Document:

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                                                                   EXHIBIT 10.12

               TENNECO AUTOMOTIVE INC. DEFERRED COMPENSATION PLAN

1.       PURPOSE

The purpose of the Plan is to provide to directors and a select group of
management or highly compensated employees of Tenneco Inc., a Delaware
corporation to be renamed Tenneco Automotive Inc., and its subsidiaries and
affiliates after giving effect to the "Spin-off" defined below (hereinafter
collectively referred to as the "Company") an opportunity to defer compensation
received by them from the Company in accordance with the terms and conditions
set forth herein.

2.       ADOPTION AND ADMINISTRATION

The Plan shall be administered by the Compensation / Nominating / Governance
Committee of the Board of Directors of the Company (the "Committee"). The
Committee shall have sole and complete authority and discretion to interpret the
terms and provisions of the Plan and to adopt, alter and repeal such
administrative rules, regulations and practices governing the operation of the
Plan, and to determine facts under the Plan as it shall from time to time deem
advisable.

3.       ELIGIBILITY

Directors and U.S. paid participants in the Company's Executive Incentive
Compensation Plan shall be eligible to participate in the Plan.

Any person who had an account balance in the Tenneco Inc. Deferred Compensation
Plan (or the Deferred Compensation Plan for Directors of Tenneco Inc.) as of the
date (the "Distribution Date") on which the stock of Tenneco Packaging Inc. was
distributed to the shareholders of the Company and whose account balance was
allocated to the Company under the Human Resources Agreement between the Company
and Tenneco Packaging Inc. (the "Agreement") shall participate in this Plan.

Persons eligible to participate in the Plan shall be referred to as
"Participant" or "Participants" as the case may be.

4.       ELECTION TO DEFER

         (a)   A Participant may elect in writing to defer receipt of all or a
               specified portion of his or her bonuses or incentive compensation
               to be received during a calendar year ("Deferral Election");
               provided, however, that any election by a Participant who is
               subject to the reporting and short swing profits liability
               provisions of Section 16 of the Securities and Exchange Act of
               1934, as amended, including an election relating to the form of
               distribution or to defer income into an "Automotive stock index
               account" pursuant to Section 6 of the Plan, shall not be
               effective until such election and the transactions contemplated
               thereby shall have been specifically approved by the Committee to
               the extent such approval is required to avoid liability under
               Section 16 of the Securities and Exchange Act of 1934 and the
               regulations thereunder. Amounts deferred under the Plan shall be
               referred to as

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               the "Deferred Amounts." Once received by the Committee, a
               Deferral Election cannot be revoked.

         (b)   Directors who are not employees of the Company or its
               subsidiaries (hereinafter referred to as "Outside Directors")
               will receive as part of their compensation for service on the
               Company's Board of Directors sixty (60) percent of their annual
               retainer fee in the form of credits deferred subject to the terms
               of this Plan in the Automotive stock index account with stock
               settlement.

         (c)   Except as provided in this Section 4(c), a Deferral Election must
               be made prior to September 30 of the calendar year in which the
               bonus, incentive compensation or retainer fee will be awarded. A
               Participant must make a separate Deferral Election with respect
               to each calendar year of participation in the Plan. A new
               Participant in the Plan shall have 30 days following his or her
               notification by the Committee of his or her eligibility to
               participate in the Plan to make a Deferral Election with respect
               to bonus or incentive compensation to be awarded within that
               calendar year.

         (d)   As specified by the Participant in a Deferral Election, the
               period of deferral shall be until the Participant dies,
               terminates employment with the Company, or until a specific date
               selected by the Participant in the Deferral Election.

5.       ESTABLISHMENT OF DEFERRED COMPENSATION ACCOUNT

At the time of a Participant's initial Deferral Election, the Company shall
establish a memorandum account (a "Deferred Compensation Account") for such
Participant on its books. The Deferred Amount shall be credited to the
Participant's Deferred Compensation Account as of the day on which the
Participant would otherwise be entitled to receive the bonus or incentive
compensation. Any required withholding for taxes (e.g. Social Security taxes) on
the Deferred Amount shall be made from other compensation of the Participant.
Adjustments as provided below, shall be made to the Participant's Deferred
Compensation Account.

6.       ADJUSTMENTS TO DEFERRED AMOUNTS

The Committee shall credit the balance of the Participant's Deferred
Compensation Account with an earnings factor. The earnings factor will equal the
amount the Participant's Deferred Compensation Account would have earned if it
had been invested in the investment options listed below. The Participant is
permitted to select the investment option used to determine the earnings factor
and may change the selection at any time. The Participant may choose more than
one investment option in increments of at least one (1) percent. The Company
reserves the right to change or amend any of the investment options at any time.

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The investment options used to determine the earnings factor are:

         (a)      The prime rate of interest as reported by The Chase Manhattan
                  Bank at the first day of each calendar month.

         (b)      Automotive stock index account -- amount of deferral will be
                  invested in Tenneco Automotive Inc. stock equivalent unit
                  account. Any investment in this account will be measured
                  solely by the performance of the Company's common stock
                  (including dividends that will be reinvested). Cash settlement
                  or stock settlement.

         (c)      The return for selected Mutual Funds currently offered in the
                  Company's qualified thrift plan for salaried employees:

                  (1)      Fidelity Growth Company Fund

                  (2)      Barclays U.S. Debt Index Fund (Bond)

                  (3)      Barclays Daily Equity Index Fund

The Company is under no obligation to acquire or provide any of the investments
designated by a Participant, and any investments actually made by the Company
will be made solely in its name and will remain its property.

The crediting of an earnings factor shall occur so long as there is a balance in
the Participant's Deferred Compensation Account regardless of whether the
Participant has terminated employment.

7.       PAYMENT OF DEFERRED AMOUNTS

         (a)      Except as otherwise provided in subsection (b) or (c) below, a
                  Participant's Deferred Amount shall be paid, or commence to be
                  paid, to the Participant, or the Participant's beneficiary, as
                  soon as practicable after:

                  (i)   the Participant's death,

                  (ii)  the termination of the Participant's employment or
                        service as a director, or

                  (iii) the date specified in the applicable Deferral Election
                        made by the Participant.

                  In the event of the Participant's death, payment of the
                  balance in the Participant's Deferred Compensation Account
                  shall be made, either (i) in a lump sum or (ii) in a number of
                  annual installments, not to exceed five, as soon as
                  administratively feasible to the Participant's designated
                  beneficiary, or if none, to the Participant's estate.

         (b)      The Participant may elect to receive payment of the balance of
                  his or her Deferred Compensation Account either (i) in a lump
                  sum upon termination or (ii) in a single payment at a
                  specified date prior to termination or (iii) in a number of
                  post

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                  termination annual installments, not to exceed five, as the
                  Participant shall elect. The distribution election must be
                  made at least one year before the Deferred Amount is payable
                  and must be approved by the Committee. If no election is
                  made, a lump sum payment will be made upon the Participant's
                  termination.

         (c)      Anything contained in this Section 7 to the contrary
                  notwithstanding, in the event a Participant incurs a severe
                  financial hardship, the Committee, in its sole discretion and
                  upon written application of such Participant, may direct
                  immediate payment of all or a portion of the then current
                  value of such Participant's Deferred Compensation Account;
                  provided that such payment shall in no event exceed the amount
                  necessary to alleviate such financial hardship; and provided
                  further that in the case of such payment, the Participant's
                  Deferred Compensation Account shall be reduced by 110% of the
                  amount of such payment.

8.       PARTICIPANT REPORTS

The Committee shall provide a statement to the Participant quarterly concerning
the status of his or her Deferred Compensation Account.

9.       TRANSFERABILITY OF INTERESTS

During the period of deferral, all Deferred Amounts shall be considered as
general assets of the Company for use as it deems necessary and shall be subject
to the claims of its creditors.

The rights and interests of a Participant during the period of deferral shall be
those of a general unsecured creditor except that such Participant's rights and
interests may not be reached by the creditors of the Participant or the
Participant's beneficiary, or anticipated, assigned, pledged, transferred or
otherwise encumbered except in the event of the death of the Participant, and
then only by will or the laws of descent and distribution.

10.      AMENDMENT, SUSPENSION AND TERMINATION

The Company at any time may amend, suspend or terminate the Plan or any portion
thereof in such manner and to such extent as it may deem advisable and in its
best interests. No amendment, suspension and termination shall reduce the amount
then credited to a Participant's Deferred Compensation Account.

11.      UNFUNDED OBLIGATION

The Plan shall not be funded; no trust, escrow or other provisions shall be
established to secure payments due under the Plan; and the Plan shall be
regarded as unfunded for purposes of the Employee Retirement Income Security Act
of 1974, as amended, and the Internal Revenue Code. A Participant shall be
treated as a general, unsecured creditor at all times under the Plan, and shall
have no rights to any specific assets of the Company. All amounts credited to
the memorandum accounts of the Participants will remain general assets of the
Company and shall be payable solely from the general assets of the Company.

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12.      NO RIGHT TO EMPLOYMENT OR OTHER BENEFITS

Nothing contained herein shall be construed as conferring upon any Participant
the right to continue in the employ of the Company. Any compensation deferred
and any payments made under this Plan shall not be included in creditable
compensation in computing benefits under any employee benefit plan of the
Company except to the extent expressly provided therein.

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13.      DISPUTE RESOLUTION

By participating in the Plan, the Participant agrees that any dispute arising
under the Plan shall be resolved by binding arbitration in Lake Forest, Illinois
under the rules of the American Arbitration Association and that there will be
no remedy besides the disputed deferred compensation amount in issue.

14.      EFFECTIVE DATE

The Plan shall be effective immediately following completion of the distribution
of the stock of Tenneco Packaging Inc. (to be renamed Pactiv Corporation) to the
Company's stockholders (the "Spin-off").

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

                                                 TENNECO INC. (TO BE RENAMED
                                                 TENNECO AUTOMOTIVE INC.)

Date: November 4, 1999                           /s/ Richard P. Schneider
                                                 -------------------------------

                                                 By: Richard P. Schneider

                                                 Its: SVP-Global Administration

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                                                                   EXHIBIT 10.13

                             TENNECO AUTOMOTIVE INC.

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                                     PURPOSE

         The Plan is maintained by Tenneco Inc., a Delaware corporation to be
renamed Tenneco Automotive Inc. (the "Company"), as an unfunded plan for the
purpose of providing retirement benefits with respect to certain employees that
are equal to retirement benefits lost under its qualified defined benefit
pension plan for salaried employees (the "Retirement Plan") as a result of the
imposition of the limitations contained in the Internal Revenue Code of 1986, as
amended (the "Code"). The portion of the Plan that provides for benefits limited
by Code Section 415 is maintained as an "excess benefit plan" as described in
Section 3(36) of the Employee Retirement Income Security Act of 1974 as amended
("ERISA"). The other benefits provided for under the Plan are only available to
a "select group of management or highly compensated employees" as determined by
the Compensation / Nominating / Governance Committee of the Board of Directors
of the Company (the "Committee"), and the portion of the Plan providing such
benefits is intended to satisfy the ERISA exemption requirements for a plan
limited to such a group. Capitalized terms not defined herein shall have the
meaning ascribed to such terms in the Retirement Plan.

                                    THE PLAN

1.       Effective Date

         The Plan as set forth herein is effective immediately following
completion of the distribution of the stock of Tenneco Packaging Inc., to be
renamed Pactiv Corporation ("Packaging"), to the shareholders of the Company
(the "Distribution Date"). The benefit entitlement, if any, under the Tenneco
Inc. Supplemental Employee Retirement Plan (the "Former Plan") of any person who
separated from service prior to that date shall be governed by the provisions of
the Former Plan as it was in effect from time to time prior to that date, and
liability for such benefit has been allocated under the Human Resources
Agreement entered into between the Company and Packaging as of November 4, 1999.

2.       Eligibility

         An employee shall be a "Participant" in this Plan if the employee is a
participant in the Retirement Plan or is provided a benefit under Section 11
hereof.

3.       Amount of Benefit

         The benefit payable under this Plan to a Participant, or to the
Participant's Eligible Spouse, Eligible Child(ren), joint annuitant or other
beneficiary(ies), all as determined under the provisions of the Retirement Plan,
shall equal the excess, if any, of (a) over (b) where:

                  (a) is the benefit that would be paid under the Retirement
         Plan if the provisions of the Retirement Plan were administered without
         regard to the limitations imposed by the Code and, only with respect to
         Participants who, at any time, were
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         participants in the Company's Executive Incentive Compensation Plan
         (the "EICP"), if Final Average Compensation, as computed under the
         Retirement Plan, were determined on the basis of compensation paid
         during the three calendar years (of the five calendar year period
         ending no later than the calendar year immediately preceding his or
         her termination or retirement) for which such compensation is the
         highest, and increased by the quotient of (i) the total of the cash
         bonuses, as defined below, paid to the Participant in the three
         calendar years (during the same five calendar year period ending no
         later than the calendar year immediately preceding his or her
         termination or retirement) for which such total is the highest,
         divided by (ii) three or such lesser number of calendar years
         (included in such period) in which such bonuses were paid to the
         Participant; provided, that the calendar year including his or her
         termination or retirement shall be included if such event follows the
         payment of regular bonuses for that year; and provided, that bonuses
         and salary, respectively, deferred at the election of the Participant
         shall be counted only in the year that they would have been paid
         absent such election, and provided further, that the foregoing
         language shall be applied to count bonuses which relate to a calendar
         year as paid in that year, for example, 2000 bonuses will be counted
         in 2000 notwithstanding the fact that they are actually paid in 2001;
         and

                  (b) is the benefit that is payable under the Retirement Plan.

         Notwithstanding the foregoing, if, except as otherwise provided in
writing, an employee is granted credit for purposes of benefit accrual under the
Retirement Plan for service rendered prior to the time that the employee became
a participant in the Retirement Plan, such employee shall be credited with such
service under this Plan only if and to the extent determined by the Committee.
Unless otherwise provided in writing, no benefit shall be payable under the Plan
unless a benefit also is payable under the Retirement Plan, except that benefits
accrued hereunder as of the effective date are treated as fully vested and
nonforfeitable to the extent provided in the HR Agreement.

         Cash bonus means only cash bonuses paid under the EICP and other cash
bonuses as the Committee determines.

4.       Form of Benefit

         Any benefit under this Plan shall be paid in the same form and manner
as the benefit payments made to, or with respect to, the Participant under the
Retirement Plan. Notwithstanding the preceding sentence, no benefit is payable
hereunder prior to 60 days after the Participant has separated from service,
unless the Committee so determines. Prior to the commencement of benefits but,
in no event later than 24 months after the Participant has separated from
service, and only with respect to a Participant who at any time was a
participant in the EICP (or a beneficiary of such a Participant), such
Participant or beneficiary may elect, but only with the approval of the
Committee, to receive payment of such benefit in the form of a lump sum or
annuity, provided that in cases where a Participant has chosen a lump sum and
the exact amount of a Participant's benefit cannot be determined by the date
elected for payment, a preliminary lump sum shall be paid with respect to
amounts that can be clearly ascertained then,

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with the remainder to be issued in a subsequent lump sum when that amount is
exactly determined by the Committee or its delegee. In addition, with respect to
all Plan Participants, if the benefit payable from this Plan (expressed as an
age 65 life annuity) would be less than $50 per month, the benefit payable from
this Plan automatically shall be paid as a lump sum.

         The actuarial factors set forth in the Retirement Plan shall be used to
compute benefits hereunder, provided that, for purposes of any lump sum payment
that may be payable under the Plan, the interest rate used shall be the annual
rate of interest on 30-year Treasury securities as specified by the IRS for the
second calendar month preceding the first day of the Plan Year during which the
annuity starting date occurs, and the applicable mortality table described in
Rev. Rul. 95-6, 1995-1 C.B. (page 80), or in such other formal guidance as may
be issued from time to time by the IRS.

5.       Unfunded Plan

         This Plan shall be maintained as an unfunded non-qualified deferred
compensation plan. All benefits under this Plan shall be payable from the
general assets of the Company. No person shall be entitled to receive any
benefits under this Plan from the funds of the Retirement Plan.

6.       No Assignment

         No benefit under this Plan shall be assignable or alienable or
subjected, by attachment or otherwise, to the claims of creditors of any person.

7.       No Guarantee of Employment

         This Plan shall not be construed to give any Participant the right to
be retained in the employment of the Company or any of its affiliates.

8.       Operation and Administration

         This Plan shall be operated under the direction of and administered by
the Committee.

         The Committee's decision in all matters involving the interpretation
and application of this Plan shall be final and binding. The Committee shall
establish a claims procedure which is consistent with the claims procedure
employed under the Retirement Plan.

9.       Governing Law

         To the extent not preempted by federal law, this Plan shall be
construed, administered and enforced in accordance with the laws of the State of
Illinois.

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10.      Amendment and Discontinuance

         The Company reserves the right, by action of the Committee, to amend or
discontinue the Plan. However, no such amendment or discontinuance shall impair
or adversely affect any benefits accrued under this Plan as of the date of such
action.

11.      Special Appendix

         The Company may from time to time determine to provide certain persons
additional supplemental pension benefits, which may be reflected in a Special
Appendix hereto or in such other document as the Company shall determine.
References in a Special Appendix or such other document to the "Plan" are to
this Plan.

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

                                                 TENNECO INC. (to be renamed
                                                 TENNECO AUTOMOTIVE INC.)

Date: November 4, 1999                           /s/ Richard P. Schneider
                                                 ------------------------------

                                                 By: Richard P. Schneider

                                                 Its: SVP-Global Administration

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