Document:

<PAGE>

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN
STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT
AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE
INDEBTEDNESS EVIDENCED BY THIS INSTRUMENT IS SUBORDINATED TO THE PRIOR
INDEFEASIBLE CASH PAYMENT IN FULL OF THE SENIOR OBLIGATIONS IN RESPECT OF ALL
SENIOR DEBT (AS DEFINED HEREIN) IN ACCORDANCE WITH THE TERMS HEREOF. THE ISSUER
OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
REASONABLY SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER
OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.

                              ALLTRISTA CORPORATION
                            (A Delaware corporation)

Amount: $10,000,000                                               April 24, 2002

                     UNSECURED SUBORDINATED PROMISSORY NOTE

    For value received, ALLTRISTA CORPORATION, a Delaware corporation ("PAYOR"),
with its principal offices at 555 Theodore Fremd Avenue, Suite B302, Rye, New
York 10580, unconditionally promises to pay Tilia International, Inc. or its
assigns ("PAYEE"), the principal sum of Ten Million Dollars ($10,000,000). The
outstanding principal amount shall be due and payable on March 31, 2003 (the
"MATURITY DATE").

    1. INTEREST. The outstanding principal amount on this Unsecured Subordinated
Promissory Note (this "NOTE") shall bear no interest until this Note is paid in
full in accordance with SECTION 2. Notwithstanding the foregoing, any amount
outstanding under this Note shall bear interest from and after the Maturity Date
at the rate of eight (8%) per annum. Any interest on this Note accruing after
the Maturity Date shall accrue and be compounded daily until the obligation of
Payor with respect to the payment of such interest and principal has been
discharged (whether before or after judgment).

    2. PAYMENTS. Subject to the provisions of SECTION 4, Payor may prepay all or
any portion of this Note at any time without penalty. All payments shall be made
to Payee at its offices at, or at such other address as Payee may specify in
writing, and all such payments shall be accompanied by a certificate from an
officer of Payor certifying that Payor is not prohibited from making payments
under Sections 4.2(b)(i) and (ii). All payments received from Payor hereunder
shall be applied first, to the payment of any expenses due to Payee pursuant to
the terms of this Note, and second, to reduce the principal balance hereunder.
Any payments of expenses, principal or interest, if any, shall be made in U.S.
dollars.

    3. PURCHASE AGREEMENT. This Note is issued pursuant to the Asset Purchase
Agreement, dated as of March 27, 2002, among Tilia International, Inc., a Cook
Islands corporation, Tilia, Inc, a California corporation, Tilia Canada, Inc., a
corporation organized

<PAGE>

under the Canada Business Corporation Act, Alexander Schilling and Payor (the
"PURCHASE AGREEMENT"), and is subject to the provisions thereof, including,
without limitation, Section 13.2(a) of the Purchase Agreement. Capitalized terms
used herein shall the same meanings set forth in the Purchase Agreement unless
otherwise specifically defined herein.

    4. SUBORDINATION. By accepting this Note, Payee expressly agrees to
discharge its obligations under this SECTION 4.

    4.1. AGREEMENT TO SUBORDINATE. Payor and Payee agree that this Note is and
shall be subordinate, to the extent and in the manner hereinafter set forth, in
right of payment to the prior indefeasible cash payment in full of all of
Payor's payment obligations now or hereafter existing in respect of any Senior
Debt, whether for principal, interest (including, without limitation, interest,
accruing after the filing of a petition initiating any proceeding referred to in
SECTION 4.2 hereof whether or not such interest accrues after the filing of such
petition or is an allowed claim in such proceeding), fees, expenses or otherwise
(such payment obligations being the "SENIOR OBLIGATIONS").

    4.2. EVENTS OF SUBORDINATION.

    (a) Senior Debt Holders will be entitled to receive payment in full of all
Senior Obligations due in respect of Senior Debt (including interest after the
commencement of any bankruptcy proceeding at the rate specified in the
applicable Senior Debt) before Payee will be entitled to receive any payment
with respect to this Note, in the event of any distribution to creditors of
Payor: (i) in a liquidation or dissolution of Payor; (ii) in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to Payor
or its property; (iii) in an assignment for the benefit of creditors; or (iv) in
any marshaling of Payor's assets and liabilities.

    (b) Payor may not make any payment in respect of the Note:

         (i) in the event any default in the payment of principal of, interest
    or premium, if any, on any Designated Senior Debt occurs and is continuing
    beyond any applicable period of grace in the agreement, indenture or other
    document governing such Designated Senior Debt (a "PAYMENT EVENT OF
    DEFAULT"), or

         (ii) in the event any other default occurs and is continuing beyond any
    applicable period of grace with respect to any Designated Senior Debt (the
    "NON-PAYMENT EVENT OF DEFAULT") which permits Designated Senior Debt Holders
    as to which such default relates to accelerate its maturity and Payor
    receives notice of such default (a "PAYMENT BLOCKAGE NOTICE") from the
    Designated Senior Debt Holders (or their representative).

         (iii) Payments on this Note may and shall be resumed (x) in the case of
    a Payment Event of Default, upon the date on which such default is cured or
    waived and (y) in case of a Non-payment Event of Default, the earlier of the
    date on which such Non-payment Event of Default is cured or waived or 179
    days after the date on which the applicable Payment Blockage Notice is
    received unless a Payment Event of Default has occurred and is continuing
    with respect to the applicable Designated Senior Debt. No

                                       2
<PAGE>

    new period of payment blockage may be commenced by a Payment Blockage
    Notice unless and until (i) 360 days have elapsed since the first day of the
    effectiveness of the immediately prior Payment Blockage Notice and (ii) all
    scheduled payments of principal and interest on the Note that have come due
    have been paid in full in cash. No Nonpayment Event of Default that existed
    or was continuing on the date of delivery of any Payment Blockage Notice to
    Payor may be, or may be made, the basis for a subsequent Payment Blockage
    Notice.

    (c) Upon the occurrence of an Event of Default hereunder, Payor will
promptly notify the Senior Debt Holders of the Event of Default.

    (d) In the event that Payee receives any payment with respect to the Note at
a time when such payment is prohibited by SECTION 4.2 hereof and Payee, has
actual knowledge that such payment is prohibited by SECTION 4.2 hereof, such
payment (the "UNPERMITTED PAYMENT") shall be held by Payee, in trust for the
benefit of the Senior Debt Holders. Upon written request of a Designated Senior
Debt Holder (the "PAYMENT INSTRUCTION NOTICE"), Payee shall deliver the
Unpermitted Payment in trust to the senior most Designated Senior Debt Holder in
accordance with the instructions contained in the Payment Instruction Notice of
such Designated Senior Debt Holder, without regard to any other conflicting
instructions received by Payee. Under no circumstances shall Payee be liable to
Payor or to any Senior Debt Holders, or any other person, (i) for its delivery
to the senior most Designated Senior Debt Holder of any Unpermitted Payment upon
its receipt of a Payment Instruction Notice from a Designated Senior Debt Holder
as provided in this Section 4.2(d), or (ii) for its failure to deliver any
amounts pursuant to this paragraph to any other Designated Senior Debt Holder.
Payee shall not be required to determine the existence of any Senior Debt or the
existence or validity of any Designated Senior Debt Holder, or decide any
questions of law.

    (e) Payor shall promptly notify Payee in writing of any facts known to Payor
that would cause a payment of any amounts under this Note to violate this
SECTION 4.2, but failure to give such notice shall not affect the subordination
of this Note to the Senior Debt as provided in this SECTION 4.2, except as
specifically provided in Section 4.2(M).

    (f) After all Senior Debt is paid in full and until this Note is paid in
full, Payee shall be subrogated (equally and ratably with the holders of all
Indebtedness of Payor which by its express terms is subordinated to Senior Debt
of Payor to the same extent as the Note is subordinated and which is entitled to
like rights of subrogation) to the rights of Senior Debt Holders to receive
distributions applicable to Senior Debt to the extent that distributions
otherwise payable to Payee have been applied to the payment of Senior Debt. A
distribution made under this SECTION 4.2 to Senior Debt Holders that otherwise
would have been made to Payee is not, as between Payor and Payee, a payment by
Payor on this Note.

    (g) This SECTION 4.2 defines the relative rights of Payee and Senior Debt
Holders. Nothing in this Note shall:

         (i) impair, as between Payor and Payee, the obligation of Payor, which
    is absolute and unconditional, to pay principal of and interest on this Note
    in accordance with its terms;

                                       3
<PAGE>

         (ii) affect the relative rights of Payee and creditors of Payor other
    than their rights in relation to Senior Debt Holders; or

         (iii) prevent the Payee from exercising its available remedies upon a
    Default or Event of Default, subject to the rights of Senior Debt Holders to
    receive distributions and payments otherwise payable to Payee.

    (h) If Payor fails because of this SECTION 4.2 to pay principal of or
interest on this Note on the due date, the failure is still a Default or Event
of Default.

    (i) No right of any holder of Senior Debt to enforce the subordination of
the Indebtedness evidenced by this Note shall be impaired by any act or failure
to act by Payor or Payee or by the failure of Payor or Payee to comply with the
terms of this Note (subject to Section 4.2(m) hereof.

    (j) Whenever a distribution is to be made or a notice given to Senior Debt
Holders, the distribution may be made and the notice given to their
representative.

    (k) Upon any payment or distribution of assets of Payor referred to in this
SECTION 4.2, Payee shall be entitled to rely upon any order or decree made by
any court of competent jurisdiction or upon any certificate of a representative
or of the liquidating trustee or agent or other Person making any distribution
to Payee of this Note for the purpose of ascertaining the Persons entitled to
participate in such distribution, the Senior Debt Holders and other Indebtedness
of Payor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this SECTION
4.2.

    (l) For the purposes of this Note, the Senior Obligations shall not be
deemed to have been paid in full unless the Senior Debt Holders shall have
received indefeasible cash payment in full of the Senior Obligations (whether
matured or unmatured).

    (m) Any payment under this Note is permitted and shall not be subject to
Section 4.2(d) hereof, unless such payment is specifically prohibited by Section
4.2(b) hereof and Payee has actual notice of such prohibition.

    5. RIGHT OF SETOFF. Subject to the limitations of and compliance with the
provisions set forth in Section 13 of the Purchase Agreement (including, without
limitation, Section 13.2(a) of the Purchase Agreement), and notwithstanding the
provisions of SECTION 4 above, if an indemnification claim is made against
Sellers under SECTION 13 of the Purchase Agreement for Buyer Losses and
indemnification is payable to the Buyer in accordance with the terms of Section
13 thereof (the "INDEMNIFIABLE AMOUNT"), Payor is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, and until the
Maturity Date, to set off and apply any and all such Indemnifiable Amounts
against any of and all the obligations of the Payor under this Note, provided
that Payor shall provide Payee with a minimum of ten (10) days advance written
notice to the address set forth on the signature page hereto (in accordance with
the notice provisions of the Purchase Agreement) of any intended setoff under
this Note irrespective of whether or not Payor shall have made any demand under
the Purchase Agreement. The rights of Payor under this SECTION 5 are in addition
to other rights and remedies (including other rights of setoff) which Payor may
have.

                                       4
<PAGE>

    6. NO VOTING RIGHTS. This Note shall not entitle Payee to any voting rights
or other rights as a stockholder of Payor.

    7. TRANSFERS. This Note may be transferred or assigned in whole or in part
by Payee to any other person or entity without the prior written consent of
Payor, provided that such transfer is in compliance with applicable federal and
state securities laws, if any, and Payee surrenders the original Note (or an
affidavit of lost promissory note containing appropriate indemnification) for
registration of transfer, duly endorsed, or accompanied by a duly executed
written instrument of transfer in form reasonably satisfactory to Payor.
Thereupon, a new promissory note for like principal amount will be issued to,
and registered in the name of, the transferee. Interest, if any, and principal
are payable only to the registered holder of this Note. Payee agrees to provide
a form W-8 to Payor on request.

    8. ASSIGNS. This Note shall inure to the benefit of and bind the successors,
permitted assigns, heirs, executors, and administrators of Payor and Payee.
Failure of Payee to assert any right herein shall not be deemed to be a waiver
thereof.

    9. EVENT OF DEFAULT. This Note shall become immediately due and payable upon
the occurrence of an Event of Default (as defined below), whereupon (i) this
Note and any interest shall become and be immediately due and payable, without
presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived by Payor; and (ii) Payee, at its option, may proceed to
enforce all other rights and remedies available to Payee under applicable law.
For purposes hereof, the occurrence of any of the following shall constitute an
"EVENT OF DEFAULT" under this Note:

    (a) the failure to make any payment of principal or any other amount payable
hereunder when due under this Note (whether or not prohibited by the
subordination provisions of SECTION 4) or the breach of any other condition or
obligation under this Note; or

    (b) the filing of a petition by or against Payor under any provision of
applicable bankruptcy or similar law; or appointment of a receiver, trustee,
custodian or liquidator of or for all or any part of the assets or property of
Payor; or the insolvency of Payor; or the making of a general assignment for the
benefit of creditors by Payor.

    10. DEFINITIONS.

    10.1. "CAPITAL LEASE OBLIGATION" means, at the time any determination is to
be made, the amount of the liability in respect of a capital lease that would at
that time be required to be capitalized on a balance sheet in accordance with
GAAP.

    10.2. "DEFAULT" shall mean any event that is, or with the passage of time or
the giving of notice or both would be, an Event of Default.

    10.3. "DESIGNATED SENIOR DEBT" shall mean (1) any Indebtedness outstanding
under the Senior Credit Facility, (2) any Indebtedness under the Senior
Subordinated Debt, and (3) after payment in full of all Senior Obligations under
the Senior Credit Facility and the Senior Subordinated Debt, any other Senior
Debt permitted under the Indenture the outstanding

                                       5
<PAGE>

principal amount of which is $25 million or more and that has been designated by
Payor as "Designated Senior Debt".

    10.4. "DESIGNATED SENIOR DEBT HOLDER" shall mean the trustee under the
Indenture, and the administrative agent under the Senior Credit Facility, and
any successors or assigns thereto, and any other Senior Debt Holder specifically
designated in writing by Payor. Any notice to a Specified Senior Debt Holder
shall be given in accordance with the notice provisions set forth in the
Indenture, Senior Credit Facility, or at the address set forth in the
designation provided by Payor with respect to any other Senior Debt Holder, as
applicable.

    10.5. "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect from time to time.

    10.6. "GUARANTEE" means a guarantee other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or
indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness.

    10.7. "GUARANTOR" means: (i) each of Payor's direct and indirect domestic
subsidiaries existing on the date of the Indenture, and (ii) any other
Subsidiary that executes a Guarantee in accordance with the provisions of the
Indenture.

    10.8. "HEDGING OBLIGATIONS" means the obligations of Payor under: (i)
interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements; and (ii) other agreements or arrangements designed to protect
Payor against fluctuations in interest rates.

    10.9. "INDEBTEDNESS" shall mean any indebtedness of Payor, whether or not
contingent, (1) in respect of borrowed money; (2) evidenced by bonds, notes,
debentures or similar instruments or letters of credit (or reimbursement
agreements in respect thereof); (3) in respect of banker's acceptances; (4)
representing Capital Lease Obligations; (5) representing the balance deferred
and unpaid of the purchase price of any property, except any such balance that
constitutes an accrued expense or trade payable; or (6) representing any Hedging
Obligations, if and to the extent any of the preceding items (other than letters
of credit and Hedging Obligations) would appear as a liability upon a balance
sheet of Payor prepared in accordance with GAAP. In addition, the term
"INDEBTEDNESS" includes all Indebtedness of others secured by a Lien on any
asset of Payor (whether or not such Indebtedness is assumed by Payor) and, to
the extent not otherwise included, a Guarantee by Payor of any Indebtedness of
any other Person. The amount of any Indebtedness outstanding as of any date will
be: (1) the accreted value of the Indebtedness, in the case of any Indebtedness
issued with original issue discount; (2) the principal amount of the
Indebtedness, together with any interest on the Indebtedness that is more than
30 days past due, in the case of any other Indebtedness; (3) the lesser of the
Indebtedness and the fair market value of the collateral asset, in the case of
any Indebtedness of others secured by a Lien on any asset of Payor; and (4) the
lesser of the primary Indebtedness and any stated

                                       6
<PAGE>

limit on recourse under the Guarantee, in the case of Indebtedness of others
secured by a guarantee of the specified Person.

    10.10. "INDENTURE" shall mean that certain Indenture, dated as of April 24,
2002, among Payor, the Guarantors and The Bank of New York, as trustee, as in
effect on the date hereof, together with such modifications and amendments as
may be consented to by Payor and Payee.

    10.11. "LIEN" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in any asset.

    10.12. "PERSON" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity.

    10.13. "SENIOR CREDIT FACILITY" shall mean that certain Credit Agreement,
dated as of April 24, 2002, by and among Payor, Bank of America, N.A., as
administrative agent, Banc of America Securities LLC, as co-lead arranger, and
CIBC World Markets Corp., as co-lead arranger, providing for $50.0 million of
term loan borrowings and up to $50.0 million of revolving credit borrowings,
including any related notes, guarantees, collateral documents, instruments and
agreements executed in connection therewith, and in each case as amended,
amended and restated, supplemented, modified, renewed, refunded, replaced or
refinanced from time to time.

    10.14. "SENIOR DEBT" shall mean: (i) the Senior Credit Facility and the
Senior Subordinated Debt, (ii) other Indebtedness of Payor permitted to be
incurred under the terms of the Indenture that is specifically identified in the
terms of such Indebtedness to rank in parity or senior to the Senior
Subordinated Debt, and (iii) all Senior Obligations with respect to the items
listed in the preceding clauses (i) and (ii). Notwithstanding anything to the
contrary in the preceding, Senior Debt shall not include: (i) any intercompany
Indebtedness of Payor or any of its subsidiaries to Payor or any of its
Affiliates, (ii) any liability for federal, state, local or other taxes owed or
owing, (iii) any trade payables, (iv) the portion of any Indebtedness that is
incurred in violation of the terms of any Senior Debt or (v) Indebtedness which,
when incurred and without respect to any election under Section 1111(b) of Title
11, United States Code, is without recourse to Payor or any Guarantor.

    10.15. "SENIOR DEBT HOLDERS" shall mean the beneficial owners of Senior Debt
and shall include any representatives thereof, including, but not limited to, in
the case of an indenture, the trustee under such indenture, or in the case of a
credit facility, the agent of the lender.

    10.16. "SENIOR OBLIGATIONS" shall have the meaning set forth in Section 4.1
hereof.

    10.17. "SENIOR SUBORDINATED DEBT" shall mean the senior subordinated notes
issued under the Indenture.

                                       7
<PAGE>

    10.18. "SUBSIDIARY" means, with respect to Payor: any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees of
the corporation, association or other business entity is at the time owned or
controlled, directly or indirectly, by Payor or one or more of the other
Subsidiaries of Payor (or a combination thereof); and any partnership (a) the
sole general partner or the managing general partner of which is Payor or a
Subsidiary of Payor or (b) the only general partners of which are Payor or one
or more Subsidiaries of Payor (or any combination thereof).

    11. USURY SAVINGS CLAUSE. Payor and Payee intend to comply at all times with
applicable usury laws. If at any time such laws would render usurious any
amounts due under this Note under applicable law, then it is Payor's and Payee's
express intention that Payor not be required to pay interest on this Note at a
rate in excess of the maximum lawful rate, that the provisions of this SECTION
11 shall control over all other provisions of this Note which may be in apparent
conflict hereunder, that such excess amount shall be immediately credited to the
principal balance of this Note, and the provisions hereof shall immediately be
reformed and the amounts thereafter decreased, so as to comply with the then
applicable usury law, but so as to permit the recovery of the fullest amount
otherwise due under this Note.

    12. COSTS. Payor agrees to pay all reasonable costs of collection of any
amounts due hereunder arising as a result of any default hereunder, including
without limitation, reasonable attorneys' fees and expenses.

    13. GOVERNING LAW. This Note is made in accordance with and shall be
construed under the laws of the State of Delaware, other than the conflicts of
law principles thereof.

    14. WAIVER. Payor hereby expressly waives presentment, demand for payment,
dishonor, notice of dishonor, protest, notice of protest and any other
formality.

                                       ALLTRISTA CORPORATION

                                       By: /s/ Ian G.H. Ashken
                                           --------------------------------
                                       Name:  Ian G.H. Ashken
                                       Title: Vice Chariman, Chief Financial
                                              Officer and Secretary

                                        8<PAGE>

                                ESCROW AGREEMENT

         This Escrow Agreement (this "Agreement"), dated as of April 24, 2002
among (i) Tilia International, Inc., a Cook Islands corporation ("Tilia"), (ii)
Tilia, Inc., a California corporation ("Tilia U.S."), (iii) Tilia Canada, Inc.,
a corporation organized under the Canada Business Corporation Act ("Tilia
Canada") (Tilia, Tilia U.S. and Tilia Canada are collectively referred to herein
as the "Sellers" and each individually as a "Seller"), (iv) Alltrista
Corporation, a Delaware corporation (the "Buyer"), (v) Alexander Schilling (the
"Sellers' Representative") and (vi) J.P. Morgan Trust Company, National
Association, as escrow agent (the "Escrow Agent").

                              W I T N E S S E T H:

         WHEREAS, the Buyer, the Sellers and the Sellers' Representative have
entered into that certain Asset Purchase Agreement, dated as of March 27, 2002
(the "Purchase Agreement"), pursuant to which certain amounts are to be placed
in escrow as a source of the payment for any indemnified claims that may arise
pursuant to Section 13 of the Purchase Agreement;

         WHEREAS, Section 3.1 of the Purchase Agreement provides that at the
Closing, the Buyer shall deposit in escrow with the Escrow Agent an amount equal
to $5,000,000, constituting a part of the purchase price under the Purchase
Agreement;

         WHEREAS, the Escrow Agent has agreed to act as escrow agent pursuant to
the terms of this Agreement; and

         WHEREAS, capitalized terms used herein shall have the same meanings as
set forth in the Purchase Agreement unless otherwise specifically defined
herein.

         NOW, THEREFORE, in consideration of the premises, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

         SECTION 1. Establishment of Escrow.

         (a) On the Closing Date, the Buyer will wire transfer in immediately
available funds to the Escrow Agent, in accordance with Section 3.3 of the
Purchase Agreement, an amount equal to $5,000,000 (the "Escrowed Amount").

         (b) The Escrow Agent hereby agrees to act as escrow agent and to hold,
safeguard and disburse the Escrowed Amount pursuant to the terms and conditions
hereof.

         SECTION 2. Investment of Funds. The Escrowed Amount shall be invested,
from time to time, to the extent possible, in the [Chase Investment Money Market
Account] or in such other instruments mutually agreed by both the Buyer and the
Sellers' Representative, with any remainder being deposited and maintained in a
money market deposit account with a bank organized under the laws of the United
States of America or of the State of California, which is insured by the Federal
Deposit Insurance Corporation, or in such other accounts mutually agreed

<PAGE>

by both the Buyer and the Sellers' Representative, until disbursement of the
entire Escrowed Amount. All interest or any other income earned with respect to
such investment shall be retained by the Escrow Agent as part of the Escrowed
Amount until distributed in accordance with other provisions of this Agreement.
For all federal, state and local income tax purposes, the Sellers, the Buyer and
the Escrow Agent shall treat each Seller as the owner of its pro rata portion of
the Escrowed Amount based on the percentage of the Purchase Price (as defined in
the Purchase Agreement) allocated to such Seller on Schedule 15 to the Purchase
Agreement. Accordingly, the Sellers shall pay all income, withholding and any
other taxes imposed on or measured by income, to the extent attributable to any
sums deposited with the Escrow Agent pursuant to Section 1 of this Agreement or
attributable to interest thereon and shall file, or cause to be filed, all tax
and information returns applicable thereto. The Escrow Agent is authorized to
liquidate any portion of the Escrowed Amount consisting of investments to
provide for payments required to be made under this Agreement.

         SECTION 3. Release of Escrowed Amount. The Escrow Agent shall release
the Escrowed Amount (as increased by any earnings thereon and as reduced by any
payments made from time to time pursuant to this Section 3 hereof, any Claim
Reserve or any losses on investments), as follows:

         (a) The Escrow Agent shall release the Escrowed Amount in accordance
with the written instructions of both the Buyer and the Sellers' Representative.

         (b) The Escrow Agent shall release such amounts as are authorized to be
paid to the Buyer pursuant to Section 4 below.

         (c) On March 31, 2003, the Escrow Agent shall distribute the Escrowed
Amount to Tilia, provided, that if there shall remain one or more Open Claims
and/or if the Escrow Agent shall have received one or more notices from the
Buyer pursuant to Section 4(a) below and/or any certificate from the Sellers'
Representative pursuant to Section 15 below, then the Escrow Agent shall
distribute the Escrowed Amount to Tilia less (i) the Claim Reserves in respect
of any Open Claims, (ii) the aggregate amount specified in such notices for
which a Claim Reserve has not been established, and (iii) the amount of the
Sellers' Representative Fees pursuant to Section 15 below specified in the
certificate sent by the Sellers' Representative's to the Escrow Agent.

         (d) Following March 31, 2003, the Escrow Agent shall from time to time
distribute to Tilia any Escrowed Amount that exceeds the amount of the Claim
Reserves with respect to any Open Claims as to which there has been no Final
Determination; provided that if the Escrow Agent shall have received one or more
notices from the Buyer pursuant to Section 4(a) below on or prior to March 31,
2003, and no Claim Reserve(s) shall have been established in respect of the
Claim or Claims referred in any such notice, the Escrow Agent shall retain as
part of the Escrowed Amount an amount equal to the aggregate of the amounts
specified by the Buyer in any such notices.

                                      -2-
<PAGE>

         SECTION 4. Buyer Claims. The procedure for payments from the Escrowed
Amount shall be as follows:

         (a) As the Buyer shall determine that it is entitled to an
indemnification payment under Section 13 of the Purchase Agreement (including
without limitation Section 13.2(a) thereof) , the Buyer may request payment from
the Escrowed Amount by giving written notice of such claim to the Escrow Agent
and to the Sellers' Representative, certifying in such notice the nature of the
claim in reasonable detail, the amount thereof if then ascertainable and, if not
then ascertainable, a good faith estimate of the amount thereof and the
provision(s) in the Purchase Agreement on which the claim is based. Buyer may
give notice of claim in accordance with this Section 4(a) at any time on or
prior to March 31, 2003 and no notice of claim may be given to the Escrow Agent
after March 31, 2003.

         (b) If, within thirty (30) calendar days after actual receipt by the
Sellers' Representative of the written notice of a claim from the Buyer in
accordance with Section 4(a), the Escrow Agent has not actually received written
objection to such claim from the Sellers' Representative, the claim stated in
such notice shall be conclusively deemed to be approved by the Sellers'
Representative and the Escrow Agent shall promptly thereafter pay to the Buyer
from the Escrowed Amount the amount of such claim to the extent of the funds in
the Escrowed Amount and shall notify the Sellers' Representative of such
payment.

         (c) If within said thirty (30) calendar days the Escrow Agent shall
have actually received from the Sellers' Representative a written objection to
the claim by the Buyer, stating the nature of and grounds for such objection (a
copy of which objection shall in each case be sent to the Buyer by the Sellers'
Representative in accordance with the provisions of Section 7 below), then such
claim shall be deemed to be an "Open Claim" and the Escrow Agent shall reserve
within the Escrowed Amount an amount equal to the amount of the Open Claim
(which amount for each Open Claim is referred to herein as the "Claim Reserve").

         (d) The amount constituting the Claim Reserve for each Open Claim shall
be paid by the Escrow Agent from the Escrowed Amount to the Buyer only either
(i) in accordance with a joint written instruction by the Buyer and the Sellers'
Representative or (ii) if and to the extent consistent with a copy of a final
judgment by or order of the Board of Arbitration referred to in Section 9 hereof
or a court of competent jurisdiction with respect to which any period of time to
appeal such judgment or order shall have lapsed pertaining to the Open Claim,
sent to the Escrow Agent by the Buyer or the Sellers' Representative, in any
case accompanied by a certification that any period of time to file an appeal of
such judgment or order has lapsed and no such appeal has been filed or is
otherwise pending (a "Final Determination"), and any portion of the Claim
Reserve for such Open Claim not so required to be paid to the Buyer shall be
deemed to be part of the remaining Escrowed Amount. The Escrow Agent shall,
within two banking days of having been given a copy of a Final Determination for
an Open Claim, pay the Buyer an amount equal to the aggregate amount payable to
the Buyer under the Final Determination for such Open Claim.

         (e) The parties to this Agreement hereby acknowledge and agree that all
instructions, directions or other communications given by the Buyer shall be
made pursuant to a writing signed by a duly authorized representative thereof,
and that all instructions, directions or

                                      -3-
<PAGE>

other communications given by the Sellers' Representative shall be made pursuant
to a writing signed by the Sellers' Representative or, in the event of his death
or disability, his executor or guardian, as the case may be.

         SECTION 5. Termination of Escrow. This Agreement shall terminate at
such time as there is no longer any Escrowed Amount. The provisions of Section 6
shall survive a termination of this Agreement.

         SECTION 6. Duties of the Escrow Agent

         (a) The duties and obligations of the Escrow Agent, in its capacity as
such, shall be determined solely by the express provisions of this Agreement and
the Escrow Agent shall not be liable except for the performance of such duties
and obligations as are specifically set forth in this Agreement. The Escrow
Agent shall not be bound in any way by any other agreement or contract among any
of the parties (whether or not the Escrow Agent has knowledge thereof).

         (b) The Escrow Agent shall not be liable, except for its own gross
negligence or willful misconduct and, except with respect to claims based upon
such gross negligence or willful misconduct that are successfully asserted
against the Escrow Agent, the Buyer shall indemnify and hold harmless the Escrow
Agent (and any successor of the Escrow Agent) from and against any and all
losses, liabilities, claims, actions, damages and expenses, including reasonable
attorneys' fees and disbursements, arising out of and in connection with this
Agreement. Without limiting the foregoing, the Escrow Agent shall in no event be
liable in connection with its investment or reinvestment of any cash held by it
hereunder in good faith, in accordance with the terms hereof, including, without
limitation, any liability for any delays (not resulting from its gross
negligence or willful misconduct) in the investment or reinvestment of the
Escrowed Amount, or any loss of interest incident to any such delays. In no
event shall Escrow Agent be liable for special, indirect or consequential loss
or damage of any kind whatsoever (including but not limited to lost profits),
even if the Escrow Agent has been advised of the likelihood of such loss or
damage and regardless of the form of action.

         (c) The Escrow Agent shall be entitled to rely in good faith upon any
order, judgment, certification, demand, notice, instrument or other writing
delivered to it hereunder without being required to determine the authenticity
or the correctness of any fact stated therein or the propriety or validity of
the service thereof. The Escrow Agent may act in good faith in reliance upon any
instrument or signature believed by it to be genuine and may assume that the
person purporting to give receipt or advice or make any statement or execute any
document in connection with the provisions hereof has been duly authorized to do
so. In the administration of the Escrowed Amount, the Escrow Agent may execute
any of its powers and perform its duties hereunder directly or through agents or
attorneys and may, consult with counsel, accountants and other skilled persons
to be selected and retained by it. The Escrow Agent shall not be liable for the
performance of agents or for anything done, suffered or omitted in good faith by
it in accordance with the advice or opinion of any such counsel, accountants or
other skilled persons.

         (d) If a controversy arises between one or more of the parties hereto,
or between any of the parties hereto and any person not a party hereto, as to
whether or not or to

                                      -4-
<PAGE>

whom the Escrow Agent shall deliver the Escrowed Amount or any portion thereof
or as to any other matter arising out of or relating to this Agreement or the
Escrowed Amount deposited hereunder, the Escrow Agent shall not be required to
determine the same and need not make any delivery of the Escrowed Amount or any
portion thereof but may retain it without liability to anyone until the rights
of the parties to the dispute shall have finally been determined by (i) mutual
agreement, or (ii) a copy of a final judgment by or order of a board of
arbitration or a court of competent jurisdiction with respect to which any
period of time to appeal such judgment or order shall have lapsed, accompanied
by a certification that any period of time to file an appeal of such judgment or
order has lapsed and no such appeal has been filed or is otherwise pending, but
the Escrow Agent shall be under no duty whatsoever to institute or defend any
such proceedings. The Escrow Agent shall be entitled to assume that no such
controversy has arisen unless it has received conflicting written notice from
the parties to this Agreement or a written notice from any person that such a
controversy has arisen which refers specifically to this Agreement and
identifies by name and address the adverse claimants to the controversy.

         (e) The Escrow Agent hereby accepts its appointment and agrees to act
as the Escrow Agent under the terms and conditions of this Agreement. By such
acceptance and agreement, however, the Escrow Agent shall not be deemed to have
waived any right with respect to any transaction or representation (other than
its service as Escrow Agent hereunder) between or among it and any other party
or parties hereto.

         (f) Any company into which the Escrow Agent may be merged or converted
or with which it may be consolidated or any company resulting from any merger
conversion or consolidation to which it shall be a party or any company to which
the Escrow Agent may sell or transfer all of substantially all of its
escrow/custody business, provided such company shall be eligible to serve as
Escrow Agent hereunder, shall be the successor hereunder to the Escrow Agent
without the execution or filing of any paper or any further act. In the event
the Escrow Agent becomes unavailable or unwilling to continue in its capacity
hereunder, the Escrow Agent may resign and be discharged from its duties or
obligations by giving notice of its resignation to the parties to this
Agreement, specifying a date not less than sixty (60) calendar days following
such notice date when such resignation shall take effect. Buyer and the Sellers'
Representative shall jointly designate a successor Escrow Agent prior to the
expiration of such sixty (60) calendar days period by giving written notice to
the resigning Escrow Agent. If at that time the Escrow Agent has not received a
designation of a successor escrow agent, the Escrow Agent's sole responsibility
after that time shall be to retain and safeguard the Escrowed Amount until
receipt of a designation of successor escrow agent from the Buyer and the
Sellers' Representative. The Escrow Agent shall promptly transfer the Escrowed
Amount to such designated successor.

         (g) The Escrow Agent shall be reimbursed for all reasonable expenses,
disbursements and advances incurred or made by the Escrow Agent in performance
of its duties hereunder (including reasonable fees, expenses and disbursements
of its counsel). Such fees, costs and expenses payable to the Escrow Agent shall
be borne one-half by the Sellers and one-half by the Buyer.

         (h) The Sellers and the Buyer shall reimburse and indemnify the Escrow
Agent for, and hold it harmless against, any loss, liability or expense,
including but not limited to

                                      -5-
<PAGE>

reasonable counsel fees, incurred without bad faith, willful misconduct or gross
negligence on the part of the Escrow Agent arising out of or in connection with
its acceptance of, or the performance of its duties and obligations under this
Agreement as well as the costs and expenses of defending against any claim or
liability arising out of or relating to this Agreement. Such reimbursement to
and indemnification of the Escrow Agent shall be borne one-half by the Sellers
and one-half by the Buyer.

         (i) The Sellers, the Buyer and the Escrow Agent agree to be bound by
the terms set forth on Exhibit A hereto.

         SECTION 7. Notices. All notices, consents, waivers and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (a) delivered by hand (with written confirmation of
receipt), (b) sent by facsimile (with written confirmation of receipt) provided
that a copy is mailed by registered mail, return receipt requested, or (c) when
received by the addressee, if sent by a nationally recognized overnight delivery
service (receipt requested), in each case to the appropriate addresses and
facsimile numbers set forth below (or to such other addresses and facsimile
numbers as a party may designate by notice to the other parties):

If to the Sellers:
                   Tilia, Inc.
                   Tilia International, Inc.
                       c/o Tilia, Inc.
                   Tilia Canada, Inc.
                       c/o Tilia, Inc.
                   303 Second Street
                   North Tower, 5th Floor
                   San Francisco, CA 94107
                   Attn: Alexander Schilling
Copy to:

                   Morrison & Foerster LLP
                   755 Page Mill Road
                   Palo Alto, CA  94304-1018
                   Attn:  Paul L. Lion III
                   Telecopy:  (650) 494-0792

If to the Sellers' Representative:

                   Alexander Schilling
                   c/o Tangent Fund Management, L.L.C.
                   One Union Square
                   180 Geary Street, Suite 500
                   San Francisco, CA 84108
                   Telecopy:  (415) 392 1928

Copy to:

                                      -6-
<PAGE>

                   Morrison & Foerster LLP
                   755 Page Mill Road
                   Palo Alto, CA  94304-1018
                   Attn:  Paul L. Lion III
                   Telecopy:  (650) 494-0792

If to the Buyer:

                   Alltrista Corporation
                   555 Theodore Fremd Avenue, Suite B302
                   Rye, New York 10580
                   Attn:  Ian G.H. Ashken
                   Telecopy: (914) 967-9405

Copy to:

                   Willkie Farr & Gallagher
                   787 7th Avenue
                   New York, New York 10019-6099
                   Attn:  William J. Grant, Esq. and Michael A. Schwartz, Esq.
                   Telecopy: (212) 728-8111

If to Escrow Agent:

                   J.P. Morgan Trust Company, National Association
                   101 California Street, Suite #3800
                   San Francisco, CA  94111
                   Attn:  Hank Helley
                   Telecopy: (415) 954-2371

         SECTION 8. Governing Law; Jurisdiction. THIS AGREEMENT SHALL BE
CONSTRUED, PERFORMED AND ENFORCED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS
OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS
OF LAWS THEREOF.

         SECTION 9. Arbitration. All disputes between the Buyer and the Sellers
and the Sellers' Representative arising out of this Agreement shall be submitted
to binding arbitration in accordance with the provisions of Section 13.2(e) of
the Purchase Agreement.

         SECTION 10. Counterparts. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original and all of which,
when taken together, will be deemed to constitute one and the same.

         SECTION 11. Section Headings. The headings of sections in this
Agreement are provided for convenience only and will not affect its construction
or interpretation.

         SECTION 12. Waiver. The rights and remedies of the parties to this
Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power, or privilege under this Agreement
or the documents referred to in this

                                      -7-
<PAGE>

Agreement will operate as a waiver of such right, power, or privilege, and no
single or partial exercise of any such right, power, or privilege will preclude
any other or further exercise of such right, power, or privilege or the exercise
of any other right, power, or privilege. To the maximum extent permitted by
applicable law, (a) no claim or right arising out of this Agreement or the
documents referred to in this Agreement can be discharged by one party, in whole
or in part, by a waiver or renunciation of the claim or right unless in a
writing signed by the other party; (b) no waiver that may be given by a party
will be applicable except in the specific instance for which it is given; and
(c) no notice to or demand on one party will be deemed to be a waiver of any
obligation of such party or of the right of the party giving such notice or
demand to take further action without notice or demand as provided in this
Agreement or the documents referred to in this Agreement.

         SECTION 13. Exclusive Agreement and Modification. This Agreement and
the Purchase Agreement supersede all prior agreements among the parties with
respect to their subject matter and constitute (along with the documents
referred to in this Agreement) a complete and exclusive statement of the terms
of the agreement between the parties with respect to their subject matter. This
Agreement may not be amended except by a written agreement executed by all of
the parties hereto.

         SECTION 14. Assignment. Neither this Agreement nor any right or
interest hereunder may be assigned in whole or in part by any party without the
prior consent of the other parties hereto and any such attempted assignment
without such prior written consent shall be void and of no force and effect,
provided, that the Buyer may assign its rights hereunder to one or more
Affiliates and to any party providing financing in connection with the
transactions contemplated hereby (provided that such assignment shall not serve
as a novation) and the Sellers may assign their rights and obligations to a
liquidating trust or similar entity, to the shareholders of Tilia or their
assignees or to other Affiliates of the Sellers, provided further, that no such
assignment shall reduce or otherwise vitiate any of the obligations of the
Sellers or the Escrow Agent hereunder. This Agreement shall inure to the benefit
of and shall be binding upon the successors and permitted assigns of the parties
hereto.

         SECTION 15. Sellers' Representative Expenses.

         (a) If Sellers' Representative pays fees and expenses on behalf of
Tilia, pursuant to a separate agreement to be entered into between Tilia and the
Sellers' Representative, the Sellers' Representative shall have the right to be
reimbursed of such expenses and fees (the "Sellers' Representative's Fees") from
any remaining Escrowed Amount which shall not have been distributed to the Buyer
by the Escrow Agent pursuant to this Agreement; provided that the Escrow Agent
shall have received from the Sellers' Representative, on or prior to March 31,
2003, a written certificate setting forth the amount of the Seller's
Representative's Fees owed or to be owed by Tilia to the Seller's
Representative.

         (b) The reimbursement of the Sellers' Representative's Fees shall be
made by the Escrow Agent to the Sellers' Representative promptly following any
distribution required pursuant to Section 3(c); provided, however, that the
Escrow Agent shall reimburse to the Sellers' Representative that portion of the
Sellers' Representative's Fees to the extent the Escrowed Amount exceeds the
amount of the Claim Reserves plus the amount set forth in any

                                       -8-
<PAGE>

notice of the Buyer pursuant to Section 4(a) for which no Claim Reserve has yet
been established.

         SECTION 16. Tax Reporting The Sellers agree to provide the Escrow Agent
with certified tax identification numbers for each Seller by furnishing
appropriate Forms W-9 (or Forms W-8, in the case of non-U.S. persons) and other
forms and documents that the Escrow Agent may reasonably request (collectively,
"Tax Reporting Documentation") to the Escrow Agent within thirty (30) days after
the date hereof.

                            [Signature pages follow]

                                       -9-
<PAGE>

         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement as of the date first written above.

                                       ALLTRISTA CORPORATION

                                       By: /s/ Ian G.H. Ashken
                                           --------------------------------
                                       Name:  Ian G.H. Ashken
                                       Title: Vice Chariman, Chief Financial
                                              Officer and Secretary

                                       TILIA INTERNATIONAL INC.
                                       by Corporate Directors Limited, Director

                                       By: /s/ Leanne Corvette
                                           -------------------------------------
                                           Name:  Leanne Corvette
                                           Title: Authorized Signatory

                                       TILIA INC.

                                       By: /s/ Linda Graebner
                                           -------------------------------------
                                           Name:  Linda Graebner
                                           Title: President and CEO

                                       TILIA CANADA, INC.

                                       By: /s/ Linda Graebner
                                           -------------------------------------
                                           Name:  Linda Graebner
                                           Title: President and CEO

                                       By: /s/ Alexander Schilling
                                           -------------------------------------
                                           Alexander Schilling
                                           As Sellers' Representative

                           [SELLER'S ESCROW AGREEMENT]

<PAGE>

                                       J.P. MORGAN TRUST COMPANY, NATIONAL
                                       ASSOCIATION as Escrow Agent

                                       By: /s/ Hans H. Helley
                                           -------------------------------------
                                           Name:  Hans H. Helley
                                           Title: Vice President

                           [SELLER'S ESCROW AGREEMENT]

<PAGE>

                                    EXHIBIT A

1. Specimen Signatures The Escrow Agent may rely on the signatures contained on
the signature page hereto as the specimen signatures of the parties, until
changed in writing by a certificate to the Escrow Agent from the party so
changing.

2. Funds Transfer Language

a) In the event funds transfer instructions are given (other than in writing at
the time of execution of the Escrow Agreement) whether in writing, by telecopier
or otherwise, the Escrow Agent is authorized to seek confirmation of such
instructions by telephone call-back to the person or persons designated on
Attachment "A" hereto, and the Escrow Agent may rely upon the confirmations of
anyone purporting to be the person or persons so designated. The persons and
telephone numbers for call-backs may be changed only in a writing actually
received and acknowledged by the Escrow Agent. The parties to this Agreement
acknowledge that such security procedure is commercially reasonable.

b) It is understood that the Escrow Agent and the beneficiary's bank in any
funds transfer may rely solely upon any account numbers or similar identifying
number provided by either of the other parties hereto to identify (I) the
beneficiary, (ii) the beneficiary's bank, or (iii) an order it executes using
any such identifying number, even where its use may result in a person other
than the beneficiary being paid, or the transfer of funds to a bank other than
the beneficiary's bank, or an intermediary bank designated.

                           [SELLER'S ESCROW AGREEMENT]

<PAGE>

                                  Attachment A

                Telephone Number(s) for Call-Backs and Person(s)

          Designated to Confirm Funds Transfer and Payment Instructions

Escrow Agent is authorized to confirm payment instructions issued in the name of
any of the parties to this Agreement with any person purporting to be the person
designated on behalf of such party as indicated below, whether or not that
person is the person who has issued the payment instructions to the Escrow
Agent.

Name                                       Telephone Number
----                                       ----------------
FOR THE BUYER:
Ian G.H. Ashken                            (914) 967-9400

Martin E. Franklin

Desiree DeStefano

---------------------------------------    -------------------------------------
FOR SELLERS' REPRESENTATIVE:
Alexander Schilling                        (415) 392-9228 ext. 223

Hanns J. Kristen                           (415) 459-8692

                           [SELLER'S ESCROW AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}]]