Document:

<PAGE>
                                                                  EXECUTION COPY

                                                                     EXHIBIT 4.1

                     THIRD AMENDMENT TO THE CREDIT AGREEMENT

          THIRD AMENDMENT, dated as of March 13, 2002 (this "Third 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 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 "Applicable Margin" in its entirety
     and substituting, in lieu thereof, the following:

               "Applicable Margin": with respect to Revolving Loans, Swingline
          Loans and Tranche A Term Loans, the rate per annum determined pursuant
          to the Pricing Grid; and with respect to the Tranche B Term Loans and
          Tranche C Term Loans, the rate per annum set forth under the relevant
          column heading below:

                                             ABR Loans      Eurodollar Loans
                                             ---------      ----------------

               Tranche B Term Loans             3.00%             4.00%
               Tranche C Term Loans             3.25              4.25

<PAGE>
                                                                               2

          (ii) by adding the following three sentences at the end of the
     definition of "Consolidated EBITDA":

          In addition, Consolidated EBITDA for each fiscal quarter of the
          Borrower, commencing with the first quarter of the Borrower's 2002
          fiscal year and ending with the last quarter of the Borrower's 2004
          fiscal year, shall be increased by the amount of cash restructuring
          charges and related expenses associated with restructurings undertaken
          by the Borrower and/or its Subsidiaries in the United States and/or
          internationally included in the calculation of Consolidated Net Income
          for such fiscal quarter, provided that the aggregate amount of such
          cash restructuring charges in such twelve fiscal quarter period shall
          not exceed $60,000,000. For purposes of the foregoing sentence, "cash"
          restructuring charges and related expenses shall be deemed to include
          any accrual of or reserve for cash restructuring charges and related
          expenses for any future period. In addition, for purposes of Section
          7.1 of this Agreement, Consolidated EBITDA for each fiscal quarter of
          the Borrower's 2002 fiscal year shall be increased (but not by more
          than $11,000,000 in the aggregate for all of the Borrower's 2002
          fiscal year) by the amount of aftermarket acquisition costs of the
          Borrower and its Subsidiaries to the extent such costs otherwise
          reduce Consolidated EBITDA for such fiscal quarter. In addition, in
          the event that any Permitted Sale/Leaseback results in the Borrower or
          a Subsidiary entering into an operating lease, then Consolidated
          EBITDA for any period shall be deemed to be increased by the amount of
          lease payments under such operating lease made during such period.

          (iii) by adding at the end of the definition of "Consolidated Interest
     Expense" the following:

          Notwithstanding the foregoing, in the event that Borrower or a
          Subsidiary has entered into an operating lease in connection with a
          Permitted Sale/Leaseback, then Consolidated Interest Expense for any
          period shall be deemed to be increased by the interest component of
          lease payments under such operating lease made during such period (as
          determined based on the applicable schedule setting forth the
          components of lease payments delivered pursuant to Section 7.11).

          (iv) by adding at the end of the definition of "Consolidated Leverage
     Ratio" the following:

          Notwithstanding the foregoing, in the event that the Borrower or a
          Subsidiary has entered into an operating lease in connection with a
          Permitted Sale/Leaseback then for purposes of calculating the
          Consolidated Leverage Ratio on any day, Consolidated Total Debt shall
          be deemed to be increased by the remaining unamortized principal
          component of such operating lease (as determined based on the
          applicable schedule setting forth the components of lease payments
          delivered pursuant to Section 7.11).

          (v) by adding at the end of clause (e) of the definition of
     "Indebtedness" the following:

<PAGE>
                                                                               3

          provided that Capital Lease Obligations of such Person arising from
          Permitted Sale/Leasebacks shall be Indebtedness for purposes of
          Section 7.1 and related defined terms used therein,

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

               "Permitted Sale/Leasebacks": as defined in Section 7.11.

               "Third Amendment Effective Date": the Effective Date, as defined
          in the Third Amendment dated as of March 13, 2002 to this Agreement.

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

          Notwithstanding the foregoing, the Net Cash Proceeds from
          sale/leaseback transactions permitted by Section 7.11 shall be applied
          to repayment of the Term Loans within five Business Days of the
          receipt by the Borrower or a Subsidiary of such Net Cash Proceeds.

     (c) Section 2.17(b) of the Credit Agreement is amended by adding the
following at the end of the second sentence thereof:

          and provided, further, that prepayments of the Tranche A Term Loans,
          Tranche B Term Loans and Tranche C Term Loans from the Net Cash
          Proceeds of sale/leaseback transactions permitted by Section 7.11
          shall be applied to reduce the then remaining installments set forth
          in Section 2.3 in the direct order of maturity of such installments.

     (d) Section 7.1 of the Credit Agreement is amended by deleting paragraphs
(a), (b) and (c) in their entirety and substituting, in lieu thereof, the
following:

               (a) Consolidated Leverage Ratio. Permit the Consolidated Leverage
          Ratio as at the last day of any period of four consecutive fiscal
          quarters of the Borrower ending with any fiscal quarter during any
          period set forth below to exceed the ratio set forth below opposite
          such period:

                                                          Consolidated
                     Period                              Leverage Ratio
                     ------                              --------------

               Fourth Quarter 2001                            5.50
               First Quarter 2002                             5.75
               Second Quarter 2002                            5.75
               Third Quarter 2002                             5.75
               Fourth Quarter 2002                            5.75
               First Quarter 2003                             5.75
               Second Quarter 2003                            5.50
               Third Quarter 2003                             5.25

<PAGE>
                                                                               4

               Fourth Quarter 2003                            5.00
               First Quarter 2004                             4.75
               Second Quarter 2004                            4.50
               Third Quarter 2004                             4.25
               Fourth Quarter 2004                            4.00
               Fiscal Year 2005                               3.50
               Fiscal Year 2006                               3.50
               Fiscal Year 2007                               3.50
               Fiscal Year 2008                               3.50

               (b) Consolidated Interest Coverage Ratio. Permit the Consolidated
          Interest Coverage Ratio for any period of four consecutive fiscal
          quarters of the Borrower ending with any fiscal quarter during any
          period set forth below to be less than the ratio set forth below
          opposite such period:

                                                     Consolidated Interest
                      Period                            Coverage Ratio
                      ------                         ---------------------

               Fourth Quarter 2001                           1.55
               First Quarter 2002                            1.60
               Third Quarter 2002                            1.65
               Third Quarter 2002                            1.65
               Fourth Quarter 2002                           1.65
               First Quarter 2003                            1.65
               Second Quarter 2003                           1.75
               Third Quarter 2003                            1.80
               Fourth Quarter 2003                           1.95
               First Quarter 2004                            2.10
               Second Quarter 2004                           2.20
               Third Quarter 2004                            2.25
               Fourth Quarter 2004                           2.35
               Fiscal Year 2005                              3.00
               Fiscal Year 2006                              3.00
               Fiscal Year 2007                              3.00
               Fiscal Year 2008                              3.00

               (c) Consolidated Fixed Charge Coverage Ratio. Permit the
          Consolidated Fixed Charge Coverage Ratio for any period of four
          consecutive fiscal quarters of the Borrower ending with any fiscal
          quarter during any period set forth below to be less than the ratio
          set forth below opposite such period:

                                                     Consolidated Fixed
                     Period                         Charge Coverage Ratio
                     ------                         ---------------------

               Fourth Quarter 2001                           0.80
               First Quarter 2002                            0.75

<PAGE>
                                                                               5

               Second Quarter 2002                           0.70
               Third Quarter 2002                            0.70
               Fourth Quarter 2002                           0.75
               First Quarter 2003                            0.80
               Second Quarter 2003                           0.90
               Third Quarter 2003                            0.95
               Fourth Quarter 2003                           1.00
               First Quarter 2004                            1.15
               Second Quarter 2004                           1.25
               Third Quarter 2004                            1.35
               Fourth Quarter 2004                           1.45
               Fiscal Year 2005                              1.75
               Fiscal Year 2006                              1.75
               Fiscal Year 2007                              1.75
               Fiscal Year 2008                              1.75

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

               (k) Capital Lease Obligations arising from Permitted
          Sale/Leasebacks.

          (f) Section 7.5 of the Credit Agreement is amended by (i) deleting the
     word "and" from the end of clause (h), (ii) deleting the period at the end
     of clause (i) and substituting therefor a semi-colon and (iii) adding the
     following new clauses (j) and (k) at the end thereof:

                    (j) Tenneco International Holding Corp. may transfer
               ownership of the Capital Stock of Monroe Australia Limited to
               Tenneco Canada Inc. in exchange for a promissory note of Tenneco
               Canada Inc. having a principal amount equal to the fair market
               value of Monroe Australia Limited (and such promissory note shall
               be pledged to the Administrative Agent as Collateral pursuant to
               the Loan Documents); and

                    (k) the Borrower and its Subsidiaries may sell property
               pursuant to Permitted Sale/Leasebacks.

The Lenders hereby release the Lien on and security interest in the Capital
Stock of Monroe Australia Limited created by the Loan Documents, and authorize
the Administrative Agent to take any action reasonably requested by the Borrower
to effect such release.

          (g) Section 7.9 of the Credit Agreement is amended by adding at the
     end thereof the following:

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

<PAGE>
                                                                               6

          (h) Section 7.7 of the Credit Agreement is amended by deleting such
     Section and substituting therefor the following:

               7.7 Capital Expenditures. Make or commit to make any Capital
          Expenditure, except Capital Expenditures of the Borrower and its
          Subsidiaries in the ordinary course of business, together with any
          Investments in Joint Ventures in excess of $25,000,000 under
          subsection 7.8(h), not exceeding the following amounts in each fiscal
          year

                    Fiscal Year                                  Amount
                    -----------                                  ------

                        2001                                  $150,000,000
                        2002                                   150,000,000
                        2003                                   150,000,000
                        2004                                   150,000,000
                        2005                                   275,000,000
                        2006                                   275,000,000
                        2007                                   275,000,000
                        2008                                   275,000,000

          ;provided, that (a) up to 50% of any such amount not so expended in
          the period for which it is permitted may be carried over for
          expenditure in the next succeeding fiscal year only and (b) Capital
          Expenditures during any fiscal year (beginning with fiscal year 2002)
          shall be deemed made, first, in respect of amounts permitted for such
          fiscal year as provided above and, second, in respect of amounts
          carried over from the prior fiscal year pursuant to clause (a) above.

          (i) Section 7.11 of the Credit Agreement is amended by adding the
     following at the end thereof:

               except for such transactions entered into after the Third
               Amendment Effective Date as long as (i) the aggregate fair market
               value of the property sold in connection therewith does not
               exceed $200,000,000, the consideration for each such sale shall
               be cash and such transactions are consummated on an arm's length
               basis and (ii) the Net Cash Proceeds thereof are applied to
               prepay the Term Loans as set forth in Sections 2.11(b) and
               2.17(b) (the "Permitted Sale/Leasebacks") (the Borrower agreeing
               that all Permitted Sale/Leasebacks shall be Asset Sales and the
               Lenders hereby authorizing the Administrative Agent to release
               any Lien on or security interests in any such property created by
               the Loan Documents upon consummation of such Permitted
               Sale/Leasebacks). Notwithstanding anything to the contrary
               contained herein, any Permitted Sale/Leasebacks shall be deemed
               to be expressly permitted pursuant to each other provision of
               this Section 7 (other than Sections 7.1 and 7.10) that would
               otherwise be construed to prohibit or restrict such Permitted
               Sale/Leasebacks. In the event that the Borrower or a Subsidiary
               enters into an operating lease in connection with a Permitted
               Sale/Leaseback, then the Borrower shall deliver to the
               Administrative Agent at the time it or a Subsidiary enters into
               such lease, a schedule setting forth the

<PAGE>
                                                                               7

               principal and interest components of payments to be made under
               such lease as reasonably determined by the Borrower.

          (j) The Credit Agreement is amended by deleting the Pricing Grid
     attached thereto as Annex A and substituting therefor the Pricing Grid
     attached to this Third Amendment as Annex A.

               3. Reduction in Total Revolving Commitments. On the Effective
Date (as defined below) the aggregate Revolving Commitments will automatically
be reduced to $450,000,000 on the terms set forth in Sections 2.9(b) and 2.17(a)
of the Credit Agreement.

               4. Representations and Warranties. The Borrower hereby confirms,
reaffirms and restates the representations and warranties set forth in Section 4
of the Credit Agreement, as amended by this Third Amendment. The Borrower
represents and warrants that, after giving effect to this Third Amendment, no
Default or Event of Default has occurred and is continuing.

               5. Effectiveness. This Third Amendment shall become effective as
of the date of receipt by the Administrative Agent of (a) counterparts of this
Third 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").

               6. Continuing Effect of the Credit Agreement. This Third
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.

               7. Counterparts. This Third 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 THIRD AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

<PAGE>

                                                                         Annex A

               PRICING GRID FOR REVOLVING LOANS, SWINGLINE LOANS,
                    TRANCHE A TERM LOANS AND COMMITMENT FEES

<TABLE>
<CAPTION>
                                                      Applicable        Applicable
          Consolidated Leverage Ratio                   Margin          Margin for      Commitment
                                                    for Eurodollar      ABR Loans        Fee Rate
                                                         Loans
<S>                                                  <C>                <C>              <C>
Greater than or equal to 4.5 to 1.0                      3.50%            2.50%           .500%

Less than 4.5 to 1.0 and greater than
         or equal to 4.0 to 1.0                          3.25%            2.25%           .500%

Less than 4.0 to 1.0 and greater than
         or equal to 3.5 to 1.0                          3.00%            2.00%           .500%

Less than 3.5 to 1.0 and greater than
         or equal to 3.0 to 1.0                          2.75%            1.75%           .375%

Less than 3.0 to 1.0 and greater than
          or equal to 2.5 to 1.0                         2.50%            1.50%           .375%

          Less than 2.5 to 1.0                           2.25%            1.25%           .375%
</TABLE>

Changes in the Applicable Margin with respect to Revolving Loans, Swingline
Loans and Tranche A Loans or in the Commitment Fee Rate resulting from changes
in the Consolidated Leverage Ratio shall become effective on the date (the
"Adjustment Date") on which financial statements are delivered to the Lenders
pursuant to Section 6.1(a) or (b) (but in any event not later than the 45th day
after the end of each of the first three quarterly periods of each fiscal year
or the 90th day after the end of each fiscal year, as the case may be) and shall
remain in effect until the next change to be effected pursuant to this
paragraph. If any financial statements referred to above are not delivered
within the time periods specified above, then, until such financial statements
are delivered, the Consolidated Leverage Ratio as at the end of the fiscal
period that would have been covered thereby shall for the purposes of this
definition be deemed to be greater than 4.5 to 1.0. In addition, at all times
while an Event of Default shall have occurred and be continuing, the
Consolidated Leverage Ratio shall for the purposes of this definition be deemed
to be greater than 4.5 to 1.0. Each determination of the Consolidated Leverage
Ratio pursuant to this pricing grid shall be made with respect to (or, in the
case of Consolidated Total Debt, as at the end of) the period of four
consecutive fiscal quarters of the Borrower ending at the end of the period
covered by the relevant financial statements.

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Third
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>

                                      THIRD AMENDMENT dated as of March 13, 2002
                                      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
Third 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 Third
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>
                                                                   EXHIBIT 10.28

                        [TENNECO AUTOMOTIVE LETTERHEAD]

                               As of June 1, 2001

PERSONAL AND CONFIDENTIAL

Mr. Hari Nair
871 Fox Trail Court
Lake Forest, IL 60045

Dear Mr. Nair:

          On behalf of Tenneco Automotive Inc. (the "Company"), I am pleased to
set forth and confirm the terms and conditions of your continued service as
Executive Vice President and Managing Director-Europe of the Company:

1.        COMMENCEMENT.  Except as specifically provided herein, the terms and
     conditions hereof will be effective immediately upon the signing hereof.
     You will report to and serve at the pleasure of the Board of Directors of
     the Company (the "Board").

2.        BASE SALARY.   You will be paid a base salary of $305,000.00 per
     year, which will be subject to such increases as may from time to time be
     approved by the Board or such committee of the Board to which such power
     has been delegated (the "Committee"), payable according to the regular pay
     schedule for salaried employees.

3.        ANNUAL BONUS.  You will be eligible for an annual performance bonus.
     Commencing with calendar year 2001, your annual target bonus will be, at
     least, $273,000.00 subject to fulfillment of performance goals as
     determined by the Board or Committee.

4.        INTERNATIONAL ASSIGNMENT.  Your position as Executive Vice President
     and Managing Director-Europe of the Company is an international assignment.
     The terms and conditions applicable to your international assignment
     (including without limitation the termination of such international
     assignment) are set forth as Exhibit A hereto, and you hereby acknowledge
     and agree to such terms and conditions.
<PAGE>
5.       PERFORMANCE UNITS, STOCK OPTIONS, RESTRICTED STOCK AND STOCK EQUIVALENT
     UNITS. At the time of the spin-off of Pactiv Corporation (formerly Tenneco
     Packaging Inc.) by the Company (the "Spin-Off"), you were granted 7,500
     performance units under the Company's Stock Ownership Plan (the "Plan"),
     payable in shares of the Company's stock in January 2003, subject to
     fulfillment of performance goals as determined by the Committee and the
     other terms of the grant determined by the Committee. At the time of the
     Spin-off, you were granted under the Plan an option to purchase 45,000
     shares of Company stock, subject to terms and conditions set by the
     Committee under the Plan. You have received a restricted stock grant of
     19,538 shares and one-third of such restricted stock vests on each of the
     first three anniversaries of the Spin-off if you continue to be employed by
     the Company on such anniversary. The number of shares set forth above with
     respect to the performance unit, restricted stock and stock option awards
     is after giving effect to the one-for-five reverse stock split completed in
     November 1999. In December, 1999 (effective November 5, 1999), you were
     granted 34,806 stock equivalent units under the Plan for the three-year
     period ending December 31, 2002. This grant is payable in cash in three
     annual installments, subject to and in accordance with the terms and
     conditions of the grant determined by the Committee. The grants described
     herein are without prejudice to your receipt of additional grants as
     determined by the Board or the Committee under the Plan and/or any other
     similar benefit plan or compensation program or arrangement of the Company.
     The vesting terms and the other conditions, events and circumstances under
     which you will be entitled to receive the performance units, stock options,
     restricted stock and stock equivalent units granted to you prior to the
     date hereof (and not already paid or settled) shall be the terms,
     conditions, events and circumstances set forth in your grant agreements for
     the performance units, stock options, restricted stock and stock equivalent
     units as of the date of this letter.

6.       EXECUTIVE BENEFIT PLANS. You will be eligible to participate in all
     employee benefit plans applicable to salaried employees generally and all
     executive compensation structures applicable to senior executives
     generally, including the Company's Supplemental Executive Retirement Plan
     (the "SERP"). The company shall not terminate, amend or modify the SERP
     after the date hereof in any manner which is adverse to you.

7.       PERQUISITE ALLOWANCE. You will receive an annual perquisites
     allowance of $30,000.00 ($15,000 per year during your international
     assignment) which you may receive in either cash, perquisites, or a
     combination at your election.

8.       VACATION. Except as otherwise provided in Exhibit A with respect
     to your international assignment, you will receive four weeks vacation
     (with pay) per year.

<PAGE>
9.        CHANGE IN CONTROL. You will participate in the Company's Change in
     Control Severance Benefit Plan for Key Executives (the "Change in Control
     Plan"); provided, that your cash severance benefit under Section 3A or 3B,
     as applicable, of the Change in Control Plan will be 3 times the total of
     (i) your annual base salary in effect immediately prior to the Change in
     Control (as defined in the Change in Control Plan), plus (ii) the higher of
     (a) your highest target bonus over the last 3 years of your employment, and
     (b) the average of your annual awards under any bonus plan of the Company
     or its subsidiaries, including any special awards, for the last three years
     of your employment (or such shorter period as your have been employed by
     the Company or its subsidiaries); and provided further that all of your
     outstanding awards under the Plan or any other similar benefit plan or
     compensation arrangement or program of the Company or its subsidiaries will
     be treated as exercisable, earned at target and vested, as the case may be,
     immediately upon the Change in Control (as that term is currently defined
     in the Change in Control Plan) and shall be paid to you or otherwise
     treated in the manner currently specified in, and in accordance with the
     current terms of, the Change in Control Plan.

10.       SEVERANCE. Subject to the provisions of paragraph 9, if your
     employment is terminated other than by you voluntarily or for death,
     disability, or non-performance of your duties, subject to your execution of
     a general release and such other documents as the Company may reasonably
     request: (a) you will be paid a severance benefit in an amount equal to two
     times the total of your then current annual base salary plus your bonus for
     the immediately preceding year; (b) subject to Board and/or Committee
     approval, all your outstanding awards under the Plan (or any other similar
     benefit plan or compensation program or arrangement of the Company or its
     subsidiaries) may vest and/or become exercisable on the date of your
     termination; (c) vested stock options you hold will remain exercisable for
     a period of not less than 90 days from your termination; and (d) the
     Company will continue to provide to you, for one year following the date of
     the termination of your employment, health and welfare benefits amounting
     to no less than the amount of health and welfare benefits you receive at
     the time your employment commences. COBRA continuation coverage will begin
     following this one year period.

11.       TAX GROSS-UP PAYMENT. If any portion of the payments described
     herein, and/or any other payments, shall be subject to the tax imposed by
     Section 4999 of the Internal Revenue Code (the portion of such payments
     which are subject to the Excise Tax being referred to herein as the
     "Payments"), the Company shall pay you, not later than the 30th day
     following the date you become subject to the Excise Tax, an additional
     amount (the "Gross-Up Payment") such that the net amount retained by you
     after deduction of the Excise Tax on such Payments and all federal, state,
     and local income tax, interest and penalties, and Excise Tax on the
     Gross-Up Payment, shall be equal to the amount which would have been
     retained by you had the payments not been subject to the Excise Tax.
<PAGE>
12.       GOVERNING LAW.  This letter agreement shall be governed by, and
     shall be construed in accordance with, the internal laws (and not the laws
     of conflicts) of the State of Illinois.

13.       OTHER AGREEMENTS.   This letter agreement shall supersede the letter
     agreements between you and the Company dated as of July 27, 2000, May 15,
     2001 and August 28, 2001.

          Please acknowledge your agreement with these terms by executing a
copy of this letter in the space provided below and returning it to me.

                                   Sincerely,

                                   TENNECO AUTOMOTIVE INC.

                                   By: /s/ Mark P. Frissora
                                       ------------------------------------
                                       Mark P. Frissora

                                   Its: Chairman, CEO and President

ACKNOWLEDGED AND ACCEPTED

-------------------------------
Hari Nair

Date:
     --------------------------
<PAGE>
                                   EXHIBIT A

                 INTERNATIONAL ASSIGNMENT TERMS AND CONDITIONS

The terms and conditions of your international assignment for Tenneco
Automotive Inc. ("Tenneco" or the "Company") are set forth in this Exhibit A
and in the Tenneco International Assignment Guidelines.

The terms and conditions set forth in this Exhibit A may be changed from time
to time as legal requirements may dictate, new practices may require, or for
other reasons at the discretion of the Company; it being understood, however,
that the foregoing shall not give the Company the right to modify any of the
terms and conditions of your employment set forth in paragraphs 1 through 3 and
paragraphs 5 through 13 of the letter agreement dated as of June 1, 2001
between you and the Company. If questions should arise concerning any provision
of this Exhibit A or any subsequent revisions of policies applicable to
employees on international assignment, you are urged to consult with Casey
Clemence of the Expatriate Administrative Services Team at
PricewaterhouseCoopers in Florham Park, NJ at (973) 236-4499.

GENERAL

Place of Employment: Brussels, Belgium
Position Title: EVP & Managing Director-Europe
Base Salary: $305,000/annual
EICP Target Bonus: $273,000
Long Term Awards: Eligible for awards based upon EICP level 8 pro-rated to the
effective date of assignment
Reporting to: Mark Frisorra
Assignment Effective Date: June 1, 2001
Anticipated Duration of Assignment: 2-3 years
Point of Origin: Chicago, Illinois
<PAGE>
COMPENSATION AND FOREIGN ASSIGNMENT-RELATED BENEFITS

At the commencement of your international assignment, your compensation will be
as estimated in the attached International Assignment Compensation Summary.
This compensation reflects your position level within the Tenneco structure and
is exclusive of mandatory or voluntary deductions. Salary administration will
continue to be handled in accordance with Tenneco practices, and adjustments
made according to salary guidelines established within Tenneco.

Your compensation will be administered through the Tenneco U.S. payroll, with
appropriate deposits to your bank accounts. Your Domestic and Foreign Pay and
Overseas Allowances have been established and included in the attached
International Assignment Compensation Summary. Overseas allowances will
terminate upon return to the U.S.

Some of the specific provisions that will apply to your international
assignment are described below:

1.   Your eligibility will continue for participation in the various Tenneco
     benefit plans and will be determined in accordance with the provisions of
     such plans. To the extent such plans will permit, your base salary
     (exclusive of allowances) shall be the basis for the calculation of
     coverage and retirement benefits. Assignment-related allowances will not be
     included in the calculation of coverage and retirement benefits.

2.   On your relocation trip to Belgium, the Company has paid or will pay the
     cost of travel from Illinois to Belgium, including airfare, ground
     transportation, and reasonable in-transit living expenses.

3.   The Company has paid or will pay moving expenses for household goods and
     effects, including packing, crating, unpacking, wardrobe service, temporary
     storage enroute, appliance disconnection service, insurance, customs
     clearance, and import duties on one surface freight shipment. In addition,
     the Company will pay for similar expenses upon return, and for storage of
     items not shipped to the assignment location. Details are contained in the
     Tenneco International Assignment Guidelines.

4.   The Company has paid or will pay for an air freight shipment, including
     packing, insurance, and customs clearance, for personal effects. A similar
     policy will be available upon your return home.

5.   Items not shipped to the host location may be placed into storage at
     Company expense. In accordance with the policy, the Company will designate
     the U.S. storage facility. Tenneco will be billed directly.

<PAGE>
6.   Visas, immunizations, and any other reasonable and necessary medical or
     documentary costs related to your international assignment will be
     reimbursed to you upon submission of an expense report.

7.   Actual and reasonable living expenses, subject to Company approval, have
     been or will be reimbursed for up to 7 days in the home country and 30 days
     in the host country (can extend an additional 30 days if needed) for
     expenses incurred after vacating your residence in Illinois, and prior to
     establishing residence in accommodations in Belgium. In accordance with the
     Tenneco International Assignment Policy, upon repatriation the same
     guidelines will apply.

8.   Miscellaneous relocation expenses for your move to Belgium have been or
     will be covered by an allowance of one and one-half month's salary, up to a
     maximum base salary of $150,000, at the start of the assignment. You will
     be responsible for any home country hypothetical tax on this allowance.

9.   You have been or will be provided an International Service Premium equal to
     one month's base salary, capped at a base salary of $150,000, in
     recognition of the personal adjustments inherent with an international
     assignment. The Company has reimbursed or will reimburse all home and host
     country tax on this award. Upon successful completion of the assignment you
     will receive the same award.

10.  Home leave is time off with pay plus round trip business class airfare.
     You, your spouse and family are entitled to two home leave trips per year.

11.  Vacation eligibility is based on the greater of your home country vacation
     policy or 30 days. Time off during home leave will be charged as vacation
     time.

12.  The Company will pay your housing expenses directly for the duration of
     your assignment in Brussels, including utility expenses (gas, electricity,
     water, cable TV, and lawn care). The Company will pay security and lease
     deposits required by the lease agreement.

13.  The Tenneco International Assignment Guidelines will be used as the
     guideline for other matters such as allowances, goods and services
     differential, etc. not specified in this Exhibit A.

14.  The Company will reimburse you for lease cancellation penalties for up to
     two vehicles.

15.  You are eligible to participate in the Company's current domestic
     relocation policies with regard to the sale of your home and purchase of
     your home by the Company. Should this or any future international
     assignments trigger capital gains tax payments on the sale of your
     principle residence, the Company will reimburse you for such taxes.

<PAGE>
16.  The Company will reimburse the costs for elementary or secondary schools
     within normal commuting distance of your international assignment. The
     reimbursement will cover required tuition, lab fees, textbooks, uniforms,
     other school supplies, school field trips and public transportation up to
     maximum allowance recommended for the location.

17.  Emergency Leave - Reimbursement for your round trip airfare from the host
     location for you, your spouse and eligible dependants living with you in
     the event of death or serious illness involving any of your immediate
     family members. Such leave shall not count against your vacation time.

18.  As an incentive to retain your U.S. home, Tenneco will pay you an amount
     in cash of $16,666.00, net of applicable taxes, at the end of each 12 month
     period that you are on assignment (not to exceed $50,000.00 in total).

19.  The Company will also reimburse you the acquisition or lease and operating
     costs for a second automobile that are in the excess of those previously
     incurred ($500 per month) in the U.S.

TAX EQUALIZATION

We would also like to call your attention to Tenneco's Tax Equalization
Guidelines. During expatriation, in order to equalize your tax bill with that
of your domestic counterpart at the same level of income, a U.S. hypothetical
federal income tax will be deducted from your total salary and, in turn, the
Company will fund payment of your Belgian taxes. Even if there is no foreign
tax obligation, Tenneco will still retain these U.S. hypothetical tax
deductions. Should you resign or be discharged for cause, you will be covered
under the tax-equalization policy until your separation date.

PricewaterhouseCoopers will conduct an interview to ensure your familiarity
with U.S. and Belgium tax requirements. For each year in which you are on the
assignment, and for the following year if required, they will also prepare your
U.S. federal and local tax returns and Belgium tax returns (as required).
Additionally, they will provide the Company with a statement of the tax
liability on your total income subject to certain limitations. The Company will
pay tax preparation fees.

OTHER MATTERS

Tenneco will not guarantee the term of any foreign assignment. Normally, a
long-term foreign assignment is expected to be for a period varying from one to
three years. The actual time will vary and may be impacted by personal
emergencies, Company business circumstances or performance.
<PAGE>
The Company will provide for relocation to your Point of Origin or to some
other mutually agreed upon area upon termination of the foreign assignment.
While the Company cannot provide a guarantee of any specific assignment upon
return to the U.S., the Company's best efforts will be made to assign you to a
position in keeping with both experience and performance.

The laws of the State of Illinois, the policies of Tenneco-U.S., and your
letter agreement dated as of June 1, 2001 with the Company will govern the
terms and conditions of your employment and termination of employment
(voluntary or involuntary).

These terms and conditions of your international assignment do not create a
contract of employment between you and the Company for any specified period.
Your employment with Tenneco is an "Employment at Will", which means that
either you or the Company may terminate your employment at any time, with or
without cause, upon notice to the other (it being understood that certain
provisions of your letter agreement dated as of June 1, 2001 with the Company
and this Exhibit A may apply with respect to your compensation and/or
relocation in the event of such a termination).
<PAGE>
                 INTERNATIONAL ASSIGNMENT COMPENSATION SUMMARY

                                 Mr. Hari Nair
                               Tenneco Automotive

BASE SALARY
-Effective Date 06/01/2001            $305,000/yr

INTERNATIONAL PREMIUM                 $12,500 paid upon expatriation and
                                      repatriation (tax protected by the Company
RELOCATION PAYMENTS
- Miscellaneous Allowance             $18,750 paid upon expatriation and
                                      repatriation (not tax protected by the
                                      Company)
APPLICABLE FOREIGN ASSIGNMENT
ALLOWANCES                            - U.S. Hypothetical Tax Withholding
                                      (107,440)/yr.*
GOODS AND SERVICES
DIFFERENTIAL                          $19,262/yr.

OTHER BENEFITS                        - Company Car
                                      - Perquisite Allowance ($15,000/yr.)
                                      - Tax Preparation and Equalization
                                      - Househunting Trip
                                      - Bi-Annual Home Leave
                                      - Language and Cultural Training

* The hypothetical tax withholding reflects
federal and state income tax on base
salary only. An adjustment will be made
at a later date to include personal income.

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