receivable or Charged-Off Receivable or limit the rights of the Agents or the Purchasers under this
Agreement. Notwithstanding anything to the contrary contained herein at any time that an
Amortization Event has occurred and is continuing, the Administrative Agent shall have the absolute
and unlimited right to direct the Servicer to commence or settle any legal action with respect to
any Receivable or to foreclose upon or repossess any Related Security.




          (e) The Servicer shall hold in trust for Seller and the Purchasers all Records that (i)
evidence or relate to the Receivables, the related Contracts and Related Security or (ii) are
otherwise necessary or desirable to collect the Receivables and shall, as soon as practicable upon
demand of the Administrative Agent, deliver or make available to the Administrative Agent all such
Records, at a place selected by the Administrative Agent. The Servicer shall, as soon as
practicable following receipt thereof turn over to Seller any cash collections or other cash
proceeds received with respect to Indebtedness not constituting Receivables. The Servicer shall,
from time to time at the request of any Purchaser, furnish to the Purchasers (promptly after any
such request) a calculation of the amounts set aside for the Purchasers pursuant to Article II.




          (f) Any payment by an Obligor in respect of any indebtedness owed by it to any Originator or
Seller shall, except as otherwise specified by such Obligor or otherwise required by contract or
law and unless otherwise instructed by the Administrative Agent, be applied as a Collection of any
Receivable of such Obligor (starting with the oldest such Receivable) to the extent of any amounts
then due and payable thereunder before being applied to any other receivable or other obligation of
such Obligor.




     Section 8.3 Collection Notices. The Administrative Agent is authorized at any time to date and
to deliver to the Collection Banks the Collection Notices. Seller hereby transfers to the
Administrative Agent for the benefit of the Purchasers, effective when the Administrative Agent
delivers such notice, the exclusive ownership and control of each Lock-Box and the Collection
Accounts. In case any authorized signatory of Seller whose signature appears on a Collection
Account Agreement shall cease to have such authority before the delivery of such notice, such
Collection Notice shall nevertheless be valid as if such authority had remained in force. Seller
hereby authorizes the Administrative Agent, and agrees that the Administrative Agent shall be
entitled after the occurrence and during the continuance of an Amortization Event to (i) endorse
Seller’s and the applicable Originator’s name on checks and other instruments representing
Collections, (ii) enforce the Receivables, the related Contracts and the Related Security and (iii)
take such action as shall be necessary or desirable to cause all cash, checks and other instruments
constituting Collections of Receivables to come into the possession of the Administrative Agent
rather than Seller. If an Originator identifies, to the satisfaction of the Administrative Agent,
any remittances received in any Lock-Box or Collection Account as not constituting Collections or
other proceeds of the Receivables and Related Security, the Administrative Agent shall promptly
remit (or instruct the applicable Collection Bank to remit) such remittances to such Originator.



25









 





     Section 8.4 Responsibilities of Seller. Anything herein to the contrary notwithstanding, the
exercise by the Agents and the Purchasers of their rights hereunder shall not release the Servicer,
any Originator or Seller from any of their duties or obligations with respect to any Receivables or
under the related Contracts. The Purchasers shall have no obligation or liability with respect to
any Receivables or related Contracts, nor shall any of them be obligated to perform the obligations
of Seller.



     Section 8.5 Portfolio Reports. The Servicer shall prepare and forward to the Agents (i) on or
before each Monthly Reporting Date, a Monthly Report for the month then most recently ended, (ii)
during each Level Two Ratings Period, on Monday of each week with respect to and as of the end of
the immediately preceding calendar week, a Weekly Report, (iii) during each Level Three Ratings
Period, on each Daily Reporting Date with respect to and as of the preceding Business Day, a Daily
Report and (iv) at such times as any Agent shall request, a listing by Obligor of all Receivables
together with an aging of such Receivables. For purposes of this Section 8.5, if at any time,
Tenneco Automotive’s long-term debt ratings fall within different categories and as a result
thereof more than one Ratings Period then applies, the Ratings Period corresponding to the lower
long-term debt rating shall control.



     Section 8.6 Servicing Fees. In consideration of Tenneco Operating’s agreement to act as
Servicer hereunder, the Purchasers hereby agree that, so long as Tenneco Operating shall continue
to perform as Servicer hereunder, Seller shall pay over to Tenneco Operating a fee (the “Servicing
Fee”) on the first calendar day of each month, in arrears for the immediately preceding month,
equal to 1.00% per annum of the aggregate Outstanding Balance of the Receivables on the last day of
such preceding month as compensation for its servicing activities.



ARTICLE IX.




AMORTIZATION EVENTS




     Section 9.1 Amortization Events. The occurrence of any one or more of the following events
shall constitute an Amortization Event:



          (a) Any Seller Party shall fail (i) to make any payment or deposit required hereunder when
due, and, except in the case of a payment of Capital, such failure shall continue for five (5)
consecutive days after the date when due, or (ii) to perform or observe any term, covenant or
agreement hereunder (other than as referred to in clause (i) of this paragraph (a) and paragraph
9.1(e)) and such failure shall continue for ten (10) consecutive Business Days after notice from
Buyer or any of its assigns.




          (b) Any representation, warranty, certification or statement made by any Seller Party in this
Agreement, any other Transaction Document or in any other document delivered pursuant hereto or
thereto shall prove to have been incorrect in any material respect when made or deemed made;
provided that the materiality threshold in the preceding clause shall not be applicable with
respect to any representation or warranty which itself contains a materiality threshold.




26









 








          (c) The Performance Guarantor, any Seller Party or any of their respective Subsidiaries shall
(i) default in making any payment of principal of any Indebtedness (including any Contingent
Obligation but excluding the Indebtedness under the Tenneco Credit Agreement which is addressed in
paragraph (i) below) on the scheduled or original due date with respect thereto; or (ii) default in
making any payment of any interest on any such Indebtedness beyond the period of grace, if any,
provided in the instrument or agreement under which such Indebtedness was created; or (iii) default
in the observance or performance of any other agreement or condition related to any such
Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto,
or any other event shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or beneficiary of such Indebtedness (or a trustee or
agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required,
such Indebtedness to become due prior to its stated maturity or (in the case of any such
Indebtedness constituting a Contingent Obligation) to become payable; provided that a default,
event or condition described in clause (i), (ii) or (iii) of this paragraph (c) shall not at any
time constitute an Amortization Event unless, at such time, one or more defaults, events or
conditions of the type described in clauses (i), (ii) or (iii) of this paragraph (c) shall have
occurred and be continuing with respect to Indebtedness the aggregate outstanding principal amount
of which exceeds in the aggregate $50,000,000 for the Performance Guarantor and its Subsidiaries,
taken as a whole.




          (d) (i) The Performance Guarantor, any Seller Party or any of their respective Subsidiaries
shall commence any case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate
it a bankrupt or insolvent, or seeking liquidation, dissolution, composition or other relief with
respect to it or its debts, or (B) seeking appointment of a receiver, trustee or other similar
official for it or any substantial part of its assets, or the Performance Guarantor, any Seller
Party or any of their respective Subsidiaries shall make a general assignment for the benefit of
its creditors; or (ii) there shall be commenced against the Performance Guarantor, any Seller Party
or any of their respective Subsidiaries any case, proceeding or other action of a nature referred
to in clause (i) above that (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of
60 days; or (iii) there shall be commenced against the Performance Guarantor, any Seller Party or any
of their respective Subsidiaries any case, proceeding or other action seeking issuance of a warrant
of attachment, execution, distraint or similar process against all or any substantial part of its
assets that results in the entry of an order for any such relief that shall not have been vacated,
discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) the
Performance Guarantor, any Seller Party or any of their respective Subsidiaries shall take any
action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the
acts set forth in clause (i), (ii) or (iii) above; or (v) the Performance Guarantor, any Seller
Party or any of their respective Subsidiaries shall generally not, or shall be unable to, or shall
admit in writing its inability to, pay its debts as they become due.




          (e) Seller shall fail to comply with the terms of Section 2.6 hereof.




          (f) As at the end of any month:




27









 








               (i) the average of the Delinquency Ratio for each of the three (3) months then most recently
ended shall exceed 12.50%,



               (ii) the average of the Loss-to-Liquidation Ratio for each of the three (3) months then most
recently ended shall exceed 4.00%, or



               (iii) the average of the Dilution Ratio for each of the three (3) months then most recently
ended shall exceed 3.50%.



          (g) A Change of Control shall occur.




          (h) (i) Seller or any Originator shall fail to observe any provision of such Originator’s
Receivables Sale Agreement, or (ii) Seller or any Originator shall give up its rights under such
Receivables Sale Agreement with regard to any failure of the type described in clause (i) hereof.




          (i) Tenneco shall fail to observe any provision of Section 7.1 of the Tenneco Credit Agreement
as in effect on May 4, 2005 (regardless of whether the same remains in effect).




          (j) One or more judgments or decrees shall be entered against any Seller Party or any of its
Subsidiaries involving in the aggregate for the Seller Parties and their Subsidiaries a liability
(not paid or fully covered by insurance as to which the relevant insurance company has acknowledged
coverage) of $75,000,000 or more, and all such judgments or decrees shall not have been vacated,
discharged, stayed or bonded pending appeal within 30 days from the entry thereof.




          (k) The “Purchase Termination Date” under and as defined in any
 Receivables Sale Agreement shall occur or any Originator shall for any reason cease to transfer, or
cease to have the legal capacity to transfer, or otherwise be incapable of transferring Receivables
to Seller under its Receivables Sale Agreement.




          (l) This Agreement shall terminate in whole or in part (except in accordance with its terms),
or shall cease to be effective or to be the legally valid, binding and enforceable obligation of
Seller, or the Administrative Agent for the benefit of the Purchasers shall cease to have a valid
and perfected first priority security interest in the Receivables, the Related Security and the
Collections with respect thereto and the Collection Accounts.




          (m) Performance Guarantor shall fail to perform or observe any term, covenant or agreement
required to be performed by it under the Performance Undertaking, or the Performance Undertaking
shall cease to be effective or to be the legally valid, binding and enforceable obligation of
Performance Guarantor, or Performance Guarantor shall directly or indirectly contest in any manner
such effectiveness, validity, binding nature or enforceability.




     Section 9.2 Remedies. Upon the occurrence and during the continuation of an Amortization
Event, the Administrative Agent may, and upon the direction of either Co-Agent shall, take any of
the following actions: (i) replace the Person then acting as Servicer, (ii) declare the
Amortization Date to have occurred, whereupon the Amortization Date shall forthwith occur, without
demand, protest or further notice of any kind, all of which are hereby expressly waived



28









 







by each Seller Party; provided, however, that upon the occurrence of an Amortization Event
described in Section 9.1(d)(ii), or of an actual or deemed entry of an order for relief with
respect to any Seller Party under the Federal Bankruptcy Code, the Amortization Date shall
automatically occur, without demand, protest or any notice of any kind, all of which are hereby
expressly waived by each Seller Party, (iii) to the fullest extent permitted by applicable law, if
requested by either Co-Agent, declare that the Default Fee shall accrue with respect to any of the
Aggregate Unpaids outstanding at such time that are owing to the Purchasers in such Co-Agent’s
Group in lieu of any CP Costs or Yield that would otherwise be accruing on such Aggregate Unpaids,
(iv) if it has not already done so, deliver the Collection Notices to the Collection Banks, and (v)
notify Obligors of the Purchasers’ interest in the Receivables. The aforementioned rights and
remedies shall be without limitation, and shall be in addition to all other rights and remedies of
the Administrative Agent, on behalf of the Co-Agents and the Purchasers, otherwise available under
any other provision of this Agreement, by operation of law, at equity or otherwise, all of which
are hereby expressly preserved, including, without limitation, all rights and remedies provided
under the UCC, all of which rights shall be cumulative.



ARTICLE X.




INDEMNIFICATION




     Section 10.1 Indemnities by the Seller Parties. Without limiting any other rights that any
Agent or Purchaser may have hereunder or under applicable law, (A) Seller hereby agrees to
indemnify (and pay upon demand to) each of the Agents and Purchasers and their respective assigns,
officers, directors, agents and employees (each an “Indemnified Party”) from and against any and
all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts payable,
including reasonable attorneys’ fees (which attorneys may be employees of such Agent or such
Purchaser) and disbursements (all of the foregoing being collectively referred to as “Indemnified
Amounts”) awarded against or incurred by any of them arising out of or as a result of this
Agreement or the acquisition, either directly or indirectly, by a Purchaser of an interest in the
Receivables, and (B) the Servicer hereby agrees to indemnify (and pay upon demand to) each
Indemnified Party for Indemnified Amounts awarded against or incurred by any of them arising out of
the Servicer’s activities as Servicer hereunder, excluding, however, in all of the foregoing
instances under the preceding clauses (A) and (B):




     (a) Indemnified Amounts to the extent a final judgment of a court of competent
jurisdiction holds that such Indemnified Amounts resulted from gross negligence or
willful misconduct on the part of the Indemnified Party seeking indemnification;




     (b) Indemnified Amounts to the extent the same includes losses in respect of
Receivables that are uncollectible on account of the insolvency, bankruptcy or lack of
creditworthiness of the related Obligor; or




     (c) taxes imposed by the jurisdiction in which such Indemnified Party’s principal
executive office is located, on or measured by the overall net income of such Indemnified
Party to the extent that the computation of such taxes is consistent with the
characterization for income tax purposes of the acquisition



29









 







by the Purchasers of Purchaser Interests as a loan or loans by the Purchasers to Seller
secured by the Receivables, the Related Security, the Collection Accounts and the
Collections;


provided, however, that nothing contained in this sentence shall limit the liability of any Seller
Party or limit the recourse of the Purchasers to any Seller Party for amounts otherwise
specifically provided to be paid by such Seller Party under the terms of this Agreement. Without
limiting the generality of the foregoing indemnification, Seller shall indemnify the Agents and the
Purchasers for Indemnified Amounts relating to or resulting from:




               (i) any representation or warranty made by any Seller Party or any Originator (or any officers
of any such Person) under or in connection with this Agreement, any other Transaction Document or
any other information or report delivered by any such Person pursuant hereto or thereto, which
shall have been false or incorrect in any respect when made or deemed made;



               (ii) the failure by Seller, the Servicer or any Originator to comply with any applicable law,
rule or regulation with respect to any Receivable or Contract related thereto, or the nonconformity
of any Receivable or Contract included therein with any such applicable law, rule or regulation or
any failure of any Originator to keep or perform any of its obligations, express or implied, with
respect to any Contract;



               (iii) any failure of Seller, the Servicer or any Originator to perform its duties, covenants
or other obligations in accordance with the provisions of this Agreement or any other Transaction
Document;



               (iv) any products liability, personal injury or damage suit, or other similar claim arising
out of or in connection with merchandise, insurance or services that are the subject of any
Contract or any Receivable;



               (v) any dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor)
of the Obligor to the payment of any Receivable (including, without limitation, a defense based on
such Receivable or the related Contract not being a legal, valid and binding obligation of such
Obligor enforceable against it in accordance with its terms), or any other claim resulting from the
sale of the merchandise or service related to such Receivable or the furnishing or failure to
furnish such merchandise or services;



               (vi) the commingling of Collections of Receivables at any time with other funds;



               (vii) any investigation, litigation or proceeding related to or arising from this Agreement or
any other Transaction Document, the transactions contemplated hereby, the use of the proceeds of an
Incremental Purchase or a Reinvestment, the ownership of the Purchaser Interests or any other
investigation, litigation or proceeding relating to Seller, the Servicer or any Originator in which
any Indemnified Party becomes involved as a result of any of the transactions contemplated hereby;



30









 





               (viii) any inability to litigate any claim against any Obligor in respect of any Receivable as
a result of such Obligor being immune from civil and commercial law and suit on the grounds of
sovereignty or otherwise from any legal action, suit or proceeding;



               (ix) any Amortization Event described in Section 9.1(d);



               (x) any failure of Seller to acquire and maintain legal and equitable title to, and ownership
of any Receivable and the Related Security and Collections with respect thereto from the applicable
Originator, free and clear of any Adverse Claim (other than as created hereunder); or any failure
of Seller to give reasonably equivalent value to such Originator under the applicable Receivables
Sale Agreement in consideration of the transfer by such Originator of any Receivable, or any
attempt by any Person to void such transfer under statutory provisions or common law or equitable
action;



               (xi) any failure to vest and maintain vested in the Administrative Agent for the benefit of
the Purchasers, or to transfer to the Administrative Agent for the benefit of the Purchasers, legal
and equitable title to, and ownership of, a first priority perfected undivided percentage ownership
interest (to the extent of the Purchaser Interests contemplated hereunder) or security interest in
the Receivables, the Related Security and the Collections, free and clear of any Adverse Claim
(except as created by the Transaction Documents);



               (xii) the failure to have filed, or any delay in filing, financing statements or other similar
instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with
respect to any Receivable, the Related Security and Collections with respect thereto, and the
proceeds of any thereof, whether at the time of any Incremental Purchase or Reinvestment or at any
subsequent time;



               (xiii) any action or omission by any Seller Party which reduces or impairs the rights of the
Agents or the Purchasers with respect to any Receivable or the value of any such Receivable;



               (xiv) any attempt by any Person to void any Incremental Purchase or Reinvestment hereunder
under statutory provisions or common law or equitable action; and



               (xv) the failure of any Receivable included in the calculation of the Net Receivables Balance
as an Eligible Receivable to be an Eligible Receivable at the time so included.



     Section 10.2 Increased Cost and Reduced Return. If after the date hereof, any Funding Source
shall be charged any fee, expense or increased cost on account of the adoption of any applicable
law, rule or regulation (including any applicable law, rule or regulation regarding capital
adequacy) or any change therein, or any change in the interpretation or administration thereof by
any governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance with any request or directive (whether or not having the
force of law) of any such authority, central bank or comparable agency (a “Regulatory Change”): (i)
that subjects any Funding Source to any charge or withholding on or with respect to any Liquidity
Agreement or a Funding Source’s obligations under a Liquidity Agreement, or on or with respect to
the Receivables, or changes the basis of taxation of



31









 







payments to any Funding Source of any amounts payable under any Liquidity Agreement (except for
changes in the rate of tax on the overall net income of a Funding Source or taxes excluded by
Section 10.1) or (ii) that imposes, modifies or deems applicable any reserve, assessment, insurance
charge, special deposit or similar requirement against assets of, deposits with or for the account
of a Funding Source, or credit extended by a Funding Source pursuant to a Liquidity Agreement or
(iii) that imposes any other condition the result of which is to increase the cost to a Funding
Source of performing its obligations under a Liquidity Agreement, or to reduce the rate of return
on a Funding Source’s capital as a consequence of its obligations under a Liquidity Agreement, or
to reduce the amount of any sum received or receivable by a Funding Source under a Liquidity
Agreement or to require any payment calculated by reference to the amount of interests or loans
held or interest received by it (all of the foregoing, “Increased Costs”), then, upon demand by the
applicable Co-Agent, Seller shall pay to such Co-Agent, for the benefit of the relevant Funding
Source, such Increased Costs charged to such Funding Source or such amounts to otherwise compensate
such Funding Source for such Increased Costs. To the extent that any Liquidity Agreement described
in this Section covers facilities in addition to this Agreement, each Conduit shall allocate the
liability for any applicable Increased Costs among Seller and other Persons with whom such Conduit
has entered into agreements to purchase interests in or finance receivables and other financial
assets (“Other Customers”). If any Increased Costs are attributable to Seller and not attributable
to any Other Customer, Seller shall be solely liable for such Increased Costs. However, if
Increased Costs are attributable to Other Customers and not attributable to Seller, such Other
Customer shall be solely liable for such Increased Costs. All allocations to be made pursuant to
the foregoing provisions of this Section shall be made by Conduit in its sole discretion and shall
be binding on Seller and the Servicer.



     Section 10.3 Other Costs and Expenses. Subject to any limitation on the Liberty Street Group’s
reimburseable costs separately agreed to by the Liberty Street Agent and the Seller Parties, Seller
shall pay to each of the Agents on demand all reasonable costs and out-of-pocket expenses in
connection with the preparation, execution, amendment, delivery and administration of this
Agreement, the transactions contemplated hereby and the other documents to be delivered hereunder,
including without limitation, the cost of the applicable Conduit’s auditors auditing the books,
records and procedures of Seller, reasonable fees and out-of-pocket expenses of a legal counsel for
the Agents (which such counsel may be employees of a Purchaser or an Agent) with respect thereto
and with respect to advising such Agent as to its Group’s respective rights and remedies under this
Agreement. Seller shall pay to the Administrative Agent on demand any and all reasonable costs and
expenses of the Administrative Agent and the Purchasers, if any, including reasonable counsel fees
and expenses of a common legal counsel, or if such common legal counsel determines that it cannot
continue representation due to a business or ethical conflict, separate legal counsel for the
Agents, in connection with the enforcement of this Agreement and the other documents delivered
hereunder and in connection with any restructuring or workout of this Agreement or such documents,
or the administration of this Agreement following an Amortization Event.



32









 





ARTICLE XI.




THE AGENTS




     Section 11.1 Appointment.



          (a) Each member of the Liberty Street Group hereby irrevocably designates and appoints
Scotiabank as Liberty Street Agent hereunder and under the other Transaction Documents to which the
Liberty Agent is a party, and authorizes the Liberty Street Agent to take such action on its behalf
under the provisions of the Transaction Documents and to exercise such powers and perform such
duties as are expressly delegated to the Liberty Street Agent by the terms of the Transaction
Documents, together with such other powers as are reasonably incidental thereto. Each member of the
Jupiter Group hereby irrevocably designates and appoints JPMorgan Chase Bank as Jupiter Agent
hereunder and under the other Transaction Documents to which the Jupiter Agent is a party, and
authorizes the Jupiter Agent to take such action on its behalf under the provisions of the
Transaction Documents and to exercise such powers and perform such duties as are expressly
delegated to the Jupiter Agent by the terms of the Transaction Documents, together with such other
powers as are reasonably incidental thereto. Each of the Purchasers and the Co-Agents hereby
irrevocably designates and appoints JPMorgan Chase as Administrative Agent hereunder and under the
Transaction Documents to which the Administrative Agent is a party, and authorizes the
Administrative Agent to take such action on its behalf under the provisions of the Transaction
Documents and to exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of the Transaction Documents, together with such other powers as
are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this
Agreement, none of the Agents shall have any duties or responsibilities, except those expressly set
forth in the Transaction Documents to which it is a party, or any fiduciary relationship with any
Purchaser, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities on the part of such Agent shall be read into any Transaction Document or otherwise
exist against such Agent.




          (b) The provisions of this Article XI are solely for the benefit of the Agents and the
Purchasers, and neither the Seller nor the Servicer shall have any rights as a third-party
beneficiary or otherwise under any of the provisions of this Article XI, except that this Article
XI shall not affect any obligations which any of the Agents or Purchasers may have to either the
Seller or the Servicer under the other provisions of this Agreement. This Article XI is intended
solely to govern the relationship between the Agents, on the one hand, and the Purchasers, on the
other.




          (c) In performing its functions and duties hereunder, (i) the Liberty Street Agent shall act
solely as the agent of the members of the Liberty Street Group and does not assume and shall not be
deemed to have assumed any obligation or relationship of trust or agency with or for the Seller or
the Servicer or any of their respective successors and assigns, (ii) the Jupiter Agent shall act
solely as the agent of the members of the Jupiter Group and does not assume and shall not be deemed
to have assumed any obligation or relationship of trust or agency with or for either the Seller or
the Servicer or any of their respective successors and assigns, and (iii) the Administrative Agent
shall act solely as the agent of the Co-Agents and the Purchasers and does not assume and shall not
be deemed to have assumed any obligation or




33









 







relationship of trust or agency with or for the Seller or the Servicer or any of their respective
successors and assigns.




     Section 11.2 Delegation of Duties. Each Agent may execute any of its duties under the
applicable Transaction Documents by or through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties. No Agent shall be responsible
for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.



     Section 11.3 Exculpatory Provisions. None of the Agents nor any of its directors, officers,
agents or employees shall be (i) liable for any action lawfully taken or omitted to be taken by it
or them or any Person described in Section 11.2 under or in connection with this Agreement (except
for its, their or such Person’s own bad faith, gross negligence or willful misconduct), or (ii)
responsible in any manner to any of the Purchasers or other Agents for any recitals, statements,
representations or warranties made by the Seller contained in this Agreement or in any certificate,
report, statement or other document referred to or provided for in, or received under or in
connection with, this Agreement or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other document furnished in connection
herewith, or for any failure of either the Seller or the Servicer to perform its respective
obligations hereunder, or for the satisfaction of any condition specified in Article VI, except
receipt of items required to be delivered to such Agent. None of the Agents shall be under any
obligation to any other Agent or any Purchaser to ascertain or to inquire as to the observance or
performance of any of the agreements or covenants contained in, or conditions of, this Agreement,
or to inspect the properties, books or records of the Seller or the Servicer.



     Section 11.4 Reliance by Agents. As between the Agents and the Purchasers:



          (a) Each of the Agents shall in all cases be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate, affidavit, letter,
telegram, telecopy or telex message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation, counsel to the
Seller or the Servicer), independent accountants and other experts selected by such Agent. Each of
the Agents shall in all cases be fully justified in failing or refusing to take any action under
this Agreement or any other document furnished in connection herewith unless it shall first receive
such advice or concurrence of such of the members of its Group, as it shall determine to be
appropriate under the relevant circumstances, or it shall first be indemnified to its satisfaction
by the Committed Purchasers in its Group against any and all liability, cost and expense which may
be incurred by it by reason of taking or continuing to take any such action.




          (b) Any action taken by any of the Agents in accordance with Section 11.4(a) shall be binding
upon all of the Agents and the Purchasers.




     Section 11.5 Notice of Seller Defaults. None of the Agents shall be deemed to have knowledge
or notice of the occurrence of any Amortization Event or Potential
Amortization Event unless such Agent has received notice from another Agent, a Purchaser, the
Seller or the



34









 




Servicer referring to this Agreement, stating that a Amortization Event or Potential Amortization
Event has occurred hereunder and describing such Amortization Event or Potential Amortization
Event. In the event that any of the Agents receives such a notice, it shall promptly give notice
thereof to the Purchasers and the other Agents. The Administrative Agent may exercise any rights
and remedies provided to the Administrative Agent under the Transaction Documents or at law or
equity (and at the written request of the Co-Agents acting together, shall exercise any such rights
and remedies and take such action as the Co-Agents shall direct) with respect to such Amortization
Event or Potential Amortization Event, provided that the Administrative Agent is indemnified to its
satisfaction by the Co-Agents and the Committed Purchasers against any and all liability, cost and
expense which may be incurred by it by reason of such exercise of rights and remedies and/or taking
any such action.




     Section 11.6 Non-Reliance on Other Agents and Purchasers. Each of the Purchasers expressly
acknowledges that none of the Agents, nor any of the Agents’ respective officers, directors,
employees, agents, attorneys-in-fact or affiliates has made any representations or warranties to it
and that no act by any of the Agents hereafter taken, including, without limitation, any review of
the affairs of the Seller, the Servicer or the Originators, shall be deemed to constitute any
representation or warranty by such Agent. Each of the Purchasers also represents and warrants to
the Agents and the other Purchasers that it has, independently and without reliance upon any such
Person (or any of their Affiliates) and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of the Seller, the Servicer and the
Originators and made its own decision to enter into this Agreement. Each of the Purchasers also
represents that it will, independently and without reliance upon the Agents or any other Purchaser,
and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement, and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, prospects, financial and other condition and creditworthiness of
the Seller, the Servicer and the Originators. The Agents, the Purchasers and their respective
Affiliates, shall have no duty or responsibility to provide any party to this Agreement with any
credit or other information concerning the business, operations, property, prospects, financial and
other condition or creditworthiness of the Seller, the Servicer and the Originators which may come
into the possession of such Person or any of its respective officers, directors, employees, agents,
attorneys-in-fact or affiliates, except that each of the Agents shall promptly distribute to the
other Agents and the Purchasers, copies of financial and other information expressly provided to it
by either of the Seller or the Servicer pursuant to this Agreement.



     Section 11.7 Indemnification of Agents. Each of the Committed Purchasers hereby agrees to
indemnify (a) its applicable Co-Agent, (b) the Administrative Agent, and (c) the officers,
directors, employees, representatives and agents of each of the
foregoing (to the extent not reimbursed by the Seller or the Servicer and without limiting the
obligation of the Seller or the Servicer to do so), ratably in accordance with their respective
Commitments, from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever
(including, without limitation, the reasonable fees and disbursements of counsel for such Co-Agent,
the Administrative Agent or such Person in connection with any investigative, administrative or
judicial proceeding



35









 




commenced or threatened, whether or not such Co-Agent or the Administrative Agent or such Person
shall be designated a party thereto) that may at any time be imposed on, incurred by or asserted
against such Co-Agent, the Administrative Agent or such Person as a result of, or arising out of,
or in any way related to or by reason of, any of the transactions contemplated hereunder or the
execution, delivery or performance of this Agreement or any other document furnished in connection
herewith (but excluding any such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting solely from the bad faith, gross
negligence or willful misconduct of such Co-Agent, the Administrative Agent or such Person as
finally determined by a court of competent jurisdiction).




     Section 11.8 Agents in their Individual Capacities. Each of the Agents in its individual
capacity and its Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with the Seller, the Servicer, the Originators and their Affiliates as though such
Agent were not an Agent hereunder. With respect to its Purchaser Interests, if any, pursuant to
this Agreement, each of the Agents shall have the same rights and powers under this Agreement as
any Purchaser and may exercise the same as though it were not an Agent, and the terms “Committed
Purchaser,” “Committed Purchasers,” “Purchaser” and “Purchasers” shall include each of the Agents
in their individual capacities.



     Section 11.9 UCC Filings. Each of the Co-Agents and the Purchasers hereby expressly recognizes
and agrees that the Administrative Agent may be listed as the assignee or secured party of record
on the various UCC filings required to be made under the Transaction Documents in order to perfect
their respective interests in the Receivables, the Collections, each Collection Account and all
Related Security, that such listing shall be for administrative convenience only in creating a
record or nominee holder to take certain actions hereunder on behalf of the Groups and that such
listing will not affect in any way the status of the Purchasers as the true parties in interest
with respect to the collateral covered thereby. In addition, such listing shall impose no duties on
the Administrative Agent other than those expressly and specifically undertaken in accordance with
this Article XI.



     Section 11.10 Successor Agents. If any Agent or its holding company is merged with or into any
other Person, such Agent may, upon five days’ notice to the Seller and the other Agents, assign its
rights and obligations hereunder to the survivor of such merger or any of its bank Affiliates, in
each case, provided that both Standard & Poor’s and Moody’s Investors Service, Inc. have approved
the proposed assignee as the successor administrator of such Agent’s Conduit. After the
effectiveness of any assigning Agent’s assignment hereunder, the assigning Agent shall be
discharged from its duties
and obligations hereunder and under the other Transaction Documents and the provisions of this
Article XI and Article X shall continue in effect for its benefit with respect to any actions taken
or omitted to be taken by it while it was an Agent under this Agreement and under the other
Transaction Documents.



36









 





ARTICLE XII.




ASSIGNMENTS; PARTICIPATIONS




     Section 12.1 Assignments.



          (a) Each of the parties hereby agrees and consents to the complete or partial assignment by
each Conduit of all or any portion of its rights under, interest in, title to and obligations under
this Agreement to (i) its Committed Purchasers pursuant to its
Liquidity Agreement, and
(ii) another special purpose asset-backed commercial paper issuer administered by a Co-Agent or one of
its Affiliates having a short-term debt rating of A-1 or better by Standard & Poor’s and P-1 by
Moody’s Investors Service, Inc. Upon each such assignment pursuant to this Section 12.1(a), such
Conduit shall be released from its obligations so assigned. Further, each of the other parties
hereby agrees that any assignee of a Conduit of this Agreement or all or any of its Purchaser
Interests shall have all of the rights and benefits under this Agreement as if references to such
Conduit or to a “Purchaser” explicitly referred to such assignee, and no such assignment shall in
any way impair the rights and benefits of such Conduit hereunder. Neither of the Seller Parties nor
(except as set forth in Section 11.10) any Agent shall have the right to assign its rights or
obligations under this Agreement.




          (b) Any Committed Purchaser may at any time and from time to time assign to one or more
Persons (“Purchasing Committed Purchasers”) all or any part of its rights and obligations under
this Agreement pursuant to an assignment agreement, in a form and substance satisfactory to the
applicable Co-Agent (the “Assignment Agreement”), executed by such Purchasing Committed Purchaser
and such selling Committed Purchaser. The consent of (i) the applicable Conduit and (ii) provided
no Servicer Default or Potential Servicer Default exists and is continuing, the Seller (which
consent of the Seller shall not be unreasonably withheld or delayed but may be conditioned upon a
change in the voting rights of the Co-Agents under this Agreement), shall be required prior to the
effectiveness of any such assignment. Each assignee of a Committed Purchaser must have a short-term
debt rating of A-1 or better by Standard & Poor’s and P-1 by Moody’s Investors Service, Inc. and
must agree to deliver to the applicable Co-Agent, promptly following any request therefor by such
Co-Agent or its Conduit, an enforceability opinion in form and substance satisfactory to such
Co-Agent and Conduit. Upon delivery of the executed Assignment Agreement to the applicable
Co-Agent, such selling Committed Purchaser shall be released from its obligations hereunder to the
extent of such assignment. Thereafter the Purchasing Committed Purchaser shall for all purposes be
a Committed Purchaser party to this Agreement and shall have all the rights and obligations of a
Committed Purchaser under this Agreement to the same extent as if it were an original party hereto
and no further consent or action by the Seller, the Purchasers or the Agents shall be required.




          (c) Each of the Committed Purchasers agrees that in the event that it shall cease to have a
short-term debt rating of A-1 or better by Standard & Poor’s and P-1 by
Moody’s Investors Service, Inc. (an “Affected Committed Purchaser”), such Affected Committed
Purchaser shall be obliged, at the request of the applicable Conduit or its Co-Agent, to assign all
of its rights and obligations hereunder to (x) another Committed Purchaser or (y) another funding
entity nominated by the Agent and acceptable to Seller (which approval shall not be





37









 







unreasonably withheld or delayed) and to Conduit, and willing to participate in this Agreement
through the Liquidity Termination Date in the place of such Affected Committed Purchaser; provided
that the Affected Committed Purchaser receives payment in full, pursuant to an Assignment
Agreement, of an amount equal to such Committed Purchaser’s Pro Rata Share of its Group’s
Percentage of the Aggregate Capital and Yield owing to the Committed Purchasers and all accrued but
unpaid fees and other costs and expenses payable in respect of such Pro Rata Share.




     Section 12.2 Participations. Any Committed Purchaser may, in the ordinary course of its
business at any time sell to one or more Persons (each a “Participant”) participating interests in
its Pro Rata Share of the Purchaser Interests of the Committed Purchasers in its Group or any other
interest of such Committed Purchaser hereunder. Notwithstanding any such sale by a Committed
Purchaser of a participating interest to a Participant, such Committed Purchaser’s rights and
obligations under this Agreement shall remain unchanged, such Committed Purchaser shall remain
solely responsible for the performance of its obligations hereunder, and Seller, the Purchasers and
the Agents shall continue to deal solely and directly with such Committed Purchaser in connection
with such Committed Purchaser’s rights and obligations under this Agreement. Each Committed
Purchaser agrees that any agreement between such Committed Purchaser and any such Participant in
respect of such participating interest shall not restrict such Committed Purchaser’s right to agree
to any amendment, supplement, waiver or modification to this Agreement, except for any amendment,
supplement, waiver or modification described in Section 14.1(b)(i).



ARTICLE XIII.




TERMINATING COMMITTED PURCHASERS




     Section 13.1 Terminating Committed Purchasers.



          (a) (i) Each Committed Purchaser hereby agrees to deliver written notice to the applicable
Co-Agent and the Administrative Agent not more than thirty (30) Business Days and not less than
five (5) Business Days prior to the Liquidity Termination Date indicating whether such Committed
Purchaser intends to renew its Commitment hereunder. If any Committed Purchaser fails to deliver
such notice on or prior to the date that is five (5) Business Days prior to the Liquidity
Termination Date, such Committed Purchaser will be deemed to have declined to renew its Commitment
(each Committed Purchaser which has declined or has been deemed to have declined to renew its
Commitment hereunder, a “Non-Renewing Committed Purchaser”). The applicable Co-Agent shall promptly
notify its Conduit of each Non-Renewing Committed Purchaser and such Conduit, in its sole
discretion, may upon one (1) Business Day’s notice to such Non-Renewing Committed Purchaser assign
to such Non-Renewing Committed Purchaser on a date specified by such Conduit its Pro Rata Share of
the aggregate Purchaser Interests
then held by such Conduit, subject to, and in accordance with, the applicable Liquidity
Agreement.




               (ii) In addition, unless an acceptable assignee can be found in accordance with Section
12.1(c), each Conduit may, in its sole discretion, at any time (x) to the extent of Commitment
Availability, declare that any Affected Committed Purchaser’s Commitment shall



38









 




automatically terminate on a date specified by such Conduit or (y) assign to any Affected Committed
Purchaser on a date specified by such Conduit its Pro Rata Share of the aggregate Purchaser
Interests then held by such Conduit, subject to, and in accordance with, the applicable Liquidity
Agreement (each Affected Committed Purchaser or each Non-Renewing Committed Purchaser is
hereinafter referred to as a “Terminating Committed Purchaser”). The parties hereto expressly
acknowledge that any declaration of the termination of any Commitment, any assignment pursuant to
this Section 13.1 and the order of priority of any such termination or assignment among Terminating
Committed Purchasers shall be made by the applicable Conduit in its sole and absolute discretion.




          (b) Upon any assignment to a Terminating Committed Purchaser as provided in this Section 13.1,
any remaining Commitment of such Terminating Committed Purchaser shall automatically terminate.
Upon reduction to zero of the Capital of all interests in the Purchaser Interests of a Terminating
Committed Purchaser (after application of Collections thereto pursuant to Sections 2.2 and 2.3) all
rights and obligations of such Terminating Committed Purchaser hereunder shall be terminated and
such Terminating Committed Purchaser shall no longer be a “Committed Purchaser” hereunder;
provided, however, that the provisions of Article X shall continue in effect for its benefit with
respect to Purchaser Interests held by such Terminating Committed Purchaser prior to its
termination as a Committed Purchaser.




ARTICLE XIV.




MISCELLANEOUS




     Section 14.1 Waivers and Amendments.



          (a) No failure or delay on the part of any Agent or any Purchaser in exercising any power,
right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude any other further exercise thereof or
the exercise of any other power, right or remedy. The rights and remedies herein provided shall be
cumulative and nonexclusive of any rights or remedies provided by law. Any waiver of this Agreement
shall be effective only in the specific instance and for the specific purpose for which given.




          (b) No provision of this Agreement may be amended, supplemented, modified or waived except in
writing in accordance with the provisions of this Section 14.1(b). Seller and the Agents may enter
into written modifications or waivers of any provisions of this Agreement, provided, however, that
no such modification or waiver shall:




               (i) without the consent of each affected Purchaser, (A) extend the applicable Liquidity
Termination Date or the date of any payment or deposit of Collections by Seller or the Servicer,
(B) reduce the rate or extend the time of payment of
Yield or any CP Costs (or any component of Yield or CP Costs), (C) reduce any fee payable to
as Co-Agent for the benefit of any Purchaser, (D) except pursuant to Article XII hereof, change the
amount of the Capital of any Purchaser, any Committed Purchaser’s Pro Rata Share or any Committed
Purchaser’s Commitment, (E) amend, modify or waive any provision of this Section 14.1(b), (F)
consent to or permit the assignment or transfer by Seller of any of its rights and obligations
under



39









 




this Agreement, (G) change the definition of “Eligible Receivable” or “Loss Reserve,” or (H) amend
or modify any defined term (or any defined term used directly or indirectly in such defined term)
used in clauses (A) through (G) above in a manner that would circumvent the intention of the
restrictions set forth in such clauses; or




               (ii) without the written consent of the then applicable Agent, amend, modify or waive any
provision of this Agreement if the effect thereof is to affect the rights or duties of such Agent.


Notwithstanding the foregoing, (i) without the consent of the Committed Purchasers, but with the
consent of Seller prior to the occurrence of an Amortization Event (which consent shall not be
unreasonably withheld or delayed but may be conditioned upon a change in the voting rights of the
Co-Agents under this Agreement), the Agents may amend this Agreement solely to add additional
Persons as Committed Purchasers hereunder and (ii) the Agents and the Purchasers may enter into
amendments to modify any of the terms or provisions of Article XI, Article XII, Section 14.13 or
any other provision of this Agreement without the consent of Seller, provided that such amendment
has no negative impact upon Seller. Any modification or waiver made in accordance with this Section
14.1 shall apply to each of the Purchasers equally and shall be binding upon Seller, the Purchasers
and the Agents.




     Section 14.2 Notices. Except as provided in this Section 14.2, all communications and notices
provided for hereunder shall be in writing (including bank wire, telecopy or electronic facsimile
transmission or similar writing) and shall be given to the other parties hereto at their respective
addresses or telecopy numbers set forth on the signature pages hereof or at such other address or
telecopy number as such Person may hereafter specify for the purpose of notice to each of the other
parties hereto. Each such notice or other communication shall be effective (i) if given by
telecopy, upon the receipt thereof, (ii) if given by mail, three (3) Business Days after the time
such communication is deposited in the mail with first class postage prepaid or (iii) if given by
any other means, when received at the address specified in this Section 14.2. Seller hereby
authorizes each of the Co-Agents to effect purchases and Tranche Period and Discount Rate
selections based on telephonic notices made by any Person whom such Co-Agent in good faith believes
to be acting on behalf of Seller. Seller agrees to deliver promptly to each Co-Agent a written
confirmation of each telephonic notice signed by an authorized officer of Seller; provided,
however, the absence of such confirmation shall not affect the validity of such notice. If the
written confirmation differs from the action taken by such Co-Agent, the records of such Co-Agent
shall govern absent manifest error.




40












 





     Section 14.3 Ratable Payments. If any Purchaser, whether by setoff or otherwise, has payment
made to it with respect to any portion of the Aggregate Unpaids owing to such Purchaser (other than
payments received pursuant to Section 10.2 or 10.3) in a greater proportion than that received by
any other Purchaser entitled to receive a ratable share of such Aggregate Unpaids, such Purchaser
agrees, promptly upon demand, to purchase for cash without recourse or warranty a portion of such
Aggregate Unpaids held by the other Purchasers so that after such purchase each Purchaser will hold
its ratable proportion of such Aggregate Unpaids; provided that if all or any portion of such
excess amount is thereafter recovered from such Purchaser, such purchase shall be rescinded and the
purchase price restored to the extent of such recovery, but without interest.



     Section 14.4 Protection of Ownership Interests of the Purchasers.



          (a) Seller agrees that from time to time, at its expense, it will promptly execute and deliver
all instruments and documents, and take all actions, that may be necessary or desirable, or that
any Agent may request, to perfect, protect or more fully evidence the Purchaser Interests, or to
enable the Agents or the Purchasers to exercise and enforce their rights and remedies hereunder. At
any time when an Amortization Event has occurred and is continuing, the Administrative Agent may,
or the Administrative Agent may direct Seller or the Servicer to, notify the Obligors of
Receivables, at Seller’s expense, of the ownership or security interests of the Purchasers under
this Agreement and may also direct that payments of all amounts due or that become due under any or
all Receivables be made directly to the Administrative Agent or its designee. Seller or the
Servicer (as applicable) shall, at any Purchaser’s request, withhold the identity of such Purchaser
in any such notification.




          (b) If any Seller Party fails to perform any of its obligations hereunder, any Agent or any
Purchaser may (but shall not be required to) perform, or cause performance of, such obligations,
and such Agent’s or such Purchaser’s costs and expenses incurred in connection therewith shall be
payable by Seller as provided in Section 10.3. Each Seller Party irrevocably authorizes the
Administrative Agent at any time and from time to time in the sole discretion of the Administrative
Agent, and appoints the Administrative Agent as its attorney-in-fact, to act on behalf of such
Seller Party (i) to execute on behalf of Seller as debtor (if required) and to file financing
statements necessary or desirable in the Administrative Agent’s sole discretion to perfect and to
maintain the perfection and priority of the interest of the Purchasers in the Receivables and (ii)
to file a carbon, photographic or other reproduction of this Agreement or any financing statement
with respect to the Receivables as a financing statement in such offices as the Administrative
Agent in its sole discretion deems necessary or desirable to perfect and to maintain the perfection
and priority of the interests of the Purchasers in the Receivables. This appointment is coupled
with an interest and is irrevocable. Each of the Seller Parties hereby (A) authorizes the
Administrative Agent to file financing statements and other filing or recording documents with
respect to the Receivables and Related Security (including any amendments thereto, or continuation
or termination statements thereof), without the signature or other authorization of such Seller
Party, in such form and in such offices as the Administrative Agent reasonably determines
appropriate to perfect or maintain the perfection of the security interest of the Agent hereunder,
(B) acknowledges and agrees that it is not authorized to, and will not, file financing statements
or other filing or recording documents with respect to the Receivables or Related Security
(including any amendments thereto, or continuation or termination statements



41









 






thereof), without the express prior written approval by the Agent, consenting to the form and
substance of such filing or recording document, and (C) approves, authorizes and ratifies any
filings or recordings made by or on behalf of the Administrative Agent in connection with the
perfection of the security interest in favor of Seller or the Administrative Agent.




     Section 14.5 Confidentiality.



          (a) Each Seller Party and each Purchaser shall maintain and shall cause each of its employees
and officers to maintain the confidentiality of this Agreement and the other confidential or
proprietary information with respect to the Agents and Conduits and their respective businesses
obtained by it or them in connection with the structuring, negotiating and execution of the
transactions contemplated herein, except that such Seller Party and such Purchaser and its officers
and employees may disclose such information to such Seller Party’s and such Purchaser’s external
accountants and attorneys and as required by any applicable law or order of any judicial or
administrative proceeding.




          (b) Each of the Agents and Purchasers agrees to keep confidential all non-public information
provided to it by either Seller Party pursuant to this Agreement that is designated by such Seller
Party as confidential.




          (c) Each of the Seller Parties, the Agents and the Purchasers hereby consents to the
disclosure of any nonpublic information with respect to it (i) to Performance Guarantor, the Agents
and the Purchasers, (ii) by a Seller Party, the Agents or the Purchasers to any prospective or
actual assignee or participant of any of them; provided that such assignee or participant agrees to
be bound by the terms of this Section 14.5 and (iii) by the Agents or Conduits, to any rating
agency, Commercial Paper dealer or provider of a surety, guaranty or credit or liquidity
enhancement to a Conduit or any entity organized for the purpose of purchasing, or making loans
secured by, financial assets for which either of the Co-Agents or one of its Affiliates acts as the
administrative agent and to any officers, directors, employees, outside accountants and attorneys
of any of the foregoing, provided that each such Person is informed of the confidential nature of
such information. In addition, the Purchasers and the Agents may disclose any such nonpublic
information pursuant to any law, rule, regulation, direction, request or order of any judicial,
administrative or regulatory authority or proceedings (whether or not having the force or effect of
law).




     Section 14.6 Bankruptcy Petition. Each of the Seller Parties, the Agents and the Purchasers
hereby covenants and agrees that, prior to the date that is one year and one day after the payment
in full of all outstanding senior indebtedness of each Conduit, it will not institute against, or
join any other Person in instituting against, such Conduit any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of
the United States or any state of the United States.



     Section 14.7 Limitation of Liability. Except with respect to any claim arising out of the
willful misconduct or gross negligence of any Agent or Purchaser, no claim may be made by any
Seller Party or any other Person against any Agent or Purchaser or their respective Affiliates,
directors, officers, employees, attorneys or agents for any special, indirect, consequential or
punitive damages in respect of any claim for breach of contract or any other theory of liability



42









 







arising out of or related to the transactions contemplated by this Agreement, or any act, omission
or event occurring in connection therewith; and each Seller Party hereby waives, releases, and
agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not
known or suspected to exist in its favor. Notwithstanding anything in this Agreement to the
contrary, no Conduit shall have any obligation to pay any amount required to be paid by it
hereunder in excess of any amount available to it after paying or making provision for the payment
in full of its Commercial Paper. All payment obligations of each Conduit hereunder are contingent
on the availability of funds in excess of the amounts necessary to pay in full its Commercial
Paper; and each of the other parties hereto agrees that it will not have a claim under Section
101(5) of the Bankruptcy Code if and to the extent that any such payment obligation owed to it by
such Conduit exceeds the amount available to such Conduit to pay such amount after paying or making
provision for the payment in full of its Commercial Paper. The provisions of this Section 14.7 will
survive termination of this Agreement and payment in full of each Conduit’s Commercial Paper.



     Section 14.8 CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.



     Section 14.9 CONSENT TO JURISDICTION. EACH SELLER PARTY HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN CHICAGO,
ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO THIS AGREEMENT AND EACH SELLER PARTY
HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS
AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY AGENT OR PURCHASER TO BRING
PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL
PROCEEDING BY ANY SELLER PARTY AGAINST ANY AGENT OR PURCHASER OR ANY AFFILIATE OF ANY AGENT OR ANY
PURCHASER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY PURSUANT TO THIS
AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS.



     Section 14.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, ANY
DOCUMENT EXECUTED BY ANY SELLER PARTY PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.



43









 





     Section 14.11 Integration; Binding Effect; Survival of Terms.



          (a) This Agreement and each other Transaction Document contain the final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter hereof superseding all prior oral or written understandings.




          (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns (including any trustee in bankruptcy). This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms and shall remain in full force and effect until terminated in accordance
with its terms; provided, however, that the rights and remedies with respect to (i) any breach of
any representation and warranty made by any Seller Party pursuant to Article V, (ii) the
indemnification and payment provisions of Article X, and Sections 14.5 and 14.6 shall be continuing
and shall survive any termination of this Agreement.




     Section 14.12 Counterparts; Severability; Section References. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same Agreement. Any provisions of this Agreement which are prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. Unless otherwise expressly indicated, all
references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean articles and sections
of, and schedules and exhibits to, this Agreement.



     Section 14.13 Co-Agent Roles.



          (a) Each of the Committed Purchasers in the Jupiter Group acknowledges that JPMorgan Chase or
one of its Affiliates acts, or may in the future act, (i) as administrative agent for Jupiter or
any Committed Purchaser in the Jupiter Group, (ii) as issuing and paying agent for the Commercial
Paper of Jupiter, (iii) to provide credit or liquidity enhancement for the timely payment for the
Commercial Paper of Jupiter, and (iv) to provide other services from time to time for the various
members of the Jupiter Group (collectively, the “JPMorgan Chase Roles”). Without limiting the
generality of this Section 14.13(a), each Committed Purchaser in the Jupiter Group hereby
acknowledges and consents to any and all JPMorgan Chase Roles and agrees that in connection with
any JPMorgan Chase Role, JPMorgan Chase may take, or refrain from taking, any action that it, in
its discretion, deems appropriate, including, without limitation, in its role as administrative
agent for Jupiter, and the giving of notice to the Jupiter Agent of a mandatory purchase pursuant
to one of Jupiter’s Liquidity Agreements.




          (b) Each of the Committed Purchasers in the Liberty Street Group acknowledges that Scotiabank
or one of its Affiliates acts, or may in the future act, (i) as administrative agent for Liberty
Street or any Committed Purchaser in the Liberty Street Group, (ii) as issuing and paying agent for
the Commercial Paper of Liberty Street, (iii) to provide credit or liquidity enhancement for the
timely payment for the Commercial Paper of Liberty Street and




44









 







(iv) to provide other services from time to time for the members of the Liberty Street Group
(collectively, the “Scotiabank Roles”). Without limiting the generality of this Section 14.13(b),
each Committed Purchaser in the Liberty Street Group hereby acknowledges and consents to any and
all Scotiabank Roles and agrees that in connection with any Scotiabank Role, Scotiabank may take,
or refrain from taking, any action that it, in its discretion, deems appropriate, including,
without limitation, in its role as administrative agent for Liberty Street, and the giving of
notice to the Liberty Street Agent of a mandatory purchase pursuant to one of Liberty Street’s
Liquidity Agreements.




     Section 14.14 Characterization.



          (a) It is the intention of the parties hereto that each purchase hereunder shall constitute
and be treated as an absolute and irrevocable sale, which purchase shall provide the applicable
Purchaser with the full benefits of ownership of an interest in the applicable Purchaser Interest.
Except as specifically provided in this Agreement, each sale of a Purchaser Interest hereunder is
made without recourse to Seller; provided, however, that (i) Seller shall be liable to each
Purchaser and Agent for all representations, warranties, covenants and indemnities made by Seller
pursuant to the terms of this Agreement, and (ii) such sale does not constitute and is not intended
to result in an assumption by any Purchaser or Agent or any assignee thereof of any obligation of
Seller or any Originator or any other Person arising in connection with the Receivables, the
Related Security, or the related Contracts, or any other obligations of Seller or any Originator.




          (b) In addition to any ownership interest which the Administrative Agent may from time to time
acquire pursuant hereto, Seller hereby grants to the Administrative Agent for the ratable benefit
of the Purchasers, a valid and perfected security interest in all of Seller’s right, title and
interest in, to and under all Receivables now existing or hereafter arising, the Collections, each
Lock-Box, each Collection Account, all Related Security, all other rights and payments relating to
such Receivables, and all proceeds of any thereof prior to all other liens on and security
interests therein to secure the prompt and complete payment of the Aggregate Unpaids. The Agents
and the Purchasers shall have, in addition to the rights and remedies that they may have under this
Agreement, all other rights and remedies provided to a secured creditor under the UCC and other
applicable law, which rights and remedies shall be cumulative.




[SIGNATURE PAGES FOLLOW]




45









 









          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and
delivered by their duly authorized officers or signatories as of the date hereof.




TENNECO AUTOMOTIVE RSA COMPANY, a Delaware corporation




	 	 	 	 	 	 	 
	By:	 	/s/ John E. Kunz	 	 
	 	 	 	 	 
	Name:	 	John E. Kunz	 	 
	Title:	 	President and Treasurer	 	 
	Address:	 	500 North Field Drive	 	 
	 	 	Lake Forest, IL 60045	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	John E. Kunz	 	 
	 

	 	Phone:
	 	(847) 482-5163	 	 
	 

	 	Fax:
	 	(847) 482-5125	 	 






TENNECO AUTOMOTIVE OPERATING COMPANY INC.,

a Delaware corporation




	 	 	 	 	 	 	 
	By:	 	/s/ Gary Silha	 	 
	 	 	 	 	 
	Name:	 	Gary Silha	 	 
	Title:	 	Assistant Treasurer	 	 
	Address:	 	500 North Field Drive	 	 
	 	 	Lake Forest, IL 60045	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Gary Silha, Assistant Treasurer	 	 
	 

	 	Phone:
	 	(847) 482-5081	 	 
	 

	 	Fax:
	 	(847) 482-5125	 	 






46









 






JUPITER SECURITIZATION CORPORATION




	 	 	 	 	 
	By:

	 	/s/ John M. Kuhns
	 	 
	 

	 	 
Authorized Signatory
	 	 






	 	 	 	 	 	 	 
	Address:

	 	 	 	c/o JP Morgan Chase Bank, N.A., as Agent
	 	 
	 

	 	 	 	Asset Backed Securities	 	 
	 

	 	 	 	Suite IL1-1729	 	 
	 

	 	 	 	1 Bank One Plaza	 	 
	 

	 	 	 	Chicago, Illinois 60670-1729	 	 
	 

	 	 	 	Fax: (312) 732-1844	 	 






JP MORGAN CHASE BANK, N.A., as a Committed Purchaser, as Jupiter Agent and as Administrative
Agent




	 	 	 	 	 
	By:

	 	/s/ John M. Kuhns
	 	 
	Name:

	 	 

John M. Kuhns
	 	 
	Title:

	 	Vice President	 	 






	 	 	 	 	 
	Address:

	 	 	 	JPMorgan Chase Bank, N.A.
	 

	 	 	 	Asset Backed Securities
	 

	 	 	 	Suite IL1-1729
	 

	 	 	 	1 Bank One Plaza
	 

	 	 	 	Chicago, Illinois 60670-1729
	 

	 	 	 	Fax: (312) 732-4487






47









 






LIBERTY STREET FUNDING CORP.




	 	 	 	 	 
	By:

	 	/s/ Bernard J. Angelo
	 	 
	Name:

	 	 

Bernard J. Angelo
	 	 
	Title:

	 	Vice President	 	 
	 
	Address:
	 	 	 	 






Liberty Street Funding Corp.

c/o Global Securitization Services, LLC

114 West 47th Street, Suite 1715

New York, NY 10036

Attention: Andrew L. Stidd

Telephone: (212) 302-5151

Telecopy:   (212) 302-8767


With a copy to:


The Bank of Nova Scotia

One Liberty Plaza, 26th Floor

New York, NY 10006

Attention: Mike Eden, Director

Tel: (212) 225-5237

Fax: (212) 225-5290




48









 





THE BANK OF NOVA SCOTIA, as a Committed Purchaser and as Liberty Street
Agent




	 	 	 	 	 
	By:

	 	/s/ Michael Eden
	 	 
	Name:

	 	 
Michael Eden
	 	 
	Title:

	 	Director	 	 
	 

	 		 	 
	Address:
	 	 	 	 






The Bank of Nova Scotia

One Liberty Plaza, 24th Floor

New York, NY 10006


Attention: Kevin Scheinkopf [For Purchase Notices]

Tel: (212) 225-5311

Fax: (212) 225-6465

          and

Attention: Mike Eden, Director [For all other purposes]

Tel: (212) 225-5237

Fax: (212) 225-5290





49











 





EXHIBIT I




DEFINITIONS




          As used in this Agreement, the following terms shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the terms defined):



          “Accrual Period” means each calendar month.



          “Administrative Agent” has the meaning set forth in the preamble to this Agreement.



          “Adverse Claim” means a lien, security interest, charge or encumbrance, or other right
or claim in, of or on any Person’s assets or properties in favor of any other Person.



          “Affected Committed Purchaser” has the meaning specified in Section 12.1(c).



          “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with, such Person or any
Subsidiary of such Person. A Person shall be deemed to control another Person if the controlling
Person owns 10% or more of any class of voting securities of the controlled Person or possesses,
directly or indirectly, the power to direct or cause the direction of the management or policies of
the controlled Person, whether through ownership of stock, by contract or otherwise.



          “Agents” has the meaning set forth in the preamble to this Agreement.



          “Aggregate Capital” means, on any date of determination, the aggregate amount of Capital of
all Purchaser Interests outstanding on such date.



          “Aggregate
Reduction” has the meaning specified in Section 1.3.



          “Aggregate
Reserves” means, on any date of determination, the sum of the Loss Reserve, the
Dilution Reserve and the Servicer Reserve.



          “Aggregate
Unpaids” means, at any time, an amount equal to the sum of all Aggregate Capital
plus all accrued and unpaid Recourse Obligations (whether due or accrued) at such time.



          “Agreement” means this Second Amended and Restated Receivables Purchase Agreement, as it may
be amended or modified and in effect from time to time.



          “Amortization Date” means the earliest to occur of (i) the day on which any of the conditions
precedent set forth in Section 6.2 are not satisfied, (ii) the Business Day immediately prior to
the occurrence of an Amortization Event set forth in Section 9.1(d)(ii), (iii) the Business Day
specified in a written notice from the Administrative Agent following the



50









 







occurrence of any other Amortization Event, and (iv) the date which is thirty (30) Business Days
after the Agents’ receipt of written notice from Seller that it wishes to terminate the facility
evidenced by this Agreement.



          “Amortization Event” has the meaning specified in Article IX.



          “Applicable Margin” means, on any date of determination, the then “Applicable Margin” (as
defined in the Tenneco Credit Agreement).



          “Assignment Agreement” has the meaning set forth in Section 12.1(b).



          “Authorized Officer” means, with respect to any Person, its chief executive officer,
president, corporate controller, treasurer, assistant treasurer or chief financial officer.



          “Broken Funding Costs” means for any Purchaser Interest which: (i) has its Capital reduced
without compliance by Seller with the notice requirements hereunder or (ii) does not become subject
to an Aggregate Reduction following the delivery of any Reduction Notice or (iii) is assigned under
a Liquidity Agreement or terminated prior to the date on which it was originally scheduled to end;
an amount equal to the excess, if any, of (A) the CP Costs or Yield (as applicable) that would have
accrued during the remainder of the Tranche Periods or the tranche periods for Commercial Paper of
the applicable Conduit determined by the applicable Co-Agent to relate to such Purchaser Interest
(as applicable) subsequent to the date of such reduction, assignment or termination (or in respect
of clause (ii) above, the date such Aggregate Reduction was designated to occur pursuant to the
Reduction Notice) of the Capital of such Purchaser Interest if such reduction, assignment or
termination had not occurred or such Reduction Notice had not been delivered, over (B) the sum of
(x) to the extent all or a portion of such Capital is allocated to another Purchaser Interest, the
amount of CP Costs or Yield actually accrued during the remainder of such period on such Capital
for the new Purchaser Interest, and (y) to the extent such Capital is not allocated to another
Purchaser Interest, the income, if any, actually received during the remainder of such period by
the holder of such Purchaser Interest from investing the portion of such Capital not so allocated.
In the event that the amount referred to in clause (B) exceeds the amount referred to in clause
(A), the relevant Purchaser or Purchasers agree to pay to Seller the amount of such excess. All
Broken Funding Costs shall be due and payable hereunder upon demand.



          “Business Day” means any day on which banks are not authorized or required to close in New
York, New York or Chicago, Illinois and The Depository Trust Company of New York is open for
business, and, if the applicable Business Day relates to any computation or payment to be made with
respect to the LIBO Rate, any day on which dealings in dollar deposits are carried on in the London
interbank market.



          “Capital” of any Purchaser Interest means, at any time, (A) the Purchase Price of such
Purchaser Interest, minus (B) the sum of the aggregate amount of Collections and other payments
received by the applicable Co-Agent which in each case are applied to reduce such Capital in
accordance with the terms and conditions of this Agreement; provided that such Capital shall be
restored (in accordance with Section 2.5) in the amount of any Collections or



51









 







other payments so received and applied if at any time the distribution of such Collections or
payments are rescinded, returned or refunded for any reason.



          “Capital Stock” means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership
interests in a Person (other than a corporation) and any and all warrants, rights or options
to purchase any of the foregoing.



          “Change of Control” means that (i) any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) shall become, or obtain rights (whether by means of warrants,
options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5
under the Exchange Act), directly or indirectly, of more than 25% of the outstanding common stock
of Tenneco Automotive, (ii) the board of directors of Tenneco Automotive shall cease to consist of
a majority of Continuing Directors, (iii) a Specified Change of Control shall occur, or (iv)
Tenneco Automotive shall cease to be the beneficial owner (as defined above), directly or
indirectly, of 100% of the outstanding common stock of either of the Seller Parties.



          “Charged-Off Receivable” means a Receivable: (i) as to which the Obligor thereof has taken any
action, or suffered any event to occur, of the type described in Section 9.1(d) (as if references
to Seller Party therein refer to such Obligor); (ii) as to which the Obligor thereof, if a natural
person, is deceased, (iii) which, consistent with the Credit and Collection Policy, would be
written off Seller’s books as uncollectible, or (iv) which has been identified by Seller as
uncollectible.



          “Co-Agent” has the meaning set forth in the preamble to this Agreement.



          “Collection Account” means each concentration account, depositary account, lock-box account or
similar account in which any Collections are collected or deposited and which is listed on Exhibit
IV.



          “Collection Account Agreement” means an agreement substantially in the form of Exhibit VI
among an Originator, Seller, the Administrative Agent and a Collection Bank.



          “Collection Bank” means, at any time, any of the banks holding one or more Collection
Accounts.



          “Collection Notice” means a notice, in substantially the form of Annex A to Exhibit VI,
from the Administrative Agent to a Collection Bank.



          “Collections” means, with respect to any Receivable, all cash collections and other cash
proceeds in respect of such Receivable, including, without limitation, all yield, Finance Charges
or other related amounts accruing in respect thereof and all cash proceeds of Related Security with
respect to such Receivable; provided, however, that Collections will not include any cash collected
by means of electronic fund transfer until such cash is actually received by the Servicer.



52









 






          “Commercial Paper” means promissory notes of a Conduit issued by such Conduit in the
commercial paper market.



          “Commitment” means, for each Committed Purchaser, the commitment of such Committed Purchaser
to purchase interest in Purchaser Interests from Seller in an amount not to exceed (i) in the
aggregate, the amount set forth opposite such Committed Purchaser’s name on Schedule A to this
Agreement, as such amount may be modified in accordance with the terms hereof and (ii) with respect
to any individual purchase hereunder, its Pro Rata Share of its Group’s Percentage of the Purchase
Price therefor.



          “Commitment Availability” means, for each Group, the excess (if any) of (i) the aggregate
amount of the Commitments of the Committed Purchasers in such Group divided by 1.02, over (ii) the
outstanding aggregate Capital of all Purchasers in such Group.



          “Committed Purchasers” means the Liberty Street Committed Purchasers or the Jupiter Committed
Purchasers.



          “Concentration Limit” means, at any time, for any Obligor, one-third (1/3) of the Loss Reserve
Floor, or such other amount (a “Special Concentration Limit”) for such Obligor designated by the
Administrative Agent; provided that in the case of an Obligor and any Affiliate of such Obligor,
the Concentration Limit shall be calculated as if such Obligor and such Affiliate are one Obligor;
and provided, further, that the Administrative Agent may, upon not less than ten (10) Business
Days’ notice to Seller, cancel any Special Concentration Limit. As of the date hereof, and subject
to cancellation as described above, any Obligor and its Affiliates shall have a Special
Concentration Limit equal to 7% of Eligible Receivables so long as such Obligor’s long term debt
ratings equal or exceed “BBB-” from Standard & Poor’s, a division of the McGraw-Hill Companies
(“S&P”) and
“Baa3” from Moody’s Investors Service, Inc. (“Moody’s”).



          “Conduit” has the meaning set forth in the preamble to this Agreement.



          “Contingent Obligation” of a Person means any agreement, undertaking or arrangement by which
such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds for the
payment of, or otherwise becomes or is contingently liable upon, the obligation or liability of any
other Person, or agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person against loss,
including, without limitation, any comfort letter, operating agreement, take-or-pay contract or
application for a letter of credit.



          “Continuing Directors” means the directors of Tenneco Automotive on the date of the initial
Purchase hereunder and each other director, in each case, such other director’s nomination for
election of the board of directors of Tenneco Automotive is recommended by at least a majority of
the then Continuing Directors.



          “Contract” means, with respect to any Receivable, any and all instruments, agreements,
invoices or other writings pursuant to which such Receivable arises or which evidences such
Receivable.



53









 





          “CP Costs” means, for each day for each Conduit, the sum of (i) discount or yield accrued on
Pooled Commercial Paper of such Conduit on such day, plus (ii) any and all accrued commissions in
respect of such Conduit’s placement agents and Commercial Paper dealers, and issuing and paying
agent fees incurred, in respect of such Pooled Commercial Paper for such day, plus (iii) other
costs associated with funding small or odd-lot amounts with respect to all receivable purchase
facilities which are funded by Pooled Commercial Paper of such Conduit for such day, minus (iv) any
accrual of income net of expenses received on such day from investment of collections received
under all receivable purchase facilities funded substantially with Pooled Commercial Paper of such
Conduit, minus (v) any payment received on such day net of expenses in respect of Broken Funding
Costs related to the prepayment of any Purchaser Interest of such Conduit pursuant to the terms of
any receivable purchase or financing facilities funded substantially with Pooled Commercial Paper
of such Conduit. In addition to the foregoing costs, if Seller shall request any Incremental
Purchase during any period of time determined by the applicable Co-Agent in its sole discretion to
result in incrementally higher CP Costs applicable to such Incremental Purchase, the Capital
associated with any such Incremental Purchase shall, during such period, be deemed to be funded by
such Conduit in a special pool (which may include capital associated with other receivable purchase
facilities) for purposes of determining such additional CP Costs applicable only to such special
pool and charged each day during such period against such Capital. All CP Costs shall be allocated
to the Capital of each Conduit under this Agreement in accordance with the provisions of Section
3.1.



          “Credit and Collection Policy” means Seller’s credit and collection policies and practices
relating to Contracts and Receivables existing on the date hereof and summarized in Exhibit VIII
hereto, as modified from time to time in accordance with this Agreement.



          “Daily Report” means a report, in substantially the form of Exhibit XI hereto (appropriately
completed), furnished by the Servicer to the Agents pursuant to Section 8.5.



          “Daily Reporting Date” means (i) each Business Day on which Aggregate Capital is greater
than zero as of the end of such Business Day or (ii) each of the two (2) Business Days
immediately prior to the date upon which there is an Incremental Purchase, regardless of
whether Aggregate Capital is greater than zero.



          “Deduction” means any Receivable that the applicable Originator books as a new asset on its
general ledger which represents an amount withheld by an Obligor from its payment on another
Receivable.



          “Deemed Collections” means the aggregate of all amounts Seller shall have been deemed to have
received as a Collection of a Receivable. Seller shall be deemed to have received a Collection in
full of a Receivable if at any time (i) the Outstanding Balance of any such Receivable is either
(x) reduced as a result of any defective or rejected goods or services, any discount or any
adjustment or otherwise by Seller (other than as a result of such Receivable becoming a Charged-Off
Receivable or such Receivable having any credit issued with respect to it on account of a
repurchase pursuant to any Stock-Lift Agreement, on account of any Pass-Through Credit, Price
Give-Back Accrual or Warranty Accrual, or to reflect cash Collections on account of the
Receivables) or (y) reduced or canceled as a result of a setoff in respect of any claim by any
Person (whether such claim arises out of the same or a related transaction or an



54









 








unrelated transaction) or (ii) any of the representations or warranties in Article V are no
longer true with respect to any Receivable.



          “Default Fee” means with respect to any amount due and payable by Seller in respect of any
Aggregate Unpaids, an amount equal to the greater of (i) $1,000 and (ii) interest on any such
unpaid Aggregate Unpaids at a rate per annum equal to 2% above the Prime Rate.



          “Default Ratio” means, on any date of determination, the highest three-month rolling average
during the twelve-month period then most recently ended of the percentage equal to (i) the sum of
(a) the Outstanding Balance of Receivables which were 91-120 days past due on the last day of the
month then most recently ended, plus (b) the aggregate Outstanding Balance of all Receivables that
became Charged-Off Receivables in the prior month at a time when such Receivables were less than
121 days past due, divided by (ii) the aggregate sales of the Originators during the fifth month
prior to such date of determination.



          “Delinquency Ratio” means, at any time, a percentage equal to (i) the aggregate Outstanding
Balance of all Receivables that were Delinquent Receivables at such time divided by (ii) the
aggregate Outstanding Balance of all Receivables at such time.



          “Delinquent Receivable” means a Receivable as to which any payment, or part thereof,
remains unpaid for 61 days or more after the original due date for such payment.



          “Designated Obligor” means an Obligor indicated by the Administrative Agent to Seller in
writing.



          “Dilution Horizon Ratio” means cumulative sales of the Originators during the two (2) months
most recently ended divided by the Net Receivables Balance as of the last day of the month most
recently ended.



          “Dilution Ratio” means, at any time, a percentage equal to (i) the aggregate amount of
Dilutions which occurred during the month then most recently ended, divided by (ii) the aggregate
sales of the Originators during the month immediately preceding the month then most recently ended.



          “Dilution Reserve” means, on any date of determination, an amount equal to the greater of (a)
10% of the Net Receivables Balance, and (b) the amount determined pursuant to the following
formula:



                   {
(SF x ED) + [ (DS - ED) x (DS/ED) ] } x DHR x NRB




	 	where:	 	 
	 
	 	SF	 	= at any time while the long-term debt of Tenneco
Automotive is rated at least “B” by S&P and at least “B2” by Moody’s, 2.25,
and (b) at all other times, 2.50;
	 
	 	ED	 	= Expected Dilution;




55









 













	 	DS	 	= Dilution Spike;

	 
	 	DHR	 	= Dilution Horizon Ratio; and
	 
	 	NRB	 	= Net Receivables Balance.





          “Dilution Spike” means, at any time, the highest two-month rolling average Dilution Ratio
during the twelve months then most recently ended.



          “Dilutions” means, at any time, the aggregate amount of reductions or cancellations
described in clause (i) of the definition of “Deemed Collections”.



          “Discount Rate” means, the LIBO Rate, the Transaction Rate or the Prime Rate, as applicable,
with respect to each portion of Capital funded by the Committed Purchasers.



          “Eligible Receivable” means, at any time, a Receivable:



               (i) the Obligor of which (a) if a natural person, is a resident of the
United States or, if a corporation or other business organization, is organized under the laws of
the United States or any political subdivision thereof and has its chief executive office in the
United States; (b) is not an Affiliate of any of the parties hereto; (c) is not a Designated
Obligor; (d) is not a government or a governmental subdivision or agency; and (e) has not contested
the validity of any Receivables Sale Agreement or this Agreement,



               (ii) the Obligor of which is not the Obligor of (A) any Charged-Off
Receivable or (B) Receivables more than 25% of the aggregate Outstanding balance of which are
Delinquent Receivables,



               (iii) as to which no payment (or part thereof) is more than 60 days past the original due
date therefor,



               (iv) which is not a Charged-Off Receivable or a Deduction,



               (v) which by its terms is due and payable within 70 days of the
original billing date therefor and has not had its payment terms extended, provided, however, that
not more than 10% of the aggregate Outstanding Balance of all Receivables may have terms permitting
payment to be made within 71-150 days of the original billing date therefor and still be “Eligible
Receivables” so long as their payment terms have not been extended,



               (vi) which is an “account” within the meaning of Article 9 of the UCC of all applicable
jurisdictions,



               (vii) which is denominated and payable only in United States dollars in the United States,



               (viii) which arises under a Contract which, together with such Receivable, is in full force
and effect and constitutes the legal, valid and binding obligation of



56









 







the related Obligor enforceable against such Obligor in accordance with its terms subject to no
offset, counterclaim or other defense,



               (ix) which arises under a Contract which (A) does not require the
Obligor under such Contract to consent to the transfer, sale or assignment of the rights and duties
of the applicable Originator or any of its assignees under such Contract and (B) does not contain a
confidentiality provision that purports to restrict the ability of any Purchaser to exercise its
rights under this Agreement, including, without limitation, its right to review the Contract,



               (x) which represents an obligation to pay a specified sum of money, contingent only upon
the sale of goods or the provision of services by the applicable Originator,



               (xi) which, together with the Contract related thereto, does not
contravene any law, rule or regulation applicable thereto (including, without limitation, any law,
rule and regulation relating to truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy) and with respect to which no part
of the Contract related thereto is in violation of any such law, rule or regulation,



               (xii) which satisfies all applicable requirements of the Credit and Collection
Policy,



               (xiii) which was generated in the ordinary course of the applicable Originator’s
business,



               (xiv) which arises solely from the sale of goods or the provision of services to the
related Obligor by the applicable Originator, and not by any other Person (in whole or in
part),



               (xv) as to which the Administrative Agent (at the direction of the Co-Agents) has not
notified Seller that the Agents have determined that such Receivable or class of Receivables is not
acceptable as an Eligible Receivable, including, without limitation, because such Receivable arises
under a Contract that is not acceptable to the Agents,



               (xvi) which is not subject to any right of rescission, set-off,
counterclaim, any other defense (including defenses arising out of violations of usury laws) of the
applicable Obligor against the applicable Originator or any other Adverse Claim, and the Obligor
thereon holds no right as against such Originator to cause such Originator to repurchase the goods
or merchandise the sale of which shall have given rise to such Receivable (except with respect to
sale discounts effected pursuant to the Contract, or defective goods returned in accordance with
the terms of the Contract); provided, however, that Receivables of any Obligor which has any
accounts payable owing to such Obligor from such Originator (thus giving rise to a potential offset
against such Receivables) may be treated as Eligible Receivables if they meet the other criteria
set forth in this definition but only to the extent that the aggregate Outstanding Balance of such
Receivables exceeds the aggregate outstanding amount of all such payables,



               (xvii) as to which the applicable Originator has satisfied and fully performed all
obligations on its part with respect to such Receivable required to be fulfilled by it,



57









 







and no further action is required to be performed by any Person with respect thereto other than
payment thereon by the applicable Obligor,



               (xviii) as to which the applicable Obligor has not been the subject of any proceeding of the
type described in Section 9.1(d) (as if references therein to any Seller Party were a reference to
such Obligor) in the 12 months prior to any date of determination,



               (xix) all right, title and interest to and in which has been validly transferred by the
applicable Originator directly to Seller under and in accordance with the applicable Receivables
Sale Agreement, and Seller has good and marketable title thereto free and clear of any Adverse
Claim except as created hereunder, and



               (xx) which is not subject to a Stock Lift Agreement, provided, however, that Receivables
subject to a Stock Lift Agreement may be treated as Eligible Receivables if they meet the other
criteria set forth in this definition but only to the extent that the aggregate Outstanding Balance
of such Receivables exceeds the aggregate amount of accruals recorded by the Originator, as
estimated by Servicer’s sales group, to reflect a potential credit to be provided pursuant to a
Stock Lift Agreement.



          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time
to time.



          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the regulations
promulgated pursuant thereto.



          “Expected Dilution” means the rolling twelve-month average of the Dilution Ratio.



          “Facility Termination Date” means the earlier to occur of (i) the Liquidity Termination
Date and (ii) the Amortization Date.



          “Federal Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as
amended and any successor statute thereto.



          “Federal Funds Effective Rate” means, for any period, a fluctuating interest rate per annum
for each day during such period equal to (a) the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the preceding Business Day) by
the Federal Reserve Bank of New York in the Composite Closing Quotations for U.S. Government
Securities; or (b) if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 10:30 a.m. (Chicago time) for such day on such
transactions received by the applicable Co-Agent from three federal funds brokers of recognized
standing selected by it.



          “Fee Letter” means the Sixth Amended and Restated Fee Letter dated as of May 4, 2005 by and
among Seller and the Agents, as the same may be amended, restated or otherwise modified from time
to time.



58









 








          “Finance Charges” means, with respect to a Contract, any finance, interest, late payment
charges or similar charges owing by an Obligor pursuant to such Contract.



          “Funding Source” means (i) any Committed Purchaser or (ii) any insurance company, bank or
other funding entity providing liquidity, credit enhancement or back-up purchase support or
facilities to a Conduit.



          “GAAP” means generally accepted accounting principles in effect in the United States of
America as of the date of this Agreement.



          “Group” means the Jupiter Group or the Liberty Street Group.



          “Incremental Purchase” means a purchase of one or more Purchaser Interests which increases the
total outstanding Aggregate Capital hereunder.



          “Indebtedness” of a Person means such Person’s (i) obligations for borrowed money, (ii)
obligations representing the deferred purchase price of property or services (other than accounts
payable arising in the ordinary course of such Person’s business payable on terms customary in the
trade), (iii) obligations, whether or not assumed, secured by liens or payable out of the proceeds
or production from property now or hereafter owned or acquired by such Person, (iv) obligations
which are evidenced by notes, acceptances, or other instruments, (v) capitalized lease obligations,
(vi) net liabilities under interest rate swap, exchange or cap agreements, (vii) Contingent
Obligations and (viii) liabilities in respect of unfunded vested benefits under plans covered by
Title IV of ERISA.



          “Independent Director” shall mean a member of the board of directors of Seller who is not at
such time, and has not been at any time during the preceding five (5) years, (A) a director,
officer, employee or affiliate of any Originator, or any of its Subsidiaries or Affiliates (other
than Seller), or (B) the beneficial owner (at the time of such individual’s appointment as an
Independent Director or at any time thereafter while serving as an Independent Director) of any of
the outstanding common shares of Seller, any Originator, or any of their respective Subsidiaries or
Affiliates, having general voting rights.




          “JPMorgan Chase” means JPMorgan Chase Bank, N.A. in its individual capacity and its
successors.



          “Jupiter”
has the meaning set forth in the preamble to this
Agreement.

          “Jupiter
Co-Agent” has the meaning set forth in the preamble to this Agreement.



          “Jupiter Committed Purchasers” has the meaning set forth in the preamble to this Agreement.



          “Jupiter Group” means Jupiter and the Jupiter Committed Purchasers.



          “Jupiter Liquidity Agreement” means that certain Asset Purchase Agreement dated as of May 4,
2005 by and among Jupiter, the Jupiter Co-Agent and JPMorgan Chase, as the same may be amended,
restated or otherwise modified from time to time.



59









 






          “Level One Ratings Period” means any period during which Tenneco Automotive’s long-term
debt is rated “BBB-” or higher by S&P and “Baa3” or higher by Moody’s.



          “Level Two Ratings Period” means any period, other than a Level One Ratings Period, during
which Tenneco Automotive’s long-term debt is rated “BB-” or higher by S&P and “Ba3” or higher by
Moody’s.



          “Level Three Ratings Period” means any period during which Tenneco Automotive’s long-term
debt is rated “B+” or lower by S&P or “B1” or lower by Moody’s.



          “Liberty
Street” has the meaning set forth in the preamble to
this Agreement.


          
“Liberty Street Co-Agent” has the meaning set forth in the preamble to this


 Agreement.



          “Liberty Street Committed Purchasers” has the meaning set forth in the preamble to
this Agreement.



          “Liberty Street Group” means Liberty Street and the Liberty Street Committed Purchasers.



          “Liberty Street Liquidity Agreement” means that certain Liquidity Asset Purchase Agreement
dated as of May 4, 2005 by and among Liberty Street, the Liberty Street Co-Agent and Scotiabank, as
the same may be amended, restated or otherwise modified from time to time.



          “LIBO Rate” means the rate per annum equal to the sum of (i) (a) the applicable British
Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters
Screen FRBD as of 11:00 a.m. (London time) two (2) Business Days prior to the first day of the
relevant Tranche Period, and having a maturity equal to such Tranche Period, provided that, (i) if
Reuters Screen FRBD is not available to a Co-Agent for any reason, the applicable LIBO Rate for the
relevant Tranche Period shall instead be the applicable British Bankers’ Association Interest
Settlement Rate for deposits in U.S. dollars as reported by any other generally recognized
financial information service as of 11:00 a.m. (London time) two (2) Business Days prior to the
first day of such Tranche Period, and having a maturity equal to such Tranche Period, and (ii) if
no such British Bankers’ Association Interest Settlement Rate is available to a Co-Agent, the
applicable LIBO Rate for the relevant Tranche Period shall instead be the rate determined by such
Co-Agent to be the rate at which such Co-Agent offers to place deposits in U.S. dollars with
first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two (2)
Business Days prior to the first day of such Tranche Period, in the approximate amount to be funded
at the LIBO Rate and having a maturity equal to such Tranche Period, divided by (b) one minus the
maximum aggregate reserve requirement (including all basic, supplemental, marginal or other
reserves) which is imposed against such Co-Agent in respect of Eurocurrency liabilities, as defined
in Regulation D of the Board of Governors of the Federal Reserve System as in effect from time to
time (expressed as a decimal), applicable to such Tranche Period plus (ii) the “Applicable Margin”
that is applicable to “Revolving Loans” that are “Eurodollar Loans” (in each of the foregoing
cases, as defined in the



60









 







Tenneco Credit Agreement), per annum. The LIBO Rate shall be rounded, if necessary, to the next
higher 1/16 of 1%.



          “Liquidity Agreement” means the Jupiter Liquidity Agreement or the Liberty Street Liquidity
Agreement.



          “Liquidity Termination Date” means January 30, 2006.



          “Lock-Box” means each locked postal box with respect to which a bank who has executed a
Collection Account Agreement has been granted exclusive access for the purpose of retrieving and
processing payments made on the Receivables and which is listed on Exhibit IV.



          “Loss Horizon Ratio” means, on any date of determination, a percentage equal to the quotient
of (i) aggregate cumulative sales of the Originator during the three months then most recently
ended, divided by (ii) the Net Receivables Balance as of the last day of the month then most
recently ended.



          “Loss Reserve” means, on any date, an amount equal to the greater of (A) the Loss Reserve
Floor and (B) an amount equal to the product of the Loss Reserve Percentage and the Net Receivables
Balance as of such date.



          “Loss Reserve Floor” means (a) at any time while the long-term senior secured debt of Tenneco
Automotive is rated at least “B” by S&P and at least “B2” by Moody’s, 18% of the Net Receivables
Balance, and (b) at all other times, 21% of the Net Receivables Balance.



          “Loss Reserve Percentage” means a percentage equal to 2.25 times the product of the Default
Ratio times the Loss Horizon Ratio.



          “Loss-to-Liquidation Ratio” means, as at the last day of any calendar month, a percentage
equal to (a) the sum of (i) Receivables that are 61-90 days past due as of such date, plus (ii)
without duplication of amounts included in clause (i), the amount of Charged-Off Receivables which
became Charged-Off Receivables during such month, divided by (b) the aggregate amount of
Collections during such month.



          “Material Adverse Effect” means a material adverse effect on (i) the business, property,
operations or condition (financial or otherwise) of Performance Guarantor and its Subsidiaries,
taken as a whole, or of either Seller Party, (ii) the ability of either Seller Party to perform its
obligations under this Agreement or the Performance Guarantor to perform its obligations under the
Performance Undertaking, (iii) the legality, validity or enforceability of this Agreement or any
other Transaction Document, (iv) any Purchaser’s interest in the Receivables generally or in any
significant portion of the Receivables, the Related Security or the Collections with respect
thereto, or (v) the collectibility of the Receivables generally or of any material portion of the
Receivables.



          “Monthly Payment Date” means two (2) Business Days after the Monthly Reporting Date.



61









 






          “Monthly Report” means a report, in substantially the form of Exhibit X hereto (appropriately
completed), furnished by the Servicer to the Agents pursuant to Section 8.5.



          “Monthly Reporting Date” means the 7th day of each month hereafter (or, if any such
day is not a Business Day, the next succeeding Business Day thereafter.



          “Net Receivables Balance” means, at any time, the result of (a) the aggregate Outstanding
Balance of all Eligible Receivables, minus (b) the Overconcentration Amount, minus (c) the
Pass-Through Reserve at such time, minus (d) the Warranty Reserve at such time, minus the (e) Price
Give-Back Accrual at such time; provided, however, that the sum of the Pass-Through Reserve, the
Price Give-Back Accrual, the Warranty Reserve and the Overconcentration Amount attributable to any
Obligor shall not exceed the aggregate Outstanding Balance of all Eligible Receivables for such
Obligor included in the calculation of Net Receivables Balance.



          “New Pass-Through Credits” means, at any time for any Obligor, the balance of Pass-Through
Credits that became Pass-Through Credits during the calendar month most recently ended.



          “Obligor” means a Person obligated to make payments pursuant to a Contract.



          “Originator” means (a) Tenneco Operating, and (b) The Pullman Company, a Delaware corporation,
each in its capacity as seller under the applicable Receivables Sale Agreement.



          “Outstanding Balance” of any Receivable at any time means the then outstanding
principal balance thereof.



          “Overconcentration Amount” means, at any time, the aggregate for all Obligors of the sum, with
respect to each Obligor, of the excess, if any, of (a) the aggregate Outstanding Balance of all
Eligible Receivables of such Obligor and its Affiliates, after subtracting the Pass-Through
Reserve, the Warranty Reserve and the Price Give-Back Accrual, in each case, allocated to the
Receivables of such Obligor and its Affiliates, if any, over (b) the Concentration Limit for such
Obligor and its Affiliates.



          “Participant” has the meaning set forth in Section 12.2.



          “Pass-Through Credit” means, at any time for any Obligor, the aggregate credit due to such
Obligor resulting from the overpayment to any Seller Party of such Obligor’s Receivables because a
portion of any such Receivable was payable to a Person other than the Originator of such
Receivable.



          “Pass-Through Reserve” means, at any time, the aggregate for all Obligors of the sum, with
respect to each Obligor, of the sum of (1) the aggregate of the Pass-Through Credits as of the last
day of the month most recently ended and (2) the product of (a) 1.5 and (b) the average of the New
Pass-Through Credits for each of the three (3) months then most recently ended.



62









 






          “Percentage” means 55.555556% for the Jupiter Group and 44.444444% for the Liberty Street
Group, which percentages shall be adjusted to give effect to the terms and provisions of Section
2.2. Notwithstanding the foregoing, for purposes of the initial Purchase after the effective date
of this Agreement, the applicable Percentage for the Liberty Street Group shall be increased, and
the applicable Percentage for the Jupiter Group shall be decreased, such that after giving effect
to such initial Purchase, the outstanding Capital from each Group shall be 55.555556% for the
Jupiter Group and 44.444444% for the Liberty Street Group.



          “Performance Guarantor” means Tenneco Automotive.



          “Performance Undertaking” means that certain Third Amended and Restated Performance
Undertaking, dated as of May 4, 2005, made by the Performance Guarantor in favor of Seller,
substantially in the form of Exhibit XI, as the same may be amended, restated or otherwise modified
from time to time.



          “Person“means an individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated association, joint
venture or other entity, or a government or any political subdivision or agency thereof.



          “Pooled Commercial Paper” means Commercial Paper notes of a Conduit subject to any particular
pooling arrangement by such Conduit, but excluding Commercial Paper issued by such Conduit for a
tenor and in an amount specifically requested by any Person in connection with any agreement
effected by such Conduit.



          “Potential Amortization Event” means an event which, with the passage of time or the giving of
notice, or both, would constitute an Amortization Event.



          “Price Give-Back Accrual” means, at any time, the aggregate for all Obligors of the sum, with
respect to each Obligor, of all accounting reserve or “contra” entries established on any
Originator’s books and records in respect of such Originator’s liability in connection with any
discount owed to such Obligor under a sales contract.



          “Prime Rate” means a rate per annum equal to the sum of (a) the “Applicable Margin” that is
applicable to “Revolving Loans” that are “ABR Loans” (in each of the foregoing cases, as defined in
the Tenneco Credit Agreement), plus (b) the prime rate of interest announced from time to time by
the applicable Co-Agent or its parent (which is not necessarily the lowest rate charged to any
customer), changing when and as said prime rate changes.



          “Pro Rata Share” means, for each Committed Purchaser, a percentage equal to (i) the
Commitment of such Committed Purchaser, divided by (ii) the aggregate amount of the Commitments
of all Committed Purchasers in its Group.



          “Proposed Reduction Date” has the meaning set forth in Section 1.3.



          “Purchase Limit” means $90,000,000.



          “Purchase Notice” has the meaning set forth in Section 1.2.



63









 






          “Purchase Price” means, with respect to any Incremental Purchase of a Purchaser Interest, the
amount paid to Seller for such Purchaser Interest which shall not exceed the least of (i) the
amount requested by Seller in the applicable Purchase Notice, (ii) the unused portion of the
Purchase Limit on the applicable purchase date and (iii) the excess, if any, of the Net Receivables
Balance (less the Aggregate Reserves) on the applicable purchase date over the aggregate
outstanding amount of Aggregate Capital determined as of the date of the most recent Daily Report
or, in the case of the Aggregate Reserves, the most recent Monthly Report, taking into account such
proposed Incremental Purchase.



          “Purchaser” means each of the Conduits and Committed Purchasers.



          “Purchaser Interest” means, at any time, an undivided percentage ownership interest (computed
as set forth below) associated with a designated amount of Capital, selected pursuant to the terms
and conditions hereof in (i) each Receivable arising prior to the time of the most recent
computation or recomputation of such undivided interest, (ii) all Related Security with respect to
each such Receivable, and (iii) all Collections with respect to, and other proceeds of, each such
Receivable. Each such undivided percentage interest shall equal:



	 	 	 	 	 
	 

	 	C
	 	 
	 

	 	 	 	 
	 

	 	NRB – AR	 	 







	 	where:	 	 
	 
	 	C	 	= the Capital of such Purchaser Interest.
	 
	 	AR	 	= the Aggregate Reserves.
	 
	 	NRB	 	= the Net Receivables Balance.





Such undivided percentage ownership interest shall be initially computed on its date of purchase.
Thereafter, until the Amortization Date, each Purchaser Interest shall be automatically recomputed
(or deemed to be recomputed) on each day prior to the Amortization Date. The variable percentage
represented by any Purchaser Interest as computed (or deemed recomputed) as of the close of the
Business Day immediately preceding the Amortization Date shall remain constant at all times
thereafter.



          “Purchasing
Committed Purchaser” has the meaning set forth in
Section 12.1(b).



          “Receivable” means all indebtedness and other obligations owed to Seller or an Originator (at
the time it arises, and before giving effect to any transfer or conveyance under a Receivables Sale
Agreement or hereunder), excluding any such indebtedness or obligations owed by any Subsidiary of
Tenneco Automotive, or in which Seller or an Originator has a security interest or other interest,
including, without limitation, any indebtedness, obligation or interest constituting an account,
chattel paper, instrument or general intangible, arising in connection with the sale of goods or
the rendering of services by such Originator, and further includes, without limitation, the
obligation to pay any Finance Charges with respect thereto. Indebtedness and other rights and
obligations arising from any one transaction, including, without limitation,




64










 





indebtedness and other rights and obligations represented by an individual invoice, shall
constitute a Receivable separate from a Receivable consisting of the indebtedness and other rights
and obligations arising from any other transaction; provided further,
that any indebtedness, rights
or obligations referred to in the immediately preceding sentence shall be a Receivable regardless
of whether the account debtor or Seller treats such indebtedness, rights or obligations as a
separate payment obligation.




          “Receivables Sale Agreement” means either (a) that certain Receivables Sale Agreement, dated
as of October 31, 2000, between Tenneco Operating, as seller, and Seller, as purchaser, or (b) that
certain Receivables Sale Agreement, dated as of December 27, 2000, between The Pullman Company, as
seller, and Seller, as purchaser, as each of the foregoing may be amended, restated or otherwise
modified from time to time.




          “Records” means, with respect to any Receivable, all Contracts and other documents, books,
records and other information (including, without limitation, computer programs, tapes, disks,
punch cards, data processing software and related property and rights) relating to such Receivable,
any Related Security therefor and the related Obligor.




          “Recourse Obligations” shall have the meaning set forth in Section 2.1.




          “Reduction
Notice” has  the meaning set forth in Section 1.3.




          “Regulatory Change” has the meaning set forth in Section 10.2(a).




          “Reinvestment” has the meaning set forth in Section 2.2.




          “Related
Security” means, with respect to any Receivable:





     (i) all security interests or liens and property subject thereto from time
to time, if any, purporting to secure payment of such Receivable, whether pursuant to
the Contract related to such Receivable or otherwise, together with all financing
statements and security agreements describing any collateral securing such Receivable,
but excluding any UCC Article 2 security interest in the goods, the sale of which gave
rise to such Receivable,




     (ii) all guaranties, letters of credit, insurance and other agreements or
arrangements of whatever character from time to time supporting or securing payment of
such Receivable whether pursuant to the Contract related to such Receivable or
otherwise,




     (iii) all service contracts and other contracts and agreements associated
with such Receivable,




     (iv) all Records related to such Receivable,




     (v) all of Seller’s right, title and interest in, to and under the
applicable Receivables Sale Agreement in respect of such Receivable and all of
Seller’s right, title and interest in, to and under the Performance Undertaking, and



65









 








     (vi) all proceeds of any of the foregoing.



          “Required Capital Amount” means $30,000,000.




          “Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect,
on account of any shares of any class of capital stock of Seller now or hereafter outstanding,
except a dividend payable solely in shares of that class of stock or in any junior class of stock
of Seller, (ii) any redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of capital stock of Seller
now or hereafter outstanding, (iii) any payment or prepayment of principal of, premium, if any, or
interest, fees or other charges on or with respect to, and any redemption, purchase, retirement,
defeasance, sinking fund or similar payment and any claim for rescission with respect to the
“Subordinated Loans” (as such term is defined in the Receivables Sale Agreements), (iv) any payment
made to redeem, purchase, repurchase or retire, or to obtain the surrender of, any outstanding
warrants, options or other rights to acquire shares of any class of capital stock of Seller now or
hereafter outstanding, and (v) any payment of management fees by Seller (except for reasonable
management fees to any Originator or its Affiliates in reimbursement of actual management services
performed).




          “Seller” has the meaning set forth in the preamble to this Agreement.




          “Seller Parties” has the meaning set forth in the preamble to this Agreement.




          “Servicer” means at any time the Person (which may be the Agent) then authorized pursuant
to Article VIII to service, administer and collect Receivables.




          “Servicer Reserve” means, on any date, an amount equal to 2% multiplied by the Net Receivables
Balance as of the close of business of the Servicer on such date.




          “Servicing Fee” has the meaning set forth in Section 8.6.




          “Settlement
Date ”means (A) the Business Day following receipt of each Daily Report or Weekly
Report (as applicable), (B) each Monthly Payment Date, and (C) the Business Day on which any
Recourse Obligation is not paid when due.




          “Settlement Report” means each Daily Report, Weekly Report or Monthly Report.




          “Specified Change of Control” means the occurrence of one or more of the following
events:





     (1) any sale, lease, exchange or other transfer (in one transaction or a
series of related transactions) of all or substantially all of the assets of
Tenneco Automotive to any Person or group of related Persons for purposes of
Section 13(d) of the Exchange Act (a “Group”), together with any Affiliates
thereof;




     (2) the approval by the holders of Capital Stock of Tenneco Automotive of any plan
or proposal for the liquidation or dissolution of Tenneco Automotive;



66









 








     (3) any Person or Group shall become the beneficial owner, directly or indirectly,
of shares representing more than 35% of the aggregate ordinary voting power represented
by the issued and outstanding Capital Stock of Tenneco Automotive; or




     (4) during any period of two consecutive years, individuals who at the beginning
of such period constituted the board of directors (together with any new directors
whose election by such board of directors or whose nomination for election by the
stockholders of Tenneco Automotive was approved pursuant to a vote of a majority of the
directors then still in office who were either directors at the beginning of such
period or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the board of directors then in office.



          “Stock Lift Agreement” means a Contract that requires the Originator to repurchase
existing shelf stock from the applicable Obligor.




          “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding securities
having ordinary voting power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries, or (ii) any partnership, association, limited liability company, joint venture
or similar business organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled. Unless otherwise expressly provided,
all references herein to a “Subsidiary” shall mean a Subsidiary of Seller.




          “Tenneco
Automotive” means  Tenneco Automotive Inc., a Delaware corporation.




          “Tenneco Automotive Entities” means Tenneco Automotive and each of its Subsidiaries and
Affiliates other than Seller.




          “Tenneco Credit Agreement” means that certain Amended And Restated Credit Agreement dated as
of December 12, 2003 (amending and restating the credit agreement dated as of September 30,1999)
(as amended, supplemented or otherwise modified from time to time) by and among Tenneco Automotive
Inc., the several lenders from time to time parties thereto, JPMorgan Chase Bank as Administrative
Agent for the lenders, and the other financial institutions named therein as agents for the
lenders.




          “Tenneco Operating” has the meaning set forth in the preamble.




          “Terminating Committed Purchaser” has the meaning set forth in Section 13.6(a).




          “Terminating Tranche” has the meaning set forth in Section 4.3(b).




          “Termination Date” has the meaning set forth in Section 2.2.





          “Termination
Percentage” has the meaning set forth in Section 2.2.




67









 









          “Tranche
Period” means, with respect to any portion of a
Purchaser Interest held by a Committed
Purchaser:





     (a) if Yield for such Purchaser Interest is calculated on the basis of the LIBO
Rate, a period of one, two, three or six months (or such other period — including but
not limited to one or two week(s) — as may be mutually agreeable to the applicable
Co-Agent and Seller), commencing on a Business Day selected by Seller or the Agent
pursuant to this Agreement. Such Tranche Period shall end on the day in the applicable
succeeding calendar month which corresponds numerically to the beginning day of such
Tranche Period, provided, however, that if there is no such numerically corresponding
day in such succeeding month, such Tranche Period shall end on the last Business Day
of such succeeding month; or




     (b) if Yield for such Purchaser Interest is calculated on the basis of a
Transaction Rate, a period of up to 30 days commencing and ending on a Business Day
selected by the Seller and agreed to by the Agent pursuant to this Agreement; or




     (c) if Yield for such Purchaser Interest is calculated on the basis of the Prime
Rate, a period commencing on a Business Day selected by Seller and agreed to by the
Agent, provided no such period shall exceed one month.


If any Tranche Period would end on a day which is not a Business Day, such Tranche Period shall end
on the next succeeding Business Day, provided, however, that in the case of Tranche Periods
corresponding to the LIBO Rate, if such next succeeding Business Day falls in a new month, such
Tranche Period shall end on the immediately preceding Business Day. In the case of any Tranche
Period for any Purchaser Interest which commences before the Amortization Date and would otherwise
end on a date occurring after the Amortization Date, such Tranche Period shall end on the
Amortization Date. The duration of each Tranche Period which commences after the Amortization Date
shall be of such duration as selected by the Agent.




          “Transaction Documents” means, collectively, this Agreement, each Purchase Notice, each
Receivables Sale Agreement, each Collection Account Agreement, the Performance Undertaking, the Fee
Letter, the “Subordinated Notes” (as such term is defined in the Receivables Sale Agreements) and
all other instruments, documents and agreements executed and delivered in connection herewith.




          “Transaction Rate” means a short-term fixed rate per annum quoted from time to time by a
Co-Agent upon request of the Seller for Tranche Periods of up to 30 days, which rate shall include
a spread over such Co-Agent’s cost of funds of 325 basis points.




          “UCC” means the Uniform Commercial Code as from time to time in effect in the specified
jurisdiction.




          “Warranty Accrual” means, at any time, the aggregate amount of the accounting reserve or
“contra” entries established with respect to the Receivables on any Originator’s books and records
in respect of such Originator’s liability in connection with its Warranty Plans.




68









 









          “Warranty Plans” means, collectively, the Originators’ various warranty programs.




          “Warranty Reserve” means, at any time, the greater of (i) the product of (a) 1.5 and (b) a
fraction, the numerator of which is the average of the Warranty Accruals during each of the three
(3) months then most recently ended, and the denominator of which is the average of the cumulative
sales of the Originators during each of the three (3) months then most recently ended and (c) the
cumulative sales of the Originators during the month most recently ended and (ii) the amount of
Warranty Accruals during the month then most recently ended.




          “Weekly Report” means a report in form reasonably acceptable to the Administrative Agent
(appropriately completed), furnished by the Servicer to the Agents pursuant to Section 8.5.




          “Weekly Update Date” means the second Business Day following the last day of each week.




          “Yield”
means for each respective Tranche Period relating to any portion of a Purchaser
Interest that is held on behalf of the Committed Purchasers, an amount equal to the product of the
applicable Discount Rate for each Purchaser Interest multiplied by the Capital of such Purchaser
Interest for each day elapsed during such Tranche Period, annualized on a 360 day basis in the case
of the LIBO Rate or the Transaction Rate and on a 365 (or, when appropriate, 366) day basis in the
case of the Prime Rate.




          All accounting terms not specifically defined herein shall be construed in accordance with
GAAP. All terms used in Article 9 of the UCC in the State of Illinois, and not specifically defined
herein, are used herein as defined in such Article 9.




69









 






EXHIBIT II




FORM OF PURCHASE NOTICE




[Date]




JPMorgan Chase Bank, N.A., as Jupiter Agent 

1 Bank One Plaza, IL1-1729 

Asset-Backed Securities

Chicago, Illinois 60670-1729




Attention: Asset-Backed Securities, Jupiter Conduit Administrator





The Bank of Nova Scotia, as Liberty Street Agent

 One Liberty Plaza, 24th Floor 

New York, NY 10006




Attention: Kevin Scheinkopf




          Re: PURCHASE NOTICE



Ladies and Gentlemen:




          Reference is hereby made to the Second Amended and Restated Receivables Purchase Agreement,
dated as of May 4, 2005, by and among Tenneco Automotive RSA Company, a Delaware corporation (the
“Seller”), Tenneco Automotive Operating Company, as Servicer, the Committed Purchasers, Jupiter
Securitization Corporation, Liberty Street Funding Corp., The Bank of Nova Scotia, New York Agency,
individually and as Jupiter Agent, and JPMorgan Chase Bank, N.A., individually as Jupiter Agent and
as Administrative Agent (the “Receivables Purchase Agreement”). Capitalized terms used herein shall
have the meanings assigned to such terms in the Receivables Purchase Agreement.




          The Agent is hereby notified of the following Incremental Purchase:




	 	 	 	 	 
	Purchase Price (Total):
	 	$	                                        	 
	 
	 	 	 	 
	Jupiter Group’s Percentage of Purchase Price:
	 	$	                                        	 
	 
	 	 	 	 
	Liberty Street Group’s Percentage of Purchase
Price:
	 	$	                                        	 
	 
	 	 	 	 
	Date of Purchase:
	 	 	                                        	 






70









 







	 	 	 
	Requested Discount Rate:

	 	[LIBO Rate] [Prime Rate] [Transaction Rate]
	 

	 	[Pooled Commercial Paper rate]






          Please credit the Purchase Price in immediately available funds to:





          [Account Name]




          [Account No.]




          [Bank Name & Address]




          [ABA#]




          Reference:




          Telephone advice to: [Name] @ tel. no. ( ___)




          Please advise [Name] at telephone no. ( ___)                                        if Conduit will not be making this Purchase.




          In connection with the Incremental Purchase to be made on the above listed “Date of Purchase”
(the “Purchase Date”), the Seller hereby certifies that the following statements are true on the
date hereof, and will be true on the Purchase Date (before and after giving effect to the proposed
Incremental Purchase):




          (i) the representations and warranties of the Seller set forth in Section 5.1 of the
Receivables Purchase Agreement are true and correct on and as of the Purchase Date as though made
on and as of such date;




          (ii) no event has occurred and is continuing, or would result from the proposed
Incremental Purchase, that will constitute an Amortization Event or a Potential Amortization
Event;




          (iii) the Facility Termination Date has not occurred, the Aggregate Capital does not
exceed the Purchase Limit and the aggregate Purchaser Interests do not exceed 100%; and




          (iv) the
amount of Aggregate Capital is $___ after giving effect to the



Incremental Purchase to be made on the Purchase Date.




	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	TENNECO AUTOMOTIVE RSA
COMPANY, 
a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 






71









 







EXHIBIT III




PLACES OF BUSINESS OF THE SELLER PARTIES; LOCATIONS OF RECORDS;

FEDERAL EMPLOYER IDENTIFICATION NUMBER(S)




Places of Business and Locations of Records:





	 	A.	 	Tenneco Operating:




Chief Executive Office

500 North Field Drive

Lake Forest, IL 60045



Other Place of Business

1 International Drive

Monroe, Michigan 48161





	 	B.	 	Seller:




Chief Executive Office

500 North Field Drive

Lake Forest, IL 60045




	 	 	 
	Federal Employer Identification Number:
	 	 
	 
	 	 
	A. Tenneco Operating:

	 	74-1933558
	B. Seller:

	 	76-0589054
	 
	 	 
	Prior Legal Names (in past 5 years):
	 	 
	 
	 	 
	A. Tenneco Operating:

	 	Monroe Auto Equipment Company
	 

	 	Tenneco Automotive Inc.
	B. Seller:

	 	n/a
	 
	 	 
	Trade and Assumed Names:
	 	 
	 
	 	 
	A. Tenneco Operating:

	 	EZ Ride or any variation thereof
	 

	 	MAECO or any variation thereof
	 

	 	Monroe or any variation thereof
	 

	 	Walker or any variation thereof
	 

	 	Precision Modular Assembly
	 

	 	Rancho Ind or any variation thereof
	 

	 	Regal Ride or any variation thereof
	 

	 	Tenneco or any variation thereof
	 

	 	NAPA Shocks
	 

	 	DeKoven any variation thereof
	 

	 	Tennessee Gas Pipeline






72









 







	 	 	 
	 
	 	 
	 

	 	DynoMax 

NAPA Mufflers 

NAS-Walker Manufacturing
	 

	 	National Account Sales 

Performance Industries Inc. 
	 

	 	Perfection and any variation thereof 
	 

	 	Thrush and any variation thereof
	B. Seller:

	 	n/a






73









 





EXHIBIT IV




NAMES OF COLLECTION BANKS; COLLECTION ACCOUNTS




	 	 	 	 	 
	Lockbox Address	 	Related Collection Account
	 	 	[All Collections Accounts are at Bank of America,
	 	 	N.A. in Chicago, IL]
	P.O. Box 98071
	 	 	8188303123	 
	Chicago, Illinois 60693
	 	 	 	 
	P.O. Box 7498
	 	 	8188303123	 
	Chicago, Illinois 60693
	 	 	 	 
	P.O. Box 96919
	 	 	8188302831	 
	Chicago, Illinois 60693
	 	 	 	 
	P.O. Box 98738
	 	 	8188903120	 
	Chicago, Illinois 60693
	 	 	 	 
	P.O. Box 98990
	 	 	8188302034	 
	Chicago, Illinois 60693
	 	 	 	 
	P.O. Box 99584
	 	 	8188902036	 
	Chicago, Illinois 60693
	 	 	 	 
	Tenneco Automotive RSA
	 	 	8188504150	 
	Company Concentration Account
	 	 	 	 
	Tenneco Automotive RSA
	 	 	8188504150	 
	Company Investment Sweep
Account
	 	 	 	 








74












 





EXHIBIT V




FORM OF COMPLIANCE CERTIFICATE




JPMorgan Chase Bank, N.A., as Jupiter Agent



and




The Bank of Nova Scotia, as Liberty Street Agent




     Reference is hereby made to the Second Amended and Restated Receivables Purchase Agreement,
dated as of May 4, 2005, by and among Tenneco Automotive RSA Company, a Delaware corporation (the
“Seller”), Tenneco Automotive Operating Company, as Servicer, the Committed Purchasers, Jupiter
Securitization Corporation, Liberty Street Funding Corp., The Bank of Nova Scotia, New York Agency,
individually and as Jupiter Agent, and JPMorgan Chase Bank, N.A., individually as Jupiter Agent and
as Administrative Agent (the “Agreement”). Capitalized terms used herein shall have the meanings
assigned to such terms in the Agreement.



     THE UNDERSIGNED HEREBY CERTIFIES THAT:



     1. I
am the duly elected ____ of Seller.



     2. I have reviewed the terms of the Agreement and I have made, or have
caused to be made under my supervision, a detailed review of the transactions and conditions
of Seller and its Subsidiaries during the accounting period covered by the attached financial
statements.



     3. The examinations described in paragraph 2 did not disclose, and I have no
knowledge of, the existence of any condition or event which constitutes an Amortization Event
or Potential Amortization Event, as each such term is defined under the Agreement, during or
at the end of the accounting period covered by the attached financial statements or as of the
date of
this Certificate[, except as set forth in paragraph 5 below.]



     4. Schedule I attached hereto sets forth financial data and computations
evidencing the compliance with certain covenants of the Agreement, all of which data and
computations are true, complete and correct.



     [5. Described below are the exceptions, if any, to paragraph 3 by listing, in detail,
the nature of the condition or event, the period during which it has existed and the action which
Seller has taken, is taking, or proposes to take with respect to each such condition or event:]



75









 




The foregoing certifications, together with the computations set forth in
Schedule hereto and the financial statements delivered with this Certificate
in support hereof, are made and delivered this ___ day of                      , 20___.




By:                                                            




76









 





SCHEDULE I TO COMPLIANCE CERTIFICATE




     A. Schedule
of Compliance as of                     , ___ with Section 9.1(f) of
the Agreement. Unless otherwise defined herein, the terms used in this Compliance Certificate have
the meanings ascribed thereto in the Agreement.



     This schedule relates to the month ended:                                                             



77









 





EXHIBIT VI




FORM OF COLLECTION ACCOUNT AGREEMENT




[Intentionally Omitted]




78









 





EXHIBIT VII




FORM OF ASSIGNMENT AGREEMENT




[Intentionally Omitted]




79









 





EXHIBIT VIII




CREDIT AND COLLECTION POLICY




See Exhibit V to Receivables Sale Agreement




80









 





EXHIBIT IX




FORM OF DAILY REPORT




[attached]




81









 





Tenneco Automotive RSA

Daily Report




For the days ending:





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Clevite	 	 	Monroe	 	 	Walker	 	 	Total	 
	 	 	 	 	Daily Update	 	 	Daily Update	 	 	Daily Update	 	 	 	 	 
	A. Portfolio Information:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Previously reported Ending Gross Receivables Balance:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	plus:	 	New Receivables (Sales)
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 
	minus:	 	Collections
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Dilution (Non-Cash Items):
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Charge-offs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	plus:	 	EDI Timing Differences
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	plus:	 	Reconciling Entries
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Ending Gross Receivables Balance:
	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 







	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Daily Update	 	 	 	 	 	 	Daily Update	 	 	 	 	 	 	Daily Update	 	 	 	 	 	 	 	 	 	 	 	 	 
	B. Summary Aging Schedule
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Future
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	Current
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	1-30 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	31-60 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	61-90 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	91-120 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	over 121 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	EDI Timing Differences
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		####
	 	 	 
	Ending Gross Receivables Balance
	 	$	—	 	 	 	0	%	 	$	—	 	 	 	0	%	 	$	—	 	 	 	0	%	 	$	—	 	 	 		####








	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Query	 	 	Query	 	 	Query	 	 	 	 	 
	 	 	 	 	Order	 	 	Order	 	 	Order	 	 	 	 	 
	C. Calculation of Eligible Receivables:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	From A:	 	Ending Gross Receivables Balance

	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 
	Less:	 	Receivables > [61] days past due
	 	 	1	 	 	 	1	 	 	 	6	 	 	 	—	 
	(For all of the remaining, use only the amount < [60] days past due)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less:	 	Rec. from obligors with >25% of rec. 60+ days past due
	 	 	2	 	 	 	2	 	 	 	1	 	 	 	—	 
	(For all of the remaining, use only the amount < [60] days past due, not included in the cross-age)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Less:	 	Rec. w/original terms of [70-150] days in excess of [10 ]% of gross A/R
	 	 	8	 	 	 	8	 	 	 	2	 	 	 	—	 
	Less:	 	Rec. w/payment terms beyond net [150] days
	 	 	7	 	 	 	7	 	 	 	7	 	 	 	—	 
	Less:	 	Rec. payable in foreign currency (primarily CAD$)
	 	 	9	 	 	 	9	 	 	 	9	 	 	 	—	 
	Less:	 	Rec. that should have been charged-off
	 	 	11	 	 	 	11	 	 	 	12	 	 	 	—	 
	Less:	 	Rec. from obligors in bankruptcy,
	 	 	3	 	 	 	3	 	 	 	3	 	 	 	—	 
	Less:	 	Rec. from
obligors with Defaulted Rec. in prior 12 months
	 	 	10	 	 	 	10	 	 	 	13	 	 	 	—	 
	Less:	 	Rec. from obligors who are non-U.S.
	 	 	5	 	 	 	5	 	 	 	4	 	 	 	—	 
	Less:	 	Rec. from Affiliates
	 	 	14	 	 	 	14	 	 	 	14	 	 	 	—	 
	Less:	 	Rec. from government obligors
	 	 	12	 	 	 	12	 	 	 	10	 	 	 	—	 
	Less:	 	Rec. subject to dispute, claim, defense or offset
	 	 	6	 	 	 	6	 	 	 	8	 	 	 	—	 
	Less:	 	Rec. from Obligors referred to collection
	 	 	4	 	 	 	4	 	 	 	5	 	 	 	—	 
	Less:	 	Lesser of A/P or A/R for customers who are suppliers
	 	 	13	 	 	 	13	 	 	 	11	 	 	 	—	 
	Less:	 	Prototype and Tooling (net of 60 dpd)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Less:	 	Changeover/StockLifts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Eligible Receivables (“ER”):
	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 






 









 






* TA
merged companies 259 and 260 into 01 16 effective 8/2/2004.




Tenneco Automotive RSA

Daily Report




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Total	 
	D. Calculation of Net Receivables Balance:	 	 	 	 	 	 	 	 	 	 	 	 
	From C:
	 	Eligible Receivables (“ER”):	 	 	 	 	 	 	 	 	 		$  —	 
	Less:
	 	Excess Concentrations	 	 	 	 	 	 	 	 	 	 	 	 
	Less:
	 	Warranty Reserve	 	 	 	 	 	 	 	 	 	 	 	 
	Less:
	 	Pass Through Reserve	 	 	 	 	 	 	 	 	 	 	 	 
	Less:
	 	Price Give Back Reserve	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Net Receivables Balance:	 	 	 	 	 	 	 	 	 		$  —	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	E. Calculation of Available Funding Amount	 	 	 	 	 	 	 	 	 	 	 	 
	From D:
	 	Net Receivables Balance (“NRB”):	 	 	 	 	 	 	 	 	 	 	 	 
	less:
	 	Loss Reserve (minimum 18%)	 	 	 	 	 	 	18.00	%	 	 	—	 
	 
	 	Dilution Reserve	 	 	 	 	 	 	11.06	%	 	 	—	 
	 
	 	Servicing/Yield Reserve 2.0%	 	 	 	 	 	 	2.00	%	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Available Funding Amount:	 	 	 	 	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	F. Excess Concentration Computation (to D. above)	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Concentration limit	 	 	—	 	 	 	 	 	 	 	 	 






Excess Concentrations (see Note below):




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Less	 	 	 	 	 	 	Special	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Pass Through	 	 	 	 	 	 	Concentration	 	 	Excess	 
	Clevite	 	Monroe	 	Walker	 	Clevite	 	Monroe	 	Walker	 	 	Reserve	 	 	Total	 	 	Limit	 	 	Concentrations	 
	Ford
	 	Ford	 	Ford	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 	 	 	7	%	 	 	$  —	 
	 
	 	NAPA	 	NAPA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	6	%	 	 	—	 
	 
	 	Advance Stores	 	Advance Stores	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	6	%	 	 	—	 
	GM
	 	GM	 	GM	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	7	%	 	 	—	 
	 
	 	 	 	Toyota	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	7	%	 	 	—	 
	Chrysler
	 	Chrysler	 	Chrysler	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	7	%	 	 	—	 
	 
	 	Nissan	 	Nissan	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	6	%	 	 	—	 
	 
	 	Ozark Automotive	 	Ozark Automotive	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	6	%	 	 	—	 
	 
	 	 	 	Honda	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	6	%	 	 	—	 
	 
	 	CSK	 	CSK	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	6	%	 	 	—	 
	 
	 	Sears	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	7	%	 	 	—	 
	 
	 	Uni-Select	 	Uni-Select	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	6	%	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$—	 	$—	 	$	—	 	 	$	—	 	 	$	—	 	 	 	 	 	 		$  —	 





G. Compliance




	 	 	 	 	 
	4.
Aggregate Receivable Interests ≤ 100%
	 	 	 	 
	(a) Aggregate Capital Outstanding
	 	$	90,000,000	 
	(b) Aggregate Reserves
	 	$	 	 
	(c) Net Receivables Balance
	 	$	 	 
	(d) (a+b)/c
	 	#DIV/0!
	 
	 	 	 	 
	5. Increase (decrease) in Capital:
	 	 	 	 
	(a) Maximum supportable Capital (Max $90 million)
	 	$	 	 
	(b) Aggregate Capital Outstanding
	 	$	90,000,000	 
	(c) Additional Funding Available
	 	$	 	 
	Liberty Street
	 	 	 	 
	Falcon
	 	 	 	 
	(d) Requested Increase in Capital
	 	$-          Check:
	Liberty Street
	 	 	 	 
	Falcon
	 	 	 	 
	(e) Required Paydown
	 	$	 	 
	Liberty Street
	 	 	 	 
	Falcon
	 	 	 	 
	(f) Requested Paydown (rounded)
	 	$	(13,500,000	)
	Liberty Street
	 	 	 	 
	Falcon
	 	 	 	 
	(g) Capital Outstanding post-settlement
	 	$	76,500,000	 





The undersigned hereby represents and warrants that the foregoing is a true and accurate accounting in
accordance with the Receivables Purchase Agreement dated as of October 31, 2000 and that all
representations and warranties are restated and reaffirmed.




2









 








Tenneco Automotive RSA

Daily Report




	 	 	 	 	 
	Signed by:	 	 
	 

	 	 

Kathy Lukas
	 	 
	 

	 	Risk Manager	 	 







3











 





EXHIBIT IX




FORM OF MONTHLY REPORT




[attached]




82









 





Tenneco Automotive RSA

Monthly Report




     For the month ending:




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Clevite	 	 	 	 	Monroe	 	 	 	 	Walker	 	 	 	 	Total	 
	A. Portfolio Information:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Previous Months Ending Gross Receivables Balance:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 
	plus:	 	New Receivables (Sales)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Collections
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Dilution (Non-Cash Items):
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Expected Dilutive Items
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Ineligible items
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	minus:	 	Charge off
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	plus:	 	EDI Timing differences
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	plus:	 	Reconciling Entries
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Ending Gross Receivables Balance:
	 	$	—	 	 	 	 	$	—	 	 	 	 	$	—	 	 	 	 	$	—	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	B. Summary Aging Schedule	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Future
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	1-30 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	31-60 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	61-90 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	91-120 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	over 121 days past due
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	EDI Timing differences
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Reconciling Items
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Ending Gross Receivables Balance
	 	$	—	 	 	 	 	$	—	 	 	 	 	$	—	 	 	 	 	$	—	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	Query	 	 	 	 	 	Query	 	 	 	 	 	Query	 	 	 	 
	 	 	 
	 	 	 	 	 	Order	 	 	 	 	 	Order	 	 	 	 	 	Order	 	 	 	 
	C. Calculation of Eligible Receivables:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	From A:	 	Ending Gross Receivables Balance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	—	 
	Less:	 	Receivables > [61] days past due
	 	 	 	 	 	6	 	 	 	 	 	6	 	 	 	 	 	6	 	 	—	 
	(For all of the remaining, use only the amount < [60] days past due)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Less:	 	Rec. from obligors with >25% of rec. 60+ days past due
	 	 	 	 	 	1	 	 	 	 	 	1	 	 	 	 	 	1	 	 	—	 
	(For all of the remaining, use only the amount <
[60] days past due, not included in the cross-age)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Less:	 	Rec. w/original terms of [70—150] days in excess
of [10 ]% of gross A/R
	 	 	 	 	 	2	 	 	 	 	 	2	 	 	 	 	 	2	 	 	—	 
	Less:	 	Rec. w/payment terms beyond net [150] days
	 	 	 	 	 	7	 	 	 	 	 	7	 	 	 	 	 	7	 	 	—	 
	Less:	 	Rec. payable in foreign currency (primarily CAD$)
	 	 	 	 	 	9	 	 	 	 	 	9	 	 	 	 	 	9	 	 	—	 
	Less:	 	Rec. that should have been charged-off
	 	 	 	 	 	12	 	 	 	 	 	12	 	 	 	 	 	12	 	 	—	 
	Less:	 	Rec. from obligors in bankruptcy,
	 	 	 	 	 	3	 	 	 	 	 	3	 	 	 	 	 	3	 	 	—	 
	Less:	 	Rec. from obligors with Defaulted Rec. in prior 12 months
	 	 	 	 	 	13	 	 	 	 	 	13	 	 	 	 	 	13	 	 	—	 
	Less:	 	Rec. from obligors who are non-U.S.
	 	 	 	 	 	4	 	 	 	 	 	4	 	 	 	 	 	4	 	 	—	 
	Less:	 	Rec. from Affiliates
	 	 	 	 	 	14	 	 	 	 	 	14	 	 	 	 	 	14	 	 	—	 
	Less:	 	Rec. from government obligors
	 	 	 	 	 	10	 	 	 	 	 	10	 	 	 	 	 	10	 	 	—	 
	Less:	 	Rec. subject to dispute, claim, defense or offset
	 	 	 	 	 	8	 	 	 	 	 	8	 	 	 	 	 	8	 	 	—	 
	Less:	 	Rec. from Obligors referred to collection
	 	 	 	 	 	5	 	 	 	 	 	5	 	 	 	 	 	5	 	 	—	 
	Less:	 	Lesser of A/P or A/R for customers who are suppliers
	 	 	 	 	 	11	 	 	 	 	 	11	 	 	 	 	 	11	 	 	—	 
	Less:	 	Prototype and Tooling (net of 60 dpd)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Less:	 	Changeover/StockLifts
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Eligible Receivables (“ER”):
	 	$	—	 	 	 	 	$	—	 	 	 	 	$	—	 	 	 	 	$	—	 






 









 






Tenneco Automotive RSA

Monthly Report




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Total	 
	D. Calculation of Net Receivables Balance:	 	 	 	 	 	 	 	 	 	 	 	 
	From C:	 	Eligible Receivables (“ER”):
	 	 	 	 	 	 	 	 	 	$	—	 
	Less:	 	Excess Concentrations
	 	 	 	 	 	 	 	 	 	 	—	 
	Less:	 	Warranty Reserve
	 	 	 	 	 	 	 	 	 	#REF!
	Less:	 	Pass Through Reserve
	 	 	 	 	 	 	 	 	 	#REF!
	Less:	 	Price Give Back Reserve
	 	 	 	 	 	 	 	 	 	 	(596,063	)
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Net Receivables Balance:
	 	 	 	 	 	 	 	 	 	#REF!
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	E. Calculation of Available Funding Amount	 	 	 	 	 	 	 	 	 	 	 	 
	From D:	 	Net Receivables Balance (“NRB”):
	 	 	 	 	 	 	 	 	 	 	 	 
	less:	 	Loss Reserve (minimum 18%)
	 	 	 	 	 	#REF!	 	#REF!
	 	 	Dilution Reserve
	 	 	 	 	 	#REF!	 	#REF!
	 	 	Servicing/Yield Reserve 2.0%
	 	 	 	 	 	 	2.00	%	 	#REF!
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Available Funding Amount:
	 	 	 	 	 	 	 	 	 	#REF!
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	F. Excess Concentration Computation (to D, above)	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Concentration limit
	 	#REF!	 	 	 	 	 	 	 	 






Excess Concentrations (see Note below):




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Less	 	 	 	 	 	 	Special	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Pass Through	 	 	 	 	 	 	Concentration	 	 	Excess	 
	Clevite	 	Monroe	 	Walker	 	Clevite	 	 	Monroe	 	 	Walker	 	 	Reserve	 	 	Total	 	 	Limit	 	 	Concentrations	 
	Ford
	 	Ford	 	Ford	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	NAPA	 	NAPA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Advance Stores	 	Advance Stores	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GM
	 	GM	 	GM	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Toyota	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chrysler
	 	Chrysler	 	Chrysler	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Nissan	 	Nissan	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Ozark Automotive	 	Ozark Automotive	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Honda	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	CSK	 	CSK	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Sears	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Uni-Select	 	Uni-Select	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	 	 	 	 	$	—	 







 









 






Tenneco Automotive RSA

Monthly Report





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	2 Months Prior	 	 	Prior Month	 	 	Current Month	 	 	3 Month Average	 	 	 	 	 
	G. Compliance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1. Loss to Liquidation Ratio: Three Month
Average must be less than
	 	 	4.00	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	a)     Receivables 61-90 dpd
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	b)     Write-offs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	c)     Sum of a + b
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	d)     Collections
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	(e)          Loss to Liquidation Ratio = (c)/(d)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	#DIV/0!	 	#DIV/0!
	 
	2. Delinquencies: Must be less than
	 	 	12.50	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(a)     Receivables 61-90 dpd
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(b)     Receivables 91+ dpd
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(c) =(a)+ Sum of ABOVE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(d)     Gross Receivables
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(e)          Delinquency Ratio (c)/(d)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3. Dilution Ratio: Must be less than
	 	 	3.50	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(a)     Dilution
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(b)     Prior Month Sales
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(e)          Dilution Ratio (a)/(b)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4. Purchaser Interest ≤ 100%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(a)          Aggregate Capital Outstanding as of Month End
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(b)          Aggregate Reserves
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(c)          Net Receivables Balance
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(d)          a/(c-b)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5. Increase (decrease) in Capital:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(a) Maximum supportable Capital (Max $90 million)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(b) Aggregate Capital Outstanding as of Reporting Date
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(c) Requested Increase in Capital
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Liberty Street
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Falcon
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(d) Required Paydown
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Liberty Street
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Falcon
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(e) Voluntary Paydown (rounded)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Liberty Street
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	     Falcon
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(f) Capital Outstanding post-settlement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 





The undersigned hereby represents and warrants that the foregoing
is a true and accurate accounting in accordance with the
Receivables Purchase Agreement dated as of October 31, 2000 and
that all representations and warranties are restated and
reaffirmed.




 









 








Tenneco Automotive RSA

Monthly Report




	 	 	 	 	 
	Signed by:
	 	 	 	 
	 

	 	 

Gary Silha
	 	 
	 

	 	Assistant Treasurer	 	 






 









 





EXHIBIT XI




FORM OF PERFORMANCE UNDERTAKING




THIRD AMENDED AND RESTATED PERFORMANCE UNDERTAKING




          THIS THIRD AMENDED AND RESTATED PERFORMANCE UNDERTAKING (this “Undertaking”), dated as of May
4, 2005, is executed by Tenneco Automotive Inc., a Delaware corporation (the “Performance
Guarantor”) in favor of Tenneco Automotive RSA Company, a Delaware corporation (together with its
successors and assigns, “Recipient”), and amends and restates in its entirety that certain Second
Amended and Restated Performance Undertaking dated as of January 31, 2003 by the Performance
Guarantor in favor of the Recipient.




RECITALS




	1.	 	Tenneco Automotive Operating Company, a Delaware corporation (“Tenneco Operating”), and
Recipient have entered into a Receivables Sale Agreement, dated as of October 31, 2000, and
The Pullman Company, a Delaware corporation (“Pullman”), and Recipient have entered into a
Receivables Sale Agreement, dated as of December 27, 2000 (each of the foregoing, as amended,
restated or otherwise modified from time to time, a “Sale Agreement” and collectively, the
“Sale Agreements”), pursuant to which Tenneco Operating or Pullman, as the case may be, is
selling and/or contributing its right, title and interest in its accounts receivable to
Recipient subject to the terms and conditions contained therein.






	2.	 	Performance Guarantor owns, directly or indirectly, one hundred percent (100%) of the capital
stock of Tenneco Operating, Pullman and Recipient, and each of Tenneco Operating and Pullman
(and, accordingly, Performance Guarantor) is expected to receive substantial direct and
indirect benefits from their sale or contribution of receivables to Recipient pursuant to the
Sale Agreements (which benefits are hereby acknowledged).






	3.	 	As an inducement for Recipient to acquire Pullman’s accounts receivable, and to continue to
acquire Tenneco Operating’s accounts receivable, pursuant to the Sale Agreements, Performance
Guarantor has agreed to guaranty the due and punctual performance by each of Tenneco Operating
and Pullman of its obligations under the applicable Sale Agreement, as well as Tenneco
Operating’s Servicing Related Obligations (as hereinafter defined).






	4.	 	Performance Guarantor wishes to guaranty the due and punctual performance by (a) Tenneco
Operating of its obligations to Recipient under or in respect of the Sale Agreement to which
Tenneco Operating is a party and its Servicing Related Obligations (as hereinafter defined),
as provided herein, and (b) Pullman of its obligations to Recipient under or in respect of the
Sale Agreement to which Pullman is a party.




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AGREEMENT




          NOW, THEREFORE, Performance Guarantor hereby agrees as follows:




          Section 1. Definitions. Capitalized terms used herein and not defined herein shall have the
respective meanings assigned thereto in the Sale Agreements or the Purchase Agreement (as
hereinafter defined). In addition:




          “Guaranteed Obligations” means, collectively: (a) all covenants, agreements, terms, conditions
and indemnities to be performed and observed by Tenneco Operating or Pullman under and pursuant to
the Sale Agreement to which it is a party and each other document executed and delivered by Tenneco
Operating or Pullman pursuant to the Sale Agreement to which it is a party, including, without
limitation, the due and punctual payment of all sums which are or may become due and owing by
Tenneco Operating or Pullman under the Sale Agreement to which it is a party, whether for fees,
expenses (including counsel fees), indemnified amounts or otherwise, whether upon any termination
or for any other reason and (b) all obligations of Tenneco Operating (i) as Servicer under the
Third Amended and Restated Receivables Purchase Agreement, dated as of May 4, 2005 by and among
Recipient, Tenneco Operating, as Servicer, Jupiter Securitization Corporation, Liberty Street
Funding Corp., the Committed Purchasers, the Bank of Nova Scotia, New York Agency, as Liberty
Street Agent and JPMorgan Chase Bank, N.A., as Jupiter Agent and Administrative Agent (as amended,
restated or otherwise modified, the “Purchase Agreement” and, together with the Sale Agreement, the
“Agreements”) or (ii) which arise pursuant to Sections 8.2, 8.3 or 14.4(a) of the Purchase
Agreement as a result of its termination as Servicer (all such obligations under this clause (b),
collectively, the “Servicing Related Obligations”).




          Section 2. Guaranty of Performance of Guaranteed Obligations. Performance Guarantor hereby
guarantees to Recipient, the full and punctual payment and performance by each of Tenneco Operating
and Pullman of its Guaranteed Obligations. This Undertaking is an absolute, unconditional and
continuing guaranty of the full and punctual performance of all Guaranteed Obligations of each of
Tenneco Operating and Pullman under the Agreements to which it is a party and each other document
executed and delivered by Tenneco Operating or Pullman pursuant to such Agreements and is in no way
conditioned upon any requirement that Recipient first attempt to collect any amounts owing by
Tenneco Operating or Pullman to Recipient, the Agents or the Purchasers from any other Person or
resort to any collateral security, any balance of any deposit account or credit on the books of
Recipient, any Agent or any Purchaser in favor of Tenneco Operating or Pullman or any other Person
or other means of obtaining payment. Should Tenneco Operating or Pullman default in the payment or
performance of any of its Guaranteed Obligations, Recipient (or its assigns) may cause the
immediate performance by Performance Guarantor of such Guaranteed Obligations and cause any payment
Guaranteed Obligations to become forthwith due and payable to Recipient (or its assigns), without
demand or notice of any nature (other than as expressly provided herein), all of which are hereby
expressly waived by Performance Guarantor. Notwithstanding the foregoing, this Undertaking is not a
guarantee of the collection of any of the Receivables and Performance Guarantor shall not be
responsible for any Guaranteed Obligations to the extent the failure to perform such Guaranteed
Obligations by Tenneco Operating or Pullman results from Receivables being uncollectible on account
of the insolvency, bankruptcy or lack of




84









 







creditworthiness of the related Obligor; provided that nothing herein shall relieve Tenneco
Operating or Pullman from performing in full its Guaranteed Obligations under the Agreements to
which it is a party or Performance Guarantor of its undertaking hereunder with respect to the full
performance of such duties.




          Section 3. Performance Guarantor’s Further Agreements to Pay. Performance Guarantor further
agrees, as the principal obligor and not as a guarantor only, to pay to Recipient (and its
assigns), forthwith upon demand in funds immediately available to Recipient, all reasonable costs
and expenses (including court costs and reasonable legal expenses) incurred or expended by
Recipient in connection with the Guaranteed Obligations, this Undertaking and the enforcement
thereof, together with interest on amounts recoverable under this Undertaking from the time when
such amounts become due until payment, at a rate of interest (computed for the actual number of
days elapsed based on a 365-, or when appropriate, 366-day year) equal to the Prime Rate plus 2%
per annum, such rate of interest changing when and as the Prime Rate changes.




          Section 4. Waivers by Performance Guarantor. Performance Guarantor waives notice of acceptance
of this Undertaking, notice of any action taken or omitted by Recipient (or its assigns) in
reliance on this Undertaking, and any requirement that Recipient (or its assigns) be diligent or
prompt in making demands under this Undertaking, giving notice of any Termination Event,
Amortization Event, other default or omission by Tenneco Operating or Pullman or asserting any
other rights of Recipient under this Undertaking. Performance Guarantor warrants that it has
adequate means to obtain from Tenneco Operating or Pullman, as the case may be, on a continuing
basis, information concerning the financial condition of Tenneco Operating or Pullman, as
applicable, and that it is not relying on Recipient to provide such information, now or in the
future. Performance Guarantor also irrevocably waives all defenses (i) that at any time may be
available in respect of the Guaranteed Obligations by virtue of any statute of limitations,
valuation, stay, moratorium law or other similar law now or hereafter in effect or (ii) that arise
under the law of suretyship, including impairment of collateral. Recipient (and its assigns) shall
be at liberty, without giving notice to or obtaining the assent of Performance Guarantor and
without relieving Performance Guarantor of any liability under this Undertaking, to deal with
Tenneco Operating and Pullman and with each other party who now is or after the date hereof becomes
liable in any manner for any of the Guaranteed Obligations, in such manner as Recipient in its sole
discretion deems fit, and to this end Performance Guarantor agrees that the validity and
enforceability of this Undertaking, including without limitation, the provisions of Section 7
hereof, shall not be impaired or affected by any of the following: (a) any extension, modification
or renewal of, or indulgence with respect to, or substitutions for, the Guaranteed Obligations or
any part thereof or any agreement relating thereto at any time; (b) any failure or omission to
enforce any right, power or remedy with respect to the Guaranteed Obligations or any part thereof
or any agreement relating thereto, or any collateral securing the Guaranteed Obligations or any
part thereof; (c) any waiver of any right, power or remedy or of any Termination Event,
Amortization Event, or default with respect to the Guaranteed Obligations or any part thereof or
any agreement relating thereto; (d) any release, surrender, compromise, settlement, waiver,
subordination or modification, with or without consideration, of any other obligation of any person
or entity with respect to the Guaranteed Obligations or any part thereof; (e) the enforceability or
validity of the Guaranteed Obligations or any part thereof or the genuineness, enforceability or
validity of any agreement relating thereto or with respect to the



85









 






Guaranteed Obligations or any part thereof; (f) the application of payments received from any
source to the payment of any payment obligations of Tenneco Operating or Pullman or any part
thereof or amounts which are not covered by this Undertaking even though Recipient (or its assigns)
might lawfully have elected to apply such payments to any part or all of the payment obligations of
Tenneco Operating or Pullman or to amounts which are not covered by this Undertaking; (g) the
existence of any claim, setoff or other rights which Performance Guarantor may have at any time
against Tenneco Operating or Pullman in connection herewith or any unrelated transaction; (h) any
assignment or transfer of the Guaranteed Obligations or any part thereof; or (i) any failure on the
part of Tenneco Operating or Pullman to perform or comply with any term of the Agreements or any
other document executed in connection therewith or delivered thereunder, all whether or not
Performance Guarantor shall have had notice or knowledge of any act or omission referred to in the
foregoing clauses (a) through (i) of this Section 4.




          Section 5. Unenforceability of Guaranteed Obligations Against Tenneco Operating or Pullman.
Notwithstanding (a) any change of ownership of Tenneco Operating or Pullman or the insolvency,
bankruptcy or any other change in the legal status of Tenneco Operating or Pullman; (b) the change
in or the imposition of any law, decree, regulation or other governmental act which does or might
impair, delay or in any way affect the validity, enforceability or the payment when due of the
Guaranteed Obligations; (c) the failure of Tenneco Operating or Pullman or Performance Guarantor to
maintain in full force, validity or effect or to obtain or renew when required all governmental and
other approvals, licenses or consents required in connection with the Guaranteed Obligations or
this Undertaking, or to take any other action required in connection with the performance of all
obligations pursuant to the Guaranteed Obligations or this Undertaking; or (d) if any of the moneys
included in the Guaranteed Obligations have become irrecoverable from Tenneco Operating or Pullman
for any other reason other than final payment in full of the payment Guaranteed Obligations in
accordance with their terms, this Undertaking shall nevertheless be binding on Performance
Guarantor. This
Undertaking shall be in addition to any other guaranty or other security for the Guaranteed
Obligations, and it shall not be rendered unenforceable by the invalidity of any such other
guaranty or security. In the event that acceleration of the time for payment of any of the
Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of Tenneco
Operating or Pullman or for any other reason with respect to Tenneco Operating or Pullman, all such
amounts then due and owing with respect to the Guaranteed Obligations under the terms of the
Agreements, or any other agreement evidencing, securing or otherwise executed in connection with
the Guaranteed Obligations, shall be immediately due and payable by Performance Guarantor.




          Section 6. Representations and Warranties. Performance Guarantor hereby represents and
warrants to Recipient that:




          (a) Existence and Standing. Performance Guarantor is a corporation duly organized, validly
existing and in good standing under the laws of its state of incorporation. Performance Guarantor
is duly qualified to do business and is in good standing as a foreign corporation, and has and
holds all corporate power and all governmental licenses, authorizations, consents and approvals
required to carry on its business in each jurisdiction in which its business




86









 







is conducted except where the failure to so qualify or so hold could not reasonably be expected to
have a Material Adverse Effect.




          (b) Authorization, Execution and Delivery; Binding Effect. The execution and delivery by
Performance Guarantor of this Undertaking, and the performance of its obligations hereunder, are
within its corporate powers and authority and have been duly authorized by all necessary corporate
action on its part. This Undertaking has been duly executed and delivered by Performance Guarantor.
This Undertaking constitutes the legal, valid and binding obligation of Performance Guarantor
enforceable against Performance Guarantor in accordance with their respective terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law).




          (c) No Conflict; Government Consent. The execution and delivery by Performance Guarantor of
this Undertaking, and the performance of its obligations hereunder do not contravene or violate (i)
its certificate or articles of incorporation or by-laws, (ii) any law, rule or regulation
applicable to it, (iii) any restrictions under any agreement, contract or instrument to which it is
a party or by which it or any of its property is bound, or (iv) any order, writ, judgment, award,
injunction or decree binding on or affecting it or its property, and do not result in the creation
or imposition of any Adverse Claim on assets of Performance Guarantor or its Subsidiaries (except
as created hereunder) except, in any case, where such contravention or violation could not
reasonably be expected to have a Material Adverse Effect.




          (d) Financial Statements. The consolidated financial statements of Performance Guarantor and
its consolidated Subsidiaries dated as of December 31, 2004 and March 31, 2005 heretofore delivered
to Recipient have been prepared in accordance with generally accepted accounting principles
consistently applied and fairly present in all material respects the consolidated financial
condition and results of operations of Performance Guarantor and its consolidated Subsidiaries as
of such dates and for the periods ended on such dates. Since the later of (i) December 31, 2004 and
(ii) the last time this representation was made or deemed made, no event has occurred which would
or could reasonably be expected to have a Material Adverse Effect.




          (e) Taxes. Performance Guarantor has filed all United States federal tax returns and all other
tax returns which are required to be filed and have paid all taxes due pursuant to said returns or
pursuant to any assessment received by Performance Guarantor or any of its Subsidiaries, except
such taxes, if any, as are being contested in good faith and as to which adequate reserves have
been provided. No federal or state tax liens have been filed and no claims are being asserted with
respect to any such taxes. The charges, accruals and reserves on the books of Performance Guarantor
in respect of any taxes or other governmental charges are adequate.




          (f) Litigation and Contingent Obligations. Except as disclosed in the filings made by
Performance Guarantor with the Securities and Exchange Commission, there are no actions, suits or
proceedings pending or, to the best of Performance Guarantor’s knowledge threatened against or
affecting Performance Guarantor or any of its properties, in or before any



87









 






court, arbitrator or other body, that could reasonably be expected to have a material adverse
effect on (i) the business, properties, condition (financial or otherwise) or results of operations
of Performance Guarantor and its Subsidiaries taken as a whole, (ii) the ability of Performance
Guarantor to perform its obligations under this Undertaking, or (iii) the validity or
enforceability of any of this Undertaking or the rights or remedies of Recipient hereunder.
Performance Guarantor does not have any material Contingent Obligations not provided for or
disclosed in the financial statements referred to in Section 6(d).




          Section 7. Subrogation; Subordination. Notwithstanding anything to the contrary contained
herein, until the Guaranteed Obligations are paid in full Performance Guarantor: (a) will not
enforce or otherwise exercise any right of subrogation to any of the rights of Recipient, any Agent
or any Purchaser against Tenneco Operating or Pullman, (b) hereby waives all rights of subrogation
(whether contractual, under Section 509 of the United States Bankruptcy Code, at law or in equity
or otherwise) to the claims of Recipient, the Agents and the Purchasers against Tenneco Operating
or Pullman and all contractual, statutory or legal or equitable rights of contribution,
reimbursement, indemnification and similar rights and “claims” (as that term is defined in the
United States Bankruptcy Code) which Performance Guarantor might now have or hereafter acquire
against Tenneco Operating or Pullman that arise from the existence or performance of Performance
Guarantor’s obligations hereunder, (c) will not claim any setoff, recoupment or counterclaim
against Tenneco Operating or Pullman in respect of any liability of Performance Guarantor to
Tenneco Operating or Pullman and (d) waives any benefit of and any right to participate in any
collateral security which may be held by Beneficiaries, the Agents or the Purchasers. The payment
of any amounts due with respect to any indebtedness of Tenneco Operating or Pullman now or
hereafter owed to Performance Guarantor is hereby subordinated to the prior payment in full of all
of the Guaranteed Obligations. Performance Guarantor agrees that, after the occurrence of any
default in the payment or performance of any of the Guaranteed Obligations, Performance Guarantor
will not demand, sue for or otherwise attempt to collect any such indebtedness of Tenneco Operating
or Pullman to Performance Guarantor until all of the Guaranteed Obligations shall have been paid
and performed in full. If, notwithstanding the foregoing sentence, Performance Guarantor shall
collect, enforce or receive any amounts in respect of such indebtedness while any Guaranteed
Obligations are still unperformed or outstanding, such amounts shall be collected, enforced and
received by Performance Guarantor as trustee for Recipient (and its assigns) and be paid over to
Recipient (or its assigns) on account of the Guaranteed Obligations without affecting in any manner
the liability of Performance Guarantor under the other provisions of this Undertaking. The
provisions of this Section 7 shall be supplemental to and not in derogation of any rights and
remedies of Recipient under any separate subordination agreement which Recipient may at any time
and from time to time enter into with Performance Guarantor.




     Section 8. Termination of Performance Undertaking. Performance Guarantor’s obligations
hereunder shall continue in full force and effect until all Aggregate Unpaids are finally paid and
satisfied in full and the Purchase Agreement is terminated, provided that this Undertaking shall
continue to be effective or shall be reinstated, as the case may be, if at any time payment or
other satisfaction of any of the Guaranteed Obligations is rescinded or must otherwise be restored
or returned upon the bankruptcy, insolvency, or reorganization of Tenneco Operating or Pullman or
otherwise, as though such payment had not been made or other satisfaction occurred, whether or not
Recipient (or its assigns) is in possession of this



88









 




Undertaking. No invalidity, irregularity or unenforceability by reason of the federal bankruptcy
code or any insolvency or other similar law, or any law or order of any government or agency
thereof purporting to reduce, amend or otherwise affect the Guaranteed Obligations shall impair,
affect, be a defense to or claim against the obligations of Performance Guarantor under this
Undertaking.




          Section 9. Effect of Bankruptcy. This Performance Undertaking shall survive the insolvency of
Tenneco Operating or Pullman and the commencement of any case or proceeding by or against Tenneco
Operating or Pullman under the federal bankruptcy code or other federal, state or other applicable
bankruptcy, insolvency or reorganization statutes. No automatic stay under the federal bankruptcy
code with respect to Tenneco Operating or Pullman or other federal, state or other applicable
bankruptcy, insolvency or reorganization statutes to which Tenneco Operating or Pullman is subject
shall postpone the obligations of Performance Guarantor under this Undertaking.




          Section 10. Setoff. Regardless of the other means of obtaining payment of any of the
Guaranteed Obligations, Recipient (and its assigns) is hereby authorized at any time and from time
to time, without notice to Performance Guarantor (any such notice being expressly waived by
Performance Guarantor) and to the fullest extent permitted by law, to set off and apply any
deposits and other sums against the obligations of Performance Guarantor under this Undertaking,
whether or not Recipient (or any such assign) shall have made any demand under this Undertaking and
although such obligations may be contingent or unmatured.




          Section 11. Taxes. All payments to be made by Performance Guarantor hereunder shall be made
free and clear of any deduction or withholding. If Performance Guarantor is required by law to make
any deduction or withholding on account of tax or otherwise from any such payment, the sum due from
it in respect of such payment shall be increased to the extent necessary to ensure that, after the
making of such deduction or withholding, Recipient receive a net sum equal to the sum which they
would have received had no deduction or withholding been made.




          Section 12. Further Assurances. Performance Guarantor agrees that it will from time to time,
at the request of Recipient (or its assigns), provide information relating to the business and
affairs of Performance Guarantor as Recipient may reasonably request.
Performance Guarantor also agrees to do all such things and execute all such documents as Recipient
(or its assigns) may reasonably consider necessary or desirable to give full effect to this
Undertaking and to perfect and preserve the rights and powers of Recipient hereunder.




          Section 13. Successors and Assigns. This Performance Undertaking shall be binding upon
Performance Guarantor, its successors and permitted assigns, and shall inure to the benefit of and
be enforceable by Recipient and its successors and assigns. Performance Guarantor may not assign or
transfer any of its obligations hereunder without the prior written consent of each of Recipient
and the Agents. Without limiting the generality of the foregoing sentence, Recipient may assign or
otherwise transfer the Agreements, any other documents executed in connection therewith or
delivered thereunder or any other agreement or note held by them evidencing, securing or otherwise
executed in connection with the Guaranteed Obligations, or sell participations in any interest
therein, to any other entity or other person, and such other




89









 







entity or other person shall thereupon become vested, to the extent set forth in the agreement
evidencing such assignment, transfer or participation, with all the rights in respect thereof
granted to the Beneficiaries herein.




          Section 14. Amendments and Waivers. No amendment or waiver of any provision of this
Undertaking nor consent to any departure by Performance Guarantor therefrom shall be effective
unless the same shall be in writing and signed by Recipient, the Agents and Performance Guarantor.
No failure on the part of Recipient to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other right.




          Section 15. Notices. All notices and other communications provided for hereunder shall be made
in writing and shall be addressed as follows: if to Performance Guarantor, at the address set forth
beneath its signature hereto, and if to Recipient, at the addresses set forth beneath its signature
hereto, or at such other addresses as each of Performance Guarantor or any Recipient may designate
in writing to the other. Each such notice or other communication shall be effective (1) if given by
telecopy, upon the receipt thereof, (2) if given by mail, three (3) Business Days after the time
such communication is deposited in the mail with first class postage prepaid or (3) if given by any
other means, when received at the address specified in this Section 15.




          Section 16. GOVERNING LAW. THIS UNDERTAKING SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.




          Section 17. CONSENT TO JURISDICTION. EACH OF PROVIDER AND RECIPIENT HEREBY IRREVOCABLY SUBMITS
TO THE NON-EXCLUSIVE
JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN CHICAGO IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS UNDERTAKING, THE AGREEMENTS OR ANY OTHER DOCUMENT
EXECUTED IN CONNECTION THEREWITH OR DELIVERED
THEREUNDER AND EACH OF PROVIDER AND RECIPIENT HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.




          Section 18. Bankruptcy Petition. Performance Guarantor hereby covenants and agrees that, prior
to the date that is one year and one day after the payment in full of all outstanding senior
Indebtedness of each Conduit, it will not institute against, or join any other Person in
instituting against, such Conduit any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the laws of the United States or any
state of the United States.




90









 








          Section 19. Miscellaneous. This Undertaking constitutes the entire agreement of Performance
Guarantor with respect to the matters set forth herein. The rights and remedies herein provided are
cumulative and not exclusive of any remedies provided by law or any other agreement, and this
Undertaking shall be in addition to any other guaranty of or collateral security for any of the
Guaranteed Obligations. The provisions of this Undertaking are severable, and in any action or
proceeding involving any state corporate law, or any state or federal bankruptcy, insolvency,
reorganization or other law affecting the rights of creditors generally, if the obligations of
Performance Guarantor hereunder would otherwise be held or determined to be avoidable, invalid or
unenforceable on account of the amount of Performance Guarantor’s liability under this Undertaking,
then, notwithstanding any other provision of this Undertaking to the contrary, the amount of such
liability shall, without any further action by Performance Guarantor or Recipient, be automatically
limited and reduced to the highest amount that is valid and enforceable as determined in such
action or proceeding. Any provisions of this Undertaking which are prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction. Unless otherwise specified, references herein to “Section” shall mean a
reference to sections of this Undertaking.




<signature page follows>





91









 








          IN WITNESS WHEREOF, Performance Guarantor has caused this Undertaking to be executed and
delivered as of the date first above written.




	 	 	 	 	 	 	 
	 	 	TENNECO AUTOMOTIVE INC., a Delaware


corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 






	 	 	 	 	 	 	 
	 	 	Address for Notices:
	 
	 	 	 	 	500 North Field Drive
	 	 	 	 	Lake Forest, IL 60045
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:



	 	John E. Kunz


	 

	 	 	 	
Phone:

	 	
(847) 482-5163

	 

	 	 	 	

Fax:
	 	

(847) 482-5125






92









 






SCHEDULE A




COMMITMENTS OF COMMITTED PURCHASERS




	 	 	 	 	 	 	 
	Group	 	Committed Purchaser	 	Commitment
	Jupiter Group
	 	JPMorgan Chase Bank, N.A.	 	$	51,000,000	 
	Liberty Street Group
	 	The Bank of Nova Scotia, New  York Agency	 	$	40,800,000	 






93









 






SCHEDULE B




DOCUMENTS TO BE DELIVERED TO THE ADMINISTRATIVE AGENT




ON OR PRIOR TO THE EFFECTIVENESS OF THE SECOND AMENDED AND




RESTATED PURCHASE AGREEMENT



1. Second Amended and Restated Receivables Purchase Agreement, dated as of May 4,
2005 (the “Purchase Agreement”), among Tenneco Automotive RSA Company, a Delaware corporation, as
seller (“TARSAC”), Tenneco Automotive Operating Company Inc., a Delaware corporation (“Tenneco
Operating”), as initial servicer, Jupiter Securitization Corporation, Liberty Street Funding Corp.,
the Committed Purchasers party thereto, The Bank of Nova Scotia, New York Agency, as Liberty Street
Agent and JPMorgan Chase Bank, N.A., as Jupiter Agent and Administrative Agent.



2. Sixth Amended and Restated Fee Letter dated May 4, 2005 among the Agents and
TARSAC.



3. Reliance letters in favor of Liberty Street, Scotiabank and the Liberty Street Agent with
respect to each of the opinions of counsel previously rendered in connection with the Existing
Agreement and the Receivables Sale Agreement.



4. Third Amended and Restated Performance Undertaking dated May 4, 2005 by Tenneco
Automotive Inc., a Delaware corporation (“Tenneco Automotive”) in favor of TARSAC and its assigns
(the “Performance Undertaking”).



5. Monthly Report as of March 31, 2005.



6. Jupiter Liquidity Agreement.



7. Liberty Street Liquidity Agreement.





94











 





AMENDMENT
NO. 1 TO SECOND AMENDED AND RESTATED RECEIVABLES
PURCHASE AGREEMENT



          THIS AMENDMENT
NO. 1 TO SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as
of July 11, 2005 (this “Amendment”), is by and among:


     (a) Tenneco Automotive RSA
Company, a Delaware corporation (“Seller”),


     (b) Tenneco Automotive Operating Company Inc., a Delaware corporation,
as initial Servicer (together with Seller, the “Seller
Parties”),


     (c) Jupiter Securitization Corporation, a Delaware corporation
(“Jupiter” or a
“Conduit”), and Liberty Street Funding Corp., a Delaware
corporation (“Liberty Street” or a
“Conduit”),


     (d) The Bank of Nova Scotia, a Canadian chartered bank acting through its New York Agency,
individually (together with Liberty Street, the “Liberty
Street Group”), and in its capacity as
agent for the Liberty Street Group (a
“Co-Agent”),


     (e) JPMorgan Chase, individually (the “Jupiter Committed Purchaser” and, together
with Jupiter, the “Jupiter Group”), in its capacity as agent for the Jupiter Group (a
“Co-Agent”), and in its capacity as administrative agent for the Jupiter Group, the
Liberty Street Group and each Co-Agent (in such capacity, together with its successors
and assigns, the “Administrative Agent” and, together with each of the Co-Agents, the
“Agents”),


W
I T N E S S E T H:


     WHEREAS, the Seller Parties, the Liberty Street Group, the Jupiter Group and
the Agents are parties to that certain Second Amended and Restated Receivables
Purchase Agreement dated as of May 4, 2005, as heretofore amended (the
“Agreement”); and


     WHEREAS, the parties wish to amend the Agreement on the terms and subject to
the conditions hereinafter set forth;


          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:


          1. Defined Terms. Capitalized terms used herein and not otherwise defined
shall have their meanings as attributed to such terms in the Agreement.


 








 





          2. Amendments.




          2.1. Each of the following definitions in the Agreement is hereby amended and restated in its
entirety to read, respectively, as follows:





     “Concentration Limit” means, at any time, for any Obligor, 6% (7% if conditions
are such that the Loss Reserve Floor is 21%) of the aggregate Outstanding Balance of
all Eligible Receivables after subtracting the Pass Through Reserve, the Warranty
Reserve and the Price Give Back Accrual, or such other amount (a “Special Concentration
Limit”) for such Obligor designated by the Administrative Agent; provided that in the
case of an Obligor and any Affiliate of such Obligor, the Concentration Limit shall be
calculated as if such Obligor and such Affiliate are one Obligor; and provided,
further, that the Administrative Agent may, upon not less than ten (10) Business Days’
notice to Seller, cancel any Special Concentration Limit. As of the date hereof, and
subject to cancellation as described above, any Obligor and its Affiliates shall have a
Special Concentration Limit equal to 7% of aggregate Outstanding Balance of all
Eligible Receivables after subtracting the Pass Through Reserve, the Warranty Reserve
and the Price Give Back Accrual, so long as such Obligor’s long term debt ratings equal
or exceed “BBB-” from Standard & Poor’s, a division of the McGraw-Hill Companies
(“S&P”) and “Baa3” from Moody’s
Investors Service, Inc. (“Moody’s”).



     “Percentage” means 56.52173% for the Jupiter Group and 43.47827% for the Liberty
Street Group, which percentages shall be adjusted to give effect to the terms and
provisions of Section 2.2. Notwithstanding the foregoing, for purposes of the initial
Purchase on July 11, 2005, the applicable Percentage for the Liberty Street Group shall
be decreased, and the applicable Percentage for the Jupiter Group shall be increased,
such that after giving effect to such initial Purchase, the outstanding Capital from
each Group shall be 56.52173% for the Jupiter Group and 43.47827% for the Liberty
Street Group.




     “Purchase
Limit” means $115,000,000.


     2.2.
The table in Schedule A to the Agreement is hereby amended and restated in its
entirety to read as follows:



	 	 	 	 	 	 	 
	Group	 	Committed Purchaser	 	Commitment
	Jupiter Group
	 	JPMorgan Chase Bank, N.A.	 	$	65,000,000	 
	Liberty Street Group
	 	The Bank of Nova Scotia, 
New York Agency	 	$	50,000,000	 





          3. Certain Representations. In order to induce the Agents and the Purchasers to
enter into this Amendment, each of the Seller Parties hereby represents and warrants to the Agents
and the Purchasers that, both before and after giving effect to the amendments contained


2








 







in Section 2 hereof, (a) no Amortization Event or Potential Amortization Event exists and is
continuing as of the Effective Date (as defined in Section 4 below), (b) the Agreement, as amended
hereby, constitutes the legal, valid and binding obligations of such Seller Party enforceable
against such Seller Party in accordance with its terms, except as such enforcement may be limited
by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting
creditors’ rights generally and by general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law and (c) each of such Seller Party’s representations
and warranties contained in this Agreement is true and correct as of the Effective Date as though
made on such date (except for such representations and warranties that speak only as of an earlier
date).




          4.
Effective Date. This Amendment shall become effective as of the date first above
written (the “Effective Date”) upon receipt by the Administrative Agent of counterparts of this
Amendment, duly executed by each of the parties hereto, and consented to by the Performance
Guarantor in the space provided below.




          5. Ratification. Except as expressly modified hereby, the Agreement, as amended
hereby, is hereby ratified, approved and confirmed in all respects.




          6. Reference to Agreement. From and after the Effective Date hereof, each reference in
the Agreement to “this Agreement”, “hereof”, or “hereunder” or words of like import, and all
references to the Agreement in any and all agreements, instruments, documents, notes, certificates
and other writings of every kind and nature shall be deemed to mean the Agreement, as amended by
this Amendment.




          7. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees, and
out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the
Agents, which attorneys may be employees of an Agent) incurred by the Agent in connection with the
preparation, execution and enforcement of this Amendment.




          8. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.




          9. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.




3








 




          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.



	 	 	 	 	 
	JUPITER SECURITIZATION CORPORATION	 	 
	 
	 	 	 	 
	By:
	 	/s/ John M. Kuhns 	 	 
	 

	 	 

Authorized Signatory
	 	 





JPMORGAN CHASE BANK, N.A.,
as a Committed Purchaser, as Jupiter Agent and as Administrative
Agent



	 	 	 	 	 
	By:
	 	/s/ John M. Kuhns 	 	 
	 

	 	 	 	 
	Name:

	 	John M. Kuhns	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	LIBERTY STREET FUNDING CORP.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Bernard J. Angelo	 	 
	 
	 	 	 	 
	Name:
	 	Bernard J. Angelo	 	 
	Title:
	 	Vice President	 	 





4








 





THE BANK OF NOVA SCOTIA,
 as a Committed Purchaser and as Liberty Street Agent



	 	 	 	 	 
	By:
	 	/s/ Norman Last 	 	 
	 

	 	 	 	 
	Name:

	 	Norman Last	 	 
	Title:

	 	Managing Director	 	 





5








 




TENNECO AUTOMOTIVE RSA COMPANY, a Delaware corporation



	 	 	 	 	 
	By:

	 	/s/ John E. Kunz 	 	 
	 

	 	 	 	 
	Name:

	 	John E. Kunz	 	 
	Title:

	 	President and Treasurer	 	 
	 
	 	 	 	 





TENNECO AUTOMOTIVE OPERATING COMPANY INC.,

a Delaware corporation




	 	 	 	 	 
	By:

	 	/s/ Gary Silha 	 	 
	 

	 	 	 	 
	Name:

	 	Gary Silha	 	 
	Title:

	 	Assistant Treasurer	 	 





By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered and in full force and effect:




	 	 	 	 	 
	TENNECO AUTOMOTIVE INC., a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ John E. Kunz 	 	 
	 

	 	 	 	 
	Name:

	 	John E. Kunz	 	 
	Title:

	 	Vice President and Treasurer	 	 





6








 




OMNIBUS AMENDMENT NO. 1


AMENDMENT NO. 1 TO RECEIVABLES SALE AGREEMENTS AND

AMENDMENT NO. 2 TO SECOND AMENDED AND RESTATED RECEIVABLES

PURCHASE AGREEMENT


          THIS OMNIBUS AMENDMENT NO. 1, dated as of September 21, 2005
(this “Amendment”), is by and among:


     (a) Tenneco Automotive RSA Company, a Delaware
corporation (“Seller”),


     (b) The Pullman Company,
a Delaware corporation (“Pullman”),


     (c)
Tenneco Automotive Operating Company Inc., a Delaware corporation, as initial
Servicer (“Tenneco Operating” and, together with Seller and Pullman,
the “Companies”),


     (c)
Jupiter Securitization Corporation, a Delaware corporation (“Jupiter” or
a “Conduit”), and Liberty Street Funding Corp., a Delaware corporation
(“Liberty Street” or a
“Conduit”),


     (d)
The Bank of Nova Scotia, a Canadian chartered bank acting through its
New York Agency, individually (together with Liberty Street, the “Liberty Street
Group”), and in its capacity as agent for the Liberty Street Group (a
“Co-Agent”),


     (e)
JPMorgan Chase, individually (the “Jupiter Committed Purchaser” and, together
with Jupiter, the “Jupiter Group”), in its capacity as agent for the Jupiter Group (a
“Co-Agent”), and in its capacity as administrative agent for the Jupiter Group, the
Liberty Street Group and each Co-Agent (in such capacity, together with its successors
and assigns, the “Administrative Agent” and, together with each of the Co-Agents, the
“Agents”).


W
I T N E S S E T H:


     WHEREAS, Tenneco Operating and Seller are parties to that certain Receivables
Sale Agreement, dated as of October 31, 2000, between Tenneco Operating, as seller,
and Seller, as purchaser, and Pullman and Seller are parties to that certain
Receivables Sale Agreement, dated as of December 27, 2000, between Pullman, as seller,
and Seller, as purchaser (collectively, the “Receivables
Sale Agreements”); and


     WHEREAS, Seller, Tenneco Operating, the Liberty Street Group, the Jupiter
Group and the Agents are parties to that certain Second Amended and



 








 




Restated Receivables Purchase Agreement dated as of May 4, 2005, as heretofore amended
(the “Receivables Purchase Agreement” and, together with the Receivable Sale
Agreements, the “Agreements”); and


     WHEREAS, the parties wish to amend the Agreements on the terms and subject to the
conditions hereinafter set forth;


          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:


          1.
Defined Terms. Capitalized terms used herein and not otherwise defined shall have
their meanings as attributed to such terms in the Agreements.


          2.
Amendments.


               2.1. The definition of “Receivable” in the Receivables Purchase
Agreement (and as incorporated by reference in the Receivables Sale Agreements) is hereby amended
and restated in its entirety to read as follows:


     “Receivable” means all indebtedness and other obligations owed to Seller or an
Originator (at the time it arises, and before giving effect to any transfer or
conveyance under a Receivables Sale Agreement or hereunder), excluding any such
indebtedness or obligations owed by any Subsidiary of Tenneco Automotive or by Delphi
Corporation or any of its Subsidiaries, or in which Seller or an Originator has a
security interest or other interest, including, without limitation, any indebtedness,
obligation or interest constituting an account, chattel paper, instrument or general
intangible, arising in connection with the sale of goods or the rendering of services
by such Originator, and further includes, without limitation, the obligation to pay any
Finance Charges with respect thereto. Indebtedness and other rights and obligations
arising from any one transaction, including, without limitation, indebtedness and other
rights and obligations represented by an individual invoice, shall constitute a
Receivable separate from a Receivable consisting of the indebtedness and other rights
and obligations arising from any other transaction; provided further, that any
indebtedness, rights or obligations referred to in the immediately preceding sentence
shall be a Receivable regardless of whether the account debtor or Seller treats such
indebtedness, rights or obligations as a separate payment obligation.




     2.2. Each of the Agents and the Purchasers hereby consents to the sale by Seller to the
applicable Originator of all indebtedness and other obligations owing to Seller by Delphi
Corporation or any of its Subsidiaries as of September 21, 2005 together with all supporting
obligations, records, and collections with respect thereto and proceeds of the foregoing
(collectively, the “Delphi Receivable Assets”). For value received, Seller does hereby sell
and assign to the applicable Originator, and the applicable Originator does hereby purchase
and accept, all of Seller’s right, title and interest in and to the Delphi Receivable Assets
originated by such Originator.



2








 





          3.
Certain Representations. In order to induce the Agents and the Purchasers to enter
into this Amendment, each of the Companies hereby represents and warrants to the Agents and the
Purchasers that, both before and after giving effect to the amendments contained in Section 2
hereof, (a) no Amortization Event or Potential Amortization Event exists and is continuing as of
the Effective Date (as defined in Section 4 below), (b) each of the Agreements to which such
Company is a party, as amended hereby, constitutes the legal, valid and binding obligations of such
Company enforceable against such Company in accordance with its terms, except as such enforcement
may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating
to or limiting creditors’ rights generally and by general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law and (c) each of such Company’s
representations and warranties contained in each of the Agreements to which it is a party is true
and correct as of the Effective Date as though made on such date (except for such representations
and warranties that speak only as of an earlier date).




          4.
Effective Date. This Amendment shall become effective as of the date first above
written (the “Effective Date”) upon receipt by the Administrative Agent of counterparts of this
Amendment, duly executed by each of the parties hereto, and consented to by the Performance
Guarantor in the space provided below.




          5.
Ratification. Except as expressly modified hereby, the Agreements, as amended
hereby, is hereby ratified, approved and confirmed in all respects.


          6.
Reference to Agreement. From and after the Effective Date hereof, each reference in
the Agreements to “this Agreement”, “hereof”, or “hereunder” or words of like import, and all
references to the Agreements in any and all agreements, instruments, documents, notes, certificates
and other writings of every kind and nature shall be deemed to mean the Agreements, as amended by
this Amendment.




          7.
Costs and Expenses. The Seller agrees to pay all reasonable costs, fees, and
out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the
Agents, which attorneys may be employees of an Agent) incurred by the Agent in connection with the
preparation, execution and enforcement of this Amendment.




          8.
CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.


          9.
Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.


3








 




     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.


JUPITER SECURITIZATION CORPORATION


BY:
JPMorgan Chase Bank, N.A., its
attorney-in-fact



	 	 	 	 	 
	By:

	 	/s/ John Kuhns 	 	 
	 

	 	 	 	 
	Name:

	 	John Kuhns	 	 
	Title:

	 	Vice President	 	 





JPMORGAN CHASE BANK, N.A.,
as a Committed Purchaser, as Jupiter Agent and as
Administrative Agent 



	 	 	 	 	 
	By:

	 	/s/ John Kuhns 	 	 
	 

	 	 	 	 
	Name:

	 	John Kuhns	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	LIBERTY STREET FUNDING CORP.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Bernard J. Angelo	 	 
	 

	 	 	 	 
	Name:
	 	Bernard J. Angelo	 	 
	Title:
	 	Vice President	 	 





4








 




THE BANK
 OF NOVA SCOTIA, as a Committed Purchaser and as Liberty Street
Agent



	 	 	 	 	 
	By:

	 	/s/ Norman Last 	 	 
	 

	 	 	 	 
	Name:

	 	Norman Last	 	 
	Title:
	 	Managing Director	 	 





5








 





	 	 	 	 	 
	TENNECO AUTOMOTIVE
RSA COMPANY, a Delaware corporation	 	 
	 
	 	 	 	 
	By:
	 	/s/ John E. Kunz 	 	 
	 

	 	 	 	 
	Name:

	 	John E. Kunz	 	 
	Title:

	 	President and Treasurer	 	 
	 
	 	 	 	 
	TENNECO AUTOMOTIVE OPERATING COMPANY INC.,	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 
	By:
	 	/s/ Gary Silha 	 	 
	 

	 	 	 	 
	Name:

	 	Gary Silha	 	 
	Title:

	 	Assistant Treasurer	 	 
	 
	 	 	 	 
	THE PULLMAN COMPANY,	 	 
	a Delaware corporation.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Gary Silha 	 	 
	 

	 	 	 	 
	Name:

	 	Gary Silha	 	 
	Title:

	 	Assistant Treasurer	 	 





By
its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered and in full force and effect:



	 	 	 	 	 
	TENNECO AUTOMOTIVE INC., a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ John E. Kunz 	 	 
	 

	 	 	 	 
	Name:

	 	John E. Kunz	 	 
	Title:

	 	Vice President and Treasurer	 	 





6








 







OMNIBUS AMENDMENT NO. 2




AMENDMENT NO. 2 TO RECEIVABLES SALE AGREEMENTS AND

AMENDMENT NO. 3 TO SECOND AMENDED AND RESTATED RECEIVABLES

PURCHASE AGREEMENT




          THIS
OMNIBUS AMENDMENT NO. 1, dated as of October 14, 2005 (this “Amendment” ), is by and
among:





     (a) Tenneco Automotive RSA Company, a Delaware
corporation (“Seller”),




     (b)
The Pullman Company, a Delaware corporation (“Pullman”),




     (c) Tenneco Automotive Operating Company Inc., a Delaware corporation, as initial Servicer (“Tenneco Operating” and, together with
Seller and Pullman, the “Companies”),




     (c) Jupiter Securitization Corporation, a Delaware corporation
(“Jupiter” or a “Conduit”),  and Liberty Street Funding Corp., a
Delaware corporation (“Liberty Street” or a “Conduit”),




     (d) The Bank of Nova Scotia, a Canadian chartered bank acting
through its New York Agency, individually (together with Liberty Street, the
“Liberty Street Group”),  and in its capacity
as agent for the Liberty Street
Group (a “Co-Agent”),




     (e) JPMorgan Chase, individually (the “Jupiter Committed
Purchaser” and, together with Jupiter, the “Jupiter Group”),  in its capacity as
agent for the Jupiter Group (a “Co-Agent”),  and in its capacity as administrative
agent for the Jupiter Group, the Liberty Street Group and each Co-Agent (in such
capacity, together with its successors and assigns, the “Administrative Agent”
and, together with each of the 

Co-Agents, the “Agents”).



W
I T N E S S E T H :





     WHEREAS, Tenneco Operating and Seller are parties to that certain Receivables
Sale Agreement, dated as of October 31, 2000, between Tenneco Operating, as
seller, and Seller, as purchaser, and Pullman and Seller are parties to that
certain Receivables Sale Agreement, dated as of December 27, 2000, between
Pullman, as seller, and Seller, as purchaser (collectively, the “Receivables Sale
Agreements”); and




     WHEREAS, Seller, Tenneco Operating, the Liberty Street Group, the Jupiter
Group and the Agents are parties to that certain Second Amended and



 









 







Restated Receivables Purchase Agreement dated as of May 4, 2005, as heretofore amended
(the “Receivables Purchase Agreement” and, together with the Receivable Sale
Agreements, the “Agreements”); and




     WHEREAS, the parties wish to amend the Agreements on the terms and subject to the
conditions hereinafter set forth;



          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:




          1. Defined Terms. Capitalized terms used herein and not otherwise defined
shall have their meanings as attributed to such terms in the Agreements.




          2. Amendments. The following definitions in the Receivables Purchase
Agreement (and as incorporated by reference in the Receivables Sale Agreements) are hereby
amended and restated in their entirety to read, respectively, as follows:





     “Receivable” means all indebtedness and other obligations owed to Seller or an
Originator (at the time it arises, and before giving effect to any transfer or
conveyance under a Receivables Sale Agreement or hereunder) or in which Seller or an
Originator has a security interest or other interest, including, without limitation,
any indebtedness, obligation or interest constituting an account, chattel paper,
instrument or general intangible, arising in connection with the sale of goods or the
rendering of services by such Originator and the obligation to pay any Finance Charges
with respect thereto; provided, however, in no event shall the term “Receivable”
include any such indebtedness or obligations (i) owed by any Subsidiary of Tenneco
Automotive at any time, or (ii) owed by Delphi Corporation or any of its Subsidiaries
if originated on or prior to October 9, 2005. Indebtedness and other rights and
obligations arising from any one transaction, including, without limitation,
indebtedness and other rights and obligations represented by an individual invoice,
shall constitute a Receivable separate from a Receivable consisting of the indebtedness
and other rights and obligations arising from any other transaction; provided further,
that any indebtedness, rights or obligations referred to in the immediately preceding
sentence shall be a Receivable regardless of whether the account debtor or Seller
treats such indebtedness, rights or obligations as a separate payment obligation.




     “Tenneco Automotive” means (a) prior to October 27, 2005, Tenneco Automotive
Inc., a Delaware corporation, and (b) from and after October 27, 2005, Tenneco
Inc.,  a Delaware corporation formerly known as Tenneco Automotive Inc.



2









 







          3. Certain Representations. In order to induce the Agents and the Purchasers
to enter into this Amendment, each of the Companies hereby represents and warrants to the
Agents and the Purchasers that, both before and after giving effect to the amendments
contained in Section 2 hereof, (a) no Amortization Event or Potential Amortization Event exists and is
continuing as of the Effective Date (as defined in Section 4 below), (b) each of the
Agreements to which such Company is a party, as amended hereby, constitutes the legal, valid and binding
obligations of such Company enforceable against such Company in accordance with its terms,
except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization
or other similar laws relating to or limiting creditors’ rights generally and by general
principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law and
(c) each of such Company’s representations and warranties contained in each of the Agreements to
which it is a party is true and correct as of the Effective Date as though made on such date
(except for such representations and warranties that speak only as of an earlier date).




          4. Effective Date. This Amendment shall become effective as of the date
first above written (the “Effective Date”) upon receipt by the Administrative Agent of
counterparts of this Amendment, duly executed by each of the parties hereto, and consented to
by the Performance Guarantor in the space provided below.




          5. Ratification. Except as expressly modified hereby, the Agreements, as
amended hereby, is hereby ratified, approved and confirmed in all respects.




          6. Reference to Agreement. From and after the Effective Date hereof, each
reference in the Agreements to “this Agreement”,
“hereof”, or “hereunder” or words of like
import, and all references to the Agreements in any and all agreements, instruments,
documents, notes, certificates and other writings of every kind and nature shall be deemed to mean the
Agreements, as amended by this Amendment.




          7. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees,
and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys
for the Agents, which attorneys may be employees of an Agent) incurred by the Agent in
connection with the preparation, execution and enforcement of this Amendment.




          8. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS)
OF THE STATE OF ILLINOIS.




          9. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.




3









 










          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.




	 	 	 	 	 
	JUPITER SECURITIZATION CORPORATION	 	 
	 
	 	 	 	 
	
By: JPmorgan Chase Bank, N.A., 
its attorney-in-fact	 	 
	 
	 	 	 	 
	By:

	 	/s/ John Kuhns
 

	 	 
	Name: John Kuhns	 	 
	Title: Vice President	 	 





JPMORGAN CHASE BANK, N.A.,
as a Committed Purchaser, as Jupiter Agent and as Administrative
Agent




	 	 	 	 	 
	By:

	 	/s/ John Kuhns
 

	 	 
	Name: John Kuhns	 	 
	Title: Vice President	 	 
	 
	 	 	 	 
	LIBERTY STREET FUNDING CORP.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Bernard J Angelo
 

	 	 
	Name:
	 	Bernard J Angelo	 	 
	Title:
	 	Vice President	 	 







4









 







THE BANK OF NOVA SCOTIA, 
as a Committed Purchaser and as Liberty Street
agent




	 	 	 	 	 
	By: 

Name:

	 	/s/ J. ALAN EDWARDS
 

J. ALAN EDWARDS
	 	 
	Title:

	 	MANAGING DIRECTOR	 	 






5









 







	 	 	 	 	 
	TENNECO AUTOMOTIVE
RSA COMPANY, a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ John E. Kunz	 	 
	 

	 	 	 	 
	Name: John E. Kunz	 	 
	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 
	TENNECO AUTOMOTIVE OPERATING COMPANY INC.,	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Gary Silha
 

	 	 
	Name: Gary Silha	 	 
	Title: Assistant Treasurer	 	 
	 
	 	 	 	 
	THE PULLMAN COMPANY,	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Gary Silha
 

	 	 
	Name: Gary Silha	 	 
	Title: Assistant Treasurer	 	 





By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered and in full force and effect:




	 	 	 	 	 
	TENNECO AUTOMOTIVE INC., a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ John E. Kunz
 

	 	 
	Name: John E. Kunz	 	 
	Title: Vice President and Treasurer	 	 







6












 




AMENDMENT NO. 4 TO SECOND AMENDED AND RESTATED RECEIVABLES

PURCHASE AGREEMENT


          THIS AMENDMENT NO. 4 TO SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as
of January 30, 2006 (this “Amendment”), is by and among:


     (a)
Tenneco Automotive RSA Company, a Delaware corporation
(“Seller”), 


     (b)
Tenneco Automotive Operating Company Inc., a Delaware
corporation, as initial Servicer (“Tenneco Operating” and, together with Seller,
the “Seller Parties”),


     (c)
Jupiter Securitization Corporation, a Delaware corporation
(“Jupiter” or a
“Conduit”), and Liberty Street Funding Corp., a Delaware
corporation (“Liberty Street” or a
“Conduit”),


     (d)
The Bank of Nova Scotia, a Canadian chartered bank acting
through its New York Agency, individually (together with Liberty Street, the
“Liberty Street Group”), and in its capacity as agent for the Liberty Street
Group (a “Co-Agent”), and


     (e)
JPMorgan Chase, individually (the “Jupiter Committed
Purchaser” and, together with Jupiter, the
“Jupiter Group”), in its capacity as
agent for the Jupiter Group (a “Co-Agent”), and in its capacity as administrative
agent for the Jupiter Group, the Liberty Street Group and each Co-Agent (in such
capacity, together with its successors and assigns, the “Administrative Agent”
and, together with each of the Co-Agents, the
“Agents”).


W
I T N E S S E T H:


     WHEREAS, Seller, Tenneco Operating, the Liberty Street Group, the Jupiter
Group and the Agents are parties to that certain Second Amended and Restated
Receivables Purchase Agreement dated as of May 4, 2005, as heretofore amended (the
“Receivables Purchase Agreement”); and


     WHEREAS, the parties wish to amend the Receivables Purchase Agreement on
the terms and subject to the conditions hereinafter set forth;


          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:


          1.
Defined Terms. Capitalized terms used herein and not otherwise defined
shall have their meanings as attributed to such terms in the Receivables Purchase Agreement.


 








 




          2.
Amendments.


          (a)
Section 1.3 of the Receivables Purchase Agreement is hereby amended and restated in
its entirety to read as follows:


     Section 1.3. Decreases. Unless Broken Funding Costs are paid for
such reduction, not later than 12:00 noon (Chicago time) on the Business Day
prior to a proposed reduction in Aggregate Capital outstanding, Seller shall
provide the Co-Agents with written notice of any reduction requested by the
Seller of the Aggregate Capital outstanding (a “Reduction
Notice”). Such
Reduction Notice shall designate (i) the date (the
“Proposed Reduction Date”)
upon which any such reduction of Aggregate Capital shall occur (which date
shall not be earlier than one (1) Business Day after the Reduction Notice is
given unless Broken Funding Costs are paid for such reduction), and (ii) the
amount of Aggregate Capital to be reduced (the “Aggregate
Reduction”), which shall be applied ratably to the Purchaser Interests of each Group in
accordance with the amount of Capital owing to each and within each Group,
ratably in accordance with the amount of Capital, if any, owing to each
member of such Group.


          (b)
The following definitions in the Receivables Purchase Agreement are hereby
amended and restated in their entirety to read, respectively, as follows:


     “Liquidity Termination Date” means January 29, 2007.


     “Purchase Limit” means $100,000,000.


          (c) Any
references in the Receivables Purchase Agreement to “Tenneco Automotive Inc.”
are hereby replaced with “Tenneco Inc.”


          (d) Exhibit IV
to the Receivables Purchase
Agreement is hereby amended to add the following new Lock-Boxes and Collection Accounts thereto:



	 	 	 	 	 
	                         Lockbox Address	 	Related Collection account	 
	 	 	[The following Collection Accounts are at The	 
	 	 	Bank of Nova Scotia in Toronto, ON]	 
	 
	 	 	 	 
	P.O. Box 8879, Station A 

Toronto, Ontario, Canada 
M5W 1P8
	 	 	476960055719	 
	 
	 	 	 	 
	P.O. Box 8895, Station A

Toronto, Ontario, Canada
M5W 1P8
	 	 	476960055816	 
	 
	 	 	 	 





2








 





	 	 	 	 	 
	                    Lockbox Address	 	Related Collection Account	 
	 	 	[The following Collection Accounts are at The	 
	 	 	Bank of Nova Scotia in Toronto, ON]	 
	OE Ride Control

Electronic Receipt Account
	 	 	476960055913	 
	 
	 	 	 	 
	OE Exhaust 

Electronic Receipt Account
	 	 	476960056014	 
	 
	 	 	 	 
	Concentration Account
	 	 	476960055611	 





          (e) Schedule A to the Receivables Purchase Agreement is hereby amended and
restated in its entirety to read as follows:


SCHEDULE A


COMMITMENTS OF COMMITTED PURCHASERS



	 	 	 	 	 	 	 	 	 
	     Group	 	Committed Purchaser	 	Commitment
	Jupiter Group
	 	JPMorgan Chase Bank, N.A.	 	$	56,000,000	 
	 
	 	 	 	 	 	 	 	 
	Liberty Street Group
	 	The Bank of Nova Scotia,New York Agency	 	$	44,000,000	 





          3.
Certain Representations. In order to induce the Agents and the Purchasers
to enter into this Amendment, each of the Seller Parties hereby represents and warrants to the
Agents and the Purchasers that, both before and after giving effect to the amendments
contained in Section 2 hereof, (a) no Amortization Event or Potential Amortization Event exists and
is continuing as of the Effective Date (as defined in Section 4 below), (b) the Receivables
Purchase Agreement, as amended hereby, constitutes the legal, valid and binding obligations of such
Seller Party enforceable against it in accordance with its terms, except as such enforcement may
be limited by applicable bankruptcy, insolvency, reorganization or other similar laws
relating to or limiting creditors’ rights generally and by general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law and (c) each of such Seller
Party’s representations and warranties contained in the Receivables Purchase Agreement is true and
correct as of the Effective Date as though made on such date (except for such
representations and warranties that speak only as of an earlier date).


          4.
Effective Date. This Amendment shall become effective as of the date first above written (the
“Effective Date”) upon receipt by the Administrative Agent of (a)
counterparts of this Amendment, duly executed by each of the parties hereto, and consented
to by the Performance Guarantor in the space provided below, and (b) a Collection Account
Agreement with respect to the Lock-Boxes and Collection Accounts added to Exhibit IV
pursuant to this Amendment, duly executed by each of the Seller Parties, The Bank of Nova
Scotia, as Collection Bank, and the Administrative Agent.


3








 








          5. Ratification. Except as expressly modified hereby, the Receivables
Purchase Agreement, as amended hereby, is hereby ratified, approved and confirmed in all respects.




          6. Reference to Agreement. From and after the Effective Date hereof, each reference in the Receivables Purchase Agreement to “this Agreement”, “hereof, or “hereunder”
or words of like import, and all references to the Receivables Purchase Agreement in any and
all agreements, instruments, documents, notes, certificates and other writings of every kind and
nature shall be deemed to mean the Receivables Purchase Agreement, as amended by this
Amendment.




          7. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees,
and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys
for the Agents, which attorneys may be employees of an Agent) incurred by the Agent in
connection with the preparation, execution and enforcement of this Amendment.




          8. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS)
OF THE STATE OF ILLINOIS.




          9. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.




4









 





          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.




	 	 	 	 	 
	JUPITER SECURITIZATION CORPORATION
	 
	 	 	 	 
	By:
JPMorgan Chase Bank, N.A., Its Attorney-In-Fact
	 
	 	 	 	 
	By:
Name:
	 	/s/ John M. Kuhns
 

John M. Kuhns	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	JPMORGAN CHASE BANK, N.A.,
As a Committed Purchaser, As Jupiter Agent And
As Administrative Agent
	 
	 	 	 	 
	By: 

Name:

	 	/s/ John M. Kuhns
 

John M. Kuhns
	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	LIBERTY STREET FUNDING CORP.
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Bernard J. Angelo
 

Bernard J. Angelo
	 	 
	Title:

	 	Vice President	 	 





5








 





	 	 	 	 	 
	THE BANK OF NOVA SCOTIA,
as 
a Committed Purchaser and as Liberty Street Agent
	 
	 	 	 	 
	By:
Name:
	 	/s/ J. ALAN EDWARDS
 

J. ALAN EDWARDS	 	 
	Title:

	 	MANAGING DIRECTOR	 	 





6








 





	 	 	 	 	 
	TENNECO AUTOMOTIVE RSA COMPANY, a Delaware corporation
	 
	 	 	 	 
	By:
	 	/s/ John E. Kunz	 	 
	Name:

	 	 

John E. Kunz
	 	 
	Title:

	 	President and Treasurer	 	 
	 
	 	 	 	 
	TENNECO AUTOMOTIVE OPERATING COMPANY INC.,

a Delaware corporation
	 
	 	 	 	 
	By:
	 	/s/ Gary Silha	 	 
	Name:

	 	 

Gary Silha
	 	 
	Title:

	 	Assistant Treasurer	 	 
	 
	 	 	 	 
	By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered and in full force and effect;
	 
	 	 	 	 
	TENNECO INC., a Delaware corporation
	 
	 	 	 	 
	By:
	 	/s/ John E. Kunz	 	 
	Name:

	 	 

John E. Kunz
	 	 
	Title:

	 	Vice President and Treasurer	 	 





7








 





AMENDMENT NO. 5 TO SECOND AMENDED AND RESTATED RECEIVABLES




PURCHASE AGREEMENT




          THIS AMENDMENT NO. 5 TO SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as
of April 18, 2006 (this “Amendment”), is by and among:





     (a) Tenneco Automotive RSA Company, a Delaware corporation
(“Seller”),




     (b) Tenneco Automotive Operating Company Inc., a Delaware corporation, as initial
Servicer (“Tenneco Operating” and, together with Seller, the “Seller Parties”),




     (c) Jupiter Securitization Corporation, a Delaware corporation
(“Jupiter” or a “Conduit”), and Liberty Street Funding Corp., a Delaware
corporation (“Liberty Street” or a “Conduit”),




     (d) The Bank of Nova Scotia, a Canadian chartered bank acting through its New
York Agency, individually (together with Liberty Street, the “Liberty Street
Group”), and in its capacity as agent for the Liberty Street Group (a “Co-Agent”),
and





     (e) JPMorgan Chase, individually (the “Jupiter Committed Purchaser” and, together
with Jupiter, the “Jupiter Group”), in its capacity as agent for the Jupiter Group (a
“Co-Agent”), and in its capacity as administrative agent for the Jupiter Group, the
Liberty Street Group and each Co-Agent (in such capacity, together with its successors
and assigns, the “Administrative Agent” and, together with each of the Co-Agents, the
“Agents”).



W
I T N E S S E T H:





   
  WHEREAS, Seller, Tenneco Operating, the Liberty Street Group, the Jupiter
Group and the Agents are parties to that certain Second Amended and Restated
Receivables Purchase Agreement dated as of May 4, 2005, as heretofore amended (the
“Receivables Purchase Agreement”); and




     WHEREAS, the parties wish to amend the Receivables Purchase Agreement on
the terms and subject to the conditions hereinafter set forth;



          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:




          1. Defined Terms. Capitalized terms used herein and not otherwise defined
shall have their meanings as attributed to such terms in the Receivables Purchase Agreement.




 









 





          2. Amendment. The definitions of “Deemed Collections” and “Dilutions” in
the Receivables Purchase Agreement are hereby amended and restated in their entirety to read,
respectively, as follows:





     “Deemed Collections” means the aggregate of all amounts Seller shall have been
deemed to have received as a Collection of a Receivable. Seller shall be deemed to have
received a Collection in full of a Receivable if at any time (i) the Outstanding
Balance of any such Receivable is either (x) reduced as a result of any defective or
rejected goods or services, any discount or any adjustment or otherwise by Seller
(other than as a result of such Receivable becoming a Charged-Off Receivable or such
Receivable having any credit issued with respect to it on account of a repurchase
pursuant to any Stock-Lift Agreement, on account of any Pass-Through Credit, Price
Give-Back Accrual or Warranty Accrual, or to reflect cash Collections on account of the
Receivables) or (y) reduced or canceled as a result of a setoff in respect of any claim
by any Person (whether such claim arises out of the same or a related transaction or an
unrelated transaction), or (ii) any of the representations or warranties in Article V
are no longer true with respect to any Receivable; provided, however, that solely prior
to April 15, 2006, the Outstanding Balance of all Receivables arising from the
production and shipment of prototypes shall be netted against the amount of Collections
Seller is otherwise deemed to have received pursuant to clause (i) above.




     “Dilutions” means, at any time, the aggregate amount of reductions or
cancellations described in clause (i) of the definition of “Deemed Collections”
less, solely prior to April 15, 2006, the original Outstanding Balance of all
Receivables arising from the production and shipment of prototypes.



          3. Certain Representations. In order to induce the Agents and the Purchasers to enter
into this Amendment, each of the Seller Parties hereby represents and warrants to the Agents and
the Purchasers that after giving effect to the amendment contained in Section 2 hereof, (a) no
Amortization Event or Potential Amortization Event exists and is continuing as of the date hereof,
(b) the Receivables Purchase Agreement, as amended hereby, constitutes the legal, valid and binding
obligation of such Seller Party enforceable against it in accordance with its terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law and (c) each of
such Seller Party’s representations and warranties contained in the Receivables Purchase Agreement
is true and correct as of the date hereof as though made on such date (except for such
representations and warranties that speak only as of an earlier date).




          4. Effective Date. This Amendment shall become retroactively effective as of May 4,
2005 (the “Effective Date”) upon receipt by the Administrative Agent of counterparts of this
Amendment, duly executed by each of the parties hereto, and consented to by the Performance
Guarantor in the space provided below.




2









 





          5. Ratification. Except as expressly modified hereby, the Receivables Purchase
Agreement, as amended hereby, is hereby ratified, approved and confirmed in all respects.




          6. Reference to Agreement. From and after the Effective Date hereof, each reference in
the Receivables Purchase Agreement to “this Agreement”, “hereof, or “hereunder” or words of like
import, and all references to the Receivables Purchase Agreement in any and all agreements,
instruments, documents, notes, certificates and other writings of every kind and nature shall be
deemed to mean the Receivables Purchase Agreement, as amended by this Amendment.




          7. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees, and
out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the
Agents, which attorneys may be employees of an Agent) incurred by the Agent in connection with the
preparation, execution and enforcement of this Amendment.




          8. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.




          9. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.




3









 








          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.




   JUPITER SECURITIZATION CORPORATION




   By: JPMorgan Chase Bank, N.A., its attorney-in-fact




	 	 	 	 	 
	 	 	 
	 	By:  	/s/  John M. Kuhns
 	 
	 	Name:	John M. Kuhns 	 
	 	Title:	Vice President 	 
	 




JPMORGAN CHASE BANK, N.A., as a Committed Purchaser, as Jupiter Agent and as Administrative
Agent


	 	 	 	 	 
	 	By:  	/s/  John M. Kuhns
 	 
	 	Name:	John M. Kuhns 	 
	 	Title:	Vice President 	 
	 
	 	LIBERTY STREET FUNDING CORP.

 	 
	 	By:  	




/s/  BERNARD J. ANGELO
 	 
	 	Name:	Bernard J. Angelo 	 
	 	Title:	Vice President 	 



4









 






	 	 	 	 	 



	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, as a Committed Purchaser And As Liberty Street Agent
 
	 
	 	By:  	/s/   J. ALAN EDWARDS
 	 
	 	Name:	J. ALAN EDWARDS 	 
	 	Title:	MANAGING DIRECTOR 	 



5









 







	 	 	 	 	 



	 	 	 	 	 
	 	TENNECO AUTOMOTIVE RSA COMPANY,
a Delaware corporation

 
	 	By:  	/s/  John E. Kunz
 	 
	 	Name:  	John E. Kunz 	 
	 	Title:	President and Treasurer 	 
	 
	 	TENNECO AUTOMOTIVE OPERATING
COMPANY INC., a Delaware corporation

 
	 	By:  	/s/  Gary Silha
 	 
	 	Name: 	Gary Silha 	 
	 	Title:	Assistant Treasurer 	 
	 


By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered
and in full force and effect:




	 	 	 	 	 
	 	TENNECO INC., a Delaware corporation

 	 
	 	By:  	/s/  John E. Kunz
 	 
	 	Name:	John E. Kunz 	 
	 	Title:	Vice President and Treasurer 	 
	 




6











 





AMENDMENT
NO. 6 TO SECOND AMENDED AND RESTATED RECEIVABLES




PURCHASE AGREEMENT




          THIS AMENDMENT NO. 6 TO SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as
of January 29, 2007 (this “Amendment”), is by and among:





     (a) Tenneco Automotive RSA Company, a Delaware corporation (“Seller”),




     (b) Tenneco Automotive Operating Company Inc., a Delaware corporation, as initial
Servicer (“Tenneco Operating” and, together with Seller, the “Seller Parties”),




     (c) Jupiter Securitization Corporation, a Delaware corporation (“Jupiter”
or a “Conduit”), and Liberty Street Funding Corp., a Delaware corporation
(“Liberty Street” or a “Conduit”),




     (d) The Bank of Nova Scotia, a Canadian chartered bank acting through its
New York Agency, individually (together with Liberty Street, the “Liberty Street
Group”), and in its capacity as agent for the Liberty Street Group (a
“Co-Agent”), and




     (e) JPMorgan Chase, individually (the “Jupiter Committed Purchaser” and, together with
Jupiter, the “Jupiter Group”), in its capacity as agent for the Jupiter Group (a
“Co-Agent”), and in its capacity as administrative agent for the Jupiter Group, the Liberty
Street Group and each Co-Agent (in such capacity, together with its successors and assigns,
the “Administrative Agent” and, together with each of the Co-Agents, the “Agents”).



W
I T N E S S E T H:






     WHEREAS, Seller, Tenneco Operating, the Liberty Street Group, the Jupiter
Group and the Agents are parties to that certain Second Amended and Restated
Receivables Purchase Agreement dated as of May 4, 2005, as heretofore amended
(the “Receivables Purchase Agreement”); and




     WHEREAS, the parties wish to amend the Receivables Purchase Agreement on
the terms and subject to the conditions hereinafter set forth;



          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:




          1. Defined Terms. Capitalized terms used herein and not otherwise defined shall have
their meanings as attributed to such terms in the Receivables Purchase Agreement.




 









 








          2. Amendments.




          (a) The following definitions in the Receivables Purchase Agreement (and as
incorporated by reference in the Receivables Sale Agreements) are hereby amended and restated
in their entirety to read, respectively, as follows:





     “Net Receivables Balance” means, at any time, the result of (a) the
aggregate Outstanding Balance of all Eligible Receivables, minus (b) the
Overconcentration Amount, minus (c) the Pass-Through Reserve at such time,
minus (d) the Warranty Reserve at such time, minus (e) Price Give-Back Accrual
at such time minus (f) the Sales-Promotion Reserve; provided, however, that
the sum of the Pass-Through Reserve, the Price Give-Back Accrual, the Warranty
Reserve, the Sales-Promotion Reserve and the Overconcentration Amount
attributable to any Obligor shall not exceed the aggregate Outstanding Balance
of all Eligible Receivables for such Obligor included in the calculation of
Net Receivables Balance.




“Liquidity Termination Date” means January 28, 2008.



          (b) The definition of the term “Sales-Promotion Reserve” is hereby added to
the Receivables Purchase Agreement in its proper alphabetical order (and as incorporated by
reference in the Receivables Sale Agreements) to read in its entirety as follows:





“Sales-Promotion Reserve” means $5,000,000.



          (c) Section 8.5 of the Receivables Purchase Agreement is hereby amended
and restated in its entirety to read as follows:





     Section 8.5. Portfolio Reports. The Servicer shall prepare and
forward to the Agents (i) on or before each Monthly Reporting Date, a Monthly
Report for the month then most recently ended, (ii) during each (A) Level Two
Ratings Period and (B) Level Three Ratings Period, unless at any time during
any such Level Three Ratings Period, any Agent shall have requested that Daily
Reports be delivered pursuant to the immediately succeeding clause (iii) of
this paragraph, on Monday of each week with respect to and as of the end of
the immediately preceding calendar week, a Weekly Report, (iii) during each
Level Three Ratings Period with respect to which any Agent shall have
requested that Daily Reports be delivered pursuant to this clause (iii) of
this paragraph, on each Daily Reporting Date with respect to and as of the
preceding Business Day, a Daily Report and (iv) at such times as any Agent
shall request, a listing by Obligor of all Receivables together with an aging
of such Receivables. For purposes of this Section 8.5, if at any time, Tenneco
Automotive’s long-term debt ratings fall within different categories and as a
result thereof more than one Ratings Period then applies, the Ratings Period
corresponding to the lower long-term debt rating shall control.



2









 





          3. Certain Representations. In order to induce the Agents and the Purchasers to enter
into this Amendment, each of the Seller Parties hereby represents and warrants to the Agents and
the Purchasers that after giving effect to the amendment contained in Section 2 hereof, (a) no
Amortization Event or Potential Amortization Event exists and is continuing as of the date hereof,
(b) the Receivables Purchase Agreement, as amended hereby, constitutes the legal, valid and binding
obligation of such Seller Party enforceable against it in accordance with its terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar
laws relating to or limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law and (c) each of
such Seller Party’s representations and warranties contained in the Receivables Purchase Agreement
is true and correct as of the date hereof as though made on such date (except for such
representations and warranties that speak only as of an earlier date).




          4. Effective Date. This Amendment shall become effective as of the date first above
written (the “Effective Date”) upon receipt by the Administrative Agent of counterparts of this
Amendment, duly executed by each of the parties hereto, and consented to by the Performance
Guarantor in the space provided below.




          5. Ratification. Except as expressly modified hereby, the Receivables Purchase
Agreement, as amended hereby, is hereby ratified, approved and confirmed in all respects.




          6. Reference to Agreement. From and after the Effective Date hereof, each reference in
the Receivables Purchase Agreement to “this Agreement”, “hereof”, or “hereunder” or words of like
import, and all references to the Receivables Purchase Agreement in any and all agreements,
instruments, documents, notes, certificates and other writings of every kind and nature shall be
deemed to mean the Receivables Purchase Agreement, as amended by this Amendment.




          7. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees, and
out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the
Agents, which attorneys may be employees of an Agent) incurred by the Agent in connection with the
preparation, execution and enforcement of this Amendment.




          8. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.




          9. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.




3









 





          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.




JUPITER SECURITIZATION CORPORATION


By: JPMorgan Chase Bank, N.A., its attorney-in-fact





	 	 	 	 	 
	 	 	 
	 	By:  	/s/ John M. Kuhns
 	 
	 	Name:	John M. Kuhns 	 
	 	Title:	Vice President 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as a Committed Purchaser, as Jupiter Agent and as Administrative
Agent

 	 
	 	By:  	/s/ John M. Kuhns
 	 
	 	Name:	John M. Kuhns 	 
	 	Title:	Vice President 	 
	 
	 	LIBERTY STREET FUNDING CORP.

 	 
	 	By:  	/s/ Jill A. Gordon
 	 
	 	Name:	Jill A. Gordon 	 
	 	Title:	Vice President 	 



4









 







	 	 	 	 	 



	 	 	 	 	 
	 	THE BANK OF NOVA
SCOTIA, as a Committed
Purchaser and as Liberty Street Agent

 
	 	By:  	/s/ DARREN WARD
 	 
	 	Name:	DARREN WARD 	 
	 	Title:	DIRECTOR 	 



5









 








	 	 	 	 	 



	 	 	 	 	 
	 	TENNECO AUTOMOTIVE RSA COMPANY, a Delaware corporation

 
	 	By:  	


/s/ John E. Kunz
 	 
	 	Name:	John E. Kunz 	 
	 	Title:	President and Treasurer 	 
	 
	 	TENNECO AUTOMOTIVE OPERATING COMPANY INC., a Delaware corporation

 	 
	 	By:  	/s/ Gary Silha
 	 
	 	Name:	Gary Silha 	 
	 	Title:	Assistant Treasurer 	 
	 


By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered and in full force and effect:




	 	 	 	 	 
	 	TENNECO INC., a Delaware corporation

 	 
	 	By:  	/s/ John E. Kunz
 	 
	 	Name:	John E. Kunz 	 
	 	Title:	Vice President, Treasurer and Tax 	 
	 




6











 





AMENDMENT NO. 7 TO SECOND AMENDED AND RESTATED RECEIVABLES

PURCHASE AGREEMENT AND WAIVER




               THIS AMENDMENT NO. 7 TO SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT AND
WAIVER, dated as of August 6, 2007 (this “Amendment and Waiver”), is by and among:




          (a) Tenneco Automotive RSA Company, a Delaware corporation
(“Seller”),




          (b) The Pullman Company, a Delaware corporation (“Pullman”),




          (c) Tenneco Automotive Operating Company Inc., a Delaware corporation, as
initial Servicer (“Tenneco Operating” and, together with Seller and Pullman, the
“Seller Parties”),




          (d) Jupiter Securitization Company LLC, a Delaware limited liability
company (“Jupiter” or a “Conduit”), and Liberty Street Funding Corp., a
Delaware corporation (“Liberty Street” or a “Conduit”),




          (e) The Bank of Nova Scotia, a Canadian chartered bank acting through its
New York Agency, individually (together with Liberty Street, the “Liberty Street
Group”), and in its capacity as agent for the Liberty Street Group (a
“Co-Agent”), and




          (f) JPMorgan Chase, individually (the “Jupiter Committed Purchaser” and,
together with Jupiter, the “Jupiter Group”), in its capacity as agent for the
Jupiter Group (a “Co-Agent”), and in its capacity as administrative agent for
the Jupiter Group, the Liberty Street Group and each Co-Agent (in such capacity,
together with its successors and assigns, the “Administrative Agent” and,
together with each of the Co-Agents, the “Agents”).



W
I T N E S S E T H :





          WHEREAS, Tenneco Operating and Seller are parties to that certain Receivables
Sale Agreement, dated as of October 31, 2000, between Tenneco Operating, as seller,
and Seller, as purchaser, and Pullman and Seller are parties to that certain
Receivables Sale Agreement, dated as of December 27, 2000, between Pullman, as
seller, and Seller, as purchaser, as heretofore amended (collectively, the
“Receivables Sale Agreements”); and




          WHEREAS, Seller, Tenneco Operating, the Liberty Street Group, the Jupiter
Group and the Agents are parties to that certain Second Amended and Restated
Receivables Purchase Agreement dated as of May 4, 2005, as heretofore amended
(the “Receivables Purchase Agreement” and, together with the Receivables Sale
Agreements, the “Agreements”); and



 









 






          WHEREAS, the Performance Guarantor will restate its financial statements for
the fiscal years ended December 31, 2004, December 31, 2005 and December 31, 2006
and for the fiscal quarter ended March 31, 2007, as more fully described in the
Performance Guarantor’s report on Form 8-K filed with the SEC on July 23, 2007
(the “Restatement”);




          WHEREAS, the Seller Parties have requested certain waivers under the
Agreements in connection with the Restatement; and




          WHEREAS, the Purchasers and Agents are willing to agree to such waivers
and amendments subject to the terms and conditions set forth herein;



               NOW,
THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:



               1. Defined Terms. Capitalized terms used herein and not otherwise defined shall have
their meanings as attributed to such terms in the Agreements.



               2. Amendment. (a) Section 9.1 (i) of the Receivables Purchase Agreement is
hereby amended to replace the text “as in effect on May 4, 2005” with the following:




          “as in effect on March 16, 2007, and as the same has been or may be
amended, waived or otherwise modified from time to time in accordance with the
terms thereof, but for this purpose only if the relevant amendment, waiver or
other modification was consented to by JPMorgan Chase Bank, N.A. and The Bank of
Nova Scotia.”



                    (b) The definition of ‘Tenneco Credit Agreement” is hereby amended by substituting the
dates “December 12, 2003” and “September 30, 1999” with “March 16, 2007” and “December 12, 2003”
respectively.



               3. Waiver, etc. The Purchasers and Agents hereby waive (a) any
Termination Event, Potential Termination Event, Amortization Event or Potential Amortization
Event requiring an item or calculation to be determined in accordance with GAAP or resulting
from the bring-down of representations and warranties by the Performance Guarantor or any
Seller Party or satisfaction of conditions in connection with any prior purchase or extension of
credit under the Agreements in each case resulting from the Restatement; and (b) through
September 30, 2007, delivery of the financial statements and certificates described in Sections
7.1(a)(i)-(iii) of the Receivables Purchase Agreement with respect to the fiscal quarters ended
March 31, 2007 and June 30, 3007. From and after the date on which restated consolidated
balance sheets of the Performance Guarantor as at December 31, 2006 and December 31, 2005
and the related restated consolidated statements of income and cash flows for the fiscal years
ended on such dates have been issued pursuant to the Restatement, Section 6(d) of the
Performance Undertaking shall be deemed to refer to such restated audited financial statements.



2









 





               4. Certain Representations. In order to induce the Agents and the Purchasers to enter
into this Amendment and Waiver, each of the Seller Parties hereby represents and warrants to the
Agents and the Purchasers that after giving effect to the amendment contained in Section 2 hereof
and the waiver contained in Section 3 hereof, (a) no Amortization Event or Potential
Amortization Event exists and is continuing as of the date hereof, (b) the Receivables Purchase
Agreement, as amended hereby, constitutes the legal, valid and binding obligation of such Seller
Party enforceable against it in accordance with its terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or
limiting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law and (c) each of such Seller Party’s
representations and warranties contained in the Receivables Purchase Agreement is true and correct
as of the date hereof as though made on such date (except for such representations and warranties
that speak only as of an earlier date).



               5. Effective Date. This Amendment and Waiver shall become effective as of the date
first above written (the “Effective Date”) upon receipt by the Administrative Agent of counterparts
of this Amendment and Waiver, duly executed by each of the parties hereto, and consented to by the
Performance Guarantor in the space provided below.



               6. Ratification. Except as expressly modified hereby, the Agreements, as amended
and waived hereby, are hereby ratified, approved and confirmed in all respects.



               7. Reference to Agreements. From and after the Effective Date hereof, each reference
in the Receivables Purchase Agreement or either of the Receivables Sale Agreements to “this
Agreement”, “hereof”, or “hereunder” or words of like import, and all references to the Receivables
Purchase Agreement or either of the Receivables Sale Agreements in any and all agreements,
instruments, documents, notes, certificates and other writings of every kind and nature shall be
deemed to mean the Receivables Purchase Agreement or such Receivables Sale Agreement, as
applicable, as amended by this Amendment and Waiver.



               8. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees, and
out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the
Agents, which attorneys may be employees of an Agent) incurred by the Agent in connection with the
preparation, execution and enforcement of this Amendment and Waiver.



               9. CHOICE OF LAW. THIS AMENDMENT AND WAIVER SHALL BE CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.



               10. Execution in Counterparts. This Amendment and Waiver may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.



3









 





          IN WITNESS WHEREOF, the parties have executed this Amendment and Waiver as of the date first
above written.



JUPITER SECURITIZATION COMPANY LLC

By: JPMorgan Chase Bank, N.A., Its Attorney-In-Fact




	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Cathleen D. Dettling
 

Cathleen D. Dettling
	 	 	 	 
	Title:

	 	Vice President	 	 	 	 
	 
	 	 	 	 	 	 
	JPMORGAN CHASE BANK,
N.A., as  a Committed Purchaser,	 	 
	as Jupiter Agent and as Administrative Agent	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Cathleen D. Dettling	 	 	 	 
	 

	 	 	 	 	 	 
	Name:

	 	Cathleen D. Dettling	 	 	 	 
	Title:

	 	Vice President	 	 	 	 






 









 






TENNECO AUTOMOTIVE RSA COMPANY.

a Delaware corporation




	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ John E. Kunz
 

John E. Kunz
	 	 	 	 
	Title:

	 	President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	TENNECO AUTOMOTIVE
OPERATING COMPANY INC.,	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	By: 

Name:

	 	/s/ John E. Kunz
 

John E. Kunz
	 	 	 	 
	Title:

	 	Vice President and Treasurer	 	 	 	 





By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
Waiver and hereby confirms that its Performance Undertaking remains unaltered and in full force and
effect:




TENNECO INC., a Delaware corporation




	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ John E. Kunz
 

John E. Kunz
	 	 	 	 
	Title:

	 	 Vice President – Treasurer & Tax	 	 	 	 






 









 






LIBERTY STREET FUNDING CORP.




	 	 	 	 	 	 	 
	By:

	 	/s/ Jill A. Gordon
 

	 	 	 	 
	Name:

	 	Jill A. Gordon	 	 	 	 
	Title:

	 	 Vice President	 	 	 	 
	 
	 	 	 	 	 	 
	THE BANK OF NOVA SCOTIA, as a Committed Purchaser
	and as LIBERTY STREET Agent	 	 	 	 
	 
	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Darren Ward
 

Darren Ward
	 	 	 	 
	Title:

	 	 Director	 	 	 	 







 











 





AMENDMENT NO. 8 TO SECOND AMENDED AND RESTATED RECEIVABLES

PURCHASE AGREEMENT




          THIS AMENDMENT NO. 8 TO SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated
as of January 28, 2008 (this “Amendment”), is by and among:





     (a) Tenneco Automotive RSA Company, a Delaware corporation
(“Seller”),




     (b) Tenneco Automotive Operating Company Inc., a Delaware
corporation, as initial Servicer (“Tenneco Operating” and, together with
Seller,the “Seller Parties”),




     (c) Falcon Asset Securitization Company LLC, a Delaware
limited liability company as assignee of Jupiter Securitization Company LLC
(“Falcon” or a “Conduit”),




     (d) Liberty Street Funding LLC, a Delaware limited liability
company formerly known as Liberty Street Funding Corp., a Delaware
corporation (“Liberty Street” or a “Conduit”),




     (e) The Bank of Nova Scotia, a Canadian chartered bank acting
through its New York Agency, individually (together with Liberty Street,the
“Liberty Street Group”), and in its capacity as agent for the Liberty Street
Group (a “Co-Agent”),  and




     (f) JPMorgan Chase, individually (the “Falcon
Committed Purchaser” and, together with Falcon, the “Falcon Group”),
in its capacity as agent for the Falcon Group (a “Co-Agent”), and in its
capacity as administrative agent for the Falcon Group, the Liberty Street Group
and each Co-Agent (in such capacity, together with its successors and
assigns, the “Administrative Agent” and, together with each of the Co-
Agents, the “Agents”).



W
I T N E S S E T H : 





     WHEREAS, the Seller Parties, the Liberty Street Group, the Falcon Group and
the Agents are parties to that certain Second Amended and Restated Receivables
Purchase Agreement dated as of May 4, 2005, as heretofore amended (the
“Receivables Purchase Agreement”);




     WHEREAS, the Seller Parties have requested an extension of the facility
evidenced by the Receivables Purchase Agreement; and




     WHEREAS, the Purchasers and Agents are willing to agree to such
extension on the terms and conditions set forth herein;



1









 





          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:




          1.
Defined Terms. Capitalized terms used herein and not otherwise defined
shall have their meanings as attributed to such terms in the Receivables Purchase Agreement.




          2.
Amendments.




          (a) All references in the Receivables Purchase Agreement to “Jupiter Asset
Securitization Corporation” or “Jupiter Asset Securitization Company LLC” are hereby replaced
with references to “Falcon Asset Securitization Company LLC.” All references in the
Receivables Purchase Agreement to “Jupiter,” whether alone or as part of another defined term
are hereby replaced with references to “Falcon”. All references in the Receivables Purchase
Agreement to “Liberty Street Funding Corp.” are hereby replaced with references to “Liberty
Street Funding LLC.”




          (b) The
following definitions in the Receivables Purchase Agreement are
hereby amended and restated in their entirety to read, respectively, as follows:



“Liquidity Termination Date” means January 26, 2009.



“Purchase Limit” means $120,000,000.




          (c) Schedule A
to the Receivables Purchase Agreement is hereby amended
and restated in its entirety to read as follows:




SCHEDULE A




COMMITMENTS OF COMMITTED PURCHASERS




	 	 	 	 	 
	Group	 	Committed
Purchaser	 	Commitment
	Falcon Group
	 	JPMorgan Chase Bank, N.A
	 	$67,200,000
	Liberty Street Group
	 	The Bank of Nova Scotia,

New York Agency
	 	$52,800,000






          3. Certain Representations. In order to induce the Agents and the Purchasers
to enter into this Amendment, each of the Seller Parties hereby represents and warrants to the
Agents and the Purchasers that after giving effect to the amendments contained in Section 2 hereof,
(a) no Amortization Event or Potential Amortization Event exists and is continuing as of the date
hereof, (b) the Receivables Purchase Agreement, as amended hereby, constitutes the legal, valid and
binding obligation of such Seller Party enforceable against it in accordance with its terms, except
as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other
similar laws relating to or limiting creditors’ rights generally and by general principles of
equity (regardless of whether enforcement is sought





2









 







in a proceeding in equity or at law and (c) each of such Seller Party’s representations and
warranties contained in the Receivables Purchase Agreement is true and correct as of the date
hereof as though made on such date (except for such representations and warranties that speak only
as of an earlier date).




          4. Effective Date. This Amendment shall become effective as of the date
first above written (the “Effective Date”) upon (a) receipt by the Administrative Agent of
counterparts of this Amendment, duly executed by each of the parties hereto, and consented to by
the Performance Guarantor in the space provided below, (b) receipt by the Administrative Agent
of counterparts of a seventh amendment and restatement of the Fee Letter, duly executed by the
Agents and the seller, (c) receipt by Falcon and the Liberty Street Agent of their applicable
Renewal Fee (under and as defined in the Fee Letter), (d) receipt by the Falcon Agent of an
amendment to the Falcon Liquidity Agreement, duly executed by the parties thereto, and (e)
receipt by the Liberty Street Agent of an amendment to the Liberty Street Liquidity Agreement,
duly executed by the parties thereto.




          5. Ratification. Except as expressly modified hereby, the Receivables
Purchase Agreement is hereby ratified, approved and confirmed in all respects.




          6. Reference to Agreement. From and after the Effective Date hereof, each
reference in the Receivables Purchase Agreement to “this Agreement”, “hereof”, or “hereunder”
or words of like import, and all references to the Receivables Purchase Agreement in any and all
agreements, instruments, documents, notes, certificates and other writings of every kind and
nature shall be deemed to mean the Receivables Purchase Agreement, as amended by this
Amendment.




          7. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees,
and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for
the Agents, which attorneys may be employees of an Agent) incurred by the Agent in connection
with the preparation, execution and enforcement of this Amendment.




          8. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF
CONFLICTS) OF THE STATE OF ILLINOIS.




          9. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.





3









 








          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.




	 	 	 	 	 
	FALCON ASSET SECURITIZATION COMPANY LLC	 	 
	 
	 	 	 	 
	 By: JPMorgan Chase
Bank, N.A., Its Attorney-In-Fact	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Cathleen D. Dettling
 

Cathleen D. Dettling
	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	JPMORGAN CHASE BANK,
N.A., as a Committed Purchaser,	 
	as Falcon Agent and as Administrative Agent	 
	 
	 	 	 	 
	By:

	 	/s/ Cathleen D. Dettling
 

	 	 
	Name:

	 	Cathleen D. Dettling	 	 
	Title:

	 	Vice President	 	 






 









 






	 	 	 	 	 
	THE BANK OF NOVA
SCOTIA, as a Committed Purchaser	 	 
	and as Liberty Street Agent	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ J. Alan Edwards
 

J. Alan Edwards
	 	 
	Title:

	 	Managing Director	 	 
	 
	 	 	 	 
	LIBERTY STREET FUNDING LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ J. Alan Edwards	 	 
	 

	 	 	 	 
	Name:

	 	J. Alane Dwards	 	 
	Title:

	 	Managing Director	 	 






5









 








	 	 	 	 	 
	TENNECO AUTOMOTIVE RSA COMPANY,	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ John E. Kunz
 

	 	 
	Name:

	 	John E. Kunz	 	 
	Title:

	 	President and Treasurer	 	 
	 
	 	 	 	 
	TENNECO AUTOMOTIVE OPERATING COMPANY INC.,	 	 
	a Delaware corporation	 	 
	 
	By:

	 	/s/ Gary Silha	 	 
	 

	 	 	 	 
	Name:

	 	Gary Silha	 	 
	Title:

	 	Assistant Treasurer	 	 





By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered and in full force and effect:




	 	 	 	 	 
	TENNECO INC., a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ John E. Kunz
 

	 	 
	Name:

	 	John E. Kunz	 	 
	Title:

	 	Vice President Treasurer and Tax	 	 







6












 







Execution Version




AMENDMENT NO. 9 TO SECOND AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT




          THIS AMENDMENT NO. 9 TO SECOND AMENDED AND RESTATED
Receivables Purchase Agreement, dated as of January 26,
2009 (this “Amendment”), is by and among:




          (a) Tenneco Automotive RSA Company, a Delaware corporation (“Seller”),




          (b) Tenneco Automotive Operating Company Inc., a Delaware corporation, as
initial Servicer (“Tenneco Operating” and, together with Seller, the “SellerParties”),




          (c) Falcon Asset Securitization Company LLC, a Delaware limited liability
company as assignee of Jupiter Securitization Company LLC (“Falcon “ or a “Conduit”),




          (d) Liberty Street Funding LLC, a Delaware limited liability company
formerly known as Liberty Street Funding Corp., a Delaware corporation (“Liberty Street” or a
“Conduit”),




          (e) The Bank of Nova Scotia, a Canadian chartered bank acting through its
New York Agency, individually (together with Liberty Street, the
“Liberty Street Group”), and
in its capacity as agent for the Liberty Street Group (a
“Co-Agent”), and




          (f) JPMorgan Chase Bank, N.A., individually (the “Falcon Committed
Purchaser” and, together with Falcon, the
“Falcon Group”), in its capacity as agent for the
Falcon Group (a “Co-Agent”), and in its capacity as administrative agent for the Falcon Group,
the Liberty Street Group and each Co-Agent (in such capacity, together with its successors and
assigns, the “Administrative Agent” and, together with each of the Co-Agents, the “Agents”).




W I
T N E S S E T H : 




          WHEREAS, the Seller Parties, the Liberty Street Group, the Falcon Group and the Agents are
parties to that certain Second Amended and Restated Receivables Purchase Agreement dated as of May
4, 2005, as heretofore amended (the “Receivables Purchase
Agreement”);




          WHEREAS, the parties wish to amend the Receivables Purchase Agreement and extend the
facility evidenced thereby on the terms and subject to the conditions set forth herein; and




          WHEREAS, the Purchasers and Agents are willing to agree to such amendments and extension
subject to the terms and conditions set forth herein;




          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:





 









 








          1. Defined Terms. Capitalized terms used herein and not otherwise defined
shall have their meanings as attributed to such terms in the Receivables Purchase Agreement.




          2. Amendments.




               (a) Section 9.1 (f)(i) of the Receivables Purchase Agreement is hereby
amended by replacing “12.50%” with “3.00%”.



               (b) Section 9.1 (f)(ii) of the Receivables Purchase Agreement is hereby
amended by replacing “4.00%” with “2.00%”.



               (c) Section 9.1 (i) of the Receivables Purchase Agreement is hereby
amended and restated in its entirety to read as follows:




     “(i) Tenneco shall fail to observe any provision of Section 7.1 of the
Tenneco Credit Agreement as in effect on December 23, 2008 (regardless of whether
the same remains in effect).”



               (d) Section 10.2
of the Receivables Purchase Agreement is hereby
amended and restated in its entirety to read as follows:




     “Section 10.2 Increased Cost and Reduced Return: Accounting Based
Consolidation Event.




     (a) If after the date hereof, any Affected Entity shall be charged any fee,
expense or increased cost on account of the adoption of any applicable law, rule or
regulation (including any applicable law, rule or regulation regarding capital
adequacy), any accounting principles or any change in any of the foregoing, or any
change in the interpretation or administration thereof by the Financial Accounting
Standards Board (“FASB ”), any governmental authority, any central bank or any
comparable agency charged with the interpretation or administration thereof, or
compliance with any request or directive (whether or not having the force of law) of
any such authority or agency (a “Regulatory Change”): (i) that subjects any Affected
Entity to any charge or withholding on or with respect to any Liquidity Agreement or
an Affected Entity’s obligations under a Liquidity Agreement, or on or with respect to
the Receivables, or changes the basis of taxation of payments to any Affected Entity
of any amounts payable under any Liquidity Agreement (except for changes in the rate
of tax on the overall net income of an Affected Entity or taxes excluded by
Section 10.1) or (ii) that imposes, modifies or deems applicable any reserve,
assessment, insurance charge, special deposit or similar requirement against assets
of, deposits with or for the account of an Affected Entity, or credit extended by an
Affected Entity pursuant to a Liquidity Agreement or (iii) that imposes any other
condition the result of which is to increase the cost to an Affected Entity of
performing its obligations under a Liquidity Agreement, or to reduce the rate of
return on an Affected Entity’s capital as a consequence of its obligations under a
Liquidity Agreement, or to reduce the amount of any sum received or receivable by an
Affected Entity under a Liquidity Agreement or to require any payment calculated



2









 






by reference to the amount of interests or loans held or interest received by it (all of the
foregoing, “Increased Costs”), then, upon demand by the applicable Co-Agent, Seller shall
pay to such Co-Agent, for the benefit of the relevant Affected Entity, such Increased Costs
charged to such Affected Entity or such amounts to otherwise compensate such Affected Entity
for such Increased Costs. To the extent that any Liquidity Agreement described in this
Section covers facilities in addition to this Agreement, each Conduit shall allocate the
liability for any applicable Increased Costs among Seller and other Persons with whom such
Conduit has entered into agreements to purchase interests in or finance receivables and
other financial assets (“Other Customers”). If any Increased Costs are attributable to
Seller and not attributable to any Other Customer, Seller shall be solely liable for such
Increased Costs. However, if Increased Costs are attributable to Other Customers and not
attributable to Seller, such Other Customer shall be solely liable for such Increased Costs.
All allocations to be made pursuant to the foregoing provisions of this Section shall be
made by such Conduit in its sole discretion and shall be binding on Seller and the Servicer.
For the avoidance of doubt, if the issuance of FASB Interpretation No. 46, or any other
change in accounting standards or the issuance of any other pronouncement, release or
interpretation, causes or requires the consolidation of all or a portion of the assets and
liabilities of any Conduit or any Seller Party with the assets and liabilities of any Agent,
any Person or any other Affected Entity and such event results in Increased Costs, such
event shall constitute a circumstance on which such Affected Entity may base a claim for
reimbursement under this Section for such Increased Costs.




     (b) If after the date hereof, any Accounting Based Consolidation Event shall
occur which is not the result of a Regulatory Change, then, upon demand by the applicable
Co-Agent, Seller shall pay to such Co-Agent, for the benefit of the relevant Affected
Entity, such amounts as such Affected Entity reasonably determines will compensate or
reimburse such Affected Entity for any resulting (i) Increased Costs, charged to, incurred
or otherwise suffered by such Affected Entity, (ii) reduction in the rate of return on such
Affected Entity’s capital or reduction in the amount of any sum received or receivable by
such Affected Entity or (iii) internal capital charge or other imputed cost, in each case as
determined by such Affected Entity to be allocable to Seller or the transactions
contemplated in this Agreement in connection therewith; provided, however, that in no event
may any Affected Entity (or the applicable Co-Agent on its behalf) with respect to any
Conduit claim or receive reimbursement or compensation for amounts under this Section
10.2(b) that would result in the total compensation payable to it and all other Affected
Entities with respect to such Conduit (inclusive of Yield and fees) exceeding the total
compensation that would have been payable to all such Affected Entities immediately prior to
such Accounting Based Consolidation Event if fundings were made on behalf of such Conduit
hereunder through its Committed Purchaser purchasing or committing to purchase Purchaser
Interest pursuant to Article IV of this Agreement. Amounts under this Section 10.2(b) may be
demanded at any time without regard to the timing of issuance of any financial statement by
a Seller Party or by any Affected Entity.



3









 







     (c) Payment of any sum pursuant to this Section 10.2 shall be made by the Seller
to the applicable Co-Agent, for the benefit of the relevant Affected Entity, not later than
ten (10) days after any such demand is made. A certificate of any Affected Entity, signed by
an authorized officer claiming compensation under this Section 10.2 and setting forth in
reasonable detail the additional amount to be paid for its benefit and explaining the manner
in which such amount was determined shall be presumptive evidence of the amount to be paid,
absent manifest error. Amounts under this Section 10.2 may be demanded at any time without
regard to the timing of issuance of any financial statement by a Conduit or any Affected
Entity.”



               (e) Section 14.14 of the Receivables Purchase Agreement is hereby
amended by adding a new Section 14.14(c) to the end thereof to read as follows:




     “(c) If, notwithstanding the intention of the parties expressed above, any sale or
transfer by Seller hereunder shall be characterized as a secured loan and not a sale or such
sale shall for any reason be ineffective or unenforceable (any of the foregoing being a
“Recharacterization”), then this Agreement shall be deemed to constitute a security
agreement under the UCC and other applicable law. In the case of any Recharacterization, the
Seller represents and warrants that each remittance of Collections to the Agent or the
Purchasers hereunder will have been (i) in payment of a debt incurred in the ordinary course
of business or financial affairs and (ii) made in the ordinary course of business or
financial affairs.”



               (f) Article 14 of the Receivables Purchase Agreement is hereby
amended by adding a new Section 14.15 to the end thereof to read as follows:




     “Section 14.15. Federal Reserve. Notwithstanding any other provision of this
Agreement to the contrary, any Purchaser may at any time pledge or grant a security interest
in all or any portion of its rights (including, without limitation, any Purchaser Interest
and any rights to payment of Capital and Yield) under this Agreement to secure obligations
of such Purchaser to a Federal Reserve Bank, without notice to or consent of the Seller, any
other Purchaser or the Agent; provided that no such pledge or grant of a security interest
shall release a Purchaser from any of its obligations hereunder, or substitute any such
pledgee or grantee for such Purchaser as a party hereto.”



               (g) The definition of “Applicable Margin” in Exhibit I to the
Receivables Purchase Agreement is deleted in its entirety.



               (h) The
definition of “LIBO Rate” in Exhibit I to the Receivables
Purchase Agreement is amended by replacing “(ii) the “Applicable Margin” that is applicable to
“Revolving Loans” that are “Eurodollar Loans” (in each of the foregoing cases, as defined in the
Tenneco Credit Agreement), per annum” with “(ii) 6.50%, per annum.”



4









 






               (i) The definition of “Loss Reserve Percentage” in Exhibit I to the Receivables
Purchase Agreement is amended by replacing “2.25” with “2.50”.



               (j) The following definitions in the Receivables Purchase Agreement are hereby amended
and restated in their entirety to read, respectively, as follows:




     “Concentration Limit” means, at any time, for any Obligor, 3.6% of the aggregate
Outstanding Balance of all Eligible Receivables after subtracting the Pass Through
Reserve, the Warranty Reserve and the Price Give Back Accrual, or such other higher
amount (a “Special Concentration Limit”) for such Obligor designated by the
Administrative Agent; provided that in the case of an Obligor and any Affiliate of
such Obligor, the Concentration Limit shall be calculated as if such Obligor and such
Affiliate are one Obligor; and provided, further, that any Agent may, upon not
less than ten (10) Business Days’ notice to Seller, cancel any Special Concentration
Limit. As of the Ninth Amendment Effective Date, and subject to cancellation as
described above, (i) any Obligor and its Affiliates shall have a Special Concentration
Limit equal to 6% of aggregate Outstanding Balance of all Eligible Receivables after
subtracting the Pass Through Reserve, the Warranty Reserve and the Price Give Back
Accrual, so long as such Obligor’s long term debt ratings equal or exceed “BBB-” from
Standard & Poor’s, a division of the McGraw-Hill Companies
(“S&P”) and “Baa3” from
Moody’s Investors Service, Inc. (“Moody’s”); and if the Obligor is Genuine Auto Parts
(NAPA), so long as an S&P long term debt shadow rating equal to or in excess of “A-”
is obtained; and (ii) the Special Concentration Limits of (a) Ford Motor Company and
its Affiliates shall be equal to the lesser of 4.5% of Eligible Receivables or 50% of
the Loss Reserve Floor, (b) General Motors Corporation and its Affiliates shall be
equal to the lesser of 4.5% of Eligible Receivables or 50% of the Loss Reserve Floor
and (c) Chrysler Corporation shall be equal to zero (0).




     “Dilution
Reserve” means, on any date of determination, an amount equal to
the greater of (a) 10% of the Net Receivables Balance, and (b) the amount
determined pursuant to the following formula:




{
(SF x ED) + [ (DS – ED) x (DS/ED) ] } x DHR x NRB




where:




SF= 2.50;




ED= Expected Dilution;




DS=
Dilution Spike;


DHR= Dilution Horizon Ratio; and





NRB= Net Receivables Balance.



5









 






     “Liquidity Termination Date” means March 2, 2009.




     “Prime Rate” means a rate per annum equal to the greatest of (a) the prime rate
of interest announced from time to time by the applicable Co-Agent or its parent (which
is not necessarily the lowest rate charged to any customer), changing when and as said
prime rate changes, (b) the Federal Funds Effective Rate plus 1.50% and (c) the LIBO
Rate.




     “Tenneco Credit Agreement” means that certain Second Amended and Restated Credit
Agreement dated as of March 16, 2007 (amending and restating the credit agreement dated
as of December 12, 2003 (amending and restating the credit agreement dated as of
September 30,1999)) (as amended, supplemented or otherwise modified from time to time)
by and among Tenneco Automotive Inc., the several lenders from time to time parties
thereto, JPMorgan Chase Bank as Administrative Agent for the lenders, and the other
financial institutions named therein as agents for the lenders.



               (k) The following definitions are hereby inserted into Exhibit I to the Receivables
Purchase Agreement in their appropriate alphabetical order:




     “AccountingBased Consolidation Event” means the consolidation, for financial
and/or regulatory accounting purposes, of all or any portion of the assets and
liabilities of any Conduit that is subject to this Agreement or any other Transaction
Document with all or any portion of the assets and liabilities of a Funding Source. An
Accounting Based Consolidation Event shall be deemed to occur on the date any Funding
Source shall acknowledge in writing that any such consolidation of the assets and
liabilities of a Conduit shall occur.




     “AffectedEntity” means (i) any Funding Source, (ii) any agent, administrator
or manager of a Conduit or (iii) any bank holding company in respect of any of the
foregoing.


          3. Certain Representations. In order to induce the Agents and the Purchasers
to enter into this Amendment, each of the Seller Parties hereby represents and warrants to the
Agents and the Purchasers that after giving effect to the amendments contained in Section 2
hereof, (a) no Amortization Event or Potential Amortization Event exists and is continuing as of
the date hereof, (b) the Receivables Purchase Agreement, as amended hereby, constitutes the
legal, valid and binding obligation of such Seller Party enforceable against it in accordancewith
its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws relating to or limiting creditors’ rights generally and by
general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law and (c) each of such Seller Party’s representations and warranties contained in
the Receivables Purchase Agreement is true and correct as of the date hereof as though made on
such date (except for such representations and warranties that speak only as of an earlier date).



          4. Effective Date. This Amendment shall become effective as of the date
first above written (the “Ninth Amendment Effective Date”) upon (a) receipt by the




6









 







Administrative Agent of counterparts of this Amendment, duly executed by each of the parties
hereto, and consented to by the Performance Guarantor in the space provided below, (b) receipt by
the Administrative Agent of counterparts of an eighth amendment and restatement of the Fee Letter,
duly executed by the Agents and the seller, (c) receipt by Falcon and the Liberty Street Agent of
their applicable Amendment Fee (under and as defined in the Fee Letter), (d) receipt by the Falcon
Agent of an amendment to the Falcon Liquidity Agreement, duly executed by the parties thereto, (e)
receipt by the Liberty Street Agent of an amendment and restatement to the Liberty Street Liquidity
Agreement, duly executed by the parties thereto, (f) receipt by Administrative Agent of
counterparts to the Tenneco Automotive Operating Company Inc. Amendment #1 to Receivables Sale
Agreement, duly executed by each of the parties thereto and (g) receipt by Administrative Agent of
counterparts to The Pullman Company Amendment #1 to Receivables Sale Agreement, duly executed by
each of the parties thereto, and with respect to each of the foregoing, all in form and substance
acceptable to the applicable Agents.




          5. Ratification. Except as expressly modified hereby, the Receivables
Purchase Agreement is hereby ratified, approved and confirmed in all respects.




          6. Reference to Agreement. From and after the Ninth Amendment Effective
Date hereof, each reference in the Receivables Purchase Agreement to “this Agreement”,
“hereof”, or “hereunder” or words of like import, and all references to the Receivables
Purchase
Agreement in any and all agreements, instruments, documents, notes, certificates and other
writings of every kind and nature shall be deemed to mean the Receivables Purchase Agreement,
as amended by this Amendment.




          7. Costs and Expenses. The Seller agrees to pay all reasonable costs, fees,
and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys
for the Agents, which attorneys may be employees of an Agent) incurred by the Agent in
connection with the preparation, execution and enforcement of this Amendment.




          8. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS)
OF THE STATE OF ILLINOIS.




          9. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.





7









 








          IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.



	 	 	 	 	 	 	 
	 	 	FALCON ASSET SECURITIZATION	 	 
	 	 	COMPANY LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	JPMorgan Chase Bank, N.A., Its
Attorney-In-Fact	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John M. Kuhns
 

	 	 
	 

	 	Name:
	 	John M. Kuhns	 	 
	 

	 	Title:
	 	Executive Director	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
N.A., as a	 	 
	 	 	Committed Purchaser, as Falcon Agent and as	 	 
	 	 	Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John M. Kuhns	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	 John M. Kuhns	 	 
	 

	 	Title:
	 	 Executive Director	 	 






[Signature Page to Amendment #9 to Second A&R Receivables Purchase Agreement]






 









 








	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA
SCOTIA , as a	 	 
	 	 	Committed Purchaser and as Liberty Street Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Darren Ward
 

Darren Ward
	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	LIBERTY STREET FUNDING LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jill A. Russo	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jill A. Russo	 	 
	 

	 	Title:
	 	Vice President	 	 






[Signature Page to Amendment #9 to Second A&R Receivables Purchase Agreement]





 









 








	 	 	 	 	 	 	 
	 	 	TENNECO AUTOMOTIVE
RSA COMPANY,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John E. Kunz
 

	 	 
	 

	 	Name:
	 	John E. Kunz	 	 
	 

	 	Title:
	 	President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TENNECO AUTOMOTIVE OPERATING	 	 
	 	 	COMPANY INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gary Silha	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Gary Silha	 	 
	 

	 	Title:
	 	 Assistant Treasurer	 	 





By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered
and in full force and effect:




	 	 	 	 	 	 	 
	 	 	TENNECO INC., a Delaware corporation	 	 
	 
	 

	 	By:
	 	/s/ John E. Kunz
 

	 	 
	 

	 	Name:
	 	John E. Kunz	 	 
	 

	 	Title:
	 	Vice President– Treasurer & Tax	 	 






[Signature Page to Amendment #9 to Second A&R Receivables Purchase Agreement]





 












 





EXECUTION VERSION




AMENDMENT NO. 10 TO SECOND AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT




          THIS AMENDMENT NO. 10 TO SECOND AMENDED AND RESTATED
Receivables Purchase Agreement, dated as of February 23, 2009 (this “Amendment”), is by and among:




          (a) Tenneco Automotive RSA Company, a Delaware corporation (“Seller”),




          (b) Tenneco Automotive Operating Company Inc., a Delaware corporation, as initial Servicer (“Tenneco Operating” and, together with Seller, the “Seller Parties”),




          (c) Falcon Asset Securitization Company LLC, a Delaware limited liability company as assignee of Jupiter Securitization Company LLC (“Falcon” or a “Conduit”),




          (d) Liberty Street Funding LLC, a Delaware limited liability company
formerly known as Liberty Street Funding Corp., a Delaware corporation (“Liberty Street” or a
“Conduit”),




          (e) The Bank of Nova Scotia, a Canadian chartered bank acting through its
New York Agency, individually (together with Liberty Street, the “Liberty Street Group”), and
in its capacity as agent for the Liberty Street Group (a “Co-Agent”), and




          (f) JPMorgan Chase Bank, N.A., individually (the “Falcon Committed
Purchaser” and, together with Falcon, the “Falcon Group”), in its capacity as agent for the
Falcon Group (a “Co-Agent”), and in its capacity as administrative agent for the Falcon Group,
the Liberty Street Group and each Co-Agent (in such capacity, together with its successors and
assigns, the “Administrative Agent” and, together with each of the Co-Agents, the “Agents”).




W I T N E S S E T H:




          WHEREAS, the Seller Parties, the Liberty Street Group, the Falcon Group and the Agents are
parties to that certain Second Amended and Restated Receivables Purchase Agreement dated as of May
4, 2005, as heretofore amended (the “Receivables Purchase Agreement”);




          WHEREAS, the parties wish to amend the Receivables Purchase Agreement and reduce and extend
the facility evidenced thereby on the terms and subject to the conditions set forth herein; and




          WHEREAS, the Purchasers and Agents are willing to agree to such amendments and extension
subject to the terms and conditions set forth herein;




          NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:




 









 





          1. Defined Terms. Capitalized terms used herein and not otherwise defined
shall have their meanings as attributed to such terms in the Receivables Purchase Agreement.




          2. Amendments.




               (a) All references in the Receivables Purchase Agreement to “Liberty
Street Co-Agent” are hereby replaced with references to “Liberty Street Agent”.



               (b) Section 9.1 (i) of the Receivables Purchase Agreement is hereby
amended and restated in its entirety to read as follows:




     (i) (x) The Consolidated Net Leverage Ratio (as defined in the Tenneco
Credit Agreement) as at the last day of any period of four consecutive fiscal quarters
of Tenneco Automotive ending with any fiscal quarter during any period set forth below
shall exceed the ratio set forth below opposite use period:



	 	 	 	 	 
	 	 	Consolidated Net
	Period	 	Leverage Ratio
	Fourth Quarter 2008
	 	 	4.25 to 1.00	 
	First Quarter 2009
	 	 	5.50 to 1.00	 
	Second Quarter 2009
	 	 	7.35 to 1.00	 
	Third Quarter 2009
	 	 	7.90 to 1.00	 
	Fourth Quarter 2009
	 	 	6.60 to 1.00	 
	First Quarter 2010
	 	 	5.50 to 1.00	 
	Second Quarter 2010
	 	 	5.00 to 1.00	 
	Third Quarter 2010
	 	 	4.75 to 1.00	 
	Fourth Quarter 2010
	 	 	4.50 to 1.00	 
	First Quarter 2011
	 	 	4.00 to 1.00	 
	Second Quarter 2011
	 	 	3.75 to 1.00	 
	Third and Fourth Quarters 2011
	 	 	3.50 to 1.00	 
	Fiscal Year 2012 and thereafter
	 	 	3.50 to 1.00	 






          or





          (y) The Consolidated Interest Coverage Ratio (as defined in the Tenneco Credit
Agreement) for any period of four consecutive fiscal quarters of Tenneco Automotive
ending with any fiscal quarter during any period set forth below to be less than the
ratio set forth below opposite such period:



	 	 	 	 	 
	 	 	Consolidated
	 	 	Interest
	Period	 	Coverage Ratio
	Fourth Quarter 2008
	 	 	2.10 to 1.00	 
	First Quarter 2009
	 	 	2.25 to 1.00	 
	Second Quarter 2009
	 	 	1.85 to 1.00	 
	Third Quarter 2009
	 	 	1.55 to 1.00	 
	Fourth Quarter 2009
	 	 	1.60 to 1.00	 






2









 





	 	 	 	 	 
	 	 	Consolidated
	 	 	Interest
	Period	 	Coverage Ratio
	First Quarter 2010
	 	 	2.00 to 1.00	 
	Second Quarter 2010
	 	 	2.25 to 1.00	 
	Third Quarter 2010
	 	 	2.30 to 1.00	 
	Fourth Quarter 2010
	 	 	2.35 to 1.00	 
	First Quarter 2011
	 	 	2.55 to 1.00	 
	Second Quarter 2011
	 	 	2.55 to 1.00	 
	Third and Fourth Quarters 2011
	 	 	2.55 to 1.00	 
	Fiscal Year 2012 and thereafter
	 	 	2.75 to 1.00	 






               (c) The following definitions in the Receivables Purchase Agreement
are hereby amended and restated in their entirety to read, respectively, as follows:



          “Liquidity
Termination Date” means February 22, 2010.


          “Purchase
Limit” means $100,000,000.


          “Tenneco
Automotive”  means Tenneco Inc., a Delaware corporation.


     “Tenneco
Credit Agreement”  means that certain Second Amended and Restated Credit
Agreement dated as of March 16, 2007 (amending and restating the credit agreement
dated as of December 12, 2003 (amending and restating the credit agreement dated as of
September 30, 1999)) (as amended, restated, supplemented or otherwise modified from
time to time) by and among Tenneco Automotive, the several lenders from time to time
parties thereto, JPMorgan Chase Bank as Administrative Agent for the lenders, and the
other financial institutions named therein as agents for the lenders.



               (d) Schedule A
to the Receivables Purchase Agreement is hereby amended and restated in its entirety to read as follows:


SCHEDULE A


COMMITMENTS OF COMMITTED PURCHASERS



	 	 	 	 	 	 	 	 	 
	Group	 	Committed Purchaser	 	Commitment
	Falcon Group
	 	JPMorgan Chase Bank, N.A.	 	$	57,120,000	 
	Liberty Street Group
	 	The Bank of Nova Scotia,	 	 	 	 
	 
	 	New York Agency	 	$	44,880,000	 





          3. Waiver. Each of the Agents hereby waives (a) any breach of Section
7.1(a)(i)(A) of the Receivables Purchase Agreement resulting from the existence of a “going


3








 







concern” or like qualification or exception in the auditor’s report accompanying the financial
statements delivered pursuant to such Section for the fiscal year ending December 31, 2008 if any
such “going concern” or like qualification or exception is based in whole or significant part on
conditions in the automotive industry, including without limitation uncertainty regarding Tenneco
Automotive’s level of business with certain major customers and (b) any Amortization Event under
Section 9.1(a)(ii) of the Receivables Purchase Agreement arising from the non-compliance with
Section 7.1(a)(i)(A) of the Receivables Purchase Agreement solely as a result of the existence of a
“going concern” or like qualification or exception in the auditor’s report accompanying the
financial statements delivered pursuant to Section 7.1(a)(i)(A) for the fiscal year ending December
31, 2008 if any such “going concern” or like qualification or exception is based in whole or
significant part on conditions in the automotive industry, including without limitation uncertainty
regarding Tenneco Automotive’s level of business with certain major customers. The limited waivers
set forth in this Section 3 of the Amendment are effective solely for the purposes set forth herein
and shall not, except as expressly provided herein, be deemed to (i) be a consent to any amendment,
waiver or modification of any term or condition of the Receivables Purchase Agreement or of any
other Transaction Document, (ii) prejudice any right or rights that the Agents, Conduits or
Committed Purchasers may have or may have in the future under or in connection with the Receivables
Purchase Agreement or any other Transaction Document, (iii) waive compliance with Section
7.1(a)(i)(A) of the Receivables Purchase Agreement with respect to any other matter for the period
ending December 31, 2008 or (iv) waive compliance with Section 7.1(a)(i)(A) of the Receivables
Purchase Agreement for any period ending after December 31, 2008.




          4. Certain Representations. In order to induce the Agents and the Purchasers
to enter into this Amendment, each of the Seller Parties hereby represents and warrants to the
Agents and the Purchasers that after giving effect to the amendments contained in Section 2
hereof and the limited waiver contained in Section 3 hereof, (a) no Amortization Event or
Potential Amortization Event exists and is continuing as of the date hereof, (b) the
Receivables
Purchase Agreement, as amended hereby, constitutes the legal, valid and binding obligation of
such Seller Party enforceable against it in accordance with its terms, except as such
enforcement
may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws
relating to or limiting creditors’ rights generally and by general principles of equity
(regardless
of whether enforcement is sought in a proceeding in equity or at law and (c) each of such
Seller
Party’s representations and warranties contained in the Receivables Purchase Agreement is true
and correct as of the date hereof as though made on such date (except for such representations
and warranties that speak only as of an earlier date).




          5.
Effective Date. This Amendment shall become effective as of the date
first above written (the “Tenth Amendment Effective Date”) upon (a) receipt by the
Administrative Agent of counterparts of this Amendment, duly executed by each of the parties
hereto, and consented to by the Performance Guarantor in the space provided below, (b) receipt
by Falcon of a $273,280 fully-earned, non-refundable extension fee in immediately available
funds, (c) receipt by Liberty Street Agent of a $214,720 fully-earned, non-refundable
extension
fee in immediately available funds, (d) receipt by the Falcon Agent of an amendment to the
Falcon Liquidity Agreement, duly executed by the parties thereto, (e) receipt by the Liberty
Street Agent of an amendment to the Liberty Street Liquidity Agreement, duly executed by the


4








 




parties thereto, and (f) receipt by Latham & Watkins LLP, special counsel to the Agents, of all of
its fees and expenses outstanding with respect to its representation of the Agents.




          6.
Ratification. Except as expressly modified hereby, the
Receivables Purchase Agreement is hereby ratified, approved and confirmed in all respects.


          7.
Reference to Agreement. From and after the Tenth Amendment Effective
Date hereof, each reference in the Receivables Purchase Agreement to
“this Agreement”, “hereof”, or “hereunder” or words of like import, and all references to the Receivables
Purchase
Agreement in any and all agreements, instruments, documents, notes, certificates and other
writings of every kind and nature shall be deemed to mean the Receivables Purchase Agreement,
as amended by this Amendment.


          8.
Costs and Expenses. The Seller agrees to pay all reasonable costs, fees,
and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys
for the Agents, which attorneys may be employees of an Agent) incurred by the Agent in
connection with the preparation, execution and enforcement of this Amendment.


          9.
CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS)
OF THE STATE OF ILLINOIS.


          10. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.


5








 




     IN WITNESS
WHEREOF, the parties have executed this Amendment as of the date first above
written.



	 	 	 	 	 	 	 
	 	 	FALCON ASSET SECURITIZATION	 	 
	 	 	COMPANY LLC	 	 
	 
	 	 	 	 	 	 
	 	 	BY: JPMorgan Chase Bank, N.A., Its Attorney-In-Fact	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
Name:	 	/s/  John M. Kuhns
 

John M. Kuhns	 	 
	 

	 	Title:
	 	Executive Director	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as a	 	 
	 	 	Committed Purchaser, as Falcon Agent and as	 	 
	 	 	Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John M. Kuhns
 

John M. Kuhns	 	 
	 

	 	Title:
	 	Executive Director	 	 





[Signature Page to Amendment #10 to Second A&R Receivables Purchase Agreement]


 








 





	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, as a	 	 
	 	 	Committed Purchaser and as Liberty Street Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ J. Alan Edwards
 

J. Alan Edwards	 	 
	 

	 	Title:	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	LIBERTY STREET FUNDING LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Jill A. Russo
 

Jill A. Russo	 	 
	 
	 	Title:	 	Vice President	 	 





[Signature Page to Amendment #10 to Second A&R Receivables Purchase Agreement]


 








 





	 	 	 	 	 	 	 
	 	 	TENNECO AUTOMOTIVE RSA COMPANY,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John E. Kunz
 

John E. Kunz	 	 
	 

	 	Title:
	 	Pesident and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	TENNECO AUTOMOTIVE OPERATING	 	 
	 	 	COMPANY INC.,  a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Gary Silha
 

Gary Silha
	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 





By its signature below, the undersigned hereby consents to the terms of the foregoing Amendment and
hereby confirms that its Performance Undertaking remains unaltered and in
full force and effect:



	 	 	 	 	 	 	 
	 	 	TENNECO INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ John E. Kunz
 

John E. Kunz	 	 
	 

	 	Title:
	 	Vice President – Treasurer & Tax	 	 





[Signature Page to Amendment
#10 to Second A&R Receivables Purchase Agreement]