Document:

<PAGE>

                    Fourth AMENDMENT TO THE CREDIT AGREEMENT

                  FOURTH AMENDMENT, dated as of May 29, 2003 (this "Fourth
Amendment"), to the Credit Agreement, dated as of September 30, 1999 (as
amended, supplemented, or otherwise modified from time to time, the "Credit
Agreement"), among TENNECO AUTOMOTIVE INC., a Delaware corporation (the
"Borrower"), the several lenders from time to time parties thereto (the
"Lenders"), JPMORGAN CHASE BANK (formerly known as The Chase Manhattan Bank), a
New York banking corporation, as administrative agent for the Lenders (in such
capacity, the "Administrative Agent"), and the other financial institutions
named therein as agents for the Lenders (in such capacity, collectively, the
"Other Agents").

                              W I T N E S S E T H:

                  WHEREAS, the Borrower, the Lenders and the Administrative
Agent and the Other Agents are parties to the Credit Agreement;

                  WHEREAS, the Borrower has notified the Lenders of its
intention to issue its senior secured second lien notes from time to time (as
hereinafter further defined, the "Second Lien Notes");

                  WHEREAS, the Borrower has requested that the Lenders amend the
Credit Agreement as set forth herein;

                  WHEREAS, the Lenders, the Administrative Agent and the Other
Agents are willing to agree to such amendment to the Credit Agreement, subject
to the terms and conditions set forth herein;

                  NOW, THEREFORE, in consideration of the premises and mutual
covenants contained herein, the Borrower, the Lenders, the Administrative Agent
and the Other Agents hereby agree as follows:

                  1. Defined Terms. Unless otherwise defined herein, capitalized
terms which are defined in the Credit Agreement are used herein as therein
defined.

                  2. Amendments to Credit Agreement. (a) Section 1.1 of the
Credit Agreement is amended as follows:

                  (i) by deleting the definition of "Excess Cash Flow" and
substituting therefor the following:

                           "Excess Cash Flow": for any fiscal year of the
         Borrower, the excess, if any, of (a) the sum, without duplication, of
         (i) Consolidated Net Income for such fiscal year, (ii) an amount equal
         to the amount of all non-cash charges (including depreciation and
         amortization) deducted in arriving at such Consolidated Net Income,
         (iii) decreases in Consolidated Working Capital for such fiscal year,
         (iv) an amount equal to the aggregate net non-cash loss on the
         Disposition of property by the Borrower and its Subsidiaries during
         such fiscal year (other than sales of inventory in the ordinary course

<PAGE>

                                                                               2

         of business), to the extent deducted in arriving at such Consolidated
         Net Income, (v) an amount equal to the aggregate net increase in
         Consolidated Working Capital attributable to foreign currency
         translation adjustments of the Borrower and its Subsidiaries during
         such fiscal year, (vi) an amount equal to the aggregate net non-cash
         increase in Consolidated Working Capital of the Borrower and its
         Subsidiaries during such fiscal year, and (vii) an amount equal to the
         non-cash, non-current deferred income tax expense deducted in arriving
         at Consolidated Net Income, over (b) the sum, without duplication, of
         (i) an amount equal to the amount of all non-cash credits included in
         arriving at such Consolidated Net Income, (ii) the aggregate amount
         actually paid by the Borrower and its Subsidiaries in cash during such
         fiscal year on account of Capital Expenditures (excluding the principal
         amount of Indebtedness incurred in connection with such expenditures,
         any such expenditures financed with the proceeds of any Reinvestment
         Deferred Amount and any Capital Expenditures with respect to which the
         Borrower delivered a certificate pursuant to the immediately following
         clause (iii) in connection with the calculation of Excess Cash Flow for
         the last fiscal year), (iii) the aggregate amount of Capital
         Expenditures that the Borrower or any of its Subsidiaries became
         obligated to make but that are not made during such fiscal year,
         provided that the Borrower shall deliver a certificate to the
         Administrative Agent not later than 90 days after the end of such
         fiscal year, signed by a Responsible Officer of the Borrower and
         certifying that such Capital Expenditure will be made in the following
         fiscal year and the aggregate amount of all such Capital Expenditures
         shall not exceed the limitations set forth in Section 7.7 for such
         fiscal year, (iv) the net amount of all prepayments of Revolving Loans
         and Swingline Loans and other revolving credit facilities during such
         fiscal year and all optional prepayments of the Term Loans during such
         fiscal year, (v) the aggregate amount of all regularly scheduled
         principal payments of Funded Debt (including the Term Loans) of the
         Borrower and its Subsidiaries made during such fiscal year, (vi)
         increases in Consolidated Working Capital for such fiscal year, (vii)
         an amount equal to the aggregate net cash gains on the Disposition of
         property by the Borrower and its Subsidiaries during such fiscal year
         (other than sales of inventory in the ordinary course of business) to
         the extent included in arriving at such Consolidated Net Income, (viii)
         an amount equal to Investments permitted by Section 7.8 made by the
         Borrower and its Subsidiaries during such fiscal year, (ix) an amount
         equal to the aggregate net cash gains on the Disposition of property by
         the Borrower and its Subsidiaries consisting of Asset Sales the Net
         Cash Proceeds of which are required to be applied during such fiscal
         year to the prepayment of Term Loans pursuant to Section 2.11, (x) an
         amount equal to the aggregate net decrease in Consolidated Working
         Capital attributable to foreign currency translation adjustments of the
         Borrower and its Subsidiaries during such fiscal year, (xi) an amount
         equal to the aggregate net non-cash decrease in Consolidated Working
         Capital of the Borrower and its Subsidiaries during such fiscal year
         and (xii) an amount equal to non-cash, non-current deferred income tax
         benefit included in arriving at Consolidated Net Income.

                           (ii) by adding the phrase ", the Intercreditor
                  Agreement" immediately after the phase "Security Documents" in
                  the definition of "Loan Documents"; and

                           (iii) adding the following defined terms in proper
                  alphabetical order:

<PAGE>
                                                                               3

                           "First Priority Claims": as defined in the
                  Intercreditor Agreement.

                           "Fourth Amendment Effective Date": the Effective
                  Date, as defined in the Fourth Amendment dated as of May 29,
                  2003 to this Agreement.

                           "Intercreditor Agreement": the Intercreditor
                  Agreement, dated as of the Fourth Amendment Effective Date,
                  entered into among the collateral agent for the Second Lien
                  Note Holders, the Administrative Agent and the Borrower as the
                  same may be amended, supplemented or otherwise modified from
                  time to time.

                           "Permitted Second Lien Notes Refinancings": as
                  defined in Section 7.2

                           "Second Lien Note Holders": holders of the Second
                  Lien Notes from time to time.

                           "Second Lien Note Indenture": the Indenture, dated as
                  of the Fourth Amendment Effective Date, entered into by the
                  Borrower and certain of its Subsidiaries in connection with
                  the issuance of the Second Lien Notes together with all
                  instruments and other agreements entered into by the Borrower
                  or such Subsidiaries in connection therewith, as the same may
                  be amended, supplemented or otherwise modified from time to
                  time.

                           "Second Lien Notes": the senior secured notes of the
                  Borrower to be issued in one or more series pursuant to the
                  Second Lien Note Indenture.

                           "Second Priority Claims": as defined in the
                  Intercreditor Agreement.

                           "Second Priority Collateral Documents": as defined in
                  the Intercreditor Agreement.

         (b) Section 2.11 of the Credit Agreement is amended by adding the
following paragraph at the end thereof:

                           (f) Notwithstanding any other provisions of the Loan
                  Documents to the contrary, Net Cash Proceeds of the issuance
                  of the Second Lien Notes shall be applied as follows: (i) with
                  respect to the Second Lien Notes issued on the Fourth
                  Amendment Effective Date, (A) first, such Net Cash Proceeds
                  will be applied to prepay $199,100,000 (or, if such Net Cash
                  Proceeds are less than $199,100,000, such lesser amount of Net
                  Cash Proceeds) of the Tranche A Term Loans in direct order of
                  maturity; (B) second, following the payment described in
                  clause (i)(A), an amount up to the next $52,200,000, if any,
                  of such Net Cash Proceeds will be applied to prepay the
                  Tranche B Term Loans and the Tranche C Term Loans on a pro
                  rata basis, in direct order of maturity; (C) third, following
                  the payments in clauses (i)(A) and (i)(B), an amount up to
                  next $100,000,000 if any, of such Net Cash Proceeds, will be
                  applied to prepay outstanding Revolving Loans; and (D) fourth,
                  following the payments in clauses (i)(A), (i)(B) and (i)(C),
                  the balance of such Net Cash Proceeds, if any, will be applied
                  in accordance with this Agreement as if such Net Cash Proceeds
                  resulted in a mandatory prepayment

<PAGE>

                                                                               4

                  pursuant to Section 2.11(a); and (ii) with respect to all
                  other Second Lien Notes, such Net Cash Proceeds will be
                  applied in accordance with this Agreement as if such Net Cash
                  Proceeds resulted in a mandatory prepayment pursuant to
                  Section 2.11(a).

         (c) Section 2 of the Credit Agreement is amended by adding the
following at the end thereof:

         2.23 Intercreditor Agreement. The Lenders (a) authorize the
         Administrative Agent to execute, deliver and perform the Intercreditor
         Agreement on their behalf, and (b) acknowledge that certain items of
         the Collateral will from time to time be made subject to a Lien to
         secure the Second Lien Notes and certain related obligations, subject
         to the terms of the Intercreditor Agreement.

         (d) Section 4.19(a) of the Credit Agreement is amended by adding after
the phrase "and the proceeds thereof" which appears in the second sentence the
phrase "to the extent a security interest can be perfected by filings or other
action required thereunder".

         (e) Section 4 of the Credit Agreement is amended by adding the
following at the end thereof:

         4.24 First Priority Claims. The Borrower Obligations and the Guarantor
         Obligations (as such terms are defined in the Guarantee and Collateral
         Agreement) constitute First Priority Claims (as defined in the
         Intercreditor Agreement and the Second Lien Note Indenture), and the
         Liens on the Collateral securing the Borrower Obligations and the
         Guarantor Obligations constitute First Priority Liens (as defined in
         the Second Lien Note Indenture).

         (f) Section 6.10 of the Credit Agreement is amended by adding the
following paragraphs at the end thereof:

                           (e) Not permit any Subsidiary to guarantee payment of
                  any of the Second Priority Claims unless and until such
                  Subsidiary has guaranteed payment of the First Priority Claims
                  pursuant to the Guarantee and Collateral Agreement.

                           (f) Except as required by the terms of the Indenture
                  or the Second Priority Collateral Documents, prior to taking
                  any action to create or perfect any Lien on any Collateral
                  securing the Second Priority Claims provide the Administrative
                  Agent at least five Business Days prior notice of such action,
                  and promptly following the taking of any action to create or
                  perfect any Lien on any Collateral securing the Second
                  Priority Claims notify the Administrative Agent in writing of
                  such action; provided that no such notice of the type
                  described in this paragraph (f) shall be required during the
                  first 60 days following the Fourth Amendment Effective Date.

<PAGE>

                                                                               5

                           (g) Upon request of the Administrative Agent from
                  time to time promptly provide the Administrative Agent with
                  information regarding any property of the Borrower and its
                  Subsidiaries which secures or purports to secure any Second
                  Priority Claims and the actions taken to create or perfect the
                  applicable Liens, to the extent such information is reasonably
                  available to the Borrower or its Subsidiaries and is not
                  subject to any legal or similar privilege.

         (g) Section 7.2 of the Credit Agreement is amended by adding after the
phrase "Hedge Agreements" in clause (g) the phrase "(including Guarantee
Obligations of the Loan Parties in respect of Hedge Agreements entered into by
Tenneco Management (Europe) Limited or any Subsidiary that succeeds Tenneco
Management (Europe) Limited in the performance of international treasury
management functions)".

         (h) Section 7.2 of the Credit Agreement is amended by (i) deleting the
word "and" from the end of clause (j), (ii) deleting the period at the end of
clause (k) and substituting therefor the phrase "; and" and (iii) adding the
following new clause at the end thereof:

                  (l) (i) Indebtedness of the Borrower in respect of the Second
         Lien Notes and any refinancings, refundings, renewals or extensions
         thereof on terms and conditions no more restrictive to the Borrower and
         its Subsidiaries unless approved by the Administrative Agent
         ("Permitted Second Lien Notes Refinancing"), provided, that (A) the
         Borrower shall not, in any case, increase, or shorten the maturity of,
         the principal amount thereof, or make any payment which effectively
         reduces the outstanding principal amount thereof and (B) the Borrower's
         and the Subsidiary Guarantors' obligations under the Permitted Second
         Lien Notes Refinancing shall constitute Second Priority Claims, and any
         collateral security therefor shall be subordinated to collateral
         securing the First Priority Claims, as set forth in the Intercreditor
         Agreement, and (ii) Guarantee Obligations of any Subsidiary Guarantor
         in respect of such Indebtedness.

         (i) Section 7.3 of the Credit Agreement is amended by (i) deleting the
word "and" from the end of clause (n), (ii) deleting the period at the end of
clause (o) and substituting therefor the phrase "; and" and (iii) adding the
following new clause at the end thereof:

                  (p) Liens on the Collateral securing Indebtedness of the
         Borrower or any Subsidiary incurred pursuant to Section 7.2(l),
         provided that such Liens are, at all times prior to repayment in full
         in cash of the Obligations and termination of the Revolving
         Commitments, subordinate to Liens created under the Loan Documents
         securing the First Priority Claims pursuant to the terms of the
         Intercreditor Agreement.

         (j) Section 7.5 of the Credit Agreement is amended by (i) adding in
clause (g) after the phrase "(a)-(f) above" the phrase "or (h)-(m) below", (ii)
deleting the word "and" from the end of clause (j), (iii) deleting the period at
the end of clause (k) and substituting therefor a semi-colon and (iv) adding the
following at the end thereof:

                  (l) Tenneco International Holding Corp. ("TIHC") may transfer
         or contribute ownership of Tenneco Holdings Denmark to Tenneco
         Automotive Iberica; and

<PAGE>

                                                                               6

                  (m) the Disposition of property as an Investment made pursuant
         to Section 7.8(h) in any Joint Venture or in any Person who, prior to
         the Investment, is not a Subsidiary and who becomes, as a result of the
         Investment, a Subsidiary that is not a Wholly-Owned Subsidiary.

         (k) Section 7.7 of the Credit Agreement is amended by inserting after
the phrase "Joint Ventures" the phrase "and in any Person who, prior to the
Investment, is not a Subsidiary and who becomes, as a result of the Investment,
a Subsidiary that is not a Wholly-Owned Subsidiary".

         (l) Section 7.8(h) of the Credit Agreement is amended by inserting
after the phrase "Joint Ventures" the phrase "and in any Person who, prior to
the Investment, is not a Subsidiary and who becomes, as a result of the
Investment, a Subsidiary that is not a Wholly-Owned Subsidiary".

         (m) Section 7.9 of the Credit Agreement is amended by deleting the last
sentence thereof and substituting therefor the following:

         Notwithstanding the foregoing or anything in Section 7.16, the Borrower
         may purchase and cancel or redeem its Senior Subordinated Notes and
         Second Lien Notes in connection with an exchange of such Notes for
         shares of common stock issued by the Borrower after the Fourth
         Amendment Effective Date.

         (n) Section 7 of the Credit Agreement is amended by adding the
following at the end thereof:

                  7.16 Optional Payments and Modifications of Second Lien Notes.
         (a) Except for Permitted Second Lien Notes Refinancings, make or offer
         to make any optional or voluntary payment, prepayment, repurchase or
         redemption of or otherwise optionally or voluntarily defease or
         segregate funds with respect to the Second Lien Notes, or (b) amend,
         modify, waive or otherwise change, or consent or agree to any
         amendment, modification, waiver or other change to, any of the terms of
         the Second Lien Notes or the Second Lien Note Indenture (other than any
         such amendment, modification, waiver or other change that (i) (A) would
         extend the maturity or reduce the amount of any payment of principal
         thereof or reduce the rate or extend any date for payment of interest
         thereon and (B) does not involve the payment of a consent fee or (ii)
         is not adverse to the holders of the First Priority Claims).

         (o) Section 8 of the Credit Agreement is amended by adding in paragraph
(e) the phrase "or the Second Lien Note Indenture" immediately after the phrase
"Senior Subordinated Note Indenture".

         (p) Section 8 of the Credit Agreement is amended by (i) deleting the
word "or" after clause (k), (ii) adding the word "or" at the end of clause (l),
and (iii) adding the following paragraph immediately after paragraph (l):

<PAGE>

                                                                               7

                  (m) any Lien securing or purporting to secure the Second
         Priority Claims shall cease, for any reason, to be subordinated to the
         Lien created under the Loan Documents securing or purporting to secure
         the First Priority Claims, as provided in the Intercreditor Agreement,
         or any Loan Party, any Affiliate of any Loan Party, the trustee in
         respect of the Second Lien Notes or the holders of at least 25% in
         aggregate principal amount of the Second Lien Notes shall so assert; or
         the Borrower or any of its Subsidiaries shall make any payment,
         prepayment, repurchase or redemption of or on the Second Lien Notes
         other than scheduled payments of interest or pursuant to a Permitted
         Second Lien Notes Refinancing;

                  3. Representations and Warranties. The Borrower hereby
confirms that the representations and warranties set forth in Section 4 of the
Credit Agreement, as amended by this Fourth Amendment, are true and correct in
all material respects as if made as of the Fourth Amendment Effective Date
(except such representations and warranties as are made as of a particular date,
which such representations and warranties shall be true and correct in all
material respects as if made as of such date). The Borrower represents and
warrants that, after giving effect to this Fourth Amendment, no Default or Event
of Default has occurred and is continuing.

                  4. Effectiveness. This Fourth Amendment shall become effective
as of the date of receipt by the Administrative Agent of (a) counterparts of
this Fourth Amendment executed by the Borrower, the Required Lenders and the
Majority Facility Lenders under each of the Tranche A Term Facility, the Tranche
B Term Facility and the Tranche C Term Facility and (b) payment for all fees
required to be paid and all expenses for which invoices have been presented
(including the reasonable fees and expenses of legal counsel) (the "Effective
Date").

                  5. Amendment of Security Documents. The Lenders authorize the
Administrative Agent to enter into amendments to and supplements of the Security
Documents (in forms reasonably satisfactory to the Administrative Agent) in
order to (a) allow (i) Hedge Agreements entered into by Tenneco Management
(Europe) Limited or any Subsidiary that succeeds Tenneco Management (Europe)
Limited in the performance of international treasury management functions with
any Lender or affiliate of a Lender and (ii) cash management obligations owed by
Tenneco or its subsidiaries to Lenders and their affiliates to be secured by the
Collateral and guaranteed pursuant to the Security Documents, (b) update the
Security Documents for changes in law, including changes in the Uniform
Commercial Code, (c) add additional Collateral thereunder and (d) effect other
similar changes. In furtherance of the foregoing, the parties hereto agree that,
upon or following the effectiveness of this Fourth Amendment, the Guarantee and
Collateral Agreement (including the schedules and annexes thereto) may be
amended, amended and restated, or otherwise modified as the Borrower and the
Administrative Agent shall agree from time to time for the purposes of (i)
updating the terms of the Guarantee and Collateral Agreement to conform to
changes in law, including revisions to Article 9 of the Uniform Commercial Code,
(ii) refining the representations, warranties and covenants contained therein
with respect to the description of and perfection of security interests in
foreign and ancillary intellectual property collateral and (iii) conforming the
representation in Section 4.2 thereof in a manner consistent with the
representation set forth in Section 4.19(a) of the Credit Agreement, as amended
by this Fourth Amendment.

<PAGE>

                                                                               8

                  6. Continuing Effect of the Credit Agreement. This Fourth
Amendment shall not constitute an amendment of any provision of the Credit
Agreement not expressly referred to herein and shall not be construed as a
waiver or consent to any further or future action on the part of the Borrower
that would require a waiver or consent of the Lenders, the Administrative Agent
or the Other Agents. Except as expressly amended hereby, the provisions of the
Credit Agreement are and shall remain in full force and effect. Sections 2(d)
and 5 of this Fourth Amendment shall be deemed to be in effect for all
applicable periods prior to the Effective Date.

                  7. Counterparts. This Fourth Amendment may be executed by the
parties hereto in any number of separate counterparts (including telecopied
counterparts), each of which shall be deemed to be an original, and all of which
taken together shall be deemed to constitute one and the same instrument.

                  8. GOVERNING LAW. THIS FOURTH AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this Fourth
Amendment to be duly executed and delivered by their respective proper and duly
authorized officers as of the day and year first above written.

                                           TENNECO AUTOMOTIVE INC.

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

                                           JPMORGAN CHASE BANK, as
                                           Administrative Agent and as a Lender

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

                                           CITICORP USA, INC., as Syndication
                                           Agent and as a Lender

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

<PAGE>

                                           FOURTH AMENDMENT dated as of May 29,
                                           2003 to the Tenneco Automotive Inc.
                                           Credit Agreement dated as of
                                           September 30, 1999

                                           -------------------------------------
                                                         [LENDER]

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

<PAGE>

Each of the undersigned agrees to the
foregoing Fourth Amendment and confirms
that its obligations under the Loan Documents
to which it is a party remain in full force
and effect after giving effect to such Fourth
Amendment:

TENNECO AUTOMOTIVE OPERATING COMPANY INC.
TENNECO INTERNATIONAL HOLDING CORP.
TENNECO GLOBAL HOLDINGS INC.
THE PULLMAN COMPANY
TMC TEXAS INC.
CLEVITE INDUSTRIES INC.

By:
   ----------------------------------
   Name:
   Title:<PAGE>
                                                                  EXECUTION COPY

================================================================================

                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                            TENNECO AUTOMOTIVE INC.,

                   TENNECO AUTOMOTIVE OPERATING COMPANY INC.,

                      TENNECO INTERNATIONAL HOLDING CORP.,

                          TENNECO GLOBAL HOLDINGS INC.,

                              THE PULLMAN COMPANY,

                                 TMC TEXAS INC.

                                       and

                             CLEVITE INDUSTRIES INC.

                                   in favor of

                            THE CHASE MANHATTAN BANK,

                             as Administrative Agent

                          Dated as of November 4, 1999

================================================================================

<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----
<S>                                                                                                             <C>
SECTION 1. DEFINED TERMS..........................................................................................2

         1.1      Definitions.....................................................................................2
         1.2      Other Definitional Provisions...................................................................6

SECTION 2. GUARANTEE..............................................................................................6

         2.1      Guarantee.......................................................................................6
         2.2      Right of Contribution...........................................................................7
         2.3      No Subrogation..................................................................................7
         2.4      Amendments, etc. with respect to the Borrower Obligations.......................................8
         2.5      Guarantee Absolute and Unconditional............................................................8
         2.6      Reinstatement...................................................................................9
         2.7      Payments........................................................................................9

SECTION 3. GRANT OF SECURITY INTEREST.............................................................................9

SECTION 4. REPRESENTATIONS AND WARRANTIES........................................................................10

         4.1      Title; No Other Liens..........................................................................10
         4.2      Perfected First Priority Liens.................................................................11
         4.3      Jurisdiction of Organization...................................................................11
         4.4      Inventory and Equipment........................................................................11
         4.5      Farm Products..................................................................................11
         4.6      Investment Property............................................................................11
         4.7      Receivables....................................................................................12
         4.8      Intellectual Property..........................................................................12

SECTION 5. COVENANTS.............................................................................................13

         5.1      Delivery of Instruments, Certificated Securities and Chattel Paper.............................13
         5.2      Maintenance of Insurance.......................................................................13
         5.3      Payment of Obligations.........................................................................13
         5.4      Maintenance of Perfected Security Interest; Further Documentation..............................14
         5.5      Changes in Jurisdiction of Organization, Locations, Name, etc..................................14
         5.6      Notices........................................................................................15
         5.7      Investment Property............................................................................15
         5.8      Receivables....................................................................................16
         5.9      Intellectual Property..........................................................................16
         5.10     Jurisdiction of Organization...................................................................18
         5.11     Commercial Tort Claims.........................................................................18
</TABLE>

                                              i
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----
<S>                                                                                                             <C>
SECTION 6. REMEDIAL PROVISIONS...................................................................................18

         6.1      Certain Matters Relating to Receivables........................................................18
         6.2      Communications with Obligors; Grantors Remain Liable...........................................19
         6.3      Pledged Stock..................................................................................20
         6.4      Proceeds to be Turned Over To Administrative Agent.............................................20
         6.5      Application of Proceeds........................................................................21
         6.6      Code and Other Remedies........................................................................21
         6.7      Registration Rights............................................................................22
         6.8      Deficiency.....................................................................................23

SECTION 7. THE ADMINISTRATIVE AGENT..............................................................................23

         7.1      Administrative Agent's Appointment as Attorney-in-Fact, etc....................................23
         7.2      Duty of Administrative Agent...................................................................25
         7.3      Financing Statements...........................................................................25
         7.4      Authority of Administrative Agent..............................................................26

SECTION 8. MISCELLANEOUS.........................................................................................26

         8.1      Amendments in Writing..........................................................................26
         8.2      Notices........................................................................................26
         8.3      No Waiver by Course of Conduct; Cumulative Remedies............................................26
         8.4      Enforcement Expenses; Indemnification..........................................................27
         8.5      Successors and Assigns.........................................................................27
         8.6      Set-Off........................................................................................27
         8.7      Counterparts...................................................................................28
         8.8      Severability...................................................................................28
         8.9      Section Headings...............................................................................28
         8.10     Integration....................................................................................28
         8.11     GOVERNING LAW..................................................................................28
         8.12     Submission To Jurisdiction; Waivers............................................................29
         8.13     Acknowledgements...............................................................................29
         8.14     Additional Grantors............................................................................30
         8.15     Releases.......................................................................................30
         8.16     WAIVER OF JURY TRIAL...........................................................................30
         8.17     Amendment and Restatement......................................................................30
</TABLE>

                                       ii
<PAGE>

SCHEDULES

Schedule 1        Notice Addresses
Schedule 2        Investment Property
Schedule 3        Perfection Matters
Schedule 4        Jurisdictions of Organization and Chief Executive Offices
Schedule 5        Inventory and Equipment Locations
Schedule 6        Intellectual Property

ANNEX

Annex 1  Assumption Agreement

                                      iii

<PAGE>
                                                                  EXECUTION COPY

                       GUARANTEE AND COLLATERAL AGREEMENT

                  GUARANTEE AND COLLATERAL AGREEMENT, dated as of November 4,
1999, made by each of the signatories hereto (together with any other entity
that may become a party hereto as provided herein, the "Grantors"), in favor of
JPMORGAN CHASE BANK, as Administrative Agent (in such capacity, the
"Administrative Agent") for the banks and other financial institutions (the
"Lenders") from time to time parties to the Credit Agreement, dated as of
September 30, 1999 (as amended, supplemented or otherwise modified from time to
time, the "Credit Agreement"), among Tenneco Automotive Inc. (formerly known as
Tenneco, Inc.), a Delaware corporation (the "Borrower"), the Lenders,
Commerzbank, AG and Bank of America, N.A., as co-documentation agents, Citicorp
USA, Inc., as syndication agent, and the Administrative Agent.

                              W I T N E S S E T H:

                  WHEREAS, pursuant to the Credit Agreement, the Lenders have
severally made and agreed to make extensions of credit to the Borrower upon the
terms and subject to the conditions set forth therein;

                  WHEREAS, the Borrower is a member of an affiliated group of
companies that includes each other Grantor;

                  WHEREAS, the proceeds of the extensions of credit under the
Credit Agreement have been and will be used in part to enable the Borrower to
make valuable transfers to one or more of the other Grantors in connection with
the operation of their respective businesses;

                  WHEREAS, the Borrower and the other Grantors are engaged in
related businesses, and each Grantor derives and will derive substantial direct
and indirect benefit from the making of the extensions of credit under the
Credit Agreement;

                  WHEREAS, the Grantors and the Administrative Agent are parties
to the Guarantee and Collateral Agreement dated as of November 4, 1999, as
amended prior to June 19, 2003 (the "Original Guarantee and Collateral
Agreement");

                  WHEREAS, it is a condition precedent to the obligation of the
Lenders to make their respective extensions of credit to the Borrower under the
Credit Agreement that the Grantors shall have executed and delivered this
Agreement to the Administrative Agent for the ratable benefit of the Lenders;

                  Whereas, in connection with the Fourth Amendment, dated as of
May 29, 2003 (the "Fourth Amendment"), to the Credit Agreement, the parties
hereto wish to revise the Original Guarantee and Collateral Agreement pursuant
to this Agreement; and

                  WHEREAS, for convenience the parties hereto desire to amend
and restate the Original Guarantee and Collateral Agreement pursuant to this
Agreement rather than amend the Original Guarantee and Collateral Agreement,

<PAGE>
                                                                               2

                  NOW, THEREFORE, in consideration of the premises and to induce
the Administrative Agent and the Lenders to enter into the Fourth Amendment to
the Credit Agreement and to induce the Lenders to make their respective
extensions of credit to the Borrower under the Credit Agreement, the Original
Guarantee and Collateral Agreement is hereby amended and restated as of the
Restatement Date (as defined below) as follows:

                           SECTION 1. DEFINED TERMS

                  1.1 Definitions. (a) Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given to
them in the Credit Agreement, and the following terms are used herein as defined
in the New York UCC: Accounts, Certificated Security, Chattel Paper, Commercial
Tort Claims, Documents, Equipment, Farm Products, Instruments, Inventory, Letter
of Credit Rights and Supporting Obligations.

                  (b) The following terms shall have the following meanings:

                  "Agreement": the Original Guarantee and Collateral Agreement,
         as amended and restated by this Guarantee and Collateral Agreement, as
         the same may be further amended, supplemented or otherwise modified
         from time to time.

                  "Borrower Obligations": the collective reference to the unpaid
         principal of and interest on the Loans and Reimbursement Obligations
         and all other obligations and liabilities of the Borrower (including,
         without limitation, interest accruing at the then applicable rate
         provided in the Credit Agreement after the maturity of the Loans and
         Reimbursement Obligations and interest accruing at the then applicable
         rate provided in the Credit Agreement after the filing of any petition
         in bankruptcy, or the commencement of any insolvency, reorganization or
         like proceeding, relating to the Borrower, whether or not a claim for
         post-filing or post-petition interest is allowed in such proceeding) to
         the Administrative Agent or any Lender (or, in the case of any Lender
         Hedge Agreement or Cash Management Obligations, any Affiliate of any
         Lender), whether direct or indirect, absolute or contingent, due or to
         become due, or now existing or hereafter incurred, which may arise
         under, out of, or in connection with, the Credit Agreement, this
         Agreement, the other Loan Documents, any Letter of Credit, any Lender
         Hedge Agreement (including any guarantees of the Borrower of any Lender
         Hedge Agreements entered into by Tenneco Management (Europe) Limited or
         any Subsidiary that succeeds Tenneco Management (Europe) Limited in the
         performance of international treasury management functions for the
         Company), any Cash Management Obligation (including any guarantees of
         the Borrower of any Cash Management Obligations entered into by any
         Subsidiary) or any other document made, delivered or given in
         connection with any of the foregoing, in each case whether on account
         of principal, interest, reimbursement obligations, fees, indemnities,
         costs, expenses or otherwise (including, without limitation, all fees
         and disbursements of counsel to the Administrative Agent or to the
         Lenders that are required to be paid by the Borrower pursuant to the
         terms of any of the foregoing agreements).

<PAGE>
                                                                               3

                  "Cash Management Obligation": any obligation of the Borrower
         or any of its Subsidiaries in respect of overdrafts and related
         liabilities owed to any Lender (or any Affiliate of a Lender) that
         arise from treasury, depositary or cash management services including
         in connection with any automated clearing house transfers of funds or
         any similar transactions.

                  "Collateral":  as defined in Section 3.

                  "Collateral Account": any collateral account established by
         the Administrative Agent as provided in Section 6.1 or 6.4.

                  "Copyrights": (i) all copyrights arising under the laws of the
         United States, any other country or any political subdivision thereof,
         whether registered or unregistered and whether published or unpublished
         (including, without limitation, those listed in Schedule 6), all
         registrations and recordings thereof, and all applications in
         connection therewith, including, without limitation, all registrations,
         recordings and applications in the United States Copyright Office, and
         (ii) the right to obtain all renewals thereof.

                  "Copyright Licenses": any written agreement naming any Grantor
         as licensor or, any written agreement naming any Grantor as licensee to
         the extent such agreement permits the Grantor to grant a security
         interest in its rights thereunder, including, without limitation, those
         listed in Schedule 6, granting any right under any Copyright,
         including, without limitation, the grant of rights to manufacture,
         distribute, exploit and sell materials derived from any Copyright.

                  "Deposit Account": as defined in the Uniform Commercial Code
         of any applicable jurisdiction and, in any event, including, without
         limitation, any demand, time, savings, passbook or like account
         maintained with a depositary institution.

                  "Foreign Subsidiary": any Subsidiary organized under the laws
         of any jurisdiction outside the United States of America.

                  "Foreign Subsidiary Voting Stock": the voting Capital Stock of
         any Foreign Subsidiary.

                  "General Intangibles": all "general intangibles" as such term
         is defined in Section 9-102(a)(42) of the New York UCC and, in any
         event, including, without limitation, with respect to any Grantor, all
         contracts, agreements, instruments and indentures in any form, and
         portions thereof, to which such Grantor is a party or under which such
         Grantor has any right, title or interest or to which such Grantor or
         any property of such Grantor is subject, as the same may from time to
         time be amended, supplemented or otherwise modified, including, without
         limitation, (i) all rights of such Grantor to receive moneys due and to
         become due to it thereunder or in connection therewith, (ii) all rights
         of such Grantor to damages arising thereunder and (iii) all rights of
         such Grantor to perform and to exercise all remedies thereunder.

<PAGE>
                                                                               4

                  "Guarantor Obligations": with respect to any Guarantor, all
         obligations and liabilities of such Guarantor which may arise under or
         in connection with this Agreement (including, without limitation,
         Section 2) or any other Loan Document to which such Guarantor is a
         party, in each case whether on account of guarantee obligations,
         reimbursement obligations, fees, indemnities, costs, expenses or
         otherwise (including, without limitation, all fees and disbursements of
         counsel to the Administrative Agent or to the Lenders that are required
         to be paid by such Guarantor pursuant to the terms of this Agreement or
         any other Loan Document).

                  "Guarantors": the collective reference to each Grantor other
         than the Borrower.

                  "Immaterial Foreign Subsidiary": at any time, any Foreign
         Subsidiary of the Borrower having total assets (as determined in
         accordance with GAAP) in an amount of less than 1% of Consolidated
         Total Assets of the Borrower; provided, however, that the total assets
         (as so determined) of all Immaterial Foreign Subsidiaries shall not
         exceed 5% of Consolidated Total Assets of the Borrower. In the event
         that the total assets of all Immaterial Foreign Subsidiaries exceed 5%
         of Consolidated Total Assets of the Borrower, the Borrower will
         designate Foreign Subsidiaries which would otherwise constitute
         Immaterial Foreign Subsidiaries to be excluded as Immaterial Foreign
         Subsidiaries until such 5% threshold is met.

                  "Intellectual Property": the collective reference to all
         rights, priorities and privileges relating to intellectual property,
         whether arising under United States, multinational or foreign laws or
         otherwise, including, without limitation, the Copyrights, the Copyright
         Licenses, the Patents, the Patent Licenses, the Trademarks and the
         Trademark Licenses, and all rights to sue at law or in equity for any
         infringement or other impairment thereof, including the right to
         receive all proceeds and damages therefrom.

                  "Intercompany Note": any promissory note evidencing loans made
         by any Grantor to the Borrower or any of its Subsidiaries.

                  "Investment Property": the collective reference to (i) all
         "investment property" as such term is defined in Section 9-102(a)(49)
         of the New York UCC (other than any Foreign Subsidiary Voting Stock
         excluded from the definition of "Pledged Stock") and (ii) whether or
         not constituting "investment property" as so defined, all Pledged Notes
         and all Pledged Stock.

                  "Issuers": the collective reference to each issuer of any
         Investment Property.

                  "Lender Hedge Agreements": all interest rate swaps, caps or
         collar agreements or similar arrangements entered into by the Borrower
         or Tenneco Management (Europe) Limited or any Subsidiary that succeeds
         Tenneco Management (Europe) Limited in the performance of international
         treasury management functions for the Borrower with any Lender (or any
         Affiliate of any Lender) providing for protection against fluctuations
         in interest rates or currency exchange rates or the exchange of nominal
         interest obligations, either generally or under specific contingencies.

<PAGE>
                                                                               5

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

                  "Obligations": (i) in the case of the Borrower, the Borrower
         Obligations, and (ii) in the case of each Guarantor, its Guarantor
         Obligations.

                  "Patents": (i) all letters patent of the United States, any
         other country or any political subdivision thereof, all reissues and
         extensions thereof and all goodwill associated therewith, including,
         without limitation, any of the foregoing referred to in Schedule 6,
         (ii) all applications for letters patent of the United States or any
         other country and all divisions, continuations and
         continuations-in-part thereof, including, without limitation, any of
         the foregoing referred to in Schedule 6, and (iii) all rights to obtain
         any reissues or extensions of the foregoing.

                  "Patent License": all agreements, whether written or oral,
         providing for (i) the grant by any Grantor of any right to manufacture,
         use or sell any invention covered in whole or in part by a Patent and
         (ii) the grant to any Grantor of any right to manufacture, use or sell
         any invention covered in whole or in part by a Patent (to the extent
         such agreement permits the Grantor to grant a security interest in its
         rights thereunder), including, without limitation, any of the foregoing
         referred to in Schedule 6.

                  "Pledged Notes": all promissory notes listed on Schedule 2,
         all Intercompany Notes at any time issued to any Grantor and all other
         promissory notes issued to or held by any Grantor (other than
         promissory notes issued in connection with extensions of trade credit
         by any Grantor in the ordinary course of business).

                  "Pledged Stock": the shares of Capital Stock listed on
         Schedule 2, together with any other shares, stock certificates, options
         or rights of any nature whatsoever in respect of the Capital Stock of
         any Person that may be issued or granted to, or held by, any Grantor
         while this Agreement is in effect other than the Capital Stock of any
         Immaterial Foreign Subsidiary; provided that in no event shall more
         than 66% of the total outstanding Foreign Subsidiary Voting Stock of
         any Foreign Subsidiary be required to be pledged hereunder, provided,
         further, that the Borrower shall not be obligated to pledge the Capital
         Stock of a Foreign Subsidiary to the extent such pledge would violate
         the laws of the jurisdiction of such Foreign Subsidiary's organization.

                  "Proceeds": all "proceeds" as such term is defined in Section
         9-102(a)(64) of the New York UCC and, in any event, shall include,
         without limitation, all dividends or other income from the Investment
         Property, collections thereon or distributions or payments with respect
         thereto.

                  "Receivable": any right to payment for goods sold or leased or
         for services rendered, whether or not such right is evidenced by an
         Instrument or Chattel Paper and whether or not it has been earned by
         performance (including, without limitation, any Account).

<PAGE>
                                                                               6

                  "Restatement Date":  June 19, 2003.

                  "Securities Act":  the Securities Act of 1933, as amended.

                  "Trademarks": (i) all trademarks, trade names, corporate
         names, company names, business names, fictitious business names, trade
         styles, service marks, logos and other source or business identifiers,
         and all goodwill associated therewith, now existing or hereafter
         adopted or acquired, all registrations and recordings thereof, and all
         applications in connection therewith, whether in the United States
         Patent and Trademark Office or in any similar office or agency of the
         United States, any State thereof or any other country or any political
         subdivision thereof, or otherwise, and all common-law rights related
         thereto, including, without limitation, any of the foregoing referred
         to in Schedule 6, and (ii) the right to obtain all renewals thereof.

                  "Trademark License": any agreement, whether written or oral,
         providing for (i) the grant by any Grantor of any right to use any
         Trademark and (ii) the grant to any Grantor of any right to use any
         Trademark (to the extent such agreement permits the Grantor to grant a
         security interest in its rights thereunder), including, without
         limitation, any of the foregoing referred to in Schedule 6.

                  1.2 Other Definitional Provisions. (a) The words "hereof,"
"herein", "hereto" and "hereunder" and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section and Schedule references are to this
Agreement unless otherwise specified.

                  (b) The meanings given to terms defined herein shall be
         equally applicable to both the singular and plural forms of such terms.

                  (c) Where the context requires, terms relating to the
         Collateral or any part thereof, when used in relation to a Grantor,
         shall refer to such Grantor's Collateral or the relevant part thereof.

                           SECTION 2. GUARANTEE

                  2.1 Guarantee. (a) Each of the Guarantors hereby, jointly and
severally, unconditionally and irrevocably, guarantees to the Administrative
Agent, for the ratable benefit of the Lenders and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and
performance by the Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

                  (b) Anything herein or in any other Loan Document to the
contrary notwithstanding, the maximum liability of each Guarantor hereunder and
under the other Loan Documents shall in no event exceed the amount which can be
guaranteed by such Guarantor under applicable federal and state laws relating to
the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

<PAGE>
                                                                               7

                  (c) Each Guarantor agrees that the Borrower Obligations may at
any time and from time to time exceed the amount of the liability of such
Guarantor hereunder without impairing the guarantee contained in this Section 2
or affecting the rights and remedies of the Administrative Agent or any Lender
hereunder.

                  (d) The guarantee contained in this Section 2 shall remain in
full force and effect until all the Borrower Obligations and the obligations of
each Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full, no Letter of Credit shall be outstanding and the
Commitments shall be terminated, notwithstanding that from time to time during
the term of the Credit Agreement the Borrower may be free from any Borrower
Obligations.

                  (e) No payment made by the Borrower, any of the Guarantors,
any other guarantor or any other Person or received or collected by the
Administrative Agent or any Lender from the Borrower, any of the Guarantors, any
other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Borrower Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the Borrower Obligations or any payment
received or collected from such Guarantor in respect of the Borrower
Obligations), remain liable for the Borrower Obligations up to the maximum
liability of such Guarantor hereunder until the Borrower Obligations are paid in
full, no Letter of Credit shall be outstanding and the Commitments are
terminated.

                  2.2 Right of Contribution. Each Guarantor hereby agrees that
to the extent that a Guarantor shall have paid more than its proportionate share
of any payment made hereunder, such Guarantor shall be entitled to seek and
receive contribution from and against any other Guarantor hereunder which has
not paid its proportionate share of such payment. Each Guarantor's right of
contribution shall be subject to the terms and conditions of Section 2.3. The
provisions of this Section 2.2 shall in no respect limit the obligations and
liabilities of any Guarantor to the Administrative Agent and the Lenders, and
each Guarantor shall remain liable to the Administrative Agent and the Lenders
for the full amount guaranteed by such Guarantor hereunder.

                  2.3 No Subrogation. Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Administrative Agent or any Lender, no Guarantor shall be entitled to be
subrogated to any of the rights of the Administrative Agent or any Lender
against the Borrower or any other Guarantor or any collateral security or
guarantee or right of offset held by the Administrative Agent or any Lender for
the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any
other Guarantor in respect of payments made by such Guarantor hereunder, until
all amounts owing to the Administrative Agent and the Lenders by the Borrower on
account of the Borrower Obligations are paid in full, no Letter of Credit shall
be outstanding and the Commitments are terminated. If any amount shall be paid
to any Guarantor on account of such subrogation rights at any time when all of
the Borrower Obligations shall not have been paid in full, such amount shall be
held by such

<PAGE>
                                                                               8

Guarantor in trust for the Administrative Agent and the Lenders, segregated from
other funds of such Guarantor, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Administrative Agent in the exact form received
by such Guarantor (duly indorsed by such Guarantor to the Administrative Agent,
if required), to be applied against the Borrower Obligations, whether matured or
unmatured, in such order as the Administrative Agent may determine.

                  2.4 Amendments, etc. with respect to the Borrower Obligations.
Each Guarantor shall remain obligated hereunder notwithstanding that, without
any reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations made by the Administrative Agent or any Lender may be rescinded by
the Administrative Agent or such Lender and any of the Borrower Obligations
continued, and the Borrower Obligations, or the liability of any other Person
upon or for any part thereof, or any collateral security or guarantee therefor
or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Administrative Agent or any Lender, and the
Credit Agreement and the other Loan Documents and any other documents executed
and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Administrative Agent (or the Required
Lenders or all Lenders, as the case may be) may deem advisable from time to
time, and any collateral security, guarantee or right of offset at any time held
by the Administrative Agent or any Lender for the payment of the Borrower
Obligations may be sold, exchanged, waived, surrendered or released. Neither the
Administrative Agent nor any Lender shall have any obligation to protect,
secure, perfect or insure any Lien at any time held by it as security for the
Borrower Obligations or for the guarantee contained in this Section 2 or any
property subject thereto.

                  2.5 Guarantee Absolute and Unconditional. Each Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Borrower Obligations and notice of or proof of reliance by the
Administrative Agent or any Lender upon the guarantee contained in this Section
2 or acceptance of the guarantee contained in this Section 2; the Borrower
Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance
upon the guarantee contained in this Section 2; and all dealings between the
Borrower and any of the Guarantors, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the guarantee
contained in this Section 2. Each Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
Borrower or any of the Guarantors with respect to the Borrower Obligations. Each
Guarantor understands and agrees that the guarantee contained in this Section 2
shall be construed as a continuing, absolute and unconditional guarantee of
payment without regard to (a) the validity or enforceability of the Credit
Agreement or any other Loan Document, any of the Borrower Obligations or any
other collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative Agent or any
Lender, (b) any defense, set-off or counterclaim (other than a defense of
payment or performance) which may at any time be

<PAGE>
                                                                               9

available to or be asserted by the Borrower or any other Person against the
Administrative Agent or any Lender, or (c) any other circumstance whatsoever
(with or without notice to or knowledge of the Borrower or such Guarantor) which
constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee contained in this Section 2, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and
remedies hereunder against any Guarantor, the Administrative Agent or any Lender
may, but shall be under no obligation to, make a similar demand on or otherwise
pursue such rights and remedies as it may have against the Borrower, any other
Guarantor or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and
any failure by the Administrative Agent or any Lender to make any such demand,
to pursue such other rights or remedies or to collect any payments from the
Borrower, any other Guarantor or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or any
release of the Borrower, any other Guarantor or any other Person or any such
collateral security, guarantee or right of offset, shall not relieve any
Guarantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Administrative Agent or any Lender against any Guarantor.
For the purposes hereof "demand" shall include the commencement and continuance
of any legal proceedings.

                  2.6 Reinstatement. The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Borrower Obligations is
rescinded or must otherwise be restored or returned by the Administrative Agent
or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Borrower or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.

                  2.7 Payments. Each Guarantor hereby guarantees that payments
hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the office of the Administrative Agent located at 270
Park Avenue, New York, New York 10017.

                           SECTION 3. GRANT OF SECURITY INTEREST

                  Each Grantor hereby assigns and transfers to the
Administrative Agent, and hereby grants to the Administrative Agent, for the
ratable benefit of the Lenders, a security interest in, all of the following
property now owned or at any time hereafter acquired by such Grantor or in which
such Grantor now has or at any time in the future may acquire any right, title
or interest (collectively, the "Collateral"), as collateral security for the
prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of such Grantor's Obligations:

                  (a) all Accounts;

                  (b) all Chattel Paper;

<PAGE>
                                                                              10

                  (c) all Deposit Accounts;

                  (d) all Documents;

                  (e) all Equipment;

                  (f) all General Intangibles;

                  (g) all Instruments;

                  (h) all Intellectual Property;

                  (i) all Inventory;

                  (j) all Investment Property;

                  (k) all Letter of Credit Rights;

                  (l) all Commercial Tort Claims in an amount in excess of
         $500,000 in which any Grantor has rights, as set forth on Schedule 7;

                  (m) all other property not otherwise described above;

                  (n) all books and records pertaining to the Collateral; and

                  (o) to the extent not otherwise included, all Proceeds,
         Supporting Obligations and products of any and all of the foregoing and
         all collateral security and guarantees given by any Person with respect
         to any of the foregoing.

                    SECTION 4. REPRESENTATIONS AND WARRANTIES

                  To induce the Administrative Agent and the Lenders to enter
into the Credit Agreement and to induce the Lenders to make their respective
extensions of credit to the Borrower thereunder, each Grantor hereby represents
and warrants to the Administrative Agent and each Lender that:

                  4.1 Title; No Other Liens. Except (a) for the security
interest granted to the Administrative Agent for the ratable benefit of the
Lenders pursuant to this Agreement, (b) for the other Liens permitted to exist
on the Collateral by the Credit Agreement, and (c) those items set forth on
Schedule 6, such Grantor owns each item of the Collateral free and clear of any
and all Liens or claims of others. No financing statement or other public notice
with respect to all or any part of the Collateral is on file or of record in any
public office, except such as have been filed in favor of the Administrative
Agent, for the ratable benefit of the Lenders, pursuant to this Agreement or as
are permitted by the Credit Agreement.

                  4.2 Perfected First Priority Liens. The security interests
granted pursuant to this Agreement (a) upon completion of the filings and other
actions specified on Schedule 3

<PAGE>
                                                                              11

(which, in the case of all filings and other documents referred to on said
Schedule, have been delivered to the Administrative Agent in completed and, when
required, duly executed form unless otherwise referred to in such Schedule) will
constitute valid perfected security interests in all of the Collateral (to the
extent a perfected security interest is required pursuant to this Agreement and
except as otherwise stated on Schedule 3) in favor of the Administrative Agent,
for the ratable benefit of the Lenders, as collateral security for such
Grantor's Obligations, enforceable in accordance with the terms hereof against
all creditors of such Grantor and any Persons purporting to purchase any
Collateral from such Grantor and (b) are prior to all other Liens on the
Collateral in existence on the date hereof except as are permitted by the Credit
Agreement and except for unrecorded Liens permitted by the Credit Agreement
which have priority over the Liens on the Collateral by operation of law.

                  4.3 Jurisdiction of Organization. On the Restatement Date,
such Grantor's jurisdiction of organization, identification number from such
jurisdiction of organization (if any) and the location of such Grantor's chief
executive office or sole place of business are specified on Schedule 4.

                  4.4 Inventory and Equipment. On the Restatement Date, the
Inventory and the Equipment (other than mobile goods) are kept at the locations
listed on Schedule 5.

                  4.5 Farm Products. None of the Collateral constitutes, or is
the Proceeds of, Farm Products.

                  4.6 Investment Property. (a) The shares of Pledged Stock
pledged by such Grantor hereunder constitute all the issued and outstanding
shares of all classes of the Capital Stock of each Issuer owned by such Grantor
or, in the case of Foreign Subsidiary Voting Stock, if less, 66% of the
outstanding Foreign Subsidiary Voting Stock of each relevant Issuer owned by
such Grantor.

                  (b) All the shares of the Pledged Stock have been duly and
validly issued and are fully paid and nonassessable.

                  (c) Each of the Pledged Notes constitutes the legal, valid and
binding obligation of the obligor with respect thereto, enforceable in
accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors' rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

                  (d) Such Grantor is the record and beneficial owner of, and
has good and marketable title to, the Investment Property pledged by it
hereunder, free of any and all Liens or options in favor of, or claims of, any
other Person, except the security interest created by this Agreement and
security interests permitted by Section 7.3(p) of the Credit Agreement.

                  4.7 Receivables. (a) No amount payable to such Grantor under
or in connection with any Receivable is evidenced by any Instrument or Chattel
Paper which has not

<PAGE>
                                                                              12

been delivered to the Administrative Agent, except for any of the foregoing to
the extent subject to and included in a Permitted Receivables Financing.

                  (a) None of the obligors on any Receivables is a Governmental
Authority.

                  (b) The amounts represented by such Grantor to the Lenders
from time to time as owing to such Grantor in respect of the Receivables will at
such times be accurate.

                  4.8 Intellectual Property. (a) Except as otherwise set forth
on such Schedule, Schedule 6 lists all registered, and all material
unregistered, Intellectual Property owned by such Grantor in its own name on the
Restatement Date and all applications to register any such Intellectual
Property.

                  (b) On the Restatement Date, all material Intellectual
Property is valid, subsisting, unexpired and enforceable, has not been abandoned
and does not infringe the intellectual property rights of any other Person.

                  (c) Except as set forth in Schedule 6, on the Restatement
Date, none of the material Intellectual Property is the subject of any licensing
or franchise agreement pursuant to which such Grantor is the licensor or
franchisor.

                  (d) No holding, decision or judgment has been rendered by any
Governmental Authority which would limit, cancel or question the validity of, or
such Grantor's rights in, any Intellectual Property in any respect that would
reasonably be expected to have a Material Adverse Effect.

                  (e) No action or proceeding is pending, or, to the knowledge
of such Grantor, threatened, on the date hereof (i) seeking to limit, cancel or
question the validity of any Intellectual Property or such Grantor's ownership
interest therein, or (ii) which, if adversely determined, would have a material
adverse effect on the value of any material Intellectual Property.

                              SECTION 5. COVENANTS

                  Each Grantor covenants and agrees with the Administrative
Agent and the Lenders that, from and after the date of this Agreement until the
Obligations shall have been paid in full, no Letter of Credit shall be
outstanding and the Commitments shall have terminated:

                  5.1 Delivery of Instruments, Certificated Securities and
Chattel Paper. If any amount payable under or in connection with any of the
Collateral in excess of $500,000 shall be or become evidenced by any Instrument,
Certificated Security or Chattel Paper, such Instrument, Certificated Security
or Chattel Paper shall be immediately delivered to the Administrative Agent,
duly indorsed in a manner satisfactory to the Administrative Agent, to be held
as Collateral pursuant to this Agreement, except to the extent any of the
foregoing is subject to and included in a Permitted Receivables Financing.

<PAGE>
                                                                              13

                  5.2 Maintenance of Insurance. (a) Such Grantor will maintain,
with financially sound and reputable companies with A.M. Best ratings of A-III
or better, insurance policies (i) insuring the Inventory and Equipment against
loss by fire, explosion, theft and such other casualties and (ii) insuring such
Grantor, the Administrative Agent and the Lenders against liability for personal
injury and property damage relating to such Inventory and Equipment, in both
cases as is normal and customary for the automotive parts industry and mutually
agreeable to such Grantor and the Administrative Agent whose consent shall not
be unreasonably withheld.

                  (b) All such insurance shall (i) provide that no cancellation,
material reduction in amount or material change in coverage thereof shall be
effective until at least 30 days after receipt by the Administrative Agent of
written notice thereof, (ii) name the Administrative Agent as insured party or
additional loss payee as its interests may appear and (iii) be reasonably
satisfactory in all other respects to the Administrative Agent.

                  (c) The Borrower shall deliver to the Administrative Agent and
the Lenders a report of a reputable insurance broker with respect to such
insurance substantially concurrently with each delivery of the Borrower's
audited annual financial statements and such supplemental reports with respect
thereto as the Administrative Agent may from time to time reasonably request.

                  5.3 Payment of Obligations. Such Grantor will pay and
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all taxes, assessments and governmental charges
or levies imposed upon the Collateral or in respect of income or profits
therefrom, as well as all claims of any kind (including, without limitation,
claims for labor, materials and supplies) against or with respect to the
Collateral, except that no such charge need be paid if the amount or validity
thereof is currently being contested in good faith by appropriate proceedings,
reserves in conformity with GAAP with respect thereto have been provided on the
books of such Grantor and such proceedings would not reasonably be expected to
result in the sale, forfeiture or loss of any material portion of the Collateral
or any interest therein.

                  5.4 Maintenance of Perfected Security Interest; Further
Documentation. (a) Such Grantor shall maintain the security interest created by
this Agreement as a perfected security interest having at least the priority and
perfection described in Section 4.2 (and as otherwise reasonably requested by
the Administrative Agent) and shall defend such security interest against the
claims and demands of all Persons whomsoever.

                  (b) Such Grantor will furnish to the Administrative Agent and
the Lenders from time to time statements and schedules further identifying and
describing the assets and property of such Grantor constituting Collateral and
such other reports in connection therewith as the Administrative Agent may
reasonably request, all in reasonable detail.

                  (c) At any time and from time to time, upon the written
request of the Administrative Agent, and at the sole expense of such Grantor,
such Grantor will promptly and duly execute and deliver, and have recorded, such
further instruments and documents and take such further actions as the
Administrative Agent may reasonably request for the purpose of

<PAGE>
                                                                              14

obtaining or preserving the full benefits of this Agreement and of the rights
and powers herein granted, including, without limitation, (i) filing any
financing or continuation statements under the Uniform Commercial Code (or other
similar laws) in effect in any jurisdiction with respect to the security
interests created hereby and (ii) in the case of Investment Property, Deposit
Accounts and any other relevant Collateral, taking any actions necessary to
enable the Administrative Agent to obtain "control" (within the meaning of the
applicable Uniform Commercial Code) with respect thereto.

                  5.5 Changes in Jurisdiction of Organization, Locations, Name,
etc. Such Grantor will not, except upon 15 days' prior written notice to the
Administrative Agent and delivery to the Administrative Agent of all additional
financing statements and other documents (executed where required) reasonably
requested by the Administrative Agent to maintain the validity, perfection and
priority of the security interests provided for herein:

                  (i) change its jurisdiction of organization or, if such
         Grantor does not have a jurisdiction of organization for purposes of
         the New York UCC, the location of its chief executive office or sole
         place of business from that referred to in Section 4.3; or

                  (ii) change its name.

                  5.6 Notices. Such Grantor will advise the Administrative Agent
and the Lenders promptly, in reasonable detail, of:

                  (a) any Lien (other than security interests created hereby or
Liens permitted under the Credit Agreement) on any of the Collateral which would
adversely affect the ability of the Administrative Agent to exercise any of its
remedies hereunder; and

                  (b) the occurrence of any other event which would reasonably
be expected to have a material adverse effect on the aggregate value of the
Collateral or on the security interests created hereby.

                  5.7 Investment Property. (a) If such Grantor shall become
entitled to receive or shall receive any stock certificate (including, without
limitation, any certificate representing a stock dividend or a distribution in
connection with any reclassification, increase or reduction of capital or any
certificate issued in connection with any reorganization), option or rights in
respect of the Capital Stock of any Issuer, whether in addition to, in
substitution of, as a conversion of, or in exchange for, any shares of the
Pledged Stock, or otherwise in respect thereof, such Grantor shall accept the
same as the agent of the Administrative Agent and the Lenders, hold the same in
trust for the Administrative Agent and the Lenders and deliver the same
forthwith to the Administrative Agent in the exact form received, duly indorsed
by such Grantor to the Administrative Agent, if required, together with an
undated stock power covering such certificate duly executed in blank by such
Grantor and with, if the Administrative Agent so requests, signature guaranteed,
to be held by the Administrative Agent, subject to the terms hereof, as
additional collateral security for the Obligations. Except as otherwise provided
in the Credit Agreement, any sums paid upon or in respect of the Investment
Property upon the liquidation or dissolution of any Issuer shall be paid over to
the Administrative Agent to be held by it

<PAGE>
                                                                              15

hereunder as additional collateral security for the Obligations, and in case any
distribution of capital shall be made on or in respect of the Investment
Property or any property shall be distributed upon or with respect to the
Investment Property pursuant to the recapitalization or reclassification of the
capital of any Issuer or pursuant to the reorganization thereof, the property so
distributed shall, unless otherwise subject to a perfected security interest in
favor of the Administrative Agent, be delivered to the Administrative Agent to
be held by it hereunder as additional collateral security for the Obligations.
If any sums of money or property so paid or distributed in respect of the
Investment Property shall be received by such Grantor, such Grantor shall, until
such money or property is paid or delivered to the Administrative Agent, hold
such money or property in trust for the Lenders, segregated from other funds of
such Grantor, as additional collateral security for the Obligations.

                  (b) Without the prior written consent of the Administrative
Agent, such Grantor will not (i) vote to enable, or take any other action to
permit, any Issuer to issue any stock or other equity securities of any nature
or to issue any other securities convertible into or granting the right to
purchase or exchange for any stock or other equity securities of any nature of
any Issuer (except pursuant to a transaction expressly permitted by the Credit
Agreement), (ii) sell, assign, transfer, exchange, or otherwise dispose of, or
grant any option with respect to, the Investment Property or Proceeds thereof
(except pursuant to a transaction expressly permitted by the Credit Agreement),
(iii) create, incur or permit to exist any Lien or option in favor of, or any
claim of any Person with respect to, any of the Investment Property or Proceeds
thereof, or any interest therein, except for the security interests created by
this Agreement except for Liens permitted by Section 7.3(p) of the Credit
Agreement or (iv) enter into any agreement or undertaking restricting the right
or ability of such Grantor or the Administrative Agent to sell, assign or
transfer any of the Investment Property or Proceeds thereof.

                  (c) In the case of each Grantor which is an Issuer, such
Issuer agrees that (i) it will be bound by the terms of this Agreement relating
to the Investment Property issued by it and will comply with such terms insofar
as such terms are applicable to it, (ii) it will notify the Administrative Agent
promptly in writing of the occurrence of any of the events described in Section
5.7(a) with respect to the Investment Property issued by it and (iii) the terms
of Sections 6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to
all actions that may be required of it pursuant to Section 6.3(c) or 6.7 with
respect to the Investment Property issued by it.

                  5.8 Receivables. (a) Other than in the ordinary course of
business consistent with its past practice, such Grantor will not (i) grant any
extension of the time of payment of any Receivable, (ii) compromise or settle
any Receivable for less than the full amount thereof, (iii) release, wholly or
partially, any Person liable for the payment of any Receivable, (iv) allow any
credit or discount whatsoever on any Receivable or (v) amend, supplement or
modify any Receivable in any manner that could adversely affect the value
thereof.

                  (b) Such Grantor will deliver to the Administrative Agent a
copy of each material demand, notice or document received by it that questions
or calls into doubt the validity or enforceability of more than 5% of the
aggregate amount of the then outstanding Receivables.

<PAGE>
                                                                              16

                  5.9 Intellectual Property. (a) Such Grantor (either itself or
through licensees) will (i) continue to use each material Trademark on each and
every trademark class of goods applicable to its current line as reflected in
its current catalogs, brochures and price lists in order to maintain such
Trademark in full force free from any claim of abandonment for non-use, (ii)
maintain as in the past the quality of products and services offered under such
Trademark, (iii) use such Trademark with the appropriate notice of registration
and all other notices and legends required by applicable Requirements of Law,
(iv) not adopt or use any mark which is confusingly similar or a colorable
imitation of such Trademark unless the Administrative Agent, for the ratable
benefit of the Lenders, shall obtain a perfected security interest in such mark
(to the extent a security interest in such mark may be perfected by filing under
the applicable Uniform Commercial Code, or similar law in a foreign
jurisdiction, or with the US Patent and Trademark Office, or corresponding
foreign office, and to the extent requested pursuant to clause (f) below)
pursuant to this Agreement, and (v) not (and not permit any licensee or
sublicensee thereof to) do any act or knowingly omit to do any act whereby such
Trademark may become invalidated or impaired in any way.

                  (b) Such Grantor (either itself or through licensees) will not
do any act, or omit to do any act, whereby any material Patent may become
forfeited, abandoned or dedicated to the public.

                  (c) Such Grantor (either itself or through licensees) (i) will
employ each material Copyright and (ii) will not (and will not permit any
licensee or sublicensee thereof to) do any act or knowingly omit to do any act
whereby any material portion of the Copyrights may become invalidated or
otherwise impaired. Such Grantor will not (either itself or through licensees)
do any act whereby any material portion of the Copyrights may fall into the
public domain.

                  (d) Such Grantor (either itself or through licensees) will not
do any act that knowingly uses any material Intellectual Property to infringe
the intellectual property rights of any other Person.

                  (e) Such Grantor will notify the Administrative Agent and the
Lenders immediately if it knows, or has reason to know, that any application or
registration relating to any material Intellectual Property may become
forfeited, abandoned or dedicated to the public, or of any adverse determination
or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any court or tribunal in
any country) regarding such Grantor's ownership of, or the validity of, any
material Intellectual Property subject to such an application or registration or
such Grantor's right to register the same or to own and maintain the same.

                  (f) Whenever such Grantor, either by itself or through any
agent, employee, licensee or designee, shall file an application for the
registration of any Intellectual Property with the United States Patent and
Trademark Office, the United States Copyright Office or any similar office or
agency in any other country or any political subdivision thereof, such Grantor
shall report such filing to the Administrative Agent within five Business Days
after the last day of the

<PAGE>
                                                                              17

fiscal quarter in which such filing occurs. Upon request of the Administrative
Agent, such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents, and papers as the Administrative Agent may
request to evidence the Administrative Agent's and the Lenders' security
interest in any Copyright, Patent or Trademark and the goodwill (if applicable)
and general intangibles of such Grantor relating thereto or represented thereby.

                  (g) Such Grantor will take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, to maintain
and pursue each application (and to obtain the relevant registration) and to
maintain each registration of the material registered Intellectual Property,
including, without limitation, filing of applications for renewal, affidavits of
use and affidavits of incontestability.

                  (h) In the event that any material Intellectual Property is
infringed, misappropriated or diluted by a third party, such Grantor shall (i)
take such actions as such Grantor shall reasonably deem appropriate under the
circumstances to protect such Intellectual Property and (ii) if such
Intellectual Property is of material economic value, promptly notify the
Administrative Agent after it learns thereof and sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution.

                  5.10 Jurisdiction of Organization. At the Administrative
Agent's request, each Grantor will provide its jurisdiction of organization,
identification number from the jurisdiction of organization (if any), and the
location of such Grantor's chief executive office or sole place of business. In
addition, the Administrative Agent may request, and such Grantor shall provide,
a certified charter, certificate of incorporation, or other organizational
document and long form good standing certificate from each Grantor.

                  5.11 Commercial Tort Claims. Such Grantor will advise the
Administrative Agent of such Grantor's interest in any Commercial Tort Claim in
an amount in excess of $500,000 in which such Grantor believes it has rights,
and such Grantor shall promptly provide the Administrative Agent with an updated
Schedule 7 describing such Commercial Tort Claim or such information with
respect thereto as the Administrative Agent may reasonably request in order to
attach and perfect a security interest therein in accordance with applicable
law.

                           SECTION 6. REMEDIAL PROVISIONS

                  6.1 Certain Matters Relating to Receivables. (a) The
Administrative Agent shall have the right to make test verifications of the
Receivables in any manner and through any medium that it reasonably considers
advisable, and each Grantor shall furnish all such assistance and information as
the Administrative Agent may require in connection with such test verifications
after the occurrence of an Event of Default. At any time and from time to time,
upon the Administrative Agent's request and at the expense of the relevant
Grantor, such Grantor shall cause independent public accountants or others
satisfactory to the Administrative Agent to

<PAGE>
                                                                              18

furnish to the Administrative Agent reports showing reconciliations, aging and
test verifications of, and trial balances for, the Receivables.

                  (b) The Administrative Agent hereby authorizes each Grantor to
collect such Grantor's Receivables, subject to the Administrative Agent's
direction and control, and the Administrative Agent may curtail or terminate
said authority at any time after the occurrence and during the continuance of an
Event of Default. If required by the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of
Receivables, when collected by any Grantor, (i) shall be forthwith (and, in any
event, within two Business Days) deposited by such Grantor in the exact form
received, duly indorsed by such Grantor to the Administrative Agent if required,
in a Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the
account of the Lenders only as provided in Section 6.5, and (ii) until so turned
over, shall be held by such Grantor in trust for the Administrative Agent and
the Lenders, segregated from other funds of such Grantor. Each such deposit of
Proceeds of Receivables shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the deposit.

                  (c) At the Administrative Agent's request, each Grantor shall
deliver to the Administrative Agent all original and other documents evidencing,
and relating to, the agreements and transactions which gave rise to the
Receivables, including, without limitation, all original orders, invoices and
shipping receipts.

                  6.2 Communications with Obligors; Grantors Remain Liable. (a)
The Administrative Agent in its own name or in the name of others may at any
time after the occurrence and during the continuance of an Event of Default
communicate with obligors under the Receivables and parties to any material
contract of any Grantor to verify with them to the Administrative Agent's
satisfaction the existence, amount and terms of any Receivables or any material
contract of any Grantor.

                  (b) Upon the request of the Administrative Agent at any time
after the occurrence and during the continuance of an Event of Default, each
Grantor shall notify obligors on the Receivables and parties to any material
contract of any Grantor that the Receivables and such contracts have been
assigned to the Administrative Agent for the ratable benefit of the Lenders and
that payments in respect thereof shall be made directly to the Administrative
Agent.

                  (c) Anything herein to the contrary notwithstanding, each
Grantor shall remain liable under each of the Receivables and material contracts
of any Grantor to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of any
agreement giving rise thereto. Neither the Administrative Agent nor any Lender
shall have any obligation or liability under any Receivable (or any agreement
giving rise thereto) or any contract of any Grantor by reason of or arising out
of this Agreement or the receipt by the Administrative Agent or any Lender of
any payment relating thereto, nor shall the Administrative Agent or any Lender
be obligated in any manner to perform any of the obligations of any Grantor
under or pursuant to any Receivable (or any agreement giving rise thereto) or
any contract of any Grantor, to make any payment, to make any inquiry as

<PAGE>
                                                                              19

to the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled
at any time or times.

                  6.3 Pledged Stock. (a) Unless an Event of Default shall have
occurred and be continuing and the Administrative Agent shall have given notice
to the relevant Grantor of the Administrative Agent's intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted
to receive all cash dividends paid in respect of the Pledged Stock and all
payments made in respect of the Pledged Notes, in each case paid in the normal
course of business of the relevant Issuer and consistent with past practice, to
the extent permitted in the Credit Agreement, and to exercise all voting and
corporate rights with respect to the Investment Property; provided, however,
that no vote shall be cast or corporate right exercised or other action taken
which, in the Administrative Agent's reasonable judgment, would impair the
Collateral or which would be inconsistent with or result in any violation of any
provision of the Credit Agreement, this Agreement or any other Loan Document.

                  (b) If an Event of Default shall occur and be continuing and
the Administrative Agent shall give notice of its intent to exercise such rights
to the relevant Grantor or Grantors, (i) the Administrative Agent shall have the
right to receive any and all cash dividends, payments or other Proceeds paid in
respect of the Investment Property and make application thereof to the
Obligations in such order as the Administrative Agent may determine, and (ii)
any or all of the Investment Property shall be registered in the name of the
Administrative Agent or its nominee, and the Administrative Agent or its nominee
may thereafter exercise (x) all voting, corporate and other rights pertaining to
such Investment Property at any meeting of shareholders of the relevant Issuer
or Issuers or otherwise and (y) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such
Investment Property as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate structure of any
Issuer, or upon the exercise by any Grantor or the Administrative Agent of any
right, privilege or option pertaining to such Investment Property, and in
connection therewith, the right to deposit and deliver any and all of the
Investment Property with any committee, depository, transfer agent, registrar or
other designated agency upon such terms and conditions as the Administrative
Agent may determine), all without liability except to account for property
actually received by it, but the Administrative Agent shall have no duty to any
Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

                  (c) Each Grantor hereby authorizes and instructs each Issuer
of any Investment Property pledged by such Grantor hereunder to (i) comply with
any instruction received by it from the Administrative Agent in writing that (x)
states that an Event of Default has occurred and is continuing and (y) is
otherwise in accordance with the terms of this Agreement, without any other or
further instructions from such Grantor, and each Grantor agrees that each Issuer
shall be fully protected in so complying, and (ii) unless otherwise expressly

<PAGE>
                                                                              20

permitted hereby, pay any dividends or other payments with respect to the
Investment Property directly to the Administrative Agent.

                  6.4 Proceeds to be Turned Over To Administrative Agent. In
addition to the rights of the Administrative Agent and the Lenders specified in
Section 6.1 with respect to payments of Receivables, if an Event of Default
shall occur and be continuing, all Proceeds received by any Grantor in respect
of Collateral consisting of cash, checks and other near-cash items shall be held
by such Grantor in trust for the Administrative Agent and the Lenders,
segregated from other funds of such Grantor, and shall, forthwith upon receipt
by such Grantor, be turned over to the Administrative Agent in the exact form
received by such Grantor (duly indorsed by such Grantor to the Administrative
Agent, if required). All Proceeds received by the Administrative Agent hereunder
shall be held by the Administrative Agent in a Collateral Account maintained
under its sole dominion and control. All Proceeds while held by the
Administrative Agent in a Collateral Account (or by such Grantor in trust for
the Administrative Agent and the Lenders) shall continue to be held as
collateral security for all the Obligations and shall not constitute payment
thereof until applied as provided in Section 6.5.

                  6.5 Application of Proceeds. At such intervals as may be
agreed upon by the Borrower and the Administrative Agent, or, if an Event of
Default shall have occurred and be continuing, at any time at the Administrative
Agent's election, the Administrative Agent may apply all or any part of Proceeds
held in any Collateral Account in payment of the Obligations in such order as
the Administrative Agent may elect, and any part of such funds which the
Administrative Agent elects not so to apply and deems not required as collateral
security for the Obligations shall be paid over from time to time by the
Administrative Agent to the Borrower or to whomsoever may be lawfully entitled
to receive the same. Any balance of such Proceeds remaining after the
Obligations shall have been paid in full, no Letters of Credit shall be
outstanding and the Commitments shall have terminated shall be paid over to the
Borrower or to whomsoever may be lawfully entitled to receive the same.

                  6.6 Code and Other Remedies. If an Event of Default shall
occur and be continuing, the Administrative Agent, on behalf of the Lenders, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under
the New York UCC or any other applicable law. Without limiting the generality of
the foregoing, the Administrative Agent, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law referred to below) to or upon any Grantor or any other
Person (all and each of which demands, defenses, advertisements and notices are
hereby waived), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do any
of the foregoing), in one or more parcels at public or private sale or sales, at
any exchange, broker's board or office of the Administrative Agent or any Lender
or elsewhere upon such terms and conditions as it may deem advisable and at such
prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk. The Administrative Agent or any Lender shall have
the right upon any such public sale or sales, and, to the extent permitted by
law, upon any such

<PAGE>
                                                                              21

private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in any Grantor, which right or
equity is hereby waived and released. Each Grantor further agrees, at the
Administrative Agent's request, to assemble the Collateral and make it available
to the Administrative Agent at places which the Administrative Agent shall
reasonably select, whether at such Grantor's premises or elsewhere. The
Administrative Agent shall apply the net proceeds of any action taken by it
pursuant to this Section 6.6, after deducting all reasonable costs and expenses
of every kind incurred in connection therewith or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or
the rights of the Administrative Agent and the Lenders hereunder, including,
without limitation, reasonable attorneys' fees and disbursements, to the payment
in whole or in part of the Obligations, in such order as the Administrative
Agent may elect, and only after such application and after the payment by the
Administrative Agent of any other amount required by any provision of law,
including, without limitation, Section 9-615(a)(3) of the New York UCC, need the
Administrative Agent account for the surplus, if any, to any Grantor. To the
extent permitted by applicable law, each Grantor waives all claims, damages and
demands it may acquire against the Administrative Agent or any Lender arising
out of the exercise by them of any rights hereunder. If any notice of a proposed
sale or other disposition of Collateral shall be required by law, such notice
shall be deemed reasonable and proper if given at least 10 days before such sale
or other disposition.

                  6.7 Registration Rights. (a)(1) If the Administrative Agent
shall determine to exercise its right to sell any or all of the Pledged Stock
pursuant to Section 6.6, and if in the opinion of the Administrative Agent it is
necessary or advisable to have the Pledged Stock, or that portion thereof to be
sold, registered under the provisions of the Securities Act, the relevant
Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the
directors and officers of such Issuer to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts as may
be, in the opinion of the Administrative Agent, necessary or advisable to
register the Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its best efforts to cause the
registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering of
the Pledged Stock, or that portion thereof to be sold, and (iii) make all
amendments thereto and/or to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto. Each Grantor agrees to
cause such Issuer to comply with the provisions of the securities or "Blue Sky"
laws of any and all jurisdictions which the Administrative Agent shall designate
and to make available to its security holders, as soon as practicable, an
earnings statement (which need not be audited) which will satisfy the provisions
of Section 11(a) of the Securities Act.

                  (b) Each Grantor recognizes that the Administrative Agent may
be unable to effect a public sale of any or all the Pledged Stock, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may be compelled to resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged
to agree, among other things, to acquire such securities for their own account
for investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges

<PAGE>
                                                                              22

and agrees that any such private sale may result in prices and other terms less
favorable than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner. The Administrative Agent shall be
under no obligation to delay a sale of any of the Pledged Stock for the period
of time necessary to permit the Issuer thereof to register such securities for
public sale under the Securities Act, or under applicable state securities laws,
even if such Issuer would agree to do so.

                  (c) Each Grantor agrees to use its best efforts to do or cause
to be done all such other acts as may be necessary to make such sale or sales of
all or any portion of the Pledged Stock pursuant to this Section 6.7 valid and
binding and in compliance with any and all other applicable Requirements of Law.
Each Grantor further agrees that a breach of any of the covenants contained in
this Section 6.7 will cause irreparable injury to the Administrative Agent and
the Lenders, that the Administrative Agent and the Lenders have no adequate
remedy at law in respect of such breach and, as a consequence, that each and
every covenant contained in this Section 6.7 shall be specifically enforceable
against such Grantor, and such Grantor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants except
for a defense that no Event of Default has occurred under the Credit Agreement.

                  6.8 Deficiency. Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay its Obligations and the reasonable fees and
disbursements of any attorneys employed by the Administrative Agent or any
Lender to collect such deficiency.

                           SECTION 7. THE ADMINISTRATIVE AGENT

                  7.1 Administrative Agent's Appointment as Attorney-in-Fact,
etc. (a) Each Grantor hereby irrevocably constitutes and appoints the
Administrative Agent and any officer or agent thereof, 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 Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, 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 Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Administrative Agent the power and
right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

                  (i) in the name of such Grantor or its own name, or otherwise,
         take possession of and indorse and collect any checks, drafts, notes,
         acceptances or other instruments for the payment of moneys due under
         any Receivable or any material contract of any Grantor or with respect
         to any other Collateral and file any claim or take any other action or
         proceeding in any court of law or equity or otherwise deemed
         appropriate by the Administrative Agent for the purpose of collecting
         any and all such moneys due under any Receivable or any material
         contract of any Grantor or with respect to any other Collateral
         whenever payable;

<PAGE>
                                                                              23

                  (ii) in the case of any Intellectual Property, execute and
         deliver, and have recorded, any and all agreements, instruments,
         documents and papers as the Administrative Agent may request to
         evidence the Administrative Agent's and the Lenders' security interest
         in such Intellectual Property and the goodwill (if applicable) and
         general intangibles of such Grantor relating thereto or represented
         thereby;

                  (iii) pay or discharge taxes and Liens levied or placed on or
         threatened against the Collateral, effect any repairs or any insurance
         called for by the terms of this Agreement and pay all or any part of
         the premiums therefor and the costs thereof;

                  (iv) execute, in connection with any sale provided for in
         Section 6.6 or 6.7, any indorsements, assignments or other instruments
         of conveyance or transfer with respect to the Collateral; and

                  (v) (1) direct any party liable for any payment under any of
         the Collateral to make payment of any and all moneys due or to become
         due thereunder directly to the Administrative Agent or as the
         Administrative Agent shall direct; (2) ask or demand for, collect, and
         receive payment of and receipt for, any and all moneys, claims and
         other amounts due or to become due at any time in respect of or arising
         out of any Collateral; (3)(i) sign and indorse any invoices, freight or
         express bills, bills of lading, storage or warehouse receipts, drafts
         against debtors, assignments, verifications, notices and other
         documents in connection with any of the Collateral; (4) commence and
         prosecute any suits, actions or proceedings at law or in equity in any
         court of competent jurisdiction to collect the Collateral or any
         portion thereof and to enforce any other right in respect of any
         Collateral; (5) defend any suit, action or proceeding brought against
         such Grantor with respect to any Collateral; (6) settle, compromise or
         adjust any such suit, action or proceeding and, in connection
         therewith, give such discharges or releases as the Administrative Agent
         may deem appropriate; (7) assign any Copyright, Patent or Trademark
         (along with the goodwill of the business to which any such Copyright,
         Patent or Trademark pertains), throughout the world for such term or
         terms, on such conditions, and in such manner, as the Administrative
         Agent shall in its sole discretion determine; and (8) generally, sell,
         transfer, pledge and make any agreement with respect to or otherwise
         deal with any of the Collateral as fully and completely as though the
         Administrative Agent were the absolute owner thereof for all purposes,
         and do, at the Administrative Agent's option and such Grantor's
         expense, at any time, or from time to time, all acts and things which
         the Administrative Agent deems necessary to protect, preserve or
         realize upon the Collateral and the Administrative Agent's and the
         Lenders' security interests therein and to effect the intent of this
         Agreement, all as fully and effectively as such Grantor might do.

         Anything in this Section 7.1(a) to the contrary notwithstanding, the
Administrative Agent agrees that it will not exercise any rights under the power
of attorney provided for in this Section 7.1(a) unless an Event of Default shall
have occurred and be continuing.

<PAGE>
                                                                              24

                  (b) If any Grantor fails to perform or comply with any of its
agreements contained herein, the Administrative Agent, at its option, but
without any obligation so to do, may perform or comply, or otherwise cause
performance or compliance, with such agreement.

                  (c) The expenses of the Administrative Agent incurred in
connection with actions undertaken as provided in this Section 7.1, together
with interest thereon at a rate per annum equal to the highest rate per annum at
which interest would then be payable on any category of past due ABR Loans under
the Credit Agreement, from the date of payment by the Administrative Agent to
the date reimbursed by the relevant Grantor, shall be payable by such Grantor to
the Administrative Agent on demand.

                  (d) Each Grantor hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations and
agencies contained in this Agreement are coupled with an interest and are
irrevocable until this Agreement is terminated and the security interests
created hereby are released.

                  7.2 Duty of Administrative Agent. The Administrative Agent's
sole duty with respect to the custody, safekeeping and physical preservation of
the Collateral in its possession, under Section 9-207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account. Neither the
Administrative Agent, any Lender nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Administrative Agent and the Lenders hereunder are solely to
protect the Administrative Agent's and the Lenders' interests in the Collateral
and shall not impose any duty upon the Administrative Agent or any Lender to
exercise any such powers. The Administrative Agent and the Lenders shall be
accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure
to act hereunder, except for their own gross negligence or willful misconduct.

                  7.3 Financing Statements. Pursuant to applicable law, each
Grantor authorizes the Administrative Agent to file or record financing
statements and other filing or recording documents or instruments with respect
to the Collateral without the signature of such Grantor in such form and in such
offices as the Administrative Agent determines appropriate to perfect the
security interests of the Administrative Agent under this Agreement. Each
Grantor authorizes the Administrative Agent to use the collateral description of
"all personal property" in any such financing statements. Each Grantor hereby
ratifies and authorizes the filing by the Administrative Agent of any financing
statement with respect to the Collateral made prior to the Restatement Date. A
photographic or other reproduction of this Agreement shall be sufficient as a
financing statement or other filing or recording document or instrument for
filing or recording in any jurisdiction.

<PAGE>
                                                                              25

                  7.4 Authority of Administrative Agent. Each Grantor
acknowledges that the rights and responsibilities of the Administrative Agent
under this Agreement with respect to any action taken by the Administrative
Agent or the exercise or non-exercise by the Administrative Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as between the Administrative
Agent and the Lenders, be governed by the Credit Agreement and by such other
agreements with respect thereto as may exist from time to time among them, but,
as between the Administrative Agent and the Grantors, the Administrative Agent
shall be conclusively presumed to be acting as agent for the Lenders with full
and valid authority so to act or refrain from acting, and no Grantor shall be
under any obligation, or entitlement, to make any inquiry respecting such
authority.

                           SECTION 8. MISCELLANEOUS

                  8.1 Amendments in Writing. None of the terms or provisions of
this Agreement may be waived, amended, supplemented or otherwise modified except
in accordance with subsection 10.1 of the Credit Agreement.

                  8.2 Notices. All notices, requests and demands to or upon the
Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in subsection 10.2 of the Credit Agreement; provided that any such
notice, request or demand to or upon any Guarantor shall be addressed to such
Guarantor at its notice address set forth on Schedule 1.

                  8.3 No Waiver by Course of Conduct; Cumulative Remedies.
Neither the Administrative Agent nor any Lender shall by any act (except by a
written instrument pursuant to Section 8.1), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. No failure to exercise, nor any
delay in exercising, on the part of the Administrative Agent or any Lender, any
right, power or privilege hereunder shall operate as a waiver thereof. No single
or partial exercise of any right, power or privilege hereunder shall preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. A waiver by the Administrative Agent or any Lender of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Administrative Agent or such Lender would otherwise
have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
other rights or remedies provided by law.

                  8.4 Enforcement Expenses; Indemnification. (a) Each Guarantor
agrees to pay or reimburse each Lender and the Administrative Agent for all its
costs and expenses incurred in collecting against such Guarantor under the
guarantee contained in Section 2 or otherwise enforcing or preserving any rights
under this Agreement and the other Loan Documents to which such Guarantor is a
party, including, without limitation, the reasonable fees and disbursements of
counsel (including the allocated fees and expenses of in-house counsel) to each
Lender and of counsel to the Administrative Agent.

                  (b) Each Guarantor agrees to pay, and to save the
Administrative Agent and the Lenders harmless from, any and all liabilities with
respect to, or resulting from any delay in

<PAGE>
                                                                              26

paying, any and all stamp, excise, sales or other taxes which may be payable or
determined to be payable with respect to any of the Collateral or in connection
with any of the transactions contemplated by this Agreement.

                  (c) Each Guarantor agrees to pay, and to save the
Administrative Agent and the Lenders harmless from, any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the
execution, delivery, enforcement, performance and administration of this
Agreement to the extent the Borrower would be required to do so pursuant to
subsection 10.5 of the Credit Agreement.

                  (d) The agreements in this Section 8.4 shall survive repayment
of the Obligations and all other amounts payable under the Credit Agreement and
the other Loan Documents.

                  8.5 Successors and Assigns. This Agreement shall be binding
upon the successors and assigns of each Grantor and shall inure to the benefit
of the Administrative Agent and the Lenders and their successors and assigns;
provided that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent.

                  8.6 Set-Off. Each Grantor hereby irrevocably authorizes the
Administrative Agent and each Lender at any time and from time to time while an
Event of Default pursuant to subsection 8(a) of the Credit Agreement shall have
occurred and be continuing, without notice to such Grantor or any other Grantor,
any such notice being expressly waived by each Grantor, to set-off and
appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by the
Administrative Agent or such Lender to or for the credit or the account of such
Grantor, or any part thereof in such amounts as the Administrative Agent or such
Lender may elect, against and on account of the obligations and liabilities of
such Grantor to the Administrative Agent or such Lender hereunder and claims of
every nature and description of the Administrative Agent or such Lender against
such Grantor, in any currency, whether arising hereunder, under the Credit
Agreement, any other Loan Document or otherwise, as the Administrative Agent or
such Lender may elect, whether or not the Administrative Agent or any Lender has
made any demand for payment and although such obligations, liabilities and
claims may be contingent or unmatured. The Administrative Agent and each Lender
shall notify such Grantor promptly of any such set-off and the application made
by the Administrative Agent or such Lender of the proceeds thereof, provided
that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of the Administrative Agent and each Lender
under this Section 8.6 are in addition to other rights and remedies (including,
without limitation, other rights of set-off) which the Administrative Agent or
such Lender may have.

                  8.7 Counterparts. This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

<PAGE>
                                                                              27

                  8.8 Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                  8.9 Section Headings. The Section headings used in this
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof.

                  8.10 Integration. This Agreement and the other Loan Documents
represent the agreement of the Grantors, the Administrative Agent and the
Lenders with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Lender relative to subject matter hereof and thereof not expressly
set forth or referred to herein or in the other Loan Documents.

                  8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                  8.12 Submission To Jurisdiction; Waivers. Each Grantor hereby
irrevocably and unconditionally:

                  (a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State of
New York, the courts of the United States of America for the Southern District
of New York, and appellate courts from any thereof;

                  (b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

                  (c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such
Grantor at its address referred to in Section 8.2 or at such other address of
which the Administrative Agent shall have been notified pursuant thereto;

                  (d) agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

                  (e) waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding referred
to in this Section any special, exemplary, punitive or consequential damages.

<PAGE>
                                                                              28

                  8.13 Acknowledgements. Each Grantor hereby acknowledges that:

                  (a) it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents to which
it is a party;

                  (b) neither the Administrative Agent nor any Lender has any
fiduciary relationship with or duty to any Grantor arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Grantors, on the one hand, and the Administrative Agent
and Lenders, on the other hand, in connection herewith or therewith is solely
that of debtor and creditor; and

                  (c) no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Lenders or among the Grantors and the Lenders.

                  8.14 Additional Grantors. Each Subsidiary of the Borrower that
is required to become a party to this Agreement pursuant to subsection 6.10 of
the Credit Agreement shall become a Grantor for all purposes of this Agreement
upon execution and delivery by such Subsidiary of an Assumption Agreement in the
form of Annex 1 hereto.

                  8.15 Releases. (a) At such time as the Loans, the
Reimbursement Obligations and the other Obligations shall have been paid in
full, the Commitments have been terminated and no Letters of Credit shall be
outstanding, the Collateral shall be released from the Liens created hereby, and
this Agreement and all obligations (other than those expressly stated to survive
such termination) of the Administrative Agent and each Grantor hereunder shall
terminate, all without delivery of any instrument or performance of any act by
any party, and all rights to the Collateral shall revert to the Grantors. At the
request and sole expense of any Grantor following any such termination, the
Administrative Agent shall deliver to such Grantor any Collateral held by the
Administrative Agent hereunder, and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such termination.

                  (b) If any of the Collateral shall be sold, transferred or
otherwise disposed of by any Grantor in a transaction permitted by the Credit
Agreement, then the Administrative Agent, at the request and sole expense of
such Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens created
hereby on such Collateral. At the request and sole expense of the Borrower, a
Subsidiary Guarantor shall be released from its obligations hereunder in the
event that all the Capital Stock of such Subsidiary Guarantor shall be sold,
transferred or otherwise disposed of in a transaction permitted by the Credit
Agreement; provided that the Borrower shall have delivered to the Administrative
Agent, at least ten Business Days prior to the date of the proposed release, a
written request for release identifying the relevant Subsidiary Guarantor and
the terms of the sale or other disposition in reasonable detail, including the
price thereof and any expenses in connection therewith, together with a
certification by the Borrower stating that such transaction is in compliance
with the Credit Agreement and the other Loan Documents.

<PAGE>
                                                                              29

                  8.16 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

                  8.17 Amendment and Restatement. (a) This Agreement amends and
restates the Original Guarantee and Collateral Agreement. All terms, conditions,
agreements, covenants and representations and warranties contained in the
Original Guarantee and Collateral Agreement remain in full force and effect,
except as expressly amended herein. Nothing herein or in the other Loan
Documents shall impair or adversely affect the continuation of the liability of
the Borrower for the Borrower Obligations or of any other Grantor for the
Guarantor Obligations incurred before the Restatement Date and the security
interests, Liens and other interests in the Collateral granted, pledged and or
assigned by the Grantors to the Administrative Agent pursuant to the Original
Guarantee and Collateral Agreement.

                  (b) The amendment and restatement herein shall not, in any
manner, be construed to constitute payment of, or impair, limit, cancel or
extinguish, or constitute a novation in respect of any of the obligations,
liabilities and indebtedness of the Grantors evidenced by or arising under the
Original Guarantee and Collateral Agreement and the other Loan Documents, and
the Lien and security interests securing such obligations, liabilities and
indebtedness, which shall continue in full force and effect and shall not in any
manner be impaired, limited, terminated, waived or released.

                  (c) Notwithstanding anything to the contrary herein or in any
other Loan Document, any term, condition, agreement, covenant or representation
or warranty amended by this Agreement shall be deemed to have been so amended
for all periods prior to the Restatement Date (regardless of whether such
amendment by its terms purports to apply as of a certain date), and during all
such periods no Grantor shall have been required, or be liable for any failure,
to comply with any such provision except as amended by this Agreement.

<PAGE>

                  IN WITNESS WHEREOF, each of the undersigned has caused this
Guarantee and Collateral Agreement to be duly executed and delivered, and
amended and restated as set forth herein.

                                     TENNECO AUTOMOTIVE INC.

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

<PAGE>

                                     TENNECO AUTOMOTIVE OPERATING COMPANY INC.

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

<PAGE>

                                     TENNECO INTERNATIONAL HOLDING CORP.

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

<PAGE>

                                     TENNECO GLOBAL HOLDINGS INC.

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

<PAGE>

                                     THE PULLMAN COMPANY

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

<PAGE>

                                     TMC TEXAS INC.

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

<PAGE>

                                     CLEVITE INDUSTRIES INC.

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

<PAGE>

                                     Acknowledged and Agreed as of the
                                     date hereof:

                                     JPMORGAN CHASE BANK,
                                     as Administrative Agent

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

                                     CORPORATE ACKNOWLEDGEMENT

                                     State of New York          )
                                                                )
                                                                ) ss.:
                                                                )
                                     County of New York         )

                                     On the _______ day of June in the year
                                     2003 before me personally came
                                     ______________________________ to me
                                     known, who, being by me duly sworn, did
                                     depose and say that he resides in 270 Park
                                     Avenue, New York, New York 10017; that he
                                     is the Vice President of JPMorgan Chase
                                     Bank, the corporation described in and
                                     which executed the above instrument; and
                                     that he signed his name thereto by
                                     authority of the board of directors of
                                     said corporation.

                                     _________________________________________
                                     Notary Public

<PAGE>

                                                                      Annex 1 to
                                              Guarantee and Collateral Agreement

                  ASSUMPTION AGREEMENT, dated as of ____________ __, 200_, made
by ______________________________, a ______________ corporation (the "Additional
Grantor"), in favor of JPMORGAN CHASE BANK, as administrative agent (in such
capacity, the "Administrative Agent") for the banks and other financial
institutions (the "Lenders") parties to the Credit Agreement referred to below.
All capitalized terms not defined herein shall have the meaning ascribed to them
in such Credit Agreement.

                              W I T N E S S E T H :
                              ---------------------

                  WHEREAS, Tenneco Automotive Inc. (the "Borrower"), the
Lenders, Commerzbank and Bank of America, as Co-Documentation Agents, Citibank,
as Syndication Agent, and the Administrative Agent have entered into the Credit
Agreement, dated as of September 30, 1999 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement");

                  WHEREAS, in connection with the Credit Agreement, the Borrower
and certain of its Affiliates (other than the Additional Grantor) have entered
into the Guarantee and Collateral Agreement, dated as of November 4, 1999 (as
amended, supplemented or otherwise modified from time to time, the "Guarantee
and Collateral Agreement") in favor of the Administrative Agent for the benefit
of the Lenders;

                  WHEREAS, the Credit Agreement requires the Additional Grantor
to become a party to the Guarantee and Collateral Agreement; and

                  WHEREAS, the Additional Grantor has agreed to execute and
deliver this Assumption Agreement in order to become a party to the Guarantee
and Collateral Agreement;

                  NOW, THEREFORE, IT IS AGREED:

                  1. Guarantee and Collateral Agreement. By executing and
delivering this Assumption Agreement, the Additional Grantor, as provided in
Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party
to the Guarantee and Collateral Agreement as a Grantor thereunder with the same
force and effect as if originally named therein as a Grantor and, without
limiting the generality of the foregoing, hereby expressly assumes all
obligations and liabilities of a Grantor thereunder. The information set forth
in Annex 1-A hereto is hereby added to the information set forth in the
Schedules to the Guarantee and Collateral Agreement. The Additional Grantor
hereby represents and warrants that each of the representations and warranties
contained in Section 4 of the Guarantee and Collateral Agreement is true and
correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date.

<PAGE>

                  2. Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.

                  IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

                                     [ADDITIONAL GRANTOR]

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

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