Exhibit 99.4
, 2004
EXCHANGE AGENT AGREEMENT
HSBC Bank USA
Issuer Services
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Ladies and Gentlemen:
Tekni-Plex, Inc., a Delaware corporation (the "Company"), proposes to
make an offer (the "Exchange Offer") to exchange up to $275,000,000 principal
amount of its 8 3/4% Senior Secured Exchange Notes due 2013 (the "New Notes"),
for a like principal amount of its respective outstanding 8 3/4% Senior Secured
Notes due 2013 (the "Old Notes"). The terms and conditions of the Exchange Offer
are set forth in a prospectus (the "Prospectus") included in the Company's
registration statement on Form S-4 (File No. 333- ), as it may be amended from
time to time (the "Registration Statement"), filed with the Securities and
Exchange Commission (the "SEC"), and proposed to be distributed to all record
holders of the Old Notes. The Old Notes and the New Notes are collectively
referred to herein as the "Notes." Capitalized terms used herein and not defined
shall have the respective meanings ascribed to them in the Prospectus or
accompanying Letter of Transmittal.
The Company hereby appoints HSBC Bank USA to act as exchange agent (the
"Exchange Agent") in connection with the Exchange Offer. References hereinafter
to "you" shall refer to HSBC Bank USA.
The Exchange Offer is expected to be commenced by the Company on or
about , 2004. The Letter of Transmittal accompanying the Prospectus (or in the
case of book entry-securities, either the Letter of Transmittal or the Automated
Tender Offer Program ("ATOP") system) is to be used by the holders of the Old
Notes to accept the Exchange Offer and contains instructions with respect to the
delivery of certificates for Old Notes tendered.
The Exchange Offer shall expire at 5:00 P.M., New York City time, on ,
2004, or on such later date or time to which the Company may extend the
Exchange Offer (the "Expiration Date"). Subject to the terms and conditions set
forth in the Prospectus, the Company expressly reserves the right to extend the
Exchange Offer from time to time and may extend the Exchange Offer by giving
oral (confirmed in writing) or written notice to you before 9:00 A.M., New York
City time, on the next business day after the previously scheduled Expiration
Date.
The Company expressly reserves the right, in its sole discretion, to
amend or terminate the Exchange Offer, and not to accept for exchange any Old
Notes not theretofore accepted for exchange. The Company will give oral
(confirmed in writing) or written notice of any amendment, termination or
nonacceptance to you as promptly as practicable.
In carrying out your duties as Exchange Agent, you are to act in
accordance with the following instructions:
1. You will perform such duties and only such duties as are
specifically set forth in the section of the Prospectus captioned "The Exchange
Offer," in the Letter of Transmittal accompanying the Prospectus or as
specifically set forth herein; provided, however, that in no way will your
general duty to act in good faith and without gross negligence or willful
misconduct be limited by the foregoing.
2. You will promptly establish an account with respect to the Old
Notes at The Depository Trust Company ("DTC") for purposes of the Exchange
Offer, and any financial institution that is a participant in DTC's systems may,
until the Expiration Date, make book-entry delivery of the Old Notes by causing
DTC to transfer such Old Notes into your account in accordance with DTC's
procedures for such transfer. In every case, however, a Letter of Transmittal
(or a manually executed facsimile thereof) or an agent's message, properly
completed and duly executed, with any required signature guarantees and any
other required documents must be transmitted to and received by you prior to the
Expiration Date or the guaranteed delivery procedures described in the Exchange
Offer must be complied with.
3. You are to examine each of the Letters of Transmittal and
certificates for Old Notes (and confirmation of book-entry transfers of Old
Notes into your account at DTC) and any other documents delivered or mailed to
you by or for holders of the Old Notes, to ascertain whether: (i) the Letters of
Transmittal, certificates and any such other documents are duly executed and
properly completed in accordance with instructions set forth therein and that
such Book- Entry Confirmations are in due and proper form and contain the
information required to be set forth therein, (ii) the Old Notes have otherwise
been properly tendered, (iii) the Old Notes tendered in part are tendered in
principal amounts of $1,000 and integral multiples of $1,000 in excess thereof
and that if any Old
2
Notes are tendered for exchange in part, the untendered principal amount thereof
is $100,000 or any integral multiple of $1,000 in excess thereof, and (iv)
holders have provided their Tax Identification Number or required certification.
In each case where the Letter of Transmittal or any other document has been
improperly completed or executed, or where Book-Entry Confirmations are not in
due and proper form or omit certain information, or any of the certificates for
Old Notes are not in proper form for transfer or some other irregularity in
connection with the acceptance of the Exchange Offer exists, you will endeavor
to inform the presenters of the need for fulfillment of all requirements and to
take any other action as may be necessary or advisable to cause such
irregularity to be corrected.
4. With the approval of the President, any Vice President, the
Secretary or any Assistant Secretary of the Company (such approval, if given
orally, to be confirmed in writing) or any other person designated by such an
officer in writing, you are authorized to waive any irregularities in connection
with any tender of Old Notes pursuant to the Exchange Offer.
5. At the written request of the Company or its counsel, you shall
notify tendering holders of Old Notes in the event of any extension, termination
or amendment of the Exchange Offer. In the event of any such termination, you
will return all tendered Old Notes to the persons entitled thereto, at the
request and expense of the Company.
6. Tenders of Old Notes may be made only as set forth in the Letter
of Transmittal and in the section of the Prospectus captioned "The Exchange
Offer," and Old Notes shall be considered properly tendered to you only when
tendered in accordance with the procedures set forth therein. Notwithstanding
the provisions of this paragraph 6, Old Notes which the President, any Vice
President, the Secretary or any Assistant Secretary of the Company or any other
person designated by any such person shall approve as having been properly
tendered shall be considered to be properly tendered (such approval, if given
orally, shall be confirmed in writing). New Notes are to be issued in exchange
for Old Notes pursuant to the Exchange Offer only (i) against deposit with you
prior to the Expiration Date or, in the case of a tender in accordance with the
guaranteed delivery procedures outlined in Instruction 1 of the Letter of
Transmittal, within three New York Stock Exchange trading days after the
Expiration Date of the Exchange Offer, together with executed Letter of
Transmittal and any other documents required by the Exchange Offer or (ii) in
the event that the holder is a participant in DTC's system, by the utilization
of DTC's ATOP and any evidence required by the Exchange Offer.
3
7. You shall advise the Company with respect to any Old Notes
received subsequent to the Expiration Date and accept its instructions with
respect to disposition of such Old Notes.
8. You shall accept tenders:
(a) in cases where the Old Notes are registered in two or more names
only if signed by all named holders;
(b) in cases where the signing person (as indicated on the Letter of
Transmittal) is acting in a fiduciary or a representative capacity only
when proper evidence of his or her authority so to act is submitted;
and
(c) from persons other than the registered holder of Old Notes
provided that customary transfer requirements, including those
regarding any applicable transfer taxes, are fulfilled.
You shall accept partial tenders of Old Notes when so indicated and as
permitted in the Letter of Transmittal and deliver certificates for Old Notes to
the Security Registrar for split-up and return any untendered Old Notes to the
holder (or such other person as may be designated in the Letter of Transmittal)
as promptly as practicable after expiration or termination of the Exchange
Offer.
9. Upon satisfaction or waiver of all of the conditions to the
Exchange Offer, the Company will notify you (such notice, if given orally, to be
confirmed in writing) of its acceptance, promptly after the Expiration Date, of
all Old Notes properly tendered and you, on behalf of the Company, will exchange
such Old Notes for New Notes and cause such Old Notes to be canceled. Delivery
of New Notes will be made on behalf of the Company by you at the rate of $1,000
principal amount of New Notes for each $1,000 principal amount of the Old Notes
tendered promptly after notice (such notice, if given orally, to be confirmed in
writing) of acceptance of said Old Notes by the Company; provided, however, that
in all cases, Old Notes tendered pursuant to the Exchange Offer will be
exchanged only after timely receipt by you of certificates for such Old Notes
(or confirmation of book-entry transfer into your account at DTC), a properly
completed and, except as described in the section of the Prospectus captioned
"The Exchange Offer--Procedures for Tendering", duly executed Letter of
Transmittal (or facsimile thereof) with any required signature guarantees and
any other required documents. Unless otherwise instructed by the Company, you
shall issue New Notes only in denominations of $1,000 or any integral multiple
thereof.
10. Tenders, pursuant to the Exchange Offer are irrevocable, except
that, subject to the terms and upon the conditions set forth in the Prospectus
and the
4
Letter of Transmittal, Old Notes tendered pursuant to the Exchange Offer may be
withdrawn at any time on or prior to the Expiration Date in accordance with the
terms of the Exchange Offer.
11. The Company shall not be required to exchange any Old Notes
tendered if any of the conditions set forth in the Exchange Offer is
not met. Notice of any decision by the Company not to exchange any Old
Notes tendered shall be given (and confirmed in writing) by the Company
to you.
12. If, pursuant to the Exchange Offer, the Company does not accept
for exchange all or part of the Old Notes tendered because of an
invalid tender, the occurrence of certain other events set forth in the
Prospectus or otherwise, you shall as soon as practicable after the
expiration or termination of the Exchange Offer return those
certificates for unaccepted Old Notes (or effect appropriate book-entry
transfer), together with any related required documents and the Letters
of Transmittal relating thereto that are in your possession, to the
persons who deposited them (or effected such book-entry transfer).
13. All certificates for reissued Old Notes, unaccepted Old Notes or
for New Notes (other than those effected by book-entry transfer) shall
be forwarded by (a) first-class certified mail, return receipt
requested, under a blanket surety bond obtained by you protecting you
and the Company from loss or liability arising out of the nonreceipt or
nondelivery of such certificates or (b) by registered mail insured by
you separately for the replacement value of each of such certificate.
14. As soon as practicable after the Expiration Date, you shall
arrange for cancellation of the Old Notes submitted to you or returned
by DTC in connection with ATOP. Such Old Notes shall be cancelled and
retired by you as you are instructed by the Company (or a
representative designated by the Company) in writing.
15. You are not authorized to pay or offer to pay any concessions,
commissions or other solicitation fees to any broker, dealer,
commercial bank, trust company or other nominee or to engage or use any
person to solicit tenders.
16. As Exchange Agent hereunder, you:
(a) shall have no duties or obligations other than those specifically
set forth in the Prospectus, the Letter of Transmittal or herein or as
may be subsequently agreed to in writing by you and the Company;
5
(b) will be regarded as making no representations and having no
responsibilities as to the validity, sufficiency, value or genuineness
of any of the certificates for the Old Notes deposited with you
pursuant to the Exchange Offer, and will not be required to and will
make no representation as to the validity, value or genuineness of the
Exchange Offer;
(c) shall not be obligated to take any legal action hereunder which
might in your reasonable judgment involve any expense or liability,
unless you shall have been furnished with reasonable indemnity;
(d) may reasonably rely on and shall be protected in acting in
reliance upon any certificate, instrument, opinion, notice, letter,
telegram or other document or security delivered to you and reasonably
believed by you to be genuine and to have been signed by the proper
party or parties;
(e) may reasonably act upon any tender, statement, request, comment,
agreement or other instrument whatsoever not only as to its due
execution and validity and effectiveness of its provisions, but also as
to the truth and accuracy of any information contained therein, which
you shall in good faith believe to be genuine or to have been signed or
represented by a proper person or persons;
(f) may rely on and shall be protected in acting upon written or oral
instructions from any officer of the Company;
(g) may consult with your counsel with respect to any questions
relating to your duties and responsibilities, and the written opinion
of such counsel shall be full and complete authorization and protection
in respect of any action taken, suffered or omitted to be taken by you
hereunder in good faith and in accordance with the written opinion of
such counsel; and
(h) shall not advise any person tendering Old Notes pursuant to the
Exchange Offer as to whether to tender or refrain from tendering all or
any portion of Old Notes or as to the market value, decline or
appreciation in market value of any Old Notes that may or may not occur
as a result of the Exchange Offer or as to the market value of the New
Notes;
provided, however, that in no way will your general duty to act in good faith
and without gross negligence or willful misconduct be limited by the foregoing.
17. You shall take such action as may from time to time be requested
by the Company or its counsel (and such other action as you may reasonably deem
6
appropriate) to furnish copies of the Prospectus, Letter of Transmittal and the
Notice of Guaranteed Delivery (as defined in the Prospectus) or such other forms
as may be approved from time to time by the Company to all persons requesting
such documents and to accept and comply with telephone requests for information
relating to the Exchange Offer, provided, that such information shall relate
only to the procedures for accepting (or withdrawing from) the Exchange Offer.
The Company will furnish you with copies of such documents at your request.
18. You shall advise by facsimile transmission or telephone, and
promptly thereafter confirm in writing to Dr. F. Xxxxxxx Xxxxx, Chief Executive
Officer, of the Company (telephone number (000) 000-0000, facsimile number (972)
304-6297) and such other person or persons as the Company may request, daily
(and more frequently during the week immediately preceding the Expiration Date
and if otherwise requested), up to and including the Expiration Date, as to the
number and aggregate principal amount of Old Notes which have been duly tendered
pursuant to the Exchange Offer and the items received by you pursuant to the
Exchange Offer and this Agreement, separately reporting and giving cumulative
totals as to items properly received and items improperly received. In addition,
you will also inform, and cooperate in making available to, the Company or any
such other person or persons upon oral request made from time to time prior to
the Expiration Date of such other information as it or he or she reasonably
requests. Such cooperation shall include, without limitation, the granting by
you to the Company and such person as the Company may request of access to those
persons on your staff who are responsible for receiving tenders, in order to
ensure that immediately prior to the Expiration Date the Company shall have
received information in sufficient detail to enable it to decide whether to
extend the Exchange Offer, including the identity of the holders of Old Notes
who have not tendered such Old Notes as of the date such request was made. You
shall prepare a final list of all persons whose tenders were accepted, the
number and aggregate principal amount of Old Notes tendered, the number and
aggregate principal amount of Old Notes accepted and the identity of any
Participating Broker- Dealers (as defined in the Letter of Transmittal) and the
number and aggregate principal amount of New Notes delivered to each, and
deliver said list to the Company.
19. Letters of Transmittal, Book-Entry Confirmations and Notices of
Guaranteed Delivery received by you shall be preserved by you for a period of
time at least equal to the period of time you preserve other records pertaining
to the transfer of securities, or one year, whichever is longer, and thereafter
shall be delivered by you to the Company. You shall dispose of unused Letters of
Transmittal and other surplus materials, upon consultation with the Company, in
accordance with your customary procedures.
7
20. You hereby expressly waive any lien, encumbrance or right of
set-off whatsoever that you may have with respect to funds deposited with you
for the payment of transfer taxes by reasons of amounts, if any, borrowed by the
Company, or any of its subsidiaries or affiliates pursuant to any loan, credit
or other agreement with you or for compensation owed to you hereunder or under
any other agreement.
21. For services rendered as Exchange Agent hereunder, you shall be
entitled to such compensation as set forth on the Schedule attached hereto.
22. You hereby acknowledge receipt of the Prospectus and the Letter of
Transmittal and further acknowledge that you have examined each of them. Any
inconsistency between this Agreement, on the one hand, and the Prospectus and
the Letter of Transmittal (as they may be amended from time to time), on the
other hand, shall be resolved in favor of the latter two documents, except with
respect to the duties, liabilities and indemnification of you as Exchange Agent,
which shall be controlled by this Agreement.
23. The Company covenants and agrees to indemnify and hold you
harmless in your capacity as Exchange Agent hereunder against any loss,
liability, cost or expense, including reasonable attorneys' fees and expenses
arising out of or in connection with any act, omission, delay or refusal made by
you in reliance upon any signature, endorsement, assignment, certificate, order,
request, notice, instruction or other instrument or document reasonably believed
by you to be valid, genuine and sufficient and in accepting any tender or
effecting any transfer of Old Notes reasonably believed by you in good faith to
be authorized, and in delaying or refusing in good faith to accept any tenders
or effect any transfer of Old Notes; provided, however, that anything in this
Agreement to the contrary notwithstanding, the Company shall not be liable for
indemnification or otherwise for any loss, liability, cost or expense to the
extent arising out of your gross negligence or willful misconduct. The Company
shall be entitled to participate, at its own expense, in the defense of any such
claim or other action, and, if the Company so elects, the Company may assume the
defense of any pending or threatened action against you in respect of which
indemnification may be sought hereunder, in which case the Company shall not
thereafter be responsible for the subsequently incurred fees and disbursements
of legal counsel for you under this paragraph so long as the Company shall
retain counsel reasonably satisfactory to you to defend such suit; provided,
that the Company shall not be entitled to assume the defense of any such action
if the named parties to such action include both you and the Company and
representation of both parties by the same legal counsel would, in the written
opinion of your counsel, be inappropriate due to actual or potential conflicting
interests between you and the Company. You
8
understand and agree that the Company shall not be liable under this paragraph
for the fees and expenses of more than one legal counsel for you.
24. You shall arrange to comply with all requirements under the tax
laws of the United States, including those relating to missing Tax
Identification Numbers, and shall file any appropriate reports with the Internal
Revenue Service.
25. You shall notify the Company of the amount of any transfer taxes
payable in respect of the exchange of Old Notes and, upon receipt of a written
approval from the Company, shall deliver or cause to be delivered, in a timely
manner to each governmental authority to which any transfer taxes are payable in
respect of the exchange of Old Notes, your check in the amount of all transfer
taxes so payable, and the Company shall reimburse you for the amount of any and
all transfer taxes payable in respect of the exchange of Old Notes; provided,
however, that you shall reimburse the Company for amounts refunded to you in
respect of your payment of any such transfer taxes, at such time as such refund
is received by you.
26. THIS AGREEMENT AND YOUR APPOINTMENT AS EXCHANGE AGENT HEREUNDER
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE, AND WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.
27. This Agreement shall be binding upon and inure solely to the
benefit of each party hereto, and its successor and assigns, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other
person any right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement. Without limitation of the foregoing, the parties hereto
expressly agree that no holder of Old Notes or New Notes shall have any right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.
28. This Agreement may be executed in two or more counterparts, each
of which shall be deemed to be an original, and all of which taken together
shall constitute one and the same agreement.
29. In case any provision of this Agreement shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
9
30. This Agreement shall not be deemed or construed to be modified,
amended, rescinded, canceled or waived, in whole or in part, except by a written
instrument signed by a duly authorized representative of the party to be
charged.
31. Unless otherwise provided herein, all notices, requests and other
communications to any party hereunder shall be in writing (including facsimile
or similar writing) and shall be given to such party, addressed to it, at its
address or telecopy number set forth below:
If to the Company, to:
Tekni-Plex, Inc.
000 X. Xxxxxx Xxx Xxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Dr. F. Xxxxxxx Xxxxx
Chief Executive Officer
with a copy to:
Xxxxxxx X. Xxxxxxx, Esq.
Xxxxx Xxxx & Xxxxxxxx
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
If to the Exchange Agent, to:
HSBC Bank USA
Issuer Services
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
32. Unless terminated earlier by the parties hereto, this Agreement
shall terminate 90 days following the Expiration Date. Notwithstanding the
foregoing, paragraphs 19, 21, 23 and 25 shall survive the termination of this
Agreement. Upon any termination of this Agreement, you shall promptly deliver to
the Company any certificates for New Notes, funds or property then held by you
as Exchange Agent under this Agreement.
10
33. This Agreement shall be binding and effective as of the date
hereof.
Please acknowledge receipt of this Agreement and confirm the
arrangements herein provided by signing and returning the enclosed copy.
TEKNI-PLEX, INC.
By:----------------------------
Name:
Title:
Accepted as of the date
first above written:
HSBC BANK USA,
as Exchange Agent
By:-----------------------
Name:
Title:
11
Exhibit A
SCHEDULE OF FEES
for services as
Exchange Agent
Tekni-Plex, Inc. 8 3/4% Senior Secured Notes due 2013
Exchange Agent Fee:.........................................................$[ ]
------------------
This one-time fee covers the acceptance of our appointment as Exchange
Agent, review and consideration of the Exchange Agent Agreement and all
supporting documents consultations with attorneys, and establishment of
procedures to perform the services required by the Agreement.
The fees quoted above by HSBC Bank USA are subject to our review of the
governing documents to the transaction. These fees do not include reimbursement
for out-of-pocket expenses which will be in addition to the fees quoted and will
be charged to you at cost. Out-of-pocket expenses that are to be reimbursed to
the bank include (but are not limited to) postage, overnight mail, telephone,
facsimile charges, stationery, accountants' fees and/or counsel fees (and their
expenses). If the above-referenced transaction should fail to be brought to a
successful conclusion, the bank reserves the right to charge our acceptance fee,
plus any out-of-pocket expenses that have been incurred. Please note that the
above fees are the bank's routine fees and, as such, do not include fees for
extraordinary services for non-routine services or default administration for
which other fees will be imposed upon appraisal by the bank's Corporate Trust
Services department. The bank reserves the right to amend this fee proposal upon
final review of the governing documents or to withdraw its offer to provide
Corporate Trust services prior to execution of the governing documents.
