Document:

Purchase Agreement

 Exhibit 10.b 
  
 EXECUTION COPY 
  
 CROWN HOLDINGS, INC. 
  
 ISSUANCE BY 
  
 CROWN AMERICAS, LLC 
 and 
 CROWN AMERICAS CAPITAL CORP. 
  
 OF 
  
 $500,000,000 7 5/8% Senior Notes due 2013 

$600,000,000 7 3/4% Senior Notes due 2015  
  
 Purchase Agreement 
  
 New York, New York

 November 8, 2005 
  
 Citigroup Global Markets Inc. 
 Lehman Brothers Inc. 
 Deutsche Bank Securities Inc. 
 Banc of America Securities LLC 
 As
Representatives of the several Initial 
 Purchasers named in Schedule I hereto 
 c/o Citigroup Global Markets Inc. 
 388 Greenwich Street 
 New York, New York 10013 
  
 Ladies and Gentlemen: 
  
 Crown Holdings, Inc., a Pennsylvania corporation (“Holdings”), and the indirect parent company of Crown
Americas, LLC, a Pennsylvania limited liability company (the “Company”) and Crown Americas Capital Corp. a Delaware Corporation (“Crown Americas Capital”), proposes that the Company and Crown Americas Capital issue
and sell to the several purchasers named in Schedule I hereto (the “Initial Purchasers”), for whom Citigroup Global Markets Inc. (“Citigroup”), Lehman Brothers Inc., Deutsche Bank Securities Inc. and Banc of
America Securities LLC (the “Representatives”) are acting as representatives, $500,000,000 aggregate principal amount of their 7 5/8% Senior Notes due 2013 (the “2013 Notes”) and $600,000,000 aggregate principal amount of its 7 3/4% Senior Notes due 2015 (the “2015 Notes” and, together with the 2013 Notes, the “Notes”). The 2013 Notes will be issued pursuant to an
indenture to be dated as of November 18, 2005 (the “2013 Notes Indenture”) among the Company, Crown Americas Capital, Holdings, as guarantor, the other guarantors named in Schedule II hereto (together with Holdings,
the “Guarantors” and, together with the Company and Crown Americas Capital, the “Issuers”) and Citibank, N.A., as trustee (the “2013 Notes Trustee”). The 2015 Notes will be issued pursuant to an
indenture to be dated as of 

 
November 18, 2005 (the “2015 Notes Indenture” and, together with the 2013 Notes Indenture, the “Indentures”) among the
Issuers and Citibank, N.A., as trustee (the “2015 Notes Trustee” and, together with the 2013 Notes Trustee, the “Trustees”). The 2013 Notes will have the benefit of the guarantees (the “2013 Note
Guarantees” and, together with the 2013 Notes, the “2013 Securities”) provided for in the 2013 Notes Indenture. The 2015 Notes will have the benefit of the guarantees (the “2015 Note Guarantees” and,
together with the 2015 Notes, the “2015 Securities” and, together with the 2013 Securities, the “Securities”) provided for in the 2015 Notes Indenture. The use of the neuter in this Agreement shall include the
feminine and masculine wherever appropriate. Certain terms used herein are defined in Section 18 hereof. 
  
 Holders of the 2013 Securities will also have the benefit of a registration rights agreement to be dated as of November 18, 2005 (the “2013
Notes Registration Rights Agreement”) among the Issuers and the Initial Purchasers. Holders of the 2015 Securities will also have the benefit of a registration rights agreement to be dated as of November 18, 2005 (the “2015
Notes Registration Rights Agreement” and, together with the 2013 Notes Registration Rights Agreement, the “Registration Rights Agreements”) among the Issuers and the Initial Purchasers. Pursuant to the Registration Rights
Agreements, the Issuers will agree to register the Securities under the Act subject to the terms and conditions therein specified. 
  
 The Securities are being issued in connection with the refinancing plan of Holdings, as described in the Final Memorandum (the “Refinancing
Plan”). In connection with the Refinancing Plan, (x) Holdings, the Company, Crown European Holdings SA (“CEH”) and the guarantors party thereto will enter into a new credit agreement to be dated as of the Closing Date
(the “New Credit Facility”) which will provide for (a) a $500 million term loan B maturing in 2012 of which $250 million will be borrowed by the Company and the foreign currency equivalent of $250 million will be borrowed
by CEH and (b) a $800 million revolving credit facility maturing in 2011 of which $410 million will be available to the Company and the foreign currency equivalent of $390 million will be available to CEH and certain of its subsidiaries, in
each case, as more fully described in the Final Memorandum under the heading “Description of Certain Indebtedness—New Credit Facilities” and (y) Holdings will consummate tender offers (the “Tender Offers”) for
its outstanding (a) 9 1/2% Second Priority Senior Secured Notes due 2011 (the “Dollar Second
Priority Notes), (b) 10 1/4% Second Priority Senior Secured Notes due 2011 (the “Euro Second
Priority Notes” and, together, with the Dollar Second Priority Notes, the “Second Priority Notes”) and (c) 10 7/8% Third Priority Senior Secured Notes due 2013 (the “Third Priority Notes” and, together with the Second Priority Notes, the “CEH Notes”), in each case issued by CEH,
and in connection therewith Holdings, CEH and their respective subsidiaries that have issued guarantees of the CEH Notes will enter into supplemental indentures (the “Supplemental Indentures”) with the trustees for the CEH Notes
pursuant to which substantially all of the restrictive covenants applicable to the CEH Notes will cease to apply to the CEH Notes and the collateral securing the CEH Notes will be released. This Agreement, the Securities, the Indentures, the
Registration Rights Agreements, the New Credit Facility, the Supplemental Indentures and other documents relating to the Tender Offers and the agreements and instruments to which Holdings or any of its subsidiaries is a signatory relating to the
issuance of the Securities contemplated hereby, collectively are referred to herein as the “Transaction Documents”. 
  

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 The sale of the Securities to the Initial Purchasers will be made without registration of the Securities
under the Act in reliance upon exemptions from the registration requirements of the Act. 
  
 In connection with the sale of the Securities, the Issuers have prepared a preliminary offering memorandum dated November 7, 2005 (as amended or supplemented at the Execution Time, including any and all exhibits
thereto and any information incorporated by reference therein, the “Preliminary Memorandum”) and a final offering memorandum dated November 8, 2005 (as amended or supplemented at the Execution Time, including any and all
exhibits thereto and any information incorporated by reference therein, the “Final Memorandum”). Each of the Preliminary Memorandum and the Final Memorandum sets forth certain information concerning the Issuers and the Securities.
The Issuers hereby confirm that they have authorized the use of the Preliminary Memorandum and the Final Memorandum, and any amendment or supplement thereto, in connection with the offer and sale of the Securities by the Initial Purchasers. Unless
stated to the contrary, any references herein to the terms “amend”, “amendment” or “supplement” with respect to the Final Memorandum shall be deemed to refer to and include any information filed under the Exchange Act
which is incorporated by reference therein. 
  
 1.
Representations and Warranties. The Issuers, jointly and severally, represent and warrant to each Initial Purchaser as set forth below in this Section 1. 
  
 (a) The Preliminary Memorandum, at the date thereof, did not contain any untrue statement of a material fact
or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. At the Execution Time and on the Closing Date (as defined below), the Final Memorandum did
not, and will not (and any amendment or supplement thereto, at the date thereof and at the Closing Date, will not), contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided, however, that the Issuers make no representation or warranty as to the information contained in or omitted from the Preliminary Memorandum or the Final
Memorandum, or any amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to the Issuers by or on behalf of the Initial Purchasers specifically for inclusion therein. 
  
 (b) None of the Issuers or their respective Affiliates, or
any person acting on behalf of any of them (other than the Initial Purchasers as to which the Issuers make no representation or warranty), has, directly or indirectly, made offers or sales of any security, or solicited offers to buy any security,
under circumstances that would require the registration of the Securities under the Act. Assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 4 of this Agreement, it is not necessary in connection
with the offer, sale and delivery of the Securities to the Initial Purchasers or the initial resale of the Securities by the Initial Purchasers, in each case, in the manner contemplated by this Agreement, to register any of the Securities under the
Act or to qualify either Indenture under the Trust Indenture Act. 
  

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 (c) None of the Issuers or their respective Affiliates, or any person acting on behalf of
any of them (other than the Initial Purchasers as to which the Issuers make no representation or warranty), has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with any offer
or sale of the Securities in the United States. 
  
 (d) The Securities satisfy the eligibility requirements of Rule 144A(d)(3) under the Act. 
  
 (e) None of the Issuers or their respective Affiliates, or any person acting on behalf of any of them (other than the Initial Purchasers
as to which the Issuers make no representation or warranty), has engaged in any “directed selling efforts” with respect to the Securities, and each of the Issuers and their respective Affiliates has complied with the “offering
restrictions” requirement of Regulation S. Terms used in this paragraph have the meanings given to them by Regulation S. 
  
 (f) No securities of any of the Issuers are of the same class (within the meaning of Rule 144A under the Act) as any of the Securities and
listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer quotation system. 
  
 (g) None of the transactions contemplated by this Agreement (including, without limitation, the use of the proceeds from the sale of the
Securities), will violate or result in a violation of Section 7 of the Exchange Act, or any regulation promulgated thereunder, including, without limitation, Regulations T, U or X of the Board of Governors of the Federal Reserve System.

  
 (h) The Issuers have been advised by the
NASD’s PORTAL Market that the Notes have been designated PORTAL-eligible securities in accordance with the rules and regulations of the NASD. 
  
 (i) None of the Issuers or their respective subsidiaries is, and after giving effect to the offering and sale of the Securities and the
application of the proceeds thereof as described in the Final Memorandum none of them will be, required to register as an “investment company” or a company “controlled by” an “investment company” within the meaning of
the Investment Company Act. 
  
 (j) Holdings is
subject to the reporting requirements of, and has timely filed all material required to be filed by it pursuant to, Section 13 or Section 15(d) of the Exchange Act. 
  
 (k) None of the Issuers or their respective Affiliates has paid or agreed to pay to any person any
compensation for soliciting another to purchase any securities of any of them (except as contemplated by this Agreement). 
  
 (l) None of the Issuers or their respective Affiliates has taken, directly or indirectly, any action designed to cause or which has
constituted or which might reasonably be expected to cause or result, under the Exchange Act or otherwise, in the 

  

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stabilization or manipulation of the price of any security of any of them to facilitate the sale or resale of the Securities. 
  
 (m) The information to be provided by the Issuers pursuant
to Section 5(h) hereof will not, at the date thereof, contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading. 
  
 (n) The statements set forth or
referenced under the headings “Crown’s Business—Legal Proceedings”, “Description of Certain Indebtedness”, “Description of the Notes”, “Registered Exchange Offer; Registration Rights” and
“Certain Tax Considerations” in the Final Memorandum fairly summarize the matters therein described. 
  
 (o) The statistical and market-related data included in the Final Memorandum are based on or derived from sources which the Issuers
believe to be reliable and accurate in all material respects. 
  
 (p) There are no contracts, agreements or other documents or pending legal or governmental proceedings to which any of the Issuers or their respective subsidiaries is a party or any property of any of the Issuers or
their respective subsidiaries is subject that would be required to be described in a prospectus under the Act that have not been described in the Final Memorandum (exclusive of any amendment or supplement thereto). The contracts, agreements and
other documents so described in the Final Memorandum are in full force and effect on the date of this Agreement. None of the Issuers or their respective subsidiaries or, to the knowledge of any Issuer, any other party is in breach of or default
under any such contracts, agreements or other documents, other than a breach or default that would not reasonably be expected to have a material adverse effect on (i) the issue and sale of the Securities or the consummation of the other
transactions contemplated by the Transaction Documents, the Tender Offers or the Refinancing Plan or (ii) the condition (financial or otherwise), prospects, earnings, business or properties of Holdings and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of business (“Material Adverse Effect”). 
  
 (q) Holdings and each of its subsidiaries has been duly organized and is validly existing as a corporation or other legal entity in good
standing under the laws of the jurisdiction in which it is organized, with full corporate or other statutory power and authority to own or lease, as the case may be, and operate its properties and conduct its business as described in the Final
Memorandum. Holdings and each of its subsidiaries is duly qualified to do business as a foreign corporation or other legal entity and is in good standing under the laws of each jurisdiction which requires such qualification, except where the failure
to do so qualify or be in good standing would not reasonably be expected to result in a Material Adverse Effect. 
  
 (r) All the outstanding shares of capital stock of each subsidiary of Holdings have been duly and validly authorized and issued and are
fully paid and except as set forth in the Final Memorandum, all outstanding shares of capital stock of such 

  

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subsidiaries are owned by Holdings, either directly or through wholly owned subsidiaries, free and clear of any perfected security interest or any other
security interests, claims, liens or encumbrances, except for any such perfected security interests, or other security interests, claims, liens or encumbrances described in the Final Memorandum or that would not reasonably be expected to result in a
Material Adverse Effect or an Event of Default (as defined in each Indenture). 
  
 (s) Holdings’ capitalization is as set forth in the “Actual” column of the table set forth under the heading
“Capitalization” in the Final Memorandum. On the Closing Date, Holdings’ capitalization will be consistent in all material respects with the “As Adjusted” column of the table set forth under the heading
“Capitalization” in the Final Memorandum. 
  
 (t) This Agreement shall have been duly authorized, executed and delivered by each such Issuer and, assuming the due authorization, execution and delivery thereof by the Initial Purchasers, will constitute the legal, valid and binding
obligation of each such Issuer, enforceable against such Issuer in accordance with its terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of
general applicability affecting creditors’ rights generally from time to time in effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether such
enforcement is considered in a proceeding at law or in equity) and except that any rights to indemnity and contribution further may be limited or prohibited by Federal or state securities laws and public policy considerations. 
  
 (u) The 2013 Notes Indenture has been duly authorized by
each of the Issuers and, assuming the due authorization, execution and delivery thereof by the 2013 Notes Trustee, when executed and delivered by each of the Issuers, will constitute the legal, valid and binding instrument of each of the Issuers,
enforceable against each of the Issuers in accordance with its terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of general applicability
affecting creditors’ rights generally from time to time in effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether such enforcement is considered in a
proceeding at law or in equity). The 2013 Notes Indenture meets the requirements for qualification under the Trust Indenture Act. 
  
 (v) The 2013 Notes have been duly authorized by the Company and Crown Americas Capital and, when executed and authenticated in accordance
with the provisions of the 2013 Notes Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms hereof, will have been duly executed and delivered by the Company and Crown Americas Capital and will constitute the
legal, valid and binding joint and several obligations of the Company and Crown Americas Capital, entitled to the benefits of the 2013 Notes Indenture and enforceable against the Company and Crown Americas Capital in accordance with their terms
(except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of general applicability affecting 

  

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creditors’ rights generally from time to time in effect and to general principles of equity and the discretion of the court before which any proceeding
therefor may be brought regardless of whether such enforcement is considered in a proceeding at law or in equity). 
  
 (w) The 2013 Note Guarantees have been duly authorized by the Guarantors and, when the 2013 Notes have been executed in accordance with
the provisions of the 2015 Notes Indenture, will have been duly executed and delivered by the Guarantors and will constitute legal, valid and binding obligations of the Guarantors, entitled to the benefits of the 2013 Notes Indenture and enforceable
against the Guarantors in accordance with their terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of general applicability affecting
creditors’ rights generally from time to time in effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether such enforcement is considered in a proceeding
at law or in equity). 
  
 (x) The 2015 Notes
Indenture has been duly authorized by each of the Issuers and, assuming the due authorization, execution and delivery thereof by the 2015 Notes Trustee, when executed and delivered by each of the Issuers, will constitute the legal, valid and binding
instrument of each of the Issuers, enforceable against each of the Issuers in accordance with its terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or
other laws of general applicability affecting creditors’ rights generally from time to time in effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether
such enforcement is considered in a proceeding at law or in equity). The 2015 Notes Indenture meets the requirements for qualification under the Trust Indenture Act. 
  
 (y) The 2015 Notes have been duly authorized by the Company and Crown Americas Capital, and, when executed
and authenticated in accordance with the provisions of the 2015 Notes Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms hereof, will have been duly executed and delivered by the Company and Crown Americas
Capital and will constitute the legal, valid and binding joint and several obligations of the Company and Crown Americas Capital, entitled to the benefits of the 2015 Notes Indenture and enforceable against the Company and Crown Americas Capital in
accordance with their terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of general applicability affecting creditors’ rights generally
from time to time in effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether such enforcement is considered in a proceeding at law or in equity).

  
 (z) The 2015 Note Guarantees have been duly
authorized by the Guarantors and, when the 2015 Notes have been executed in accordance with the provisions of the 2015 Notes Indenture, will have been duly executed and delivered by the Guarantors and will constitute legal, valid and binding
obligations of the Guarantors, entitled to the benefits of the 2015 Notes Indenture and enforceable against the Guarantors in 

  

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accordance with their terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance,
moratorium or other laws of general applicability affecting creditors’ rights generally from time to time in effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought
regardless of whether such enforcement is considered in a proceeding at law or in equity). 
  
 (aa) The 2013 Notes Registration Rights Agreement has been duly authorized by each of the Issuers and, assuming the due authorization,
execution and delivery thereof by the Representatives when executed and delivered by each of the Issuers, will constitute the legal, valid and binding obligation of each of the Issuers, enforceable against each of the Issuers in accordance with its
terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of general applicability affecting creditors’ rights generally from time to time in
effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether such enforcement is considered in a proceeding at law or in equity and except that any rights to
indemnity and contribution further may be limited or prohibited by Federal or state securities laws and public policy considerations). 
  
 (bb) The 2015 Notes Registration Rights Agreement has been duly authorized by each of the Issuers and, assuming the due authorization,
execution and delivery thereof by the Representatives when executed and delivered by each of the Issuers, will constitute the legal, valid and binding obligation of each of the Issuers, enforceable against each of the Issuers in accordance with its
terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of general applicability affecting creditors’ rights generally from time to time in
effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether such enforcement is considered in a proceeding at law or in equity and except that any rights to
indemnity and contribution further may be limited or prohibited by Federal or state securities laws and public policy considerations). 
  
 (cc) No holder of securities of any of the Issuers will be entitled to have such securities registered under the registration statements
required to be filed by the Issuers pursuant to the Registration Rights Agreements other than as expressly permitted thereby. 
  
 (dd) Each other Transaction Document has been duly authorized by each Issuer a party thereto and, assuming the due authorization,
execution and delivery thereof by the other parties thereto, when executed and delivered by each such Issuer will constitute the legal, valid and binding obligation of each such Issuer, enforceable against each such Issuer in accordance with its
terms (except that the enforcement thereof may be subject to applicable bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or other laws of general applicability affecting creditors’ rights generally from time to time in
effect and to general principles of equity and the discretion of the court before which any proceeding therefor may be brought regardless of whether such enforcement is considered in a proceeding at law or in equity and except that any rights to
indemnity and 

  

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contribution further may be limited or prohibited by Federal or state securities laws and public policy considerations). 
  
 (ee) The documents (or portions thereof) incorporated by
reference in the Final Memorandum, when they became effective or were filed with the Commission, as the case may be, complied as to form in all material respects with the requirements of the Act or the Exchange Act, as applicable, and none of such
documents contained an untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 (ff) No consent, approval, authorization, filing with or
order of any court or governmental agency or body is required in connection with the transactions contemplated by any of the Transaction Documents or otherwise in connection with the Tender Offers or the Refinancing Plan, except (i) in the case
of compliance with the terms of the Registration Rights Agreements such as will be obtained under the Act and the Trust Indenture Act, (ii) such as may be required under the blue sky laws of any state in connection with the purchase and
distribution of the Securities by the Initial Purchasers in the manner contemplated herein and in the Final Memorandum and the Registration Rights Agreements, and except where the failure to obtain the same would not reasonably be expected to have a
Material Adverse Effect. 
  
 (gg) None of the
execution and delivery by any of the Issuers party thereto of any of the Transaction Documents, the issue and sale of the Securities, the consummation of the other transactions contemplated by the Transaction Documents, the Tender Offers or of the
Refinancing Plan will conflict with, result in a breach or violation or imposition of any lien, charge or encumbrance upon any property or assets of any of the Issuers or their respective subsidiaries pursuant to (i) the organizational
documents of Holdings or any of its subsidiaries; (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which Holdings or
any of its subsidiaries is a party or bound or to which any property or assets of Holdings or any of its subsidiaries is subject; or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to Holdings or any of its
subsidiaries or any property or assets of Holdings or any of its subsidiaries of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over Holdings or any of its subsidiaries or
property or assets of any of its subsidiaries, except, in the case of clauses (ii) and (iii) above, as would not reasonably be expected to have a Material Adverse Effect or to materially adversely affect the rights of the holders of the
Securities or of the Initial Purchasers under the Transaction Documents. 
  
 (hh) The consolidated historical financial statements and schedules of Holdings and its consolidated subsidiaries included in the Final Memorandum present fairly in all material respects the financial condition,
results of operations and cash flows of Holdings and its consolidated subsidiaries as of the dates and for the periods indicated, comply as to form in all material respects with the applicable requirements of the Act and have been prepared in
conformity with generally accepted accounting principles applied on a 

  

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consistent basis throughout the periods involved (except as otherwise noted therein). The selected historical financial data set forth under the caption
“Selected Historical Financial Data” in the Final Memorandum comply as to form in all material respects with the applicable requirements of the Act (except that historical data for the fiscal years ended December 31, 2000 and 2001 is
omitted) and have been prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods involved (except as otherwise noted therein). The summary historical financial data set forth under the
caption “Summary—Summary Historical and Pro Forma Consolidated Condensed Financial Data” in the Final Memorandum fairly present, on the basis stated in the Final Memorandum, the information included therein. The pro forma financial
data included in the Final Memorandum include assumptions that provide a reasonable basis for presenting the significant effects directly attributable to the transactions and events described therein, the related pro forma adjustments give
appropriate effect to those assumptions, and the pro forma adjustments reflect the proper application of those adjustments to the historical amounts in the pro forma financial data included in the Final Memorandum. The pro forma financial statements
included in the Final Memorandum comply as to form in all material respects with the applicable requirements of Regulation S-X under the Act (except for the unaudited pro forma consolidated condensed statement of operations for the nine months
ended September 30, 2004, which does not comply as to form in all material respects with the applicable requirements of Regulation S-X under the Act because it is for a period other than a period required by Regulation S-X) and the pro forma
adjustments have been properly applied to the historical amounts in the compilation of such data. 
  
 (ii) Other than as set forth in the Final Memorandum, no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving Holdings or any of its subsidiaries or any property or assets of Holdings or any of its subsidiaries is pending or, to the knowledge of Holdings, threatened that would reasonably be expected to have a
Material Adverse Effect. 
  
 (jj) Holdings and
each of its subsidiaries owns or leases all such properties as are necessary to the conduct of its operations as presently conducted. Holdings and each of its subsidiaries has good and marketable title to, or valid leasehold interests in, or
easements or other limited property interests in, or is licensed to use, all its material properties and assets, except for minor defects that do not interfere with its ability to conduct its business as currently conducted or utilize such
properties and assets for their intended purposes, and except where failure to have such title, leasehold interests, easements or other limited property interests or licenses to use, in the aggregate, would not reasonably be expected to have a
Material Adverse Effect. All material properties and assets of Holdings and its subsidiaries are free and clear of all liens, charges, encumbrances or restrictions, except for Permitted Liens and as described in the Final Memorandum. Each of the
Issuers and their respective subsidiaries has good and marketable title to all personal property it purports to own, except as described in the Final Memorandum. 
  
 (kk) Neither Holdings nor any of its subsidiaries is in violation or default of (i) any provision of
its organizational documents; (ii) the terms of any indenture, contract, 

  

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lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which it is a party or
bound or to which its property or assets is subject; or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to it or any of its subsidiaries of any court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over it or any such subsidiaries or any of their respective property or assets, except, in the case of clauses (ii) and (iii) above, for any such violation or default which would not
reasonably be expected to have a Material Adverse Effect. 
  
 (ll) PricewaterhouseCoopers LLP, who have certified certain financial statements of Holdings and its consolidated subsidiaries and delivered their report with respect to the audited consolidated financial statements
and schedules included in the Final Memorandum, are independent public accountants with respect to Holdings within the meaning of the Act and the Exchange Act and the related published rules and regulations thereunder. 
  
 (mm) Holdings and each of its subsidiaries has filed all
foreign, federal, state and local tax returns that are required to be filed or has requested extensions thereof (except in any case in which the failure so to file would not reasonably be expected to have a Material Adverse Effect). Holdings and
each of its subsidiaries has paid all taxes required to be paid by it as shown in such return and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such assessment,
fine or penalty that is being contested in good faith or as would not reasonably be expected to have a Material Adverse Effect. 
  
 (nn) No labor problem or dispute with the employees of Holdings or any of its subsidiaries exists or is threatened or imminent, and there
is no existing or imminent labor disturbance or collective bargaining activities by the employees of Holdings or any of its subsidiaries or, to the knowledge of any of the Issuers, by the employees of any of the principal suppliers, contractors or
customers of Holdings or any of its subsidiaries, in each case, that would have a Material Adverse Effect. 
  
 (oo) Holdings and each of its subsidiaries, except as disclosed in the Final Memorandum, or to the extent it would not reasonably be
expected to have a Material Adverse Effect, is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged. All policies of
insurance and fidelity or surety bonds insuring Holdings or any of its subsidiaries or the businesses, assets, employees, officers and directors of Holdings or any of its subsidiaries are in full force and effect other than any policies of insurance
and fidelity or surety bonds that, if not in full force and effect, would not reasonably be expected to have a Material Adverse Effect. Holdings and each of its subsidiaries is in compliance with the terms of such policies and instruments in all
material respects. There are no claims by Holdings or any of its subsidiaries under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause, except for such claims which,
if successfully denied, would not reasonably be expected to have a Material Adverse Effect. Neither Holdings nor any of its subsidiaries has been refused any insurance coverage 

  

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sought or applied for. Neither Holdings nor any of its subsidiaries has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected to have a Material Adverse Effect. 
  
 (pp) No subsidiary of Holdings is prohibited, directly or
indirectly, from paying any dividends on such subsidiary’s capital stock, from making any other distribution on such subsidiary’s capital stock, from repaying to Holdings or any other subsidiary of Holdings any loans or advances to such
subsidiary from Holdings or such other subsidiary or from transferring any of such subsidiary’s property or assets to Holdings or any other subsidiary of Holdings, except as described in or contemplated by the Final Memorandum (exclusive of any
amendment or supplement thereto). 
  
 (qq)
Holdings and each of its subsidiaries owns or possesses adequate licenses or other rights to use all patents, trademarks, service marks, trade names, copyrights and know-how that are necessary to conduct their respective businesses as described in
the Final Memorandum, except where the failure to own or possess such licenses or other rights to use such patents, trademarks, service marks, trade names, copyrights and know-how would not reasonably be expected to have a Material Adverse Effect.
Neither Holdings nor any of its subsidiaries has received any notice of infringement of or conflict with (or knows of any such infringement of or conflict with) asserted rights of others with respect to any patents, trademarks, service marks, trade
names, copyrights or know-how that, if such assertion of infringement or conflict were sustained, could have a Material Adverse Effect. 
  
 (rr) Holdings and each of its subsidiaries possesses all licenses, certificates, permits and other authorizations issued by the
appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses as currently conducted, except where the failure to possess such licenses, certificates, permits or other authorizations would not
reasonably be expected to have a Material Adverse Effect, and neither Holdings nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which,
singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse Effect. 
  
 (ss) Holdings and each of its subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  

 -12- 

 (tt) (i) Holdings and each of its subsidiaries is in compliance in all material respects
with any and all applicable foreign, federal, state and local laws and regulations and rules of common law relating to pollution or the protection of the environment, natural resources or occupational health and safety, including without limitation
those relating to the release or threat of release of Hazardous Materials (“Environmental Laws”); (ii) Holdings and each of its subsidiaries has received and is in compliance in all material respects with all permits, licenses
or other approvals required of it under applicable Environmental Laws to conduct its businesses as currently conducted; (iii) neither Holdings nor any of its subsidiaries has received written notice of any actual or potential liability for the
investigation or remediation of any Hazardous Materials; (iv) there is no civil, criminal or administrative action, suit, demand, claim, hearing, notice of violation, investigation, proceeding, notice or demand letter or request for information
pending or, to the knowledge of any of the Issuers, threatened against Holdings or any of its subsidiaries under any Environmental Law; (v) no lien, charge, encumbrance or restriction has been recorded under any Environmental Law with respect
to any assets, facility or property owned, operated, leased or controlled by Holdings or any of its subsidiaries; (vi) neither Holdings nor any of its subsidiaries is subject to any order, decree, consent, settlement or agreement requiring, or
is otherwise obligated or required to perform, any response or corrective action relating to any Hazardous Materials; (vii) neither Holdings nor any of its subsidiaries has received written notice that it has been identified as a potentially
responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), or any comparable state or foreign law; (viii) no property or facility of Holdings or any of its
subsidiaries is (x) listed or, to the knowledge of the Issuers, proposed for listing on the National Priorities List under CERCLA or (y) listed in the Comprehensive Environmental Response, Compensation and Liability Information System List
promulgated pursuant to CERCLA, or on any comparable list maintained by any governmental authority; and (ix) there are no past or present actions, events, operations or activities which would reasonably be expected to prevent or interfere with
compliance by Holdings or any of its subsidiaries with any applicable Environmental Law or result in liability (including, without limitation, fines or penalties) under any applicable Environmental Law, except, in the case of each of clauses
(i) through (ix) above, as (A) described in the Final Memorandum (exclusive of any amendment or supplement thereto) or (B) would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect.
“Hazardous Materials” means any hazardous or toxic substance, chemical, material, pollutant, waste, contaminant or constituent, which is subject to regulation under or could give rise to liability under any Environmental Law.

  
 (uu) In the ordinary course of its business,
Holdings periodically reviews the effect of Environmental Laws on the business, operations and properties of Holdings and its subsidiaries, in the course of which it seeks to identify and evaluate associated costs and liabilities. On the basis of
such review, and except as described in the Final Memorandum, Holdings does not reasonably expect that such associated costs and liabilities would, singly or in the aggregate, have a Material Adverse Effect. 
  
 (vv) Holdings and each of its subsidiaries has fulfilled its
obligations, if any, under the minimum funding standards of Section 302 of the United States Employee 

  

 -13- 

 
Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations and published interpretations thereunder with respect to
each “plan” (as defined in Section 3(3) of ERISA and such regulations and published interpretations) in which employees of any of the Issuers or their respective subsidiaries are eligible to participate, and each such plan is, and on
the Closing Date will be, in compliance in all material respects with the presently applicable provisions of ERISA and such regulations and published interpretations. Neither Holdings nor any of its subsidiaries has incurred any unpaid liability to
the Pension Benefit Guaranty Corporation (other than for the payment of premiums in the ordinary course) under Title IV of ERISA. 
  
 (ww) None of the Issuers or any of their respective Affiliates or any director, officer, agent or employee of any of the Issuers or their
respective Affiliates has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or
domestic government official or employee from corporate funds; (iii) violated any provision of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.

  
 (xx) Except as disclosed in the Final
Memorandum, no income, stamp or other taxes or levies, imposts, deductions, charges, compulsory loans or withholdings whatsoever are or will be, under applicable law, the United States or any other jurisdiction of incorporation, organization or
formation, as the case may be, or tax residency of any of the Issuers, imposed, assessed, levied or collected by any Federal, state, local or foreign governmental taxing authority on or in respect of principal, interest, premiums and penalties or
other amounts payable under the Securities, or on account of the issue and sale by the Issuers of the Securities or the execution, delivery or performance of this Agreement, the Indentures or the Registration Rights Agreements or any payments
hereunder or thereunder. 
  
 (yy) The fair value
and present fair saleable value of the assets of each of the Issuers and their respective subsidiaries exceeds, and immediately after the consummation of the issue and sale of the Securities and the consummation of the other transactions
contemplated by the Transaction Documents will exceed, the sum of its stated liabilities and identified contingent liabilities. None of the Issuers or their respective subsidiaries is, and immediately after the consummation of the issue and sale of
the Securities and the consummation of the other transactions contemplated by the Transaction Documents none of them will be, (x) left with unreasonably small capital with which to carry on its business as it is proposed to be conducted,
(y) unable to pay its debts (contingent or otherwise) as they mature or (z) otherwise insolvent. 
  
 Any certificate signed by any officer of any of the Issuers and delivered to the Initial Purchasers or counsel for the Initial Purchasers pursuant to this
Agreement shall be deemed a representation and warranty by such Issuer, as to matters covered thereby, to each Initial Purchaser. 
  
 2. Purchase and Sale. Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company and
Crown Americas 

  

 -14- 

 
Capital agree to sell to each Initial Purchaser, and each Initial Purchaser agrees, severally and not jointly, to purchase from the Company and Crown
Americas Capital, at a purchase price equal to (a) in the case of the 2013 Notes, 98.5% of the principal amount thereof and (b) in the case of the 2015 Notes, 98.5% of the principal amount thereof, in each case, plus accrued interest, if
any, from November 18, 2005 to the Closing Date, the principal amount of Securities set forth opposite such Initial Purchaser’s name in Schedule I hereto. 
  
 3. Delivery and Payment. Delivery of and payment for the Securities shall be made at 10:00 A.M., New York City
time, on November 18, 2005, or at such time on such later date (not later than November 25, 2005) as the Initial Purchasers shall designate, which date and time may be postponed among the Initial Purchasers, the Company and Crown Americas
Capital or as provided in Section 9 hereof (such date and time of delivery and payment for the Securities being herein called the “Closing Date”). Delivery of the Securities shall be made to the Initial Purchasers for the
respective accounts of the several Initial Purchasers against payment by the several Initial Purchasers of the purchase price thereof to or upon the order of the Company by wire transfer payable in same-day funds to the account specified by the
Company. Delivery of the Securities shall be made through the facilities of The Depository Trust Company, or its designated custodian, unless the Initial Purchasers shall otherwise instruct. 
  
 4. Offering by Initial Purchasers. Each Initial Purchaser, severally
and not jointly, represents and warrants to and agrees with the Company and Crown Americas Capital that: 
  
 (a) It is a QIB and acknowledges that it is purchasing the Securities pursuant to a private sale exemption from registration under the
Act. 
  
 (b) It has not offered or sold, and will
not offer or sell, any Securities except (i) to those it reasonably believes to be qualified institutional buyers (as defined in Rule 144A under the Act) and that, in connection with each such sale, it has taken or will take reasonable steps to
ensure that the purchaser of such Securities is aware that such sale is being made in reliance on Rule 144A or (ii) in accordance with the restrictions set forth in Exhibit A hereto. 
  
 (c) Neither it nor any person acting on its behalf has made
or will make offers or sales of the Securities in the United States by means of any form of general solicitation or general advertising (within the meaning of Regulation D) in the United States. 
  
 5. Agreements. The Issuers, jointly and severally, agree with each
Initial Purchaser that: 
  
 (a) The Issuers will
furnish to each Initial Purchaser and to counsel for the Initial Purchasers, without charge, during the period referred to in paragraph (c) below, as many copies of the Final Memorandum and any amendments and supplements thereto as they may
reasonably request and the Final Memorandum as so delivered shall be in form and substance reasonably satisfactory to Citigroup. 
  
 (b) The Issuers will not amend or supplement the Final Memorandum, other than by filing documents under the Exchange Act that are
incorporated by reference 

  

 -15- 

 
therein, without the prior written consent of the Representatives; provided, however, that prior to the completion of the distribution of the
Securities by the Initial Purchasers (as determined by the Initial Purchasers), the Issuers will not file any document under the Exchange Act that is incorporated by reference in the Final Memorandum unless, prior to such proposed filing, the
Issuers have furnished the Representatives with a copy of such document for their review and the Representatives have not reasonably objected to the filing of such document. The Issuers will promptly advise the Initial Purchasers when any document
filed under the Exchange Act that is incorporated by reference in the Final Memorandum shall have been filed with the Commission. 
  
 (c) If at any time prior to the completion of the sale of the Securities by the Initial Purchasers (as determined by the Representatives),
any event occurs as a result of which the Final Memorandum, as then amended or supplemented, would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it should be necessary to amend or supplement the Final Memorandum to comply with applicable law, the Issuers promptly (i) will notify the Initial Purchasers of any such event;
(ii) subject to the requirements of paragraph (b) of this Section 5, will prepare an amendment or supplement that will correct such statement or omission or effect such compliance; and (iii) will supply any supplemented or
amended Final Memorandum to the several Initial Purchasers and counsel for the Initial Purchasers without charge in such quantities as they may reasonably request. 
  
 (d) To the extent an Issuer may do so under applicable law, the Issuers will arrange, if necessary, for the
qualification of the Securities for sale by the Initial Purchasers under the laws of such jurisdictions as the Initial Purchasers may reasonably designate and will maintain such qualifications in effect so long as required for the sale of the
Securities; provided that in no event shall any Issuer be obligated to qualify to do business in any jurisdiction where it is not now so qualified, to execute a general consent to service of process in any jurisdiction with respect to which
such a consent has not been previously executed or to subject itself to taxation in any jurisdiction wherein it would not otherwise be subject to tax but for the requirements of this paragraph. The Issuers will promptly advise the Representatives of
the receipt by any Issuer of any notification with respect to the suspension of the qualification of the Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose. 
  
 (e) The Issuers will not, and will not permit any of their
respective Affiliates to, resell any Securities that have been acquired by any of them. 
  
 (f) None of the Issuers or their respective Affiliates, or any person acting on behalf of any of them, will, directly or indirectly, make
offers or sales of any security, or solicit offers to buy any security, under circumstances that would require the registration of the Securities under the Act. 
  
 (g) None of the Issuers or their respective Affiliates, or any person acting on behalf of any of them, will
engage in any form of general solicitation or general 

  

 -16- 

 
advertising (within the meaning of Regulation D) in connection with any offer or sale of the Securities in the United States. 
  
 (h) So long as any of the Securities are “restricted
securities” within the meaning of Rule 144(a)(3) under the Act, each Issuer will, during any period in which it is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act or it is not exempt from such reporting
requirements pursuant to and in compliance with Rule 12g3-2(b) under the Exchange Act, provide to each holder of such restricted securities and to each prospective purchaser (as designated by such holder) of such restricted securities, upon the
request of such holder or prospective purchaser, any information required to be provided by Rule 144A(d)(4) under the Act. This covenant is intended to be for the benefit of the holders, and the prospective purchasers designated by such holders,
from time to time, of such restricted securities. 
  
 (i) None of the Issuers or their respective Affiliates, or any person acting on behalf of any of them, will engage in any “directed selling efforts” with respect to the Securities, and each of them will comply with the
“offering restrictions” requirement of Regulation S. Terms used in this paragraph have the meanings given to them by Regulation S. 
  
 (j) The Issuers will cooperate with the Representatives and use their respective reasonable best efforts to permit the Notes to be
eligible for clearance and settlement through The Depository Trust Company. The Issuers will cooperate with the Representatives and use their respective reasonable best efforts to permit the Notes to be designated as PORTAL-eligible securities in
accordance with the rules and regulations of the NASD. 
  
 (k) The Issuers will not for a period of 90 days following the Execution Time, without the prior written consent of Citigroup, offer, sell or contract to sell, or otherwise dispose of (or enter into any transaction which is designed
to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by any Issuer or any Affiliate of any Issuer or any person in privity with any
Issuer or any Affiliate of any Issuer), directly or indirectly, or announce the offering of, any debt securities issued or guaranteed by any Issuer (other than the Securities, notes under the New Credit Facility and inter-company notes). 

 
 (l) The Issuers will not take, directly or indirectly,
any action designed to or which has constituted or which might reasonably be expected to cause or result, under the Act or the Exchange Act or otherwise, in stabilization or manipulation of the price of any security of any Issuer to facilitate the
sale or resale of the Securities. 
  
 (m) The
Issuers, jointly and severally, agree to pay the costs and expenses relating to the following matters: (i) the preparation of the Indentures, the Registration Rights Agreements, the issuance of the Securities and the fees of the Trustees;
(ii) the preparation, printing or reproduction of the Preliminary Memorandum and the Final Memorandum and each amendment or supplement thereto; (iii) the printing (or 

  

 -17- 

 
reproduction) and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of the Preliminary Memorandum and
the Final Memorandum, and all amendments or supplements to either of them, as may, in each case, be reasonably requested for use in connection with the offering and sale of the Securities; (iv) the preparation, printing, authentication,
issuance and delivery of certificates for the Securities, including any stamp or transfer taxes in connection with the original issuance and sale of the Securities; (v) the printing (or reproduction) and delivery of this Agreement, any blue sky
memorandum and all other agreements or documents printed (or reproduced) and delivered in connection with the offering of the Securities; (vi) any registration or qualification of the Securities for offer and sale under the securities or blue
sky laws of the several states (including filing fees and the reasonable fees and expenses of counsel for the Initial Purchasers relating to such registration and qualification); (vii) admitting the Notes for trading in the PORTAL market;
(viii) the transportation and other expenses incurred by or on behalf of the Issuers’ representatives in connection with presentations to prospective purchasers of the Securities; (ix) the fees and expenses of the Issuers’
accountants and the fees and expenses of counsel (including local and special counsel) for the Issuers; (x) any appraisal or valuation performed in connection with the offering and sale of the Securities; and (xi) all other costs and
expenses incident to the performance by the Issuers of their respective obligations hereunder. 
  
 (n) The Issuers will apply the proceeds from the offering and sale of the Securities as provided under the caption “Use of
Proceeds” in the Final Memorandum. 
  
 (o)
The Issuers will use their commercially reasonable best efforts to enter into the New Credit Facility on or prior to the Closing Date. 
  
 6. Conditions to the Obligations of the Initial Purchasers. The obligations of the Initial Purchasers to purchase the Securities shall be subject
to the accuracy of the representations and warranties on the part of the Issuers contained herein at their respective times of execution of this Agreement, the Closing Date and any settlement date pursuant to Section 3 hereof, to the accuracy
of the statements of the Issuers made in any certificates pursuant to the provisions hereof, to the performance by the Issuers of their respective obligations hereunder and to the following additional conditions: 
  
 (a) The Issuers shall have requested and caused
(i) Dechert LLP, special counsel for the Issuers, to furnish to the Initial Purchasers their opinion, dated the Closing Date and addressed to the Initial Purchasers, substantially in the form of Exhibit B-1 hereto (with such
modifications as shall be reasonably acceptable to the Initial Purchasers and their counsel) and (ii) William T. Gallagher, General Counsel of Holdings, to furnish to the Initial Purchasers his opinion, dated the Closing Date and addressed to
the Initial Purchasers, substantially in the form of Exhibit B-2 hereto (with such modifications as shall be reasonably acceptable to the Initial Purchasers and their counsel). In rendering such opinions, such counsel may rely
(A) as to matters involving the application of laws of any jurisdiction other than the Commonwealth of Pennsylvania, the State of New York, the Federal laws of the United States and the Delaware General Corporation Law, to the extent they deem
proper and specified in such opinion, upon the opinion of other 

  

 -18- 

 
counsel of good standing whom they believe to be reliable and who are satisfactory to counsel for the Initial Purchasers; and (B) as to matters of fact,
to the extent they deem proper, on certificates of responsible officers of the Issuers and public officials. 
  
 (b) The Initial Purchasers shall have received from Cahill Gordon & Reindel LLP, special counsel for the
Initial Purchasers, such opinion or opinions, dated the Closing Date and addressed to the Initial Purchasers, with respect to such matters as the Initial Purchasers may reasonably require, and the Issuers shall have furnished to such counsel such
documents as they request for the purpose of enabling them to pass upon such matters. 
  
 (c) Holdings shall have furnished to the Initial Purchasers a certificate of Holdings, the Company and Crown Americas Capital, signed by
the Chairman of the Board or the President and the principal financial or accounting officer of each of Holdings, the Company and Crown Americas Capital, dated the Closing Date, to the effect that the signers of such certificate have carefully
examined the Final Memorandum, any amendment or supplement to the Final Memorandum and this Agreement and that: 
  
 (i) the representations and warranties of the Issuers in this Agreement are true and correct in all material respects on and as of the
Closing Date with the same effect as if made on the Closing Date, and the Issuers have complied with all the agreements and satisfied all the conditions on their part to be performed or satisfied hereunder at or prior to the Closing Date; and

  
 (ii) since the date of the most recent
financial statements included in the Final Memorandum (exclusive of any amendment or supplement thereto), there has been no material adverse change in the condition (financial or otherwise), prospects, earnings, business or properties of the
Company, individually, or of Holdings and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, except as set forth in or contemplated by the Final Memorandum (exclusive of any amendment or
supplement thereto). 
  
 (d) At the Execution
Time and at the Closing Date, Holdings shall have requested and caused PricewaterhouseCoopers LLP to furnish to the Initial Purchasers letters, dated respectively as of the Execution Time and as of the Closing Date, in form and substance
satisfactory to the Initial Purchasers, confirming that they are independent accountants within the meaning of the Act and the Exchange Act and the applicable rules and regulations thereunder, that they have performed a review of the unaudited
interim financial information of Holdings and its consolidated subsidiaries for the nine-month period ended September 30, 2005 and stating in effect that: 
  

(i) in their opinion the audited financial statements included in the Final Memorandum and reported on by them comply as to form in all
material respects with the applicable accounting requirements of Regulation S-X; 
  

 -19- 

 (ii) on the basis of a reading of the latest unaudited financial statements made
available by Holdings; their limited review in accordance with the standards established under Statement on Auditing Standards No. 100 of the unaudited interim financial information for the nine-month period ended September 30, 2005;
carrying out certain specified procedures (but not an examination in accordance with generally accepted auditing standards) which would not necessarily reveal matters of significance with respect to the comments set forth in such letter; a reading
of the minutes of the meetings of the stockholders, directors and audit committees of Holdings; and inquiries of certain officials of Holdings who have responsibility for financial and accounting matters of Holdings and its subsidiaries as to
transactions and events subsequent to December 31, 2004, nothing came to their attention which caused them to believe that: 
  
 (1) any unaudited financial statements included in the Final Memorandum (x) do not comply as to form in all material respects with
the applicable accounting requirements and with the published rules and regulations of the Commission with respect to financial statements included in quarterly reports on Form 10-Q under the Exchange Act or (y) are not in conformity with
generally accepted accounting principles applied on a basis substantially consistent with that of the audited financial statements included or incorporated in the Final Memorandum; 
  
 (2) with respect to the period subsequent to September 30, 2005, there were any changes, at a
specified date not more than five days prior to the date of the letter, in the total debt of Holdings and its consolidated subsidiaries or the capital stock of Holdings or decreases in the shareholders’ equity of Holdings or working capital of
Holdings and its consolidated subsidiaries as compared with the amounts shown on the September 30, 2005 consolidated balance sheet included in the Final Memorandum, or for the period from October 1, 2005 to such specified date there were
any decreases, as compared with the corresponding period in the preceding year, in net sales, income before income taxes, minority interest and cumulative effect of a change in accounting or net income of Holdings and its consolidated subsidiaries,
except in all instances for changes or decreases set forth in such letter, in which case the letter shall be accompanied by an explanation by Holdings as to the significance thereof unless said explanation is not deemed necessary by the
Representatives; or 
  
 (3) the unaudited
amounts of any capsule information included in the Final Memorandum do not agree with the amounts set forth in the unaudited financial statements for the same periods or were not determined on a basis substantially consistent with that of the
corresponding amounts in the audited financial statements included in the Final Memorandum or do not conform with generally accepted accounting principles; and 
  

 -20- 

 (iii) they have performed certain other specified procedures as a result of which they
determined that certain information of an accounting, financial or statistical nature (which is limited to accounting, financial or statistical information derived from the general accounting records of Holdings and its subsidiaries) included in the
Final Memorandum agrees with the accounting records of Holdings and its consolidated subsidiaries, excluding any questions of legal interpretation. 
  
 References to the Final Memorandum in this Section 6(d) include any amendment or supplement thereto at the date of the applicable
letter. 
  
 (e) Subsequent to the Execution Time
or, if earlier, the dates as of which information is given in the Final Memorandum (exclusive of any amendment or supplement thereto), there shall not have been (i) any change or decrease specified in the letter or letters referred to in
paragraph (f) of this Section 6; or (ii) any change, or any development involving a prospective change, in or affecting the condition (financial or otherwise), prospects, earnings, business or properties of the Company or of Holdings
and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, except as set forth in or contemplated in the Final Memorandum (exclusive of any amendment or supplement thereto) the effect of
which, in any case referred to in clause (i) or (ii) above, is, in the sole judgment of Citigroup, so material and adverse as to make it impractical or inadvisable to market the Securities as contemplated by the Final Memorandum (exclusive
of any amendment or supplement thereto). 
  
 (f)
The Issuers and the 2013 Notes Trustee shall have entered into the 2013 Notes Indenture in form and substance satisfactory to the Representatives, and the Representatives shall have received counterparts, conformed as executed, thereof. 

 
 (g) The Issuers and the 2015 Notes Trustee shall have
entered into the 2015 Notes Indenture in form and substance satisfactory to the Representatives, and the Representatives shall have received counterparts, conformed as executed, thereof. 
  
 (h) Each of the Guarantors shall have executed a 2013 Notes Guarantee and a 2015 Notes Guarantee in form and
substance satisfactory to the Representatives, and the Initial Purchasers shall have received counterparts, conformed as executed, thereof. 
  
 (i) The Issuers and the Initial Purchasers shall have entered into the Registration Rights Agreements. 
  
 (j) The Notes shall have been designated as PORTAL-eligible
securities in accordance with the rules and regulations of the NASD, and the Notes shall be eligible for clearance and settlement through the Depository Trust Company. 
  
 (k) Subsequent to the Execution Time, there shall not have been any decrease in the rating of any debt
securities of any of the Issuers by any “nationally recognized statistical rating organization” (as defined for purposes of Rule 436(g) under the Act) or any notice given of any intended or potential decrease in any such rating or of a
possible change in any such rating that does not indicate the direction of the possible change. 
  

 -21- 

 (l) Holdings, the Company, CEH, each of their respective subsidiaries identified as
parties thereto and the agents and lenders party thereto shall have entered into the New Credit Facility, which shall be in form and substance satisfactory to the Representatives. Prior to or concurrently with the consummation of the offering of the
Securities on the Closing Date, the applicable borrowers shall have made the initial borrowings under the New Credit Facility as contemplated by the Final Memorandum. 
  
 (m) On or prior to the Closing Date, Holdings shall have accepted for payment all CEH Notes validly tendered
pursuant to the Tender Offers. Holdings, CEH, each of their respective subsidiaries that has issued a guarantee of the CEH Notes and the trustees for the CEH Notes shall have entered into the Supplemental Indentures described in the documentation
relating to the Tender Offers and such Supplemental Indentures shall have become effective and operative. 
  
 (n) Prior to the Closing Date, the Issuers shall have furnished to the Representatives such further information, certificates and
documents as the Representatives may reasonably request. 
  
 If
any of the conditions specified in this Section 6 shall not have been fulfilled in all material respects when and as provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere in this Agreement shall not
be in all material respects reasonably satisfactory in form and substance to the Representatives and counsel for the Initial Purchasers, this Agreement and all obligations of the Initial Purchasers hereunder may be canceled at, or at any time prior
to, the Closing Date by the Initial Purchasers. Notice of such cancellation shall be given to the Issuers in writing or by telephone or facsimile confirmed in writing. 
  
 The documents required to be delivered by this Section 6 will be delivered at the office of Cahill Gordon &
Reindel LLP, counsel for the Initial Purchasers, at 80 Pine Street, New York, New York 10005. 
  
 6A. Conditions to the Obligations of the Issuers. The obligations of the Issuers to sell the Securities shall be subject to Holdings, the Company
and CEH entering into the New Credit Facility. 
  
 7.
Reimbursement of Expenses. If the sale of the Securities provided for herein is not consummated because any condition to the obligations of the Initial Purchasers set forth in Section 6 hereof is not satisfied or any of the conditions to
the obligations of the Issuers set forth in Section 6A hereof is not satisfied, because of any termination pursuant to Section 10 hereof or because of any refusal, inability or failure on the part of any Issuer to perform any agreement
herein or comply with any provision hereof other than by reason of a default by any of the Initial Purchasers, the Issuers, jointly and severally, agree to reimburse the Initial Purchasers severally through Citigroup promptly after demand for all
reasonable out-of-pocket expenses (including reasonable fees and disbursements of counsel) that shall have been incurred by them in connection with the proposed purchase and sale of the Securities. 
  

 -22- 

 8. Indemnification and Contribution. (a) The Issuers jointly and severally agree to indemnify
and hold harmless each Initial Purchaser, the directors, officers, employees and agents of each Initial Purchaser and each person who controls any Initial Purchaser within the meaning of either the Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Memorandum, the Final Memorandum (or in any supplement or
amendment thereto) or any information provided by any Issuer to any holder or prospective purchaser of Securities pursuant to Section 5(h), or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and agrees to reimburse each such indemnified
party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Issuers will not be liable in
any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made in the Preliminary Memorandum or the Final
Memorandum, or in any amendment thereof or supplement thereto, in reliance upon and in conformity with written information furnished to the Issuers by or on behalf of any Initial Purchaser specifically for inclusion therein; provided,
further, that with respect to any untrue statement or omission of material fact made in the Preliminary Memorandum, the indemnity agreement contained in this Section 8(a) shall not inure to the benefit of any Initial Purchaser from whom
such person asserting any such loss, claim, damage or liability purchased the Securities concerned, to the extent that any such loss, claim, damage or liability of such Initial Purchaser occurs under the circumstance where (i) the Company had
previously furnished copies of the Final Memorandum on a timely basis to the Initial Purchasers, (ii) delivery of the Final Memorandum was required by the Act to be made to such person and would have prevented such loss, claim, damage,
liability or action, (iii) the untrue statement or omission of a material fact contained in the Preliminary Memorandum was corrected in the Final Memorandum and (iv) there was not sent or given to such person, at or prior to the written
confirmation of the sale of such Securities to such person, a copy of the Final Memorandum. This indemnity agreement will be in addition to any liability which the Issuers may otherwise have. 
  
 (b) Each Initial Purchaser, severally and not jointly, agrees to indemnify
and hold harmless each Issuer, each of its directors, each of its officers, and each person who controls an Issuer within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Issuers to each
Initial Purchaser, but only with reference to written information relating to such Initial Purchaser furnished to the Issuers by or on behalf of such Initial Purchaser specifically for inclusion in the Preliminary Memorandum or the Final Memorandum
(or in any amendment or supplement thereto). This indemnity agreement will be in addition to any liability which any Initial Purchaser may otherwise have. The Issuers acknowledge that the statements set forth in the last paragraph of the cover page
regarding the delivery of the Securities, the paragraph related to stabilization, syndicate covering transactions and penalty bids, the first sentence in the third paragraph and the third sentence in the ninth paragraph, each under the heading
“Plan of Distribution” in the Preliminary Memorandum and 

  

 -23- 

 
the Final Memorandum, constitute the only information furnished in writing by or on behalf of the Initial Purchasers for inclusion in the Final Memorandum
(or in any amendment or supplement thereto). 
  
 (c) Promptly
after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify
the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise
learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other
than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the
indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as
set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in an
action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by
the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying
party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall
authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or
action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding. An indemnifying party shall not be liable under this
Section 8 to any indemnified party regarding any settlement or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party, which consent shall not be
unreasonably withheld. 
  
 (d) In the event that the indemnity
provided in paragraph (a) or (b) of this Section 8 is unavailable to or insufficient to hold harmless an indemnified party for any reason, the Issuers and the Initial Purchasers agree to contribute to the aggregate losses, claims,
damages 

  

 -24- 

 
and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) (collectively
“Losses”) to which one or more of the Issuers and the Initial Purchasers may be subject in such proportion as is appropriate to reflect the relative benefits received by the Issuers on the one hand and by the Initial Purchasers on
the other hand from the offering of the Securities; provided, however, that in no case shall any Initial Purchaser (except as may be provided in any agreement among the Initial Purchasers relating to the offering of the Securities) be
responsible for any amount in excess of the purchase discount or commission applicable to the Securities purchased by such Initial Purchaser hereunder. If the allocation provided by the immediately preceding sentence is unavailable for any reason,
the Issuers and the Initial Purchasers shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Issuers on the one hand and of the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such Losses, as well as any other relevant equitable considerations. Benefits received by the Issuers shall be deemed to be equal to the total net proceeds from the offering (before
deducting expenses) received by the Company and Crown Americas Capital, and benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions. Relative fault shall be determined by reference to,
among other things, whether any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information provided by the Issuers on the one hand or the Initial Purchasers on the
other, the intent of the parties and their relative knowledge, information and opportunity to correct or prevent such untrue statement or omission. The Issuers and the Initial Purchasers agree that it would not be just and equitable if contribution
were determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each person who controls an
Initial Purchaser within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of an Initial Purchaser shall have the same rights to contribution as such Initial Purchaser, and each person who controls an
Issuer within the meaning of either the Act or the Exchange Act and each officer and director of an Issuer shall have the same rights to contribution as such Issuer, subject in each case to the applicable terms and conditions of this paragraph (d).

  
 9. Default by an Initial Purchaser. If any one or more
Initial Purchasers shall fail to purchase and pay for any of the Securities agreed to be purchased by such Initial Purchaser hereunder and such failure to purchase shall constitute a default in the performance of its or their obligations under this
Agreement, the remaining Initial Purchasers shall be obligated severally to take up and pay for (at the respective purchase prices set forth in Section 2 and in the respective proportions which the amount of Securities set forth opposite their
names in Schedule I hereto bears to the aggregate amount of Securities set forth opposite the names of all the remaining Initial Purchasers) the Securities which the defaulting Initial Purchaser or Initial Purchasers agreed but failed to
purchase; provided, however, that in the event that the aggregate amount of Securities which the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase shall exceed 10% of the aggregate amount of Securities
set forth in Schedule I hereto, the remaining Initial Purchasers shall have the right to purchase all, but shall not be under any obligation to purchase any, of the Securities, and if such nondefaulting Initial Purchasers do 

  

 -25- 

 
not purchase all the Securities, this Agreement will terminate without liability to any nondefaulting Initial Purchaser or the Issuers. In the event of a
default by any Initial Purchaser as set forth in this Section 9, the Closing Date shall be postponed for such period, not exceeding five Business Days, as the Representatives shall determine in order that the required changes in the Final
Memorandum or in any other documents or arrangements may be effected. Nothing contained in this Agreement and no action taken under this paragraph shall relieve any defaulting Initial Purchaser of its liability, if any, to the Issuers or any
nondefaulting Initial Purchaser for damages occasioned by its default hereunder. 
  
 10. Termination. This Agreement shall be subject to termination in the absolute discretion of Citigroup, by notice given to the Company and Crown Americas Capital prior to delivery of and payment for the
Securities, if at any time prior to such time (i) trading in any of Holdings’ securities shall have been suspended by the Commission or the New York Stock Exchange or trading in securities generally on the New York Stock Exchange, the
American Stock Exchange or the Nasdaq National Market shall have been suspended or limited or minimum prices shall have been established on any such Exchange or the Nasdaq National Market; (ii) a banking moratorium shall have been declared
either by Federal or New York State authorities; or (iii) there shall have occurred any outbreak or escalation of hostilities, declaration by the United States of a national emergency or war or other calamity or crisis the effect of which on
financial markets is such as to make it, in the sole judgment of Citigroup, impracticable or inadvisable to proceed with the offering or delivery of the Securities as contemplated by the Final Memorandum (exclusive of any amendment or supplement
thereto). 
  
 11. Representations and Indemnities to
Survive. The respective agreements, representations, warranties, indemnities and other statements of the Issuers or their respective officers and of the Initial Purchasers set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation made by or on behalf of the Initial Purchasers or the Issuers or any of the officers, directors or controlling persons referred to in Section 8 hereof, and will survive delivery of and payment for the
Securities. The provisions of Sections 7, 8 and 11 hereof shall survive the termination or cancellation of this Agreement. 
  
 12. Notices. All communications hereunder will be in writing and effective only on receipt, and, if sent to the Initial Purchasers, will be mailed,
delivered or telefaxed to the Citigroup General Counsel (fax no.: (212) 816-7912) and confirmed to Citigroup at 388 Greenwich Street, New York, New York 10013, Attention: General Counsel; if sent to the Issuers, will be mailed,
delivered or telefaxed to Crown Holdings, Inc., One Crown Way, Philadelphia, PA 19154-4599, Attention: General Counsel (fax no.: (215) 676-6011), with a copy to Dechert LLP, Cira Center, 2929 Arch Street, Philadelphia, PA 19104, Attention:
William G. Lawlor (fax no.: (215) 994-2222). 
  
 13.
Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers and directors and controlling persons referred to in Section 8 hereof, and, except as
expressly set forth in Section 5(h) hereof, no other person will have any right or obligation hereunder. 
  

 -26- 

 14. Applicable Law. This Agreement will be governed by and construed in accordance with the laws
of the State of New York applicable to contracts made and to be performed within the State of New York. 
  
 15. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together
shall constitute one and the same instrument. 
  
 16. No
Fiduciary Duty. Holdings, the Company and Crown Americas Capital hereby acknowledge that (a) the Initial Purchasers are acting as principal and not as an agent or fiduciary of any Issuer or any of its Subsidiaries and (b) their
engagement of the Initial Purchasers in connection with the offering of the Notes is as independent contractors and not in any other capacity. Furthermore, Holdings, the Company and Crown Americas Capital agree that they are solely responsible for
making their own judgments in connection with the offering of the Notes (irrespective of whether any of the Initial Purchasers has advised or is currently advising any Issuer or any of its Subsidiaries on related or other matters). 
  
 17. Headings. The section headings used herein are for convenience
only and shall not affect the construction hereof. 
  
 18.
Definitions. The terms which follow, when used in this Agreement, shall have the meanings indicated. 
  
 “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

  
 “Affiliate” shall have the meaning specified
in Rule 501(b) of Regulation D. 
  
 “Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in The City of New York. 
  
 “Commission” shall mean the Securities and Exchange
Commission. 
  
 “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “Execution Time” shall mean, the date and time that this Agreement is first executed and delivered by the parties hereto. 
  
 “Investment Company Act” shall mean the Investment Company
Act of 1940, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  
 “NASD” shall mean the National Association of Securities Dealers, Inc. 
  
 “Regulation D” shall mean Regulation D under the Act. 
  
 “Regulation S” shall mean Regulation S under the
Act. 
  

 -27- 

 “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the
rules and regulations of the Commission promulgated thereunder. 
  
 19. Consent to Jurisdiction. By the execution and delivery of this Agreement, each Issuer irrevocably submits to the non-exclusive jurisdiction of any New York state or federal court sitting in the borough of Manhattan, the city of
New York, over any suit, action or proceeding arising out of or relating to this Agreement. 
  

 -28- 

 If the foregoing is in accordance with your understanding of our agreement, please sign and return to us
the enclosed duplicate hereof, whereupon this Agreement and your acceptance shall represent a binding agreement among the Issuers and the several Initial Purchasers. 
  

			
	 Very truly yours,

	
	 Crown Holdings, Inc.

		
	By:	 	 /s/ Alan W. Rutherford

	 Name:
	 	 Alan W. Rutherford

	 Title:
	 	 Executive Vice President and CFO

	
	 Attest:

		
	By:	 	 /s/ Rosemary Haselroth

	 Name:
	 	 Rosemary Haselroth

	 Title:
	 	 Assistant Secretary

	
	 Crown Americas, LLC

		
	By:	 	 /s/ Frank J. Mechura

	 Name:
	 	 Frank J. Mechura

	 Title:
	 	 President and CEO

	
	 Crown Americas Capital Corp.

		
	By:	 	 /s/ Michael B. Burns

	 Name:
	 	 Michael B. Burns

	 Title:
	 	 Vice President and Treasurer

			
	 GUARANTORS:

	
	 Central States Can Co. of Puerto Rico, Inc.

	 CROWN Beverage Packaging Puerto Rico, Inc.

	 Crown Consultants, Inc.

	 Crown Cork & Seal Company (DE), LLC

	 Crown Cork & Seal Company, Inc.

	 Crown Financial Corporation

	 Crown Financial Management, Inc.

	 CROWN Packaging Technology, Inc.

	 Foreign Manufacturers Finance Corporation

	 NWR, Inc.

		
	 By    
	 	/s/ Michael B. Burns
	 Name:
	 	Michael B. Burns
	 Title:
	 	Vice President & Treasurer
	
	 Crown Beverage Packaging, Inc.

		
	 By    
	 	/s/ Patrick D. Szmyt
	 	 	Patrick D. Szmyt
	 	 	Vice President & CFO
	
	 CROWN Cork & Seal USA, Inc.

		
	 By    
	 	/s/ Patrick D. Szmyt
	 	 	Patrick D. Szmyt
	 	 	Sr. Vice President & CFO

			
	 CROWN Risdon USA, Inc.

		
	By	 	/s/ Stephen Pearlman
	 	 	Stephen Pearlman
	 	 	President
	
	 Crown Holdings (PA), LLC

		
	By	 	/s/ Michael B. Burns
	 Name:
	 	Michael B. Burns
	 Title:
	 	Vice President & Treasurer
	
	 Crown Cork & Seal Company (PA), Inc.

		
	By	 	/s/ Michael B. Burns
	 Name:
	 	Michael B. Burns
	 Title:
	 	Vice President & Treasurer

 The foregoing Agreement is hereby confirmed 
 and accepted as of the date first above written. 
  
 Citigroup Global Markets Inc. 
 Lehman Brothers Inc. 
 Deutsche Bank Securities Inc. 
 Banc of America Securities LLC 
  

			
	By:	 	 Citigroup Global Markets Inc.

		
	By:	 	 /s/ Whitner Marshall

	 Name:
	 	 Whitner Marshall

	 Title:
	 	 Director

  
 For themselves and the other several
Initial 
 Purchasers named in Schedule I to the 
 foregoing
Agreement. 

 SCHEDULE I 
  

							
	 Initial Purchasers

	  	 Principal Amount
 of 2013 Securities
 to Be Purchased

	  	 Principal Amount
 of 2015 Securities
 to Be Purchased

	 Citigroup Global Markets Inc.
	  	$	114,525,000	  	$	137,430,000
	 Lehman Brothers Inc.
	  	 	114,525,000	  	 	137,430,000
	 Deutsche Bank Securities Inc.
	  	 	141,910,000	  	 	170,292,000
	 Banc of America Securities LLC
	  	 	51,935,000	  	 	62,322,000
	 BNP Paribas Securities Corp.
	  	 	51,935,000	  	 	62,322,000
	 Calyon Securities (USA) Inc.
	  	 	10,170,000	  	 	12,204,000
	 ABN AMRO Incorporated
	  	 	5,000,000	  	 	6,000,000
	 Credit Suisse First Boston LLC
	  	 	5,000,000	  	 	6,000,000
	 Scotia Capital (USA) Inc.
	  	 	5,000,000	  	 	6,000,000
	 	  	
	
	  	
	

	 Total
	  	$	500,000,000	  	$	600,000,000
	 	  	
	
	  	
	

 SCHEDULE II 
  

			
	 Guarantors

	  	Jurisdiction of Formation

	 United States
	  	 
	 Central States Can Co. of Puerto Rico, Inc.
	  	OH
	 CROWN Beverage Packaging Puerto Rico, Inc.
	  	DE
	 Crown Consultants, Inc.
	  	PA
	 Crown Cork & Seal Company (DE), LLC
	  	DE
	 Crown Cork & Seal Company, Inc.
	  	PA
	 Crown Financial Corporation
	  	PA
	 Crown Financial Management, Inc.
	  	DE
	 Crown International Holdings, Inc.
	  	DE
	 CROWN Packaging Technology, Inc.
	  	DE
	 Foreign Manufacturers Finance Corporation
	  	DE
	 NWR, Inc.
	  	PA
	 Crown Beverage Packaging, Inc.
	  	DE
	 CROWN Cork & Seal USA, Inc.
	  	DE
	 CROWN Risdon USA, Inc.
	  	DE

 EXHIBIT A 
  

Selling Restrictions for Offers 
 and Sales Outside the United States 
  
 1.
(a) The Securities have not been and will not be registered under the Act and may not be offered or sold (x) within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from the
registration requirements of the Act and (y) outside the United States except in accordance with Regulation S under the Act. Each Initial Purchaser represents and agrees that, except as otherwise permitted by Section 4(a)(i) of the
Agreement to which this is an exhibit, it has offered and sold the Securities, and will offer and sell the Securities, (i) as part of their distribution at any time; and (ii) otherwise until 40 days after the later of the commencement of
the offering and the Closing Date (the “distribution compliance period”), only in accordance with Rule 903 of Regulation S under the Act. Accordingly, each Initial Purchaser represents and agrees that neither it, nor any of its
Affiliates nor any person acting on its or their behalf has engaged or will engage in any directed selling efforts with respect to the Securities, and that it and they have complied and will comply with the offering restrictions requirement of
Regulation S. Each Initial Purchaser agrees that, at or prior to the confirmation of sale of Securities (other than a sale of Securities pursuant to Section 4(a)(i) of the Agreement to which this is an exhibit), it shall have sent to each
distributor, dealer or person receiving a selling concession, fee or other remuneration that purchases Securities from it during the distribution compliance period a confirmation or notice to substantially the following effect: 
  
 “The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933 (the “Act”) and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after
the later of the commencement of the offering and the date of closing of the offering, except in either case in accordance with Regulation S or Rule 144A under the Act. Terms used above have the meanings given to them by
Regulation S.” 
  
 (b) Each Initial Purchaser also
represents and agrees that it has not entered and will not enter into any contractual arrangement with any distributor with respect to the distribution of the Securities, except with its Affiliates or with the prior written consent of the Issuers.

  
 (c) Terms used in this section have the meanings given to them
by Regulation S. 
  
 2. Each Initial Purchaser represents and
agrees that (i) it has not offered or sold, and, prior to the expiry of six months from the closing of the offering of the Securities will not offer or sell, any Securities to persons in the United Kingdom except to persons whose ordinary
activities 

  

 A-1 

 
involve them in acquiring, holding, managing or disposing of investments, whether as principal or agent, for purposes of their businesses or otherwise in
circumstances which have not resulted and will not result in an offer to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995, (ii) it has complied and will comply with all applicable
provisions of the Financial Services and Markets Act 2000 (the “FSMA”) and the Public Offers of Securities Regulations 1995 with respect to anything done by it in relation to the Securities in, from or otherwise involving the United
Kingdom and (iii) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of the FSMA) received by it in
connection with the issue or sale of any Securities in circumstances in which section 21(1) of the FSMA does not apply to the Company, Crown Americas Capital or Holdings. 
  

 A-2Exchange Agreement

 Exhibit 10.23 
  
 EXCHANGE AGREEMENT 
  
 EXCHANGE AGREEMENT (this “Agreement”), dated as of November 23, 2005, by and among Aphton Corporation, a Delaware corporation
(the “Company”), and the investors listed on Schedule A attached hereto (individually, an “Investor” and collectively, the “Investors”). 
  
 WHEREAS: 
  
 A. The Company and each Investor is executing and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange
Commission (the “SEC”) under the 1933 Act. 
  
 B.
Each Investor is the holder of one or more Senior Convertible Notes (each a “Note” and, collectively, the “Notes”), issued by the Company pursuant to that certain Securities Purchase Agreement (the
“Securities Purchase Agreement”), dated as of March 31, 2003, among the Company and the Investors. 
  
 C. The Investors desire to surrender the Notes to the Company for cancellation in exchange for (i) the payment by the Company to the Investors of an
aggregate of $3,000,000, (ii) the issuance by the Company to the Investors of an aggregate of (A) 10,000 shares (the “Preferred Shares”) of the Company’s newly designated Series A-1 Convertible Preferred Stock
(“Series A-1 Preferred Stock”) having an aggregate stated value of $10,000,000 and (B) 5,000,000 shares (the “Initial Common Shares”) of the Company’s common stock (“Common Stock”) and
(iii) the issuance by the Company to (a) each of Heartland Value Fund (“Heartland”) and Horizon Waves & Co. (“Horizon”) of 375,000 shares of Common Stock to be deposited with U.S. Bank
National Association (“U.S. Bank”) and held in escrow subject to the terms of an Escrow Agreement, substantially in the form attached hereto as Exhibit “A” (the “US Bank Escrow Agreement”) and
(b) SF Capital Partners Ltd. (“SF Capital”) of 750,000 shares of Common Stock to be deposited with Bryan Cave LLP (“Bryan Cave” and with U.S. Bank collectively, the “Escrow Agents”)) and held
in escrow subject to the terms of an Escrow Agreement, substantially in the form attached hereto as Exhibit “B” (the “SF Escrow Agreement” and together with the U.S. Bank Escrow Agreement the “Escrow
Agreements”), for an aggregate of 1,500,000 shares of Common Stock to be held in escrow (the “Escrow Common Shares”). The shares of Common Stock issuable upon conversion of the Preferred Shares are referred to herein as the
“Conversion Shares.” The Preferred Shares, the Initial Common Shares and the Escrow Common Shares are collectively referred to herein as the “Closing Shares” and, together with the Conversion Shares, the
“Securities”. The Initial Common Shares, the Escrow Common Shares and the Conversion Shares are collectively referred to as the “Common Shares”. 
  
 D. The rights and preferences of the Series A-1 Preferred Stock shall be as set forth in a Certificate of Designation,
substantially in the form attached hereto as Exhibit “C” (the “Designation”). 

 E. Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing
and delivering a Registration Rights Agreement, substantially in the form attached hereto as Exhibit “D” (the “Registration Rights Agreement”), pursuant to which the Company has agreed to provide certain
registration rights with respect to the Common Shares. 
  
 NOW,
THEREFORE, the Company and each Investor hereby agree as follows: 
  
 1. EXCHANGE OF NOTES; CLOSING 
  
 (a)
Exchange. 
  
 (i) At the Closing, each Investor shall
surrender and deliver each Note held by such Investor to the Company for cancellation by the Company. Effective as of the Closing, the Notes shall be forever cancelled and of no further force or effect. 
  
 (ii) At the Closing, the Company shall: 
  
 (A) deliver to each Investor, by wire transfer of
immediately available funds to the account designated by such Investor, cash in the amount set forth with respect to such Investor on Schedule A hereto; 
  

(B) issue and deliver to each Investor the number of Preferred Shares and Initial Common Shares set forth with respect to such
Investor on Schedule A hereto; and 
  
 (C) issue to each Investor the number of Escrow Common Shares set forth with respect to such Investor on Schedule A hereto, and deposit such Escrow Common Shares with US Bank and Bryan Cave, as the case may be, to be held in escrow
subject to the terms of the US Bank Escrow Agreement and the SF Escrow Agreement, respectively. 
  
 (b) Closing. Closing shall occur at the offices of the Company on the date hereof (the “Closing Date”), contemporaneously with the
execution and delivery of this Agreement. 
  
 2.
INVESTORS’ REPRESENTATIONS AND WARRANTIES. 
  
 Each
Investor represents and warrants to the Company with respect to only itself that: 
  
 (a) No Public Sale or Distribution. Such Investor is acquiring the Closing Shares for its own account, and not with a view towards, or for resale in connection with, the public sale or distribution thereof,
except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations herein, such Investor does not agree to hold any of the Securities for any minimum or other specific term and
reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. From May 23, 2005, through the date hereof, such Investor has not sold (for purposes of
Section 16 of the 1934 Act (as defined in the Registration Rights Agreement) and the rules and regulations promulgated thereunder) any shares of Common Stock. 
  

 2 

 (b) Accredited Investor Status. Such Investor is an “accredited investor” as that term
is defined in Rule 501(a) of Regulation D. 
  
 (c) Reliance on
Exemptions. Such Investor understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
in part upon the truth and accuracy of, and such Investor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Investor set forth herein in order to determine the availability of such
exemptions and the eligibility of such Investor to acquire the Securities. 
  
 (d) Information. Such Investor and its advisors, if any, have been furnished with all materials relating to the business, finances, prospects and operations of the Company and materials relating to the offer
and sale of the Securities which have been requested by such Investor. Such Investor and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations
conducted by such Investor or its advisors, if any, or its representatives shall modify, amend or affect such Investor’s right to rely on the Company’s representations and warranties contained herein. Such Investor understands that its
investment in the Securities involves a high degree of risk and is able to afford a complete loss of such investment. Such Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Securities. 
  
 (e) No Governmental Review. Such Investor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the
fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 
  
 (f) Transfer or Resale. Such Investor understands that, except as provided in the Registration Rights Agreement: (i) the Securities have not
been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such Investor shall have delivered to the
Company an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or
(C) such Investor provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor rule thereto) (collectively,
“Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in
which the seller (or the Person (as defined in Section 3(r)) through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act
or the rules and regulations of the SEC thereunder; and (iii) except as set forth in the Registration Rights Agreement, neither the Company nor any other Person is under any obligation to register the Securities under the 1933 Act or any state

  

 3 

 securities laws or to comply with the terms and conditions of any exemption thereunder. The Securities may be pledged in
connection with a bona fide margin account or other loan secured by the Securities, and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Investor effecting a pledge of Securities
shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b) hereof), including, without
limitation, this Section 2(f); provided, that in order to make any sale, transfer or assignment of Securities, such Investor and its pledgee makes such disposition in accordance with or pursuant to a registration statement or an
exemption under the 1933 Act. 
  
 (g) Legends. Such
Investor understands that the stock certificates representing the Securities shall bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates): 
  
 [NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR
(B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 
  
 (h) Validity; Enforcement. This Agreement, the Registration Rights Agreement and the US Bank Escrow Agreement (in
the case of Heartland and Horizon) and the SF Capital Escrow Agreement (in the case of SF Capital) have been duly and validly authorized, executed and delivered on behalf of such Investor and shall constitute the legal, valid and binding obligations
of such Investor enforceable against such Investor in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 
  
 (i) Residency. Such Investor is a resident of, has its principal place of business in, or is incorporated in, as applicable, that country or state
specified below its address set forth on Schedule A attached hereto. 
  
 (k) Independent Investment Decision. Such Investor has independently evaluated the merits of its decision to purchase Securities pursuant to this Agreement, and such Investor confirms that it has not relied on
the advice of any other Investor’s business and/or legal counsel in making such a decision. 
  

 4 

 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 
  
 The Company represents and warrants to each of the Investors that as of the
date hereof: 
  
 (a) Organization and Qualification. Each
of the Company and its Subsidiaries (as defined below) are corporations duly organized and validly existing in good standing under the laws of the jurisdiction in which they are incorporated, and have the requisite corporate power and
authorization to own their properties and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which
its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this
Agreement, “Material Adverse Effect” means any material adverse effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise) or prospects of the Company and its Subsidiaries or on
the transactions contemplated hereby or by the agreements and instruments to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the Transaction Documents. For purposes of this
Agreement, “Subsidiaries” means Igeneon GmbH, an Austrian company (“Igeneon”) and Aphton (BVI) Corporation, a British Virgin Islands corporation (“Aphton BVI”), which together are the only entities
in which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest. The Company has no Subsidiaries other than Igeneon and Aphton BVI. Aphton BVI is a shell entity, which is inactive and does not conduct any
business or hold any assets. The Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and clear of any and all liens, charges, encumbrances, security interests, rights of first refusal or other restrictions of any
kind (“Liens”), and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights. Neither the Company nor any Subsidiary is
in violation of any of the provisions of its respective certificate or articles or incorporation, bylaws or other organizational or charter documents. 
  
 (b) Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement, the Designation, the Registration Rights Agreement, the Escrow Agreements, the Irrevocable Transfer Agent Instructions (as defined in Section 5(b) hereof) and each of the other agreements entered into by the parties
hereto in connection with the transactions contemplated by this Agreement (collectively, the “Transaction Documents”) and, subject to the listing of the Common Shares in compliance with the rules and regulations of the Principal
Market (as defined in Section 3(n) hereof) to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby, including, without limitation, the issuance of the Closing Shares and the reservation for issuance and the issuance of the Conversion Shares issuable upon conversion of the Series A-1 Preferred Stock,

  

 5 

 as the case may be, have been duly authorized by the board of directors of the Company (the “Board”),
and, except as set forth in Section 3(e), no further consent or authorization is required by the Company, the Board or its stockholders. This Agreement and the other Transaction Documents of even date herewith have been duly executed and
delivered by the Company, and constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except (i) as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies, or (ii) as any rights to indemnity
or contribution hereunder may be limited by federal and state securities laws and public policy consideration. 
  
 (c) Issuance of Securities. The Closing Shares to be issued hereunder are duly authorized and, upon issuance in accordance with the terms hereof,
shall be free from all taxes, Liens and charges with respect to the issuance thereof. As of the Closing, 20,000,000 shares of Common Stock shall have been duly authorized and reserved for issuance upon conversion of the Preferred Shares to be issued
hereunder. The Closing Shares, when issued at the Closing, and the Conversion Shares, when issued upon conversion of the Preferred Shares, will be validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect
to the issue thereof, with the holders being entitled to all rights accorded to a holder of the Series A-1 Preferred Stock or Common Stock, as the case may be. Assuming the accuracy of each of the representations and warranties set forth in
Section 2 hereof, the issuance by the Company of the Closing Shares is exempt from registration under the 1933 Act. 
  
 (d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the issuance of the Closing Shares and the reservation for issuance of the Conversion Shares,) will not (i) result in a violation of any certificate of incorporation,
any certificate of designations, preferences and rights of any outstanding series of preferred stock or bylaws of the Company or any Subsidiary or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or
(iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Market) applicable to the Company or any of its
Subsidiaries or by which any property or asset of the Company or any Subsidiary is bound or affected, except in the case of clauses (ii) and (iii), for such breaches or defaults as would not be reasonably expected to have a Material Adverse
Effect. 
  
 (e) Consents. Except for review of the
transactions contemplated by this Agreement by The Nasdaq Stock Market, filing of a Form D with the SEC, filings that may be required under the securities or “Blue Sky” laws of the various jurisdictions in which the Securities are being
offered and the registration of the Common Shares under the 1933 Act, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or
self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case, in accordance with the terms hereof 
  

 6 

 or thereof. All consents, authorizations, orders, filings and registrations which the Company is required to obtain at or
prior to the Closing pursuant to the preceding sentence have been obtained or effected. The Company and its Subsidiaries are unaware of any facts or circumstances which might prevent the Company from obtaining or effecting any of the foregoing.

  
 (f) Acknowledgment Regarding Investors’ Purchase of
Securities. The Company acknowledges and agrees that each Investor is acting solely in the capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company
further acknowledges that no Investor is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by
an Investor or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Investor’s purchase of the Securities. The Company further
represents to each Investor that the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives. 
  
 (g) No General Solicitation; Placement Agent’s Fees. Neither the
Company, nor any of its affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Securities. The
Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for persons engaged by any Investor or its investment advisor) relating to or arising out of the
transactions contemplated hereby. The Company shall pay, and hold each Investor harmless against, any liability, loss or expense (including, without limitation, attorney’s fees and out-of-pocket expenses) arising in connection with any claim
for any such fees or commissions. 
  
 (h) No Integrated
Offering. None of the Company, its Subsidiaries, any of their affiliates, and any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under
circumstances that would require registration of any of the Securities under the 1933 Act or cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the 1933 Act or any applicable stockholder
approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated. 
  
 (i) Dilutive Effect. The Company understands and acknowledges that
the number of Conversion Shares issuable upon conversion of the Preferred Shares will increase in certain circumstances. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Preferred Shares in
accordance with this Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company. 
  
 (j) Application of Takeover Protections. The Company and its Board have taken all necessary action, if any, in order
to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation (as 
  

 7 

 defined in Section 3(q)) or the laws of the state of its incorporation which is or could become applicable to
any Investor as a result of the transactions contemplated by this Agreement, or any prior transaction between the Company and any Investor, including, without limitation, the Company’s issuance of the Securities and any Investor’s
ownership of the Securities. 
  
 (k) SEC Documents; Financial
Statements. Except as set forth on Schedule 3(k), since December 31, 2003, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (“1934 Act”) (all of the foregoing filed prior to the date hereof, and all exhibits included therein and financial statements and schedules thereto and documents
incorporated by reference therein being hereinafter referred to as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents
complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted
accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they
may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit adjustments). After giving effect to the 8-K Filing (as defined below), no other information provided by or on behalf of the Company to the Investors which is not included in
the SEC Documents, including, without limitation, information referred to in Section 2(d) of this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements
therein, in the light of the circumstance under which they are or were made, not misleading. 
  
 (l) Absence of Certain Changes. Except as disclosed in the SEC Documents or on Schedule 3(l), since December 31, 2004, there has been no material adverse change and no material adverse development
in the business, properties, operations, condition (financial or otherwise), results of operations or prospects of the Company or its Subsidiaries. Since December 31, 2004, the Company has not (i) declared or paid any dividends,
(ii) sold any assets, individually or in the aggregate, in excess of $50,000 outside of the ordinary course of business or (iii) had capital expenditures, individually or in the aggregate, in excess of $100,000. The Company has not taken
any steps to seek protection pursuant to any bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would
reasonably lead a creditor to do so. After giving effect to the transactions contemplated hereby to occur at the Closing, the Company will not be Insolvent (hereinafter defined). For purposes of this Section 3(l),
“Insolvent” means (i) the present fair saleable value of the Company’s assets is less than the amount required to pay the Company’s total indebtedness, contingent or 
  

 8 

 otherwise, (ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured, (iii) the Company intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) the Company has unreasonably small capital
with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. 
  
 (m) No Undisclosed Events, Liabilities, Developments or Circumstances. Except as set forth on Schedule 3(m), no event, liability,
development or circumstance has occurred or exists, or is contemplated to occur, with respect to the Company or its Subsidiaries or their respective business, properties, prospects, operations or financial conditions, that would be required to be
disclosed by the Company under applicable securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been disclosed in the SEC Documents.

  
 (n) Conduct of Business; Regulatory Permits. Neither
the Company nor its Subsidiaries is in violation of any term of or in default under any certificate of incorporation, any certificate of designations, preferences and rights of any outstanding series of preferred stock or bylaws. Except as disclosed
in the SEC Documents or on Schedule 3(n), neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or its Subsidiaries, and
neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except for possible violations which would not, individually or in the aggregate, have a Material Adverse Effect. Without limiting the
generality of the foregoing, except as set forth in the SEC Documents or on Schedule 3(n), the Company is not in violation of any of the rules, regulations or requirements of the Nasdaq Capital Market (the “Principal Market”) and
has no knowledge of any facts or circumstances which would reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future. Except as disclosed in the SEC Documents or on Schedule 3(n), since
December 31, 2004, (i) the Common Stock has been designated for quotation or listed on the Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company has
received no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market. The Company and its Subsidiaries possess all certificates, authorizations and
permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not have, individually or in
the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. 
  
 (o) Foreign Corrupt Practices. Neither the Company, nor any of its
Subsidiaries, nor any director, officer, agent, employee or other Person acting on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds,
(iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or
domestic government official or employee. 
  

 9 

 (p) Transactions With Affiliates. Except as set forth in the SEC Documents, none of the officers,
directors or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for ordinary course services as employees, officers or directors), including any contract, agreement or other
arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any such officer, director or employee or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any such officer, director, or employee has a substantial interest or is an officer, director, trustee or partner. 
  
 (q) Equity Capitalization. As of the date hereof and giving effect to the closing of the transactions contemplated
hereby, including the filing of the Designation, the authorized capital stock of the Company consists of (x) 100,000,000 shares of Common Stock, of which as of the date hereof, 67,056,428 shares are issued and outstanding, 4,613,320 shares are
reserved for issuance pursuant to the Company’s stock option plans, including shares reserved for issuance upon exercise of outstanding stock options, and 3,345,400 shares are reserved for issuance upon exercise of outstanding warrants and
nonplan options to purchase shares of Common Stock, and (y) 4,000,000 shares of preferred stock, of which, after giving effect to the Closing, only the Preferred Shares issuable pursuant to this Agreement are issued and outstanding. All of such
outstanding shares have been, or upon issuance will be, validly issued are fully paid and nonassessable. Except as disclosed in the SEC documents or on Schedule 3(q): (i) no shares of the Company’s capital stock are subject to
preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any
of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or
other agreements, documents or instruments evidencing Indebtedness (as defined in Section 3(r)) of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there are no
financing statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection with the Company; (v) there are no agreements or arrangements under which the Company or any of its Subsidiaries is
obligated to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement); (vi) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any
redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries;
(vii) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (viii) the Company does not have any stock appreciation rights or “phantom
stock” plans or agreements 
  

 10 

 or any similar plan or agreement; and (ix) the Company and its Subsidiaries have no liabilities or obligations
required to be disclosed in the SEC Documents but not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the
aggregate, do not or would not have a Material Adverse Effect. The Company has furnished to the Investors true, correct and complete copies of the Company’s Amended and Restated Certificate of Incorporation, as amended, and as in effect on the
date hereof (the “Certificate of Incorporation”), and the Company’s Amended and Restated Bylaws, as amended, and as in effect on the date hereof (the “Bylaws”). 
  
 (r) Indebtedness and Other Contracts. Except as disclosed in the SEC
Documents or on Schedule 3(r), neither the Company nor any of its Subsidiaries (i) has any outstanding Indebtedness (as defined below), (ii) is a party to any contract, agreement or instrument, the violation of which, or default
under, by the other party(ies) to such contract, agreement or instrument would result in a Material Adverse Effect, (iii) is in violation of any term of or in default under any contract, agreement or instrument relating to any Indebtedness,
except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (iv) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in
the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. For purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for
borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (other than trade payables entered into in the ordinary course of business), (C) all reimbursement or payment
obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the
acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with
the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or
similar arrangement which, in connection with generally accepted accounting principles, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through
(F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, change, security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of
indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; (y) “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that
Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such
liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto; and
(z) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
  

 11 

 (s) Absence of Litigation. Except as set forth in the SEC Documents or on Schedule 3(s), there is
no action, suit, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting
the Company, the transactions contemplated by the Transaction Documents, Common Stock or any of the Subsidiaries or any of the Company’s or the Subsidiaries’ officers or directors in their capacities as such. To the knowledge of the
Company, there has not been within the past two (2) years, and there is not pending, any investigation by the Commission involving the Company or any current or former director or officer of the Company (in his or her capacity as such). The
Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the the 1933 Act within the past two (2) years. 
  
 (t) Insurance. The Company and each of its Subsidiaries are insured
by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither
the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 
  
 (u) Employee Relations. Except as set forth on Schedule 3(u), neither the Company nor any of its Subsidiaries
is a party to any collective bargaining agreement or employs any member of a union. No executive officer of the Company (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company or otherwise
terminate such officer’s employment with the Company. No executive officer of the Company, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to
any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting employment and employment practices, terms and conditions of
employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 
  
 (v) Title. The Company and its Subsidiaries have good and marketable title to all personal property owned by them
which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in the SEC Documents or such as do not materially affect the value of such
property and do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Neither the Company nor any of its Subsidiaries owns any real property. Any real property and facilities held under
lease by the 
  

 12 

 Company and any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions
as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries. 
  
 (w) Intellectual Property Rights. To the knowledge of the Company and the Subsidiaries, the Company and its Subsidiaries own or possess adequate
rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual
property rights (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted. Except as set forth on Schedule 3(w), none of the Company’s Intellectual Property Rights that are
material to the business of the Company have expired or terminated, or are expected to expire or terminate within three years from the date of this Agreement. The Company does not have any knowledge of any infringement by the Company or its
Subsidiaries of Intellectual Property Rights of others. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company, being threatened, against the Company or its Subsidiaries regarding its Intellectual Property
Rights which could have a Material Adverse Effect. The Company is unaware of any facts or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties. 
  
 (x) Environmental Laws. The Company and its Subsidiaries (i) are in compliance with any and all Environmental Laws (as hereinafter defined),
(ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license
or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The term “Environmental Laws”
means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without
limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder. 
  
 (y) Subsidiary Rights. The Company has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends
and distributions on, all capital securities of its material Subsidiaries as owned by the Company or such Subsidiary. 
  
 (z) Tax Status. Except as set forth on Schedule 3(z), the Company and each of its Subsidiaries (i) has made or filed all federal and
state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be
due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books reasonably adequate provision for the payment of 
  

 13 

 all taxes for periods subsequent to the periods to which such returns, reports or declarations apply, except where such
failure would not have a Material Adverse Effect. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 
  
 (aa) Internal Accounting Controls. The Company and each of its
Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted
only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is
taken with respect to any difference. In addition, the Company has established and maintains disclosure controls and procedures as defined in Rule 13a-14 under the 1934 Act and in compliance with Rule 13a-15 under the 1934 Act. 
  
 (bb) Disclosure. The Company confirms that neither it nor any other
Person acting on its behalf has provided any of the Investors or their respective agents or counsel with any information that constitutes or might constitute material, nonpublic information that has not been disclosed in the SEC Documents. The
Company understands and confirms that each of the Investors will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Investors regarding the Company, its business and the
transactions contemplated hereby, including the Schedules to this Agreement, furnished by or on behalf of the Company are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred nor does information exist with respect to the Company or any of its Subsidiaries or its or
their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed (assuming
for this purpose that the Company’s reports filed under the Exchange Act of 1934, as amended, are being incorporated into an effective registration statement filed by the Company under the 1933 Act). The Company acknowledges and agrees that no
Investor makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2. 
  
 (cc) Sarbanes-Oxley Act. The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof, except where such noncompliance would not have a Material Adverse
Effect. 
  
 (dd) FDA Compliance. The Company and its
Subsidiaries, and the manufacture, marketing and sales of the Company’s products, complies with any and all applicable requirements of the Federal Food, Drug and Cosmetic Act, 21 U.S.C. ss.301, et seq., any rules and regulations of the Food and
Drug Administration promulgated thereunder, and any similar laws outside of the United States to which the company is subject, except where such noncompliance would not have a Material Adverse Effect. 
  

 14 

 (ee) Conditions and Sufficiency of Assets. The buildings, plants, structures and equipment
of the Company are structurally sound, are in good operating condition and repair and are adequate for the uses to which they are being put, and none of such buildings, plants, structures or equipment is in need of maintenance or repairs except for
ordinary, routine maintenance and repairs that are not material in nature or cost. The buildings, plants, structures and equipment of the Company are sufficient for the continued conduct of the Company’s business. 
  
 (ff) Contracts; No Defaults. Except as set forth in Schedule
3(ff), each contract of the Company that involves expenditures or receipts in excess of $100,000 (each an “Applicable Contract”) is in full force and effect and is valid and enforceable in accordance with its terms. The
Company is and has been in full compliance with all applicable terms and requirements of each Applicable Contract and no event has occurred or circumstance exists that (with or without notice or lapse of time) may contravene, conflict with or result
in a violation or breach of, or give the Company or any other entity the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify any Applicable Contract. The
Company has not given or received from any other entity any notice or other communication (whether oral or written) regarding any actual, alleged, possible or potential violation or breach of, or default under, any Applicable Contract. 

 
 4. COVENANTS. 
  
 (a) Form D and Blue Sky. The Company agrees to file a Form D with
respect to the Securities as required under Regulation D and to provide a copy thereof to each Investor promptly after such filing. The Company shall make all filings and reports relating to the offer and sale of the Securities required under
applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date 
  
 (b) Reporting Status. Until the date on which the Investors shall have sold all the Common Shares (the “Reporting Period”), the
Company shall file all reports required to be filed with the SEC pursuant to the 1934 Act. 
  
 (c) Financial Information. The Company agrees to send the following to each Investor during the Reporting Period (i) unless the following are filed with the SEC through EDGAR and are available to the
public through the EDGAR system, within one (1) Business Day (as defined below) after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any
registration statements (other than on Form S-8) or amendments filed pursuant to the 1933 Act and (ii) copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously with the
making available or giving thereof to the stockholders. For purposes of this Agreement, “Business Day” shall mean any day other than Saturday, Sunday or any other day on which commercial banks in the City of New York are authorized or
required by law to remain closed. 
  
 (d) Listing. The
Company shall promptly secure the listing of all of the Registrable Securities (as defined in the Registration Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which shares of the Common Stock are
then listed (subject to official notice of issuance) and shall maintain, so long as any other shares of the Common Stock shall be so listed, such listing of all Registrable Securities. 
  

 15 

 The Company shall use its best efforts to maintain the Common Stock’s authorization for quotation on the Principal
Market; provided however, that the Investors acknowledge that the Company has been notified of certain failures to satisfy the continued listing requirements of the Principal Market as disclosed in the SEC Documents and any failure to maintain the
listing of the Common Stock shall not be deemed a breach of this Agreement or any other Transaction Document. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(d). 

 
 (e) Fees. The Company shall be responsible for the payment of any
placement agent’s fees or broker’s commissions relating to or arising out of the transactions contemplated hereby (other than fees or commissions due and owing to a placement agent or broker of any Investor). Except as otherwise set forth
in this Agreement, the Registration Rights Agreement or the Escrow Agreements, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Investors. 
  
 (f) Pledge of Securities. The Company acknowledges and agrees that
the Securities may be pledged by an Investor in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment
of the Securities hereunder, and no Investor effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction
Document, including, without limitation, Section 2(f) of this Agreement; provided that an Investor and its pledgee shall be required to comply with the provisions of Section 2(f) hereof in order to effect a sale, transfer or
assignment of Securities to such pledgee. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by an Investor.

  
 (g) Disclosure of Transactions and Other Material
Information. By 5:30 p.m. (New York City time), but after 4:00 p.m. (New York City time) on the first Business Day after the date hereof, the Company shall file a Current Report on Form 8-K reporting the closing of the transactions contemplated
by the Transaction Documents in the form required by the 1934 Act, and attaching the material Transaction Documents (including, without limitation, this Agreement, the Designation and the Registration Rights Agreement) as exhibits to such filing
(including all attachments, the “8-K Filing”). From and after the filing of the 8-K Filing with the SEC, no Investor shall be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or
any of its respective officers, directors, employees or agents, that is not disclosed in the 8-K Filing. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents,
not to, provide any Investor with any material nonpublic information regarding the Company or any of its Subsidiaries from and after the filing of the 8-K Filing with the SEC without the express written consent of such Investor and the execution of
a confidentiality agreement between such Investor and the Company. In the event of a breach of the foregoing covenant by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents, in addition
to any other remedy provided herein or in the Transaction Documents, an Investor shall have the right to demand that the Company make a public disclosure in accordance with Regulation FD, and if the Company fails to do so within two Business Days,
the Investor may make a public disclosure, in the form of a press release, 
  

 16 

 public advertisement or otherwise, of such material nonpublic information without the prior approval by the Company, its
Subsidiaries, or any of its or their respective officers, directors, employees or agents. No Investor shall have any liability to the Company, its Subsidiaries, or any of its or their respective officers, directors, employees, shareholders or agents
for any such disclosure unless such Investor acts with gross negligence or willful misconduct. Subject to the foregoing, neither the Company nor any Investor shall issue any press releases or any other public statements with respect to the
transactions contemplated hereby without the prior written consent of the other parties hereto; provided, however, that the Company shall be entitled, without the prior approval of any Investor, to make any press release or other
public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations, including the applicable rules and regulations
of the Principal Market (provided that in the case of clause (i) each Investor shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). 
  
 (h) Conduct of Business. The business of the Company and its
Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where such violations would not result, either individually or in the aggregate, in a Material Adverse Effect. 
  
 (i) [RESERVED]. 
  
 (j) Reservation of Shares. The Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of issuance, from and after the Closing Date, a sufficient number of shares of Common Stock issuable upon conversion of, the Preferred Shares being issued at the Closing.

  
 (k) Removal of Legend; Buy in Cure. The legend set
forth in Section 2(g) hereof shall be removed and the Company shall issue a certificate without such legend to the holder of the Securities upon which it is stamped, within three (3) Business Days after the Company’s receipt of a
notice and a seller’s representation letter (the “Delivery Period”), in a form reasonably satisfactory to the Company, from the holder thereof requesting removal of the legend, which notice and letter shall be simultaneously delivered
to the Company’s transfer agent and corporate counsel in accordance with Section 8(f) hereof (each, a “Legend Removal Notice”). In the event the Company does not remove the legend prior to expiration of the Delivery
Period, then, unless the Company has notified the holder in writing prior to the delivery by the holder of a Legend Removal Notice that the Company has determined in good faith that it is unable to honor the holder’s request, if (i) the
Company fails for any reason to deliver unlegended shares prior to expiration of the Delivery Period and (ii) thereafter, the holder purchases (in an open market transaction or otherwise) shares of Common Stock to make delivery in satisfaction
of a sale by the holder of the unlegended shares of Common Stock (the “Sold Shares”) which the holder anticipated receiving prior to expiration of the Delivery Period (a “Buy-In”), the Company shall pay the holder
(which shall be the holder’s exclusive remedy) the amount by which (x) the holder’s total purchase price (including brokerage commissions, if any) for the unlegended shares of Common Stock so purchased exceeds (y) the net
proceeds received by the holder from the sale of the Sold Shares. For example, if the holder purchases unlegended shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to shares of Common Stock it sold for
$10,000, the Company will be required to pay the holder $1,000. The holder shall provide the Company written notification indicating 
  

 17 

 any amounts payable to the holder pursuant to this Section 4(k), together with evidence supporting such calculation.
The Company shall make any payments required pursuant to this Section 4(k) in accordance with the wire instructions contained in the holder’s written notice. 
  
 (l) Participation Rights. 
  

(i) For a period of 12 months immediately following the Closing, if the Company shall issue or sell (a “Financing”) (a) any
shares of Common Stock, (b) any other equity security of the Company, including without limitation shares of preferred stock, (c) any debt security of the Company (other than debt with no equity feature), including without limitation any
debt security which by its terms is convertible into or exchangeable for any equity security of the Company, (d) any security of the Company that is a combination of debt and equity, or (e) any option, warrant or other right to subscribe
for, purchase or otherwise acquire any such equity security or any such debt security of the Company, the Company shall offer to sell 25% of such securities (the “Offered Securities”) to the Investors, pro rata, as set forth in this
Section 4(l) (the “Investors’ Securities”). The Company shall offer, no less than ten (10) Business Days prior to the date of the first sale of such Offered Securities, to sell to each Investor (1) that
portion of the Investors’ Securities as the number of Initial Common Shares that were acquired by such Investor pursuant to the Transaction Documents bears to the total number of Initial Common Shares that were acquired by all the Investors
pursuant to the Transaction Documents (the “Basic Amount”), and (2) such additional portion of the Investors’ Securities as such Investor shall indicate it will purchase should the other Investors subscribe for less than
their Basic Amounts (the “Undersubscription Amount”), at a price and on such other terms as shall have been specified by the Company in a writing delivered to such Investor (the “Offer”), which Offer by its terms
shall remain open and irrevocable for a period of ten (10) Business Days from receipt of the Offer. Notwithstanding the foregoing, the Company shall be obligated to offer and sell Offered Securities to the Investors solely in its next Financing
during the twelve month period immediately following Closing. Notwithstanding anything contained in this Section 4(k) to the contrary, the ten (10) Business-Day offer period may be waived by any one Investor, for solely itself, or all of
the Investors. 
  
 (ii) Notice of each Investor’s intention
to accept, in whole or in part, any Offer made pursuant to Section 4(l)(i) shall be evidenced by a writing signed by such Investor and delivered to the Company prior to the expiration of the ten (10) Business-Day period of such
offer, setting forth such of the Investor’s Basic Amount as such Investor elects to purchase and, if such Investor shall elect to purchase more than its Basic Amount, the Undersubcription Amount as such Investor shall elect to purchase (the
“Notice of Acceptance”). If the Basic Amounts subscribed for by all Investors are less than the total Investors’ Securities then each Investor who has set forth Undersubscription Amounts in its Notice of Acceptance shall be
entitled to purchase all Undersubcription Amounts it has subscribed for; provided, however, that should the Undersubscription Amounts subscribed for exceed the difference between the Investors’ Securities and the Basic Amounts
subscribed for (the “Available Undersubcription Amount”), each Investor who has subscribed for any Undersubcripton Amount shall be entitled to purchase only that portion of the Available Undersubcription Amount as the
Undersubcription Amount subscribed for by such Investor bears to the total Undersubcription Amounts subscribed for by all Investors, subject to rounding by the Company to the extent it deems reasonably necessary. 
  

 18 

 (iii) Exceptions. The rights of the Investors under this Section 4(l) shall terminate
after the consummation of any transaction by the Company to which such rights apply and the expiration of all applicable notice periods relating thereto. The rights of the Investors under this Section 4(l) shall not apply to
(A) Common Stock issued as a stock dividend to holders of Common Stock or upon any subdivision or combination of shares of Common Stock, (B) the Conversion Shares, (C) Common Stock issued upon the exercise or conversion of warrants or
options outstanding as of the date hereof, (D) Common Stock issued in connection with any Approved Stock Option Plan (as defined in the Designation), (E) Common Stock issued in connection with a strategic partnership or joint venture in
which there is a significant commercial relationship with the Company and in which the primary purpose of which is not to raise capital in an amount not to exceed, in the aggregate, gross proceeds to the Company of $20,000,000 or an aggregate of
10,000,000 shares of Common Stock, (F) the payment of interest on, or repayment of principal of, indebtedness to Austria Wirtschaftsservice GmbH or (G) pursuant to a bona fide firm commitment underwritten public offering with a nationally
recognized underwriter which generates gross proceeds in excess of $30,000,000 (other than an “at-the-market offering” as defined in Rule 415(a)(4) under the 1933 Act and “equity lines”). 
  
 (m) Financial and Operating Plan. On or prior to December 31,
2005, the Board shall approve a financial and operating restructuring plan. 
  
 (n) Name Change. As soon as practicable after the Closing Date, the management of the Company shall submit a proposal to the Board regarding the change of the name of the Company. 
  
 (o) Fundamental Change in Business. For so long as shares of
Preferred Shares with an aggregate Stated Value of at least $5,000,000 remain outstanding, the consent of the holders of a majority of the then outstanding Preferred Shares will be required for any material change in the nature of the Company’s
business beyond the life-sciences sector. 
  
 5. REGISTER;
TRANSFER AGENT INSTRUCTIONS. 
  
 (a) Register. The
Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to each holder of the Preferred Shares), a register for the Preferred Shares, in which the Company shall record
the name and address of the Person in whose name the Preferred Shares have been issued (including the name and address of each transferee) and the number of Conversion Shares issuable upon conversion of the Preferred Shares held by such Person. The
Company shall keep the register open and available at all times during business hours for inspection of any Investor or its legal representatives. 
  
 (b) Transfer Agent Instructions. The Company shall issue irrevocable instructions, in the form of Exhibit E attached hereto (the
“Irrevocable Transfer Agent Instructions”), to its transfer agent, and any subsequent transfer agent, to issue certificates or credit shares to the applicable balance accounts at DTC, registered in the name of each Investor or its
respective nominee(s), for the Conversion Shares, in such amounts as specified from time to time by each Investor to the Company upon conversion of the Preferred Shares, subject to compliance with the terms of the Designation. The Company warrants
that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b), and stop transfer instructions to give effect to Section 2(f) hereof, will be given by the Company to its

  

 19 

 transfer agent, and that the Securities shall otherwise be freely transferable on the books and records of the Company as
and to the extent provided in this Agreement and the other Transaction Documents. If an Investor effects a sale, assignment or transfer of the Securities in accordance with Section 2(f), the Company shall permit the transfer and shall
promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Investor to effect such sale, transfer or assignment. The
Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to an Investor. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5(b) will
be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5(b), that an Investor shall be entitled, in addition to all other available remedies, to an order and/or injunction
restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required. 
  
 6. CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL. 
  
 (a) Closing Date. The obligation of the Company hereunder to issue
and sell the Closing Shares to each Investor at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived
by the Company at any time in its sole discretion by providing each Investor with prior written notice thereof: 
  
 (i) Such Investor shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company. 
  
 (ii) Such Investor shall have surrendered and delivered for cancellation to
the Company, the Notes. 
  
 7. CONDITIONS TO EACH
INVESTOR’S OBLIGATION TO PURCHASE. 
  
 (a) Closing
Date. The obligation of each Investor to surrender for cancellation the Notes at Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for each
Investor’s sole benefit and may be waived by such Investor at any time in its sole discretion by providing the Company with prior written notice thereof: 
  

(i) The Company shall have executed and delivered to such Investor each of the Transaction Documents. 
  
 (ii) The Company shall have delivered to such Investor a copy of the
Irrevocable Transfer Agent Instructions, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer agent. 
  
 (iii) The Company shall have delivered to such Investor a certificate evidencing the incorporation and good standing of the Company issued by the
Secretary of State of the State of Delaware as of a date within ten (10) days of the Closing Date. 
  

 20 

 (iv) The Company shall have delivered to such Investor a certificate evidencing the Company’s
qualification as a foreign corporation and good standing issued by the Pennsylvania Department of State, Corporation Bureau as of a date within ten (10) days of the Closing Date. 
  
 (v) The Company shall have delivered to such Investor a certificate, executed by the Secretary of the Company and dated as
of the Closing Date, as to (i) the resolutions adopted by the Company’s Board in a form reasonably acceptable to such Investor (the “Resolutions”), (ii) the Certificate of Incorporation and (iii) the Bylaws, each
as in effect at the Closing. 
  
 (vi) The Company shall have
delivered to such Investor the certificates evidencing the Preferred Shares and the Initial Common Shares and shall have delivered certificates representing the Escrow Common Shares to the Escrow Agents. 
  
 (vii) The Company shall have delivered to such Investor immediately
available funds in an amount set forth with respect to such Investor on Schedule A hereto. 
  
 (viii) The Designation shall have been accepted for filing with the Secretary of State of the State of Delaware and a file-stamped copy of the
Designation shall have been delivered to the Investors. 
  
 (ix)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the
transactions contemplated by the Transaction Documents. 
  
 (x)
Trading in the Common Stock shall not have been suspended by the Securities and Exchange Commission or the Principal Market. 
  
 (xi) Company counsel shall have executed and delivered its legal opinion, in agreed form, addressed to the Investors. 
  
 (xii) A Certificate executed by a duly authorized officer of the Company
certifying that (i) all representations and warranties made by the Company and information furnished by the Company in any schedules to this Agreement, are true and correct in all material respects as of each of the date of this Agreement and
the Closing Date, (ii) all covenants, agreements and obligations required by this Agreement to be performed or complied with by the Company, prior to or at the Closing, have been performed or complied with and (iii) the items referenced in
Sections 7(a)(ix)-(x) shall have been satisfied and are true and correct as of the Closing. 
  
 (xiii) Any other documents reasonably requested by such Investor shall be delivered. 
  

 21 

 8. MISCELLANEOUS. 
  
 (a) Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that
would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of
Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
  
 (b) Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
  
 (c) Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement. 
  
 (d) Severability. If any provision of this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction. 
  
 (e)
Entire Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written agreements between the Investors, the Company, their affiliates and Persons acting on their behalf with respect to the
matters discussed herein and therein, including without limitation, the letter agreement, dated as of November 9, 2005, and this Agreement and the other Transaction Documents contain the entire understanding of the parties with respect to the
matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor any Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be amended other than by an instrument in writing signed by the Company and the Investors holding at least two-thirds of the outstanding Common Shares (assuming for this purpose the full conversion of all of the Preferred Shares). No provision
hereof may be waived other than by an instrument in writing signed by the party against whom 
  

 22 

 enforcement is sought. No such amendment shall be effective to the extent that it applies to less than all of the holders
of the Securities then outstanding. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of
the parties to the Transaction Documents, or holders of the Securities, as the case may be. The Company has not, directly or indirectly, made any agreements with any Investors relating to the terms or conditions of the transactions contemplated by
the Transaction Documents except as set forth in the Transaction Documents. 
  
 (f) Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered:
(i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile if received by 4:59 p.m. local time of the recipient, or the following Business Day if received after 4:59 p.m. local time of the recipient (provided in
each case that confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such communications shall be: 
  
 If to the Company: 
  
 Aphton Corporation 
 8 Penn Center, Suite 2300 
 1628 JFK Boulevard 
 Philadelphia, PA 19103 
 Telephone: (215) 218-4340 
 Facsimile: (215) 218-4355 
 Attention: Chief Executive Officer 
  
 with a copy to: 
  
 Akerman Senterfitt 
 One Southest Third Avenue 
 28th Floor 
 Miami FL 33131-1714 
 Telephone: (305) 982-5592 
 Facsimile: (305) 374-5095 
 Attention: Kara MacCullough 
  
 If to the Transfer Agent: 
  
 U.S. Stock Transfer Corporation 
 1745 Gardena Avenue 
 Glendale CA 91204-2991 
 Telephone: (818) 502-1404 
 Facsimile: (818) 502-0674 
 Attention: William Garza 
  

 23 

 If to an Investor, to its address and facsimile number set forth on Schedule A attached hereto, with copies to
such Investor’s representatives as set forth thereon, or to such other address and/or facsimile number and/or to the attention of such other Person as may be specified by a party by written notice given to each other party five (5) days
prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile
machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt
from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively. 
  
 (g) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of the Preferred Shares. The Company may assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investors in connection with any sale of the Company, whether by way of
merger, consolidation, sale of assets or similar transaction. An Investor may assign some or all of its rights hereunder without the consent of the Company, in which event such assignee shall be deemed to be an Investor hereunder with respect to
such assigned rights. 
  
 (h) No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
  
 (i) Survival. The representations, warranties, agreements and
covenants set forth in this Agreement shall survive the Closing. Each Investor shall be responsible only for its own representations, warranties, agreements and covenants hereunder. 
  
 (j) Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby. 
  
 (k)
Indemnification by the Company. In consideration of each Investor’s execution and delivery of the Transaction Documents and acquiring Closing Shares thereunder and in addition to all of the Company’s other obligations under the
Transaction Documents, the Company shall defend, protect, indemnify and hold harmless each Investor and each other holder of the Securities and all of their stockholders, partners, members, officers, directors, employees and direct or indirect
investors and any of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Investor
Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Investor Indemnitee is a
party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Investor Indemnified Liabilities”), incurred by any Investor Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated 
  

 24 

 hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in the
Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against such Investor Indemnitee by a third party (including for these purposes a
derivative action brought on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument or document contemplated hereby
or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (iii) any disclosure made by such Investor pursuant to Section 4(h),
or (iv) the status of such Investor or holder of the Securities as an investor in the Company. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to
the payment and satisfaction of each of the Investor Indemnified Liabilities which is permissible under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations under this
Section 9(k) shall be the same as those set forth in Section 6 of the Registration Rights Agreement. 
  
 (l) No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party. 
  
 (m) Remedies. Each Investor and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such Investors or holders have been
granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without
posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it fails to perform,
observe, or discharge any or all of its obligations under this Agreement, any remedy at law may prove to be inadequate relief to the Investors. The Company therefore agrees that the Investors shall be entitled to seek temporary and permanent
injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security. 
  
 (n) Payment Set Aside. To the extent that the Company makes a payment or payments to the Investors hereunder or pursuant to any of the other
Transaction Documents or the Investors enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not
been made or such enforcement or setoff had not occurred. 
  
 (o)
Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under any Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any
way for the 
  

 25 

 performance of the obligations of any other Investor under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the
Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor confirms that it has independently participated in the negotiation of the
transaction contemplated hereby with the advice of its own counsel and advisors. Each Investor shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any
other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. 
  
 (p) Heartland Value Fund. The Company understands and agrees that Heartland is entering into this Agreement solely on behalf of Heartland Value
Fund and that any claims that the Company may have against Heartland Group, Inc. under this Agreement or otherwise in connection with the transactions contemplated hereby shall only be made against the assets of the Heartland Value Fund. 

 
 [Signature Pages Follow] 
  

 26 

 IN WITNESS WHEREOF, the Company has caused this Exchange Agreement to be duly executed as of the
date first written above. 
  
 COMPANY: 
  

			
	APHTON CORPORATION
		
	 By:
  
	 	 /s/ Patrick T. Mooney

	 	 	Patrick T. Mooney, M.D.
	 	 	Chief Executive Officer

 IN WITNESS WHEREOF, each Investor has caused this Exchange Agreement to be duly executed as of the
date first written above. 
  

			
	SF CAPITAL PARTNERS LTD.
		
	By:	 	 /s/ Brian H. Davidson

	Name:	 	Brian H. Davidson
	Title:	 	Authorized Signatory

 IN WITNESS WHEREOF, each Investor has caused this Exchange Agreement to be duly executed as of the
date first written above. 
  

			
	 HEARTLAND GROUP, INC
 solely on
behalf of the Heartland Value Fund

		
	By:	 	 /s/ Paul T. Beste

	Name:	 	Paul T. Beste
	Title:	 	Vice President

 IN WITNESS WHEREOF, each Investor has caused this Exchange Agreement to be duly executed as of the
date first written above. 
  

			
	 SMITH BARNEY FUNDAMENTAL VALUE FUND INC.
 (Nominee Name: Horizon Waves & Co.)

		
	By:	 	 /s/ John G. Goode

	Name:	 	John G. Goode
	Title:	 	Vice President

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