Document:

<PAGE>   1
                                                                    Exhibit 4.18

                                    EXHIBIT A

                          REGISTRATION RIGHTS AGREEMENT

      THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into on
March 20, 2001, by and among RED BELL BREWING COMPANY, a corporation duly
incorporated and existing under the laws of the Commonwealth of Pennsylvania
(the "Company"), and GERALD N. HOLTZ (the "Investor").

                                    RECITALS:

      WHEREAS, the parties hereto have entered into a Subscription Agreement
dated the date hereof (the "Subscription Agreement") whereby the Company has
agreed to issue to the Investor certain shares of Common Stock of the Company
(the "Common Stock") in furtherance of the satisfaction of the Company's
obligations to pay the outstanding principal and accrued interest due the
Investor under a promissory note dated March 3, 2000 and for the cancellation of
certain security documents in connection therewith;

      WHEREAS, pursuant to the Subscription Agreement, the Company has agreed to
issue 103,066 shares of Common Stock (the "Initial Shares") to the Investor on
the effective date of the Subscription Agreement and additional shares of Common
Stock to him in certain circumstances (the "Additional Shares" and together with
the Initial Shares, the "Shares"); and

      WHEREAS, the Company has agreed to provide the Investor with certain
registration rights with respect to the Shares, as set forth herein.

                                     TERMS:

      NOW, THEREFORE, in consideration of the mutual promises, representations,
warranties, covenants and conditions set forth in this Agreement and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound hereby, the parties hereto agree
as follows:

      1. Certain Definitions. As used in this Agreement (including the Recitals
above), the following terms shall have the following meanings (such meanings to
be equally applicable to both singular and plural forms of the terms defined):

            "Additional Registration Statement" shall have the meaning set forth
in Section 3(b).

            "Additional Shares" shall have the meaning set forth in the recitals
to this Agreement.

            "Amended Registration Statement" shall have the meaning set forth in
Section 3(b).

            "Common Stock" shall mean the Common Stock of the Company.

            "Effective Date" shall have the meaning set forth in Section 2.3.
<PAGE>   2
            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, together with the rules and regulations promulgated thereunder.

            "Filing Deadline" shall mean ten days following the commencement of
trading of the Common Stock on the NASDAQ OTC Bulletin Board or other national
market system.

            "Holder" shall mean the Investor, and any other person or entity
owning or having the right to acquire Registrable Securities or any permitted
assignee.

            "Initial Shares" shall have the meaning set forth in the recitals to
this Agreement.

            "Investor" shall have the meaning set forth in the preamble to this
Agreement.

            "Register," "Registered," and "Registration" shall mean and refer to
a registration effected by preparing and filing a registration statement or
similar document in compliance with the Securities Act and pursuant to Rule 415
under the Securities Act or any successor rule, and the declaration or ordering
of effectiveness of such registration statement or document.

            "Registrable Securities" shall have the meaning set forth in Section
2.1.

            "Registration Period" shall have the meaning set forth in Section
2.4.

            "Registration Statement" shall have the meaning set forth in Section
2.2.

            "Rule 144" shall mean Rule 144, as amended, promulgated under the
Securities Act.

            "SEC" shall mean the United States Securities and Exchange
Commission.

            "Securities Act" shall mean the Securities Act of 1933, as amended,
together with the rules and regulations promulgated thereunder.

            "Shares" shall mean the Initial Shares and any Additional Shares.

            "Supplemental Registration Statement" shall have the meaning set
forth in Section 3(b).

      2. Required Registration.

            2.1 Registrable Securities. "Registrable Securities" shall mean the
Shares; provided, however, that notwithstanding the above, the following shall
not be considered Registrable Securities:

                  (a) any Shares which would otherwise be deemed to be
Registrable Securities, if and to the extent that those Shares may be resold in
a public
<PAGE>   3
transaction without volume limitations or other material restrictions without
registration under the Securities Act, including without limitation, pursuant to
Rule 144 under the Securities Act; and

                  (b) any Shares which have been sold on or after the fifth day
prior to the Effective Date in a private or other transaction other than
pursuant to the Registration Statement or Supplemental Registration Statement.

            2.2 Filing of Initial Registration Statement. The Company shall, by
the Filing Deadline, file a registration statement ("Registration Statement") on
Form SB-2 (or other suitable form, at the Company's discretion, but subject to
the reasonable approval of the Investor), covering the resale of the Initial
Shares as Registrable Securities, together with 103,066 additional shares of
Common Stock to cover any Additional Shares which may be issued to the Investor
(the "Shelf"). In the event that the Company has issued Additional Shares to the
Investor in excess of the Shelf which have not been registered, the Company
shall promptly file a registration statement covering the resale of such
Additional Shares as Registrable Securities.

            2.3 Registration Effective Date. The Company shall use its best
efforts to have the Registration Statement declared effective by the SEC (the
date of such effectiveness is referred to herein as the "Effective Date") as
soon as practicable.

            2.4 Shelf Registration. The Registration Statement shall be prepared
as a "shelf" registration statement under Rule 415, and shall be maintained
effective (the "Registration Period") until the earlier of (i) one year from the
Effective Date, or (ii) the date that all Registrable Securities are resold
pursuant to the Registration Statement.

      3. Obligations of the Company. Whenever required under this Agreement to
effect the registration of any Registrable Securities, the Company shall, as
expeditiously and reasonably as possible:

            (a) Prepare and file with the SEC a Registration Statement with
respect to such Registrable Securities and use its best efforts to cause such
Registration Statement to become effective and to remain effective during the
Registration Period.

            (b) Prepare and file with the SEC such amendments and supplements to
such Registration Statement and the prospectus used in connection with such
Registration Statement ("Amended Registration Statement") or prepare and file
any additional registration statement ("Additional Registration Statement,"
together with the Amended Registration Statement, "Supplemental Registration
Statements") as may be necessary to comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by such
Supplemental Registration Statements or such prior registration statement or to
cover the resale of all Registrable Securities. The Company shall use its best
efforts to have any Additional Registration Statement become effective within 30
days of the issuance of the underlying Registrable Securities.

            (c) Furnish to the Holder such numbers of copies of a prospectus,
including a preliminary prospectus (if applicable), in conformity with the
requirements of the Securities Act, and such other documents as they may
reasonably request in order to
<PAGE>   4
facilitate the disposition of Registrable Securities owned by it.

            (d) Use its best efforts, if necessary, to register and qualify the
securities covered by such Registration Statement under such other securities or
Blue Sky laws of the jurisdictions in which the Holder is located, of such other
jurisdictions as shall be reasonably requested by the Holder of the Registrable
Securities covered by such Registration Statement, provided that the Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business or to file a general consent to service of process in any
such states or jurisdictions.

            (e) As promptly as practicable after becoming aware of such event,
notify each Holder of Registrable Securities of the happening of any event of
which the Company has knowledge, as a result of which the prospectus included in
the Registration Statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, use its best efforts promptly to prepare a
supplement or amendment to the Registration Statement to correct such untrue
statement or omission, and deliver a number of copies of such supplement or
amendment to each Holder as such Holder may reasonably request.

            (f) Provide the Holder with notice of the date that a Registration
Statement or any Supplemental Registration Statement registering the resale of
the Registrable Securities is declared effective by the SEC, and the date or
dates when the Registration Statement is no longer effective.

      4. Furnish Information. At the Company's request, the Holder shall furnish
to the Company such information regarding the Holder, the Registrable Securities
held by it, and the intended method of disposition of such securities to the
extent required to effect the registration of its Registrable Securities or to
determine that registration is not required pursuant to Rule 144 or other
applicable provision of the Securities Act. The Company shall include all
information provided by such Holder pursuant hereto in the Registration
Statement, substantially in the form supplied, except to the extent such
information is not permitted by law.

      5. Expenses. All expenses, other than commissions and fees and expenses of
counsel to the selling Holder, incurred in connection with registrations,
filings or qualifications pursuant hereto, including (without limitation) all
registration, filing and qualification fees, printers' and accounting fees, fees
and disbursements of counsel for the Company, shall be borne by the Company.

      6. Amendments to Registration Rights. Any provision of this Agreement may
be amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company and the written consent of each Holder affected
thereby. Any amendment or waiver effected in accordance with this paragraph
shall be binding upon each Holder, each future Holder, and the Company.

      7. Notices. All notices required or permitted under this Agreement shall
be made in writing signed by the party making the same, shall specify the
section under this
<PAGE>   5
Agreement pursuant to which it is given, and shall be addressed if to (i) the
Company at: Red Bell Brewing Company, 3100 Jefferson Street, Philadelphia, PA
19121, Attn. James R. Bell, President (or such other location as directed by the
Company in writing) and (ii) the Holders at their respective last address as
shown on the records of the Company. Any notice, except as otherwise provided in
this Agreement, shall be made by recognized overnight courier, hand delivery or
certified or registered mail (postage prepaid, return receipt requested) and
shall be deemed delivered upon receipt.

      8.    Termination.  This Agreement shall terminate on the date all
Registrable Securities cease to exist (as that term is defined in Section 2.1
hereof).

      9. Assignment. No assignment, transfer or delegation, whether by operation
of law or otherwise, of any rights or obligations under this Agreement by the
Company or any Holder, respectively, shall be made without the prior written
consent of the majority in interest of the Holders or the Company, respectively,
and the Company hereby agrees to file an amended registration statement
including such transferee as a selling security holder thereunder; and provided
further that the Company may transfer its rights and obligations under this
Agreement to a purchaser of all or a substantial portion of its business if the
obligations of the Company under this Agreement are assumed in connection with
such transfer, either by merger or other operation of law (which may include,
without limitation, a transaction whereby the Registrable Securities are
converted into securities of the successor in interest) or by specific
assumption executed by the transferee. Notwithstanding the foregoing, the
Investor may assign its rights hereunder to any person or entity provided such
assignment occurs at least five business days prior to the Effective Date.

      10. Indemnification. In the event any Registrable Securities are included
in a Registration Statement under this Agreement:

            (a) To the extent permitted by law, the Company will indemnify and
hold harmless each Holder, the officers, directors and partners of each Holder,
any underwriter (as defined in the Securities Act, or as deemed by the
Securities Exchange Commission, or as indicated in a registration statement) for
such Holder and each person, if any, who controls such Holder or underwriter
within the meaning of Section 15 of the Securities Act or the Exchange Act,
against any losses, claims, damages, or liabilities (joint or several) to which
they may become subject under the Securities Act, the Exchange Act or other
federal or state law, insofar as such losses, claims, damages, or liabilities
(or actions in respect thereof) arise out of or are based upon any of the
following statements or omissions: (i) any untrue statement or alleged untrue
statement of any fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein or any amendments
or supplements thereto, or (ii) the omission or alleged omission to state
therein any fact required to be stated therein, or necessary to make the
statements therein not misleading, and the Company will reimburse each such
Holder, officer or director, underwriter or controlling person 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 indemnity agreement contained in this subsection 10(a) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability, or
action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable in
any such case for any such loss, claim, damage, liability, or action to the
extent that it arises out of or is based upon a
<PAGE>   6
violation which occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
any such Holder, officer, director, underwriter or controlling person; provided
however, that the above shall not relieve the Company from any other liabilities
which it might otherwise have.

            (b) The Holder of any securities included in such registration being
effected shall indemnify and hold harmless the Company, its directors and
officers, each underwriter and each other person, if any, who controls (within
the meaning of the Securities Act or Exchange Act) the Company or such other
indemnified party, against any losses, claims, damages, or liability, joint or
several, to which any such indemnified party may become subject under the
Securities Act or the Exchange Act or any other statute or at common law,
insofar as such liability (or actions in respect thereof) arises out of or is
based upon any of the following statements or omissions: (i) any untrue
statement or alleged untrue statement of any material fact contained, on the
effective date thereof, in any registration statement under which securities
were registered under the Securities Act at the request of such Holder, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereto; or (ii) any omission or alleged omission by such Holder
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading; in each case, to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in such registration statement,
preliminary or final prospectus, amendment or supplement thereto in reliance
upon and in conformity with information furnished in writing to the Company by
such Holder specifically for use therein. Such Holder shall reimburse any
indemnified party for any legal fees or other expenses incurred in investigating
or defending any such loss, claim, damage, action, or liability; and provided
further, that no Holder shall be required to indemnify any party against any
liability arising from any untrue or misleading statement or omission contained
in any preliminary prospectus if such deficiency is corrected in the final
prospectus or for any liability which arises out of the failure of such party to
deliver a prospectus as required by the Securities Act.

            (c) Promptly after receipt by an indemnified party under this
Section 10 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 10, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume, the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the reasonably incurred fees and
expenses of one such counsel to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential conflicting
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if materially prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 10, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 10.
<PAGE>   7
            (d) In the event that the indemnity provided in paragraphs (a)
and/or (b) of this Section 10 is unavailable to or insufficient to hold harmless
an indemnified party for any reason, the Company and the Holder agree to
contribute to the aggregate claims, losses, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively "Losses") to which the Company and one or more of
the Holders may be subject in such proportion as is appropriate to reflect the
relative fault of the Company and the Holders in connection with the statements
or omissions which resulted in such Losses. Relative fault shall be determined
by reference to whether any alleged untrue statement or omission relates to
information provided by the Company or by the Holders. The Company and the
Holders agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation that 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
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 10,
each person who controls a Holder of Registrable Securities within the meaning
of either the Securities Act or the Exchange Act and each director, officer,
partner, employee and agent of a Holder shall have the same rights to
contribution as such holder, and each person who controls the Company within the
meaning of either the Securities Act or the Exchange Act and each director and
officer of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this
paragraph (d).

            (e) The obligations of the Company and Holders under this Section 10
shall survive the resale, if any, of the Common Stock, the completion of any
offering of Registrable Securities in a Registration Statement under this
Agreement, and otherwise.

      11. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania applicable to
agreements made in and wholly to be performed in that jurisdiction, except for
matters arising under the Securities Act or the Exchange Act, which matters
shall be construed and interpreted in accordance with such laws.

      12.   Execution in Counterparts.  This Agreement may be executed in any
number of counterparts, each of which shall be enforceable against the
parties actually executing such counterparts, and all of which together shall
constitute one instrument.

      13. Entire Agreement; Written Amendments Required. This Agreement
constitutes the full and entire understanding and agreement between the parties
with regard to the subject hereof, and no party shall be liable or bound to any
other party in any manner by any warranties, representations or covenants except
as specifically set forth herein. Except as expressly provided herein, neither
this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought.

      IN WITNESS WHEREOF, the undersigned have executed this Registration Rights
Agreement as of the date first above written.
<PAGE>   8
                                    RED BELL BREWING COMPANY

                                    By:   /s/ James R. Bell
                                          --------------------------------
                                          James R. Bell, President

                                    Address:    3100 Jefferson Street
                                                Philadelphia, PA 19121

                                    INVESTOR:

                                    /s/ Gerald N.  Holtz
                                    ---------------------------------------
                                    Gerald N. Holtz

                                    Address:    919 Conestoga Road
                                                Building Two, Suite 106
                                                Rosemont, PA 19010<PAGE>   1
                                                                    Exhibit 4.19

                           RED BELL BREWING COMPANY

                            SUBSCRIPTION AGREEMENT

      THIS SUBSCRIPTION AGREEMENT is made this 20th day of March, 2001, by and
between GERALD N. HOLTZ ("Holtz"), RED BELL BREWING COMPANY, a Pennsylvania
corporation (the "Company"), and JAMES R. BELL ("Bell").

                                   BACKGROUND

      Pursuant to a promissory note dated March 3, 2000 (the "Note"), Holtz
loaned the principal amount of $260,000 to Red Bell Brewing & Pub Company-State
College, Inc., a subsidiary of the Company, which Note became due and payable on
June 3, 2000. As of the date hereof, the amount of principal and accrued
interest due under the Note, together with legal fees of Holtz associated
therewith is $395,000.00 ("Amount Due"). In furtherance of the satisfaction of
the obligations to pay the Amount Due and for the cancellation of certain of the
security interests granted to Holtz to secure the obligations under the Note,
the Company is issuing to Holtz unrestricted shares of Common Stock of the
Company (the "Common Stock"). Bell is the President and controlling shareholder
of the Company.

                                    AGREEMENT

      NOW, THEREFORE, intending to be legally bound hereby, the parties hereto
agree as follows:

      1. ISSUANCE AND SALE OF STOCK. On the Effective Date (as defined below),
the Company shall issue 103,066 shares of Common Stock (the "Initial Shares") to
Holtz and Holtz shall acquire the Initial Shares from the Company. The Initial
Shares, together with the Additional Shares (as defined below), are being issued
to Holtz by the Company in lieu of the payment by the Company of the principal
and interest due under the Note. On the Effective Date, the Company will deliver
to Holtz or his designated agent a certificate representing the Initial Shares.
It is intended by the parties hereto that, following the registration thereof,
Holtz may sell the Initial Shares, together with any Additional Shares issued to
him hereunder, in the public market in order to obtain Net Proceeds (as defined
below) to him at least equal to the Amount Due. For purposes hereof, "Net
Proceeds" shall be defined as the actual proceeds from the sale of any Initial
Shares or Additional Shares in the public market, less any brokerage commissions
incurred by Holtz.

      2. TERMINATION OF PLEDGE AND GUARANTY DOCUMENTS. In consideration for the
issuance of the Initial Shares, and any Additional Shares, to Holtz, on the
Effective Date the Pledge of Corporate Stock dated March 3, 2000 between James
R. Bell and Holtz, the Pledge of Corporate Stock dated March 3, 2000 between the
Company and Holtz, and the Guaranty and Suretyship Agreement dated March 1, 2000
between the Company and Holtz (collectively "Pledge and Guaranty Documents")
shall be automatically terminated and of no further force and effect whatsoever
and shall be deemed null and void, and each party thereto shall be relieved of
all responsibilities, obligations and liabilities for any benefits, obligations
or duties to the other party thereto incurred under the terms of these
agreements, without any further actions.
<PAGE>   2
      3. EFFECTIVE DATE. This Agreement shall become effective on the date on
which the Common Stock commences trading on the NASDAQ OTC Bulletin Board or
other national market system (the "Effective Date"). In the event the Effective
Date does not occur on or before April 6, 2001, this Agreement shall
automatically terminate, be null and void, and have no force and effect in any
respects.

      4. NOTE; SECURITY INTEREST IN LIQUOR LICENSE. Until the Amount Due has
been collected in full by Holtz, the Note, the Security Agreement between the
Subsidiary and Holtz dated March 3, 2000 (the "Security Agreement"), the
Irrevocable Power of Attorney from the Subsidiary in favor of Holtz dated March
1, 2000, the UCC-1 financing statements filed in connection with the Security
Agreement, as well as any other documents related thereto (other than the Note,
the "Security Documents"), shall remain in full force and effect; provided that
from the Effective Date until June 18, 2001, Holtz agrees to forbear from
exercising any collection efforts on the Note or any rights and remedies under
the Security Documents. In the event any of the following shall occur during the
forbearance period, Holtz shall no longer be required to forbear hereunder: (a)
Holtz is deemed to be an "affiliate" of the Company as defined in Rule 144(a)(1)
of the Securities Act of 1933, as amended (the "Act"); (b) the SB-2 Registration
Statement (as defined below) has not been declared effective by the Securities
and Exchange Commission on or before May 1, 2001; or (c) following the effective
date of the SB-2 Registration Statement, the Net Proceeds to Holtz from the sale
of the Initial Shares and any Additional Shares are less than $50,000 for any
consecutive thirty (30) day period. Upon the receipt in full of the Amount Due,
Holtz shall take any and all action requested by the Company to terminate the
Note and the Security Documents. Notwithstanding anything else set forth in this
Agreement, in no event shall Holtz be entitled to receive monies in excess of
$390,000 on account of the Note (other than pursuant to the second to last
sentence of Section 5 or pursuant to the Security Documents).

      5. ADDITIONAL SHARES. If, following the sale by Holtz of the Initial
Shares (or any Additional Shares issued to Holtz hereunder), the Net Proceeds
are less than the Amount Due, then the Company shall, from time to time at the
request of Holtz, expeditiously issue to Holtz additional shares of
unrestricted, registered Common Stock in an amount to be agreed upon between
Holtz and the Company ("Additional Shares"). Upon the receipt by Holtz of Net
Proceeds equal to the Amount Due, Holtz shall not be entitled to receive any
further any Additional Shares, but may retain any shares of Common Stock
previously issued to him under this Agreement and the Note shall be deemed fully
satisfied. All Additional Shares shall be subject to the provisions of the
Registration Rights Agreement.

      6. REGISTRATION OF INITIAL SHARES AND ADDITIONAL SHARES. Promptly
following the execution of this Agreement, the Company shall file a registration
statement on Form SB-2 (the "SB-2 Registration Statement") registering the
Initial Shares and an additional 103,066 shares of Common Stock for purposes of
the Additional Shares (the "Shelf"), in accordance with the Registration Rights
Agreement attached hereto as Exhibit A (the "Registration Rights Agreement").
Until the Amount Due has been paid, the Shelf shall be used by the Company only
to satisfy the obligation of the Company to issue the Additional Shares to Holtz
pursuant to Section 5 hereof. Holtz agrees that all sales of the Initial Shares
and the Additional Shares shall be sold pursuant to the manner of sale
requirements set forth under Rule 144(f) of the Act.
<PAGE>   3
      7. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND BELL. The Company and
Bell hereby jointly and severally make the following representations and
warranties to Holtz:

            A. The issuance of the Initial Shares and the Additional Shares has
been duly authorized by all necessary corporate action, and when issued, the
Initial Shares and the Additional Shares will be validly issued, fully paid and
non-assessable. Upon transfer and delivery of the Initial Shares and any
Additional Shares, Holtz shall obtain full legal title to all of such Shares,
free and clear of any lien, charge or other encumbrance of any nature.

            B. The execution and delivery of this Agreement and the Registration
Rights Agreement, and the consummation of the transactions contemplated hereby,
has been duly authorized by all necessary corporate action of the Company.

            C. The Company has the full right, power and authority to enter into
this Agreement and the Registration Rights Agreement and to consummate the
transaction described herein and therein. This Agreement and the Registration
Rights Agreement have been duly executed and delivered by the Company and
constitute the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with their terms.

            D. The Security Documents and the security interests granted
thereunder remain in full force and effect as first priority liens. Neither the
Company nor any of its subsidiaries has granted any other security interest or
lien in or upon the liquor license which is the collateral under the Security
Documents.

            E. Upon the registration of the Initial Shares and the Additional
Shares pursuant to this Agreement and the Registration Rights Agreement, the
Initial Shares and the Additional Shares shall be fully tradable by Holtz, free
of any and all restrictions other than the manner of sale requirements set forth
under Rule 144(f) of the Act.

            F.    Holtz is not now, nor has he been, an "affiliate" of the
Company as defined in Rule 144(a)(1) of the Act.

      8. REPRESENTATIONS AND WARRANTIES OF HOLTZ. Holtz hereby makes the
following representations and warranties to the Company:

            A. Holtz understands that the Stock is being offered and sold under
an exemption from registration under the Act, and offering exemptions contained
in the securities laws of Pennsylvania; that Holtz is purchasing the Stock
without being furnished any offering literature or prospectus of any sort
relating to the Company; and that all documents, records and books pertaining to
this investment and the Company have been made available by the Company to Holtz
and Holtz"s representatives.

            B. Holtz understands that the Initial Shares have not, and except as
provided in the Registration Rights Agreement between the parties, will not be
registered under the Act or any state securities laws, and that in order to sell
or transfer the Initial Shares, such Initial Shares must either be registered
under such laws or an appropriate exemption from registration must be available.
<PAGE>   4
            C. Holtz is a bona fide resident and domiciliary of the Commonwealth
of Pennsylvania and has no present intention of becoming a resident or
domiciliary of any other jurisdiction.

            D. Holtz is an accredited investor as defined in Rule 501 under the
Act.

            E. Holtz understands and has fully considered, for purposes of this
investment, that there are substantial restrictions on the transferability of
the Initial Shares and there is currently no established public market for the
Initial Shares and no liquidity is present in connection with the Initial
Shares.

            F. Holtz has such knowledge and experience in financial and business
matters that Holtz is capable of evaluating the merits and risks of an
investment in the Common Stock and of making an informed investment decision.

            G. Holtz confirms that in making his decision to purchase the
Initial Shares hereby subscribed for, Holtz has relied solely upon his own
independent investigation of the Company and the Security Documents, and not on
any representations, warranties or statements made by or on behalf of the
Company (other than those made herein), and that he has been given the
opportunity to ask questions of and to receive answers from the Company
concerning the Company, its financial condition and business, and to obtain any
additional information which the Company possesses or can acquire without
unreasonable effort or expense.

            H. The Common Stock hereby subscribed for is being acquired by Holtz
in good faith solely for his own account for investment purposes only and is not
being purchased with a view to or for the resale, distribution, subdivision or
fractionalization thereof (other than following the registration of such Common
Stock pursuant to Section 6); Holtz has no contract, understanding, undertaking,
agreement or arrangement, formal or informal, with any person to sell, transfer
or pledge to any person the Stock for which Holtz hereby subscribes for or any
part thereof. Holtz understands that the legal consequences of the foregoing
representations and warranties are that Holtz must bear the economic risk of an
investment in the Common Stock for an indefinite period of time because the
Initial Shares and the Additional Shares have not been registered under the Act
or applicable state securities laws and therefore cannot be sold unless such
Shares are subsequently registered under the Act or applicable state securities
laws (which the Company has agreed to do under the Registration Rights
Agreement) or an exemption from such registration is available.

            I. Holtz consents to the placement of a legend on the certificate
representing the Initial Shares being purchased by Holtz, which legend will be
in substantially the following form (the "Securities Legend"):

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE
            SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
            OTHER JURISDICTION. THE SALE OR OTHER DISPOSITION OF THESE
            SECURITIES IS PROHIBITED UNLESS THE COMPANY RECEIVES AN OPINION OF
            COUNSEL
<PAGE>   5
            SATISFACTORY TO IT AND ITS COUNSEL THAT SUCH SALE OR OTHER
            DISPOSITION CAN BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES
            ACT OF 1933 AND OTHER APPLICABLE STATUTES."

            J. Holtz has not sold, assigned, transferred or conveyed any
interest in or to the Pledge and Guaranty Documents to any person or entity.

      9. ADDITIONAL COVENANTS OF THE COMPANY AND BELL.

            A. Notwithstanding anything else set forth herein, it is the
parties' intention that at no time shall Holtz be deemed an affiliate of the
Company as defined in Rule 144(a)(1) of the Act. The issuance of any Additional
Shares to Holtz is subject to receipt by the Company of an opinion of the
Company's legal counsel that such issuance would not cause Holtz to become an
affiliate. The Company agrees to promptly seek such opinion upon becoming aware
of the need hereunder to issue Additional Shares.

            B. Upon the registration of the Initial Shares pursuant to the
Registration Rights Agreement, the Company shall promptly either remove the
Securities Legend or issue an opinion of counsel to the transfer agent to the
effect that sales of the Initial Shares may be made without restrictions.

      10. SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS AND
REMEDIES. Except as specifically provided otherwise herein, all representations,
warranties, covenants, agreements and remedies of the parties hereto, shall
survive the date hereof.

      11. ENTIRE AGREEMENT. This Agreement constitutes the entire understanding
and agreement between the parties hereto with respect to the transactions
contemplated herein, supersedes all prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written, of the
parties, and there have been no warranties, representations or promises, written
or oral, made by any of the parties hereto except as herein expressly set forth
herein.

      12. BINDING AGREEMENT. This Agreement shall be binding upon and inure to
the benefit of the parties hereto, as well as their respective heirs, personal
representatives, successors and assigns but no party may assign its obligations
hereunder.

      13. GOVERNING LAW. This Agreement shall be construed in accordance with
and shall be governed by the laws of the Commonwealth of Pennsylvania without
regard to its conflicts of law rules.

      14. COUNTERPARTS. This Agreement may be executed in counterparts, each of
which shall constitute an original and which together shall constitute a single
agreement.

      15. 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 or the
validity or enforceability of this Agreement in any other jurisdiction.
<PAGE>   6
      IN WITNESS WHEREOF, each of the undersigned, intending to be legally bound
hereby, has executed this Subscription Agreement as of the date set forth above.

                                    /s/ Gerald Holtz
                                    ---------------------------------------
                                    GERALD N. HOLTZ

                                    RED BELL BREWING COMPANY

                                    By:   /s/  James R. Bell
                                       ------------------------------------
                                          James R. Bell, President

                                    /s/ James R. Bell
                                    ---------------------------------------
                                    JAMES R. BELL

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]