Document:

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                             INTERCREDITOR AGREEMENT

                  INTERCREDITOR AGREEMENT, dated as of June 19, 2003, among
JPMORGAN CHASE BANK, as Credit Agent, WACHOVIA BANK, NATIONAL ASSOCIATION, as
Trustee and as Collateral Agent, and TENNECO AUTOMOTIVE, INC.

                               W I T N E S S E T H

                  WHEREAS, the Company (such term and each other capitalized
term used herein having the meanings set forth in Section 1 below), certain
lenders (including lenders acting as syndication agent and co-documentation
agents), and JPMorgan Chase Bank, as administrative agent and collateral agent,
are parties to the Credit Agreement dated as of September 30, 1999, as amended
to the date hereof (as further amended, supplemented or otherwise modified from
time to time in a manner consistent with the definition of "Credit Agreement"
below, the "Existing Credit Agreement");

                  WHEREAS, the Obligations of the Company under the Credit
Agreement are secured (together with certain other obligations) by various
assets of the Company and certain Subsidiaries thereof;

                  WHEREAS, the Company, certain Subsidiaries of the Company and
the Trustee have entered into the Indenture dated as of June 19, 2003 (as
amended, supplemented or otherwise modified from time to time, the "Indenture"),
pursuant to which the Company intends to issue the Notes;

                  WHEREAS, the Company and certain lenders under the Existing
Credit Agreement have entered into the Fourth Amendment dated as of May 29, 2003
(the "Fourth Amendment"), to the Existing Credit Agreement that, among other
things, permits, subject to certain terms and conditions, (a) the issuance of
the Notes by the Company and (b) a second priority Lien on the Common Collateral
to secure the Second Priority Claims; and

                  WHEREAS, it is a condition precedent to the effectiveness of
the Fourth Amendment that the parties hereto enter into this Agreement;

                  NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants and obligations herein set forth and for other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:

         SECTION 1. (a) Definitions. As used in this Agreement, the following
terms have the meanings specified below:

                  "Agreement" means this Agreement, as amended, renewed,
         extended, supplemented or otherwise modified from time to time in
         accordance with the terms hereof.

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                   "Bankruptcy Law" means Title 11 of the United States Code and
         any similar Federal, state or foreign law for the relief of debtors.

                  "Business Day" means any day other than a Saturday, a Sunday
         or a day that is a legal holiday under the laws of the State of New
         York or on which banking institutions in the State of New York are
         required or authorized by law or other governmental action to close.

                  "Cash Management Obligations " means, with respect to any
         Person, all obligations of such Person in respect of overdrafts and
         related liabilities owed to any other Person that arise from treasury,
         depositary or cash management services, including in connection with
         any automated clearing house transfers of funds, or any similar
         transactions.

                  "Common Collateral" means all of the assets of any Grantor,
         whether real, personal or mixed, constituting both First Priority
         Collateral and Second Priority Collateral.

                  "Company" means Tenneco Automotive Inc.

                  "Comparable Second Priority Collateral Document" means, in
         relation to any Common Collateral subject to any Lien created under any
         First Priority Collateral Document, that Second Priority Collateral
         Document which creates a Lien on the same Common Collateral, granted by
         the same Grantor.

                  "Credit Agent" means (i) JPMorgan Chase Bank in its capacity
         as collateral agent under the Existing Credit Agreement and the Loan
         Documents (as defined therein) and also includes its successors
         thereunder as collateral agent for the First Priority Lenders (or if
         there is more than one agent, a majority of them) under the First
         Priority Documents exercising substantially the same rights and powers,
         or if there is no acting Credit Agent under the Existing Credit
         Agreement, the Required Lenders or, if designated by the Credit Agent
         under the Existing Credit Agreement, the lead agent under any other
         First-Lien Credit Facility; and (ii) if the Existing Credit Agreement
         is no longer the Senior Credit Agreement, the financial institution
         then acting as lead agent or collateral agent (in its capacity as such)
         under the Senior Credit Agreement and the related loan documents and
         also includes its successors thereunder as lead agent or collateral
         agent for the First Priority Lenders thereunder (or if there is more
         than one agent, a majority of them) under such First Priority Documents
         exercising substantially the same rights and powers, or if there is no
         acting lead agent or collateral agent under the Senior Credit
         Agreement, First Priority Lenders thereunder holding more than 50% of
         the aggregate outstanding term Indebtedness and revolving credit
         commitments thereunder.

                  "Credit Agreement" means the Existing Credit Agreement,
         together with any documents evidencing or governing any Obligations
         relating thereto (including, without limitation, any guarantee
         agreements and security documents), in each case as such agreements may
         be amended (including any amendment and restatement thereof),
         supplemented or otherwise modified from time to time, including any
         agreement

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         extending the maturity of, refinancing, replacing or otherwise
         restructuring (including increasing the amount of available borrowings
         thereunder (provided that such increase in borrowings is permitted by
         Section 4.03 of the Indenture) or adding Subsidiaries as additional
         borrowers or guarantors thereunder) all or any portion of the
         Indebtedness under such agreement or any successor or replacement
         agreement and whether by the same or any other agent, lender or group
         of lenders. Notwithstanding the foregoing, the Notes and the Indenture
         shall not constitute a Credit Agreement.

                  "Credit Facilities" means one or more debt facilities
         (including the Credit Agreement) or commercial paper facilities
         providing for revolving credit loans, term loans, receivables financing
         (including through the sale of receivables to lenders or to special
         purpose entities formed to borrow from lenders against such
         receivables) or letters of credit, or any debt securities or other form
         of debt financing (including convertible or exchangeable debt
         instruments), in each case, as amended, supplemented, modified,
         extended, renewed, restated or refunded in whole or in part from time
         to time.

                  "Designated Second Priority Agent" means at any time the
         Trustee or such other Second Priority Agent as shall be designated by
         all Second Priority Agents to act as Designated Second Priority Agent,
         as such other Second Priority Agent shall be identified in a
         certificate executed by all Second Priority Agents and delivered to the
         Administrative Agent.

                   "Discharge of First Priority Claims" means, except to the
         extent otherwise provided in Section 5.6, payment in full in cash of
         (a) the principal of and interest and premium, if any, on all
         Indebtedness outstanding under the First-Lien Credit Facilities or,
         with respect to letters of credit outstanding thereunder, delivery of
         cash collateral or backstop letters of credit in respect thereof in
         compliance with such First-Lien Credit Facilities, as applicable, in
         each case after or concurrently with termination of all commitments to
         extend credit thereunder and (b) any other First Priority Claims that
         are due and payable or otherwise accrued and owing at or prior to the
         time such principal and interest are paid.

                  "Existing Credit Agreement" has the meaning set forth in the
         recitals hereto.

                  "First-Lien Credit Facilities" means (a) the Credit Facilities
         provided pursuant to the Credit Agreement and (b) any other Credit
         Facility, that, in the case of both clauses (a) and (b), is secured by
         a Lien permitted by clause (B) of Section 4.15 of the Indenture.

                  "First Priority Cash Management Obligations" means any Cash
         Management Obligations secured by any Common Collateral under the same
         First Priority Collateral Documents that secure Obligations under the
         Senior Credit Agreement.

                  "First Priority Claims" means (a) all Obligations under the
         Credit Agreement, (b) all Obligations under one or more First-Lien
         Credit Facilities (other than the Credit Facilities provided pursuant
         to the Credit Agreement), the Indebtedness under each of which is
         designated by the Company as "First Priority Claims" for purposes of
         the Indenture, provided that the First Priority Lenders under each
         First-Lien Credit Facility

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         then in effect have consented to such designation pursuant to the
         provisions of the First Priority Documents then in effect, (c) all
         other Obligations of the Company or any other Grantor under the First
         Priority Documents, including all First Priority Hedging Obligations
         and First Priority Cash Management Obligations and (d) all Future Other
         First-Lien Obligations. Except as provided in the last sentence of this
         definition, any Obligations described in the preceding sentence shall
         constitute First Priority Claims only to the extent such Obligations
         are permitted pursuant to the Indenture. First Priority Claims shall
         include all interest accrued or accruing (or which would, absent the
         commencement of an Insolvency or Liquidation Proceeding, accrue) after
         the commencement of an Insolvency or Liquidation Proceeding in
         accordance with and at the rate specified in the relevant First
         Priority Document whether or not the claim for such interest is allowed
         as a claim in such Insolvency or Liquidation Proceeding. To the extent
         any payment with respect to the First Priority Claims (whether by or on
         behalf of any Grantor, as proceeds of security, enforcement of any
         right of set-off or otherwise) is declared to be fraudulent or
         preferential in any respect, set aside or required to be paid to a
         debtor in possession, trustee, receiver or similar Person, then the
         obligation or part thereof originally intended to be satisfied shall be
         deemed to be reinstated and outstanding as if such payment had not
         occurred. Notwithstanding the foregoing the Notes and related
         Obligations will not constitute First Priority Claims and Collateral
         therefor will not constitute First Priority Collateral even if any
         proceeds of the Notes are used to repay Obligations under the Credit
         Agreement. Notwithstanding anything to the contrary contained in this
         definition, any Obligation under a First Priority Document (including
         any Cash Management Obligations or Hedging Obligations) shall
         constitute a "First Priority Claim" if the Credit Agent or the relevant
         First Priority Lender or First Priority Lenders under such First
         Priority Document shall have received a written representation from the
         Company in or in connection with such First Priority Document that such
         Obligation constitutes a "First Priority Claim" under and as defined in
         the Indenture (whether or not such Obligation is at any time determined
         not to have been permitted to be incurred under the Indenture).

                  "First Priority Collateral" means all of the assets of any
         Grantor, whether real, personal or mixed, with respect to which a Lien
         is granted or held as security for any First Priority Claim.

                  "First Priority Collateral Documents" means any agreement,
         document or instrument pursuant to which a Lien is granted securing any
         First Priority Claims or under which rights or remedies with respect to
         such Liens are governed.

                  "First Priority Documents" means the Credit Agreement, the
         First Priority Collateral Documents, and each of the other agreements,
         documents and instruments (including each agreement, document or
         instrument providing for or evidencing a First Priority Hedging
         Obligation or First Priority Cash Management Obligation) providing for
         or evidencing any Obligation under the Credit Agreement or any other
         First-Lien Credit Facility or any Future Other First-Lien Obligations,
         and any other related document or instrument executed or delivered
         pursuant to any First Priority Document at any time or otherwise
         evidencing any First Priority Claims.

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                  "First Priority Hedging Obligations" means any Hedging
         Obligations secured by any Common Collateral under the same First
         Priority Collateral Documents that secure Obligations under the Senior
         Credit Agreement.

                  "First Priority Lenders" means the Persons holding First
         Priority Claims, including the Credit Agent.

                  "First Priority Liens"means all Liens that secure First
         Priority Claims

                  "Future Other First-Lien Obligations" means all Obligations of
         the Company or any other Grantor in respect of Cash Management
         Obligations or Hedging Obligations that are designated by the Company
         as "First Priority Claims" for purposes of the Indenture (other than
         any First Priority Cash Management Obligations and First Priority
         Hedging Obligations); provided that the required lenders (however
         denominated) under any Senior Credit Agreement then in effect have
         consented to such designation.

                  "Grantors" means each of the Company and the Subsidiaries that
         has executed and delivered a First Priority Collateral Document or a
         Second Priority Collateral Document.

                  "Hedging Obligations" means, with respect to any Person, the
         obligations of such Person in respect of (a) interest rate or currency
         swap agreements, interest rate or currency cap agreements, interest
         rate or currency collar agreements, or (b) other agreements or
         arrangements designed to protect such Person against fluctuations in
         interest rates and/or currency exchange rates.

                   "Indebtedness" means and includes all Obligations that
         constitute "Indebtedness" within the meaning of the Indenture or the
         Senior Credit Agreement.

                  "Indenture" has the meaning set forth in the recitals hereto.

                  "Insolvency or Liquidation Proceeding" means (a) any voluntary
         or involuntary case or proceeding under any Bankruptcy Law with respect
         to any Grantor, (b) any other voluntary or involuntary insolvency,
         reorganization or bankruptcy case or proceeding, or any receivership,
         liquidation, reorganization or other similar case or proceeding with
         respect to any Grantor or with respect to any of their respective
         assets, (c) any liquidation, dissolution, reorganization or winding up
         of any Grantor whether voluntary or involuntary and whether or not
         involving insolvency or bankruptcy or (d) any assignment for the
         benefit of creditors or any other marshalling of assets and liabilities
         of any Grantor.

                  "Lien" means, with respect to any asset, (a) any mortgage,
         deed of trust, lien, pledge, hypothecation, encumbrance, charge or
         security interest in, on or of such asset, (b) the interest of a vendor
         or a lessor under any conditional sale agreement, capital lease or
         title retention agreement (or any financing lease having substantially
         the same economic effect as any of the foregoing) relating to such
         asset and (c) in the case of securities, any purchase option, call or
         similar right of a third party with respect to such securities.

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                  "Noteholders" means the Persons holding Notes from time to
         time.

                  "Notes" means (a) the 10 1/4% Senior Secured Notes due 2013 to
         be issued by the Company, (b) the exchange notes issued in exchange
         therefor as contemplated by the Registration Rights Agreement dated as
         of June 19, 2003, among the Company and the Initial Purchasers (as
         defined therein) and (c) any additional notes issued under the
         Indenture by the Company, to the extent permitted by the Indenture and
         the Senior Credit Agreement.

                  "Obligations" means any and all obligations with respect to
         the payment of (a) any principal of or interest (including interest
         accruing on or after the commencement of any Insolvency or Liquidation
         Proceeding, whether or not a claim for post-filing interest is allowed
         in such proceeding) or premium on any Indebtedness, including any
         reimbursement obligation in respect of any letter of credit, (b) any
         fees, indemnification obligations, damages, expense reimbursement
         obligations or other liabilities payable under the documentation
         governing any Indebtedness, (c) any obligation to post cash collateral
         in respect of letters of credit and any other obligations or (d) any
         Cash Management Obligations or Hedging Obligations.

                  "Other Second-Lien Obligations" has the meaning set forth in
         the Indenture; provided that (a) no Obligations with respect to any
         Indebtedness shall be an "Other Second-Lien Obligation" unless such
         Obligation is permitted by the Senior Credit Agreement and is secured
         by a Lien permitted by the Senior Credit Agreement and (b) such
         Obligations (except for the Notes and related Obligations) are
         designated by the Company as "Other Second-Lien Obligations" for
         purposes of the Indenture.

                  "Person" means any natural person, corporation, limited
         liability company, trust, joint venture, association, company,
         partnership, entity or other party, including any government and any
         political subdivision, agency or instrumentality thereof.

                  "Pledged Collateral" means (a) the "Pledged Securities" under,
         and as defined in, the Second Priority Security Agreement, and (b) any
         other Common Collateral in the possession of the Credit Agent (or its
         agents or bailees), to the extent that possession thereof is necessary
         to perfect a Lien thereon under the Uniform Commercial Code.

                  "Recovery" has the meaning set forth in Section 6.5 hereof.

                  "Required Lenders" means, with respect to any amendment or
         modification of the Senior Credit Agreement, or any termination or
         waiver of any provision of the Senior Credit Agreement, or any consent
         or departure by the Company or any of the Subsidiaries therefrom, those
         First Priority Lenders the approval of which is required to approve
         such amendment or modification, termination or waiver or consent or
         departure.

                  "Second Priority Agent" means each of the Trustee and each
         other Person which acts as trustee, lead agent, administrative agent or
         collateral agent for any Second Priority Lenders and, if any Second
         Priority Claims do not have a trustee, lead agent, administrative agent
         or collateral agent, the representative appointed by the holders of at
         least a majority of such Second Priority Claims.

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                   "Second Priority Claims" means all Obligations in respect of
         the Notes or arising under the Second Priority Documents or any of
         them. Second Priority Claims shall include all interest accrued (or
         which would, absent the commencement of an Insolvency or Liquidation
         Proceeding, accrue) after the commencement of an Insolvency or
         Liquidation Proceeding in accordance with and at the rate specified in
         the relevant Second Priority Document whether or not the claim for such
         interest is allowed as a claim in such Insolvency or Liquidation
         Proceeding. To the extent any payment with respect to the Second
         Priority Claims (whether by or on behalf of any Grantor, as proceeds of
         security, enforcement of any right of setoff or otherwise) is declared
         to be fraudulent or preferential in any respect, set aside or required
         to be paid to a debtor in possession, trustee, receiver or similar
         Person, then the obligation or part thereof originally intended to be
         satisfied shall be deemed to be reinstated and outstanding as if such
         payment had not occurred.

                  "Second Priority Collateral" means all of the assets of any
         Grantor, whether real, personal or mixed, with respect to which a Lien
         is granted or held as security for any Second Priority Claim.

                  "Second Priority Collateral Documents" means the Second
         Priority Security Agreement, the Second Priority Mortgages and any
         other document or instrument pursuant to which a Lien is granted by any
         Grantor to secure any Second Priority Claims or under which rights or
         remedies with respect to any such Lien are governed.

                  "Second Priority Documents" means (a) the Indenture, the
         Notes, the Second Priority Collateral Documents and each of the other
         agreements, documents or instruments evidencing or governing any Other
         Second-Lien Obligations and (b) any other related documents or
         instruments executed and delivered pursuant to any Second Priority
         Document described in clause (a) above evidencing or governing any
         Obligations thereunder.

                  "Second Priority Lenders" means the Persons holding Second
         Priority Claims, including the Noteholders, the Trustee, the other
         Second Priority Agents, if any, and any other agent, representative or
         Second Priority Agent for any of the foregoing.

                   "Second Priority Mortgages" means a collective reference to
         each mortgage, deed of trust, deed to secure debt and any other
         document or instrument under which any Lien on real property owned by
         any Grantor is granted to secure any Second Priority Claims or under
         which rights or remedies with respect to any such Liens are governed.

                   "Second Priority Security Agreement" means the Collateral
         Agreement, dated as of June 19, 2003, among the Company, the other
         Grantors and the Trustee.

                  "Senior Credit Agreement" means the Existing Credit Agreement;
         provided that if at any time a Discharge of First Priority Claims
         occurs with respect to the Existing Credit Agreement (without giving
         effect to Section 5.6), then, to the extent provided in Section 5.6,
         the term "Senior Credit Agreement" means the First-Lien Credit Facility
         designated

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         by the Company as the "Senior Credit Agreement" in accordance with such
         Section (it being understood that only one Senior Credit Agreement may
         be in effect at any time).

                  "Subsidiary" means any "Subsidiary" of the Company, as defined
         in the Indenture or the Senior Credit Agreement.

                  "Trustee" means Wachovia Bank, National Association, in its
         capacity as trustee under the Indenture and collateral agent under the
         Second Priority Collateral Documents, and also includes its successors
         hereunder as collateral agent or trustee for the Noteholders.

                  "Uniform Commercial Code" or "UCC" means the Uniform
         Commercial Code as from time to time in effect in the State of New
         York.

                  (b) Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (i) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified, (ii) any reference herein to any Person
shall be construed to include such Person's successors and assigns, (iii) the
words "herein", "hereof" and "hereunder", and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (iv) all references herein to Sections shall be construed to
refer to Sections of this Agreement and (v) the words "asset" and "property"
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights. When used in reference to a Second Priority Agent,
the phrase "applicable Second Priority Lenders" shall mean the Second Priority
Lenders for whom such Second Priority Agent acts as agent, trustee or
representative; the phrase "applicable Second Priority Document" means the
Second Priority Documents under which such Second Priority Agent acts as agent,
trustee or representative; and the phrase "applicable Second Priority Claims"
means the Second Priority Claims of such Second Priority Agent and the Second
Priority Lenders for whom it acts as agent, trustee or representative.

         SECTION 2. Lien Priorities

                  2.1 Subordination. Notwithstanding the date, manner or order
of grant, attachment or perfection of any Liens granted to the Second Priority
Agents or the Second Priority Lenders on the Common Collateral or of any Liens
granted to the Credit Agent or the First Priority Lenders on the Common
Collateral and notwithstanding any provision of the UCC or any other applicable
law or the Second Priority Documents or the First Priority Documents or any
other circumstance whatsoever, each Second Priority Agent, on behalf of itself
and the applicable Second Priority Lenders, hereby agrees that: (a) any Lien on
the Common Collateral securing any First Priority Claims now or hereafter held
by or on behalf of the Credit Agent or any First Priority Lenders or any agent
or trustee therefor shall be senior in all respects and prior

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to any Lien on the Common Collateral securing any of the Second Priority Claims;
and (b) any Lien on the Common Collateral now or hereafter held by or on behalf
of any Second Priority Agent or any Second Priority Lenders or any agent or
trustee therefor regardless of how acquired, whether by grant, statute,
operation of law, subrogation or otherwise, shall be junior and subordinate in
all respects to all Liens on the Common Collateral securing any First Priority
Claims. All Liens on the Common Collateral securing any First Priority Claims
shall be and remain senior in all respects and prior to all Liens on the Common
Collateral securing any Second Priority Claims for all purposes, whether or not
such Liens securing any First Priority Claims are subordinated to any Lien
securing any other obligation of the Company, any other Grantor or any other
Person.

                  2.2 Prohibition on Contesting Liens. Each of the Second
Priority Agents, for itself and on behalf of each applicable Second Priority
Lender, and the Credit Agent, for itself and on behalf of each First Priority
Lender it represents, agrees that it shall not (and hereby waives any right to)
contest or support any other Person in contesting, in any proceeding (including
any Insolvency or Liquidation Proceeding), the priority, validity or
enforceability of a Lien held by or on behalf of any of the First Priority
Lenders in the First Priority Collateral or by or on behalf of any of the Second
Priority Lenders in the Common Collateral, as the case may be; provided that
nothing in this Agreement shall be construed to prevent or impair the rights of
the Credit Agent or any First Priority Lender to enforce this Agreement,
including the priority of the Liens securing the First Priority Claims as
provided in Section 2.1.

                  2.3 No New Liens. So long as the Discharge of First Priority
Claims has not occurred, (a) the parties hereto agree that, after the date
hereof, if any Second Priority Agent shall hold any Lien on any assets of the
Company or any other Grantor securing any Second Priority Obligations that are
not also subject to the first-priority Lien of the Credit Agent under the First
Priority Documents, such Second Priority Agent, upon demand by the Credit Agent
or the Company, will either release such Lien or assign it to the Credit Agent
as security for the First Priority Claims (and such Second Priority Agent may
retain a subordinated Lien securing Second Priority Claims in accordance with
this Agreement if so assigned), and (b) the Company agrees that it will not, and
will not permit any Subsidiary to, grant or permit to exist any Lien on any
assets of the Company or any of its Subsidiaries to secure any Second Priority
Claim unless a perfected prior Lien on the same assets has been granted to
secure the First Priority Claims.

                  2.4 Effectiveness. No First Lien Lender or Second Lien Lender
shall have any rights or obligations under this Agreement unless it (or its
trustee, administrative agent or collateral agent on its behalf) shall have, at
the request of the then Credit Agent under the Senior Credit Agreement, executed
and delivered to such Credit Agent an agreement to be bound by the provisions of
this Agreement in form and at such time reasonably satisfactory to such Credit
Agent, and no Obligations (other than Obligations in respect of the Existing
Credit Agreement and related First Priority Documents and Obligations in respect
of the Notes and related Second Priority Documents) shall be deemed First
Priority Claims or Second Priority Claims unless such joinder is executed and
delivered in the form requested by such Credit Agent.

         SECTION 3. Enforcement

                  3.1 Exercise of Remedies

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                  (a) So long as the Discharge of First Priority Claims has not
         occurred, whether or not any Insolvency or Liquidation Proceeding has
         been commenced by or against the Company or any other Grantor, (i) the
         Second Priority Agents and the Second Priority Lenders will not
         exercise or seek to exercise any rights or remedies (including set-off)
         with respect to any Common Collateral, institute any action or
         proceeding with respect to such rights or remedies (including any
         action of foreclosure), contest, protest or object to any foreclosure
         proceeding or action brought by the Credit Agent or any First Priority
         Lender, the exercise of any right under any lockbox agreement, control
         agreement, blocked account agreement, landlord waiver or bailee's
         letter or similar agreement or arrangement to which any Second Priority
         Agent or any Second Priority Lender is a party, or any other exercise
         by any such Person, of any rights and remedies relating to the Common
         Collateral under the First Priority Documents or otherwise, or object
         to the forbearance by the First Priority Lenders from bringing or
         pursuing any foreclosure proceeding or action or any other exercise of
         any rights or remedies relating to the Common Collateral and (ii) the
         Credit Agent and the First Priority Lenders shall have the exclusive
         right to enforce rights, exercise remedies (including set-off and the
         right to credit bid their debt) and make determinations regarding the
         release, disposition, or restrictions with respect to the Common
         Collateral without any consultation with or the consent of any Second
         Priority Agent or any Second Priority Lender; provided, that (A) in any
         Insolvency or Liquidation Proceeding commenced by or against the
         Company or any Grantor, a Second Priority Agent may file a claim or
         statement of interest with respect to the Second Priority Claims, and
         (B) a Second Priority Agent may take any action (not adverse to the
         prior Liens on the Common Collateral securing the First Priority
         Claims, or the rights of the Credit Agent or the First Priority Lenders
         to exercise remedies in respect thereof) in order to preserve or
         protect its Lien on the Common Collateral. In exercising rights and
         remedies with respect to the Common Collateral, the Credit Agent and
         the First Priority Lenders may enforce the provisions of the First
         Priority Documents and exercise remedies thereunder, all in such order
         and in such manner as they may determine in the exercise of their sole
         discretion. Such exercise and enforcement shall include the rights of
         an agent appointed by them to sell or otherwise dispose of Common
         Collateral upon foreclosure, to incur expenses in connection with such
         sale or disposition, and to exercise all the rights and remedies of a
         secured lender under the Uniform Commercial Code and under the
         comparable law of any applicable jurisdiction and of a secured creditor
         under Bankruptcy Laws of any applicable jurisdiction.

                  (b) Each Second Priority Agent, on behalf of itself and the
         applicable Second Priority Lenders, agrees that it will not take or
         receive, directly or indirectly, in cash or other property or by
         setoff, counterclaim or in any other manner (whether pursuant to any
         enforcement, collection, execution, levy or foreclosure proceeding or
         otherwise), any Common Collateral or any proceeds of Common Collateral,
         in each case in connection with the exercise of any right or remedy
         (including set-off) with respect to any Common Collateral (or in
         respect of any Common Collateral in the event of the occurrence of an
         Insolvency or Liquidation Proceeding with respect to a Grantor), unless
         and until the Discharge of First Priority Claims has occurred. Without
         limiting the generality of the foregoing, unless and until the
         Discharge of First Priority Claims has occurred, except as expressly
         provided in the proviso in clause (ii) of Section 3.1(a)

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                                                                              11

         above, the sole right of the Second Priority Agents and the Second
         Priority Lenders with respect to the Common Collateral is to hold a
         Lien on the Common Collateral pursuant to the Second Priority Documents
         for the period and to the extent granted therein and to receive a share
         of the proceeds thereof, if any, after the Discharge of the First
         Priority Claims has occurred.

                  (c) Subject to the proviso in clause (ii) of Section 3.1(a)
         above and without limiting the effect of other provisions of this
         Agreement, (i) each Second Priority Agent, for itself and on behalf of
         the applicable Second Priority Lenders, agrees that such Second
         Priority Agent and the applicable Second Priority Lenders will not take
         any action that would hinder any exercise of remedies undertaken by the
         Credit Agent under the First Priority Documents, including any sale,
         lease, exchange, transfer or other disposition of the Common
         Collateral, whether by foreclosure or otherwise, and (ii) each Second
         Priority Agent, for itself and on behalf of the applicable Second
         Priority Lenders, hereby waives any and all rights it or the applicable
         Second Priority Lenders may have as a junior lien creditor to object to
         the manner in which the Credit Agent or the First Priority Lenders seek
         to enforce or collect the First Priority Claims or the Liens granted in
         any of the First Priority Collateral, regardless of whether any action
         or failure to act by or on behalf of the Credit Agent or First Priority
         Lenders is adverse to the interest of the Second Priority Lenders.

                  (d) Each Second Priority Agent, on behalf of itself and the
         applicable Second Priority Lenders, hereby acknowledges and agrees that
         no covenant, agreement or restriction contained in any Second Priority
         Document shall be deemed to restrict in any way the rights and remedies
         of the Credit Agent or the First Priority Lenders with respect to the
         Common Collateral as set forth in this Agreement and the First Priority
         Documents.

                  3.2 Cooperation. Subject to the proviso in clause (ii) of
Section 3.1(a) above, each Second Priority Agent, on behalf of itself and the
applicable Second Priority Lenders, agrees that, unless and until the Discharge
of First Priority Claims has occurred, it will not commence, or join with any
Person (other than the First Priority Lenders and the Credit Agent upon the
request thereof) in commencing, any enforcement, collection, execution, levy or
foreclosure action or proceeding with respect to any Lien held by it under any
of the Second Priority Documents or otherwise.

         SECTION 4. Payments

                  4.1 Application of Proceeds. As long as the Discharge of First
Priority Claims has not occurred, the Common Collateral or proceeds thereof
received in connection with the sale or other disposition of, or collection on,
such Common Collateral upon the exercise of remedies (or in respect of any
Common Collateral in the event of the occurrence of an Insolvency or Liquidation
Proceeding with respect to a Grantor), shall be applied by the Credit Agent to
the First Priority Claims in such order as specified in the relevant First
Priority Documents (or, if an order is not specified in the First Priority
Documents, in such order determined by the Credit Agent in its sole discretion)
until the Discharge of First Priority Claims has occurred. Upon the Discharge of
the First Priority Claims, the Credit Agent shall deliver to

<PAGE>

                                                                              12

the Designated Second Priority Agent (or to the Company if there is no
Designated Second Priority Agent at the time) or as a court of competent
jurisdiction may otherwise direct any proceeds of Common Collateral held by it
in the same form as received, with any necessary endorsements or as a court of
competent jurisdiction may otherwise direct to be applied, if applicable, by the
Designated Second Priority Agent to the Second Priority Claims in accordance
with the respective rights of the respective Second Priority Agents therefor.

                  4.2 Payments Over. Any Common Collateral or proceeds thereof
(or amounts in respect thereof) received by any Second Priority Agent or any
Second Priority Lender in connection with the exercise of any right or remedy
(including set-off) relating to the Common Collateral in contravention of this
Agreement shall be segregated and held in trust and forthwith paid over to the
Credit Agent for the benefit of the First Priority Lenders in the same form as
received, with any necessary endorsements or as a court of competent
jurisdiction may otherwise direct. The Credit Agent is hereby authorized to make
any such endorsements as agent for any such Second Priority Agent or any such
Second Priority Lender. This authorization is coupled with an interest and is
irrevocable.

         SECTION 5. Other Agreements

                  5.1 Releases

                  (a) If in connection with:

                           (i) the exercise of the Credit Agent's remedies in
                  respect of the Common Collateral provided for in Section 3.1,
                  including any sale, lease, exchange, transfer or other
                  disposition of any such Common Collateral;

                           (ii) any sale, lease, exchange, transfer or other
                  disposition of any Common Collateral permitted under the terms
                  of the Senior Credit Agreement (whether or not an event of
                  default thereunder, and as defined therein, has occurred and
                  is continuing) and permitted or not prohibited under Section
                  4.12 of the Indenture (Limitation on Asset Sales); or

                           (iii) any agreement between the Credit Agent and the
                  Company or any other Grantor which expressly releases the
                  Credit Agent's Lien on any portion of the Common Collateral or
                  to release any Grantor from its obligations under its guaranty
                  of the First Priority Claims; provided that (A) after giving
                  effect to the release, Obligations secured by first priority
                  Liens on the remaining Common Collateral remain outstanding
                  (unless such Obligations are deemed paid in full by the Credit
                  Agent and the Company) and (B) no such release shall be
                  effective against the Second Priority Lenders under the
                  Indenture and the Notes if an Event of Default has occurred
                  and is continuing under the Indenture as of the time of such
                  proposed release and written notice of the occurrence and
                  continuation of such Event of Default is received by the
                  Credit Agent at least one business day prior to such release
                  until such time as such Event of Default is cured or waived
                  unless such release is consented to by the holders of at least
                  a majority in aggregate principal amount of the Notes at the
                  time outstanding;

<PAGE>

                                                                              13

the Credit Agent, for itself or on behalf of any of the First Priority Lenders,
releases any of its Liens on any part of the Common Collateral, the Liens, if
any, of each Second Priority Agent, for itself or for the benefit of the
applicable Second Priority Lenders, on such Common Collateral shall be
automatically, unconditionally and simultaneously released and each Second
Priority Agent, for itself or on behalf of any such applicable Second Priority
Lender, promptly shall execute and deliver to the Credit Agent or such Grantor
such termination statements, releases and other documents as the Credit Agent or
such Grantor may request to effectively confirm such release. The Company shall
promptly advise (i) each Second Priority Agent and the Credit Agent of the
occurrence of an Event of Default and (ii) each Second Priority Agent of any
proposed release of Common Collateral cognizable under Section 5.1(a)(iii).

                  (b) Each Second Priority Agent, for itself and on behalf of
the applicable Second Priority Lenders, hereby irrevocably constitutes and
appoints the Credit Agent and any officer or agent of the Credit Agent, with
full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Second Priority
Agent or such holder or in the Credit Agent's own name, from time to time in the
Credit Agent's discretion, for the purpose of carrying out the terms of this
Section 5.1, to take any and all appropriate action and to execute any and all
documents and instruments which may be necessary or desirable to accomplish the
purposes of this Section 5.1, including any termination statements, endorsements
or other instruments of transfer or release.

                  5.2 Insurance. Unless and until the Discharge of First
Priority Claims has occurred, the Credit Agent and the First Priority Lenders
shall have the sole and exclusive right under the First Priority Documents, to
the extent such a right is granted in the First Priority Documents, to adjust
settlement for any insurance policy covering the Common Collateral in the event
of any loss thereunder and to approve any award granted in any condemnation or
similar proceeding affecting the Common Collateral. Unless and until the
Discharge of First Priority Claims has occurred, all proceeds of any such policy
and any such award if in respect to the Common Collateral shall be paid to the
Credit Agent for the benefit of the First Priority Lenders to the extent
required under the First Priority Documents and thereafter to the Designated
Second Priority Agent (or to the Company is there is no Designated Second
Priority Agent at the time) for the benefit of the Second Priority Lenders to
the extent required under the applicable Second Priority Documents and then to
the owner of the subject property or as a court of competent jurisdiction may
otherwise direct. If any Second Priority Agent or any Second Priority Lender
shall, at any time, receive any proceeds of any such insurance policy or any
such award in contravention of this Agreement, it shall pay such proceeds over
to the Credit Agent in accordance with the terms of Section 4.2.

                  5.3 Amendments to Second Priority Documents

                  (a) Without the prior written consent of the Credit Agent and
         the Required Lenders, no Second Priority Collateral Document may be
         amended, supplemented or otherwise modified or entered into to the
         extent such amendment, supplement or modification, or the terms of any
         new Second Priority Collateral Document, would be prohibited by any of
         the terms of the First Priority Documents. Each Second Priority Agent
         agrees that each Second Priority Collateral Document shall

<PAGE>

                                                                              14

         include the following language (or language to similar effect approved
         by the Credit Agent):

                  "Notwithstanding anything herein to the contrary, the lien and
                  security interest granted to the [Insert title of Second
                  Priority Agent] pursuant to this Agreement and the exercise of
                  any right or remedy by the [Insert title of Second Priority
                  Agent] hereunder are subject to the provisions of the
                  Intercreditor Agreement, dated as of June 19, 2003 (as
                  amended, supplemented or otherwise modified from time to time,
                  the "Intercreditor Agreement"), among Tenneco Automotive Inc.,
                  JPMorgan Chase Bank, as Credit Agent, and Wachovia Bank,
                  National Association, as Trustee. In the event of any conflict
                  between the terms of the Intercreditor Agreement and this
                  Agreement, the terms of the Intercreditor Agreement shall
                  govern."

In addition, each Second Priority Agent agrees that each Second Priority
Mortgage covering any Common Collateral shall contain such other language as the
Credit Agent may reasonably request to reflect the subordination of such Second
Priority Mortgage to the First Priority Collateral Document covering such Common
Collateral.

                  (b) In the event the Credit Agent or the First Priority
         Lenders enter into any amendment, waiver or consent in respect of any
         of the First Priority Collateral Documents for the purpose of adding
         to, or deleting from, or waiving or consenting to any departures from
         any provisions of, any First Priority Collateral Document or changing
         in any manner the rights of the Credit Agent, the First Priority
         Lenders, the Company or any other Grantor thereunder, then such
         amendment, waiver or consent shall apply automatically to any
         comparable provision of the Comparable Second Priority Collateral
         Document without the consent of any Second Priority Agent or any Second
         Priority Lenders and without any action by any Second Priority Agent,
         the Company or any other Grantor, provided, that (A) no such amendment,
         waiver or consent shall have the effect of removing assets subject to
         the Lien of the Second Priority Collateral Documents, except to the
         extent that a release of such Lien is permitted by Section 5.1, (B)
         notice of such amendment, waiver or consent shall have been given to
         the applicable Second Priority Agent and (C) no such amendment, waiver,
         or consent shall be effective to amend or waive a Comparable Second
         Priority Collateral Document if it shall materially adversely affect
         the rights of the Second Priority Lenders unless such change, waiver or
         modification materially adversely affects the rights of the First
         Priority Lenders in a like or similar manner (it being understood that
         amendments, waivers and consents which have the effect of adding
         collateral, adding remedies or enhancing the ability of the First
         Priority Lenders to exercise remedies or perfect security interests in
         collateral shall be deemed not to be materially adverse to the Second
         Priority).

                  5.4 Rights As Unsecured Creditors. Notwithstanding anything to
the contrary in this Agreement, each of the Second Priority Agents and the
Second Priority Lenders may exercise rights and remedies as an unsecured
creditor against the Company or any Subsidiary that has guaranteed the Second
Priority Obligations in accordance with the terms of the Second Priority
Documents and applicable law. Nothing in this Agreement shall prohibit the
receipt by any Second Priority Agent or any Second Priority Lenders of the
required payments of interest,

<PAGE>

                                                                              15

premium, if any, and principal on the Second Priority Claims and related fees
and expenses so long as such receipt is not the direct or indirect result of the
exercise by any Second Priority Agent or any Second Priority Lender of rights or
remedies as a secured creditor or enforcement in contravention of this Agreement
of any Lien held by any of them (or received or paid in respect of any Common
Collateral in the event of the occurrence of an Insolvency or Liquidation
Proceeding with respect to a Grantor). In the event any Second Priority Agent or
any Second Priority Lender becomes a judgment lien creditor in respect of Common
Collateral as a result of its enforcement of its rights as an unsecured
creditor, such judgment lien shall be subordinated to the Liens securing First
Priority Claims on the same basis as the other Liens securing the Second
Priority Claims are so subordinated to such First Priority Claims under this
Agreement. Nothing in this Agreement impairs or otherwise adversely affects any
rights or remedies the Credit Agent or the First Priority Lenders may have with
respect to the First Priority Collateral.

                  5.5 Bailee for Perfection

                  (a) The Credit Agent agrees to hold the Pledged Collateral
         that is part of the Common Collateral in its possession or control (or
         in the possession or control of its agents or bailees) as bailee for
         the applicable Second Priority Agents and any assignee solely for the
         purpose of perfecting the security interest granted in such Pledged
         Collateral pursuant to the Second Priority Security Documents, subject
         to the terms and conditions of this Section 5.5.

                  (b) Until the Discharge of First Priority Claims has occurred,
         the Credit Agent shall be entitled to deal with the Pledged Collateral
         in accordance with the terms of the First Priority Documents as if the
         Liens of the Second Priority Agents under the Second Priority
         Collateral Documents did not exist. The rights of the Second Priority
         Agents shall at all times be subject to the terms of this Agreement and
         to the Credit Agent's rights under the First Priority Documents.

                  (c) The Credit Agent shall have no obligation whatsoever to
         the Second Priority Agents or any Second Priority Lender to assure that
         the Pledged Collateral is genuine or owned by any of the Grantors or to
         preserve rights or benefits of any Person except as expressly set forth
         in this Section 5.5. The duties or responsibilities of the Credit Agent
         under this Section 5.5 shall be limited solely to holding the Pledged
         Collateral as bailee for the applicable Second Priority Agents for
         purposes of perfecting the Lien held by such Second Priority Agents.

                  (d) The Credit Agent shall not have by reason of the Second
         Priority Collateral Documents or this Agreement or any other document a
         fiduciary relationship in respect of any Second Priority Agent or any
         Second Priority Lender.

                  (e) Upon the Discharge of First Priority Claims, the Credit
         Agent shall deliver to the Designated Second Priority Agent (or to the
         Company if there is no Designated Second Priority Agent at the time)
         the remaining Pledged Collateral (if any) together with any necessary
         endorsements (or otherwise allow the Designated Second Priority Agent,
         if applicable, to obtain control of such Pledged Collateral) or as a
         court of competent jurisdiction may otherwise direct.

<PAGE>

                                                                              16

                  5.6 When Discharge of First Priority Claims Deemed to Not Have
Occurred. If at any time after the Discharge of First Priority Claims has
occurred the Company designates any other First-Lien Credit Facility to be the
"Senior Credit Agreement" hereunder, then such Discharge of First Priority
Claims shall automatically be deemed not to have occurred for all purposes of
this Agreement (other than with respect to any actions taken prior to the date
of such designation as a result of the occurrence of such first Discharge of
First Priority Claims), and such other First-Lien Credit Facility shall
automatically be treated as the Senior Credit Agreement for all purposes of this
Agreement, including for purposes of the Lien priorities and rights in respect
of Common Collateral set forth herein. Upon receipt of notice of such
designation (including the identity of the new Credit Agent), the Second
Priority Agent shall promptly (i) enter into such documents and agreements
(including amendments or supplements to this Agreement) as the Company or such
new Credit Agent shall request in order to provide to the new Credit Agent the
rights of the Credit Agent contemplated hereby and (ii) deliver to the Credit
Agent the Pledged Collateral together with any necessary endorsements (or
otherwise allow such Credit Agent to obtain control of such Pledged Collateral).

                  5.7 Cooperation. Upon request of the Credit Agent from time to
time, each Second Priority Agent shall promptly disclose to the Collateral Agent
all information in its possession reasonably requested by the Credit Agent with
respect to the Second Priority Collateral, including the identity of the
Grantors and guarantors of any Second Priority Obligations and the description,
location and timing of perfection of Liens purported to be created on the Second
Priority Collateral to secure Second Priority Claims and shall promptly deliver
to the Credit Agent copies of the Second Priority Documents and other documents
relating to the Second Priority Collateral, such as Uniform Commercial Code
Financing Statements and record copies of Second Priority Collateral Documents.

         SECTION 6. Insolvency or Liquidation Proceedings

                  6.1 Financing Issues. If the Company or any other Grantor
shall be subject to any Insolvency or Liquidation Proceeding and the Credit
Agent shall desire to permit the use of cash collateral or to permit the Company
or any other Grantor to obtain financing under Section 363 or Section 364 of
Title 11 of the United States Code or any similar Bankruptcy Law ("DIP
Financing"), then each Second Priority Agent, on behalf of itself and the
applicable Second Priority Lenders, agrees that it will raise no objection to
such use of cash collateral or DIP Financing and will not request adequate
protection or any other relief in connection therewith (except to the extent
permitted by Section 6.3) and, to the extent the Liens securing the First
Priority Claims are subordinated or pari passu with such DIP Financing, will
subordinate its Liens in the Common Collateral to such DIP Financing (and all
Obligations relating thereto) on the same basis as the Liens securing the Second
Priority Claims are subordinated to First Priority Claims under this Agreement.

                  6.2 Relief from the Automatic Stay. Until the Discharge of
First Priority Claims has occurred, each Second Priority Agent, on behalf of
itself and the applicable Second Priority Lenders, agrees that none of them
shall seek relief from the automatic stay or any other stay in any Insolvency or
Liquidation Proceeding in respect of the Common Collateral, without the prior
written consent of the Credit Agent and the Required Lenders.

<PAGE>

                                                                              17

                  6.3 Adequate Protection. Each Second Priority Agent, on behalf
of itself and the applicable Second Priority Lenders, agrees that none of them
shall contest (or support any other Person contesting) (a) any request by the
Credit Agent or the First Priority Lenders for adequate protection or (b) any
objection by the Credit Agent or the First Priority Lenders to any motion,
relief, action or proceeding based on the Credit Agent or the First Priority
Lenders claiming a lack of adequate protection. Notwithstanding the foregoing
contained in this Section 6.3, in any Insolvency or Liquidation Proceeding, (i)
if the First Priority Lenders (or any subset thereof) are granted adequate
protection in the form of additional collateral in connection with any DIP
Financing or use of cash collateral under Section 363 or Section 364 of Title 11
of the United States Code or any similar Bankruptcy Law, then each Second
Priority Agent, on behalf of itself or any of the applicable Second Priority
Lenders, may seek or request adequate protection in the form of a replacement
Lien on such additional collateral, which Lien, if any, shall be subordinated to
the Liens securing the First Priority Claims and such DIP Financing (and all
Obligations relating thereto) on the same basis as the other Liens securing the
Second Priority Claims are so subordinated to the First Priority Claims under
this Agreement, and (ii) in the event a Second Priority Agent, on behalf of
itself and the Second Priority Lenders, seeks or requests adequate protection
and such adequate protection is granted in the form of additional collateral,
then such Second Priority Agent, on behalf of itself or any of the applicable
Second Priority Lenders, agrees that the Credit Agent shall also be granted a
senior Lien on such additional collateral as security for the First Priority
Claims and any such DIP Financing and that any Lien on such additional
collateral securing the Second Priority Claims shall be subordinated to the
Liens on such collateral securing the First Priority Claims and any such DIP
Financing (and all Obligations relating thereto) and any other Liens granted to
the First Priority Lenders as adequate protection on the same basis as the other
Liens securing the Second Priority Claims are so subordinated to such First
Priority Claims under this Agreement.

                  6.4 No Waiver. Nothing contained herein shall prohibit or in
any way limit the Credit Agent or any First Priority Lender from objecting in
any Insolvency or Liquidation Proceeding or otherwise to any action taken by any
Second Priority Agent or any of the Second Priority Lenders, including the
seeking by any Second Priority Agent or any Second Priority Lender of adequate
protection (other than as allowed pursuant to Section 6.3 of this Agreement) or
the asserting by any Second Priority Agent or any Second Priority Lender of any
of its rights and remedies under the Second Priority Documents or otherwise.

                  6.5 Preference Issues. If any First Priority Lender is
required in any Insolvency or Liquidation Proceeding or otherwise to turn over
or otherwise pay to the estate of the Company or any other Grantor any amount (a
"Recovery"), then the First Priority Claims shall be reinstated to the extent of
such Recovery and the First Priority Lenders shall be entitled to receive
payment in full in cash (including, in the case of any letter of credit, cash
collateral therefor) with respect to all such recovered amounts. If this
Agreement shall have been terminated prior to such Recovery, this Agreement
shall be reinstated in full force and effect, and such prior termination shall
not diminish, release, discharge, impair or otherwise affect the obligations of
the parties hereto.

<PAGE>

                                                                              18

         SECTION 7. Reliance; Waivers; Etc.

                  7.1 Reliance. The consent by the First Priority Lenders to the
execution and delivery of the Second Priority Documents and the grant to any
Second Priority Agent on behalf of the applicable Second Priority Lenders of a
Lien on the Common Collateral and all loans and other extensions of credit made
or deemed made on and after the date hereof by the First Priority Lenders to the
Company or any Grantor shall be deemed to have been given and made in reliance
upon this Agreement. Each Second Priority Agent, on behalf of itself and the
applicable Second Priority Lenders, acknowledges that it and such Second
Priority Lenders have, independently and without reliance on the Credit Agent or
any First Priority Lender, and based on documents and information deemed by them
appropriate, made their own credit analysis and decision to enter into the
Indenture, this Agreement and the transactions contemplated hereby and thereby
and they will continue to make their own credit decision in taking or not taking
any action under the Indenture or this Agreement.

                  7.2 No Warranties or Liability. Each Second Priority Agent, on
behalf of itself and the applicable Second Priority Lenders, acknowledges and
agrees that each of the Credit Agent and the First Priority Lenders have made no
express or implied representation or warranty, including with respect to the
execution, validity, legality, completeness, collectibility or enforceability of
any of the First Priority Documents, the ownership of any Common Collateral or
the perfection or priority of any Liens thereon. The First Priority Lenders will
be entitled to manage and supervise their respective loans and extensions of
credit under the First Priority Documents as they may, in their sole discretion,
deem appropriate, and the First Priority Lenders may manage their loans and
extensions of credit without regard to any rights or interests that any Second
Priority Agent or any of the Second Priority Lenders have in the Common
Collateral or otherwise, except as otherwise provided in this Agreement. Neither
the Credit Agent nor any First Priority Lender shall have any duty to any Second
Priority Agent or any of the Second Priority Lenders to act or refrain from
acting in a manner which allows, or results in, the occurrence or continuance of
an event of default or default under any agreements with the Company or any
Subsidiary thereof (including the Second Priority Documents), regardless of any
knowledge thereof which they may have or be charged with.

                  7.3 No Waiver of Lien Priorities

                  (a) No right of the First Priority Lenders, the Credit Agent
         or any of them to enforce any provision of this Agreement or any First
         Priority Document shall at any time in any way be prejudiced or
         impaired by any act or failure to act on the part of the Company or any
         other Grantor or by any act or failure to act by any First Priority
         Lender or the Credit Agent, or by any noncompliance by any Person with
         the terms, provisions and covenants of this Agreement, any of the First
         Priority Documents or any of the Second Priority Documents, regardless
         of any knowledge thereof which the Credit Agent or the First Priority
         Lenders, or any of them, may have or be otherwise charged with;

                  (b) Without in any way limiting the generality of the
         foregoing paragraph, the First Priority Lenders, the Credit Agent and
         any of them, may, at any time and from time to time, without the
         consent of, or notice to, any Second Priority Agent or

<PAGE>

                                                                              19

         any Second Lien Lender, without incurring any liabilities to any Second
         Priority Agent or any Second Lien Lender and without impairing or
         releasing the Lien priorities and other benefits provided in this
         Agreement (even if any right of subrogation or other right or remedy of
         any Second Priority Agent or any Second Lien Lender is affected,
         impaired or extinguished thereby) do any one or more of the following:

                           (i) change the manner, place or terms of payment or
                  change or extend the time of payment of, or amend, renew,
                  exchange, increase or alter, the terms of any of the First
                  Priority Claims or any Lien on any First Priority Collateral
                  or guaranty thereof or any liability of the Company or any
                  other Grantor, or any liability incurred directly or
                  indirectly in respect thereof (including any increase in or
                  extension of the First Priority Claims, without any
                  restriction as to the amount, tenor or terms of any such
                  increase or extension) or otherwise amend, renew, exchange,
                  extend, modify or supplement in any manner any Liens held by
                  the Credit Agent or any of the First Priority Lenders, the
                  First Priority Claims or any of the First Priority Documents;

                           (ii) sell, exchange, release, surrender, realize
                  upon, enforce or otherwise deal with in any manner and in any
                  order any part of the First Priority Collateral or any
                  liability of the Company or any other Grantor to the First
                  Priority Lenders or the Credit Agent, or any liability
                  incurred directly or indirectly in respect thereof;

                           (iii) settle or compromise any First Priority Claim
                  or any other liability of the Company or any other Grantor or
                  any security therefor or any liability incurred directly or
                  indirectly in respect thereof and apply any sums by whomsoever
                  paid and however realized to any liability (including the
                  First Priority Claims) in any manner or order;

                           (iv) subordinate the priority of the First Priority
                  Lien held by any First Priority Lender to the priority of the
                  First Priority Lien held by any other Lender;

                           (v) enter into or amend any First Priority Document
                  in order to create or acquire additional collateral for the
                  First Priority Claims, to create and perfect security
                  interests in and Liens on collateral and to increase and
                  enhance the exercise of remedies thereunder and take actions
                  in furtherance of the foregoing; and

                           (vi) exercise or delay in or refrain from exercising
                  any right or remedy against the Company or any security or any
                  other Grantor or any other Person, elect any remedy and
                  otherwise deal freely with the Company, any other Grantor or
                  any First Priority Collateral and any security and any
                  guarantor or any liability of the Company or any other Grantor
                  to the First Priority Lenders or any liability incurred
                  directly or indirectly in respect thereof.

<PAGE>

                                                                              20

                  (c) Each Second Priority Agent, on behalf of itself and the
         applicable Second Priority Lenders, also agrees that the First Priority
         Lenders and the Credit Agent shall have no liability to any Second
         Priority Agent or any Second Priority Lender, and each Second Priority
         Agent, on behalf of itself and the applicable Second Priority Lenders,
         hereby waives any claim against any First Priority Lender or the Credit
         Agent, arising out of any and all actions which the First Priority
         Lenders or the Credit Agent may take or permit or omit to take with
         respect to: (i) the First Priority Documents, (ii) the collection of
         the First Priority Claims or (iii) the foreclosure upon, or sale,
         liquidation or other disposition of, any First Priority Collateral.
         Each Second Priority Agent, on behalf of itself and the applicable
         Second Priority Lenders, agrees that the First Priority Lenders and the
         Credit Agent have no duty to them in respect of the maintenance or
         preservation of the First Priority Collateral, the First Priority
         Claims or otherwise; and

                  (d) Each Second Priority Agent, on behalf of itself and the
         applicable Second Priority Lenders, agrees not to assert and hereby
         waives, to the fullest extent permitted by law, any right to demand,
         request, plead or otherwise assert or otherwise claim the benefit of,
         any marshalling, appraisal, valuation or other similar right that may
         otherwise be available under applicable law or any other similar rights
         a junior secured creditor may have under applicable law.

                  7.4 Obligations Unconditional. All rights, interests,
agreements and obligations of the Credit Agent and the First Priority Lenders
and the Second Priority Agents and the Second Priority Lenders, respectively,
hereunder shall remain in full force and effect irrespective of:

                  (a) any lack of validity or enforceability of any First
         Priority Documents or any Second Priority Documents;

                  (b) any change in the time, manner or place of payment of, or
         in any other terms of, all or any of the First Priority Claims or
         Second Priority Claims, or any amendment or waiver or other
         modification, including any increase in the amount thereof, whether by
         course of conduct or otherwise, of the terms of the Senior Credit
         Agreement or any other First Priority Document or of the terms of the
         Indenture or any other Second Priority Document;

                  (c) any exchange of any security interest in any Common
         Collateral or any other collateral, or any amendment, waiver or other
         modification, whether in writing or by course of conduct or otherwise,
         of all or any of the First Priority Claims or Second Priority Claims or
         any guarantee thereof;

                  (d) the commencement of any Insolvency or Liquidation
         Proceeding in respect of the Company or any other Grantor; or

                  (e) any other circumstances which otherwise might constitute a
         defense available to, or a discharge of, the Company or any other
         Grantor in respect of the First Priority Claims, or of any Second
         Priority Agent or any Second Priority Lender in respect of this
         Agreement.

<PAGE>

                                                                              21

         SECTION 8. Miscellaneous

                  8.1 Conflicts. In the event of any conflict between the
provisions of this Agreement and the provisions of the First Priority Documents
or the Second Priority Documents, the provisions of this Agreement shall govern.

                  8.2 Continuing Nature of this Agreement; Severability. This
Agreement shall continue to be effective until the Discharge of First Priority
Claims shall have occurred. This is a continuing agreement of lien subordination
and the First Priority Lenders may continue, at any time and without notice to
any Second Priority Agent or any Second Priority Lender, to extend credit and
other financial accommodations and lend monies to or for the benefit of the
Company or any other Grantor constituting First Priority Claims on reliance
hereof. Each Second Priority Agent, on behalf of itself and the applicable
Second Priority Lenders, hereby waives any right it may have under applicable
law to revoke this Agreement or any of the provisions of this Agreement. The
terms of this Agreement shall survive, and shall continue in full force and
effect, in any Insolvency or Liquidation Proceeding. Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall not
invalidate 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.

                  8.3 Amendments; Waivers. No amendment, modification or waiver
of any of the provisions of this Agreement by any Second Priority Agent or the
Credit Agent shall be deemed to be made unless the same shall be in writing
signed on behalf of the party making the same or its authorized agent and each
waiver, if any, shall be a waiver only with respect to the specific instance
involved and shall in no way impair the rights of the parties making such waiver
or the obligations of the other parties to such party in any other respect or at
any other time. The Company and other Grantors shall not have any right to
consent to or approve any amendment, modification or waiver of any provision of
this Agreement except to the extent their rights are directly affected.

                  8.4 Information Concerning Financial Condition of the Company
and the Subsidiaries. (a) The Credit Agent and the First Priority Lenders, on
the one hand, and the Second Priority Agents and the Second Priority Lenders, on
the other hand, shall each be responsible for keeping themselves informed of (i)
the financial condition of the Company and the Subsidiaries and all endorsers
and/or guarantors of the Second Priority Claims or the First Priority Claims and
(ii) all other circumstances bearing upon the risk of nonpayment of the Second
Priority Claims or the First Priority Claims.

                  (b) The Credit Agent and the First Priority Lenders shall have
no duty to advise any Second Priority Agent or any Second Priority Lender of
information known to it or them regarding such condition or any such
circumstances or otherwise. In the event the Credit Agent or any of the First
Priority Lenders, in its or their sole discretion, undertakes at any time or
from time to time to provide any such information to any Second Priority Agent
or any Second Priority Lender, it or they shall be under no obligation (i) to
make, and the Credit Agent and the First Priority Lenders shall not make, any
express or implied representation or warranty, including with respect to the
accuracy, completeness, truthfulness or validity of any such information so
provided, (ii) to provide any additional information or to provide any such

<PAGE>

                                                                              22

information on any subsequent occasion, (iii) to undertake any investigation or
(iv) to disclose any information which, pursuant to accepted or reasonable
commercial finance practices, such party wishes to maintain confidential or is
otherwise required to maintain confidential.

                  (c) Subject to Section 5.7, the Second Priority Agents and the
Second Priority Lenders shall have no duty to advise any First Priority Agent or
any First Priority Lender of information known to it or them regarding such
condition or any such circumstances or otherwise. In the event any Second
Priority Agent or any of the Second Priority Lenders, in its or their sole
discretion, undertakes at any time or from time to time to provide any such
information to any First Priority Agent or any First Priority Lender, it or they
shall be under no obligation (i) to make, and the Second Priority Agents and the
Second Priority Lenders shall not make, any express or implied representation or
warranty, including with respect to the accuracy, completeness, truthfulness or
validity of any such information so provided, (ii) to provide any additional
information or to provide any such information on any subsequent occasion, (iii)
to undertake any investigation or (iv) to disclose any information which,
pursuant to accepted or reasonable commercial finance practices, such party
wishes to maintain confidential or is otherwise required to maintain
confidential.

                  8.5 Subrogation. Each Second Priority Agent, on behalf of
itself and the applicable Second Priority Lenders, hereby waives any rights of
subrogation it may acquire as a result of any payment hereunder until the
Discharge of First Priority Claims has occurred.

                  8.6 Application of Payments. All payments received by the
First Priority Lenders may be applied, reversed and reapplied, in whole or in
part, to such part of the First Priority Claims as the First Priority Lenders,
in their sole discretion, deem appropriate. Each Second Priority Agent, on
behalf of itself and the applicable Second Priority Lenders, assents to any
extension or postponement of the time of payment of the First Priority Claims or
any part thereof and to any other indulgence with respect thereto, to any
substitution, exchange or release of any security which may at any time secure
any part of the First Priority Claims and to the addition or release of any
other Person primarily or secondarily liable therefor.

                  8.7 Consent to Jurisdiction; Waivers. The parties hereto
consent to the jurisdiction of any state or federal court located in New York,
New York, and consent that all service of process may be made by registered mail
directed to such party as provided in Section 8.8 below for such party. Service
so made shall be deemed to be completed three days after the same shall be
posted as aforesaid. The parties hereto waive any objection to any action
instituted hereunder based on forum non conveniens, and any objection to the
venue of any action instituted hereunder. EACH OF THE PARTIES HERETO WAIVES ANY
RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR ACTION OF ANY PARTY
HERETO.

                  8.8 Notices. All notices to the Second Priority Lenders and
the First Priority Lenders permitted or required under this Agreement may be
sent to the applicable Second Priority Agent and the Credit Agent, respectively.
Unless otherwise specifically provided herein, any notice or other communication
herein required or permitted to be given shall be in writing and may be
personally served, telecopied, electronically mailed or sent by courier service
or U.S.

<PAGE>

                                                                              23

mail and shall be deemed to have been given when delivered in person or by
courier service, upon receipt of a telecopy or electronic mail or four Business
Days after deposit in the U.S. mail (registered or certified, with postage
prepaid and properly addressed). For the purposes hereof, the addresses of the
parties hereto shall be as set forth below each party's name on the signature
pages hereto, or, as to each party, at such other address as may be designated
by such party in a written notice to all of the other parties.

                  8.9 Further Assurances. Each Second Priority Agent, on behalf
of itself and the applicable Second Priority Lenders, agrees that each of them
shall take such further action and shall execute and deliver to the Credit Agent
and the First Priority Lenders such additional documents and instruments (in
recordable form, if requested) as the Credit Agent or the First Priority Lenders
may reasonably request to effectuate the terms of and the lien priorities
contemplated by this Agreement.

                  8.10 Governing Law. This Agreement has been delivered and
accepted at and shall be deemed to have been made at New York, New York and
shall be interpreted, and the rights and liabilities of the parties bound hereby
determined, in accordance with the laws of the State of New York.

                  8.11 Binding on Successors and Assigns. This Agreement shall
be binding upon the Credit Agent, the First Priority Lenders, the Second
Priority Agents, the Second Priority Lenders, the Company and their respective
permitted successors and assigns.

                  8.12 Specific Performance. The Credit Agent may demand
specific performance of this Agreement. Each Second Priority Agent, on behalf of
itself and the applicable Second Priority Lenders, hereby irrevocably waives any
defense based on the adequacy of a remedy at law and any other defense which
might be asserted to bar the remedy of specific performance in any action which
may be brought by the Credit Agent.

                  8.13 Section Titles; Time Periods. The section titles
contained in this Agreement are and shall be without substantive meaning or
content of any kind whatsoever and are not a part of this Agreement. In the
computation of time periods, unless otherwise specified the word "from" means
"from and including" and each of the words "to" and "until" means "to but
excluding" and the word "through" means "to and including".

                  8.14 Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be an original and all of which shall
together constitute one and the same document.

                  8.15 Authorization. By its signature, each Person executing
this Agreement on behalf of a party hereto represents and warrants to the other
parties hereto that it is duly authorized to execute this Agreement.

                  8.16 No Third Party Beneficiaries. This Agreement and the
rights and benefits hereof shall inure to the benefit of each of the parties
hereto and their respective successors and assigns and shall inure to the
benefit of each of the holders of First Priority Claims and Second Priority
Claims. No other Person, including the Company or any other Grantor, the Company
or

<PAGE>

                                                                              24

any other Grantor as debtor-in-possession or any trustee in an Insolvency or
Liquidation Proceeding, shall have or be entitled to assert rights or benefits
hereunder.

                  8.17 Effectiveness. This Agreement shall become effective when
executed and delivered by the parties hereto. This Agreement shall be effective
both before and after the commencement of any Insolvency or Liquidation
Proceeding. All references to the Company or any other Grantor shall include the
Company or any Grantor as debtor and debtor-in-possession and any receiver or
trustee for the Company or any other Grantor (as the case may be) in any
Insolvency or Liquidation Proceeding.

                  8.18 Credit Agent and Second Priority Agent. It is understood
and agreed that (a) JPMorgan Chase Bank is entering into this Agreement in its
capacity as Credit Agent and the provisions of Section 9 of the Existing Credit
Agreement applicable to JPMorgan Chase Bank as administrative agent thereunder
shall also apply to JPMorgan Chase Bank as Credit Agent hereunder, and (b)
Wachovia Bank, National Association is entering in this Agreement in its
capacity as Trustee (including its capacity as Collateral Agent under the
Indenture and the other Second Priority Documents) and the provisions of Article
7 of the Indenture applicable to the Trustee thereunder shall also apply to the
Trustee hereunder.

                  8.19 Designations. For purposes of the provisions hereof and
the Indenture requiring the Company to designate Indebtedness for the purposes
of the term "First Priority Claims", "First-Lien Credit Facilities", "Other
Second-Lien Obligations" any other designations for any other purposes hereunder
or under the Indenture, any such designation shall be sufficient if the relevant
designation is set forth in writing, signed on behalf of the Company by an
officer thereof and delivered to the Trustee and the Credit Agent. For all
purposes hereof and the Indenture, the Company hereby designates the Credit
Facilities provided pursuant to the Existing Credit Agreement as the First-Lien
Credit Facility and any Obligations in respect of the Existing Credit Agreement
as "Credit Agreement Obligations" and "First Priority Claims" under the
Indenture.

<PAGE>

                                                                              25

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

                                        Credit Agent:

                                        JPMORGAN CHASE BANK, as Credit Agent

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

                                        Address:
                                        270 Park Avenue
                                        New York, New York 10017
                                        Attention:
                                                  ------------------------------
                                        Telecopy No.: (212) 270-
                                                                ----------------

                                        Trustee:

                                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as Trustee

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

                                        Address:
                                        5847 San Felipe
                                        Suite 1050
                                        Houston, TX 77057
                                        Attention:  Corporate Trust Department
                                        Telecopy No.:  (713) 278-4329

                                        TENNECO AUTOMOTIVE INC.

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

                                        Address:
                                        500 North Field Drive
                                        Lake Forest, Illinois  60045
                                        Attention:
                                                  ------------------------------
                                        Telecopy No.: (847)
                                                           ---------------------

<PAGE>

                                                                              26

                                        Collateral Agent:

                                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as Collateral Agent

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

                                        Address:
                                        5847 San Felipe
                                        Suite 1050
                                        Houston, TX 77057
                                        Attention:  Corporate Trust Department
                                        Telecopy No.:  (713) 278-4329<PAGE>

                                                                   EXHIBIT 10.26

                            TENNECO AUTOMOTIVE INC.
                         2002 LONG-TERM INCENTIVE PLAN

               (As Amended and Restated Effective March 11, 2003)

                                   ARTICLE 1

                                    GENERAL

     1.1. Purpose. The Tenneco Automotive Inc. 2002 Long-Term Incentive Plan
(the "Plan") has been established by Tenneco Automotive Inc. (the "Company") to:
(i) promote the long-term success of the Company and its Subsidiaries (as
defined herein); (ii) attract and retain persons eligible to participate in the
Plan; (iii) motivate Participants (as defined herein), by means of appropriate
incentives, to achieve long-range goals; (iv) provide incentive compensation
opportunities that are competitive with those of other similar companies; (v)
further identify Participants' interests with those of the Company's other
stockholders through compensation that is based on the Company's common stock;
and (vi) thereby promote the long-term financial interest of the Company and its
Subsidiaries, including the growth in value of the Company's equity and
enhancement of long-term stockholder return.

     1.2. Participation. Subject to the terms and conditions of the Plan, the
Committee (as defined herein) shall determine and designate, from time to time,
from among the Eligible Individuals (as defined herein), including without
limitation transferees of Eligible Individuals to the extent the transfer is
permitted by the Plan and the applicable Award Agreement (as defined herein),
those persons who will be granted one or more Awards (as defined herein) under
the Plan, and thereby become "Participants" in the Plan.

     1.3. Operation and Administration. The operation and administration of the
Plan, including the Awards made under the Plan, shall be subject to the
provisions of Article 5 (relating to operation and administration).

                                   ARTICLE 2

                             CERTAIN DEFINED TERMS

     As used in this Plan, the following terms shall have the meanings set forth
or referenced below. In addition, other terms may be defined in the other
Articles and Sections of this Plan, and, unless the context otherwise requires,
shall have the specified meanings throughout the Plan:

          (a) Award. The term "Award" means any award or benefit granted under
     the Plan, including, without limitation, the grant of Options, SARs, Bonus
     Stock Awards, Stock

                                       B-1
<PAGE>

     Equivalent Unit Awards, Restricted Stock Awards, Restricted Stock Unit
     Awards and Performance Unit Awards.

          (b) Board. The term "Board" means the Board of Directors of the
     Company.

          (c) Change in Control. The term "Change in Control" shall mean any of
     the following events (but no event other than one of the following events):

             (i) any person, alone or together with any of its affiliates or
        associates, becoming the beneficial owner, directly or indirectly, of
        securities of the Company representing (A) fifteen percent (15%) or more
        of either the Company's then outstanding shares of common stock or the
        combined voting power of the Company's then outstanding securities
        having general voting rights, and a majority of the Incumbent Board does
        not approve the acquisition before the acquisition occurs, or (B) forty
        percent (40%) or more of either the Company's then outstanding shares of
        common stock or the combined voting power of the Company's then
        outstanding securities having general voting rights; provided, however,
        that, notwithstanding the foregoing, a Change in Control shall not be
        deemed to occur pursuant to this subparagraph (i) solely because the
        requisite percentage of either the Company's then outstanding shares of
        common stock or the combined voting power of the Company's then
        outstanding securities having general voting rights is acquired by one
        or more employee benefits plans maintained by the Tenneco Companies; or

             (ii) members of the Incumbent Board ceasing to constitute a
        majority of the Board; or

             (iii) the consummation of any plan of merger, consolidation, share
        exchange or combination between the Company and any person, including
        without limitation becoming a subsidiary of any other person, without
        members of the Incumbent Board, as constituted immediately prior to the
        merger, consolidation, share exchange or combination, constituting a
        majority of the board of directors of (A) the surviving or successor
        corporation of such transaction, or (B) if the surviving or successor
        corporation of such transaction is a majority-owned subsidiary of
        another corporation or corporations, the ultimate parent company of the
        surviving or successor corporation; or

             (iv) the consummation of any sale, exchange or other disposition of
        all or substantially all of the Company's assets without members of the
        Incumbent Board immediately prior to any such sale, exchange or
        disposition of all or substantially all of the Company's assets
        constituting a majority of the board of directors of (A) the corporation
        which holds such assets after such disposition, or (B) if such
        corporation is a majority-owned subsidiary of another corporation or
        corporations, the ultimate parent company of the corporation which holds
        such assets after such disposition; provided, however, that the Board
        may determine conclusively that any transaction does not
                                       B-2
<PAGE>

        constitute a sale, exchange or other disposition of substantially all of
        the Company's assets; or

             (v) if any person, alone or together with any of its affiliates or
        associates, elects or has elected during any period not exceeding 24
        months, at least 25% of the members of the Board, without the approval
        of the Incumbent Board, and such members are comprised of persons not
        serving as members of the Board immediately prior to the formation of
        such group or the first solicitation of proxies by such person; or

             (vi) the Company's stockholders approving a plan of complete
        liquidation or dissolution of the Company.

          (d) Code. The term "Code" means the Internal Revenue Code of 1986, as
     amended. A reference to any provision of the Code shall include reference
     to any successor provision of the Code.

          (e) Common Stock. The term "Common Stock" means the Company's common
     stock, par value $.01 per share.

          (f) Covered Employee. The term "Covered Employee" means a Participant
     who, as of the date of vesting and/or payout of an Award, as applicable, is
     a "covered employee," as defined in Code section 162(m) and the regulations
     promulgated under Code section 162(m).

          (g) Effective Date. The term "Effective Date" has the meaning set
     forth in Section 5.1.

          (h) Eligible Individual. For purposes of the Plan, the term "Eligible
     Individual" means any employee of the Company or a Subsidiary, any
     consultant or other person providing services to the Company or a
     Subsidiary and any member of the Board; provided, however, that an
     incentive stock option may only be granted to an employee of the Company or
     a Subsidiary.

          (i) Fair Market Value. For purposes of determining the "Fair Market
     Value" of a share of Common Stock as of any date, the following rules shall
     apply:

             (i) If the principal market for the shares of Common Stock is a
        national securities exchange or the NASDAQ securities market, then the
        "Fair Market Value" as of that date shall be the average of the highest
        and lowest sales prices of a share of Common Stock on that date (or, if
        such day is not a business day, the next preceding business day) on the
        principal exchange or market on which the shares of Common Stock are
        then listed or admitted to trading.

             (ii) If the shares of Common Stock are not listed on a national
        securities exchange and the shares of Common Stock are not quoted on the
        NASDAQ securities market, then the "Fair Market Value" as of that date
        shall be the average of the highest and
                                       B-3
<PAGE>

        lowest prices of a share of Common Stock on that date (or, if such day
        is not a business day, the next preceding business day) as reported on
        the NASDAQ OTC Bulletin Board Service or by the National Quotation
        Bureau, Incorporated or a comparable service.

             (iii) If subparagraphs (i) and (ii) next above are otherwise
        inapplicable, then the Fair Market Value of the shares of Common Stock
        shall be determined in good faith by the Committee.

          (j) Incumbent Board. The "Incumbent Board" shall consist of the
     following persons:

             (i) the members of the Board as of the Effective Date, to the
        extent they continue to serve as members of the Board; and

             (ii) any individual who becomes a member of the Board after the
        Effective Date, if his or her election or nomination for election as a
        director is approved by a vote of at least three-quarters of the then
        Incumbent Board, other than a director whose initial assumption of
        office is in connection with an actual or threatened election contest,
        including but not limited to a consent solicitation, relating to the
        election of directors of the Company.

          (k) Participants. The term "Participants" has the meaning set forth in
     Section 1.2.

          (l) Performance Measure. The term "Performance Measure" means any of
     the following: (1) net earnings; (2) earnings per share; (3) net sales
     growth; (4) net income (before or after taxes); (5) net operating profit;
     (6) return measures (including, but not limited to, return on assets,
     capital, equity or sales); (7) cash flow (including, but not limited to,
     operating cash flow and free cash flow); (8) cash flow return on
     investments, which equals net cash flows divided by owner's equity; (9)
     earnings before or after taxes, interest, depreciation and/or amortization;
     (10) internal rate of return or increase in net present value; (11)
     dividend payments to parent; (12) gross margins; (13) gross margins minus
     expenses; (14) operating margin; (15) share price (including, but no
     limited to, growth measures and total stockholder return); (16) expense
     targets; (17) working capital targets relating to inventory and/or accounts
     receivable; (18) planning accuracy (as measured by comparing planned
     results to actual results); (19) comparisons to various stock market
     indices; (20) comparisons to the performance of other companies; (21)
     technological achievement; (22) customer counts; (23) customer
     satisfaction, quality management or customer service performance; and (24)
     EVA(R). For purposes of this Plan, "EVA" means the positive or negative
     value determined by net operating profits after taxes over a charge for
     capital, or any other financial measure, as determined by the Committee in
     its sole discretion. (EVA is a registered trademark of Stern Stewart & Co.)

          (m) Subsidiary. The term "Subsidiary" means any corporation,
     partnership, joint venture or other entity during any period in which at
     least a fifty percent voting or profits

                                       B-4
<PAGE>

     interest is owned, directly or indirectly, by the Company (or by any entity
     that is a successor to the Company), and any other business venture
     designated by the Committee in which the Company (or any entity that is a
     successor to the Company) has a significant interest, as determined in the
     discretion of the Committee.

          (n) Tenneco Companies. The term "Tenneco Companies" means the Company
     and any Subsidiary of which a majority of the voting common stock or
     capital stock is owned directly or indirectly by the Company.

                                   ARTICLE 3

                                OPTIONS AND SARS

     3.1. Certain Definitions.

          (a) The grant of an "Option" entitles the Participant to purchase
     shares of Common Stock at an Exercise Price (as defined herein) established
     by the Committee. Any Option granted under this Article 3 may be either an
     incentive stock option (an "ISO") or a non-qualified stock option (an
     "NQO"), as determined in the discretion of the Committee. An "ISO" is an
     Option that is intended to satisfy the requirements applicable to an
     "incentive stock option" described in section 422(b) of the Code. An "NQO"
     is an Option that is not intended to be an "incentive stock option" as that
     term is described in section 422(b) of the Code.

          (b) A stock appreciation right (an "SAR") entitles the Participant to
     receive, in cash or shares of Common Stock (as determined in accordance
     with Section 5.2), value equal to (or otherwise based on) the excess of:
     (i) the Fair Market Value of a specified number of shares of Common Stock
     at the time of exercise; over (ii) an Exercise Price established by the
     Committee.

     3.2. Exercise Price. The "Exercise Price" of each Option and SAR granted
under this Article 3 shall be established by the Committee or shall be
determined by a method established by the Committee at the time the Option or
SAR is granted; provided, however, that the Exercise Price shall not be less
than 100% of the Fair Market Value of a share of Common Stock on the date of
grant (or, if greater, the par value of a share of Common Stock).

     3.3. Exercise. An Option and an SAR granted under this Article 3 shall be
exercisable in accordance with such terms and conditions and during such periods
as may be established by the Committee; provided, however, that no Option or SAR
shall be exercisable after the tenth anniversary of the date as of which such
Award was granted.

                                       B-5
<PAGE>

     3.4. Payment of Option Exercise Price. The payment of the Exercise Price of
an Option granted under this Article 3 shall be subject to the following:

          (a) Subject to the following provisions of this Section 3.4, the full
     Exercise Price for shares of Common Stock purchased upon the exercise of
     any Option shall be paid at the time of such exercise (except that, in the
     case of an exercise arrangement approved by the Committee and described in
     Section 3.4(c), payment may be made as soon as practicable after the
     exercise).

          (b) The Exercise Price shall be payable to the Company in full either:
     (i) in cash or its equivalent, (ii) by tendering (either by actual delivery
     or attestation) previously acquired shares of Common Stock having an
     aggregate Fair Market Value at the time of exercise equal to the total
     Exercise Price (provided that the shares that are tendered must have been
     held by the Participant for at least six (6) months prior to their tender
     to satisfy the Exercise Price or must have been purchased on the open
     market), (iii) by a combination of (i) and (ii), or (iv) by any other
     method approved by the Committee in its sole discretion at the time of
     grant and as set forth in the Award Agreement.

          (c) The Committee may permit a Participant to elect to pay the
     Exercise Price upon the exercise of an Option by irrevocably authorizing a
     third party to sell shares of Common Stock (or a sufficient portion of the
     shares of Common Stock) acquired upon exercise of the Option and remit to
     the Company a sufficient portion of the sale proceeds to pay the entire
     Exercise Price and any tax withholding resulting from such exercise.

     3.5. Settlement of Award. Settlement of Options and SARs is subject to the
provisions of Section 5.7.

                                   ARTICLE 4

                           OTHER STOCK-RELATED AWARDS

     4.1. Certain Definitions.

          (a) A "Bonus Stock" Award is a grant of shares of Common Stock in
     return for previously performed services, or in return for the Participant
     surrendering other compensation that may be due to such Participant from
     the Company or a Subsidiary.

          (b) A "Stock Equivalent Unit" Award is a grant of a right to receive
     cash in an amount equal to the value of a specified number of shares of
     Common Stock, in the future, which may be contingent on the achievement of
     performance or other objectives, including without limitation continued
     service, during a specified period.

          (c) A "Performance Unit" Award is a grant of a right to receive a
     specified number of shares, or dollar amount of shares, of Common Stock, in
     the future, which is contingent on
                                       B-6
<PAGE>

     the achievement of performance or other objectives, including without
     limitation continued service, during a specified period.

          (d) A "Restricted Stock" Award is a grant of shares of Common Stock,
     and a "Restricted Stock Unit" Award is a grant of a right to receive a
     specified number of shares of Common Stock, or cash in an amount equal to
     the value of a specified number of shares of Common Stock, in the future,
     with such shares of Common Stock or right to future delivery of such shares
     of Common Stock or payment of cash subject to a risk of forfeiture or other
     restrictions that will lapse upon the achievement of one or more goals
     relating to completion of service by the Participant, or achievement of
     performance or other objectives, as determined by the Committee.

     4.2. Restrictions on Awards. Each Bonus Stock Award, Stock Equivalent Unit
Award, Restricted Stock Award, Restricted Stock Unit Award and Performance Unit
Award shall be subject to such conditions, restrictions and contingencies as the
Committee shall determine. The Committee may designate whether any such Award
being granted to any Participant is intended to be "performance-based
compensation" as that term is used in section 162(m) of the Code. Any such
Awards designated as intended to be "performance-based compensation" shall be
conditioned on the achievement of one or more Performance Measures, to the
extent required by Code section 162(m). For Awards under this Section 4.2
intended to be "performance-based compensation," the grant of the Awards and the
establishment of the Performance Measures shall be made during the period
required under Code section 162(m). Any Performance Measure(s) may be used to
measure the performance of the Company as a whole or any business unit or
Subsidiary of the Company or any combination thereof, as the Committee may deem
appropriate, or any such performance as compared to the performance of a group
of comparator companies, or any published or special index that the Committee,
in its sole discretion, deems appropriate. The Committee also has the authority
to provide for accelerated vesting of any Award made under this Article 4 based
on the achievement of performance goals pursuant to the Performance Measures
specified herein. The Committee may provide in any such Award that any
evaluation of performance may include or exclude any of the following events
that occurs during a performance period: (a) asset write-downs, (b) litigation
or claim judgments or settlements, (c) the effect of changes in tax laws,
accounting principles, or other laws or provisions affecting reported results,
(d) accruals for reorganization and restructuring programs, (e) extraordinary
nonrecurring items as described in Accounting Principles Board Opinion No. 30
and/or in management's discussion and analysis of financial condition and
results of operations appearing in the Company's annual report to stockholders
for the applicable year, (f) acquisitions or divestitures, and (g) foreign
exchange gains and losses. To the extent such inclusions or exclusions affect
Awards to Covered Employees intended to qualify as "performance-based
compensation," they shall be prescribed in a form that meets the requirements of
Code section 162(m) for deductibility. Awards that are designed to qualify as
"performance-based compensation," and that are held by Covered Employees, may
not be adjusted upward (the Committee shall retain the discretion to adjust such
Awards downward). In the event that applicable
                                       B-7
<PAGE>

tax and/or securities laws change to permit Board or Committee discretion to
alter the governing Performance Measures without obtaining stockholder approval
of such changes, the Board and Committee shall have the discretion to make such
changes without obtaining stockholder approval. In addition, in the event that
the Committee determines that it is advisable to grant Awards under this Article
4 that shall not qualify as "performance-based compensation," the Committee may
make such grants without satisfying the requirements of Code section 162(m).

                                   ARTICLE 5

                          OPERATION AND ADMINISTRATION

     5.1. Effective Date. Subject to the approval of the stockholders of the
Company and the provisions of Section 5.2(b), the Plan shall be effective as of
March 12, 2002 (the "Effective Date"). The Plan shall be unlimited in duration
and, in the event of Plan termination, shall remain in effect as long as any
Awards under it are outstanding; provided, however, that no Awards may be
granted under the Plan after the ten-year anniversary of the Effective Date
(except for Awards granted pursuant to commitments entered into prior to such
ten-year anniversary).

     5.2. Plan and Other Limitations. The Awards that may be granted under the
Plan shall be subject to the following:

          (a) The shares of Common Stock with respect to which Awards may be
     made under the Plan shall be shares of Common Stock currently authorized
     but unissued or currently held or, to the extent permitted by applicable
     law, subsequently acquired by the Company as treasury shares, including
     shares of Common Stock purchased in the open market or in private
     transactions.

          (b) Effective upon approval by the Company's stockholders of the
     amendment to increase by 2,000,000 (Two Million) the maximum number of
     shares available under the Plan (which amendment is submitted to such
     stockholders for their approval at the Company's 2003 Annual Meeting of
     Stockholders), subject to the following provisions of this Section 5.2, the
     maximum number of shares of Common Stock that may be delivered to
     Participants and their beneficiaries under the Plan shall be equal to
     4,000,000 (Four Million) shares of Common Stock. In addition, effective
     upon approval by the Company's stockholders of the amendment to increase by
     500,000 (Five-Hundred Thousand) the maximum number of shares available
     under the Plan (which amendment is submitted to such stockholders for their
     approval at the Company's 2003 Annual Meeting of Stockholders), subject to
     the following provisions of this Section 5.2, the maximum number of shares
     of Common Stock that may be delivered to Participants and their
     beneficiaries under the Plan pursuant to Full Value Awards (as defined
     below) shall be equal to 1,000,000 (One Million)

                                       B-8
<PAGE>

     shares of Common Stock. For the purposes of this Plan, "Full Value Awards"
     shall be Awards of Bonus Stock, Stock Equivalent Units, Performance Units,
     Restricted Stock or Restricted Stock Units.

          (c) To the extent provided by the Committee, any Award of Stock
     Equivalent Units, Performance Units or Restricted Stock Units may be
     settled in cash rather than shares of Common Stock. To the extent any
     shares of Common Stock covered by an Award are not delivered to a
     Participant or beneficiary because the Award is forfeited or canceled, or
     the shares of Common Stock are not delivered because the Award is settled
     in cash or used to satisfy the applicable tax withholding obligation, such
     shares of Common Stock shall not be deemed to have been delivered for
     purposes of determining the maximum number of shares of Common Stock
     available for delivery under the Plan or, if applicable, pursuant to Full
     Value Awards.

          (d) If the exercise price of any Option granted under the Plan is
     satisfied by tendering shares of Common Stock to the Company (by either
     actual delivery or by attestation), only the number of shares of Common
     Stock issued net of the shares of Common Stock tendered shall be deemed
     delivered for purposes of determining the maximum number of shares of
     Common Stock available for delivery under the Plan.

          (e) Subject to Section 5.2(f), the following additional limitations
     are imposed under the Plan.

             (i) The maximum number of shares of Common Stock that may be
        covered by Awards granted to any one individual pursuant to Article 3
        (relating to Options and SARs) shall be 350,000 (Three Hundred Fifty
        Thousand) shares of Common Stock during any one calendar year period. If
        an Option is in tandem with an SAR, such that the exercise of the Option
        or SAR with respect to a share of Common Stock cancels the tandem SAR or
        Option right, respectively, with respect to such share, the tandem
        Option and SAR rights with respect to each share of Common Stock shall
        be counted as covering only one share of Common Stock for purposes of
        applying the limitations of this clause (i).

             (ii) For Awards granted pursuant to Article 4 that are intended to
        be "performance-based compensation" (as that term is used for purposes
        of Code section 162(m)), no more than 200,000 (Two Hundred Thousand)
        shares of Common Stock and, if such Awards are denominated in cash
        value, no more than $800,000, may be subject to such Awards granted to
        any one individual during any one calendar year. If, after shares have
        been earned, the delivery is deferred, any additional shares
        attributable to dividends or other amounts attributable to earnings
        during the deferral period shall be disregarded. Unless otherwise
        indicated by the Committee at the time of grant, all Awards granted
        pursuant to Article 4 for which the vesting or payment are

                                       B-9
<PAGE>

        conditioned on achievement of one or more Performance Measures shall be
        deemed to be intended to be "performance-based compensation" for the
        purposes of Code section 162(m).

          (f) In the event of a corporate transaction involving the Company
     (including, without limitation, any stock dividend, stock split,
     extraordinary cash dividend, recapitalization, reorganization, merger,
     consolidation, split-up, spin-off, combination or exchange of shares), the
     Committee may adjust the terms of the Plan and Awards to preserve the
     benefits or potential benefits of the Plan or the Awards. Action by the
     Committee with respect to the Plan or Awards under this Section 5.2(f) may
     include: (i) adjustment of the number and kind of shares which may be
     delivered under the Plan; (ii) adjustment of the number and kind of shares
     subject to outstanding Awards; (iii) adjustment of the Exercise Price of
     outstanding Options and SARs; and (iv) any other adjustments that the
     Committee determines to be equitable.

     5.3. General Restrictions. Delivery of shares of Common Stock or other
amounts under the Plan shall be subject to the following:

          (a) Notwithstanding any other provision of the Plan, the Company shall
     have no liability to deliver any shares of Common Stock under the Plan or
     make any other distribution of benefits under the Plan unless such delivery
     or distribution would comply with all applicable laws (including, without
     limitation, the requirements of the Securities Act of 1933, as amended),
     and the applicable requirements of any securities exchange or similar
     entity.

          (b) To the extent that the Plan provides for issuance of certificates
     to reflect the issuance of shares of Common Stock, the issuance may be
     effected on a non-certificated basis, to the extent not prohibited by
     applicable law or the applicable rules of any securities exchange.

     5.4. Tax Withholding. All distributions under the Plan shall be subject to
withholding of all applicable taxes, and the Committee may condition the
delivery of any shares or other benefits under the Plan on satisfaction of the
applicable withholding obligations. Except as otherwise provided by the
Committee, such withholding obligations may be satisfied (a) through cash
payment by the Participant, (b) through the surrender of shares of Common Stock
which the Participant already owns, or (c) through the surrender of shares of
Common Stock to which the Participant is otherwise entitled under the Plan;
provided, however, that such shares of Common Stock under this paragraph (c) may
be used to satisfy not more than the Company's minimum statutory withholding
obligation (based on minimum statutory withholding rates for Federal and state
tax purposes, including without limitation payroll taxes, that are applicable to
such supplemental taxable income).

     5.5. Grant and Use of Awards. In the discretion of the Committee, a
Participant may be granted any Award permitted under the provisions of the Plan,
and more than one Award may be
                                       B-10
<PAGE>

granted to a Participant. Awards may be granted as alternatives to or
replacement of awards granted or outstanding under the Plan, or any other plan
or arrangement of the Company or a Subsidiary (including a plan or arrangement
of a business or entity, all or a portion shares of common stock of which is
acquired by the Company or a Subsidiary). The Committee may use available shares
of Common Stock hereunder as the form of payment for compensation, grants or
rights earned or due under any other compensation plans or arrangements of the
Company or a Subsidiary, including the plans and arrangements of the Company or
a Subsidiary assumed in business combinations.

     5.6. Dividends and Dividend Equivalents. An Award (including without
limitation an Option or SAR Award) may provide the Participant with the right to
receive dividend payments, dividend equivalent payments or dividend equivalent
units with respect to shares of Common Stock subject to the Award (both before
and after the shares of Common Stock subject to the Award are earned, vested, or
acquired), which payments may be either made currently or credited to an account
for the Participant, and may be settled in cash or shares of Common Stock, as
determined by the Committee. Any such settlements, and any such crediting of
dividends or dividend equivalents or reinvestment in shares of Common Stock or
Common Stock equivalents, may be subject to such conditions, restrictions and
contingencies as the Committee shall establish, including the reinvestment of
such credited amounts in Common Stock equivalents.

     5.7. Settlement of Awards. The obligation to make payments and
distributions with respect to Awards of Stock Equivalent Units, Performance
Units or Restricted Stock Units may be satisfied through cash payments, the
delivery of shares of Common Stock, the granting of replacement Awards, or any
combination thereof as the Committee shall determine. Satisfaction of any
obligations to make payments or distributions under an Award, which is sometimes
referred to as "settlement" of the Award, may be subject to such conditions,
restrictions and contingencies as the Committee shall determine. The Committee
may permit or require the deferral of any Award payment, subject to such rules
and procedures as it may establish, which may include provisions for the payment
or crediting of interest or dividend equivalents, and may include converting
such credits into deferred Common Stock equivalents. Each Subsidiary shall be
liable for payment of cash due under the Plan with respect to any Participant to
the extent that such benefits are attributable to the services rendered for that
Subsidiary by the Participant. Any disputes relating to liability of a
Subsidiary for cash payments shall be resolved by the Committee.

     5.8. Transferability. Except as otherwise provided by the Committee, Awards
under the Plan are not transferable except as designated by the Participant by
will or by the laws of descent and distribution.

     5.9. Form and Time of Elections. Unless otherwise specified herein, each
election required or permitted to be made by any Participant or other person
entitled to benefits under the Plan, and any permitted modification or
revocation thereof, shall be in writing filed with the Committee
                                       B-11
<PAGE>

at such times, in such form and subject to such restrictions and limitations,
not inconsistent with the terms of the Plan, as the Committee shall require.

     5.10. Agreement With Company. An Award under the Plan shall be subject to
such terms and conditions, not inconsistent with the Plan, as the Committee
shall, in its sole discretion, prescribe. The terms and conditions of any Award
to any Participant shall be reflected in such form of written document, if any,
as is determined by the Committee. A copy of such document shall be provided to
the Participant, and the Committee may, but need not, require that the
Participant sign a copy of such document. Such document is referred to in the
Plan as an "Award Agreement" regardless of whether any Participant signature is
required.

     5.11. Action by Company or Subsidiary. Any action required or permitted to
be taken by the Company or any Subsidiary shall be by resolution of its board of
directors, or by action of one or more members of the board (including a
committee of the board) who are duly authorized to act for the board, or (except
to the extent prohibited by applicable law or applicable rules of any stock
exchange) by a duly authorized officer of such company.

     5.12. Gender and Number. Where the context admits, words in any gender
shall include any other gender, words in the singular shall include the plural
and the plural shall include the singular.

     5.13. Limitation of Implied Rights.

          (a) Neither a Participant nor any other person shall, by reason of
     participation in the Plan, acquire any right in or title to any assets,
     funds or property of the Company or any Subsidiary whatsoever, including,
     without limitation, any specific funds, assets or other property which the
     Company or any Subsidiary, in its sole discretion, may set aside in
     anticipation of a liability under the Plan. A Participant shall have only a
     contractual right to the shares of Common Stock or amounts, if any, payable
     under the Plan, unsecured by any assets of the Company or any Subsidiary,
     and nothing contained in the Plan shall constitute a guarantee that the
     assets of the Company or any Subsidiary shall be sufficient to pay any
     benefits to any person.

          (b) The Plan does not constitute a contract of employment or continued
     service, and selection as a Participant will not give any participating
     individual the right to be retained in the employ or continued service of
     the Company or any Subsidiary, nor any right or claim to any benefit under
     the Plan, unless such right or claim has specifically accrued under the
     terms of the Plan. Except as otherwise provided in the Plan, no Award under
     the Plan shall confer upon the holder thereof any rights as a stockholder
     of the Company prior to the date on which the individual fulfills all
     conditions for receipt of such rights.

                                       B-12
<PAGE>

     5.14. Evidence. Evidence required of anyone under the Plan may be by
certificate, affidavit, document or other information which the person acting on
it considers pertinent and reliable, and signed, made or presented by the proper
party or parties.

                                   ARTICLE 6

                               CHANGE IN CONTROL

     Subject to the provisions of Section 5.2(f) (relating to certain
adjustments), upon the occurrence of a Change in Control, unless otherwise
specifically prohibited under applicable laws, or by the rules and regulations
of any applicable governmental agencies or national securities exchange, or
unless the Committee shall otherwise provide in the Award Agreement:

          (a) any and all Options and SARs granted hereunder shall become
     immediately vested and exercisable and shall remain exercisable for the
     lesser of 36 months following such Change in Control or the remaining
     maximum term of such Award (regardless of whether the applicable
     Participant's employment or directorship is terminated upon or after such
     Change in Control);

          (b) any period of restriction and restrictions imposed on Restricted
     Stock or Restricted Stock Units granted hereunder shall lapse and each
     Participant holding any such Award shall be entitled to be paid in cash,
     within 30 days after the Change in Control, the total of the fair market
     value, determined as of immediately prior to such Change in Control, of any
     such Award which he or she held immediately prior to such Change in
     Control; and

          (c) the target payout opportunities attainable under all Bonus Stock,
     Stock Equivalent Unit and Performance Unit Awards granted hereunder shall
     be deemed to have been fully earned as of the effective date of the Change
     in Control (based on an assumed achievement of all relevant targeted
     performance goals over any applicable performance period(s)) and each
     Participant holding any such Award shall be entitled to be paid in cash,
     within 30 days after the Change in Control, the total of the fair market
     value, determined as of immediately prior to such Change in Control, of any
     such Award which he or she held immediately prior to such Change in
     Control.

                                   ARTICLE 7

                                   COMMITTEE

     7.1. Administration. The authority to control and manage the operation and
administration of the Plan shall be vested in a committee (the "Committee") in
accordance with this Article 7. The Committee shall be selected by the Board,
and shall consist solely of two or more members of the Board. From and after the
Effective Date, unless removed by the Board or unless said

                                       B-13
<PAGE>

committee no longer exists, the Company's Compensation/Nominating/Governance
Committee shall be the Committee for purposes of this Plan. If the Committee
does not exist, or for any other reason determined by the Board, the Board may
take any action under the Plan that would otherwise be the responsibility of the
Committee.

     7.2. Powers of Committee. The Committee's administration of the Plan shall
be subject to the following:

          (a) Subject to the provisions of the Plan, the Committee will have the
     authority and discretion to select from among the Eligible Individuals
     those persons who shall receive Awards, to determine the time or times of
     receipt, to determine the types of Awards and the number of shares of
     Common Stock or other amounts covered by the Awards, to establish the
     terms, conditions, performance criteria, restrictions and other provisions
     of such Awards and (subject to the restrictions imposed by Article 8) to
     cancel or suspend Awards.

          (b) To the extent that the Committee determines that the restrictions
     imposed by the Plan preclude the achievement of the material purposes of
     the Awards in jurisdictions outside the United States, the Committee will
     have the authority and discretion to modify those restrictions as the
     Committee determines to be necessary or appropriate to conform to
     applicable requirements or practices of jurisdictions outside of the United
     States.

          (c) The Committee will have the authority and discretion to
     conclusively interpret the Plan, to establish, amend and rescind any rules
     and regulations relating to the Plan, to determine the terms and provisions
     of any Award Agreement made pursuant to the Plan and to make all other
     determinations that may be necessary or advisable for the administration of
     the Plan.

          (d) Any interpretation of the Plan by the Committee and any decision
     made by it under the Plan is final and binding on all persons.

          (e) In controlling and managing the operation and administration of
     the Plan, the Committee shall take action in a manner that conforms to the
     certificate of incorporation and by-laws of the Company, and applicable
     state corporate law.

     7.3. Delegation by Committee. Except to the extent prohibited by applicable
law or the applicable rules of a securities exchange, the Committee may allocate
all or any portion of its responsibilities and powers to any one or more of its
members and may delegate all or any part of its responsibilities and powers to
any person or persons selected by it. Any such allocation or delegation may be
revoked by the Committee at any time.

     7.4. Information to be Furnished to Committee. The Company and Subsidiaries
shall furnish the Committee with such data and information as it determines may
be required for it to discharge its duties. The records of the Company and
Subsidiaries as to an individual's employment or service, termination of
employment or service, leave of absence, reemployment or
                                       B-14
<PAGE>

recommencement of service and compensation shall be conclusive on all persons
unless determined to be incorrect. Participants and other persons entitled to
benefits under the Plan must furnish the Committee such evidence, data or
information as the Committee considers desirable to carry out the terms of the
Plan.

                                   ARTICLE 8

                           AMENDMENT AND TERMINATION

     The Board may, at any time, amend or terminate the Plan, and may amend any
Award Agreement, provided that no amendment or termination may, in the absence
of written consent to the change by the affected Participant (or, if the
Participant is not then living, the affected beneficiary), adversely affect the
rights of any Participant or beneficiary under any Award granted under the Plan
prior to the date such amendment is adopted by the Board; and further provided
that adjustments pursuant to Section 5.2(f) shall not be subject to the
foregoing limitations of this Article 8. Notwithstanding anything herein to the
contrary, (i) without the prior approval of the Company's stockholders, Options
issued under the Plan will not be repriced, replaced, or regranted through
cancellation, or by lowering the exercise price of a previously granted Option,
and (ii) no amendment of the Plan shall be made without stockholder approval if
stockholder approval is required by applicable law, regulation or stock exchange
rule.

                                   ARTICLE 9

                                 MISCELLANEOUS

     9.1. Governing Law. The validity, construction and effect of the Plan, and
any actions taken or relating to the Plan, shall be determined in accordance
with the laws of the State of Illinois and applicable federal law.

     9.2. Severability. If for any reason any provision or provisions of the
Plan are determined invalid or unenforceable, the validity and effect of the
other provisions of the Plan shall not be affected thereby.

     IN WITNESS WHEREOF, the Company has caused the Plan to be executed on its
behalf by its respective officer thereunder duly authorized, on the day and year
set forth below.

Date: As of March 11, 2003

TENNECO AUTOMOTIVE INC.

By: /s/ MARK P. FRISSORA
    ----------------------------------------------------
    Mark P. Frissora
    Chairman and Chief Financial Officer

                                       B-15

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