Document:

TEKNI-PLEX, INC.

                                  $275,000,000

                   12 3/4% Senior Subordinated Notes due 2010

                               Purchase Agreement

June 15, 2000

J.P. Morgan Securities Inc.
60 Wall Street
New York, New York  10260-0060

Ladies and Gentlemen:

         Tekni-Plex, Inc., a corporation formed under the laws of Delaware (the
"Company"), proposes to issue and sell (the "Offering") to J.P. Morgan
Securities Inc. (the "Initial Purchaser") $275,000,000 principal amount of its
12 3/4% Senior Subordinated Notes due 2010 (the "Notes"). The Notes will be
issued pursuant to the provisions of an Indenture to be dated as of June 21,
2000 (the "Indenture") among the Company, the Guarantors (as defined) and HSBC
Bank USA, as trustee (the "Trustee"). The Notes will be guaranteed (the
"Guarantee" and, collectively with the Notes, the "Securities") on a senior
subordinated basis by each of the domestic subsidiaries of the Company listed on
Schedule A attached hereto (the "Guarantors").

         The sale of the Securities to the Initial Purchaser will be made
without registration of the Securities under the Securities Act of 1933, as
amended (the "Act" or the "Securities Act"), in reliance upon the exemption
therefrom provided by Section 4(2) of the Act. Holders of the Securities will
have the benefits of a Registration Rights Agreement to be dated as of June 21,
2000 among the Company, the Guarantors and the Initial Purchaser, substantially
in the form attached hereto as Exhibit A (the "Registration Rights Agreement")
pursuant to which the Issuers will agree to file with the Securities and
Exchange Commission (the "Commission") (i) a registration statement under the
Securities Act (the "Exchange Registration Statement") registering an issue of
senior subordinated notes of the Company which are identical in all material
respects to the Securities (except that the Exchange Notes will not contain
terms with respect to transfer restrictions or liquidated damages) (such notes,
together with any Private Exchange Securities (as defined in the Registration
Rights Agreement), are referred to herein as the "Exchange Notes") and (ii)
under certain limited circumstances, a shelf registration statement with respect
to the resale of the Securities pursuant to Rule 415 under the Securities Act
(the "Shelf Registration Statement"). This Agreement, the Indenture, the Notes,
the Exchange Notes and the Registration Rights Agreement and the Guarantees are
collectively referred to herein as the "Offering Agreements."
<PAGE>

         The Securities are being sold in connection with (i) the
recapitalization of the Company (the "Recapitalization"), pursuant to a
recapitalization agreement (together with all exhibits thereto and related
documents and agreements, the "Recapitalization Agreement") dated as of April
12, 2000 among the Company, and the parties named on the signature pages
attached thereto, (ii) the execution of a Credit Agreement (together with all
exhibits thereto and related documents and agreements, the "Credit Agreement")
providing for a $100.0 million term loan facility (the "A Term Loan Facility"),
a $244.0 million term loan facility (the "B Term Loan Facility" and, together
with the A Term Loan Facility, the "Term Loan Facilities") and a $100.0 million
revolving credit facility (the "Revolving Credit Facility" and together with the
Term Loan Facilities, the "Bank Financing") and (iii) the consent solicitations
and tender offers (the "Debt Tender Offers") by the Company for all of its
outstanding 11 1/4% Senior Subordinated Notes due 2007 (the "11 1/4% Notes") and
all of its outstanding 9 1/4% Senior Subordinated Notes due 2008 (the "9 1/4%
Notes" and, together with the 11 1/4% Notes, the "Retired Notes") pursuant to an
offer to purchase and consent solicitation statement (the "Offer to Purchase"
and, together with all related documents and agreements, including but not
limited to the Dealer Manager Agreement dated as of May 19, 2000 between the
Company and the Initial Purchaser and the Supplemental Indentures (as defined
below), the "Tender Offer Documents"). In connection with the Recapitalization,
(w) Tekni-Plex Partners LLC will contribute not less than $47.0 million to the
Company (the "Equity Contribution"), (x) the Company will purchase shares of its
common stock from certain investors holding through MST/TP Partners, L.P. (the
"Repurchase"), (y) the Company will repay substantially all of its outstanding
debt under its existing credit facility (the "Refinancing") and (z) pursuant to
the Debt Tender Offers, the Company will accept for payment and purchase not
less than a majority of each issue of Retired Notes and amend the indenture
governing each issue of Retired Notes (the "Old Indentures") to delete or amend
such provisions as the Company requires and execute and deliver supplemental
indentures to effect such amendments (the "Supplemental Indentures"). The
Recapitalization, the Equity Contribution, the Repurchase, the Bank Financing,
the Debt Tender Offers and the Refinancing are collectively referred to herein
as the "Transactions." The Recapitalization Agreement, the Credit Agreement and
the Tender Offer Documents are referred to herein as the "Transaction
Documents."

         The Company and the Guarantors hereby agree, jointly and severally,
with the Initial Purchaser as follows:

         1. The Company agrees to issue and sell the Notes and the Guarantors
agree to issue the Guarantees to the Initial Purchaser as hereinafter provided,
and the Initial Purchaser, upon the basis of the representations and warranties
herein contained, but subject to the conditions hereinafter stated, agrees to
purchase from the Company all of the Securities at a price (the "Purchase
Price") equal to 95.88% of their principal amount. No additional consideration
shall be paid by the Initial Purchaser for the Guarantee.

         2. The Company and the Guarantors understand that the Initial Purchaser
intends (x) to offer privately the Securities as soon after this Agreement has
become effective as in the

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<PAGE>

judgment of the Initial Purchaser is advisable and (y) initially to offer the
Securities upon the terms set forth in the Offering Memorandum (as defined
below).

         The Company and the Guarantors confirm that they have authorized the
Initial Purchaser, subject to the restrictions set forth below, to distribute
copies of the Offering Memorandum in connection with the offering of the
Securities. The Initial Purchaser hereby makes to the Company and the Guarantors
the following representations and agreements:

               (i) it is a qualified institutional buyer within the meaning of
          Rule 144A under the Act; and

               (ii) (A) it will not solicit offers for, or offer to sell, the
          Securities by any form of general solicitation or general advertising
          (as those terms are used in Regulation D under the Act) or in any
          manner involving a public offering within the meaning of Section 4(2)
          of the Act, (B) it will solicit offers for the Securities only from,
          and will offer, sell or deliver the Securities only to, (1) persons
          whom it reasonably believes to be "qualified institutional buyers"
          within the meaning of Rule 144A under the Act to whom notice has been
          given that such offer, sale or delivery is being made in reliance on
          Rule 144A in transactions under Rule 144A or (2) upon the terms and
          conditions set forth in Annex I to this Agreement, and (C) it is not
          purchasing with a view to or for offer or sale in connection with any
          distribution that would be in violation of federal or state law.

         3. Payment for the Securities shall be made by wire transfer in
immediately available funds, to the account specified by the Company to the
Initial Purchaser no later than noon on the Business Day (as defined below)
prior to the Closing Date (as defined below), on June 21, 2000, or at such other
time on the same or such other date, not later than the fifth Business Day
thereafter, as the Initial Purchaser and the Company may agree upon in writing.
The time and date of such payment are referred to herein as the "Closing Date".
As used herein, the term "Business Day" means any day other than a day on which
banks are permitted or required to be closed in New York City.

         Payment for the Securities shall be made against delivery to the
nominee of The Depository Trust Company for the account of the Initial Purchaser
of one or more global notes representing the Securities (collectively, the
"Global Notes"), with any transfer taxes payable in connection with the transfer
to the Initial Purchaser of the Securities duly paid by the Company. The Global
Notes will be made available for inspection by the Initial Purchaser at the
office of J.P. Morgan Securities Inc. at the address set forth above, or at such
other location as the Company and the Initial Purchaser agree, not later than
1:00 P.M., New York City time, on the Business Day prior to the Closing Date.

         4. Each of the Company and each Guarantor represents and warrants to
the Initial Purchaser that:

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<PAGE>

          (a) a preliminary offering memorandum, dated June 2, 2000 (the
     "Preliminary Offering Memorandum") and an offering memorandum, dated June
     15, 2000 (the "Offering Memorandum") have been prepared in connection with
     the offering of the Securities. Any reference to the Preliminary Offering
     Memorandum or the Offering Memorandum shall be deemed to refer to and
     include any Rule 144A(d)(4) Information (as defined in Section 5(m))
     furnished by the Company prior to the completion of the distribution of the
     Securities. The Preliminary Offering Memorandum or the Offering Memorandum
     and any amendments or supplements thereto did not and will not, as of their
     respective dates, contain an untrue statement of a material fact or omit to
     state a material fact necessary in order to make the statements therein, in
     the light of the circumstances under which they were made, not misleading;
     provided that this representation and warranty does not apply to statements
     or omissions made in reliance upon and in conformity with information
     furnished in writing by the Initial Purchaser relating to the Initial
     Purchaser to the Company expressly for use in the Preliminary Offering
     Memorandum, the Offering Memorandum or any amendment or supplement thereto;

          (b) the financial statements, and the related notes thereto, included
     in the Offering Memorandum present fairly the consolidated financial
     position of each of the Company and its consolidated subsidiaries and of
     PureTec Corporation and its consolidated subsidiaries, as of the dates
     indicated and the results of their operations and the changes in their
     consolidated cash flows for the periods specified; said financial
     statements have been prepared in conformity with generally accepted
     accounting principles and practices applied on a consistent basis; and the
     pro forma financial information, and the related notes thereto, included in
     the Offering Memorandum are based upon good faith estimates and assumptions
     believed by the Company to be reasonable;

          (c) since the respective dates as of which information is given in the
     Offering Memorandum, except as otherwise stated therein, there has not been
     any material change in the capital stock or long-term debt of the Company
     or the Subsidiaries (as defined below), or any material adverse change, or
     any development involving a prospective material adverse change, in or
     affecting the business, condition (financial or other), results of
     operations or prospects of the Company and the Subsidiaries, taken as a
     whole (a "Material Adverse Change" or "Prospective Material Adverse
     Change", respectively), otherwise than as set forth or contemplated in the
     Offering Memorandum; and except as set forth or contemplated in the
     Offering Memorandum, neither the Company, nor any of the Subsidiaries, has
     entered into any transaction or agreement (whether or not in the ordinary
     course of business) material to the Company and the Subsidiaries, taken as
     a whole;

          (d) the Company has been duly incorporated and is validly existing as
     a corporation under the laws of its jurisdiction of incorporation, with
     power and authority (corporate and other) to own its properties and conduct
     its business as described in

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<PAGE>

     the Offering Memorandum, and has been duly qualified as a foreign
     corporation for the transaction of business and is in good standing under
     the laws of each other jurisdiction in which it owns or leases properties,
     or conducts any business, so as to require such qualification, other than
     where the failure to be so qualified or in good standing would not have a
     material adverse effect on the business, condition (financial or other),
     results of operations or prospects of the Company and the Subsidiaries,
     taken as a whole (a "Material Adverse Effect"); the authorized, issued and
     outstanding capital stock of the Company, prior to the Recapitalization is,
     and after giving effect to the Recapitalization will be, as set forth in
     the Offering Memorandum, and is, or after giving effect to the
     Recapitalization will be, owned by the persons and in the amounts as set
     forth therein; the shares of issued and outstanding capital stock of the
     Company have been duly authorized and validly issued and are fully paid and
     non-assessable; none of the outstanding shares of capital stock of the
     Company was issued in violation of any preemptive or other similar rights;
     the respective percentage equity interests of investors in MST/TP Partners
     LLC and Tekni-Plex Partners LLC, after giving effect to the
     Recapitalization, will be as set forth in the Offering Memorandum;

          (e) the Company has no subsidiaries other than those set forth on
     Schedule A attached hereto (each a "Subsidiary" and together, the
     "Subsidiaries"); each of the Subsidiaries has been duly incorporated and,
     unless otherwise indicated on Schedule A, is validly existing as a
     corporation under the laws of its jurisdiction of incorporation, with power
     and authority (corporate and other) to own its properties and conduct its
     business as described in the Offering Memorandum, and has been duly
     qualified as a foreign corporation for the transaction of business and is
     in good standing under the laws of each jurisdiction in which its owns or
     leases properties or conducts any business, so as to require such
     qualification, other than where the failure to be so qualified or in good
     standing would not have a Material Adverse Effect; and all the outstanding
     shares of capital stock of the Subsidiaries has been duly authorized and
     validly issued, are fully-paid and non-assessable under the corporate laws
     of the jurisdiction of incorporation, and (except as described in the
     Offering Memorandum) owned by the Company free and clear of all liens,
     encumbrances, security interests and claims;

          (f) this Agreement has been duly authorized, executed and delivered by
     the Company and the Guarantors and (assuming the due authorization,
     execution and delivery by the Initial Purchaser) will constitute a valid
     agreement of the Company and the Guarantors and, subject to (i) the effect
     of applicable bankruptcy, insolvency, reorganization, moratorium,
     fraudulent conveyance and other laws affecting creditors' rights generally,
     (ii) general principles of equity and (iii) principles of public policy
     limiting the rights to enforce indemnification provisions (clauses (i),
     (ii) and (ii) being referred to herein as the "Creditors' Rights
     Limitations"), will be binding and will be enforceable in accordance with
     its terms; and will conform, in all material respects, to the description
     thereof in the Offering Memorandum;

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<PAGE>

          (g) the Registration Rights Agreement has been duly authorized by each
     of the Company and the Guarantors, and when executed and delivered by them
     and (assuming the due authorization, execution and delivery by the Initial
     Purchaser) will constitute a valid agreement of the Company and the
     Guarantors and, subject to the Creditors' Rights Limitations, will be
     binding and will be enforceable in accordance with its terms; and will
     conform, in all material respects, to the description thereof in the
     Offering Memorandum;

          (h) the Notes and the Exchange Notes have been duly authorized by the
     Company, and when issued and delivered pursuant to this Agreement (and the
     Registration Rights Agreement in the case of the Exchange Notes), will have
     been duly executed, issued and delivered and, when the Notes and the
     Exchange Notes are authenticated by the Trustee in accordance with the
     terms of the Indenture (assuming the due authorization, execution and
     delivery by the Trustee) and are delivered to and paid for by the Initial
     Purchaser in accordance with the terms of this Agreement (and the
     Registration Rights Agreement in the case of the Exchange Notes), will
     constitute valid obligations of the Company entitled to the benefits
     provided by the Indenture and, subject to the Creditors' Rights
     Limitations, will be binding and will be enforceable in accordance with
     their terms; and the Securities will conform, in all material respects, to
     the descriptions thereof in the Offering Memorandum;

          (i) the Guarantees have been duly authorized by the Guarantors, and
     when the Notes or Exchange Notes, as the case may be, are issued and
     delivered pursuant to this Agreement (and the Registration Rights Agreement
     in the case of the Exchange Notes), will have been duly executed and
     delivered and, when the Notes or Exchange Notes, as the case may be, are
     authenticated by the Trustee in accordance with the terms of the Indenture
     (assuming the due authorization, execution and delivery by the Trustee) and
     are delivered to and paid for by the Initial Purchaser in accordance with
     the terms of this Agreement (and the Registration Rights Agreement in the
     case of the Exchange Notes), will constitute a valid obligation of the
     Guarantors and, subject to the Creditors' Rights Limitations, will be
     binding and will be enforceable in accordance with its terms;

          (j) the Indenture has been duly authorized by the Company and the
     Guarantors and, when executed and delivered by each of the Company and the
     Guarantors (assuming the due authorization, execution and delivery by the
     Trustee), the Indenture will constitute a valid instrument of the Company
     and each such Guarantor and, subject to the Creditors' Rights Limitations,
     will be binding and will be enforceable in accordance with its terms; and
     the Indenture will conform, in all material respects, to the descriptions
     thereof in the Offering Memorandum;

          (k) the Company and the Guarantors have the corporate power and
     authority to execute and deliver the Transaction Documents (to the extent
     each is a party thereto) and to perform their respective obligations,
     thereunder; all action to be taken

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<PAGE>

     by the Company and the Guarantors for the due and proper authorization,
     execution and delivery of each of the Transaction Documents to which it is
     a party and the consummation of the transactions contemplated thereby will
     have been duly and validly taken as of the Closing Date; each of the
     Transaction Documents has been duly authorized by the Company and the
     Guarantors to the extent that each is a party thereto and when executed and
     delivered by each of the parties thereto, each of the Transaction Documents
     will constitute a valid instrument or agreement of each of the Company and
     the Guarantors, as the case may be to the extent they are a party thereto,
     and subject to the Creditors' Rights Limitations, will be binding and
     enforceable in accordance with its terms; and the Transaction Documents
     conform, in all material respects, to the descriptions thereof in the
     Offering Memorandum;

          (l) none of the transactions contemplated by this Agreement
     (including, without limitation, the use of the proceeds from the sale of
     the Securities) will violate or result in a violation of Section 7 of the
     Securities Exchange Act of 1934, as amended (the "Exchange Act"), or any
     regulation promulgated thereunder, including, without limitation,
     Regulations T, U, and X of the Board of Governors of the Federal Reserve
     System;

          (m) neither the Company nor any Subsidiary is, or with the giving of
     notice or lapse of time or both would be, in violation of or in default
     under its Certificate of Incorporation or By-Laws (or similar
     organizational documents) or any indenture, mortgage, deed of trust, loan
     agreement or other agreement or instrument to which it is a party or by
     which it or any of its properties is bound, except for violations and
     defaults which individually and in the aggregate would not have a Material
     Adverse Effect or are not material to the holders of the Securities as
     such; the issue and sale of the Securities and the performance by each of
     the Company and the Guarantors of all of the provisions of their
     obligations under the Offering Agreements and the Transaction Documents and
     the consummation of the transactions herein and therein contemplated will
     not conflict with or result in a breach of any of the terms or provisions
     of, or constitute a default under, any indenture, mortgage, deed of trust,
     loan agreement or other agreement or instrument to which the Company or any
     Guarantor is a party or by which the Company or any Guarantor is bound or
     to which any of the property or assets of the Company or any Guarantor is
     subject, except such as would not have a Material Adverse Effect, nor will
     any such action result in any violation of the provisions of the
     Certificate of Incorporation or By-Laws of the Company or any Guarantor or
     (assuming the accuracy of the representations by, and compliance with the
     agreements of, the Initial Purchaser set forth in paragraph 2 of this
     Agreement) any applicable law or statute or any order, rule or regulation
     of any court or governmental agency or body having jurisdiction over the
     Company, any Guarantor or any of their respective properties; and no
     consent, approval, authorization, order, license, registration or
     qualification of or with any such court or governmental agency or body is
     required for the issue and sale of the Securities or the consummation by
     the Company or any Guarantor of the transactions contemplated by the
     Offering Agreements and the Transaction Docu-

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<PAGE>

     ments, except such consents, approvals, authorizations, registrations or
     qualifications as may be required under any state securities or Blue Sky
     Laws in connection with the purchase and distribution of the Securities by
     the Initial Purchaser and except as such as would not have a Material
     Adverse Effect;

          (n) other than as set forth or contemplated in the Offering
     Memorandum, there are no legal or governmental investigations, actions,
     suits or proceedings pending or, to the knowledge of the Company,
     threatened against or affecting the Company or any Subsidiary or any of
     their respective properties or to which the Company or any Subsidiary is or
     may be a party or to which any property of the Company or any Subsidiary is
     or may be the subject which could individually or in the aggregate have, or
     reasonably be expected to have, a Material Adverse Effect and, to the best
     of the Company's knowledge, no such proceedings are threatened or
     contemplated by governmental authorities or threatened by others;

          (o) neither the Company nor any affiliate (as defined in Rule 501(b)
     of Regulation D under the Act ("Regulation D")) of the Company has
     directly, or through any agent, sold, offered for sale, solicited offers to
     buy or otherwise negotiated in respect of, any security (as defined in the
     Act) which is or will be integrated with the sale of the Securities in a
     manner that would require the registration under the Act of the offering
     contemplated by the Offering Memorandum;

          (p) neither the Company, the Guarantors nor any person (other than the
     Initial Purchaser, as to which the Company makes no representation) acting
     on their behalf has offered or sold the Securities by means of any general
     solicitation or general advertising within the meaning of Rule 502(c) under
     the Act or, with respect to Securities sold outside the United States to
     non-U.S. persons (as defined in Rule 902 under the Act), by means of any
     directed selling efforts within the meaning of Rule 902 under the Act and
     the Company, the Guarantors and any of their affiliates and any person
     (other than the Initial Purchaser) acting on their behalf has complied with
     and will implement the "offering restriction" within the meaning of such
     Rule 902;

          (q) the Company is not, and will not be after giving effect to the
     offering and sale of the Securities to be sold and the application of the
     proceeds from such sale (as described in the Offering Memorandum under the
     caption "Use of Proceeds"), an "investment company" as such term is defined
     in the Investment Company Act of 1940, as amended;

          (r) assuming that the representations of the Initial Purchaser set
     forth in paragraph 2 of this Agreement are true, correct and complete and
     assuming compliance by the Initial Purchaser with its agreements in
     paragraph 2 of this Agreement, it is not necessary in connection with the
     offer, sale and delivery of the Securities in the manner contemplated by
     this Agreement to register the Securities under the Act or to qualify an
     indenture under the Trust Indenture Act of 1939, as amended (the "TIA");

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<PAGE>

          (s) the Securities satisfy the requirements set forth in Rule
     144A(d)(3) under the Act;

          (t) BDO Seidman, LLP, who has certified certain financial statements
     of the Company and its subsidiaries and Deloitte and Touche LLP who has
     certified certain financial statements of PureTec Corporation and its
     subsidiaries, are independent public accountants as required by the Act;

          (u) the Company and the Subsidiaries have good and marketable title in
     fee simple to all material items of real property and good and marketable
     title to all material personal property owned by them, in each case free
     and clear of all liens, encumbrances and defects except such as are
     otherwise described or referred to in the Offering Memorandum or such as do
     not interfere with the use made or proposed to be made of such property by
     the Company and the Subsidiaries; and any real property and buildings held
     under lease by the Company or the Subsidiaries are held by them under
     valid, existing and enforceable leases (subject to the Creditors' Rights
     Limitations) with such exceptions as are not material and do not interfere
     with the use made or proposed to be made of such property and buildings by
     the Company or the Subsidiaries. The Company and the Subsidiaries own or
     possess, or have no reason to believe they cannot acquire on reasonable
     terms, adequate licenses or other rights to use all patents, trademarks,
     service marks, trade names, copyrights and know-how necessary to conduct
     the businesses now or proposed to be operated by them as described in the
     Offering Memorandum, except where the failure to own, possess or have the
     ability to acquire any such licenses or other rights could not,
     individually or in the aggregate, be reasonably expected to have a Material
     Adverse Effect, and neither the Company nor any Subsidiary has received any
     written or, to the best knowledge of the Company, oral notice of
     infringement of or conflict with asserted rights of others with respect to
     any patents, trademarks, service marks, trade names, copyrights or know-how
     which, if such assertion of infringement or conflict were sustained, would
     have a Material Adverse Effect;

          (v) the Company and the Subsidiaries have filed all federal, state,
     local and foreign tax returns which have been required to be filed and have
     paid all taxes shown thereon and all assessments received by them or any of
     them to the extent that such taxes have become due and are not being
     contested in good faith except in any case where the failure to file or pay
     would not individually or in the aggregate have a Material Adverse Effect,
     and, except as disclosed in the Offering Memorandum, the Company has no
     knowledge of any material tax deficiency which has been or might reasonably
     be expected to be asserted or threatened against the Company;

          (w) each of the Company and each Subsidiary owns, possesses or has
     obtained all material licenses, permits, certificates, consents, orders,
     approvals and other authorizations from, and has made all declarations and
     filings with, all federal, state, local and other governmental authorities
     (including foreign regulatory agencies), all

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<PAGE>

     self-regulatory organizations and all courts and other tribunals, domestic
     or foreign, necessary to own or lease, as the case may be, and to operate
     its properties and to carry on its business as conducted as of the date
     hereof, except to the extent that the failure to so obtain or file,
     individually or in the aggregate, could not reasonably be expected to have
     a Material Adverse Effect, and neither the Company nor any Subsidiary has
     received any actual notice, or is not aware, of any proceeding relating to
     revocation or modification of any such license, permit, certificate,
     consent, order, approval or other authorization, except as described in the
     Offering Memorandum; and each of the Company and each Subsidiary is in
     compliance with all laws and regulations relating to the conduct of its
     business as of the date hereof;

          (x) there are no existing or, to the best knowledge of the Company,
     threatened labor disputes with the employees of the Company and the
     Subsidiaries which are likely to have a Material Adverse Effect;

          (y) each of the Company and each Subsidiary (i) is in compliance with
     any and all applicable federal, state and local laws and regulations
     relating to the protection of human health and safety, the environment or
     hazardous or toxic substances or wastes, pollutants or contaminants
     ("Environmental Laws"), (ii) has received all permits, licenses or other
     approvals required of it under applicable Environmental Laws to conduct its
     business and (iii) is in compliance or is in the process of complying with
     all terms and conditions of any such permit, license or approval, except
     where such noncompliance with Environmental Laws, failure to receive
     required permits, licenses or other approvals or failure to comply with the
     terms and conditions of such permits, licenses or approvals would not,
     individually or in the aggregate, reasonably be expected to have a Material
     Adverse Effect; associated costs and liabilities (including, without
     limitation, any capital or operating expenditures required for clean-up,
     closure of properties or compliance with Environmental Laws or any permit,
     license or approval, any related constraints on operating activities and
     any potential liabilities to third parties) would not, individually or in
     the aggregate, reasonably be expected to have a Material Adverse Effect;
     and

          (z) each employee benefit plan, within the meaning of Section 3(3) of
     the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
     that is maintained, administered or contributed to by the Company or any
     affiliates of the Company for employees or former employees of the Company
     and its affiliates has been maintained, in all material respects, in
     compliance with its terms and the requirements of any applicable statutes,
     orders, rules and regulations, including but not limited to ERISA and the
     Internal Revenue Code of 1986, as amended (the "Code"); no prohibited
     transaction, within the meaning of Section 406 of ERISA or Section 4975 of
     the Code has occurred with respect to any such plan excluding transactions
     effected pursuant to a statutory or administrative exemption and excluding
     transactions which would not have a Material Adverse Effect; and for each
     such plan which is subject to the funding rules of Section 412 of the Code
     or Section 302 of ERISA no "ac-

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<PAGE>

     cumulated funding deficiency" as defined in Section 412 of the Code has
     been incurred, whether or not waived, and the fair market value of the
     assets of each such plan which is subject to Title IV of ERISA (excluding
     for these purposes accrued but unpaid contributions) exceeded the present
     value of all benefits accrued under such plan as determined using
     reasonable actuarial assumptions.

         5. Each of the Company and each Guarantor covenants and agrees with the
Initial Purchaser as follows:

          (a) before distributing any amendment or supplement to the Offering
     Memorandum, to furnish to the Initial Purchaser a copy of the proposed
     amendment or supplement for review and not to distribute any such proposed
     amendment or supplement to which the Initial Purchaser reasonably objects;

          (b) if, at any time prior to the completion of the initial placement
     of the Securities, any event shall occur as a result of which it is
     necessary to amend or supplement the Offering Memorandum in order that the
     Offering Memorandum does not contain an untrue statement of a material fact
     or omit to state a material fact necessary in order to make the statements
     therein, in the light of the circumstances when the Offering Memorandum is
     delivered to a purchaser, not misleading, or if it is necessary to amend or
     supplement the Offering Memorandum to comply with law, forthwith to prepare
     and furnish, at the expense of the Company, to the Initial Purchaser and to
     the dealers (whose names and addresses the Initial Purchaser will furnish
     to the Company) to which Securities may have been sold by the Initial
     Purchaser on behalf of the Initial Purchaser and to any other dealers upon
     request, such amendments or supplements to the Offering Memorandum as may
     be necessary so that the Offering Memorandum as so amended or supplemented
     will not contain an untrue statement of a material fact or omit to state a
     material fact necessary in order to make the statements therein, in the
     light of the circumstances when the Offering Memorandum is delivered to a
     purchaser, not misleading or so that the Offering Memorandum will comply
     with law;

          (c) to cooperate with you and your counsel in connection with the
     registration or qualification of the Securities for offering and sale by
     the Initial Purchaser and by dealers under the securities or Blue Sky laws
     of such jurisdictions as you may designate and will file such consents to
     service of process or other documents necessary or appropriate in order to
     effect such registration or qualification; provided that in no event shall
     the Company or the Guarantors be obligated to qualify to do business in any
     jurisdiction where it is not now so qualified or to take any action that
     would subject it to taxation or service of process in suits, other than
     those arising out of the Offering or sale of the Securities, in any
     jurisdiction where it is not now so subject;

          (d) so long as the Securities are outstanding, to furnish to the
     Initial Purchaser copies of all reports or other communications (financial
     or other) furnished to

                                       11
<PAGE>

     holders of Securities, and copies of any reports and financial statements
     furnished to or filed with the Commission or any national securities
     exchange;

          (e) during the period beginning on the date hereof and continuing to
     and including the Business Day following the Closing Date, not to offer,
     sell, contract to sell, or otherwise dispose of any debt securities of or
     guaranteed by the Company or the Guarantors which are substantially similar
     to the Securities;

          (f) to use the net proceeds received by the Company from the sale of
     the Securities pursuant to this Agreement in the manner specified in the
     Offering Memorandum under the caption "Use of Proceeds";

          (g) if requested by you, to use its best efforts to cause such
     Securities to be eligible for the PORTAL trading system of the National
     Association of Securities Dealer, Inc.;

          (h) to furnish to the holders of the Securities as soon as practicable
     after the end of each fiscal year an annual report (including a balance
     sheet and statements of income, stockholders' equity and cash flows of the
     Company and the Subsidiaries certified by independent public accountants)
     and, as soon as practicable after the end of each of the first three
     quarters of each fiscal year (beginning with the fiscal quarter ending
     after the date of the Offering Memorandum), consolidated summary financial
     information of the Company and the Subsidiaries of such quarter in
     reasonable detail;

          (i) during the period of two years after the Closing Date, not to, and
     to use its best efforts not to permit any of its "affiliates" (as defined
     in Rule 144 under the Act) to, resell any of the Securities which
     constitute "restricted securities" under Rule 144 that have been reacquired
     by any of them;

          (j) whether or not the transactions contemplated by this Agreement are
     consummated or this Agreement is terminated and in addition to any
     obligations they may have under any other agreements with you and/or your
     affiliates, to pay or cause to be paid all costs and expenses incident to
     the performance of their obligations hereunder, including without limiting
     the generality of the foregoing, all costs and expenses (i) incident to the
     preparation, issuance, execution, authentication and delivery of the
     Securities, including any expenses of the Trustee, (ii) incident to the
     preparation, printing and distribution of the Offering Memorandum and any
     preliminary offering memorandum (including in each case all exhibits,
     amendments and supplements thereto), (iii) incurred in connection with the
     registration or qualification and determination of eligibility for
     investment of the Securities under the laws of such jurisdictions as the
     Initial Purchaser may designate (including fees of counsel for the Initial
     Purchaser and their disbursements), (iv) in connection with the application
     for eligibility for trading of the Securities in the PORTAL trading system,
     (v) in connection with the printing (including word processing and
     duplication costs) and delivery of this

                                       12
<PAGE>

     Agreement, the Indenture, the Registration Rights Agreement, the
     Preliminary and Supplemental Blue Sky Memoranda and any Legal Investment
     Survey and the furnishing to the Initial Purchaser and dealers of copies of
     the Offering Memorandum, including mailing and shipping, as herein
     provided, (vi) payable to rating agencies in connection with the rating of
     the Securities, and (vii) incurred by the Company in connection with a
     "road show" presentation to potential investors;

          (k) to take all reasonable action that is appropriate or necessary to
     assure that its offerings of other securities will not be integrated for
     purposes of the Act with the offerings contemplated hereby;

          (l) not to solicit any offer to buy or offer to sell Securities by
     means of any form of general solicitation or general advertising within the
     meaning of Rule 502(c) of Regulation D under the Act;

          (m) while the Securities remain outstanding and are "restricted
     securities" within the meaning of Rule 144(a)(3) under the Act, during any
     period in which it is not subject to Section 13 or 15(d) under the Exchange
     Act, to make available to the Initial Purchaser and any holder of
     Securities in connection with any sale thereof and any prospective
     purchaser of Securities, in each case upon request, the information
     specified in, and meeting the requirements of, Rule 144A(d)(4) ("Rule
     144A(d)(4) Information") under the Act (or any successor thereto); and

          (n) not to take any action prohibited by Regulation M under the
     Exchange Act (or any successor provision), in connection with the
     distribution of the Securities contemplated hereby.

         6. The obligations of the Initial Purchaser hereunder to purchase the
Securities on the Closing Date are subject to the performance, in all material
respects, by each of the Company and the Guarantors of their obligations
hereunder and to the following additional conditions:

          (a) the representations and warranties of each of the Company and the
     Guarantors contained herein are true and correct on and as of the Closing
     Date as if made on and as of the Closing Date and each of the Company and
     the Guarantors shall have complied, in all material respects, with all
     agreements and all conditions on its part to be performed or satisfied
     hereunder at or prior to the Closing Date;

          (b) subsequent to the execution and delivery of this Agreement and
     prior to the Closing Date, there shall not have occurred any downgrading,
     nor shall any notice have been given of (i) any downgrading, (ii) any
     intended or potential downgrading or (iii) any review or possible change
     that does not indicate an improvement, in the rating accorded any
     securities of or guaranteed by the Company by any "nationally recog-

                                       13
<PAGE>

     nized statistical rating organization", as such term is defined for
     purposes of Rule 436(g)(2) under the Act;

          (c) since the respective dates as of which information is given in the
     Offering Memorandum, except as otherwise stated therein, there shall not
     have been any material change in the capital stock or long-term debt of any
     of the Company or the Guarantors or any Material Adverse Change, or any
     development involving a Prospective Material Adverse Change, otherwise than
     as set forth or contemplated in the Offering Memorandum, the effect of
     which in the judgment of the Initial Purchaser makes it impracticable or
     inadvisable to proceed with the offering or the delivery of the Securities
     on the Closing Date on the terms and in the manner contemplated in the
     Offering Memorandum; and neither the Company nor the Subsidiaries has
     sustained since the date of the latest audited financial statements
     included in the Offering Memorandum any loss or interference with its
     respective business from fire, flood, hurricane, accident or other
     calamity, whether or not covered by insurance, or from any labor dispute or
     legal or governmental proceeding, which loss or interference, in the
     judgment of the Initial Purchaser, has had or has a Material Adverse
     Effect, otherwise than as set forth or contemplated in the Offering
     Memorandum;

          (d) the Initial Purchaser shall have received on and as of the Closing
     Date a certificate of the Company signed for the Company by an executive
     officer of the Company with specific knowledge about the Company's and
     Guarantors' financial matters, satisfactory to the Initial Purchaser to the
     effect set forth in subsections (a) and (b) of this Section and to the
     further effect that there has not occurred any Material Adverse Change, or
     any development involving a Prospective Material Adverse Change, from those
     set forth or contemplated in the Offering Memorandum;

          (e) Davis Polk & Wardwell, Counsel for the Company, shall have
     furnished to the Initial Purchaser their written opinion, dated the Closing
     Date in form and substance satisfactory to the Initial Purchaser, to the
     effect that:

               (i) the Company has been duly organized and is validly existing
          as a corporation in good standing under the laws of Delaware with the
          corporate power and authority to own its properties and conduct its
          business as described in the Offering Memorandum;

               (ii) each Guarantor organized under the laws of the State of
          Delaware or New York is a corporation validly existing under the laws
          of its jurisdiction of incorporation with power and authority to enter
          into the Offering Agreements;

               (iii) to such counsel's knowledge, other than as set forth or
          contemplated in the Offering Memorandum, there are no legal or
          governmental investigations, actions, suits or proceedings (i) pending
          or threatened against or af-

                                       14
<PAGE>

          fecting the Company or the Subsidiaries or any of their respective
          properties or to which the Company or any Subsidiary is or may be a
          party or to which any property of the Company or any Subsidiary is or
          may be the subject which, if determined adversely to the Company or
          such Subsidiary, could individually or in the aggregate have, or
          reasonably be expected to have, a Material Adverse Effect or (ii)
          which seek to restrain, enjoin, prevent the consummation of or
          otherwise challenge the issuance or sale of the Securities in the
          manner contemplated by the Offering Memorandum or the consummation of
          the Offering or the Transactions; to such counsel's knowledge, no such
          proceedings are threatened by governmental authorities or by others;

               (iv) this Agreement has been duly authorized, executed and
          delivered by each of the Company and each Guarantor organized under
          the laws of the State of Delaware or New York;

               (v) the Registration Rights Agreement has been duly authorized,
          executed and delivered by each of the Company and each Guarantor
          organized under the laws of the State of Delaware or New York and is a
          valid agreement of each of the Company and each such Guarantor and,
          subject to the Creditors' Rights Limitations, is binding and is
          enforceable in accordance with its terms;

               (vi) the Guarantee has been duly authorized, executed and
          delivered by each Guarantor organized under the laws of the State of
          Delaware or New York and, and upon delivery to and payment for the
          Notes by the Initial Purchaser in accordance with the terms of this
          Agreement, will constitute a valid obligation of each such Guarantor
          and, subject to the Creditors' Rights Limitations, is binding and is
          enforceable against each such Guarantor in accordance with its terms;

               (vii) the Notes have been duly authorized, executed and delivered
          by the Company and, when duly authenticated in accordance with the
          terms of the Indenture and delivered to and paid for by the Initial
          Purchaser in accordance with the terms of this Agreement, will
          constitute valid obligations of the Company entitled to the benefits
          provided by the Indenture and, subject to the Creditors' Rights
          Limitations, are binding and are enforceable against the Company in
          accordance with their terms;

               (viii) the Indenture has been duly authorized, executed and
          delivered by the Company and each Guarantor organized under the laws
          of the State of Delaware or New York and (assuming the due
          authorization, execution and delivery by the Trustee) constitutes a
          valid agreement of the Company and each such Guarantor and, subject to
          the Creditors' Rights Limitations, is binding and is enforceable
          against the Company and each such Guarantor, respectively, in
          accordance with its terms;

                                       15
<PAGE>

               (ix) the Transaction Documents have been duly authorized,
          executed and delivered by the Company and each Subsidiary organized
          under the laws of the State of Delaware or New York (to the extent
          such person is a party thereto), and are valid agreements of each of
          the Company and such Subsidiary, as the case may be, and, subject to
          the Creditors' Rights Limitations, the Transaction Documents are
          binding and are enforceable in accordance with their terms;

               (x) The purchase of the Retired Notes pursuant to the Debt Tender
          Offers, and the execution and delivery of, and the consummation by
          Company of the transactions contemplated by the Tender Offer
          Documents, assuming they were undertaken in the manner described
          therein, (i) does not require any filing with the Securities and
          Exchange Commission pursuant to Section 14, Rule 13e-3 or Rule 13e-4
          of the Exchange Act and (ii) will require no material consent,
          authorization, approval, order, exemption, or other action of, or
          filing with, any governmental agency, authority, or instrumentality of
          the United States under the Securities Act, the Exchange Act and the
          TIA.

               (xi) other than the subject matter of subparagraphs (xiii) and
          (xvii), the issue and sale of the Securities and the performance by
          the Company and the Guarantors of their obligations under the
          Securities, the execution and delivery of the Transaction Documents
          and the Offering Agreements and the consummation by the Company and
          the Guarantors of the transactions contemplated hereby and thereby
          will not conflict with or constitute or result in a breach or a
          default under or violation of any of (i) the terms or provisions of
          any indenture, mortgage, deed of trust, loan agreement or other
          material agreement or instrument known to such counsel to which the
          Company or such Guarantor is a party or by which they or any of their
          properties is known by such counsel to be bound except as such as
          would not have a Material Adverse Effect, (ii) the Certificate of
          Incorporation or By-Laws of the Company or such Guarantor, or (iii)
          any applicable federal or New York statute or, to the best of such
          counsel's knowledge, any federal or New York order, rule or regulation
          of any federal or New York governmental agency or body having
          jurisdiction over the Company, the Guarantors or any of their
          respective properties or any judgment, decree or order of any court to
          which the Company or such Guarantor is a named party;

               (xii) other than the subject matter of paragraph (xiii), to their
          knowledge, no consent, approval, authorization, order, license,
          registration or qualification of or with any court or governmental
          agency or body is required for the issue and sale of the Securities or
          the consummation of the other transactions contemplated by this
          Agreement or the Indenture, except as may be required under state
          securities or Blue Sky laws in connection with the purchase and

                                       16
<PAGE>

          distribution of the Securities or the Exchange Notes or the federal
          securities laws with respect to the Exchange Notes;

               (xiii) no registration under the Act of the Securities is
          required in connection with the sale of the Securities to the Initial
          Purchaser as contemplated by this Agreement and the Offering
          Memorandum or in connection with the initial resale of the Securities
          by the Initial Purchaser in accordance with Section 2 (including Annex
          I) of this Agreement, and prior to the commencement of the Exchange
          Offer or the effectiveness of the Shelf Registration Statement, the
          Indenture is not required to be qualified under the TIA, in each case
          assuming (i) that the purchasers who buy the Securities in the initial
          resales are qualified institutional buyers (as defined in Rule 144A
          under the Act) or non-U.S. Persons (as defined in Rule 902 under the
          Act) and (ii) the accuracy of the Initial Purchaser's representations
          and those of the Company and the Guarantors contained in this
          Agreement regarding the absence of a general solicitation in
          connection with the sale of the Securities to the Initial Purchaser
          and the initial resales thereof (it being understood that such counsel
          need express no opinion as to any subsequent resale of any Notes);

               (xiv) the Securities satisfy the requirements set forth in Rule
          144A(d)(3) under the Act;

               (xv) the statements in the Offering Memorandum under "The
          Recapitalization," "Governance of Tekni-Plex," "Certain Transactions
          -- Investors' Agreement" and the first paragraph of "Certain
          Transactions -- Common Stock Purchase Agreement," "Description of
          Notes," and "Certain United States Federal Income Tax Considerations,"
          insofar as such statements constitute a description of the legal
          matters, documents or proceedings referred to therein, fairly present
          the information called for with respect to such legal matters,
          documents or proceedings;

               (xvi) on the basis stated below, no facts have come to the
          attention of such counsel that lead such counsel to believe, except
          for the financial statements, related financial statement schedules,
          and other financial and statistical information contained in the
          Offering Memorandum as to which such counsel expresses no belief, that
          the Offering Memorandum, as of its date of issuance and, as amended or
          supplemented, if applicable, as of the Closing Date, contained an
          untrue statement of a material fact or omitted to state a material
          fact necessary in order to make the statements therein, in the light
          of the circumstances under which they were made, not misleading; and

               (xvii) the Company is not and, after giving effect to the
          offering and sale of the Securities to be sold and the application of
          the proceeds from such sale (as described in the Offering Memorandum
          under the caption "Use of Pro-

                                       17
<PAGE>

          ceeds") will not be, an "investment company" as defined in the
          Investment Company Act of 1940, as amended.

               In rendering such opinions, such counsel may rely (A) as to
          matters involving the application of laws other than the federal laws
          of the United States, the corporate law of the State of Delaware and
          the laws of the State of New York, to the extent such counsel deems
          proper and to the extent specified in such opinion, if at all, upon an
          opinion or opinions (reasonably satisfactory to the Initial
          Purchaser's counsel) of other counsel, reasonably acceptable to the
          Initial Purchaser's counsel, familiar with the applicable laws; and
          (B) as to matters of fact, to the extent such counsel deems proper, on
          the representations and warranties made by the Company and the
          Guarantors herein, and certificates and statements of public officials
          and officers and other representatives of the Company and the
          Guarantors (and such counsel has not independently verified or
          investigated, nor does such counsel assume any responsibility for, the
          factual accuracy or completeness of such representations and
          warranties or certificates or of such factual statements). The opinion
          of such counsel for the Company shall state that the opinion of any
          such other counsel upon which they relied is in form satisfactory to
          such counsel and, in such counsel's opinion, the Initial Purchaser and
          they are justified in relying thereon. With respect to the matters to
          be covered in subparagraph (xvi) above counsel may state that their
          opinion and belief is based upon their participation in the
          preparation of the Offering Memorandum and any amendment or supplement
          thereto, and that since such counsel has not conducted any independent
          investigation with regard to the information set forth in the Offering
          Memorandum and any amendment or supplement thereto, such counsel is
          not passing upon and does not assume any responsibility for the
          accuracy, completeness or fairness of the statements contained therein
          except with respect to the opinions set forth in subparagraph (xv)
          above.

               The opinion of Davis Polk & Wardwell described above shall be
          rendered to the Initial Purchaser at the request of the Company and
          shall so state therein.

               (f) the Company shall have furnished to the Initial Purchaser a
          solvency certificate dated the Closing Date in form and substance
          satisfactory to the Initial Purchaser;

               (g) on the date of the issuance of the Offering Memorandum and
          also on the Closing Date, BDO Seidman, LLP shall have furnished to the
          Initial Purchaser letters, dated the respective dates of delivery
          thereof, in form and substance satisfactory to you, containing
          statements and information of the type customarily included in
          accountants "comfort letters" to underwriters with respect to the
          financial statements and certain financial information contained in
          the Offering Memorandum;

               (h) the Supplemental Indentures shall have been executed and
          delivered by the Company, the Guarantors and the Trustee, the Debt
          Tender Offers shall have been

                                       18
<PAGE>

          consummated and the 11 1/4% Notes and 9 1/4% Notes tendered in the
          Debt Tender Offers shall have been accepted for payment;

               (i) the Company shall have previously executed the Credit
          Agreement (as defined in the Offering Memorandum) in form and
          substance reasonably satisfactory to the Initial Purchaser and shall
          have funds available thereunder as contemplated by the Offering
          Memorandum;

               (j) the Transaction Documents and the Offering Agreements shall
          have been executed and delivered by the Company and the Guarantors to
          the extent that each is a party thereto, the Registration Rights
          Agreement being substantially in the form attached hereto as Annex II;

               (k) (i) all material conditions in the Transaction Documents
          required to be performed on or prior to the Closing Date shall have
          been satisfied and not waived or modified (provided, that the debt
          financing condition contained in Section 6.02(d) of the
          Recapitalization Agreement shall have been waived in a manner
          reasonably satisfactory to the Initial Purchaser), (ii) all covenants
          in the Recapitalization Agreement shall have been satisfied in all
          material respects, (iii) all representations and warranties contained
          in the Transaction Documents shall be true and correct in all material
          respects, (iv) the new equity (including not less than $85.0 million
          of undrawn equity) described in the Offering Memorandum to be
          committed to Tekni-Plex Partners LLC shall have been committed on
          terms reasonably satisfactory to the Initial Purchaser and (v) the
          Equity Contribution shall have been made and the Recapitalization
          shall have been (or shall substantially concurrently be) consummated
          (including, without limitation, the Repurchase);

               (l) the Initial Purchaser shall have received on and as of the
          Closing Date an opinion of Cahill Gordon & Reindel, counsel to the
          Initial Purchaser, with respect to the validity of the Indenture and
          the Securities, and such other related matters as the Initial
          Purchaser may reasonably request, and such counsel shall have received
          such papers and information as they may reasonably request to enable
          them to pass upon such matters; and

               (m) on or prior to the Closing Date, the Company shall have
          furnished to the Initial Purchaser such further certificates and
          documents as the Initial Purchaser shall reasonably request.

         7. Each of the Company and each Guarantor, jointly and severally,
agrees to indemnify and hold harmless the Initial Purchaser, each affiliate of
the Initial Purchaser which assists the Initial Purchaser in the distribution of
the Securities, its officers and directors, and each person, if any, who
controls the Initial Purchaser within the meaning of either Section 15 of the
Act or Section 20 of the Exchange Act, from and against any and all losses,
claims, damages and liabilities (including without limitation the legal fees and
other expenses rea-

                                       19
<PAGE>

sonably incurred in connection with any suit, action or proceeding or any claim
asserted) caused by any untrue statement or alleged untrue statement of a
material fact contained in the Offering Memorandum (and any amendment or
supplement thereto if the Company shall have furnished any amendments or
supplements thereto) or any Preliminary Offering Memorandum, or caused by any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any untrue statement or
omission or alleged untrue statement or omission (i) made in reliance upon and
in conformity with information relating to the Initial Purchaser furnished to
the Company in writing by the Initial Purchaser expressly for use therein or
(ii) contained in the Preliminary Offering Memorandum if the Initial Purchaser
failed to send or deliver a copy of the Offering Memorandum to the person
asserting such losses, claims, damages or liabilities on or prior to the
delivery of written confirmation of sale of the Securities to such person and
such Offering Memorandum would have corrected such untrue statement or omission
and it shall have been determined that such losses, claims, damages or
liabilities would not have arisen had the Offering Memorandum been delivered or
sent.

         The Initial Purchaser agrees to indemnify and hold harmless each of the
Company, the Guarantors, their respective directors and officers and each person
who controls the Company within the meaning of Section 15 of the Act and Section
20 of the Exchange Act, to the same extent as the foregoing indemnity from the
Company to the Initial Purchaser, but only with reference to information
relating to the Initial Purchaser furnished to the Company in writing by the
Initial Purchaser expressly for use in the Offering Memorandum, any amendment or
supplement thereto, or any preliminary offering memorandum.

         If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any person in respect of which indemnity may be sought pursuant to either of the
two preceding paragraphs, such person (the "Indemnified Person") shall promptly
notify the person against whom such indemnity may be sought (the "Indemnifying
Person") in writing, and the Indemnifying Person, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others the
Indemnifying Person may designate in such proceeding and shall pay the fees and
expenses of such counsel related to such proceeding. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Person
unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed in writing to the contrary, (ii) the Indemnifying Person has
failed within a reasonable time to retain counsel reasonably satisfactory to the
Indemnified Person or (iii) the named parties in any such proceeding (including
any impleaded parties) include both the Indemnifying Person and the Indemnified
Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is
understood that the Indemnifying Person shall not, in connection with any
proceeding or related proceeding in the same jurisdiction, be liable for the
fees and expenses of more than one sepa-

                                       20
<PAGE>

rate firm (in addition to any local counsel) for all Indemnified Persons, and
that all such fees and expenses shall be reimbursed as they are incurred. Any
such separate firm for the Initial Purchaser, each affiliate of the Initial
Purchaser which assists the Initial Purchaser in the distribution of the
Securities, its officers and directors and such control persons of the Initial
Purchaser shall be designated in writing by J.P. Morgan Securities Inc. and any
such separate firm for the Company, the Guarantors, their directors, their
officers and such control persons of the Company shall be designated in writing
by the Company. The Indemnifying Person shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the Indemnifying
Person agrees to indemnify any Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding the
foregoing sentence, if at any time an Indemnified Person shall have requested in
writing to the chief legal officer or, if no chief legal officer exists, to the
chief executive officer of the Indemnifying Person to reimburse the Indemnified
Person for fees and expenses of counsel as contemplated by the third sentence of
this paragraph, the Indemnifying Person agrees that it shall be liable for any
settlement of any proceeding or claim effected without its written consent if
(i) such settlement is entered into more than 60 days after receipt by such
Indemnifying Person of the aforesaid request, (ii) a second such written request
shall have been sent to and received by the chief legal officer or, if no chief
legal officer exists, by the chief executive officer of the Indemnifying Person
at least 30 days after the first such request but at least 15 days prior to the
date of such settlement, and (iii) with respect to such request, such
Indemnifying Person shall not have reimbursed such Indemnified Person for all
reasonable fees and expenses of such counsel prior to the date of such
settlement. No Indemnifying Person shall, without the prior written consent of
the Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Person is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Person,
unless such settlement includes an unconditional release of such Indemnified
Person from all liability on claims that are the subject matter of such
proceeding.

         If the indemnification provided for in the first and second paragraphs
of this Section 7 is unavailable to an Indemnified Person in respect of any
losses, claims, damages or liabilities referred to therein, then each
Indemnifying Person under such paragraph, in lieu of indemnifying such
Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Guarantors on the one hand and the
Initial Purchaser on the other hand from the offering of the Securities or (ii)
if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the
Company and the Guarantors on the one hand and the Initial Purchaser on the
other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Guarantors
on the one hand and the Initial Purchaser on the other shall be deemed to be in
the same respective proportions as the net proceeds from the offering (before
deducting expenses) received by the

                                       21
<PAGE>

     Company and the total discounts and commissions received by the Initial
     Purchaser, in each case as set forth in the table on the cover of the
     Offering Memorandum, bear to the aggregate offering price of the
     Securities. The relative fault of the Company and the Guarantors on the one
     hand and the Initial Purchaser on the other shall be determined by
     reference to, among other things, whether the untrue or alleged untrue
     statement of a material fact or the omission or alleged omission to state a
     material fact relates to information supplied by the Company or the
     Guarantors or by the Initial Purchaser and the parties' relative intent,
     knowledge, access to information and opportunity to correct or prevent such
     statement or omission.

         The Company, the Guarantors and the Initial Purchaser agree that it
would not be just and equitable if contribution pursuant to this Section 7 were
determined by pro rata allocation or by any other method of allocation that does
not take account of the equitable considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an Indemnified Person as a
result of the losses, claims, damages and liabilities referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses incurred by such
Indemnified Person in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 7, in no event shall
the Initial Purchaser be required to contribute any amount in excess of the
amount by which the total price at which the Securities purchased by it were
offered exceeds the amount of any damages that the Initial Purchaser has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

         The remedies provided for in this Section 7 are not exclusive and shall
not limit any rights or remedies which may otherwise be available to any
indemnified party at law or in equity.

         The indemnity and contribution agreements contained in this Section 7
and the representations and warranties made as of the date hereof and as of
Closing Date of the Company, the Guarantors and the Initial Purchaser set forth
in this Agreement shall remain operative and in full force and effect regardless
of (i) any termination of this Agreement, (ii) any investigation made by or on
behalf of the Initial Purchaser or any person controlling the Initial Purchaser
or by or on behalf of the Company, the Guarantors, such Company's officers or
directors or any other person controlling the Company and (iii) acceptance of
and payment for any of the Securities.

         8. Notwithstanding anything herein contained, this Agreement may be
terminated in the absolute discretion of the Initial Purchaser, by notice given
to the Company, if after the execution and delivery of this Agreement and prior
to the Closing Date (i) trading generally shall have been suspended or
materially limited on or by, as the case may be, any of the New York Stock
Exchange, the American Stock Exchange or the National Association of Securities
Dealers, Inc., the Chicago Board Options Exchange, the Chicago Mercantile
Exchange or

                                       22
<PAGE>

the Chicago Board of Trade (ii) trading of any securities of or guaranteed by
the Company shall have been suspended on any exchange or in any over-the-counter
market, (iii) a general moratorium on commercial banking activities in New York
shall have been declared by either Federal or New York State authorities, or
(iv) there shall have occurred any outbreak or escalation of hostilities or any
change in financial markets or any calamity or crisis that, in the judgment of
the Initial Purchaser, is material and adverse and which, in the judgment of the
Initial Purchaser, makes it impracticable to market the Securities on the terms
and in the manner contemplated in the Offering Memorandum.

         9. This Agreement shall become effective upon the execution and
delivery hereof by the parties hereto.

         10. If this Agreement shall be terminated by the Initial Purchaser,
because of any failure or refusal on the part of any of the Issuers to comply
with the terms or to fulfill any of the conditions of this Agreement, or if for
any reason any of the Issuers shall be unable to perform its obligations under
this Agreement or any condition of the Initial Purchaser's obligations cannot be
fulfilled other than solely by reason of a default by the Initial Purchaser in
payment for the Securities on the Closing Date, the Company agrees to reimburse
the Initial Purchaser for all out-of-pocket expenses (including the fees and
expenses of its counsel) reasonably incurred by the Initial Purchaser in
connection with this Agreement or the offering contemplated hereunder.

         11. This Agreement shall inure to the benefit of and be binding upon
the Company, the Initial Purchaser, any controlling persons referred to herein
and their respective successors and assigns. Nothing in this Agreement is
intended or shall be construed to give any other person, firm or corporation any
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision herein contained. No purchaser of Securities from the Initial
Purchaser shall be deemed to be a successor by reason merely of such purchase.

         12. All notices and other communications hereunder shall be in writing
and shall be deemed to have been duly given if mailed or transmitted by any
standard form of telecommunication. Notices to the Initial Purchaser shall be
given to them at the following address: J.P. Morgan Securities Inc., 60 Wall
Street, New York, New York 10260; Attention: Syndicate Department. Notices to
the Company shall be given to them at the following address: Tekni-Plex, Inc.,
201 Industrial Parkway, Somerville, New Jersey 08876; Attention: Dr. F. Patrick
Smith; with a copy to Davis Polk & Wardwell, 450 Lexington Avenue, New York, NY
10017; Attention: Winthrop Conrad, Esq.

         13. This Agreement may be signed in counterparts, each of which shall
be an original and all of which together shall constitute one and the same
instrument.

         14. Pursuant to Section 5-1401 of the General Obligations Laws of the
State of New York, this Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to any
other conflicts of laws provisions.

                                       23

<PAGE>

         If the foregoing is in accordance with your understanding, please sign
and return four counterparts hereof.

                                                     Very truly yours,

                                                     TEKNI-PLEX, INC.

                                                     By:_______________________
                                                        Name:
                                                        Title:

Accepted:  June    , 2000
J.P. MORGAN SECURITIES INC.

By:_____________________________
   Name:
   Title:

                                       24

<PAGE>

         Each of the undersigned by its execution hereof agrees to become a
party to this Agreement as a Guarantor as of the date set forth above:

                                      PURETEC CORPORATION
                                      PLASTIC SPECIALTIES AND
                                        TECHNOLOGIES, INC.
                                      PLASTIC SPECIALTIES AND
                                        TECHNOLOGIES INVESTMENTS, INC.
                                      BURLINGTON RESINS, INC.
                                      DISTRIBUTORS RECYCLING, INC.
                                      REI DISTRIBUTORS INC.
                                      ALUMET SMELTING CORP.
                                      NATVAR HOLDINGS, INC
                                      TRI-SEAL HOLDINGS, INC
                                      PURE TECH RECYCLING OF
                                        CALIFORNIA
                                      MULTI CONTAINER RECYCLER, INC.
                                      COAST RECYCLING NORTH, INC.
                                      Pure Tech APR, Inc.
                                       collectively, the Guarantors

                                      By:_____________________________
                                         Name:
                                         Title:

                                       25

<PAGE>

                                                                     ANNEX I

         (A) In addition to offers pursuant to clause (B)(1) of paragraph 2(ii)
of the Agreement, the Initial Purchaser intends to offer and sell the Securities
in accordance with Regulation S under the Act. Accordingly, the Initial
Purchaser agrees that neither it, its affiliates nor any persons acting on its
or their behalf has engaged or will engage in any directed selling efforts
within the meaning of Rule 902 under the Act with respect to the Securities and
it and they have complied and will comply with the offering restrictions
requirement of Regulation S. The Initial Purchaser agrees that, at or prior to
confirmation of sale of Securities (other than a sale pursuant to and in
accordance with paragraph 2(ii) of the Agreement to purchasers described in
clause (B)(1) thereof), it will have sent to each distributor, dealer or person
receiving a selling concession, fee or other remuneration that purchases
Securities from it during the restricted period a confirmation or notice to
substantially the following effect:

                  "The Securities covered hereby have not been registered under
         the United States Securities Act of 1933, as amended (the "Act"), and
         may not be offered, sold or delivered within the United States or to,
         or for the account or benefit of, U.S. persons (i) as part of their
         distribution at any time or (ii) otherwise until 40 days after the
         later of the commencement of the offering and the closing date, except
         in either case in accordance with Regulation S (or Rule 144A if
         available) under the Act. Terms used above have the meaning given to
         them by Regulation S."

Terms used in this paragraph have the meanings given to them by Regulation S.

         The Initial Purchaser agrees that it has not entered and will not enter
into any contractual arrangement with respect to the distribution or delivery of
the Securities in accordance with this paragraph (A), except with its affiliates
or with the prior written consent of the Company.

         (B) The Initial Purchaser represents and agrees that (i) it has not
offered or sold, and prior to the date six months after the Closing Date will
not offer or sell any Securities to persons in the United Kingdom except to
persons whose ordinary activities involve them in acquiring, holding, managing
or disposing of investments (as principal or agent) for the purposes of their
businesses or otherwise in circumstances which have not resulted and will not
result in an offer to the public in the United Kingdom within the meaning of the
Public Offers of Securities Regulations 1995, (ii) it has complied, and will
comply, with all applicable provisions of the Financial Services Act 1986 with
respect to anything done by it in relation to the Securities in, from or
otherwise involving the United Kingdom, and (iii) it has only issued or passed
on, and will only issue or pass on, in the United Kingdom, any document received
by it in connection with the issuance of the Securities to a person who is of a
kind described in Article 11(3) of the Financial Services Act 1986 (Investment
Advertisements) (Exemptions) Order 1996 or is a person to whom such document may
otherwise lawfully be issued or passed on.

         (C) The Initial Purchaser agrees that it will not directly or
indirectly offer, sell or deliver any of the Securities or distribute any
offering memorandum, prospectus or other document or information in any
jurisdiction outside the United States except under circumstances that will
result in compliance with the applicable laws thereof, and that it will take at
its own expense whatever action is required to permit its purchase and resale of
the Securities in such jurisdictions. The Initial Purchaser understands that no
action has been taken by the Company to permit a public offering in any
jurisdiction outside the United States where action would be required for such
purposes. The Initial Purchaser agrees not to cause any advertisement of the
Securities to be published in any newspaper or periodical or posted in any
public place and not to issue any circular relating to the Securities in any
jurisdiction outside of the United States. Without prejudice to the generality
of the foregoing, the Initial Purchaser is not authorized to give any
information or to make any representation in connection with the offering or
sale of the Securities other than those contained in the Offering Memorandum.

                                       -2-

<PAGE>

                                                                        ANNEX II

                     [Form of Registration Rights Agreement]

<PAGE>

                                                                      SCHEDULE A

Domestic Subsidiaries

PureTec Corporation (Delaware)
Plastic Specialties and Technologies, Inc. (Delaware)
Plastic Specialties and Technologies Investments, Inc. (Delaware)
Burlington Resins, Inc. (Delaware)
Distributors Recycling, Inc. (New Jersey)*
REI Distributors Inc. (New Jersey)*
Alumet Smelting Corporation (New Jersey)*
Natvar Holdings, Inc. (Delaware)
Tri-Seal Holdings, Inc. (Delaware)
Pure Tech Recycling of California (California)*
Multi Container Recycler, Inc. (Michigan)*
Coast Recycling North, Inc. (California)*
Pure Tech APR, Inc. (New York)

Foreign Subsidiaries

PurePlast Acquisition Limited (Nova Scotia)
PurePlast Inc. (Ontario)
Tekni-Plex Europe, N.V. (Belgium)
Action Technology Italia S.p.A (Italy)
Colorite Europe, Ltd. (Northern Ireland)
Colorite Plastics Canada Ltd. (Ontario)

------------------------------

*  Not currently in good standing.EXHIBIT 4.4

                          REGISTRATION RIGHTS AGREEMENT

                            Dated as of June 21, 2000

                                      among

                                TEKNI-PLEX, INC.,

                           THE GUARANTORS NAMED HEREIN

                                       and

                           J.P. MORGAN SECURITIES INC.

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (the "Agreement") is dated as of
June 21, 2000, by and among TEKNI-PLEX, INC., a corporation formed under the
laws of the State of Delaware (the "Company"), each of the Subsidiaries of the
Company listed on the signature pages hereto as a Guarantor (collectively, the
"Guarantors" and together with the Company, the "Issuers"), and J.P. MORGAN
SECURITIES INC. (the "Initial Purchaser").

         This Agreement is entered into in connection with the Purchase
Agreement, dated as of June 15, 2000, among the Company, certain subsidiaries of
the Company, the Guarantors and the Initial Purchaser (the "Purchase Agreement")
relating to the sale by the Company to the Initial Purchaser of $275,000,000
aggregate principal amount of its 12 3/4% Senior Subordinated Notes due 2010
(the "Notes") and the issuance by the Guarantors to the Initial Purchaser of
guarantees (the "Guarantees" and together with the Notes, the "Securities"). In
order to induce the Initial Purchaser to enter into the Purchase Agreement, the
Issuers have agreed to provide the registration rights set forth in this
Agreement for the benefit of the Initial Purchaser and its direct and indirect
transferees. The execution and delivery of this Agreement is a condition to the
Initial Purchaser's obligation to purchase the Securities under the Purchase
Agreement.

         The parties hereby agree as follows:

1.  Definitions

         As used in this Agreement, the following terms shall have the following
meanings:

         Additional Interest: See Section 4.

         Advice: See Section 5.

         Applicable Period: See Section 2(b).

         Closing Date: The Closing Date as defined in the Purchase Agreement.

         Company: See the introductory paragraph to this Agreement.

         Consummation Date: The 250th day after the Closing.

<PAGE>

         DTC: See Section 5(a).

         Effectiveness Date: The 180th day after the Closing Date.

         Effectiveness Period: See Section 3(a).

         Event Date: See Section 4(b).

         Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations of the SEC promulgated thereunder.

         Exchange Offer: See Section 2(a).

         Exchange Registration Statement: See Section 2(a).

         Exchange Securities: See Section 2(a).

         Filing Date: The 90th day after the Closing Date.

         Guarantors: See the introductory paragraph to this Agreement.

         Holder: Any record holder of Registrable Securities.

         Indemnified Person: See Section 7. Indemnifying Person: See Section 7.

         Indenture: The Indenture, dated as of June 21, 2000, among the Company,
the Guarantors and HSBC Bank USA, as trustee, pursuant to which the Notes are
being issued, as amended or supplemented from time to time in accordance with
the terms thereof.

         Initial Purchaser: See the introductory paragraph to this Agreement.

         Initial Shelf Registration: See Section 3(a).

         Inspectors: See Section 5(p).

         Issue Date: The original issue date of the Notes.

         Issuers: See the introductory paragraph to this Agreement.

                                       2
<PAGE>

         NASD: See Section 5(t).

         Notes: See the preamble to this Agreement.

         Participant: See Section 7.

         Participating Broker-Dealer: See Section 2(b).

         Person: An individual, corporation, limited or general partnership,
joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

         Private Exchange: See Section 2(b).

         Private Exchange Securities: See Section 2(b).

         Prospectus: The prospectus included in any Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by such
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

         Records: See Section 5(p).

         Registrable Securities: The Securities, upon original issuance thereof
and at all times subsequent thereto, each Exchange Security as to which Section
2(c)(1)(i) hereof is applicable upon original issuance and at all times
subsequent thereto and, if issued, the Private Exchange Securities, until, in
the case of any such Securities, Exchange Securities or Private Exchange
Securities, as the case may be, (i) a Registration Statement (other than, with
respect to any Exchange Security as to which Section 2(c)(1)(i) hereof is
applicable, the Exchange Registration Statement) covering such Securities,
Exchange Securities or Private Exchange Securities has been declared effective
by the SEC and such Securities, Exchange Securities or Private Exchange
Securities, as the case may be, have been disposed of in accordance with such
effective Registration Statement, (ii) such Securities, Exchange Securities or
Private Exchange Securities, as the case may be, are sold in compliance

                                       3
<PAGE>

with Rule 144, or (iii) such Securities, Exchange Securities or Private Exchange
Securities, as the case may be, cease to be outstanding.

         Registration Statement: Any registration statement of the Company and
the Guarantors, including, but not limited to, the Exchange Registration
Statement, that covers any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and
supplements to such registration statement, including post-effective amendments,
all exhibits, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

         Rule 144: Rule 144 promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

         Rule 144A: Rule 144A promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144) or
regulation hereafter adopted by the SEC.

         Rule 415: Rule 415 promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

         SEC: The Securities and Exchange Commission.

         Securities Act: The Securities Act of 1933, as amended, and the rules
and regulations of the SEC promulgated thereunder.

         Shelf Notice: See Section 2(c).

         Shelf Registration: See Section 3(b).

         Subsequent Shelf Registration: See Section 3(b).

         TIA: The Trust Indenture Act of 1939, as amended.

                                       4
<PAGE>

         Trustee: The trustee as defined in the Indenture and, if existent, the
trustee under any indenture governing the Exchange Securities and Private
Exchange Securities (if any).

         Underwritten registration or underwritten offering: A registration in
connection with which securities are sold to an underwriter for reoffering to
the public pursuant to an effective Registration Statement.

2.   Exchange Offer

          (a) The Issuers agree to file with the SEC as soon as practicable
     after the Closing Date, but in no event later than the Filing Date, an
     offer to exchange (the "Exchange Offer") any and all of the Registrable
     Securities for a like aggregate principal amount of debt securities of the
     Company which are identical in all material respects to the Notes and
     guaranteed by the Guarantors with terms identical in all material respects
     to the Guarantees (the "Exchange Securities") (and which are entitled to
     the benefits of a trust indenture which is identical in all material
     respects to the Indenture (other than such changes as are necessary to
     comply with any requirements of the SEC to effect or maintain the
     qualification of such trust indenture under the TIA) and which has been
     qualified under the TIA), except that the Exchange Securities shall have
     been registered pursuant to an effective Registration Statement under the
     Securities Act and shall contain no restrictive legend thereon. The Issuers
     agree to use their reasonable best efforts to keep the Exchange Offer open
     for at least 20 business days (or longer if required by applicable law)
     after the date notice of the Exchange Offer is mailed to Holders and to
     consummate the Exchange Offer on or prior to the Consummation Date. The
     Exchange Offer will be registered under the Securities Act on the
     appropriate form (the "Exchange Registration Statement") and will comply
     with all applicable tender offer rules and regulations under the Exchange
     Act. If after such Exchange Registration Statement is initially declared
     effective by the SEC, the Exchange Offer or the issuance of the Exchange
     Securities thereunder is interfered with by any stop order, injunction or
     other order or requirement of the SEC or any other governmental agency or
     court such Exchange Registration Statement shall be deemed not to have
     become effective for purposes of this Agreement. Each Holder who
     participates in the Exchange Offer will be deemed to represent that any
     Exchange Securities received by it will be acquired in the ordinary course
     of its busi-

                                       5
<PAGE>

     ness, that at the time of the consummation of the Exchange Offer such
     Holder will have no arrangement with any person to participate in the
     distribution of the Exchange Securities in violation of the provisions of
     the Securities Act, and that such Holder is not an affiliate of the Company
     within the meaning of Rule 501(b) of Regulation D under the Securities Act
     and such Holder has full power and authority to exchange the Registrable
     Securities in exchange for the Exchange Securities. Upon consummation of
     the Exchange Offer in accordance with this Section 2, the provisions of
     this Agreement shall continue to apply, mutatis, mutandis, solely with
     respect to RegistrableSecurities that are Private Exchange Securities and
     Exchange Securities held by Participating Broker-Dealers, and the Issuers
     shall have no further obligation to register Registrable Securities (other
     than Private Exchange Securities and other than Exchange Securities as to
     which clause (c)(1)(i) hereof applies) pursuant to Section 3 of this
     Agreement. No securities other than the Exchange Securities shall be
     included in the Exchange Registration Statement.

          (b) The Issuers shall include within the Prospectus contained in the
     Exchange Registration Statement one or more section(s) reasonably
     acceptable to the Initial Purchaser, which shall contain a summary
     statement of the positions taken or policies made by the Staff of the SEC
     (which are available to the Issuers) with respect to the potential
     "underwriter" status of any broker-dealer that is the beneficial owner (as
     defined in Rule 13d-3 under the Exchange Act) of Exchange Securities
     received by such broker-dealer in the Exchange Offer (a "Participating
     Broker-Dealer"), whether such positions or policies have been publicly
     disseminated by the Staff of the SEC or such positions or policies, in the
     reasonable judgment of the Initial Purchaser, represent the prevailing
     views of the Staff of the SEC. Such section(s) shall also allow the use of
     the prospectus by all persons subject to the prospectus delivery
     requirements of the Securities Act, including all Participating
     Broker-Dealers, and include a statement describing the means by which
     Participating Broker-Dealers may resell the Exchange Securities.

          The Issuers shall use their reasonable best efforts to keep the
     Exchange Registration Statement effective and to amend and supplement the
     Prospectus contained therein in order to permit such Prospectus to be
     lawfully delivered by all persons subject to the prospectus deliv-

                                       6
<PAGE>

     ery requirements of the Securities Act for such period of time as such
     persons must comply with such requirements in order to resell the Exchange
     Securities, provided that such period shall not exceed 180 days (or such
     longer period if extended pursuant to the last paragraph of Section 5) (the
     "Applicable Period").

          If, prior to consummation of the Exchange Offer, the Initial Purchaser
     holds any Notes acquired by it and having the status of an unsold allotment
     in the initial distribution, the Company upon the request of the Initial
     Purchaser shall, simultaneously with the delivery of the Exchange
     Securities in the Exchange Offer, issue and deliver to the Initial
     Purchaser, in exchange (the "Private Exchange") for the Securities held by
     the Initial Purchaser, a like principal amount of debt securities of the
     Company that are identical in all material respects to the Exchange
     Securities (the "Private Exchange Securities") (and which are issued
     pursuant to the same indenture as the Exchange Securities) except for the
     placement of a restrictive legend on such Private Exchange Securities. If
     possible, the Private Exchange Securities shall bear the same CUSIP number
     as the Exchange Securities. Interest on the Exchange Securities and Private
     Exchange Securities will accrue from the last interest payment date on
     which interest was paid on the Notes surrendered in exchange therefor or,
     if no interest has been paid on the Notes, from the Issue Date.

          Any indenture under which the Exchange Securities or the Private
     Exchange Securities will be issued shall provide that the holders of any of
     the Exchange Securities and the Private Exchange Securities will vote and
     consent together on all matters (to which such holders are entitled to vote
     or consent) as one class and that none of the holders of the Exchange
     Securities and the Private Exchange Securities will have the right to vote
     or consent as a separate class on any matter (to which such holders are
     entitled to vote or consent).

          (c) If (1) prior to the consummation of the Exchange Offer, the
     Company reasonably determines in good faith or Holders of at least a
     majority in aggregate principal amount of the Registrable Securities notify
     the Company that they have reasonably determined in good faith that (i) in
     the opinion of counsel, the Exchange Securities would not, upon receipt, be
     tradable by such Holders who are not affiliates of the Company without
     restriction un-

                                       7
<PAGE>

     der the Securities Act and without restrictions under applicable blue sky
     or state securities laws or (ii) in the opinion of counsel, the SEC is
     unlikely to permit the consummation of the Exchange Offer and/or (2)
     subsequent to the consummation of the Private Exchange, holders of at least
     a majority in aggregate principal amount of the Private Exchange Securities
     so request with respect to the Private Exchange Securities and/or (3) the
     Exchange Offer is commenced and not consummated prior to the 40th day
     following the Consummation Date for any reason, then the Company shall
     promptly deliver to the Holders and the Trustee notice thereof (the "Shelf
     Notice") and shall thereafter file an Initial Shelf Registration as set
     forth in Section 3 (which only in the circumstances contemplated by clause
     (2) of this sentence will relate solely to the Private Exchange
     Securities). The parties hereto agree that, following the delivery of a
     Shelf Notice to the Holders of Registrable Securities (only in the
     circumstances contemplated by clauses (1) and/or (3) of the preceding
     sentence), the Issuers shall not have any further obligation to conduct the
     Exchange Offer or the Private Exchange under this Section 2.

3.   Shelf Registration

         If a Shelf Notice is delivered as contemplated by Section 2(c), then:

          (a) Initial Shelf Registration. The Issuers shall as promptly as
     reasonably practicable prepare and file with the SEC a Registration
     Statement for an offering to be made on a continuous basis pursuant to Rule
     415 covering all of the Registrable Securities (the "Initial Shelf
     Registration"). If the Issuers shall have not yet filed an Exchange Offer,
     the Issuers shall use their reasonable best efforts to file with the SEC
     the Initial Shelf Registration on or prior to the Filing Date. Otherwise,
     the Issuers shall use their reasonable best efforts to file with the SEC
     the Initial Shelf Registration within 45 days of the delivery of the Shelf
     Notice. The Initial Shelf Registration shall be on Form S-1 or another
     appropriate form permitting registration of such Registrable Securities for
     resale by such holders in the manner or manners designated by them
     (including, without limitation, one or more underwritten offerings). The
     Issuers shall not permit any securities other than the Registrable
     Securities to be included in the Initial Shelf Registration or any
     Subsequent Shelf Registration. The Issuers shall use

                                       8
<PAGE>

     their reasonable best efforts to cause the Initial Shelf Registration to be
     declared effective under the Securities Act on or prior to the 90th day
     after the filing thereof with the Commission and to keep the Initial Shelf
     Registration continuously effective under the Securities Act until the date
     on which the Securities are no longer "restricted securities" (within the
     meaning of Rule 144 under the Act) (subject to extension pursuant to the
     last paragraph of Section 5 hereof) (the "Effectiveness Period"), or such
     shorter period ending when (i) all Registrable Securities covered by the
     Initial Shelf Registration have been sold in the manner set forth and as
     contemplated in the Initial Shelf Registration, (ii) the second anniversary
     of the Closing Date occurs or (iii) a Subsequent Shelf Registration
     covering all of the Registrable Securities has been declared effective
     under the Securities Act.

          (b) Subsequent Shelf Registrations. If the Initial Shelf Registration
     or any Subsequent Shelf Registration ceases to be effective for any reason
     at any time during the Effectiveness Period (other than because of the sale
     of all of the securities registered thereunder), the Issuers shall use
     their reasonable best efforts to obtain the prompt withdrawal of any order
     suspending the effectiveness thereof, and in any event shall within 45 days
     of such cessation of effectiveness amend the Shelf Registration in a manner
     reasonably expected to obtain the withdrawal of the order suspending the
     effectiveness thereof, or file an additional "shelf" Registration Statement
     pursuant to Rule 415 covering all of the Registrable Securities (a
     "Subsequent Shelf Registration"). If a Subsequent Shelf Registration is
     filed, the Issuers shall use their reasonable best efforts to cause the
     Subsequent Shelf Registration to be declared effective as soon as
     practicable after such filing and to keep such Registration Statement
     continuously effective for a period equal to the number of days in the
     Effectiveness Period less the aggregate number of days during which the
     Initial Shelf Registration or any Subsequent Shelf Registration was
     previously continuously effective. As used herein the term "Shelf
     Registration" means the Initial Shelf Registration and any Subsequent Shelf
     Registration.

          (c) Supplements and Amendments. The Issuers shall promptly supplement
     and amend the Shelf Registration if required by the rules, regulations or
     instructions applicable to the registration form used for such Shelf
     Registration, if required by the Securities Act, or if reasona-

                                       9
<PAGE>

     bly requested by the Holders of a majority in aggregate principal amount of
     the Registrable Securities covered by such Registration Statement or by any
     underwriter of such Registrable Securities.

4.   Additional Interest

          (a) The Issuers and the Initial Purchasers agree that the Holders of
     Registrable Securities will suffer damages if the Issuers fail to fulfill
     their obligations under Section 2 or Section 3 hereof and that it would not
     be feasible to ascertain the extent of such damages with precision.
     Accordingly, the Issuers, jointly and severally, agree to pay, as
     liquidated damages, additional interest on the Registrable Securities
     ("Additional Interest") under the circumstances and to the extent set forth
     below (each of which shall be given independent effect and shall not be
     duplicative except as otherwise provided below):

          (i) if neither the Exchange Registration Statement nor the Initial
     Shelf Registration has been filed on or prior to the Filing Date,
     Additional Interest shall accrue on the Registrable Securities over and
     above the stated interest at a rate of .25% per annum for the first 90 days
     immediately following the Filing Date, such Additional Interest rate
     increasing by an additional .25% per annum at the beginning of each
     subsequent 90-day period;

          (ii) if neither the Exchange Registration Statement nor the Initial
     Shelf Registration is declared effective by the SEC on or prior to the
     Effectiveness Date, Additional Interest shall be accrued on the Registrable
     Securities included or which should have been included in such Registration
     Statement over and above the stated interest at a rate of .25% per annum
     for the first 90 days immediately following the day after the Effectiveness
     Date, such Additional Interest rate increasing by an additional .25% per
     annum at the beginning of each subsequent 90-day period; and

          (iii) if (A) the Company has not exchanged Exchange Securities for all
     Securities validly tendered in accordance with the terms of the Exchange
     Offer on or prior to the Consummation Date or (B) the Exchange Registration
     Statement ceases to be effective at any time prior to the time that the
     Exchange Offer is consummated or (C) if applicable, the Shelf Registration
     has been declared effec-

                                       10
<PAGE>

     tive and such Shelf Registration ceases to be effective at any time during
     the Effectiveness Period, then Additional Interest shall be accrued on the
     Registrable Securities (over and above any interest otherwise payable on
     the Registrable Securities) at a rate of .25% per annum for the first 90
     days commencing on the (x) 251st day after the Issue Date, in the case of
     (A) above, or (y) the day the Exchange Registration Statement ceases to be
     effective in the case of (B) above, or (z) the day such Shelf Registration
     ceases to be effective in the case of (C) above, such Additional Interest
     rate increasing by an additional .25% per annum at the beginning of each
     such subsequent 90-day period;

provided, however, that the Additional Interest rate on the Registrable
Securities may not exceed at any one time in the aggregate 1.0% per annum; and
provided, further, that (1) upon the filing of the Exchange Registration
Statement or a Shelf Registration as required hereunder (in the case of clause
(i) of this Section 4(a)), (2) upon the effectiveness of the Exchange
Registration Statement or the Shelf Registration as required hereunder (in the
case of clause (ii) of this Section 4(a)), or (3) upon the exchange of Exchange
Securities for all Notes tendered (in the case of clause (iii)(A) of this
Section 4(a)), or upon the effectiveness of the Exchange Registration Statement
which had ceased to remain effective (in the case of (iii)(B) of this Section
4(a)), or upon the effectiveness of the Shelf Registration which had ceased to
remain effective (in the case of (iii)(C) of this Section 4(a)), Additional
Interest on the Registrable Securities as a result of such clause (or the
relevant subclause thereof), as the case may be, shall cease to accrue. It is
understood and agreed that, notwithstanding any provision to the contrary, so
long as any Registrable Security is then covered by an effective Shelf
Registration Statement, no Additional Interest shall accrue on such Registrable
Security.

          (b) The Company shall notify the Trustee within one business day after
     each and every date on which an event occurs in respect of which Additional
     Interest is required to be paid (an "Event Date"). The Issuers shall pay
     the Additional Interest due on the Registrable Securities by depositing
     with the Trustee, in trust, for the benefit of the Holders thereof, on or
     before the applicable semi-annual interest payment date, immediately
     available funds in sums sufficient to pay the Additional Interest then due
     to Holders of Registrable Securities. The Additional Interest amount due
     shall be payable on each inter-

                                       11
<PAGE>

     est payment date to the record Holder of Registrable Securities entitled to
     receive the interest payment to be made on such date as set forth in the
     Indenture. The amount of Additional Interest will be determined by
     multiplying the applicable Additional Interest rate by the principal amount
     of the affected Registrable Securities of such Holders, multiplied by a
     fraction, the numerator of which is the number of days such Additional
     Interest rate was applicable during such period (determined on the basis of
     a 360-day year comprised of twelve 30-day months and, in the case of a
     partial month, the actual number of days elapsed including the first day
     but excluding the last day of such period), and, the denominator of which
     is 360. Each obligation to pay Additional Interest shall be deemed to
     accrue immediately following the occurrence of the applicable Event Date.
     The parties hereto agree that the Additional Interest provided for in this
     Section 4 constitutes a reasonable estimate of the damages that may be
     incurred by Holders of Registrable Securities by reason of the failure of a
     Shelf Registration or Exchange Offer to be filed or declared effective, or
     a Shelf Registration to remain effective, as the case may be, in accordance
     with this Section 4.

5.   Registration Procedures

         In connection with the registration of any Registrable Securities
pursuant to Sections 2 or 3 hereof, the Issuers shall effect such registrations
to permit the sale of such Registrable Securities in accordance with the
intended method or methods of disposition thereof, and pursuant thereto the
Issuers shall:

          (a) Use their reasonable best efforts to prepare and file with the
     SEC, as soon as practicable after the date hereof but in any event prior to
     the Filing Date in the case of the Exchange Registration Statement and the
     45th day following the Consummation Date in the case of the Shelf
     Registration Statement, a Registration Statement or Registration Statements
     as prescribed by Section 2 or 3, and to use their reasonable best efforts
     to cause each such Registration Statement to become effective and remain
     effective as provided herein, provided that, if (1) such filing is pursuant
     to Section 3, or (2) a Prospectus contained in an Exchange
     Registration Statement filed pursuant to Section 2 is required to be
     delivered under the Securities Act by any Participating Broker-Dealer who
     seeks to sell Exchange Securities during the Applicable Period,

                                       12
<PAGE>

     before filing any Registration Statement or Prospectus or any amendments or
     supplements thereto, the Issuers shall upon written request furnish to and
     afford the Holders of the Registrable Securities (which in the case of
     Registrable Securities in the form of global certificates shall be The
     Depository Trust Company ("DTC")) and each such Participating
     Broker-Dealer, as the case may be, covered by such Registration Statement,
     their counsel and the managing underwriters, if any, a reasonable
     opportunity to review copies of all such documents (including copies of any
     documents to be incorporated by reference therein and all exhibits thereto)
     proposed to be filed.

          (b) Prepare and file with the SEC such amendments and post-effective
     amendments to each Shelf Registration or Exchange Registration Statement,
     as the case may be, as may be necessary to keep such Registration Statement
     continuously effective for the Effectiveness Period or the Applicable
     Period, as the case may be; cause the related Prospectus to be supplemented
     by any required Prospectus supplement, and as so supplemented to be filed
     pursuant to Rule 424 (or any similar provisions then in force) under the
     Securities Act; and comply with the provisions of the Securities Act, the
     Exchange Act and the rules and regulations of the SEC promulgated
     thereunder applicable to it with respect to the disposition of all
     securities covered by such Registration Statement as so amended or in such
     Prospectus as so supplemented and with respect to the subsequent resale of
     any securities being sold by a Participating Broker-Dealer covered by any
     such Prospectus; the Issuers shall not be deemed to have used their
     reasonable best efforts to keep a Registration Statement effective during
     the Applicable Period if either of them voluntarily takes any action that
     would result in selling Holders of the Registrable Securities covered
     thereby or Participating Broker-Dealers seeking to sell Exchange Securities
     not being able to sell such Registrable Securities or such Exchange
     Securities during that period unless such action is required by applicable
     law or unless the Issuers comply with this Agreement, including without
     limitation, the provisions of paragraph 5(k) hereof and the last paragraph
     of this Section 5.

          (c) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Se-

                                       13
<PAGE>

     curities during the Applicable Period, notify the selling Holders of
     Registrable Securities, or each such Participating Broker-Dealer, as the
     case may be, their counsel and the managing underwriters, if any, who have
     provided the Issuers with their names and addresses promptly (but in any
     event within two business days), and confirm such notice in writing, (i)
     when a Prospectus or any Prospectus supplement or post-effective amendment
     has been filed, and, with respect to a Registration Statement or any
     post-effective amendment, when the same has become effective under the
     Securities Act (including in such notice a written statement that any
     Holder may, upon request, obtain, without charge, one conformed copy of
     such Registration Statement or post-effective amendment including financial
     statements and schedules, documents incorporated or deemed to be
     incorporated by reference and exhibits), (ii) of the issuance by the SEC of
     any stop order suspending the effectiveness of a Registration Statement or
     of any order preventing or suspending the use of any preliminary prospectus
     or the initiation of any proceedings for that purpose, (iii) of the receipt
     by the Company of any notification with respect to the suspension of the
     qualification or exemption from qualification of a Registration Statement
     or any of the Registrable Securities or the Exchange Securities to be sold
     by any Participating Broker-Dealer for offer or sale in any jurisdiction,
     or the initiation or threatening of any proceeding for such purpose, (iv)
     of the happening of any event or any information becoming known that makes
     any statement made in such Registration Statement or related Prospectus or
     any document incorporated or deemed to be incorporated therein by reference
     untrue in any material respect or that requires the making of any changes
     in such Registration Statement, Prospectus or documents so that, in the
     case of the Registration Statement, it will not contain any untrue
     statement of a material fact or omit to state any material fact required to
     be stated therein or necessary to make the statements therein not
     misleading, and that in the case of the Prospectus, it will not contain any
     untrue statement of a material fact or omit to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in the light of the circumstances under which they were made, not
     misleading, and (v) of the Company's reasonable determination that a
     post-effective amendment to a Registration Statement would be appropriate.

                                       14
<PAGE>

          (d) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Securities during
     the Applicable Period, use their reasonable best efforts to prevent the
     issuance of any order suspending the effectiveness of a Registration
     Statement or of any order preventing or suspending the use of a Prospectus
     or suspending the qualification (or exemption from qualification) of any of
     the Registrable Securities or the Exchange Securities to be sold by any
     Participating Broker-Dealer, for sale in any jurisdiction, and, if any such
     order is issued, to use their reasonable best efforts to obtain the
     withdrawal of any such order at the earliest possible moment.

          (e) If a Shelf Registration is filed pursuant to Section 3 and if
     requested by the managing underwriters, if any, or the Holders of a
     majority in aggregate principal amount of the Registrable Securities being
     sold in connection with an underwritten offering, (i) promptly incorporate
     in a prospectus supplement or post-effective amendment such information as
     the managing underwriters, if any, or such Holders or counsel reasonably
     request to be included therein, or (ii) make all required filings of such
     prospectus supplement or such post-effective amendment as soon as
     practicable after the Company has received notification of the matters to
     be incorporated in such prospectus supplement or post-effective amendment
     provided that the Company shall not be required to take any action
     pursuant to this Section 5(e) that would, in the opinion of counsel for the
     Company, violate applicable law.

          (f) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Securities during
     the Applicable Period, furnish to each selling Holder of Registrable
     Securities and to each such Participating Broker-Dealer who so requests and
     to counsel and each managing underwriter, if any, without charge, one
     conformed copy of the Registration Statement or Statements and each
     post-effective amendment thereto, including financial statements and
     schedules, and if requested, all documents incorporated or deemed to be
     incorporated therein by reference and all exhibits.

                                       15
<PAGE>

          (g) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Securities during
     the Applicable Period, deliver to each selling Holder of Registrable
     Securities, or each such Participating Broker-Dealer, as the case may be,
     their counsel, and the underwriters, if any, without charge, as many copies
     of the Prospectus or Prospectuses (including each form of preliminary
     prospectus) and each amendment or supplement thereto and any documents
     incorporated by reference therein as such Persons may reasonably request;
     and, subject to the last paragraph of this Section 5, the Issuers hereby
     consent to the use of such Prospectus and each amendment or supplement
     thereto by each of the selling holders of Registrable Securities or each
     such Participating Broker-Dealer, as the case may be, and the underwriters
     or agents, if any, and dealers (if any), in connection with the offering
     and sale of the Registrable Securities covered by or the sale by
     Participating Broker-Dealers of the Exchange Securities pursuant to such
     Prospectus and any amendment or supplement thereto.

          (h) Prior to any public offering of Registrable Securities or any
     delivery of a Prospectus contained in the Exchange Registration Statement
     by any Participating Broker-Dealer who seeks to sell Exchange Securities
     during the Applicable Period, to use their reasonable best efforts to
     register or qualify, and to cooperate with the selling Holders of
     Registrable Securities or each such Participating Broker-Dealer, as the
     case may be, the underwriters, if any, and their respective counsel in
     connection with the registration or qualification (or exemption from such
     registration or qualification) of such Registrable Securities for offer and
     sale under the securities or Blue Sky laws of such jurisdictions within the
     United States as any selling Holder, Participating Broker-Dealer, or the
     managing underwriters reasonably request in writing, provided that where
     Exchange Securities held by Participating Broker-Dealers or Registrable
     Securities are offered other than through an underwritten offering, the
     Issuers agree, if requested, to cause their counsel to perform Blue Sky
     investigations and file registrations and qualifications required to be
     filed pursuant to this Section 5(h); keep each such registration or
     qualification (or exemption therefrom) effective during the period such
     Registration Statement is required to be

                                       16
<PAGE>

     kept effective and do any and all other reasonable acts or things necessary
     or advisable to enable the disposition in such jurisdictions of the
     Exchange Securities held by Participating Broker-Dealers or the Registrable
     Securities covered by the applicable Registration Statement, provided that
     neither of the Issuers shall be required to (A) qualify generally to do
     business in any jurisdiction where it is not then so qualified, (B) take
     any action that would subject it to general service of process in any such
     jurisdiction where it is not then so subject or (C) subject itself to
     taxation in excess of a nominal dollar amount in any such jurisdiction.

          (i) If a Shelf Registration is filed pursuant to Section 3, reasonably
     cooperate with the selling Holders of Registrable Securities and the
     managing underwriters, if any, to facilitate the timely preparation and
     delivery of certificates representing Registrable Securities to be sold,
     which certificates shall not bear any restrictive legends and shall be in a
     form eligible for deposit with DTC; and enable such Registrable Securities
     to be registered in such names as the managing underwriter or underwriters,
     if any, or Holders may request at least two business days prior to any sale
     of Registrable Securities.

          (j) Use their reasonable best efforts to cause the Registrable
     Securities covered by the Registration Statement to be registered with or
     approved by such other United States governmental agencies or authorities
     of the United States as may be necessary to enable the seller or sellers
     thereof or the underwriters, if any, to consummate the disposition of such
     Registrable Securities, except as may be required solely as a consequence
     of the nature of such selling Holder's business, in which case the Issuers
     will cooperate in all reasonable respects with the filing of such
     Registration Statement and the granting of such approvals.

          (k) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Securities during
     the Applicable Period, upon the occurrence of any event contemplated by
     paragraph 5(c)(iv) or 5(c)(v) above, as promptly as practicable prepare and
     (subject to Section 5(a) above) file with the SEC, solely at the expense of
     the Issuers, a supplement or

                                       17
<PAGE>

     post-effective amendment to the Registration Statement or a supplement to
     the related Prospectus or any document incorporated or deemed to be
     incorporated therein by reference, or file any other required document so
     that, as thereafter delivered to the purchasers of the Registrable
     Securities being sold thereunder or to the purchasers of the Exchange
     Securities to whom such Prospectus will be delivered by a Participating
     Broker-Dealer, any such Prospectus will not contain an untrue statement of
     a material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein, in the light of the
     circumstances under which they were made, not misleading.

          (l) Use their reasonable best efforts to cause the Registrable
     Securities covered by a Registration Statement or the Exchange Securities,
     as the case may be, to be rated, or, if previously rated, updated, with the
     appropriate rating agencies, if so requested by the Holders of a majority
     in aggregate principal amount of Registrable Securities covered by such
     Registration Statement or the Exchange Securities, as the case may be, or
     the managing underwriters, if any.

          (m) Prior to the effective date of the first Registration Statement
     relating to the Registrable Securities, (i) provide the Trustee with
     printed certificates for the Registrable Securities in a form eligible for
     deposit with DTC and (ii) provide a CUSIP number for the Registrable
     Securities.

          (n) Use their best efforts to cause all Registrable Securities covered
     by such Registration Statement or the Exchange Securities, as the case may
     be, to be (i) listed on each securities exchange, if any, on which similar
     securities issued by the Company are then listed, or (ii) authorized to be
     quoted on the National Association of Securities Dealers Automated
     Quotation System ("NASDAQ") or the National Market System of NASDAQ if
     similar securities of the Company are so authorized.

          (o) In connection with an underwritten offering of Registrable
     Securities pursuant to a Shelf Registration, enter into an underwriting
     agreement as is customary in underwritten offerings and take all such other
     actions as are reasonably requested by the managing underwriters in order
     to expedite or facilitate the registration or the disposition of such
     Registrable Securities, and in such

                                       18
<PAGE>

     connection, (i) make such representations and warranties to the
     underwriters, with respect to the business of the Company and its
     subsidiaries, if any, and the Registration Statement, Prospectus and
     documents, if any, incorporated or deemed to be incorporated by reference
     therein, in each case, as are customarily made by issuers to underwriters
     in underwritten offerings, and confirm the same if and when reasonably
     requested; (ii) obtain an opinion of counsel to the Issuers and updates
     thereof in form and substance reasonably satisfactory to the managing
     underwriters (if any), addressed to the underwriters covering the matters
     customarily covered in opinions requested in underwritten offerings and
     such other matters as may be reasonably requested by underwriters; (iii)
     obtain "cold comfort" letters and updates thereof in form and substance
     reasonably satisfactory to the managing underwriters from the independent
     certified public accountants of the Company (and, if necessary, any other
     independent certified public accountants of any subsidiary of the Company
     or of any business acquired by the Company for which financial statements
     and financial data are, or are required to be, included in the Registration
     Statement), addressed to each of the underwriters, such letters to be in
     customary form and covering matters of the type customarily covered in
     "cold comfort" letters in connection with underwritten offerings and such
     other matters as may be reasonably requested by underwriters; and (iv) if
     an underwriting agreement is entered into, the same shall contain
     indemnification provisions and procedures no less favorable than those set
     forth in Section 7 hereof (or such other provisions and procedures
     acceptable to Holders of a majority in aggregate principal amount of
     Registrable Securities covered by such Registration Statement and the
     managing underwriters or agents) with respect to all parties to be
     indemnified pursuant to said Section provided that the Company shall not be
     required to enter into any underwritten offering more than once with
     respect to all Registrable Securities and provided further that the Company
     may delay entering into an underwritten offering until the consummation of
     any underwritten offering the Company shall have undertaken.

          (p) If (1) a Shelf Registration is filed pursuant to Section 3, or (2)
     a Prospectus contained in an Exchange Registration Statement filed pursuant
     to Section 2 is required to be delivered under the Securities Act by any
     Participating Broker-Dealer who seeks to sell Exchange Se-

                                       19
<PAGE>

     curities during the Applicable Period, make available for inspection by any
     selling Holder of such Registrable Securities being sold, or each such
     Participating Broker-Dealer, as the case may be, any underwriter
     participating in any such disposition of Registrable Securities, if any,
     and any attorney, accountant or other agent retained by any such selling
     holder or each such Participating Broker-Dealer, as the case may be, or
     underwriter (collectively, the "Inspectors"), at the offices where normally
     kept, during reasonable business hours, all financial and other records,
     pertinent corporate documents and properties of the Company and its
     subsidiaries, if any (collectively, the "Records"), as shall be reasonably
     necessary to enable them to exercise any applicable due diligence
     responsibilities, and cause the officers, directors and employees of the
     Company and its subsidiaries, if any to supply all information in each case
     reasonably requested by any such Inspector in connection with such
     Registration Statement; provided that such Inspectors shall first
     agree in writing with the Company that any information reasonably
     designated by the Company in good faith in writing as confidential at the
     time of delivery of such information shall be kept confidential by such
     Inspector (and such Inspector shall enter into reasonable confidentiality
     agreements, and observe other customary confidentiality procedures, as the
     Company may reasonably request), except to the extent that (i) the
     disclosure of such Records is necessary to avoid or correct a misstatement
     or omission in such Registration Statement, (ii) the release of such
     Records is ordered pursuant to a subpoena or other order from a court of
     competent jurisdiction or (iii) the information in such Records has been
     made generally available to the public. Each selling Holder of such
     Registrable Securities and each such Participating Broker-Dealer will be
     required to agree that information obtained by it as a result of such
     inspections shall be deemed confidential and shall not be used by it as the
     basis for any market transactions in the securities of the Company unless
     and until such is made generally available to the public. Each selling
     Holder of such Registrable Securities and each such Participating
     Broker-Dealer will be required to further agree that it will, upon learning
     that disclosure of such Records is sought in a court of competent
     jurisdiction, give notice to the Company and allow the Company at its
     expense to undertake appropriate action to prevent disclosure of the
     Records deemed confidential.

                                       20
<PAGE>

          (q) Provide an indenture trustee for the Registrable Securities or the
     Exchange Securities, as the case may be, and cause the Indenture or the
     trust indenture provided for in Section 2(a), as the case may be, to be
     qualified under the TIA not later than the effective date of the Exchange
     Offer or the first Registration Statement relating to the Registrable
     Securities; and in connection therewith, cooperate with the trustee under
     any such indenture and the holders of the Registrable Securities, to effect
     such changes to such indenture as may be required for such indenture to be
     so qualified in accordance with the terms of the TIA; and execute, and use
     their reasonable best efforts to cause such trustee to execute, all
     documents as may be required to effect such changes, and all other forms
     and documents required to be filed with the SEC to enable such indenture to
     be so qualified in a timely manner.

          (r) Comply in all material respects with all applicable rules and
     regulations of the SEC and make generally available to their
     securityholders earning statements satisfying the provisions of Section
     11(a) of the Securities Act and Rule 158 thereunder (or any similar rule
     promulgated under the Securities Act) no later than 90 days after the end
     of any 12-month period (i) commencing at the end of any fiscal quarter in
     which Registrable Securities are sold to underwriters in a firm commitment
     or best efforts underwritten offering and (ii) if not sold to underwriters
     in such an offering, commencing on the first day of the first fiscal
     quarter of the Company after the effective date of a Shelf Registration
     Statement, which statements shall cover said 12-month periods.

          (s) If an Exchange Offer or a Private Exchange is to be consummated,
     upon delivery of the Registrable Securities by Holders to the Company (or
     to such other Person as directed by the Company) in exchange for the
     Exchange Securities or the Private Exchange Securities, as the case may be,
     the Company shall mark, or caused to be marked, on such Registrable
     Securities that such Registrable Securities are being cancelled in exchange
     for the Exchange Securities or the Private Exchange Securities, as the case
     may be; in no event shall such Registrable Securities be marked as paid or
     otherwise satisfied.

          (t) Reasonably cooperate with each seller of Registrable Securities
     covered by any Registration Statement and each underwriter, if any,
     participating in the dis-

                                       21
<PAGE>

     position of such Registrable Securities and their respective counsel in
     connection with any filings required to be made with the National
     Association of Securities Dealers, Inc. (the "NASD").

          (u) Use their reasonable best efforts to take all other steps
     necessary to effect the registration of the Registrable Securities covered
     by a Registration Statement contemplated hereby.

          (v) Upon consummation of an Exchange Offer or a Private Exchange,
     obtain an opinion of counsel to the Company and the Guarantors, in a form
     customary for underwritten offerings of debt securities similar to the
     Notes, addressed to the Trustee solely for the benefit of the Trustee, and
     not for the benefit of Holders of Registrable Securities participating in
     the Exchange Offer or the Private Exchange, as the case may be, and which
     includes an opinion that (i) each of the Company and the Guarantors has
     duly authorized, executed and delivered the Exchange Securities and Private
     Exchange Securities and the related indenture and (ii) each of the Exchange
     Securities or the Private Exchange Securities, as the case may be, and
     related indenture constitute a legal, valid and binding obligation of each
     of the Company and the Guarantors, enforceable against each of the Company
     and the Guarantors in accordance with its respective terms (with customary
     exceptions).

         The Issuers may require each seller of Registrable Securities or
Participating Broker-Dealer as to which any registration is being effected to
furnish to the Issuers such information regarding such seller or Participating
Broker-Dealer and the distribution of such Registrable Securities or Exchange
Securities to be sold by such Participating Broker-Dealer, as the case may be,
as the Issuers may, from time to time, reasonably request. The Issuers may
exclude from such registration the Registrable Securities of any seller or
Participating Broker-Dealer who unreasonably fails to furnish such information
within a reasonable time after receiving such request. Each seller as to which
any Shelf Registration is being effected is deemed to agree to furnish promptly
to the Issuers all information required to be disclosed in order to make the
information previously furnished to the Issuers by such seller not materially
misleading.

         Each Holder of Registrable Securities and each Participating
Broker-Dealer agrees by acquisition of such Regis-

                                       22
<PAGE>

trable Securities or Exchange Securities to be sold by such Participating
Broker-Dealer, as the case may be, that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 5(c)(ii),
5(c)(iii), 5(c)(iv), or 5(c)(v), such Holder will forthwith discontinue
disposition of such Registrable Securities covered by such Registration
Statement or Prospectus or Exchange Securities to be sold by such Participating
Broker-Dealer, as the case may be, until such holder's receipt of the copies of
the supplemented or amended Prospectus contemplated by Section 5(k), or until it
is advised in writing (the "Advice") by the Company that the use of the
applicable Prospectus may be resumed, and has received copies of any amendments
or supplements thereto. In the event the Company shall give any such notice,
each of the Effectiveness Period and the Applicable Period shall be extended by
the number of days during such periods from and including the date of the giving
of such notice to and including the date when each seller of Registrable
Securities covered by such Registration Statement or Exchange Securities to be
sold by such Participating Broker-Dealer, as the case may be, shall have
received (x) the copies of the supplemented or amended Prospectus contemplated
by Section 5(k) or (y) the Advice.

6.   Registration Expenses

          (a) All fees and expenses incident to the performance of or compliance
     with this Agreement by the Issuers shall be borne by the Issuers, jointly
     and severally, whether or not the Exchange Offer or a Shelf Registration is
     filed or becomes effective, including, without limitation, (i) all
     registration and filing fees (including, without limitation, (A) fees with
     respect to filings required to be made with the NASD in connection with an
     underwritten offering and (B) fees and expenses of compliance with state
     securities or Blue Sky laws (including, without limitation, reasonable fees
     and disbursements of counsel in connection with Blue Sky qualifications of
     the Registrable Securities or Exchange Securities and determination of the
     eligibility of the Registrable Securities or Exchange Securities for
     investment under the laws of such jurisdictions in the United States (x)
     where the holders of Registrable Securities are located, in the case of the
     Exchange Securities, or (y) as provided in Section 5(h), in the case of
     Registrable Securities or Exchange Securities to be sold by a Participating
     Broker-Dealer during the Applicable Period)), (ii) printing expenses
     (including, without limitation, expenses of printing certificates for
     Registrable Securities or Exchange Securities in a

                                       23
<PAGE>

     form eligible for deposit with DTC and of printing prospectuses if the
     printing of prospectuses is requested by the managing underwriters, if any,
     or, in respect of Registrable Securities or Exchange Securities to be sold
     by any Participating Broker-Dealer during the Applicable Period, by the
     Holders of a majority in aggregate principal amount of the Registrable
     Securities included in any Registration Statement or of such Exchange
     Securities, as the case may be), (iii) messenger, telephone and delivery
     expenses, (iv) fees and disbursements of counsel for the Issuers and fees
     and disbursements of special counsel for the sellers of Registrable
     Securities (subject to the provisions of Section 6(b)), (v) fees and
     disbursements of all independent certified public accountants referred to
     in Section 5(o)(iii) (including, without limitation, the expenses of any
     special audit and "cold comfort" letters required by or incident to such
     performance), (vi) rating agency fees, (vii) Securities Act liability
     insurance, if the Issuers desire such insurance, (viii) fees and expenses
     of all other Persons retained by either of the Issuers, (ix) internal
     expenses of the Issuers (including, without limitation, all salaries and
     expenses of officers and employees of the Issuers performing legal or
     accounting duties), (x) the expense of any annual audit, (xi) the fees and
     expenses incurred in connection with the listing of the securities to be
     registered on any securities exchange, if applicable, (xii) the expenses
     relating to printing, word processing and distributing all Registration
     Statements, underwriting agreements, securities sales agreements,
     indentures and any other documents necessary in order to comply with this
     Agreement, and (xiii) fees and expenses of the Trustee (including
     reasonable fees and expenses of counsel to the Trustee).

          (b) In connection with any Shelf Registration hereunder, the Issuers
     shall reimburse the Holders of the Registrable Securities being registered
     in such registration for the fees and disbursements of not more than one
     counsel (in addition to appropriate local counsel) chosen by the Holders of
     a majority in aggregate principal amount of the Registrable Securities to
     be included in such Registration Statement. Such Holders shall be
     responsible for any and all other out-of-pocket expenses of the Holders of
     Registrable Securities incurred in connection with the registration of the
     Registrable Securities.

                                       24
<PAGE>

7.   Indemnification

         The Issuers agree, jointly and severally, to indemnify and hold
harmless each Holder of Registrable Securities and each Participating
Broker-Dealer selling Exchange Securities during the Applicable Period, the
officers and directors of each such person, and each person, if any, who
controls any such person within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act (each, a "Participant"), from
and against any and all losses, claims, damages and liabilities (including,
without limitation, the reasonable legal fees and other expenses actually
incurred in connection with any suit, action or proceeding or any claim
asserted) caused by any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement (or any amendment thereto)
or Prospectus (as amended or supplemented if the Issuers shall have furnished
any amendments or supplements thereto) or any preliminary prospectus, or caused
by any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with information relating to any Participant furnished to the Company
in writing by such Participant expressly for use therein; provided that the
foregoing indemnity with respect to any preliminary prospectus shall not inure
to the benefit of any Participant (or to the benefit of any person controlling
such Participant) from whom the person asserting any such losses, claims,
damages or liabilities purchased Registrable Securities or Exchange Securities
if such untrue statement or omission or alleged untrue statement or omission
made in such preliminary prospectus is eliminated or remedied in the related
Prospectus (as amended or supplemented if the Issuers shall have furnished any
amendments or supplements thereto) and a copy of the related Prospectus (as so
amended or supplemented) shall not have been furnished to such person at or
prior to the sale of such Registrable Securities or Exchange Securities, as the
case may be, to such person.

         Each Participant will be required to agree, severally and not jointly,
to indemnify and hold harmless the Issuers, their directors, their officers and
each person who controls the Issuers within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the
foregoing indemnity from the Issuers to each Participant, but

                                       25
<PAGE>

only with reference to information relating to such Participant furnished to the
Company in writing by such Participant expressly for use in any Registration
Statement or Prospectus, any amendment or supplement thereto, or any preliminary
prospectus. The liability of any Participant under this paragraph shall in no
event exceed the proceeds received by such Participant from sales of Registrable
Securities giving rise to such obligations.

         If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any person in respect of which indemnity may be sought pursuant to either of the
two preceding paragraphs, such person (the "Indemnified Person") shall promptly
notify the person against whom such indemnity may be sought (the "Indemnifying
Person") in writing, and the Indemnifying Person, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others the
Indemnifying Person may designate in such proceeding and shall pay the
reasonable fees and expenses actually incurred by such counsel related to such
proceeding, provided that the failure to so notify the Indemnifying Person shall
not relieve it of any obligation or liability which it may have hereunder or
otherwise (unless and only to the extent that such failure directly results in
the loss or compromise of any material rights or defenses). In any such
proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless (i) the Indemnifying Person and the Indemnified
Person shall have mutually agreed in writing to the contrary, (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel
reasonably satisfactory to the Indemnified Person or (iii) the named parties in
any such proceeding (including any impleaded parties) include both the
Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the Indemnifying Person
shall not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all
such fees and expenses shall be reimbursed as they are incurred. Any such
separate firm for the Participants and such control persons of Participants
shall be designated in writing by Participants who sold a majority in interest
of Registrable Securities sold by all such Participants and any such separate
firm for the Issuers, their direc-

                                       26
<PAGE>

tors, their officers and such control persons of the Issuers shall be designated
in writing by the Company. The Indemnifying Person shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final non-appealable judgment for the
plaintiff, the Indemnifying Person agrees to indemnify any Indemnified Person
from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an Indemnified Person
shall have requested in writing the chief legal officer or, if no chief legal
officer exists, to the chief executive officer of an Indemnifying Person to
reimburse the Indemnified Person for reasonable fees and expenses actually
incurred by counsel as contemplated by the third sentence of this paragraph, the
Indemnifying Person agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 60 days after receipt by such Indemnifying Person of the
aforesaid request and (ii) a second such written request shall have been sent to
and received by the chief legal officer or, if no chief legal officer exists, by
the chief executive officer of the Indemnifying Person at least 30 days after
the first such request but at least 15 days prior to the date of such
settlement, and (iii) with respect to such request, such Indemnifying Person
shall not have reimbursed the Indemnified Person for all reasonable fees and
expenses of such counsel in accordance with such request prior to the date of
such settlement; provided, however, that the Indemnifying Person shall not be
liable for any settlement effected without its consent pursuant to this sentence
if the Indemnifying Party is contesting, in good faith, the request for
reimbursement. No Indemnifying Person shall, without the prior written consent
of the Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Person is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Person,
unless such settlement includes an unconditional release of such Indemnified
Person from all liability on claims that are the subject matter of such
proceeding.

         If the Indemnification provided for in the first and second
paragraphs of this Section 7 is unavailable to an Indemnified Person in respect
of any losses, claims, damages or liabilities referred to therein, then each
Indemnifying Person under such paragraph, in lieu of indemnifying such
Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person as a result of such losses, claims, damages or
liabilities in such proportion as is appro-

                                       27
<PAGE>

priate to reflect the relative fault of the Issuers on the one hand and the
Participants on the other in connection with the statements or omissions that
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative fault of the Issuers on the one
hand and the Participants on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Issuers or by the Participants and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

         The parties shall agree that it would not be just and equitable if
contribution pursuant to this Section 7 were determined by pro rata allocation
(even if the Participants were treated as one entity for such purpose) or by any
other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an Indemnified Person as a result of the losses, claims,
damages and liabilities referred to in the immediately preceding paragraph shall
be deemed to include, subject to the limitations set forth above, any reasonable
legal or other expenses actually incurred by such Indemnified Person in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7, in no event shall a
Participant be required to contribute any amount in excess of the amount by
which proceeds received by such Participant from sales of Registrable Securities
exceeds the amount of any damages that such Participant has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

         The indemnity and contribution agreements contained in this Section 7
will be in addition to any liability which the Indemnifying Persons may
otherwise have to the Indemnified Persons referred to above.

8.   Rule 144 and Rule 144A

         Each of the Issuers shall use their reasonable best efforts to file the
reports required to be filed by it under the Securities Act and the Exchange Act
and the rules and regulations adopted by the SEC thereunder in a timely manner
and,

                                       28
<PAGE>

if at any time the Issuers are not required to file such reports, they shall,
upon the request of any Holder of Registrable Securities, make publicly
available other information so long as necessary to permit sales pursuant to
Rule 144 and Rule 144A under the Securities Act. The Issuers shall use their
reasonable best efforts to take such further action as any Holder of Registrable
Securities may reasonably request, all to the extent required from time to time
to enable such holder to sell Registrable Securities without registration under
the Securities Act within the limitation of the exemptions provided by (a) Rule
144 and Rule 144A under the Securities Act, as such Rules may be amended from
time to time, or (b) any similar rule or regulation hereafter adopted by the
SEC. Notwithstanding the foregoing, nothing in this Section 8 shall be deemed to
require the Issuers to register any of their securities pursuant to the Exchange
Act.

9.   Underwritten Registrations

         If any of the Registrable Securities covered by any Shelf Registration
are to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Securities included in such offering and reasonably acceptable to the Company.

         No Holder of Registrable Securities may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

10.  Miscellaneous

          (a) Remedies. In the event of a breach by the Issuers of any of their
     obligations under this Agreement, each Holder of Registrable Securities, in
     addition to being entitled to exercise all rights provided herein, in the
     Indenture or, in the case of the Initial Purchasers, in the Purchase
     Agreement or granted by law, including recovery of damages, will be
     entitled to specific performance of its rights under this Agreement. The
     Issuers agree that monetary damages would not be adequate compensation for
     any loss incurred by reason of a breach by them of any of

                                       29
<PAGE>

     the provisions of this Agreement and hereby further agree that, in the
     event of any action for specific performance in respect of such breach,
     they shall waive the defense that a remedy at law would be adequate.

          (b) No Inconsistent Agreements. The Issuers have not, as of the date
     hereof, entered and shall not, after the date of this Agreement, enter into
     any agreement with respect to any of their securities that is inconsistent
     with the rights granted to the Holders of Registrable Securities in this
     Agreement or otherwise conflicts with the provisions hereof. The Issuers
     have not entered and will not enter into any agreement with respect to any
     of their securities which will grant to any Person piggy-back rights with
     respect to a Registration Statement.

          (c) Adjustments Affecting Registrable Securities. The Issuers shall
     not, directly or indirectly, take any action with respect to the
     Registrable Securities as a class that would adversely affect the ability
     of the Holders of Registrable Securities to include such Registrable
     Securities in a registration undertaken pursuant to this Agreement.

          (d) Amendments and Waivers. The provisions of this Agreement,
     including the provisions of this sentence, may not be amended, modified or
     supplemented, and waivers or consents to departures from the provisions
     hereof may not be given, unless the Company has obtained the written
     consent of Holders of at least a majority of the then outstanding aggregate
     principal amount of Registrable Securities. Notwithstanding the foregoing,
     a waiver or consent to depart from the provisions hereof with respect to a
     matter that relates exclusively to the rights of Holders of Registrable
     Securities whose securities are being sold pursuant to a Registration
     Statement and that does not directly or indirectly affect, impair, limit or
     compromise the rights of other Holders of Registrable Securities may be
     given by Holders of at least a majority in aggregate principal amount of
     the Registrable Securities being sold by such Holders pursuant to such
     Registration Statement, provided that the provisions of this sentence may
     not be amended, modified or supplemented except in accordance with the
     provisions of the immediately preceding sentence.

          (e) Notices. All notices and other communications (including without
     limitation any notices or other communications to the Trustee) provided for
     or permitted here-

                                       30
<PAGE>

     under shall be made in writing by hand-delivery, registered first-class
     mail, next-day air courier or telecopier:

          (i) if to a Holder of Registrable Securities, at the most current
     address given by the Trustee to the Company; and

          (ii) if to the Issuers, at Tekni-Plex, Inc., 201 Industrial Parkway,
     Somerville, New Jersey 08876, Attention: Dr. F. Patrick Smith; with a copy
     to Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017,
     Attention: Winthrop Conrad, Esq..

          All such notices and communications shall be deemed to have been duly
     given: when delivered by hand, if personally delivered; five business days
     after being deposited in the mail, postage prepaid, if mailed; one business
     day after being timely delivered to a next-day air courier; and when
     receipt is acknowledged by the addressee, if telecopied.

          Copies of all such notices, demands or other communications shall be
     concurrently delivered by the Person giving the same to the trustee under
     the Indenture at the address specified in such Indenture.

          (f) Successors and Assigns. This Agreement shall inure to the benefit
     of and be binding upon the successors and assigns of each of the parties,
     including without limitation and without the need for an express
     assignment, subsequent Holders of Registrable Securities; provided, that,
     with respect to the indemnity and contribution agreements in Section 7,
     each Holder of Registrable Securities subsequent to the Initial Purchaser
     shall be bound by the terms thereof if such Holder elects to include
     Registrable Securities in a Shelf Registration; provided, however, that
     this Agreement shall not inure to the benefit of or be binding upon a
     successor or assign of a Holder unless and to the extent such successor or
     assign holds Registrable Securities.

          (g) Counterparts. This Agreement may be executed in any number of
     counterparts and by the parties hereto in separate counterparts, each of
     which when so executed shall be deemed to be an original and all of which
     taken together shall constitute one and the same agreement.

                                       31
<PAGE>

          (h) Headings. The headings in this Agreement are for convenience of
     reference only and shall not limit or otherwise affect the meaning hereof.

          (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
     IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO
     CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD
     TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO AGREES TO
     SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY
     ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          (j) Severability. If any term, provision, covenant or restriction of
     this Agreement is held by a court of competent jurisdiction to be invalid,
     illegal, void or unenforceable, the remainder of the terms, provisions,
     covenants and restrictions set forth herein shall remain in full force and
     effect and shall in no way be affected, impaired or invalidated, and the
     parties hereto shall use their best efforts to find and employ an
     alternative means to achieve the same or substantially the same result as
     that contemplated by such term, provision, covenant or restriction. It is
     hereby stipulated and declared to be the intention of the parties that they
     would have executed the remaining terms, provisions, covenants and
     restrictions without including any of such that may be hereafter declared
     invalid, illegal, void or unenforceable.

          (k) Entire Agreement. This Agreement is intended by the parties as a
     final expression of their agreement, and is intended to be a complete and
     exclusive statement of the agreement and understanding of the parties
     hereto in respect of the subject matter contained herein.

          (l) Securities Held by the Company or Its Affiliates. Whenever the
     consent or approval of holders of a specified percentage of Registrable
     Securities is required hereunder, Registrable Securities held by the
     Company or its affiliates (as such term is defined in Rule 405 under the
     Securities Act) shall not be counted in determining whether such consent or
     approval was given by the Holders of such required percentage.

          (m) Subsidiary Guarantor a Party. Immediately upon the designation of
     any subsidiary of the Company as a Guarantor (as defined in the Indenture),
     the Company shall cause such Guarantor to guarantee the obligations of the

                                       32
<PAGE>

     Company hereunder (including, without limitation, the obligation to pay
     Additional Interest, if any, pursuant to the terms of Section 4 hereof), by
     executing and delivering to the Initial Purchaser an appropriate amendment
     to this Agreement.

                                       33

<PAGE>

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

                            TEKNI-PLEX, INC.

                            By:_________________________________
                               Name:
                               Title:

                            PURETEC CORPORATION
                            PLASTIC SPECIALTIES AND TECHNOLOGIES, INC.
                            PLASTIC SPECIALTIES AND TECHNOLOGIES INVESTMENTS,
                            INC.
                            BURLINGTON RESINS, INC.
                            DISTRIBUTORS RECYCLING INC.
                            REI DISTRIBUTORS INC.
                            ALUMET SMELTING CORP.
                            NATVAR HOLDINGS, INC.
                            TRI-SEAL HOLDINGS, INC.
                            PURE TECH RECYCLING OF CALIFORNIA
                            MULTI CONTAINER RECYCLER, INC.
                            COAST RECYCLING NORTH, INC.
                            PURE TECH APR, INC.
                                 collectively, the Guarantors

                            By:_________________________________
                               Name:
                               Title:

                            J.P. MORGAN SECURITIES INC.

                            By:__________________________________
                               Name:
                               Title:

                                       34

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