<PAGE>
                               PURETEC CORPORATION


                            SUMMARY PLAN DESCRIPTION

                   SEVERANCE PAY PLAN FOR DOMESTIC, SALARIED,
                    NON-CORPORATE OFFICE EMPLOYEES TERMINATED
                          AS A RESULT OF RESTRUCTURING





PURPOSE OF PLAN:              In view of the possible restructuring of PureTec
                              Corporation, and its subsidiary, affiliated and
                              related entities (collectively "PureTec"),
                              following the purchase of PureTec shares by
                              TekniPlex, Inc. ("Tekni-Plex"), which may result
                              in the permanent termination of certain domestic,
                              salaried, non-corporate office employees, PureTec
                              has adopted this Severance Pay Plan ("Plan") to
                              provide for a severance payment to PureTec
                              salaried, non-corporate office employees whose
                              employment is terminated in connection with the
                              restructuring.

TERMINATION OF PRIOR          This Plan terminates, supercedes and replaces any
SEVERANCE PAY PLANS:          and all prior severance pay plans, practices,     
                              programs and policies applicable to the employees 
                              eligible for this Plan.                           
                             

EFFECTIVE DATE:               The effective date of this Plan is the date that
                              Tekni-Plex gains control of PureTec.



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ELIGIBILITY FOR SEVERANCE    Any domestic, salaried, non-corporate office      
PAYMENT                      employee who: (a) is continuously on PureTec=s     
                             active payroll on the date that their termination  
                             is announced and remain so through his or her      
                             Separation Date ("eligibility period"); (b) is     
                             terminated by PureTec or Tekni-Plex, or            
                             voluntarily resigns following a significant        
                             reduction in the employee's base salary or the     
                             relocation of the employee's office to a location  

                             more than seventy-five miles from the location of  
                             his or her office immediately prior to the         
                             Effective Date of this Plan within twelve (12)     
                             months following the Effective Date of this Plan,  
                             in connection with restructuring changes; (c) sign 
                             an Agreement for Separation of Employment and      
                             General Release; (d) deliver to PureTec an         
                             executed Certificate of Non-Revocation of          
                             Agreement for Separation of Employment and General 
                             Release, if the employee is age 40 or above; (e)   
                             complete an Illness/Injury Report; and (f)         
                             otherwise remain qualified and are not             
                             disqualified under any of the terms and conditions 
                             set forth in this Summary Plan Description, are    
                             eligible for a severance payment in accordance     
                             with this Plan. An employee of PureTec will not be 
                             eligible for a severance payment under this Plan,  
                             if the employee: (a) is not a domestic, salaried,  
                             non-corporate office employee as of the Effective  
                             Date of this Plan; (b) is a party to an agreement  
                             with PureTec, which provides for the employee to   
                             receive a payment upon termination of employment   
                             that is greater than the severance payment         
                             provided under this Plan; (c) is terminated in     
                             connection with the restructuring at PureTec and   
                             then is 

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                             employed by TekniPlex, Inc., or one of     
                             PureTec's or TekniPlex's subsidiaries, affiliates  
                             or otherwise related entities; or (d) is           
                             terminated more than one (1) year after the        
                             Effective Date of this plan. This Plan does not    
                             apply to PureTec employees who are employed at the 
                             PureTec corporate office located at 65 Railroad    
                             Avenue, Ridgefield, NJ 07657.                      
                              

SEPARATION DATE:             The date that PureTec designates as the employee's
                             last date of employment.

AGREEMENT FOR SEPARATION OF  An agreement in the form of Exhibit 1 attached
EMPLOYMENT AND GENERAL       hereto, for employees age 40 and above. An    
RELEASE:                     agreement in the form of Exhibit 2 attached   
                             hereto, for employees under the age of 40.    

ILLNESS/INJURY REPORT:       A report in the form of Exhibit 3 attached hereto.

CERTIFICATE OF               A certificate in the form of Exhibit 4 attached   
NONREVOCATION OF AGREEMENT   hereto.                                           
FOR SEPARATION OF            
EMPLOYMENT AND GENERAL 
RELEASE: 


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ACTIVE PAYROLL REQUIREMENT:  For purposes of eligibility under this Plan, an
                             employee will be considered to be on active payroll
                             if the employee regularly performs work for
                             PureTec, to PureTec's satisfaction, through and
                             including the eligibility period, or is off work
                             during the eligibility period on an approved
                             vacation, approved leave of absence or a paid
                             holiday. The employee will not be considered on the
                             active payroll for purposes of this Plan if the
                             employee: (a) does not regularly report for work
                             during the eligibility period (except as otherwise
                             authorized under this paragraph); (b) is not
                             working because of a disciplinary suspension during
                             any part of the eligibility period; or (c) is
                             determined by PureTec to have voluntarily resigned
                             for reasons other than following a significant
                             reduction in the employee's base salary or the
                             relocation of the employee's office to a location
                             more than seventy-five miles from the location of
                             his or her office immediately prior to the
                             Effective Date of this Plan, or terminated for any
                             reason other than the elimination of the employee's
                             position due to the restructuring of PureTec after
                             the Effective Date of this Plan.



                                      4

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SEVERANCE PAYMENT:           Each eligible employee will receive a severance
                             payment in the form of a single payment. The
                             severance payment will be based on the employee's
                             length of service at PureTec on the Separation
                             Date, and will be equivalent to one (1) week per
                             year of service at the employee's weekly base
                             salary on the Separation Date, less applicable
                             deductions and any amount owed to PureTec by the
                             employee, but in no case less than the number of
                             weeks defined in the Position Responsibility Table,
                             Exhibit 5, attached hereto for the employee's
                             position or job title as in effect immediately
                             prior to the Effective Date. The employee's years
                             of service shall mean the number of whole calendar
                             years during which the employee was employed with
                             PureTec, plus a pro rata portion of any partial

                             years determined by dividing the number of whole
                             months during which the employee was employed with
                             PureTec in the partial year by 12. If an employee
                             is otherwise eligible, the severance payment will
                             be paid even if the employee commences other
                             employment with an employer other than PureTec or
                             Tekni-Plex after the employee's Separation Date;
                             the employee shall not be required to take any
                             actions to mitigate the severance payment. 

EMPLOYEE BENEFITS:           Separated employees will be eligible to
                             continue their participation in group insurance
                             coverage, to the same extent and at the same cost
                             that they participated in group insurance coverage
                             immediately prior to their separation, for the
                             remainder of the calendar month in which the
                             Separation Date occurs plus one additional calendar
                             month.



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WARN CREDIT:                 All amounts paid to or on behalf of any employee by
                             PureTec pursuant to this Plan shall be deemed to be
                             amounts paid in satisfaction of PureTec's
                             obligation, if any, under the Worker Adjustment and
                             Retraining Act, 29 U.S.C. Section 2012, et seq.
                             ("WARN").


TERMINATION                  An employee, who is separated for cause,         
FOR CAUSE OR FOR             voluntarily resigns for reasons other than       
ANY REASON OTHER             following a significant reduction in the 
THAN THE ELIMINATION         employee's base salary or the relocation of the
OF THE EMPLOYEE'S            employee's office to a location more than
POSITION DUE TO              seventy-five miles from the location of his or her
RESTRUCTURING:               office immediately prior to the Effective Date of
                             this Plan, or is terminated for any reason other
                             than the elimination of the employee's position due
                             to a restructuring following the Effective Date of
                             this Plan as determined by PureTec, on or before
                             the employee's Separation Date, will not be
                             eligible under this Plan to receive a severance
                             payment. For purposes of this Plan, "cause" shall
                             include, but not be limited to: (a) a failure of
                             an employee to perform his or her duties to 
                             PureTec; (b) commission of a felony; or (c) any 
                             event of moral misconduct. 
                                          

                             



DETRIMENTAL CONDUCT:         If PureTec reasonably determines, in its sole
                             discretion, that an employee who is eligible to
                             receive a severance payment under this Plan engages
                             in conduct which is detrimental to the interests of
                             PureTec or Tekni-Plex, such employee will
                             immediately cease to be eligible for a severance
                             payment.

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                             Severance pay is conditioned upon the employee
                             refraining from attempting to or engaging in any
                             disruption of, or giving support to anyone who
                             disrupts, any PureTec or Tekni-Plex operation or
                             the performance of any PureTec or Tekni-Plex
                             employee, either directly or indirectly. Any
                             employee engaging in such activity will immediately
                             cease to be eligible for a severance payment.

ADMINISTRATION:              All questions, disputes and claims regarding this
                             Plan ("Claims"), including, but not limited to,
                             Claims concerning interpretation, administration,
                             benefit amounts, eligibility, and definitions, will
                             be decided and approved by the Plan Administrator,
                             who is PureTec's Chief Executive Officer as
                             appointed after the Effective Date of this Plan, or
                             his/her designee. The decision of the Plan
                             Administrator will be final and binding on all
                             employees and dependents. The Plan Administrator
                             may be contacted at: 201 Industrial Parkway,
                             Somerville, NJ 08876, telephone number
                             908-722-4800.

EMPLOYEE'S MAILING ADDRESS:  The employee eligible to receive a severance
                             payment is responsible for notifying PureTec of any
                             change of the employee's mailing address from the
                             address on file with PureTec's personnel office on
                             or before the date of the employee's separation.
                             The Plan shall satisfy its obligations to make
                             payment to or otherwise contact the employee by
                             using regular U.S. mail addressed to the employee
                             at the last address on file. 

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AMENDMENT AND TERMINATION:   The Plan has been duly adopted by PureTec, and

                             PureTec hereby reserves the right to amend or
                             modify the Plan, in whole or in part, at any time;
                             provided, however, that no such amendment or
                             modification shall alter the eligibility for
                             severance payment or severance payment provisions
                             (and related definition provisions) as they exist
                             as of the Effective Date. This Plan may not be
                             terminated prior to the end of the twelve-month
                             period immediately following the Effective Date. 

                                      8

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CLAIMS PROCEDURE:            An employee shall have no obligation to apply for a
                             severance payment under the Plan, but an employee
                             who believes that he or she has not received a
                             severance payment to which the employee believes
                             the employee is entitled, may submit a written
                             Claim for such payment to the Plan Administrator. A
                             Claim must be presented to the Plan Administrator
                             within 90 days after the employee knew or should
                             have known of the facts that gave rise to the
                             Claim. Failure to present a Claim in a timely
                             manner shall be a waiver of the Claim.

                             The Plan Administrator will respond in writing to a
                             Claim for benefits under the Plan within 90 days of
                             receipt of the Claim, unless the Plan Administrator
                             needs additional information, or special
                             circumstances require an extension of time for
                             processing the claim, in which case the 90-day
                             period may be extended to a period of up to 180
                             calendar days from the receipt of the Claim. The
                             Plan Administrator will notify the employee with a
                             written explanation of the denial which shall state
                             (i) the specific reason or reasons that the Claim
                             was denied; (ii) the exact references to the Plan
                             provisions that dealt with the Claim; (iii) an
                             explanation as to why such material or information
                             is necessary; and (iv) an explanation of the Plan
                             procedure to have the Claim reviewed. If no
                             response is given by the Plan Administrator within
                             the applicable time period, it will be deemed a
                             denial of the Claim.

                             Within 60 calendar days after an employee receives
                             a denial of the Claim, the employee may appeal the
                             Claim


                                        9

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                             denial to the Plan Administrator. The employee or
                             the employee's authorized representative may make a
                             written request for a review of the denial and to
                             review applicable documents, and must submit
                             comments and issues in writing. The Plan
                             Administrator will decide an appeal within 60
                             calendar days after receiving the request for
                             review, unless special circumstances require an
                             extension of time for processing, in which case the
                             60-day period may be extended to a period of up to
                             120 calendar days from the receipt of the request
                             for review.

                             The Plan Administrator will notify the employee in
                             writing of any such extension. The Plan
                             Administrator's decision on the review will be in
                             writing, and shall include specific reasons for the
                             decision and references to the Plan provision upon
                             which it was based.




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STATEMENT OF ERISA RIGHTS:   As a participant in this Plan, the Employee
                             Retirement Income Security Act of 1974, as amended
                             ("ERISA"), gives employees certain rights and
                             protection and imposes certain duties on the
                             persons who administer the Plan, as discussed
                             below. ERISA provides that all Plan participants
                             shall be entitled to:

                             (1) Examine, without charge, during normal business
                             hours at the Plan Administrator's office, all Plan
                             documents and copies of all documents filed by the
                             Plan with the U.S. Department of Labor, if any.

                             (2) Obtain copies of all the Plan documents and
                             other Plan information upon written request to the
                             Plan Administrator. The Administrator may make a
                             reasonable charge for copies; therefore, employees
                             should inquire what the charge will be before
                             requesting specific copies.

                             In addition to creating rights for Plan

                             participants, ERISA imposes duties upon the people
                             who are responsible for the operation of the Plan.
                             Those persons, called "fiduciaries" of the Plan,
                             have a duty to operate the employee benefit plan
                             prudently and in the interest of Plan participants
                             and beneficiaries. No one, including PureTec's
                             officers or directors may fire an employee or
                             otherwise discriminate against an employee in any
                             way to prevent an employee from obtaining a welfare
                             benefit under the Plan or from exercising an
                             employee's rights under ERISA, if any.

                             If an employee has a Claim for a Plan benefit which
                             is denied in whole or in



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                             part, the employee will be given a written
                             explanation of the reason for the denial. The
                             employee will have a right to have the Claim
                             reviewed and reconsidered. The employee may submit
                             a written request for reconsideration of the Claim
                             to the Plan Administrator.

                             Under ERISA, there are steps the employee can take
                             to enforce the above rights. For instance, if the
                             employee requests materials from the Plan and does
                             not receive them within thirty (30) days, the
                             employee may file suit in a federal court. In such
                             a case, the court may require the Plan
                             Administrator to provide the materials and pay the
                             employee up to $100 a day until the employee
                             receives the materials, unless the materials were
                             not sent because of reasons beyond the control of
                             the Administrator. If the employee has a claim for
                             benefits which is denied or ignored, in whole or in
                             part, the employee may file suit in a state or
                             federal court. If it should happen that Plan
                             fiduciaries misuse the Plan's money, or if the
                             employee is discriminated against for asserting
                             rights under ERISA, the employee may seek
                             assistance from the U.S. Department of Labor or the
                             employee may file suit in a federal court. The
                             court will decide who should pay court costs and
                             legal fees. If the employee is successful, the
                             court may order the person sued by the employee to
                             pay those costs and fees. If the employee loses,
                             the court may order the employee to pay those costs

                             and fees, for example, if it finds the employee's
                             claim is frivolous.




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                             If an employee has any questions about the Plan,
                             the employee should contact the


                             Plan Administrator. If the employee has any
                             questions about this statement or about the
                             employee's rights under ERISA, the employee should
                             contact the nearest area office of the U.S. Labor-
                             Management Services Administration, Department of
                             Labor.

PLAN'S END OF FISCAL YEAR:   June 28, 1998. This is the date of the end of the
                             year for purposes of maintaining the Plan's fiscal
                             records.

EMPLOYER ID NUMBER:          ___*__*___. This is PureTec's identification number
                             assigned by the Internal Revenue Service.

AGENT FOR LEGAL PROCESS:     Service of legal process may be made upon the Plan
                             Administrator.


                           (Intentionally Left Blank)



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                                                            [age 40 and above]

           AGREEMENT FOR SEPARATION OF EMPLOYMENT AND GENERAL RELEASE

                  In consideration for the eligibility of
____________________________ ("Employee") for a Severance payment, pursuant to
the PureTec Severance Pay Plan for Domestic, Salaried, Non-Corporate Office
Employees Terminated as a Result of Restructuring (the "Plan"), effective on the
date that Tekni-Plex, Inc. ("Tekni-Plex") gained control of PureTec Corporation
("PureTec"), Employee and PureTec execute this Agreement for Separation of
Employment ("Agreement") and agree as follows:


                  1. Employee's employment at PureTec, or its subsidiary or
affiliated companies, or any related entity (collectively "Employer") was
terminated as part of restructuring after Tekni-Plex gained control of PureTec.

                  2. Upon Employee's termination, Employer paid to Employee all
final wages, which are vested and accrued, reduced by applicable payroll
deductions. Employee agrees that except for a severance payment under the Plan,
Employee has been fully paid for any and all: (a) business expenses incurred on
behalf of Employer; and (b) accrued and vested wages, bonuses and benefits,
including, but not limited to, vacation, if any.

                  3. Upon termination of Employee's employment with Employer,
Employee will comply with the following:

                           A. Employee will immediately return all Employer
files, records, documents, plans, drawings, specifications, equipment, pictures,
videotapes, programs or any property or other items concerning Employer,
including, but not limited to, its and their employees, operations, business,
and customers, whether prepared by Employee or otherwise coming into Employee's
possession or control. 

                           B. Employee has had access to and has become
acquainted with various trade secrets, including, but not limited to, the
identities and requirements of Employer's customers, all of which are owned by
Employer. Employee will never



                                    EXHIBIT 1
                                                         

<PAGE>



disclose any of the trade secrets, directly or indirectly, and will never use
them in any way, unless given permission in writing by Employer's Chief
Executive Officer.

                           C. Employee will not be required to perform any
further services for Employer, except: (a) as is necessary to cooperate with and
assist Employer, and its officers and employees in the transition of business
and management; and (b) to assist and cooperate (including, but not limited to,
testifying or providing information to Employer) in the investigation and
handling of any actual or threatened court action, arbitration or administrative
proceeding involving any matter that arose during the period of Employee's
employment. Such assistance and cooperation will be rendered at times and places
convenient to the parties. 

                  4. Employee, for Employee and for Employee's heirs, executors,
administrators, successors, and assigns, does hereby fully and forever release
and discharge Tekni-Plex and PureTec, and their parent, affiliated and
subsidiary corporations and related entities, including its, and their
shareholders, employees and former employees, agents, directors, officers,

attorneys, predecessors, successors, assigns, heirs, executors, administrators,
and all other persons, firms, corporations, associations, partnerships, or
entities having any legal relationship to any of them, of and from any and all
claims, demands, causes of action, charges and grievances, of whatever kind or
nature, whether known or unknown, suspected or unsuspected, which Employee now
owns or holds or has at any time before this date owned or held against any of
them, including, but not limited to, any and all claims, demands, causes of
action, charges, and grievances: (1) which are alleged about, set forth in,
arise out of, or are in any way connected with any transactions, occurrences,
acts or omissions concerning any loss, damage or injury whatsoever resulting
from any act committed or omission made prior to the effective date of this
Agreement; (2) which are alleged about, set forth in, arise out of, or are in
any way connected with Employee's employment with Employer, or the termination
of Employee's employment with Employer; or (3) which are related to or concern
(i) violation of local, state or federal law, including but not limited to the
federal 


                                      2

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Age Discrimination in Employment Act and Worker Adjustment and Retraining
Notification Act ("WARN"); and (ii) wrongful termination, breach of the covenant
of good faith and fair dealing, intentional or negligent infliction of emotional
distress, defamation, invasion of privacy, breach of employment contract, fraud
or negligent misrepresentation, or any other tort cause of action. Any and all
benefits and amounts paid to or on behalf of Employee shall apply toward any
obligation of Employer under WARN, if any. Nothing contained herein shall be
construed so as to apply to or in any way limit the indemnification rights which
Employee may have pursuant to Section 6.03 of the Agreement and Plan of Merger,
dated November 11, 1997, among PureTec Corporation, Plastic Specialties &
Technologies, Inc., Tekni-Plex, Inc. and P.T. Holding, Inc.

                  5. Employer has advised Employee to consult with independent
legal counsel prior to executing this Agreement.

                  6. Employee has forty-five (45) days after receipt of this
Agreement within which to consider the Agreement and seven (7) days following
Employee's execution of the Agreement to revoke the Agreement. This Agreement
was received by Employee on              . Attached to this Agreement as Exhibit
A is a Notice Regarding The Scope of Employer's Severance Pay Plan for Salaried,
Non-Corporate Office Employees Terminated as a Result of Restructuring.

                  7. If any term or provision of this Agreement is held to be
invalid or unenforceable, the remaining portions of this Agreement will continue
to be valid and will be performed, construed and enforced to the fullest extent
permitted by law, and the invalid or unenforceable term will be deemed amended
and limited in accordance with the intent of the parties, as determined from the
face of the Agreement, to the extent necessary to permit the maximum
enforceability or validation of the term or provision.

                  8. This Agreement constitutes and contains the entire
agreement and understanding between the parties and supersedes and replaces all

prior negotiations 
                                        3

<PAGE>


and agreements proposed or otherwise, whether written or oral, concerning the
subject matter of this Agreement. This is an integrated document.

                  9. This Agreement is effective and enforceable on the eighth
(8th) day following the date of execution of this Agreement by Employee, if it
is also executed by

Employer, and if Employee returns to Employer an executed Certificate of
NonRevocation of Separation Agreement and General Release no earlier than on the
eighth (8th) day following the date of execution of this Agreement. The
severance payment provided under the Plan will be made to Employee on the next
regular pay date, but no less than five (5) days, following the effective date
of this Agreement as provided in this paragraph, and pursuant to the terms and
conditions of the Plan.

                  10. The provisions of this Agreement shall continue to be
fully effective and enforceable even if an event occurs after the effective date
of the Agreement that causes Employee to cease being eligible for benefits under
the Plan.

                  11. Any claim, dispute or disagreement between Employee,
Employer or Tekni-Plex, whether or not arising out of the terms of this
Agreement, Employee's employment, termination of employment, or otherwise, that
the Employer or Tekni-Plex, or both, may have against Employee, or that Employee
may have against the Employer or against Tekni-Plex, the shareholders, officers,
directors, employees, agents or any other representatives of any of the
foregoing (a "Claim"), shall be resolved in accordance with the procedure set
forth below.

                  12. THE SOLE AND EXCLUSIVE METHOD TO RESOLVE ANY CLAIM IS
MEDIATION AND/OR ARBITRATION AS PROVIDED IN THIS AGREEMENT. EACH PARTY WAIVES
THE RIGHT TO A JURY TRIAL OR COURT TRIAL. Neither party shall initiate or
prosecute any lawsuit in any way related to any Claim covered by this Agreement.

                  13. A Claim may be submitted first to mediation, which shall
be non-binding and conducted in accordance with the mediation dispute resolution
procedures of the American Arbitration Association ("AAA"). If the mediation
does not result in 

                                      4

<PAGE>

settlement of the Claim, the aggrieved party may proceed to arbitration. The
mediation or arbitration, or both, will occur in the county where employee
works. The arbitration shall be conducted in accordance with the

then-current National Rules for the Resolution of Employment Disputes of the AAA

before a single arbitrator. The determination of the arbitrator shall be
conclusive and binding on the parties, and judgment may be entered on the
arbitrator's award in any court of competent jurisdiction.

                  14. The prevailing party shall be entitled to reasonable
attorneys' fees, in addition to all costs and necessary disbursements.

                  15. The date indicated below and Employee's signature below
acknowledge Employee's review, understanding and full, knowing and voluntary
acceptance of the terms and conditions set forth in this Agreement.

                  NOTICE:  BY SIGNING THIS AGREEMENT, YOU ARE
                  AGREEING THAT ALL DISPUTES WILL BE DECIDED BY
                  NEUTRAL ARBITRATION, AND YOU ARE GIVING UP YOUR
                  RIGHT TO A JURY TRIAL OR COURT TRIAL
                  (SEE PARAGRAPH 12).


DATE:
      --------------                     ----------------------------------
                                         (Employee Signature)


DATE:                                     PureTec Corporation
      --------------                     
                                        

                                          By:
                                              -----------------------------


                                        5



<PAGE>



           NOTICE REGARDING THE SCOPE OF PURETEC'S SEVERANCE PAY PLAN
             FOR DOMESTIC, SALARIED, NON-CORPORATE OFFICE EMPLOYEES
                     TERMINATED AS A RESULT OF RESTRUCTURING

                  Pursuant to the Older Workers Benefit Protection Act of 1990,
we are providing you with the following information in connection with PureTec
Corporation's ("Employer's") Severance Pay Plan for Domestic, Salaried,
Non-Corporate Office Employees Terminated as a Result of Restructuring,
effective on the date that Tekni-Plex gains control of PureTec ("Plan" or
"Program").

                  1. The following class, unit or group of individuals is
covered by the Program: With certain exceptions, all salaried, non-corporate
employees of PureTec, its subsidiary, affiliated and related entities, who are
terminated as a result of restructuring, within one (1) year after the purchase
of PureTec shares by Tekni-Plex.

                  2. Appendix A is a list reflecting the job titles and ages of
all individuals who are eligible for this Program.

                  3. There are no individuals in the same job classification or
organizational unit as those individuals specified in paragraph 2 above who are
terminated as a result of the restructuring, and who are not eligible for the
Program.

                  4. The following reflects any eligibility factors for this
Program: domestic, salaried, non-corporate office employees who are terminated
as a result of the restructuring following the purchase of Employer's shares by
Tekni-Plex, who meet the eligibility requirements of the Plan and are not
otherwise disqualified for benefits under the terms of the Plan.




                                    EXHIBIT A

<PAGE>



                  5. The following reflects any time limits applicable to this
Program: Only those domestic, salaried, non-corporate office employees who are
continuously on Employer's active payroll through their Separation Date, as
defined by the Plan, will be eligible under this Program, provided their
employment is terminated with one (1) year following the purchase of PureTec
shares by Tekni-Plex. When more than one (1) employee will be terminated, any
employee who is over the age of forty (40) will be given forty-five (45) days
after receipt of an Agreement For Separation Of Employment And General Release
("Agreement") within which to consider and execute the Agreement, and seven (7)
days following execution of the Agreement to revoke the Agreement. When only one
(1) employee, who is over the age of forty (40), is to be terminated, the
employee will be given twenty-one (21) days after receipt of an Agreement For
Separation Of Employment And General Release ("Agreement") within which to
consider and execute the Agreement, and seven (7) days following execution of
the Agreement to revoke the Agreement. Only those terminated and eligible
employees who have executed the Agreement and other related documents, as
required under the Plan, and, for those employees over forty (40), who have not
revoked the execution, will be eligible for a severance payment under the
Program.



<PAGE>



                                   APPENDIX A


Job Title                                                                Age

                  THE INFORMATION WILL BE GATHERED AFTER TEKNI-
                  PLEX GAINS CONTROL OF PURETEC



<PAGE>

                                                                [age under 40]

           AGREEMENT FOR SEPARATION OF EMPLOYMENT AND GENERAL RELEASE

                  In consideration for the eligibility of
____________________________ ("Employee") for a Severance payment, pursuant to
the PureTec Severance Pay Plan for Domestic, Salaried, Non-Corporate Office
Employees Terminated as a Result of Restructuring (the "Plan"), effective on the
date that Tekni-Plex, Inc. ("Tekni-Plex") gained control of PureTec Corporation
("PureTec"), Employee and PureTec execute this Agreement for Separation of
Employment ("Agreement") and agree as follows:

                  1. Employee's employment at PureTec, or its subsidiary or
affiliated companies, or any related entity (collectively "Employer") was
terminated as part of restructuring after the purchase of PureTec shares by
Tekni-Plex, Inc. ("Tekni-Plex").

                  2. Upon Employee's termination, Employer paid to Employee all
final wages, which are vested and accrued, reduced by applicable payroll
deductions. Employee agrees that except for a severance payment under the Plan,
Employee has been fully paid for any and all: (a) business expenses incurred on
behalf of Employer; and (b) accrued and vested wages, bonuses and benefits,
including, but not limited to, vacation, if any.

                  3. Upon termination of Employee's employment with Employer,
Employee will comply with the following:

                           A. Employee will immediately return all Employer
files, records, documents, plans, drawings, specifications, equipment, pictures,
videotapes, programs or any property or other items concerning Employer,
including, but not limited to, its and their employees, operations, business,
and customers, whether prepared by Employee or otherwise coming into Employee's
possession or control.

                           B. Employee has had access to and has and become
acquainted with various trade secrets, including, but not limited to, the
identities and requirements of 


                                    EXHIBIT 2

<PAGE>


Employer's customers, all of which are owned by Employer. Employee will never
disclose any of the trade secrets, directly or indirectly, and will never use
them in any way, unless given permission in writing by Employer's Chief
Executive Officer.

                           C. Employee will not be required to perform any
further services for Employer, except: (a) as is necessary to cooperate with and

assist Employer, and its officers and employees in the transition of business
and management; and (b) to assist and cooperate (including, but not limited to,
testifying or providing information to Employer) in the investigation and
handling of any actual or threatened court action, arbitration or administrative
proceeding involving any matter that arose during the period of Employee's
employment. Such assistance and cooperation will be rendered at times and places
convenient to the parties. 

                  4. Employee, for Employee and for Employee's heirs,
executors, administrators, successors, and assigns, does hereby fully and
forever release and discharge Tekni-Plex and PureTec, and their parent,
affiliated and subsidiary corporations and related entities, including its, and
their shareholders, employees and former employees, agents, directors, officers,
attorneys, predecessors, successors, assigns, heirs, executors, administrators,
and all other persons, firms, corporations, associations, partnerships, or
entities having any legal relationship to any of them, of and from any and all
claims, demands, causes of action, charges and grievances, of whatever kind or
nature, whether known or unknown, suspected or unsuspected, which Employee now
owns or holds or has at any time before this date owned or held against any of
them, including, but not limited to, any and all claims, demands, causes of
action, charges, and grievances: (1) which are alleged about, set forth in,
arise out of, or are in any way connected with any transactions, occurrences,
acts or omissions concerning any loss, damage or injury whatsoever resulting
from any act committed or omission made prior to the effective date of this
Agreement; (2) which are alleged about, set forth in, arise out of, or are in
any way connected with Employee's employment with Employer, or the termination
of Employee's employment with Employer; or (3) which are related to or 



                                        2

<PAGE>

concern (i) violation of local, state or federal law, including but not limited
to the Worker Adjustment and Retraining Notification Act ("WARN"); and (ii)
wrongful termination, breach of the covenant of good faith and fair dealing,
intentional or negligent infliction of emotional distress, defamation, invasion
of privacy, breach of employment contract, fraud or negligent misrepresentation,
or any other tort cause of action. Any and all benefits and amounts paid to or
on behalf of Employee shall apply toward any obligation of Employer under WARN,
if any. Nothing contained herein shall be construed so as to apply to or in any
way limit the indemnification rights which Employee may have pursuant to Section
6.03 of the Agreement and Plan of Merger, dated November 11, 1997, among PureTec
Corporation, Plastic Specialties & Technologies, Inc., Tekni-Plex, Inc. and P.T.
Holding, Inc.

                  5. If any term or provision of this Agreement is held to be
invalid or unenforceable, the remaining portions of this Agreement will continue
to be valid and will be performed, construed and enforced to the fullest extent
permitted by law, and the invalid or unenforceable term will be deemed amended
and limited in accordance with the intent of the parties, as determined from the
face of the Agreement, to the extent necessary to permit the maximum
enforceability or validation of the term or provision.


                  6. This Agreement constitutes and contains the entire
agreement and understanding between the parties and supersedes and replaces all
prior negotiations and agreements proposed or otherwise, whether written or
oral, concerning the subject matter of this Agreement. This is an integrated
document.

                  7. The provisions of this Agreement shall continue to be fully
effective and enforceable even if an event occurs after the effective date of
the Agreement that causes Employee to cease being eligible for benefits under
the Plan.

                  8. Any claim, dispute or disagreement between Employee,
Employer or Tekni-Plex, whether or not arising out of the terms of this
Agreement, Employee's employment, termination of employment, or otherwise, that
the Employer or Tekni-Plex, or both, may have against Employee, or that Employee
may have against the Employer or 


                                        3

<PAGE>

against Tekni-Plex, the shareholders, officers, directors, employees, agents or
any other representatives of any of the foregoing (a "Claim"), shall be resolved
in accordance with the procedure set forth below.

                  9. THE SOLE AND EXCLUSIVE METHOD TO RESOLVE ANY CLAIM IS
MEDIATION AND/OR ARBITRATION AS PROVIDED IN THIS AGREEMENT. EACH PARTY WAIVES
THE RIGHT TO A JURY TRIAL OR COURT TRIAL. Neither party shall initiate or
prosecute any lawsuit in any way related to any Claim covered by this Agreement.

                  10. A Claim may be submitted first to mediation, which shall
be non-binding and conducted in accordance with the mediation dispute resolution
procedures of the American Arbitration Association ("AAA"). If the mediation
does not result in settlement of the Claim, the aggrieved party may proceed to
arbitration.The mediation or arbitration, or both, will occur in the county
where employee works. The arbitration shall be conducted in accordance with the
then-current National Rules for the Resolution of Employment Disputes of the AAA
before a single arbitrator. The determination of the arbitrator shall be
conclusive and binding on the parties, and judgment may be entered on the
arbitrator's award in any court of competent jurisdiction.

                  11. The prevailing party shall be entitled to reasonable
attorneys' fees, in addition to all costs and necessary disbursements.

                  12. The date indicated below and Employee's signature below
acknowledge Employee's review, understanding and full, knowing and voluntary
acceptance of the terms and conditions set forth in this Agreement.


                            INTENTIONALLY LEFT BLANK




                                        4

<PAGE>



                  NOTICE: BY SIGNING THIS AGREEMENT, YOU ARE
                  AGREEING THAT ALL DISPUTES WILL BE DECIDED BY
                  NEUTRAL ARBITRATION, AND YOU ARE GIVING UP YOUR
                  RIGHT TO A JURY TRIAL OR COURT TRIAL
                  (SEE PARAGRAPH 9).


DATE:
      ----------------                               --------------------------
                                                     (Employee Signature)


DATE:
      ----------------                               PureTec Corporation


                                                     By:
                                                         -----------------------


                                        5

<PAGE>




                              ILLNESS/INJURY REPORT


NEW JERSEY LAW REQUIRES THAT YOU REPORT ALL ILLNESSES OR INJURIES TO PURETEC
CORPORATION, IMMEDIATELY. THEREFORE, IF YOU HAD A WORK-RELATED ILLNESS/INJURY
THAT YOU NEGLECTED TO REPORT, PLEASE DO SO NOW SO THAT WE CAN COMPLY WITH NEW
JERSEY LAW.

PLEASE NOTE THAT ANY MEDICAL TREATMENT YOU RECEIVE PRIOR TO NOTIFYING PURETEC
WILL NOT BE PAID FOR BY THE INSURANCE COMPANY AND YOU WILL BE RESPONSIBLE FOR
THE BILLS.


                    ____   Yes, I have an illness/injury to report.
                       
                    ____   No, I do not have an industrial illness/injury to
                           report. Furthermore, I hereby state that: (a) I am
                           presently not ill, injured, or in need of treatment
                           due to an occupational illness/injury and certify
                           that I have reported all work-related illnesses and
                           injuries to the employee; (b) I have not received or
                           sought medical treatment regarding any workrelated
                           activity with PureTec; and (c) I am not ill or
                           injured, and am not in need of treatment.


Employee's signature:
                           -----------------------------
                           
                           -----------------------------
                                (Print/Type Name)

Date:
                           -----------------------------
Witness:
                           -----------------------------


PLEASE NOTE: NEW JERSEY LAW MAKES IT A FELONY TO FILE OR TO HELP
SOMEONE ELSE FILE A FRAUDULENT WORKERS' COMPENSATION CLAIM.
IT IS OUR POLICY TO PROSECUTE ALL SUCH CLAIMS TO THE FULLEST
EXTENT OF THE LAW.





                                    EXHIBIT 3

<PAGE>

                          CERTIFICATE OF NON-REVOCATION
                    OF AGREEMENT FOR SEPARATION OF EMPLOYMENT
                               AND GENERAL RELEASE

                  I hereby certify and represent that seven (7) calendar days
have passed since I signed the Agreement For Separation Of Employment And
General Release ("Agreement") dated             , and that I have NOT exercised
my right to revoke my participation in the Agreement pursuant to the Older
Workers Benefit Protection Act of 1990. I understand that PureTec Corporation,
in providing me with the benefits due to me under the Agreement, is relying on
this Certificate, and that I can no longer revoke the Agreement.

                                            -------------------------
                                            (Employee's Signature)


                                            -------------------------
                                            (Print/Type Name)

                                            Dated:
                                                   ------------------
IMPORTANT:

                  This Certificate should be signed, dated and returned no
                  earlier than on the eighth (8th) calendar day after the
                  employee signs the Agreement.






                                    EXHIBIT 4

<PAGE>


                          Position Responsibility Table

                       For Non-Corporate Office Employees


         Position Title(1)                                  Minimum Weeks


         Chief Operating Officer                            26

         Chief Financial Officer                            26

         Corporate Secretary                                26

         President                                          26

         PureTec Corporation Vice President                 26

         All Other Vice Presidents                          20

         Director                                           20

         General Manager                                    20

         Plant Manager                                      16

         Manager                                            16

         Supervisor                                         12

         Engineer                                           12

         All Other                                           4
                                                       
                  (1)Position held immediately prior to the Effective Date as
defined in Plan.



                                    EXHIBIT 5