TEKNI PLEX INC
EX-10.6: AMENDMENT NO. 1 TO THE AMENDED AND RESTATED CREDIT AGREEMENT
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<TYPE>EX-10.6
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<FILENAME>y57891exv10w6.htm
<DESCRIPTION>EX-10.6: AMENDMENT NO. 1 TO THE AMENDED AND RESTATED CREDIT AGREEMENT
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<TITLE>EX-10.6</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 10.6</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMENDMENT NO. 1</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMENDMENT NO. 1, dated as of May&nbsp;12, 2008 (this &#147;<I>Amendment</I>&#148;), by and among Tekni-Plex, Inc.
(the &#147;<I>Borrower</I>&#148;), each of the Subsidiaries of the Borrower listed on the signature pages hereof
(collectively, the &#147;<I>Guarantors</I>&#148; and, together with the Borrower, the &#147;<I>Loan Parties</I>&#148;), Citicorp USA,
Inc., as Administrative Agent (in such capacity, the &#147;<I>Administrative Agent</I>&#148;), General Electric
Capital Corporation, as Syndication Agent (in such capacity, the &#147;<I>Syndication Agent</I>&#148;), and the
lenders party hereto (such lenders referred to collectively herein as the &#147;<I>Lenders</I>&#148;).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Borrower, the Administrative Agent, the Syndication Agent and the Lenders have
entered into that certain Amended and Restated Credit Agreement, dated as of February&nbsp;14, 2008 (as
amended, supplemented or otherwise modified from time to time, the &#147;<I>Credit Agreement</I>&#148;); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders enter into
this Amendment to amend the Credit Agreement as set forth herein;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Defined Terms</U>. Capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed to such terms in the Credit Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Amendments</U>. Effective as of the First Amendment Effective Date (as defined below)
and subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as
follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Section&nbsp;1.1 (Defined Terms) </I>of the Credit Agreement is hereby amended by deleting the
definitions of &#147;Agreement&#148;, &#147;Consolidated EBITDA&#148;
and &#147;Debt Swap&#148; and replacing them in their entirety with the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&#147;<I>Agreement</I>&#148; means this Amended and Restated Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&#147;<I>Consolidated EBITDA</I>&#148; means, for any period, Consolidated Net Income (excluding any
non-cash write-up of the value of assets) for such period (a)&nbsp;plus, to the extent
deducted in determining Consolidated Net Income for such period, the aggregate
amount of (i)&nbsp;Consolidated Interest Expense, (ii)&nbsp;income tax expense, (iii)
depreciation, amortization and other similar non-cash charges (including, without
limitation, non-cash fixed asset impairment charges and non-cash impairment charges
in respect of goodwill and other intangible assets), (iv)&nbsp;fees, expenses and
restructuring charges incurred in connection with the negotiation and entry into of
this Agreement, the Debt Swap and any amendment or forbearance in respect of the
Existing Subordinated Notes, the New Senior Secured Notes or the Existing Senior
Secured Notes, (v)&nbsp;costs, fees (including professional fees) and expenses incurred
in connection with restructuring the business operations of the Borrower and its
Subsidiaries in accordance with the business plan provided to the Administrative
Agent under Section&nbsp;3.1(i), (vi)&nbsp;any non-cash loss arising from any sale of assets
outside of the ordinary course of business, (vii)&nbsp;fees and expenses of AP Services
LLC for the period beginning on the First Amendment Effective Date through and
including the date that is four months after the First Amendment Effective Date and
(viii)&nbsp;any extraordinary loss; provided, however, that for purposes of determining
Consolidated EBITDA for any Test Period during which a Permitted Acquisition has
been made, Consolidated EBITDA shall be increased for any Fiscal Quarter which began
prior to such Permitted Acquisition and which is included in such Test Period by the
amount of Consolidated EBITDA which the Borrower (with the consent of the Agents,
such consent not to be unreasonably withheld or delayed) shall determine would have
been attributable to the acquired assets for the Fiscal Quarter most recently ended
on or prior to
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">the date of such Permitted Acquisition, it being agreed that for the Fiscal Quarter
in which the Permitted Acquisition has occurred, such increase shall be prorated to
reflect only the days during such Fiscal Quarter prior to the consummation of such
Permitted Acquisition and (b)&nbsp;minus the amount of any non-cash gains not otherwise
excluded from Consolidated Net Income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&#147;<I>Debt Swap</I>&#148; means a debt-for-equity swap with certain holders of the Existing
Subordinated Notes on terms and conditions specified in Exhibit&nbsp;A to the
Restructuring Agreement, as in effect on the First Amendment Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Section&nbsp;1.1 (Defined Terms) </I>of the Credit Agreement is hereby amended by inserting the
following definitions in the appropriate alphabetical order:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>First Amendment</I>&#148; means that certain Amendment No.&nbsp;1 to this Agreement, dated as of the
First Amendment Effective Date, among the Borrower, the Administrative Agent, the
Syndication Agent, each other Lender party hereto, and the Guarantors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>First
Amendment Effective Date</I>&#148; means May&nbsp;12, 2008, the date on which the First
Amendment to this Agreement shall, by its terms, have become effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Pre-Debt Swap Common Shareholders</I>&#148; means the holders of record of the Borrower&#146;s
existing and issued common stock immediately prior to the consummation of the Debt Swap.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Pre-Debt Swap Preferred Shareholders</I>&#148; means the holders of record of the Borrower&#146;s
existing and issued Series&nbsp;A Preferred Stock immediately prior to the consummation of the
Debt Swap.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Restructuring Agreement</I>&#148; means that certain Restructuring Agreement, dated as of April
11, 2008, among the Borrower and the other parties signatory thereto, as such agreement was
filed with the SEC on April&nbsp;14, 2008 as Exhibit&nbsp;10.1 to the Current Report on Form 8-K and
without any amendment or other modification thereto (other than to permit the extension of
the &#147;Effective Date&#148; thereunder to a date on or prior to June&nbsp;2, 2008).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Restructuring Warrants</I>&#148; means the Series&nbsp;A Warrants, Series&nbsp;B Warrants and Series&nbsp;C
Warrants to be issued on the terms described in Exhibit&nbsp;A to the Restructuring Agreement, as
in effect on the First Amendment Effective Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Restructuring Warrant Documents</I>&#148; means the documentation to be entered into by the
Borrower and the Pre-Debt Swap Preferred Shareholders in connection with the issuance of the
Restructuring Warrants.
</DIV>





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<I>Section&nbsp;5.</I><I>1(b)</I><I> (Quarterly and Monthly Reports) </I>of the Credit Agreement is hereby amended by
inserting, in clause (ii)&nbsp;thereof, after the expression &#147;first two fiscal months in each Fiscal
Quarter&#148; on the eleventh line thereof, the expression &#147;(or, in the case of the financials due for
the fiscal month of May&nbsp;2008, the period beginning on the first day of such fiscal month and ending
on the date upon which the Debt Swap is consummated)&#148;:
</div>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <I>Article&nbsp;5 (Affirmative Covenants) </I>of the Credit Agreement is hereby amended by adding a
new <I>Section&nbsp;5.15 (Retention of Advisors) </I>as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&#147;</I><B><I>Section&nbsp;5.15 Retention of Advisors</I></B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall, until the date that is four months after the First
Amendment Effective Date, continue to retain the services of AP Services LLC as its
restructuring advisor.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <I>Section&nbsp;6.5 (Restricted Payments) </I>of the Credit Agreement is hereby amended by (i)
deleting the word &#147;and&#148; at the end of <I>clause (c) </I>thereto, (ii)&nbsp;deleting the period at the end of
<I>clause (d) </I>thereto and replacing it with a semi-colon, and (iii)&nbsp;adding the following as new
<I>clauses (e), (f) </I>and <I>(g) </I>immediately after existing <I>clause (d) </I>thereof:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&#147;(e) simultaneously with or promptly after the consummation of the Debt Swap, a
distribution not to exceed $250,000 in the aggregate, consistent with the terms of
the Restructuring Agreement, to the Pre-Debt Swap Common Shareholders in exchange
for the cancellation,
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">redemption or purchase of the common Stock held by such Pre-Debt Swap Common
Shareholders;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(f)&nbsp;simultaneously with or promptly after the consummation of the Debt Swap, a
distribution not to exceed $10,000 in the aggregate, consistent with the terms of
the Restructuring Agreement, to certain Pre-Debt Swap Preferred Shareholders for the redemption of the Series&nbsp;A Preferred Stock
held by such Pre-Debt Swap Preferred Shareholders; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(g)&nbsp;simultaneously with or promptly after the consummation of the Debt Swap, a
distribution of Restructuring Warrants, consistent with the terms of the
Restructuring Agreement, to the Pre-Debt
Swap Preferred Shareholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <I>Section&nbsp;6.10 (Limitation on Voluntary Payments and Modifications of Indebtedness and
Preferred Stock Documents) </I>of the Credit Agreement is hereby amended by (i)&nbsp;changing the title of
such <I>Section&nbsp;6.10 </I>to &#147;<I>Limitation on Voluntary Payments Under and Modifications to Certain
Documents</I>&#148;, (ii)&nbsp;deleting the word &#147;and&#148; at the end of <I>clause (b) </I>thereof, (iii)&nbsp;deleting the
period at the end of <I>clause (c) </I>thereof and replacing it with a semi-colon, and (iv)&nbsp;adding the
following new <I>clauses (d and (e) </I>immediately after existing <I>clause (c) </I>thereof:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&#147;(d) amend or modify, or permit the amendment or modification of, any Restructuring
Warrant Documents if such change or amendment or the effect of such change or
amendment would materially increase the obligations of the Borrower or confer
additional rights to the holder of such Restructuring Warrant in a manner materially
adverse to the Borrower, any of its Subsidiaries, the Administrative Agent or any
Lender; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(e)&nbsp;amend or modify, or permit the amendment or modification of, the Restructuring
Agreement, without the consent of each Lender (other than to permit the extension of
the &#147;Effective Date&#148; thereunder to a date on or prior to June&nbsp;2, 2008).&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <I>Article&nbsp;6 (Negative Covenants) </I>of the Credit Agreement is hereby amended by adding a new
<I>Section&nbsp;6.18 (Minimum Collateral Availability) </I>as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&#147;</I><B><I>Section6.18 Minimum Collateral Availability</I></B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At all times after December&nbsp;1, 2008, the Borrower shall maintain a minimum
Collateral Availability amount of $5,000,000.<I>&#148;</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <I>Section&nbsp;7.01(o) (Events of Default) </I>of the Credit Agreement is hereby amended by replacing
the date &#147;May&nbsp;13, 2008&#148; therein with the date &#147;June&nbsp;2, 2008&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <U>Consent to Terms of Debt Swap</U>. The terms of the Debt Swap, as set forth in Exhibit
A to that certain Restructuring Agreement, dated as of April&nbsp;11, 2008 (the &#147;<I>Restructuring
Agreement</I>&#148;), among the Borrower, the Guarantors and the parties signatory thereto, a copy of which
is attached hereto as <U>Annex A</U>, are hereby consented to by each Lender as of the First
Amendment Effective Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <U>Conditions to Effectiveness of this Amendment</U>. This Amendment shall become
effective as of the date (the &#147;<I>First Amendment Effective Date</I>&#148;) the Administrative Agent shall have
received counterparts of this Amendment duly executed and delivered by each of the Borrower, the
Guarantors, the Administrative Agent, the Syndication Agent and the other Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <U>Representations and Warranties</U>. Each Loan Party hereby represents and warrants to
the Administrative Agent and the Lenders, on and as of the date hereof, that (a)&nbsp;such Loan Party
has taken all necessary action to authorize the execution, delivery and performance of this
Amendment; (b)&nbsp;this Amendment has been duly
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">executed and delivered by such Loan Party,; (c)&nbsp;this Amendment is the legal, valid and binding
obligation of such Loan Party, enforceable against it in accordance with its terms, except (i)&nbsp;as
may be limited by bankruptcy, insolvency or similar laws affecting creditors&#146; rights generally,
(ii)&nbsp;as rights of acceleration and the availability of equitable remedies may be limited by
equitable principles of general applicability, and (iii)&nbsp;as limited by legal or equitable
principles of reasonableness, good faith and fair dealing; (d)&nbsp;the copy of the Restructuring
Agreement (including, without limitation, Exhibit&nbsp;A thereto) attached hereto as Annex A is true and
complete in all respects, and such agreement has not been amended or modified in any respect as of
the First Amendment Effective Date (other than to permit the extension of the &#147;Effective Date&#148;
thereunder to a date on or prior to June&nbsp;2, 2008); (e)&nbsp;on the First Amendment Effective Date prior
to and after giving effect to this Amendment, each of the representations and warranties made by
any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material
respects (except that any representation and warranty that is qualified as to &#147;materiality&#148; or
&#147;Material Adverse Effect&#148; shall be, as so qualified, true and correct in all respects) on and as of the date hereof,
as if made on and as of such date, except to the extent such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties shall be
true and correct in all material respects (except that any representation and warranty that is
qualified as to &#147;materiality&#148; or &#147;Material Adverse Effect&#148; shall be, as so
qualified,  true and correct in all
respects) as of such earlier date; and (f)&nbsp;on the First Amendment Effective Date prior to and after
giving effect to this Amendment, no Default or Event of Default shall have occurred and be
continuing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <U>Reaffirmation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Loan Party hereby consents to the execution, delivery and performance of this
Amendment and agrees that each reference to the Credit Agreement in the Loan Documents shall, on
and after the First Amendment Effective Date, be deemed to be a reference to the Credit Agreement
as amended by this Amendment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each Loan Party hereby acknowledges and agrees that, after giving effect to this
Amendment, all of its respective obligations and liabilities under the Loan Documents to which it
is a party are reaffirmed, and remain in full force and effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;After giving effect to this Amendment, each Loan Party reaffirms each Lien granted by it
to the Administrative Agent for the benefit of the Secured Parties under each of the Loan Documents
to which it is a party, which Liens shall continue in full force and effect during the term of the
Credit Agreement as amended by this Amendment, and shall continue to secure the Secured
Obligations, in each case, on and subject to the terms and conditions set forth in the Credit
Agreement as amended by this Amendment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <U>Release</U>. Each Loan Party hereby acknowledges and agrees that: (a)&nbsp;neither it nor
any of its Affiliates has any claim or cause of action against any Agent or any Lender (or any of
their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) and
(b)&nbsp;each Agent and each Lender has heretofore properly performed and satisfied in a timely manner
all of its obligations to the Loan Parties and their Affiliates under the Credit Agreement and the
other Loan Documents. Notwithstanding the foregoing, each Agent and each Lender wish (and the Loan
Parties agree) to eliminate any possibility that any past conditions, acts, omissions, events or
circumstances would impair or otherwise adversely affect any of the Agents&#146; or the Lenders&#146; rights,
interests, security and/or remedies under the Credit Agreement and the other Loan Documents.
Accordingly, for and in consideration of the agreements contained in this Amendment and other good
and valuable consideration, each Loan Party (for itself and its Affiliates and the successors,
assigns, heirs and representatives of each of the foregoing) (collectively, the &#147;<I>Releasors</I>&#148;) does
hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent,
each Lender and each of their respective Affiliates, officers, directors, employees, attorneys,
consultants and agents (collectively, the &#147;<I>Released Parties</I>&#148;) from any and all debts, claims,
obligations, damages, costs, attorneys&#146; fees, suits, demands, liabilities, actions, proceedings and
causes of action, in each case, whether known or unknown, contingent or fixed, direct or indirect,
and of whatever nature or description, and whether in law or in equity, under contract, tort,
statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may
have against any Released Party by reason of any act, omission or thing whatsoever done or omitted
to be done on or prior to the First Amendment Effective Date arising out of, connected with or
related in any way to this Amendment, the Credit Agreement or any other Loan Document, or any act,
event or transaction related or attendant thereto, or the agreements of any Agent or any Lender
contained therein, or the
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">possession, use, operation or control of any of the assets of any Loan Party, or the making of
any Loans or other advances, or the management of such Loans or advances or the Collateral on or
prior to the First Amendment Effective Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <U>Continuing Effect</U>. Except as expressly set forth in this Amendment, all of the
terms and provisions of the Credit Agreement are and shall remain in full force and effect and the
Borrower shall continue to be bound by all of such terms and provisions. The amendments provided
for herein are limited to the specific provisions of the Credit Agreement specified herein and
shall not constitute an amendment of, or an indication of the Administrative Agent&#146;s or the
Lenders&#146; willingness to amend or waive, any other provisions of the Credit Agreement or the same
sections for any other date or purpose.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <U>Expenses</U>. The Borrower agrees to pay and reimburse the Administrative Agent for
all its reasonable out-of-pocket costs and expenses incurred in connection with the negotiation,
preparation, execution and delivery of this Amendment, and other documents prepared in connection
herewith, and the transactions contemplated hereby, including, without limitation, reasonable fees
and disbursements and other charges of counsel to the Administrative Agent and the charges of
IntraLinks&#153; relating to the Amendment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <U>Choice of Law</U>. This Amendment and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with the law of the State
of New York.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <U>Counterparts</U>. This Amendment may be executed in any number of counterparts and by
different parties and separate counterparts, each of which when so executed and delivered, shall be
deemed an original, and all of which, when taken together, shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile
or e-mail shall be effective as delivery of a manually executed counterpart of this Amendment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <U>Integration</U>. This Amendment, together with the other Loan Documents, incorporates
all negotiations of the parties hereto with respect to the subject matter hereof and is the final
expression and agreement of the parties hereto with respect to the subject matter hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <U>Severability</U>. In case any provision in this Amendment shall be invalid, illegal
or unenforceable, such provision shall be severable from the remainder of this Amendment and the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <U>Loan Document</U>. This Amendment is a Loan Document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <U>Waiver of Jury Trial</U>. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES TRIAL BY JURY
IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT AND ANY OTHER LOAN DOCUMENT.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS">&#091;Signature Pages Follow&#093;</FONT>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above
written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">TEKNI-PLEX, INC.,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="4" valign="top" align="left"><I>as Borrower</I></TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>




<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>







<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ James E. Condon
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>








<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">James E. Condon</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD  colspan="3">Chief Financial Officer&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>











<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PURETEC CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">NATVAR HOLDINGS, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">TRI-SEAL HOLDINGS, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" valign="top" align="left">PLASTIC SPECIALTIES AND TECHNOLOGIES, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">BURLINGTON RESINS, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PLASTIC SPECIALTIES AND TECHNOLOGIES</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">INVESTMENTS, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">DISTRIBUTORS RECYCLING, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">TPI ACQUISITION SUBSIDIARY, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">TP/ELM ACQUISITION SUBSIDIARY, INC.,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="left" valign="top"><I>as Guarantors</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>




<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ James E. Condon
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>



<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">James E. Condon</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD  colspan="3">Chief Financial Officer&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>





















































<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;
S<FONT style="font-variant: SMALL-CAPS">ignature</FONT>
P<FONT style="font-variant: SMALL-CAPS">age to</font>
A<FONT style="font-variant: SMALL-CAPS">mendment</font>
N<FONT style="font-variant: SMALL-CAPS">o</font>. 1
<FONT style="font-variant: SMALL-CAPS">to</font>
A<FONT style="font-variant: SMALL-CAPS">mended and</font>
R<FONT style="font-variant: SMALL-CAPS">estated</font>
C<FONT style="font-variant: SMALL-CAPS">redit</font>
A<FONT style="font-variant: SMALL-CAPS">greement&#093;</font></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CITICORP USA, INC.,<BR>
<I>as Administrative Agent and Lender</I><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>




<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                                                               /s/ Miles D. McManus
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">Miles D. McManus&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">Vice President and Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;S<FONT style="font-variant: SMALL-CAPS">ignature</FONT>
P<FONT style="font-variant: SMALL-CAPS">age to</font>
A<FONT style="font-variant: SMALL-CAPS">mendment</font> N<FONT style="font-variant: SMALL-CAPS">o</font>. 1 <FONT style="font-variant: SMALL-CAPS">to</font> A<FONT style="font-variant: SMALL-CAPS">mended and</font>
R<FONT style="font-variant: SMALL-CAPS">estated</font> C<FONT style="font-variant: SMALL-CAPS">redit</font>
A<FONT style="font-variant: SMALL-CAPS">greement&#093;</font></DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">GENERAL ELECTRIC CAPITAL CORPORATION,<BR>
<I>as Syndication Agent and Lender</I><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>




<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                                                               /s/ Annie Schorr
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">Annie Schorr&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>





<tr>






    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;S<FONT style="font-variant: SMALL-CAPS">ignature</FONT>
P<FONT style="font-variant: SMALL-CAPS">age to</font>
A<FONT style="font-variant: SMALL-CAPS">mendment</font> N<FONT style="font-variant: SMALL-CAPS">o</font>. 1 <FONT style="font-variant: SMALL-CAPS">to</font> A<FONT style="font-variant: SMALL-CAPS">mended and</font>
R<FONT style="font-variant: SMALL-CAPS">estated</font> C<FONT style="font-variant: SMALL-CAPS">redit</font>
A<FONT style="font-variant: SMALL-CAPS">greement&#093;</font></DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WELLS FARGO FOOTHILL, LLC,<BR>
<I>as Lender</I><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>





<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Juan Barrera&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">Juan Barrera&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" colspan="2">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>








<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;S<FONT style="font-variant: SMALL-CAPS">ignature</FONT>
P<FONT style="font-variant: SMALL-CAPS">age to</font>
A<FONT style="font-variant: SMALL-CAPS">mendment</font> N<FONT style="font-variant: SMALL-CAPS">o</font>. 1 <FONT style="font-variant: SMALL-CAPS">to</font> A<FONT style="font-variant: SMALL-CAPS">mended and</font>
R<FONT style="font-variant: SMALL-CAPS">estated</font> C<FONT style="font-variant: SMALL-CAPS">redit</font>
A<FONT style="font-variant: SMALL-CAPS">greement&#093;</font></DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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