Document:

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                                                                     Exhibit 4.6

                          REGISTRATION RIGHTS AGREEMENT

                             Dated as of May 6, 2002

                                      among

                                TEKNI-PLEX, INC.,

                           THE GUARANTORS NAMED HEREIN

                                       and

                              LEHMAN BROTHERS INC.
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                          REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement (the "Agreement") is dated as of May 6,
2002, 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 LEHMAN BROTHERS
INC. (the "Initial Purchaser").

      This Agreement is entered into in connection with the Purchase Agreement,
dated as of May 1, 2002, 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 $40,000,000 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.

      "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.
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      "Exchange Offer": See Section 2(a).

      "Exchange Registration Statement": See Section 2(a).

      "Exchange Securities": See Section 2(a).

      "Filing Date": The 120th 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.

      "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

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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 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).

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      "Shelf Registration": See Section 3(b).

      "Subsequent Shelf Registration": See Section 3(b).

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

      "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 business, 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

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      respect to Registrable Securities 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 delivery
      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

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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 under 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 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"

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      (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
      reasonably 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

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            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 effective 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

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      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 interest 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, 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

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      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 Securities
      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

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      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.

            (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.

            (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

                                       11
<PAGE>
      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 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

                                       12
<PAGE>
      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 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 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

                                       13
<PAGE>
      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 Securities
      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

                                       14
<PAGE>
      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.

            (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 security
      holders 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 disposition 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").

                                       15
<PAGE>
            (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 in formation 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 Registrable 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.

                                       16
<PAGE>
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 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.

                                       17
<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 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

                                       18
<PAGE>
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 directors, 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

                                       19
<PAGE>
proportion as is appropriate 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, 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.

                                       20
<PAGE>
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 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

                                       21
<PAGE>
      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 hereunder shall be made in writing by hand-delivery,
      registered first-class mail, next-day air courier or telecopy:

                  (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.

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

                                       22
<PAGE>
            (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) Severabilitv. If any term, provision, covenant or restriction of
      this Agreement is held by a court of competent jurisdiction to be invalid,
      illegal, void or un enforceable, 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 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.

                                       23
<PAGE>
      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                               TEKNI-PLEX, INC.

                               By:  /s/ JAMES E. CONDON
                                    -------------------------
                                    Name:  James E. Condon
                                    Title:  Chief Financial Officer

                               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
                               COAST RECYCLING NORTH, INC.
                               PURE TECH APR, INC.
                               TPI Acquisition Subsidiary, Inc.
                                     collectively, the Guarantors

                               By:  /s/ KENNETH BAKER
                                    --------------------------------------------
                                    Name:  Kenneth Baker
                                    Title:  President

                               LEHMAN BROTHERS INC.

                               By:   /s/ MICHAEL KONIGSBERG
                                    --------------------------------------------
                                    Name:  Michael Konigsberg
                                    Title:  Managing Director<PAGE>
                                                                    EXHIBIT 10.1

                MASTER CONVEYANCE OF OVERRIDING ROYALTY INTEREST

                                 BY AND BETWEEN

                                     [EEX],

                                       AND

                                     [TRUST]

                                      DATED

                           ____________________, 2002

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                           <C>
                                    ARTICLE I
                       CERTAIN DEFINITIONS AND REFERENCES

1.1      Certain Defined Terms.................................................1
1.2      References and Titles.................................................2

                                   ARTICLE II
                          OVERRIDING ROYALTY CONVEYANCE

2.1      Grant of Overriding Royalty Interest..................................3
2.2      Overriding Royalty Percentage.........................................3
2.3      Filing Fees...........................................................3

                                   ARTICLE III
                CERTAIN MATTERS RELATED TO THE SUBJECT INTERESTS

3.1      Abandonments..........................................................4
3.2      Contracts with Affiliates and/or Subsidiaries.........................4
3.3      Right to Use Wellbores................................................4
3.4      Amendment of Drilling or Spacing Units/Unitization....................4
3.5      Operations............................................................4

                                   ARTICLE IV
                               CHANGE IN OWNERSHIP

4.1      Change in Ownership...................................................5

                                    ARTICLE V
                  ACCESS TO BOOKS AND RECORDS; CONFIDENTIALITY

5.1      Records...............................................................5
5.2      Confidentiality.......................................................5

                                   ARTICLE VI
                          TITLE MATTERS AND DISCLAIMERS

6.1      Disclaimers...........................................................6

                                   ARTICLE VII
                                   TERMINATION

7.1      Termination of Leases.................................................6

                                  ARTICLE VIII
                                  MISCELLANEOUS

8.1      Governing Law.........................................................6
8.2      No Personal Liability by Grantee......................................7
8.3      Perpetuities..........................................................7
8.4      Intentions of the Parties.............................................7
8.5      Notices...............................................................7
8.6      Amendments............................................................8
8.7      Counterparts..........................................................8
</Table>

                                       i
<PAGE>

<Table>
<S>                                                                           <C>
8.8      Binding Effect........................................................9
8.9      Partition.............................................................9
8.10     Partial Invalidity....................................................9
8.11     Effective Date........................................................9
8.12     Recording.............................................................9

Exhibits
Exhibit A         -  Leases and Subject Interests
Exhibit B         -  Recordable Conveyance
Exhibit C         -  Existing Subject Interests
Exhibit D         -  Sample Calculation of ORRI
</Table>

                                       ii
<PAGE>

                 MASTER CONVEYANCE OF OVERRIDING ROYATY INTEREST

         THIS MASTER CONVEYANCE OF OVERRIDING ROYALTY INTEREST (this "Master
Conveyance") dated as of ____________, 2002 is made by and between [EEX], a
____________________________, as Grantor, and [TRUST] a
__________________________________, as Grantee.

         WHEREAS, capitalized terms used herein and not otherwise defined shall
have the meanings given such terms in Article I below; and

         WHEREAS, Grantor is the owner of certain oil, gas and/or mineral
properties; and

         WHEREAS, Grantor desires to convey to Grantee the Overriding Royalty
Interest;

         NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Grantor and Grantee agree as follows

                                    ARTICLE I
                       CERTAIN DEFINITIONS AND REFERENCES

         1.1 Certain Defined Terms. When used in this Master Conveyance, the
following terms shall have the respective meanings assigned to them in this
Section 1.1:

         "Affiliate" shall mean, with respect to any Person, (a) any other
Person directly or indirectly owning, controlling or holding with power to vote
50% or more of the outstanding voting securities of such Person, (b) any other
Person 50% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held with power to vote by such Person, and (c)
any other Person directly or indirectly controlling, controlled by or under
common control with such Person.

         "Effective Date" shall have the meaning given such term in Section
8.11.

         "Existing Subject Interests" " shall mean all of Grantor's right, title
and interest in and to the Leases described on Exhibit C insofar, and only
insofar as such right, title and interest covers Hydrocarbons produced or that
may be produced from the Subject Formation(s) from and after the Effective Date;
provided, however, that such interest shall not include any right, title or
interest of Grantor in and to any personal property, fixtures, structures or
equipment.

          "Gas" shall mean natural gas, coalbed methane and other gaseous
hydrocarbons.

         "Governmental Authority" shall include the country, the state, county,
city and political subdivisions in which any Person or such Person's property is
located or which exercises valid jurisdiction over any such Person or such
Person's property, and any court, agency, department, commission, board, bureau
or instrumentality of any of them which exercises valid jurisdiction over any
such Person or such Person's property.

<PAGE>

         "Grant Period" shall mean a period of time from the Effective Date
through the fifth anniversary of the Effective Date.

         "Grantee" shall mean the Person named in the preamble to this Master
Conveyance as grantee, and its successors and assigns.

         "Grantor" shall mean the Person named in the preamble of this Master
Conveyance as grantor, and its successors and assigns.

         "Hydrocarbons" shall mean Oil and Gas.

         "Lease" shall mean each Oil, Gas and mineral lease, transfer of
operating rights or other instrument or fee tract related to the area described
on Exhibit A.

         "Non-Affiliate" shall mean with respect to Grantor, any Person who is
not an Affiliate.

         "Oil" shall mean crude oil, condensate and other liquid hydrocarbons.

         "Overriding Royalty Interest" shall mean the overriding royalty
interest created by each of the Recordable Conveyances delivered to Grantee
pursuant to this Master Conveyance.

         "Person" shall mean an individual, partnership (whether general or
limited), corporation (including a business trust), limited liability company,
joint stock company, trust, unincorporated association, bank, joint venture,
firm or other entity.

         "Recordable Conveyance" shall mean a Conveyance of the Overriding
Royalty Interest, in the form of Exhibit B, between Grantor and Grantee, which
assignment is delivered by Grantor to Grantee pursuant to Section 2.1 for filing
in the files of the Minerals Management Service and in those counties and
parishes adjacent to where the Subject Interests are located.

         "Subject Formation" shall mean, for the Subject Interests, Grantor's
interest in the geologic formation (or formations) as described on Exhibit A.

         "Subject Interests" shall mean all of Grantor's right, title and
interest in and to the Leases described on Exhibit A insofar, and only insofar
as such right, title and interest covers Hydrocarbons produced or that may be
produced from the Subject Formation(s) from and after the Effective Date.

         "Total Burdens" shall mean lessors' royalties, overriding royalties,
other royalty interests, reversionary interests, net profit interests,
production payments, subleases, carried interests, the terms of all leases, unit
agreements, pooling agreements, consolidation agreements, operating agreements,
division orders and other similar interests, contracts, agreements, instruments
and burdens that exist with respect to the Subject Interests as of the date of
the acquisition of the Subject Interests by Grantor or its Affiliates.

         1.2 References and Titles. All references in this Master Conveyance to
articles, sections, subsections and other subdivisions refer to corresponding
articles, sections, subsections and other subdivisions of this Master Conveyance
unless expressly provided otherwise. Titles

                                       2
<PAGE>

appearing at the beginning of any of such subdivisions are for convenience only
and shall not constitute part of such subdivisions and shall be disregarded in
construing the language contained in such subdivisions. All references in this
Master Conveyance to schedules or exhibits refer to schedules or exhibits to
this Master Conveyance unless expressly provided otherwise, and all such
schedules and or exhibits are hereby incorporated herein by reference and made a
part hereof for all purposes. The words "this Master Conveyance", "this
instrument", "herein", "hereof", "hereby", "hereunder" and words of similar
import refer to this Master Conveyance as a whole and not to any particular
subdivision unless expressly so limited. The words "include" and "including"
shall mean "including without limitation".

                                   ARTICLE II
                          OVERRIDING ROYALTY CONVEYANCE

         2.1 Grant of Overriding Royalty Interest. Promptly after the Effective
Date, Grantor will cause a Recordable Conveyance to be filed of record in all
appropriate records of the Minerals Management Service and in the counties and
parishes adjacent to where the Existing Subject Interests are located and the
Overriding Royalty Percentage as such term is used in the Recordable Conveyance,
with respect to each of the Existing Subject Interests shall equal the amount
for such property as set forth on Exhibit C. From time to time during the Grant
Period, as Grantor or its Affiliates enter into any additional Leases related to
the Subject Interest, Grantor will cause a Recordable Conveyance to be filed of
record in all appropriate records of the Minerals Management Service and in the
counties or parishes adjacent to where such Subject Interests are located. The
Overriding Royalty Percentage as such term is used in the Recordable Conveyance,
with respect to each Lease within the Subject Interest, shall be determined with
respect to each such Lease as set forth in Section 2.2 below.

         2.2 Overriding Royalty Percentage. The Overriding Royalty Percentage
with respect to each of the Subject Interests shall equal five percent (5%),
proportionately reduced to a 25% working interest (or such lesser working
interest as may be owned by Grantor if less than 25%), subject to the following
two sentences. In the event that Grantor owns or subsequently acquires an
interest in a Lease or portion thereof with Total Burdens in excess of twenty
per cent (20%) but less than thirty per cent (30%), then the Overriding Royalty
Percentage shall be determined by taking the lesser of:

         a) the product of five per cent (5%) times a fraction the numerator of
            which is Available Net Revenue Interest (as defined below) and the
            denominator is eighty per cent (80%); and

         b) Available Net Revenue Interest minus seventy per cent (70%)

where Available Net Revenue Interest is equal to one minus Total Burdens, and
then proportionately reducing that value by the working interest acquired by
Grantor (up to a maximum 25% working interest) in such Lease. In the event that
Grantor owns or subsequently acquires an interest in a Lease with Total Burdens
of thirty percent (30%) or more, no ORRI shall be granted with respect to such
Lease. For purposes of illustration, Exhibit D shows hypothetical calculations
of the ORRI on leases with varying working and net revenue interests.

         2.3 Filing Fees. All documentary, filing and recording fees required to
be paid in connection with the filing and recording of the Recordable Conveyance
and any related documents shall be paid by Grantee.

                                       3
<PAGE>

                                   ARTICLE III
                CERTAIN MATTERS RELATED TO THE SUBJECT INTERESTS

         3.1 Abandonments. Grantor shall have the right, without the joinder of
Grantee, to release, surrender and/or abandon the Subject Interests or any well
located therein, or any part thereof or interest therein, even though the effect
of such release, surrender or abandonment will be to release, surrender or
abandon that portion of the Overriding Royalty Interest affected thereby to the
same extent as though Grantee had joined with Grantor therein; provided,
however, that Grantor shall not release, surrender or abandon any Subject
Interest or any well located therein unless (a) Grantor has determined in good
faith as a prudent operator that such well or Subject Interest is no longer
capable of producing in paying quantities without taking into account the
Overriding Royalty Interest or (b) such Subject Interest or well is required to
be released, surrendered or abandoned in accordance with the terms of the
applicable Lease or under applicable law, rule or regulation in the jurisdiction
where such Subject Interest is located. In the event of any such release,
surrender or abandonment of any Subject Interest or well as permitted hereby,
upon the request of Grantor, Grantee shall execute such documentation as is
reasonably necessary to evidence the corresponding release, surrender or
abandonment of that portion of the Overriding Royalty Interest affected thereby.

         3.2 Contracts with Affiliates and/or Subsidiaries. Grantor and/or any
of its Affiliates or any Subsidiaries may perform services and furnish supplies
and equipment with respect to the Subject Interests at prices and on terms and
conditions obtainable from unrelated third parties.

         3.3 Right to Use Wellbores. Grantor shall have the right to use the
wellbore of any well located on the Subject Interest in connection with any
reworking or recompletion operation conducted with respect to such well.

         3.4 Amendment of Drilling or Spacing Units/Unitization. Without joinder
or consent of Grantee or notice thereto, Grantor shall have the right and power
to unitize all or any portion of the Subject Interest with other areas and to
amend or terminate any unitization agreements, as would a reasonably prudent
operator without giving effect to the Overriding Royalty Interest. If and
whenever, through the exercise of this power or pursuant to any law or
regulation, or any order of any Government Authority, any portion of the Subject
Interest is unitized, the Overriding Royalty Interest, insofar as it relates to
such unitized area, shall be calculated in the proportion that the Subject
Interest shares in productions from such unitized area.

         3.5 Operations. It is the express intent of Grantor and Grantee that
the Overriding Royalty Interest shall constitute (and this Master Conveyance
shall conclusively be construed for all purposes as creating) a single, separate
non-operating right with respect to the Subject Interests for all purposes.
Without limitation of the generality of the immediately preceding sentence,
Grantor and Grantee acknowledge that Grantee has no right or power to
participate in the selection of a drilling contractor, to propose the drilling
of a well, to determine the timing or sequence of drilling operations, to
commence or shut down production, to take over operations, or to share in any
operating decision whatsoever. Grantor and Grantee hereby expressly negate any
intent to create (and this Master Conveyance shall never be construed as
creating) a mining or other partnership or joint venture or other relationship
subjecting Grantor and Grantee to joint liability. Nothing contained in this
Master Conveyance shall be deemed to prevent or restrict

                                       4
<PAGE>

Grantor from electing not to participate in any operations that are to be
conducted under the terms of any operating agreement, unit operating agreement,
contract for development, or similar instrument affecting or pertaining to the
Subject Interests (or any portion thereof) and permitting consenting parties to
conduct non-consent operations thereon if a reasonable and prudent operator,
acting in conformity with sound oil field practices without giving effect to the
Overriding Royalty Interest, would make such elections. With respect to the
Subject Interests for which Grantor is the operator, Grantor shall use its
commercially reasonable efforts to develop, operate, and maintain such Subject
Interests as would a prudent operator under similar circumstances in accordance
with good oil field practices without giving effect to the Overriding Royalty
Interest. As to those Subject Interests as to which Grantor is not the operator,
Grantor shall use its commercially reasonable efforts to cause the operator to
develop, maintain, and operate such Subject Interest as would a reasonably
prudent operator under similar circumstances in accordance with good oil field
practices.

                                   ARTICLE IV
                               CHANGE IN OWNERSHIP

         4.1 Change in Ownership. No change of ownership or right to receive the
Overriding Royalty Interest, or of any part thereof, however accomplished, shall
be binding upon Grantor until notice thereof shall have been furnished by the
Person claiming the benefit thereof, and then only with respect to payments or
delivery of Hydrocarbons thereafter made. Notice of sale or assignment of the
Overriding Royalty Interest, or any part thereof, shall consist of a copy of the
recorded instrument accomplishing the same; notice of change of ownership or
right to receive payment accomplished in any other manner (for example by reason
of incapacity, death or dissolution) shall consist of copies of recorded
documents and complete proceedings legally binding and conclusive of the rights
of all parties. Until such notice shall have been furnished to Grantor as
provided above, the payment or tender of all sums payable or delivery of
Hydrocarbons on the Overriding Royalty Interest may be made in the manner
provided in the Recordable Conveyance precisely as if no such change in interest
or ownership or right to receive payment or Hydrocarbons had occurred. The
method of notice herein provided shall be exclusive, and no other method,
whether actual or constructive, shall be binding on Grantor.

                                    ARTICLE V
                  ACCESS TO BOOKS AND RECORDS; CONFIDENTIALITY

         5.1 Records. Subject to any restrictions on Grantor's right to do so
under applicable operating agreements or similar contracts, Grantor will provide
Grantee with such information Grantee may reasonably require in order for
Grantee to prepare a third party reserve report or other reports required by
applicable law or the rules of any stock exchange. Nothing contained in this
Master Conveyance or otherwise shall require Grantor to retain any books and
records pertaining to the Subject Interests beyond that time period that Grantor
would customarily retain such books and records in the ordinary course of its
business.

         5.2 Confidentiality. Any confidential information provided by Grantor
to Grantee pursuant to this Master Conveyance shall not be disclosed by Grantee
to any third party, except with Grantor's written consent which consent shall
not be unreasonably withheld or delayed. Notwithstanding the preceding sentence,
the parties acknowledge and agree that such

                                       5
<PAGE>

information may be disclosed to those representatives designated by Grantee that
are reasonably necessary for the investigation of information under this Master
Conveyance or in connection with Grantee's ownership of the Overriding Royalty
Interest. To the extent that such disclosures are necessary, Grantee agrees that
it shall seek to preserve the confidentiality of such disclosures, shall inform
the parties to whom it discloses of the confidential nature of the information,
and shall be responsible for any disclosures by such parties to others in breach
of the confidentiality provisions hereof. This provision shall not prevent
Grantee from providing any confidential information received from Grantor to any
Governmental Authority or stock exchange as may be required by such Governmental
Authority or stock exchange; provided that, if feasible, Grantee shall have
given prior notice to Grantor of such required disclosure and, if so requested
by Grantor and at Grantor's sole expense, shall have used all reasonable efforts
to oppose the requested disclosure, as appropriate under the circumstances, or
other otherwise make such disclosure pursuant to a protective order or other
similar arrangement for confidentiality.

                                   ARTICLE VI
                          TITLE MATTERS AND DISCLAIMERS

         6.1 Disclaimers. GRANTOR MAKES NO WARRANTY OR REPRESENTATION, EXPRESS,
IMPLIED, STATUTORY OR OTHERWISE, RELATIVE TO ANY AND ALL FUTURE PRICING
ASSUMPTIONS, OR QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF ANY)
ATTRIBUTABLE TO THE SUBJECT INTERESTS OR THE ABILITY OR POTENTIAL OF THE SUBJECT
INTERESTS TO PRODUCE HYDROCARBONS. GRANTOR HEREBY EXPRESSLY DISCLAIMS ANY AND
ALL REPRESENTATION AND WARRANTIES EXPRESS, IMPLIED, STATUTORY OR OTHERWISE WITH
RESPECT TO THE PRODUCTION WHICH HAS BEEN OR MAY BE PRODUCED FROM THE LEASES,
SUBJECT INTERESTS, HYDROCARBONS AND THE OVERRIDING ROYALTY INTEREST.

                                   ARTICLE VII
                                   TERMINATION

         7.1 Termination of Leases. In the event any individual Lease or Subject
Interest (or portion thereof, as applicable) should be released, surrendered or
abandoned by Grantor pursuant to Section 3.1 the Overriding Royalty Interest no
longer shall apply to that particular Lease or Subject Interest (or such portion
thereof, as applicable). Upon termination of the Overriding Royalty Interest, as
above provided, upon request by Grantor, Grantee shall, at Grantee's expense,
execute and deliver such instrument or instruments as may be necessary to
evidence the termination of the Overriding Royalty Interest.

                                  ARTICLE VIII
                                  MISCELLANEOUS

         8.1 Governing Law. This Master Conveyance shall be construed and
enforced in accordance with and governed by the laws of the State of Texas and
the laws of the United States of America, except that, to the extent that the
law under the Outer Continental Lands Act requires the law of a state adjacent
to which the Subject Interests is located (or which is otherwise applicable to a
portion of the Subject Interests) necessarily governs with respect to

                                       6
<PAGE>

procedural and substantive matters relating to the Overriding Royalty Interest,
the law of such state shall apply as to that portion of the Subject Interests
located adjacent to or in (or otherwise subject to the laws of) such state.

         8.2 No Personal Liability by Grantee. The parties acknowledge that the
Overriding Royalty Interest is a non-operating interest and that Grantee owns
such interest, free from the payment by Grantee of the costs, risk and expense
of production. Notwithstanding anything to the contrary contained in this Master
Conveyance, Grantee shall never personally be responsible for paying any part of
the costs, expenses or liabilities incurred in connection with the operating,
owning and/or maintaining of the Subject Interests.

         8.3 Perpetuities. It is not the intent of Grantor or Grantee that any
provision herein violate any applicable law regarding the rule against
perpetuities, the suspension of the absolute power of alienation, or other rules
regarding the vesting or duration of estates, and this Master Conveyance shall
be construed as not violating such rules to the extent the same can be so
construed consistent with the intent of the parties. In the event however that
any provision hereof is determined to violate any such rule, then such provision
shall nevertheless be effective for the maximum period (but not longer than the
maximum period) permitted by such rule that will result in no violation. To the
extent the maximum period is permitted to be determined by reference to "lives
in being," Grantor and Grantee agree that "lives in being" shall refer to
lifetime of the last to die of the living lineal descendants of the late Joseph
P. Kennedy (father of the late President of the United States of America).

         8.4 Intentions of the Parties. Nothing herein contained shall be
construed to constitute either party hereto (under state law, for tax purposes
or otherwise) the agent of, or in partnership with, the other party. If,
however, the parties hereto are deemed to have entered into a relationship that
constitutes a partnership for federal income tax purposes, the parties hereby
elect to be excluded from the application of Subchapter K, Chapter 1, Subtitle A
of the Internal Revenue Code of 1986, and agree not to take any position
inconsistent with such election. IN ADDITION, THE PARTIES HERETO INTEND THAT THE
OVERRIDING ROYALTY INTEREST SHALL AT ALL TIMES BE TREATED AS (a) AN OVERRIDING
ROYALTY INTEREST OR PRODUCTION PAYMENT RATHER THAN AS A WORKING OR ANY OTHER
INTEREST WITHIN THE MEANING OF SECTION 636 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED, AND THE REGULATIONS AND JUDICIAL AUTHORITY RELATING THERETO AND (b)
AN INTEREST IN REAL PROPERTY, AND, IN ACCORDANCE THEREWITH AND THE TERMS OF THIS
MASTER CONVEYANCE, GRANTEE SHALL LOOK EXCLUSIVELY TO THE HYDROCARBONS PRODUCED
FROM THE SUBJECT INTERESTS FOR THE SATISFACTION AND REALIZATION OF THE
OVERRIDING ROYALTY INTEREST. ALL PROVISIONS OF THIS MASTER CONVEYANCE, AND THE
RECORDABLE CONVEYANCE SHALL BE CONSTRUED AND TREATED ACCORDINGLY.

         8.5 Notices. All notices, consents and other communications under this
Master Conveyance shall be in writing and shall be deemed to have been duly
given (a) when delivered by hand, (b) when sent by telecopier (with receipt
confirmed), (c) when received by the addressee, if sent by a nationally
recognized express delivery service or (d) upon receipt after being mailed by
certified or registered mail; in each case to the appropriate addresses and
telefax numbers set forth below (or to such other addresses and telefax numbers
as a party may designate as to itself by notice to other party):

                                       7
<PAGE>

                           (i)      if to Grantor:

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

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

                                    Attention:
                                              -------------------------
                                    Facsimile:
                                              -------------------------

                           with a copy to:

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

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

                                    Attention:
                                              -------------------------
                                    Facsimile:
                                              -------------------------

                           (ii)     if to the Grantee:

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

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

                                    Attention:
                                              -------------------------
                                    Facsimile:
                                              -------------------------

                           with a copy to:

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

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

                                    Attention:
                                              -------------------------
                                    Facsimile:
                                              -------------------------

A copy of this Master Conveyance has been retained by Grantor and Grantee, and
upon the receipt of a request from any party for a copy of this Master
Conveyance, Grantor and Grantee are each hereby authorized to deliver a copy of
this Master Conveyance directly to such requesting party; provided however, that
Grantee shall provide a copy of any such request, together with a copy of the
letter transmitting this Master Conveyance to any such requesting party, to
Grantor within five (5) business days after sending such copy to the requesting
party and Grantor agrees to provide a copy of such request, together with a copy
of the letter transmitting this Master Conveyance to any such requesting party,
to Grantee within five (5) business days after sending such copy to the
requesting party.

         8.6 Amendments. Except as expressly set forth in this Master
Conveyance, this Master Conveyance and the Recordable Conveyance may be amended,
modified or waived only by the written agreement between Grantor and Grantee. No
waiver of any of the provisions of this Master Conveyance shall be deemed or
shall constitute a waiver of any other provision hereof (regardless of whether
similar), nor shall any such waiver constitute a continuing waiver unless
otherwise expressly provided.

         8.7 Counterparts. This Master Conveyance may be executed by Grantor and
Grantee in any number of counterparts, each of which shall be deemed to be an
original instrument, but all of which together shall constitute one and the same
instrument.

                                       8
<PAGE>

         8.8 Binding Effect. All the covenants and agreements of Grantor herein
contained shall be deemed to be covenants running with Grantor's interest in the
Subject Interests and the lands affected thereby. All of the provisions hereof
shall inure to the benefit of Grantee and its successors and assigns and shall
be binding upon Grantor and its successors and assigns.

         8.9 Partition. Grantor and Grantee acknowledge that Grantee has no
right or interest that would permit it to partition any portion of the Subject
Interests, and Grantee waives any such right.

         8.10 Partial Invalidity. In the event any provision contained in this
Master Conveyance shall for any reason be held to be invalid, illegal or
unenforceable by a Governmental Authority, then (to the extent permitted under
applicable law) such invalidity, illegality or unenforceability shall not affect
any of the remaining provisions of this Master Conveyance which shall remain in
full force and effect.

         8.11 Effective Date. This Master Conveyance is effective for all
purposes (the "Effective Date") as of [EFFECTIVE UPON THE MERGER OF EEX], 2001.

         8.12 Recording. It is not the intent of Grantor and Grantee to record
this Master Conveyance in the public records of the Minerals Management Service
and in the counties or parishes adjacent to where the Subject Interests are
located but to record the Recordable Conveyance for filing in such public
records. In addition to such Recordable Conveyance (without creating any
additional covenants, warranties or representations of or by Grantor), Grantor
covenants and agrees to execute and deliver to Grantee all such other and
additional assignments, instruments and other documents and to do all such other
acts and things as may be necessary more fully to vest in Grantee title to the
Overriding Royalty Interest. Such separate or additional assignments and the
Recordable Conveyance: (a) shall evidence the assignment of the Overriding
Royalty Interest herein made or intended to be made; (b) shall not modify any of
the terms and covenants herein set forth and shall not create any additional
representations or covenants of or by Grantor to Grantee; (c) shall be deemed to
contain all of the terms and provisions hereof, as fully and to all intents and
purposes as though the same were set forth at length in the separate
assignments; and (d) to the extent required by law, shall be on forms
prescribed, or may otherwise be on forms suggested, by the appropriate
Governmental Authorities. In the event any term or provision of any separate or
additional assignment or the Recordable Conveyance should be inconsistent with
or conflict with the terms or provisions of this Master Conveyance, the terms
and provisions of this Master Conveyance shall control and shall govern the
rights, obligations and interests of the parties hereto, their successors and
assigns.

                                       9
<PAGE>

         IN WITNESS WHEREOF, Grantor and Grantee have executed this Master
Conveyance on this ____ day of ___________, 2001.

                                        GRANTOR:

                                        [EEX]

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

                                        GRANTEE:

                                        [TRUST]

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

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

                                       10

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