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Title: |
Purchase Agreement |
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Entities: |
Lehman Brothers Inc.; Plastic Specialties & Technologies Investments Inc ; Davis Polk & Wardwell; Latham & Watkins |
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Date: |
2002 |
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Size: |
Preview shows 6KB of 87KB total |
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Price: |
$52 |
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ID: |
#2162788 |
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TEKNI-PLEX, INC.
$40,000,000
12 3/4% Senior Subordinated Notes due 2010
Purchase Agreement
May 1, 2002
LEHMAN BROTHERS INC.
745 Seventh Avenue
New York, New York 10019
Ladies and Gentlemen:
Tekni-Plex, Inc., a corporation formed under the laws of Delaware (the
"Company"), proposes to issue and sell (the "Offering") to Lehman Brothers Inc.
(the "Initial Purchaser") $40,000,000 principal amount of its 12 3/4% Senior
Subordinated Notes due 2010 (the "Notes"). The Notes will be issued pursuant to
the provisions of an Indenture dated as of June 21, 2000 (the "Indenture") among
the Company, the Guarantors (as defined) and HSBC Bank USA, as trustee (the
"Trustee"). The Notes will be guaranteed (the "Guarantee" and, collectively with
the Notes, the "Securities") on a senior subordinated basis by each of the
domestic subsidiaries of the Company listed on Schedule A attached hereto (the
"Guarantors").
The sale of the Securities to the Initial Purchaser will be made
without registration of the Securities under the Securities Act of 1933, as
amended (the "Act" or the "Securities Act"), in reliance upon the exemption
therefrom provided by Section 4(2) of the Act.
Holders of the Securities will have the benefits of a Registration
Rights Agreement to be dated as of May 6, 2002 among the Company, the Guarantors
and the Initial Purchaser, substantially in the form attached hereto as Exhibit
A (the "Registration Rights Agreement") pursuant to which the Issuers will agree
to file with the Securities and Exchange Commission (the "Commission") (i) a
registration statement under the Securities Act (the "Exchange Registration
Statement") registering an issue of senior subordinated notes of the Company
which are identical in all material respects to the Securities (except that the
Exchange Notes will not contain terms with respect to transfer restrictions or
liquidated damages) (such notes, together with any Private Exchange Securities
(as defined in the Registration Rights Agreement), are referred to herein as the
"Exchange Notes") and
(ii) under certain limited circumstances, a shelf registration
statement with respect to the resale of the Securities pursuant to Rule 415
under the Securities Act (the "Shelf Registration Statement"). This Agreement,
the Indenture, the Notes, the Exchange Notes and the Registration Rights
Agreement and the Guarantees are collectively referred to herein as the
"Offering Agreements."
{PAGE}
The Company and the Guarantors hereby agree, jointly and severally,
with the Initial Purchaser as follows:
1. The Company agrees to issue and sell the Notes and the Guarantors
agree to issue the Guarantees to the Initial Purchaser as hereinafter provided,
and the Initial Purchaser, upon the basis of the representations and warranties
herein contained, but subject to the conditions hereinafter stated, agrees to
purchase from the Company all of the Securities at a price (the "Purchase
Price") equal to 101.5% of their principal amount. No additional consideration
shall be paid by the Initial Purchaser for the Guarantee.
2. The Company and the Guarantors understand that the Initial Purchaser
intends (x) to offer privately the Securities as soon after this Agreement has
become effective as in the judgment of the Initial Purchaser is advisable and
(y) initially to offer the Securities upon the terms set forth in the Offering
Memorandum (as defined below):
The Company and the Guarantors confirm that they have authorized the
Initial Purchaser, subject to the restrictions set forth below, to distribute
copies of the Offering Memorandum in connection with the offering of the
Securities. The Initial Purchaser hereby makes to the Company and the Guarantors
the following representations and agreements
(i) it is a qualified institutional buyer within the meaning
of Rule 144A under the Act; and
(ii) (A) it will not solicit offers for, or offer to sell, the
Securities by any form of general solicitation or general advertising
(as those terms are used in Regulation D under the Act) or in any
manner involving a public offering within the meaning of Section 4(2)
of the Act, (B) it will solicit offers for the Securities only from,
and will offer, sell or deliver the Securities only to, (1) persons
whom it reasonably believes to be "qualified institutional buyers"
within the meaning of Rule 144A under the Act to whom notice has been
given that such offer, sale or delivery is being made in reliance on
Rule 144A in transactions under Rule 144A or (2) upon the terms and
conditions set forth in Annex I to this Agreement, and (C) it is not
purchasing with a view to or for offer or sale in connection with any
distribution that would be in violation of federal or state law.
3. Payment for the Securities shall be made by wire transfer in
immediately available funds, to the account specified by the Company to the
Initial Purchaser no later than noon on the Business Day (as defined below)
prior to the Closing Date (as defined below), on May 6, 2002, or at such other
time on the same or such other date, not later than the fifth Business Day
thereafter, as the Initial Purchaser and the Company may agree upon in writing.
The time and date of such payment are referred to herein as the "Closing Date".
As used herein, the term "Business Day" means any day other than a day on which
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