Document:

c53068_ex10e.htm

Exhibit 10(e)

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

       THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (the “Amendment”) is entered into as of the 10th day of December, 2007 between Rex Radio and Television, Inc., an
Ohio corporation (the “Corporation”), and David L. Bearden (the “Employee”). 

Recitals

      A.      The Corporation and the Employee entered into an Employment Agreement dated October 11, 2005 (the “Agreement”). 

      B.      The Corporation and the Employee desire to amend the terms and conditions of the Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as enacted. 

      NOW, THEREFORE, the Corporation and the Employee hereby amend the Agreement as follows: 

1.     Definitions. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Agreement. 

2.     Amendment to Section 4.3.  The third paragraph of Section 4.3 of the Agreement is hereby amended and supplemented by adding the following sentences at the end thereof:

“If the Change of Ownership Award is triggered by a sale which constitutes “a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the
  corporation” within the meaning of Section 409A of the Internal Revenue Code of 1986 (“Section 409A”), then the Award shall be paid within ninety (90) days following the sale. If the Change of Ownership Award is triggered by a sale
  which does not constitute “a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation” within the meaning of Section 409A, then the Award shall be paid
  within ninety (90) days following Employee’s “separation from service” (within the meaning of Section 409A) with the Corporation.  Notwithstanding the foregoing, if at the time of separation from service Employee is a “specified
  employee” within the meaning of Section 409A, then payment of the Award
  shall not be made before the date which is six (6) months after the date on
  which separation from service occurred.”

3.     Amendment to Section 6.2.  Section 6.2 of the Agreement is hereby amended and supplemented by adding the following sentences at the end thereof: 

“Employee shall be paid his compensation due under this Section in equal monthly installments on the last day of each month (or otherwise in accordance with the Corporation’s established payroll policies) commencing on
the last day of the month in which the separation from service occurs. Notwithstanding the foregoing, if at the time of separation from service Employee is a “specified

employee” within the meaning of Section 409A, then the payments otherwise due Employee during the first six months after separation from service shall be paid in a lump sum on the first day of the seventh month following
separation, unless the Corporation, in its sole discretion, determines that the payments otherwise payable during the first six months following separation will not constitute a deferral of compensation under the exception for separation pay due to
involuntary separation from service or participation in a window program set forth in Income Tax Regulation Section 1.409A -1(a)(9)(ii).” 

4.     Amendment to Section 6.4. Section 6.4 of the Agreement is hereby amended and supplemented by adding the following sentences at the end thereof: 

“The Award shall be paid within ninety (90) days following the sale. Notwithstanding the foregoing, if at the time of separation from service Employee is a “specified employee” within the meaning of Section 409A,
then payment of the Award shall not be made before the date which is six (6) months after the date on which separation from service occurred.” 

5.     Effectiveness.  This Amendment shall be effective as of the date first written above. Except as specifically amended by this Amendment, all other terms and conditions of the Agreement shall remain in full force and effect and are hereby ratified and confirmed. 

6.     Miscellaneous. This Amendment shall be deemed to be a contract made under the laws of the State of Ohio and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts made and to be performed entirely within such State. If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to
be invalid, void or unenforceable, the remainder of the terms, provisions, covenants, and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and attested, all as of the day and year first above written. 

	 	REX RADIO AND TELEVISION,
        INC. 	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/
        Stuart A. Rose	 
	 	 	Stuart A. Rose	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	EMPLOYEE 	 
	 	 	 	 
	 	 	 	 
	 	/s/
        David L. Bearden	 
	 	David L. Bearden	 

2c53068_ex10f.htm

Exhibit 10(f)

AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT

       THIS AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT (the “Amendment”) is entered into as of the 6th day
of March, 2008 between Rex Radio and Television, Inc., an Ohio corporation (the “Corporation”), and David L. Bearden (the “Employee”). 

Recitals

      A.      The Corporation and the Employee entered into an Employment Agreement dated October 11, 2005, as amended by Amendment No. 1 to Employment Agreement dated December 10, 2007 (the “Agreement”). 

      B.      The Corporation and the Employee desire to amend the terms and conditions of the Agreement as described herein. 

      NOW, THEREFORE, the Corporation and the Employee hereby amend the Agreement as follows: 

1.     Definitions. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Agreement. 

2.     Amendment to Section 4.3.  The first paragraph of Section 4.3 of the Agreement is hereby amended to read in its entirety as follows: 

“Bonus. In addition to Employee’s salary as provided in Section 3.1, Employee shall be entitled to an annual cash bonus computed based upon the earnings before
  income taxes (“EBT”) of the retail business of REX Stores Corporation and its subsidiaries (“REX”) determined by the independent public accountants then engaged by REX.  EBT shall not include (i) any income from REX’s
  synthetic fuel or other alternative energy investments, (ii) any deduction for Stuart A. Rose’s bonus as Chief Executive Officer of the Corporation, (iii) any expenses of REX relating to stock options, and (iv) any extraordinary income,
  expense, gain or loss incurred by REX, including, but not limited to, any extraordinary income, expense, gain or loss from restructuring, store closing, sale of real estate and/or partial or complete sale of the retail business.” 

3.     Application of Amended Section 4.3. Section 4.3 as amended hereby shall apply to the computation of Employee’s bonus for the fiscal year ended January 31, 2008 and
beyond. 

4.     Effectiveness.  This Amendment shall be effective as of the date first written above. Except as specifically amended by this Amendment, all other terms and conditions of the Agreement shall remain in full force and effect and are hereby ratified and confirmed. 

5.     Miscellaneous. This Amendment shall be deemed to be a contract made under the laws of the State of Ohio and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts made and to be performed entirely within such

State. If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants, and
restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and attested, all as of the day and year first above written. 

	 	REX RADIO AND TELEVISION,
        INC. 	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/
        Stuart A. Rose	 
	 	 	Stuart A. Rose	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	EMPLOYEE 	 
	 	 	 	 
	 	 	 	 
	 	/s/
        David L. Bearden	 
	 	David L. Bearden	 

 

2Exhibit
10.1

       

      Restructuring
Agreement

       

      Restructuring Agreement (the “Agreement”), dated as of April 11, 2008, among Tekni-Plex, Inc. (“Tekni-Plex”) and its domestic subsidiaries party
hereto (the “Subsidiaries”, and together with Tekni-Plex, the
“Company”), and the parties signatory hereto (each a “Party” and collectively the “Parties”).

       

      WHEREAS, the Parties hereto seek to enter into this Agreement to evidence and memorialize their support for the
Restructuring on the terms and conditions set forth
in the term sheet attached
hereto as Exhibit A (the “Term
Sheet”).1

       

      NOW
THEREFORE, in consideration of the promises and the mutual covenants and
agreements set forth herein, the Parties hereby agree as follows:

       

      1. Support
for the Term Sheet.  Subject to the
conditions set forth therein and to definitive documentation consistent with the
Term Sheet, each Party hereto hereby agrees to take all actions reasonably
necessary to negotiate, document and consummate the transactions contemplated by
the Restructuring; provided
however that no Party hereto shall have any liability to any other Party
hereto for the failure of any class of security holders to reach the requisite
consent thresholds described in the Term Sheet if such Party acts in good faith
and complies with the terms of this Section 1.  Upon the failure of
any condition set forth in the Term Sheet to be satisfied (by the date required
by such condition, if applicable), this Agreement shall terminate and each Party
shall be relieved of any and all obligations to take any further action in
connection with the Restructuring (except as expressly provided for in such
condition).

       

      2. Effectiveness.  This Agreement
shall become effective upon its execution by (i) the Company, (ii) entities that have
represented to Paul,
Weiss, Rifkind, Wharton & Garrison LLP that they hold at least 91% of the Subordinated Notes and at least 67% of the Second Lien Notes, (iii) Weston Presidio on behalf of each of its funds that holds Preferred Stock, (iv) Dr. F. Patrick
Smith, (v) Tekni-Plex Partners LLC and (vi) MST/TP Partners LLC.

       

      3. Successors
and Assigns.  This Agreement shall be binding upon and inure to
the benefit of the Parties hereto and each of their respective successors,
assigns, heirs and personal representatives.

       

      4. Third-Party
Beneficiaries.  Nothing contained
in this Agreement shall confer any rights or remedies under or by reason of this
Agreement on any person or entity other than the Parties hereto, nor shall
anything in this Agreement relieve or discharge the obligation or liability of
any third party to any Party to this Agreement.

       

       

      
        _______________

        1 Each
capitalized term used but not defined herein shall have the meaning ascribed to
it in the Term Sheet.

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      5. Authority.  Any
person signing this Agreement in a representative capacity (i) represents and
warrants that he/she is authorized to sign this Agreement on behalf of the Party
he/she represents and that his/her signature upon this Agreement will bind the
represented Party to the terms of this Agreement, and (ii) acknowledges that the
other Party to this Agreement has relied upon such representation and
warranty.

       

      6. Counterparts/Facsimile
Transmission.  This Agreement may be signed in counterparts,
each of which, when taken together, shall be deemed an
original.  Execution of this Agreement is effective if a signature is
delivered by facsimile transmission or electronic (e.g., “pdf”)
transmission.

       

      7. Governing
Law.  This Amendment shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its choice
of law provisions.

       

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

       

      Remainder
of Page Left Intentionally Blank

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
      

       

      
        	 	
                TEKNI-PLEX,
      INC.

                

                By: /s/ James E.
      Condon

                Name:  James
      E. Condon

                Title:   Chief
      Financial Officer

                

                SUBSIDIARIES:

                

                PURTEC
      CORPORATION

                NATVAR
      HOLDINGS, INC.

                TRI-SEAL
      HOLDINGS, INC.

                PLASTIC
      SPECIALTIES AND TECHNOLOGIES, INC.

                BURLINGTON
      RESINS, INC.

                PLASTIC
      SPECIALTIES AND TECHNOLOGIES

                INVESTMENTS,
      INC.

                DISTRIBUTORS
      RECYCLING, INC.

                TPI
      ACQUISITION SUBSIDIARY, INC.

                TP/ELM
      ACQUISITION SUBSIDIARY, INC.

                

                By: /s/  James
      E. Condon

                Name:  James
      E. Condon

                Title:   Chief
      Financial Officer

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

       

       

      
        	 	
                Dr.
      F. Patrick Smith

                

                

                By:  /s/ Dr.
      F. Patrick Smith

                Name:  Dr.
      F. Patrick Smith

              

      

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                Tekni-Plex
      Partners LLC,

                by
      its Managing Member

                Tekni-Plex
      Management LLC

                

                

                By:
      /s/ Dr. F.
      Patrick
      Smith                                                             

                Name:
      Dr. F. Patrick Smith

                Title:
      Managing Member of

                Tekni-Plex
      Management LLC

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                MST/TP
      Partners LLC,

                by
      its Managing Member

                Tekni-Plex
      Management LLC

                

                By:
      /s/ Dr. F.
      Patrick
      Smith                                                             

                Name:
      Dr. F. Patrick Smith

                Title:
      Managing Member of

                Tekni-Plex
      Management LLC

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

 

      
        	
                WESTON
      PRESIDIO SERVICE COMPANY LLC

                 

                By:  /s/ David
      Ferguson        
      

                Name:  David
      Ferguson

                 

                 

                 

                 

              	
                WESTON
      PRESIDIO CAPITAL III, L.P.

                 

                WPC
      ENTREPRENEUR FUND, L.P.

                 

                By:
      Weston Presidio Capital

                Management
      III, LLC

                 

                Their
      general partner

                 

                By:  /s/ David
      Ferguson        
      

                Name:  David
      Ferguson

                 

                 

              
	
                WESTON
      PRESIDIO CAPITAL IV, L.P.

                 

                WPC
      ENTREPRENEUR FUND II, L.P.

                 

                By:  Weston
      Presidio Capital Management

                IV,
      LLC

                 

                Their
      general partner

                 

                By:  /s/ David
      Ferguson     

                Name:  David
      Ferguson

                 

                 

              	 
      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      

      
        
          	 	
                  AVENUE
      INVESTMENTS, L.P.

                   

                	 
	 	
                  By:
      

                	
                  Avenue
      Partners, LLC,
its General Partner

                   

                	 
	
                   

                	
                  By:
      

                	/s/ Sonia
      Gardner 	 
	 	 	Name:
      Sonia Gardner 	 
	 	 	Title:
      Member 	 

        

      

      
 

      
        
          
            	 	
                    AVENUE-CDP GLOBAL OPPORTUNITIES
      FUND, L.P.

                     

                  	 
	 	
                    By:
      

                  	
                    Avenue
      Global Opportunities Fund GenPar, LLC,
its General Partner

                     

                  	 
	
                     

                  	
                    By:
      

                  	/s/ Sonia
      Gardner 	 
	 	 	Name:
      Sonia Gardner 	 
	 	 	Title:
      Member 	 

          

        
           

          
            
              
                	 	
                        
                          AVENUE INTERNATIONAL MASTER,
      L.P.

                           

                        

                      	 
	 	
                        By:
      

                      	
                        Avenue
      International Master GenPar, Ltd.,
its General Partner

                         

                      	 
	
                         

                      	
                        By:
      

                      	/s/ Sonia
      Gardner 	 
	 	 	Name:
      Sonia Gardner 	 
	 	 	Title:
      Member 	 

              

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

      

       

       

      
         

        
          
            
              	 	
                      
                        
                          AVENUE SPECIAL SITUATIONS FUND IV,
      L.P.

                        

                      

                    	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	
                      Avenue
      Capital Partners IV, LLC,
its General partner

                       

                    	 
	 	
                      By:
      

                    	GL Partners IV,
      LLC,

                      its General
      Partner

                    	 

            

            
              
                
                  
                    	
                             

                          	
                            By:
      

                          	/s/ Sonia
      Gardner 	 
	 	 	Name:
      Sonia Gardner 	 
	 	 	Title:
      Member 	 

                  

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

              

            

          

        

      

       

       

      
         

         

        
           

          
            
              
                	 	
                        
                          
                            AVENUE SPECIAL SITUATIONS FUND V,
      L.P.

                          

                        

                      	 
	 	 	 	 
	
                         

                      	
                        By:
      

                      	
                        Avenue
      Capital Partners V, LLC,
its General partner

                         

                      	 
	 	
                        By:
      

                      	GL Partners V,
      LLC,

                        its General
      Partner

                      	 

              

              
                
                  
                    
                      	
                               

                            	
                              By:
      

                            	/s/ Sonia
      Gardner 	 
	 	 	Name:
      Sonia Gardner 	 
	 	 	Title:
      Member 	 

                    

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                   

                  
                    

                    

                    

                    
                      
                        	 	BARCLAYS
      BANK, PLC	 
	 	 	 	 
	
                                 

                              	
                                By:
      

                              	/s/ Brian
      Berman	 
	 	 	Name: Brian
      Berman 	 
	 	 	Title:
      Managing Director	 

                      

                    

                    

                  

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                   

                  
                    

                    

                    
                      
                        	 	MORGAN
      STANLEY & CO., INC	 
	 	 	 	 
	
                                 

                              	
                                By:
      

                              	/s/ Andrew
      Brenner	 
	 	 	Name: Andrew
      Brenner	 
	 	 	Title:
      Managing Director	 

                      

                    

                    

                     

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                     

                  

                

              

            

          

        

      

      
         

        
          
            
              	 	
                      
                        
                          
                            OCM
      OPPORTUNITIES FUND V, L.P.

                          

                        

                      

                    	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	
                      OCM
      Opportunities Fund V GP, L.P.
Its: General Partner

                       

                    	 
	 	
                      By:
      

                    	Oaktree Fund GP I, L.P.
      

                      Its: General
      Partner

                    	 

            

          

        

      

       

      
        

        
          
            	
                     

                  	
                    By:
      

                  	/s/
      Robert J. O'Leary	 
	 	 	Name: Robert
      J. O'Leary	 
	 	 	Title:
      Managing Director	 

          

        

        
           

          
            

            
              
                	
                         

                      	
                        By:
      

                      	/s/
      Lowell W. Hill	 
	 	 	Name: Lowell
      W. Hill	 
	 	 	Title:
      Managing Director	 

              

            

            

          

        

      

      
         

        
          
            
              
                	 	
                        
                          
                            
                              OCM
      OPPORTUNITIES FUND VI, L.P.

                            

                          

                        

                      	 
	 	 	 	 
	
                         

                      	
                        By:
      

                      	
                        OCM
      Opportunities Fund VI GP, L.P.
Its: General Partner

                         

                      	 
	 	
                        By:
      

                      	Oaktree Fund GP I, L.P.
      

                        Its: General
      Partner

                      	 

              

            

          

        

         

        
          

          
            
              	
                       

                    	
                      By:
      

                    	/s/
      Robert J. O'Leary	 
	 	 	Name: Robert
      J. O'Leary	 
	 	 	Title:
      Managing Director	 

            

          

          
             

            
              

              
                
                  	
                           

                        	
                          By:
      

                        	/s/
      Lowell W. Hill	 
	 	 	Name: Lowell
      W. Hill	 
	 	 	Title:
      Managing Director	 

                

              

              

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
           

          
            
              
                
                  	 	
                          
                            
                              
                                OCM
      OPPORTUNITIES FUND VII, L.P.

                              

                            

                          

                        	 
	 	 	 	 
	
                           

                        	
                          By:
      

                        	
                          OCM
      Opportunities Fund VII GP, L.P.
Its: General Partner

                           

                        	 
	 	
                          By:
      

                        	
                          OCM
      Opportunities Fund VII GP Ltd.
Its: General Partner

                           

                        	 
	 	
                          By:
      

                        	Oaktree
      Capital Management, L.P. 
Its: Director	 

                

              

            

          

           

          
            

            
              
                	
                         

                      	
                        By:
      

                      	/s/
      Robert J. O'Leary	 
	 	 	Name: Robert
      J. O'Leary	 
	 	 	Title:
      Managing Director	 

              

            

            
               

              
                

                
                  
                    	
                             

                          	
                            By:
      

                          	/s/
      Lowell W. Hill	 
	 	 	Name: Lowell
      W. Hill	 
	 	 	Title:
      Managing Director	 

                  

                

                

              

            

          

        

      

      
        
           

          
            
              
                
                  	 	
                          
                            
                              
                                OCM
      PRINCIPAL OPPORTUNITIES FUND III, L.P.
OCM PRINCIPAL OPPORTUNITIES FUND
      IIIA, L.P.

                              

                            

                          

                        	 
	 	 	 	 
	
                           

                        	
                          By:
      

                        	
                          OCM
      Opportunities Fund III GP, L.P.
Its: General Partner

                           

                        	 
	 	
                          By:
      

                        	Oaktree Fund GP I, L.P.
      

                          Its: General
      Partner

                        	 

                

              

            

          

           

          
            

            
              
                	
                         

                      	
                        By:
      

                      	/s/
      Richard J. Goldstein	 
	 	 	Name: Richard
      J. Goldstein	 
	 	 	Title:
      Managing Director	 

              

            

            
               

              
                

                
                  
                    	
                             

                          	
                            By:
      

                          	/s/
      Matthew C. Wilson	 
	 	 	Name: Matthew
      C. Wilson	 
	 	 	Title:
      Vice President	 

                  

                

                 

                 

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

              

            

          

        

      

       

       

      
         

        
          
             

            
              
                
                  
                    	 	
                            
                              
                                
                                  OCM
      PRINCIPAL OPPORTUNITIES FUND IV, L.P.

                                

                              

                            

                          	 
	 	 	 	 
	
                             

                          	
                            By:
      

                          	
                            OCM
      Opportunities Fund IV GP, L.P.
Its: General Partner

                             

                          	 
	 	
                            By:
      

                          	
                            OCM
      Opportunities Fund IV GP Ltd.
Its: General Partner

                             

                          	 
	 	
                            By:
      

                          	Oaktree
      Capital Management, L.P. 
Its: Director	 

                  

                

              

            

             

            
              

              
                
                  	
                           

                        	
                          By:
      

                        	/s/
      Richard J. Goldstein	 
	 	 	Name: Richard
      J. Goldstein	 
	 	 	Title:
      Managing Director	 

                

              

              
                 

                
                  

                  
                    
                      	
                               

                            	
                              By:
      

                            	/s/
      Matthew C. Wilson	 
	 	 	Name: Matthew
      C. Wilson	 
	 	 	Title:
      Vice President	 

                    

                  

                  

                

              

            

          

        

        
          
             

            
              
                
                  
                    	 	
                            
                              
                                
                                  OAKTREE
      VALUE OPPORTUNITIES FUND, L.P.

                                

                              

                            

                          	 
	 	 	 	 
	
                             

                          	
                            By:
      

                          	
                            Oaktree
      Value Opportunities Fund GP, L.P.
Its: General Partner

                             

                          	 
	 	
                            By:
      

                          	Oaktree Value Opportunities Fund
      GP Ltd. 

                            Its: General
      Partner

                             

                          	 
	 	
                            By:
      

                          	Oaktree
      Capital Management, L.P. 
Its: Director	 

                  

                

              

            

             

            
              
                

                
                  
                    	
                             

                          	
                            By:
      

                          	/s/
      Robert J. O'Leary	 
	 	 	Name: Robert
      J. O'Leary	 
	 	 	Title:
      Managing Director	 

                  

                

                
                   

                  
                    

                    
                      
                        	
                                 

                              	
                                By:
      

                              	/s/
      Lowell W. Hill	 
	 	 	Name: Lowell
      W. Hill	 
	 	 	Title:
      Managing Director	 

                      

                    

                    

                  

                

              

               

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

               

               

            

          

        

      

       

      Exhibit
A

       

      TEKNI-PLEX, INC.

       

      TERM SHEET FOR RESTRUCTURING AND EXCHANGE
OFFER

       

       

      This term
sheet describes the principal terms of a proposed restructuring (the “Restructuring”, and
its effective date, the “Effective Date”) of
Tekni-Plex, Inc. (“Tekni-Plex”),
together with its domestic subsidiaries (collectively, the “Company”), in the
context of an out of court restructuring and exchange offer with the support of
the requisite2 holders of each of the following securities
issued by Tekni-Plex: (i) 12 3⁄4% Senior Subordinated Notes due 2010 (the “Subordinated Notes”)
issued under that certain Indenture, dated as of June 21, 2000 (as supplemented
on May 6, 2002, August 22, 2002, April 25, 2005 and February 14, 2008 (the
“Subordinated Notes
Indenture”), (ii) Series A Preferred Stock (the “Preferred Stock”) and
(iii) common stock (the “Common
Stock”).

       

      
        	
                Exchange
      Proponent

              	 	
                Company

                 

              
	
                Treatment
      of Claims

              	 	 
      
	
                ABL Facility

              	 	
                Company
      will continue to honor the Amended and Restated Credit Agreement dated as
      of February 14, 2008 among Tekni-Plex, the lenders party thereto, Citicorp
      USA, Inc. and General Electric Capital Corporation (the “ABL
      Facility”).

                 

                Company
      shall obtain a new credit facility, on terms satisfactory to the
      Consenting Noteholders (as defined below) and the Company, to refinance
      the ABL Facility in the event the existing lenders thereunder do not agree
      to finance the Company on substantially identical terms to the ABL
      Facility, or on terms otherwise acceptable to the Company and the
      Consenting Noteholders.

                 

              
	
                First Lien Notes

                and
      Second Lien Notes

              	 	
                Company
      will continue to honor the 10 7/8% Senior Secured Notes due 2012 issued
      pursuant to the Indenture dated as of June 10, 2005 (as supplemented from
      time to time, the “First Lien
      Indenture”) among Tekni-Plex and HSBC Bank USA, National
      Association (the “First Lien
      Notes”) and the 8 3⁄4%

              

      

       

        

      
        
          
            _______________

            2Requisite
thresholds described below.

          

           

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	
                Senior
      Secured Notes due 2013 issued pursuant to the Indenture dated as of
      November 21, 2003 (as supplemented from time to time, the “Second Lien
      Indenture”) among Tekni-Plex and HSBC Bank USA, National
      Association (the “Second Lien
      Notes”).

                 

              
	 	 	
                Certain
      Consenting Noteholders shall provide a take-out facility/tender process to
      replace, redeem or repurchase, as necessary, any First Lien Notes that are
      put in connection with the occurrence of a Change in Control (as defined
      in the First Lien Indenture).

                 

              
	
                Subordinated
Notes

              	 	
                Subordinated
      Notes held by noteholders consenting to the Restructuring (the “Consenting
      Noteholders”) will be exchanged for 100% of common stock in
      reorganized Tekni-Plex (the “New Common
      Stock”), subject to dilution by the Management Incentive Plan
      (defined below) and exercise of the Warrants (defined below).

                 

                Any
      party (each a “Party”, and
      collectively the “Parties”) to
      the Restructuring Agreement to which this term sheet is exhibited, that
      holds Preferred Stock or Common Stock and holds Subordinated Notes shall
      exchange Subordinated Notes on the terms set forth herein.

                 

              
	
                General Unsecured
      Creditors

              	 	
                General
      unsecured claims will be paid in the ordinary course by the
      Company.

                 

                The
      Second Amended and Restated Employment Agreement dated May 13, 2005, by
      and between Tekni-Plex, Inc. and Dr. F. Patrick Smith (as extended,
      amended, or supplemented prior to the Effective Date, the “Smith Employment
      Agreement”) shall be terminated (including its non-competition
      provisions but excluding confidentiality provisions) and all claims
      thereunder waived by all Parties; provided, however, (i)
      the Company shall continue to pay ordinary course benefits and business
      expenses (excluding golf club membership or any other extraordinary
      expense) to Dr. F. Patrick Smith accrued up to and including the Effective
      Date and (ii) until the first anniversary of the Effective Date, Dr. F.
      Patrick Smith shall be obligated to comply with the covenants restricting
      solicitation of employees of the Company in accordance with Section
      

              

      

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	
                10(iv)
      of the Smith Employment Agreement.  The Company shall pay all
      reasonable costs and expenses of Tekni-Plex Partners LLC and MST/TP
      Partners LLC arising in connection with implementation of the
      Restructuring.

              
	 	 	 
	
                Series A Preferred
      Stock

              	 	
                Preferred
      Stock will be exchanged or redeemed on the Effective Date for a
      distribution of the following warrant securities, which shall be
      exercisable into New Common Stock and subject to dilution by any equity
      issuances other than the warrants themselves, subject to anti-dilution
      protection as described below (the “Warrants”):

                 

                ·
       Series
      A Warrants:  four year warrants exercisable into 2.5% of the
      post-exercise New Common Stock (not subject to dilution for the issuance
      of other Warrants) with a strike price of 75% of the Pre-Investment Equity
      Value;

                 

                ·
       Series
      B Warrants:  five year warrants exercisable into 5% of the
      post-exercise New Common Stock (not subject to dilution for the issuance
      of other Warrants) with a strike price of 100% of the Pre-Investment
      Equity Value; and

                 

                ·
       Series
      C Warrants:  five year warrants exercisable into 5% of the
      post-exercise New Common Stock (not subject to dilution for the issuance
      of other Warrants) with a strike price of 110% of the Pre-Investment
      Equity Value.

                 

                “Pre-Investment
      Equity Value” means the sum of: (1) the aggregate principal amount of
      the Subordinated Notes exchanged for New Common Stock, (2) all accrued and unpaid
      interest due under the Subordinated Notes exchanged for New Common Stock through and including the
      Effective
      Date (which, for the avoidance of
      doubt, shall be the date on which such exchange is consummated), including additional interest
      due on any missed interest payments to the extent provided for under the
      Subordinated Note Indenture and (3) total restructuring
      related fees and
      expenses of the Company and advisors to the Consenting

              

      

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

       

      
        	 	 	
                Noteholders, in an amount not to exceed $10,000,000.

                 

              
	 	 	
                The definitive documentation
      for the Warrants shall contain
      customary terms and
      protections, including:  (a) cashless exercise rights upon the
      occurrence of a liquidity event, (b) anti-dilution protection for
      stock splits, stock
      reclassifications, dividends in kind and other “organic” changes, (c) information rights (subject to
      customary confidentiality provisions) and notice of certain corporate
      events and (d)
      Preemptive Rights (as defined below) on an as-converted basis.  The Warrants will be transferable by each holder (it being
      understood that affiliated funds or entities constitute a single
      consolidated
      holder) in a single
      transaction, subject
      to a right of first refusal by any entity that together with
      affiliates, holds more than 30% of the New Common Stock.

                 

              
	 	 	
                Upon the exercise of the Warrants,
      the holders of Warrants will be required to enter into a shareholder
      agreement (the “Shareholder
      Agreement”), which shall contain customary
      terms and conditions, including: (a) tag-along (such that the
      holders of the Warrants are entitled to exit on a pro rata basis along
      side the other holders of New Common Stock on any transaction in which the holders of New
      Common Stock are offered tag-along rights) and drag-along rights, (b) proportionate piggyback
      registration rights (such that the holders of the Warrants shall be
      included in any offering on a pro rata basis if other holders of New
      Common Stock are allowed to participate), (c) Preemptive
      Rights (on any equity issuance or other transaction in which
      the holders of New Common Stock or any affiliates thereof
      are offered the
      opportunity to participate) (the “Preemptive
      Rights”), and (d) information rights
      (subject to customary confidentiality provisions) and notice of
      certain corporate
      events.  The holders of the Preferred Stock shall be consulted with in good
      faith on the Shareholder Agreement, and shall be given a reasonable
      opportunity to review it, prior to its execution, to ensure that it contains the provisions
      set forth in clauses
      (a) through (d) above
      and that the basic
      protections
      customarily
      associated with such
      provisions are included therein, it being understood
      

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

       

      
        	 	 	
                that the holders of Preferred
      Stock shall
      not be permitted to negotiate cutbacks,
      percentages, notice or exercise periods and other similar provisions with
      respect to clauses (a) through (d) above (clauses (a) through (d), subject
      to the limitations above, collectively, the “Basic
      Protections”) and it being further understood
      that so long as the
      Basic Protections
      (which shall
      not discriminate
      against the holders of the Warrants) are provided therein it shall not be a condition
      precedent to the Restructuring that such
      holders are satisfied with the Shareholder
      Agreement.  For the avoidance of doubt, it is
      understood that the
      Shareholder Agreement will not have lesser protections for holders of New
      Common Stock received upon exercise of Warrants than other minority
      shareholders.

              
	 	 	 
	
                Common Stock

              	 	
                On
      the Effective Date, Common Stock will be cancelled, redeemed or purchased,
      and each holder will receive its pro rata distribution of
      $250,000.  The form of this distribution will be structured to
      comply with the terms of the ABL Facility, the First Lien Indenture, the
      Second Lien Indenture and the Subordinated Notes Indenture.  The
      Restructuring documentation will provide that upon receipt of its pro rata
      share of such distribution, each member of Tekni-Plex Partners LLC and
      MST/TP Partners LLC shall be deemed to have consented to the Restructuring
      and to have waived all claims in connection therewith.

                 

                Existing
      options, warrants or similar instruments convertible, exchangeable or
      exercisable into the Common Stock will be cancelled.

                 

                The
      Company will indemnify Dr. F. Patrick Smith, acting within the authority
      granted to him, and solely in his capacities, as Managing Member of
      Tekni-Plex Management LLC, Managing Member of Tekni-Plex Partners LLC
      (indirectly, as Managing Member of Tekni-Plex Management LLC) and Managing
      Member of MST/TP Partners LLC (indirectly, as Managing Member of
      Tekni-Plex Management LLC) for any claims and causes of action asserted
      against him by members of Tekni-Plex Management LLC, Tekni-Plex Partners
      LLC or MST/TP Partners LLC solely in connection with actions taken in
      connection with 

              

      

       

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	
                approving
      and implementing the Restructuring Agreement.  For the avoidance
      of doubt, the foregoing indemnity shall not cover any claims or causes of
      actions based on (i) facts or circumstances occurring or arising prior to
      the date on which the Company’s Board of Directors approved the
      Restructuring Agreement, (ii) Dr. F. Patrick Smith’s actions or inactions
      as an officer or director of Tekni-Plex or any of its subsidiaries or
      (iii) any payments or benefits received by Dr. F. Patrick Smith and his
      affiliates from Tekni-Plex or any of its subsidiaries.

              
	 	 	 
	
                Senior
      Management

              	 	
                Senior
      management to be satisfactory to Consenting Noteholders.

                 

              
	
                Board
      of Directors

              	 	
                To
      be appointed by Consenting Noteholders.

                 

              
	
                Management
      Incentive Plan

              	 	
                A
      management incentive plan providing for awards of options/restricted stock
      to be implemented in connection with the Restructuring.

                 

              
	
                Releases

              	 	
                Mutual
      releases of claims and causes of action assertable (whether directly or
      derivatively) against the Company, the Board of Directors (including its
      members acting in their capacity as officers, where applicable), Weston
      Presidio and its related funds that hold Preferred Stock or LLC interests
      in entities owning Common Stock, and the general partners of each such
      fund (together with Michael F. Cronin, the “Weston Presidio
      Entities”), other holders of Preferred Stock who consent to the
      Restructuring and/or holders of Common Stock (including those who hold LLC
      interests in entities owning Common Stock) who consent to the
      Restructuring and the Consenting Noteholders, in each case in their
      capacity as such.

                 

                The
      release shall apply, without exception or limitation, to all claims and
      causes of action in connection with, arising from or related to (i) the
      Restructuring (other than for actual fraud), (ii) infusions of capital by
      a Party (other than the Company) into the Company including the Common
      Stock (directly or indirectly through Tekni-Plex Management LLC,
      Tekni-Plex Partners LLC or MST/TP Partners LLC) and the Preferred Stock
      and (iii) all payments and transactions set forth on any
  

              

      

       

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

       

      
        	 	 	
                Party’s
      Disclosure Schedule (as defined below).  The release shall also
      apply to all other claims and causes of action not included in clauses
      (i)-(iii) above, provided, however, that
      solely as to such other claims and causes of action not included in
      clauses (i)-(iii) above, the release shall not apply to (A) any claims and
      causes of action for payments or economic benefits that are unlawful, in
      violation of any legal duty or recoverable under any statute, received by
      the releasee or an affiliate of the releasee directly from Tekni-Plex or
      any of its subsidiaries since May 1, 2002 (with respect to the Weston
      Presidio Entities and Dr. F. Patrick Smith) or January 1, 2007 (with
      respect to each other Disclosing Party) or (B) any claims or causes of
      action for, actual fraud, intentional misconduct, conscious disregard of
      duty or knowing violation of law; provided however, for the avoidance of
      doubt, the foregoing exclusions in clause (B) shall not include any claims
      or cause of action for which the Company’s officers and directors are
      currently indemnified or exculpated.  The Parties that hold
      Subordinated Notes hereby represent that (i) they do not currently intend
      to prosecute any claims or causes of action against any Party, in each
      case of the type described in the immediately preceding sentence and (ii)
      they are aware of the significant deficiencies in the Company’s internal
      controls (which have been described in various of the Company’s public
      filings).

                 

              
	 	 	
                In
      connection with the release contained herein, (a) the
      Weston Presidio
      Entities shall deliver a schedule (the “WP Disclosure
      Schedule”) setting forth any payments or any
      economic benefits received by any Weston Presidio
      Entity or any
      affiliate thereof directly from Tekni-Plex or any of
      its subsidiaries, in
      each case since May
      1, 2002, (b) each of
      the members of the Board of Directors (other than Michael F. Cronin
      and Dr. F. Patrick Smith) shall deliver a schedule (the
      “Board
      Member Disclosure Schedule”) setting forth any payments
      or economic
      benefits received by
      such
      member or
      any affiliate of such respective member directly from Tekni-Plex or any of
      its subsidiaries, in each case since January 1, 2007 and (c) Dr. F.
      Patrick Smith shall deliver a schedule (the “Smith Disclosure
      Schedule”, and together with the WP Disclosure Schedule and the
      Board Member Disclosure Schedule, 

              

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

       

      
        	 	 	
                
                  the
      “Disclosure
      Schedules”, and the provider of a Disclosure Schedule, the “Disclosing
      Party”) setting forth
      any payments or
      economic benefits received by him or any of his affiliates (including family
      members) directly
      from
      Tekni-Plex or any of its subsidiaries, in each case since May 1,
      2002.

                   

                  Each
      Disclosing Party shall provide its Disclosure Schedule to Paul, Weiss,
      Rifkind, Wharton & Garrison LLP as counsel to certain holders of
      Subordinated Notes (the “Majority
      Noteholders”) on or before April 11, 2008.  If any
      Disclosure Schedule is not satisfactory to the Majority Noteholders based
      solely on any material payments or transactions listed thereon that are
      not set forth on Schedule I hereto, the Majority Noteholders may terminate
      the Restructuring Agreement by delivering written notice to each of the
      Parties within two business days after the transmission of such Disclosure
      Schedule to counsel to the Majority Noteholders.  If no such
      termination notice has been delivered by such time, the applicable
      Disclosure Schedule shall be considered “final”, and any asserted or
      unasserted objections thereto irrevocably waived.

                   

                  The
      release in favor of the Weston Presidio Entities shall, in no event, be on
      terms less favorable than the release given to Dr. F. Patrick
      Smith.

                   

                  Each
      of the officers and directors of the Company shall maintain (and shall not
      be deemed to have released or waived) their indemnification and
      exculpation rights under the Amended and Restated Certificate of
      Incorporation of Tekni-Plex, Inc. dated May 13, 2005 and the Amended and
      Restated By-Laws.

                   

                  Any
      reference to a party getting a release will also include its
      advisors.

                   

                  The
      foregoing releases shall not release any party (or its advisors) from any
      duty of confidentiality to the Company.

                

              
	 	 	 
	
                Conditions

              	 	
                Consent
      to Restructuring shall be obtained on or before the Effective Date from
      holders of not less than (i) 99.5% of Preferred Stock, (ii) 100% of Common
      Stock, (iii) 85% of the indirect interests in Common Stock (based on unit
      holdings of Tekni-Plex Partners LLC

              

      

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

       

       

       

      
        	 	 	
                
                  and
      MST/TP Partners LLC) and (iv) 95% of Subordinated Notes.  The
      conditions set forth in clauses (i), (iii) and (iv) of the
      immediately preceding sentence shall be waivable by the Company and
      holders of a majority in principal amount of the Subordinated
      Notes.  In the event the failure to obtain requisite thresholds
      of consent by the holders of Preferred Stock and the holders of indirect
      interests in Common Stock is the reason the Restructuring has not been
      consummated, the Company will (and its current intention is to do so in
      such event) promptly commence a prepackaged chapter 11 bankruptcy
      proceeding to implement the terms outlined herein, unless the Board of
      Directors, in light of any material increase in the Company’s valuation,
      determines in good faith that taking such action would be reasonably
      expected to result in a breach of its fiduciary duties
      under applicable law.

                   

                  Each
      Disclosure Schedule shall become final on or before April 15,
      2008.

                   

                  Except
      with respect to the Shareholder Agreement, which shall contain and be
      subject to review for the Basic Protections and shall otherwise be in form
      and substance satisfactory to the Consenting Noteholders, all other
      documentation to effectuate the Restructuring shall be in form and
      substance reasonably acceptable to the Parties.

                   

                  Requisite
      lenders under the ABL Facility shall have consented to the Restructuring
      and restricted payments as necessary to allow the Company to redeem or
      exchange the Preferred Stock and distribute $250,000 to holders of Common
      Stock.

                   

                  Consummation
      of the Restructuring and occurrence of the Effective Date shall occur on
      or before May 13, 2008.

                

              

      

       

       

      The terms
set forth in this Term Sheet are part of a comprehensive compromise, each
element of which is an integral aspect of the proposed Restructuring and, as
such, is non-severable.

       

       

       

      9

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