Document:

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                                                                  EXECUTION COPY

                            ASSET PURCHASE AGREEMENT

         THIS AMENDMENT NO. 1 TO THE ASSET PURCHASE AGREEMENT, dated as of April
__, 2002 (the "Amendment") among Tilia International, Inc., a Cook Islands
corporation ("TILIA"), Tilia, Inc., a California corporation ("TILIA U.S.") and
Tilia Canada, Inc., a corporation organized under the Canada Business
Corporation Act ("TILIA CANADA") (Tilia, Tilia U.S. and Tilia Canada are
collectively referred to herein as the "SELLERS", and each individually, a
"SELLER"), Alexander Schilling (the "SELLERS' REPRESENTATIVE") and Alltrista
Corporation, a Delaware corporation (the "BUYER").

                              W I T N E S S E T H:

         WHEREAS, the Buyer, Sellers and Sellers' Representative entered into an
Asset Purchase Agreement, dated as of March 27, 2002 (the "PURCHASE AGREEMENT")
whereby the Buyer will purchase substantially all of the assets of the Sellers'
Business; and

         WHEREAS, each of the parties wishes to amend the Purchase Agreement, as
set forth herein.

         NOW, THEREFORE, in consideration of the foregoing and the respective
covenants and agreements hereinafter contained, the parties hereto hereby agree
that the Purchase Agreement shall be amended in the manner and effective upon
the terms and conditions set forth below:

         Capitalized terms used herein, unless otherwise defined, shall have the
meanings ascribed to them in the Purchase Agreement.

         1. Section 1. The definitions of "Assignment and Assumption Agreement",
"Patent Assignment Agreement", "Purchased Property" and "Trademark Assignment
Agreement" in Section 1 of the Purchase Agreement are hereby amended and
restated in their entirety as follows:

         "ASSIGNMENT AND ASSUMPTION AGREEMENT" means those several Bill of Sale,
Assignment and Assumption Agreements to be executed at Closing to effect the
transfer of the Purchased Property (except to the extent any portion of the
Purchased Property is transferred pursuant to a Trademark Assignment Agreement,
Patent Assignment Agreement or Domain Name Assignment Agreement) and the
assumption of the Assumed Liabilities, in substantially the form attached hereto
as EXHIBIT A;

         "PATENT ASSIGNMENT AGREEMENT" means those several agreements,
substantially in the form attached hereto as EXHIBIT E, pursuant to which the
Sellers will, on the Closing Date, sell and assign all of their right, title and
interest in and to the Patents to the Buyer;

         "PURCHASED PROPERTY" means:

              (i) the Inventory;

              (ii) the Equipment and Machinery;

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              (iii) the Assigned Contracts;

              (iv) the Accounts Receivable;

              (v) Cash and Cash Equivalents, excluding (i) any Cash and Cash
    Equivalents received by the Sellers pursuant to Section 3 hereof, (ii) any
    Cash received by the Sellers pursuant to the exercise of any options to
    purchase shares of common stock of Tilia after February 1, 2002, and (iii)
    an amount of Cash equal to the remaining rent owed in respect of the Howard
    Street Lease (such excluded Cash and Cash Equivalents, collectively the
    "EXCLUDED CASH");

              (vi) the Intellectual Property;

              (vii) the Files and Records;

              (viii) the Permits;

              (ix) any prepaid expenses with respect to the Purchased Property
    or the Business; and

              (x) the Intangible Property.

         Purchased Property shall not include (i) any deferred tax assets or
refunds with respect to Taxes not reflected on the Financial Statements or that
constitute Excluded Liabilities; (ii) shares of capital stock of Tilia US and
Tilia Canada; (iii) any distributions of Purchase Price proceeds; (iv) assets
not enumerated in items (i) through (x) above; (v) any rights under this
Agreement or under any other agreement between Sellers and Buyer entered into on
or after the Closing Date; (vi) the bank account held at J.P. Morgan
International Bank Limited located in Hong Kong, which immediately prior to the
Closing shall have a Cash balance of no more than $100; (vii) the bank account
held at Union Bank of California located in California, which immediately prior
to the Closing shall have a Cash balance of no more than $100; (viii) the bank
account held at CIBC Oppenheimer located in Canada, which immediately prior to
the Closing shall have a Cash balance of no more than $100; and (ix) any
Excluded Cash held in the bank accounts described in (vi) through (viii) of this
paragraph;

         "TRADEMARK ASSIGNMENT AGREEMENT" means those several agreements,
substantially in the form attached hereto as EXHIBIT F, pursuant to which the
Sellers will, on the Closing Date, sell and assign all of its right, title and
interest in and to the Trademarks to the Buyer;

         2. Section 8.4(c). Section 8.4(c) of the Purchase Agreement is hereby
amended and restated in its entirety and Section 8.4(d) is hereby added at the
end of Section 8.4(c) as follows:

         (c) In the event of a Change of Control, the Buyer shall, at or prior
to the date of such Change of Control fund the Contingent Consideration (less
any amounts claimed by the Buyer under Section 13 hereof) into an escrow account
for payment of the Contingent Consideration to the Sellers (or their assignees),
which amount shall be cash equal to the amount

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of the Aggregate Consideration received in connection with the Change of Control
in excess of $160,000,000, such excess amount not to exceed $25,000,000 (the
"Funded Amount"). If the employment of any two of the persons listed on Schedule
8.4 hereto (or the Replacements of such persons) is terminated in connection
with such Change of Control or within ninety (90) days following such Change of
Control for any reason other than the voluntary termination by the employee,
then the Funded Amount (less any amounts claimed by the Buyer under Section 13
hereof), shall be paid to Tilia or its assigns or designees on the date of
termination of the second such employee to be terminated. The Sellers hereby
acknowledge that the Contingent Consideration may be funded into an escrow
account pursuant to this Section 8.4(c) only if (A) both before and after the
Contingent Consideration would be paid, the Buyer is in pro forma compliance
with the Senior Credit Facility, and (B) after the Contingent Consideration is
paid, the Buyer would have availability under the revolving credit portion of
the Senior Credit Facility of not less than $20,000,000. If the Buyer is unable
to fund the Contingent Consideration (less any amounts claimed by the Buyer
under Section 13 hereof) into an escrow account because of its failure to
satisfy the conditions in the preceding sentence relating to the Senior Credit
Facility, then the Buyer and the Sellers agree that the Buyer shall fund into an
escrow account that amount of such Contingent Consideration in cash to the
extent permissible under the Senior Credit Facility.

         (d) For the purposes of Section 8.4(c) the following terms shall have
the following meanings

         A. "AGGREGATE CONSIDERATION" shall mean the amount that is equal to the
value of consideration received in such Change of Control including any amount
of any debt assumed, acquired, remaining, outstanding, retired or defeased in
connection with such Change of Control, and any noncompete payments, and in the
case of a Change of Control resulting from the adoption of a plan relating to
the liquidation or dissolution of the Buyer, the aggregate value of the
outstanding stock of the Buyer. Amounts paid into escrow and deferred payments
in connection with a Change of Control will be included as part of the Aggregate
Consideration. Deferred payments will be valued at their net present value.

         B. "CAUSE" shall mean any one or more of the following occurrences: (i)
the employee's conviction by, or entry of a plea of guilty or nolo contendere
in, a court of competent and final jurisdiction for any crime which constitutes
a felony in the jurisdiction involved; or (ii) the employee's commission of an
act of fraud or misappropriation of funds or property, whether prior to or
subsequent to the date hereof, upon the Buyer or an Affiliate of the Buyer; or
(iii) gross negligence by the employee in the scope of the employment of such
employee resulting in a material injury to the Buyer or an Affiliate of the
Buyer, violation by such employee of any duty of loyalty to the Buyer or any
Affiliate of the Buyer resulting in a material injury to the Buyer or an
Affiliate of the Buyer, or any other misconduct on the part of such employee
resulting in a material injury to the Buyer or an Affiliate of the Buyer; or
(iv) breach of any Non Competition Agreement between the employee and the Buyer
or an Affiliate of the Buyer; or (v) employee's willful breach of a material
obligation under the Employment Agreement between the employee and the Buyer or
an Affiliate of the Buyer. Notwithstanding the foregoing, as to clauses (c) and
(d) only, the employee shall not be deemed to have been terminated for Cause
without (i) five (5) days written notice to the employee setting forth the
reasons for the intention of the Buyer or the Affiliate of the Buyer who employs
such employee to terminate for Cause,

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and (ii) an opportunity for the employee, within such five (5) day period, to
cure (if the matter is susceptible to cure).

         C. "CHANGE OF CONTROL" shall mean any of the following transactions
which occurs prior to December 31, 2004: (1) the direct or indirect sale,
transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of the division operating the
Business or the Buyer and its subsidiaries taken as a whole to any "person" (as
that term is used in Section 13(d)(3) of the Securities and Exchange Act of
1934, as amended) other than a Permitted Person; (2) the adoption of a plan
relating to the liquidation or dissolution of the Buyer; or (3) the consummation
of any transaction (including, without limitation, any merger or consolidation)
the result of which is that any "person" (as defined above), other than a
Permitted Person, becomes the beneficial owner, directly or indirectly, of more
than 50% of the voting stock of the Buyer, measured by voting power rather than
number of shares.

         D. "CONSTRUCTIVE TERMINATION" shall mean the employee's voluntary
resignation from employment following the occurrence (without the employee's
express written consent) of any of the following events: (i) an adverse change
of the employee's title, (ii) a significant reduction in the employee's duties,
position or responsibilities, or the removal of the employee from such position
or responsibilities; (iii) requiring the employee to be based at any place
outside a 40-mile radius from employee's current job location; or (iv) a
reduction in the employee's base salary as provided in the employment agreement
between the Buyer or an Affiliate of the Buyer and the employee.

         E. "PERMITTED PERSON" shall mean (i) Martin E. Franklin or Ian Ashken;
(ii) any member of the family of Martin E. Franklin or Ian Ashken; (iii) any
conservatorship, custodianship or decedent's estate of any Person specified in
the foregoing clause (i) or (ii); (iv) any trust established for the benefit of
any Person specified in the foregoing clause (i) or (ii); or (v) any
corporation, limited liability company, partnership or other entity, the
controlling equity interests in which are held by or for the benefit of any one
or more Person specified in the foregoing clause (i) or (ii).

         F. "REPLACEMENT" shall mean those employees who have been hired to
replace any employee listed on Schedule 8.4 in the event that any such listed
employee is terminated by the Buyer or an Affiliate of the Buyer for Cause or
voluntarily terminates his or her employment other than by way of Constructive
Termination.

         3. Schedule 2.4. Schedule 2.4 to the Purchase Agreement is hereby
amended and restated in its entirety and is attached hereto as so amended.

         4. Schedule 2.5. Schedule 2.5 to the Purchase Agreement is hereby
amended and restated in its entirety and is attached hereto as so amended.

         5. Schedule 5.15. Schedule 5.15 to the Purchase Agreement is hereby
amended and restated in its entirety and is attached hereto as so amended.

         6. Schedule 15. Schedule 15 to the Purchase Agreement is hereby amended
and restated in its entirety and is attached hereto as so amended.

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         5. This Amendment shall be effective as if the amendments provided
hereby were included as part of the original Purchase Agreement. Except as
amended hereby, the Purchase Agreement, as amended, shall remain in full force
and effect in accordance with the provisions thereof.

         6. This Amendment may be executed in counterparts, each of which shall
be deemed an original, but all of which shall constitute the same instrument.

         7. All exhibits and schedules hereto and any documents and instruments
delivered pursuant to any provision hereof are expressly made a part of this
Amendment as fully as though completely set forth herein.

         8. Each party shall execute and deliver such further documents and
instruments and shall take such other further actions as may be required to
carry out the intent and purposes of this Amendment.

                            [Signature page follows.]

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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the date
first above written.

                                       TILIA INTERNATIONAL INC.
                                       by Corporate Directors Limited, Director

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

                                       TILIA INC.

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

                                       TILIA CANADA, INC.

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

                                       ALLTRISTA CORPORATION

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

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

                    [AMENDMENT 1 TO ASSET PURCHASE AGEEMENT]<PAGE>

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

                              ALLTRISTA CORPORATION
                            (A Delaware corporation)

Amount: $5,000,000                                                April 24, 2002

                     UNSECURED SUBORDINATED PROMISSORY NOTE

    For value received, ALLTRISTA CORPORATION, a Delaware corporation ("PAYOR"),
with its principal offices at 555 Theodore Fremd Avenue, Suite B302, Rye, New
York 10580, unconditionally promises to pay Tilia International, Inc., a Cook
Islands corporation, or its assigns ("PAYEE"), the principal sum of Five Million
Dollars ($5,000,000). The outstanding principal amount shall be due and payable
on April 24, 2004 (the "MATURITY DATE").

    1. INTEREST. The outstanding principal amount on this Unsecured Subordinated
Promissory Note (this "NOTE") shall bear the same interest rate as the
applicable rate under the Senior Credit Facility at the beginning of each
calendar quarter, whereby such interest shall be added to the outstanding
principal amount at the end of each such calendar quarter and shall bear
interest at the same rate as the principal amount, and such accrued interest
shall be due and payable on the Maturity Date. Notwithstanding the foregoing,
any amount outstanding under this Note shall bear interest from and after the
Maturity Date at the rate of the Senior Subordinated Debt. Any interest on this
Note accruing after the Maturity Date shall accrue and be compounded
semi-annually until the obligation of Payor with respect to the payment of such
interest and principal has been discharged (whether before or after judgment).

    2. PAYMENTS. Subject to the provisions of SECTION 5, Payor may prepay all or
any portion of this Note at any time without penalty. All payments shall be made
to Payee at its offices at, or at such other address as Payee may specify in
writing, and all such payments shall be accompanied by a certificate from an
officer of Payor certifying that Payor is not prohibited from making payments
under Sections 5.2(b)(i) and (ii). All payments received from Payor hereunder
shall be applied first, to the payment of any expenses due to Payee pursuant to
the terms of this Note, and second, to reduce the principal balance hereunder.
Any payments of expenses, principal or interest, if any, shall be made in U.S.
dollars. Notwithstanding the foregoing, and subject to payment under Section 3
hereof, Payor and Payee agree that within two

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(2) business days of the Maturity Date, the principal and any interest accrued
on this Note (subject to any adjustments made to such amounts pursuant to
Section 6 hereof) shall be delivered by Payor in cash to the Escrow Agent under
the Long Term Escrow Agreement.

    3. PREPAYMENT. Payor shall be obligated to prepay this Note and any interest
thereon upon the occurrence of either of the following events: (i) there is a
Change of Control, or (ii) if the Leverage Ratio calculated on a pro forma basis
for any acquisition transaction during the most recent fiscal year is greater
than 3.5 to 1. In the event of either (i) or (ii), immediately prior to the
closing of a transaction or the occurrence of a Change of Control, Payor shall
deliver in cash the principal and interest on this Note accrued as of the date
of such transaction or Change of Control to the Escrow Agent under the Long Term
Escrow Agreement.

    4. PURCHASE AGREEMENT. This Note is issued pursuant to the Asset Purchase
Agreement, dated as of March 27, 2002, among Tilia International, Inc., a Cook
Islands corporation, Tilia, Inc, a California corporation, Tilia Canada, Inc., a
corporation organized under the Canada Business Corporation Act, Alexander
Schilling and Payor (the "PURCHASE AGREEMENT"), and is subject to the provisions
thereof, including, without limitation, Section 13.2(a) of the Purchase
Agreement. Capitalized terms used herein shall the same meanings set forth in
the Purchase Agreement unless otherwise specifically defined herein.

    5. SUBORDINATION. By accepting this Note, Payee expressly agrees to
discharge its obligations under this SECTION 5.

    5.1. AGREEMENT TO SUBORDINATE. Payor and Payee agree that this Note is and
shall be subordinate, to the extent and in the manner hereinafter set forth, in
right of payment to the prior indefeasible cash payment in full of all of
Payor's payment obligations now or hereafter existing in respect of any Senior
Debt, whether for principal, interest (including, without limitation, interest,
accruing after the filing of a petition initiating any proceeding referred to in
SECTION 5.2 hereof whether or not such interest accrues after the filing of such
petition or is an allowed claim in such proceeding), fees, expenses or otherwise
(such payment obligations being the "SENIOR OBLIGATIONS").

    5.2. EVENTS OF SUBORDINATION.

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

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

         (i) in the event any default in the payment of principal of, interest
    or premium, if any, on any Designated Senior Debt occurs and is continuing
    beyond any

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    applicable period of grace in the agreement, indenture or other
    document governing such Designated Senior Debt (a "PAYMENT EVENT OF
    DEFAULT"), or

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

         (iii) Payments on this Note may and shall be resumed (x) in the case of
    a Payment Event of Default, upon the date on which such default is cured or
    waived and (y) in case of a Non-payment Event of Default, the earlier of the
    date on which such Non-payment Event of Default is cured or waived or 179
    days after the date on which the applicable Payment Blockage Notice is
    received unless a Payment Event of Default has occurred and is continuing
    with respect to the applicable Designated Senior Debt. No new period of
    payment blockage may be commenced by a Payment Blockage Notice unless and
    until (i) 360 days have elapsed since the first day of the effectiveness of
    the immediately prior Payment Blockage Notice and (ii) all scheduled
    payments of principal and interest on the Note that have come due have been
    paid in full in cash. No Nonpayment Event of Default that existed or was
    continuing on the date of delivery of any Payment Blockage Notice to Payor
    may be, or may be made, the basis for a subsequent Payment Blockage Notice.

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

    (d) In the event that Payee receives any payment with respect to the Note at
a time when such payment is prohibited by SECTION 5.2 hereof and Payee, has
actual knowledge that such payment is prohibited by SECTION 5.2 hereof, such
payment (the "UNPERMITTED PAYMENT") shall be held by Payee, in trust for the
benefit of the Senior Debt Holders. Upon written request of a Designated Senior
Debt Holder (the "PAYMENT INSTRUCTION NOTICE"), Payee shall deliver the
Unpermitted Payment in trust to the senior most Designated Senior Debt Holder in
accordance with the instructions contained in the Payment Instruction Notice of
such Designated Senior Debt Holder, without regard to any other conflicting
instructions received by Payee. Under no circumstances shall Payee be liable to
Payor or to any Senior Debt Holders, or any other person, (i) for its delivery
to the senior most Designated Senior Debt Holder of any Unpermitted Payment upon
its receipt of a Payment Instruction Notice from a Designated Senior Debt Holder
as provided in this Section 5.2(d), or (ii) for its failure to deliver any
amounts pursuant to this paragraph to any other Designated Senior Debt Holder.
Payee shall not be required to determine the existence of any Senior Debt or the
existence or validity of any Designated Senior Debt Holder, or decide any
questions of law.

    (e) Payor shall promptly notify Payee in writing of any facts known to Payor
that would cause a payment of any amounts under this Note to violate this
SECTION 5.2, but failure to give such notice shall not affect the subordination
of this Note to the Senior Debt as provided in this SECTION 5.2, except as
specifically provided in Section 5.2(m).

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    (f) After all Senior Debt is paid in full and until this Note is paid in
full, Payee shall be subrogated (equally and ratably with the holders of all
Indebtedness of Payor which by its express terms is subordinated to Senior Debt
of Payor to the same extent as the Note is subordinated and which is entitled to
like rights of subrogation) to the rights of Senior Debt Holders to receive
distributions applicable to Senior Debt to the extent that distributions
otherwise payable to Payee have been applied to the payment of Senior Debt. A
distribution made under this SECTION 5.2 to Senior Debt Holders that otherwise
would have been made to Payee is not, as between Payor and Payee, a payment by
Payor on this Note.

    (g) This SECTION 5.2 defines the relative rights of Payee and Senior Debt
Holders. Nothing in this Note shall:

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

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

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

    (h) If Payor fails because of this SECTION 5.2 to pay principal of or
interest on this Note on the due date, the failure is still a Default or Event
of Default.

    (i) No right of any holder of Senior Debt to enforce the subordination of
the Indebtedness evidenced by this Note shall be impaired by any act or failure
to act by Payor or Payee or by the failure of Payor or Payee to comply with the
terms of this Note (subject to Section 5.2(m) hereof.

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

    (k) Upon any payment or distribution of assets of Payor referred to in this
SECTION 5.2, Payee shall be entitled to rely upon any order or decree made by
any court of competent jurisdiction or upon any certificate of a representative
or of the liquidating trustee or agent or other Person making any distribution
to Payee of this Note for the purpose of ascertaining the Persons entitled to
participate in such distribution, the Senior Debt Holders and other Indebtedness
of Payor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this SECTION
5.2.

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

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    (m) Any payment under this Note is permitted and shall not be subject to
Section 5.2(d) hereof, unless such payment is specifically prohibited by Section
5.2(b) hereof and Payee has actual notice of such prohibition.

    5.3. RIGHT OF SETOFF. Subject to the limitations of and compliance with the
provisions set forth in Section 13 of the Purchase Agreement (including, without
limitation, Section 13.2(a) of the Purchase Agreement) and Section 1.4 of the
Indemnity Agreement dated March 27, 2002 between Xeme Capital Corporation, a
Cook Islands corporation and Payor, and notwithstanding the provisions of
SECTION 5 above, if an indemnification claim is made against Sellers under
SECTION 13 of the Purchase Agreement for Buyer Losses and indemnification is
payable to the Buyer in accordance with the terms of Section 13 thereof (the
"INDEMNIFIABLE AMOUNT"), Payor is hereby authorized at any time and from time to
time, to the fullest extent permitted by law, and until the Maturity Date, to
set off and apply any and all such Indemnifiable Amounts against any of and all
the obligations of the Payor under this Note, provided that Payor shall provide
Payee with a minimum of ten (10) days advance written notice to the address set
forth on the signature page hereto (in accordance with the notice provisions of
the Purchase Agreement) of any intended setoff under this Note irrespective of
whether or not Payor shall have made any demand under the Purchase Agreement.
The rights of Payor under this SECTION 5 are in addition to other rights and
remedies (including other rights of setoff) which Payor may have.

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

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

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

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

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    (a) the failure to make any payment of principal or any other amount payable
hereunder when due under this Note (whether or not prohibited by the
subordination provisions of SECTION 5) or the breach of any other condition or
obligation under this Note; or

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

    10. DEFINITIONS.

    10.1. "ASSET SALE" means: (1) the sale, lease, conveyance or other
disposition of any assets or rights, other than sales of inventory and accounts
receivable in the ordinary course of business consistent with past practices;
and (2) the issuance of Equity Interests by any of Payor's Subsidiaries or the
sale of Equity Interests in any of its Subsidiaries. Notwithstanding the
preceding, none of the following items will be deemed to be an Asset Sale: (i)
any single transaction or series of related transactions that involves assets
having a fair market value of less than $1.0 million; (ii) a transfer of assets
between or among Payor and its Subsidiaries, (iii) an issuance of Equity
Interests by a Subsidiary to Payor or to another Subsidiary; (iv) the sale or
lease of equipment, inventory, accounts receivable or other assets in the
ordinary course of business; (v) the sale or other disposition of cash or Cash
Equivalents or Government Securities; (vi) transfers of accounts receivable and
related assets by Payor or any of its Subsidiaries in connection with a
Qualified Receivables Transaction (as defined in the Indenture); and (vii) a
Restricted Payment or Permitted Investment that is permitted under the
Indenture.

    10.2. "BOARD OF DIRECTORS" shall mean the board of directors of Payor.

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

    10.4. "CAPITAL STOCK" means: (1) in the case of a corporation, corporate
stock; (2) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock; (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and (4) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

    10.5. "CHANGE OF CONTROL" means the occurrence of any of the following: (1)
the direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of Payor
and its subsidiaries taken as a whole to any "person" (as that term is used in
Section 13(d)(3) of the Exchange Act) other than a Permitted Holder; (2) the
adoption of a plan relating to the liquidation or dissolution of Payor; or (3)
the consummation of any transaction (including, without limitation, any merger
or consolidation) the result of which is that any "person" (as defined above),
other than a Permitted Holder, becomes the beneficial owner,

                                       6
<PAGE>

directly or indirectly, of more than 50% of the voting stock of Payor, measured
by voting power rather than number of shares.

    10.6. "CONSOLIDATED NET INCOME" means, with respect to Payor for any period,
the aggregate of the Net Income of Payor and its Subsidiaries for such period,
on a consolidated basis, determined in accordance with GAAP; provided that: (1)
the Net Income (but not loss) of any Person that is not a Subsidiary or that is
accounted for by the equity method of accounting will be included only to the
extent of the amount of dividends or distributions paid in cash to the specified
Person or a wholly owned Subsidiary of the Person; (2) the Net Income of any
Subsidiary will be excluded to the extent that the declaration or payment of
dividends or similar distributions by that Subsidiary of that Net Income is not
at the date of determination permitted without any prior governmental approval
(that has not been obtained) or, directly or indirectly, by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary or its
stockholders;

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

    10.8. "DESIGNATED SENIOR DEBT" shall mean (1) any Indebtedness outstanding
under the Senior Credit Facility, (2) any Indebtedness under the Senior
Subordinated Debt, and (3) after payment in full of all Senior Obligations under
the Senior Credit Facility and the Senior Subordinated Debt, any other Senior
Debt permitted under the Indenture the outstanding principal amount of which is
$25 million or more and that has been designated by Payor as "Designated Senior
Debt".

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

    10.10. "EBITDA" shall mean, with respect to Payor for any period, the
Consolidated Net Income of Payor for such period, plus (without duplication):
(1) an amount equal to any extraordinary loss plus any net loss realized by
Payor or any of its Subsidiaries in connection with an Asset Sale, to the extent
such losses were deducted in computing such Consolidated Net Income; (2)
provision for taxes based on income or profits of Payor and its Subsidiaries for
such period, to the extent that such provision for taxes was deducted in
computing such Consolidated Net Income; (3) consolidated interest expense of
Payor and its Subsidiaries for such period, whether paid or accrued and whether
or not capitalized (including, without limitation, amortization of debt issuance
costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations, commissions, discounts and
other fees and charges incurred in respect of letter of credit or bankers'
acceptance financings, and net of the effect of all payments made or received
pursuant to Hedging Obligations), to the extent that any such expense was
deducted in computing such Consolidated Net Income; (4) depreciation,
amortization (including amortization of goodwill and other intangibles but
excluding

                                       7
<PAGE>

amortization of prepaid cash expenses that were paid in a prior period) and
other non-cash expenses (excluding any such non-cash expense to the extent that
it represents an accrual of or reserve for cash expenses in any future period or
amortization of a prepaid cash expense that was paid in a prior period) of Payor
and its Subsidiaries for such period to the extent that such depreciation,
amortization and other non-cash expenses were deducted in computing such
Consolidated Net Income; and (5) the net adjustment of EBITDA to calculate
adjusted EBITDA on a pro forma basis for the year ended December 31, 2001 as
shown in the Offering Memorandum for the Senior Subordinated Debt and any future
pro forma adjustments allowed under the Senior Credit Facility calculation of
Leverage Ratio; minus non-cash items increasing such Consolidated Net Income for
such period, other than any items that represent the reversal of any accrual of,
or cash reserve for, anticipated cash charges in any prior period, in each case,
on a consolidated basis and determined in accordance with GAAP.

    10.11. "EQUITY INTERESTS" means Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

    10.12. "EXCHANGE ACT" means the Securities and Exchange Act of 1934, as
amended.

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

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

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

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

    10.17. "INDEBTEDNESS" shall mean any indebtedness of Payor, whether or not
contingent, (1) in respect of borrowed money; (2) evidenced by bonds, notes,
debentures or similar instruments or letters of credit (or reimbursement
agreements in respect thereof); (3) in respect of banker's acceptances; (4)
representing Capital Lease Obligations; (5) representing the balance deferred
and unpaid of the purchase price of any property, except any such balance that
constitutes an accrued expense or trade payable; or (6) representing any Hedging
Obligations, if and to the extent any of the preceding items (other than letters
of credit and Hedging Obligations) would appear as a liability upon a balance
sheet of Payor prepared in accordance with GAAP. In addition, the term
"INDEBTEDNESS" includes all Indebtedness of others secured by

                                       8
<PAGE>

a Lien on any asset of Payor (whether or not such Indebtedness is assumed by
Payor) and, to the extent not otherwise included, a Guarantee by Payor of any
Indebtedness of any other Person. The amount of any Indebtedness outstanding as
of any date will be: (1) the accreted value of the Indebtedness, in the case of
any Indebtedness issued with original issue discount; (2) the principal amount
of the Indebtedness, together with any interest on the Indebtedness that is more
than 30 days past due, in the case of any other Indebtedness; (3) the lesser of
the Indebtedness and the fair market value of the collateral asset, in the case
of any Indebtedness of others secured by a Lien on any asset of Payor; and (4)
the lesser of the primary Indebtedness and any stated limit on recourse under
the Guarantee, in the case of Indebtedness of others secured by a guarantee of
the specified Person.

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

    10.19. "LEVERAGE RATIO" shall mean with respect to Payor for any period, the
ratio of the Indebtedness of Payor and its Subsidiaries for such period to the
EBITDA of Payor and its Subsidiaries for such period.

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

    10.21. "NET INCOME" means, with respect to Payor, the net income (loss) of
Payor, determined in accordance with GAAP and before any reduction in respect of
preferred stock dividends, excluding, however: (1) any gain (but not loss),
together with any related provision for taxes on such gain (but not loss),
realized in connection with: (a) any Asset Sale; or (b) the disposition of any
securities by Payor or any of its Subsidiaries or the extinguishment of any
Indebtedness of Payor or any of its Subsidiaries; and (2) any extraordinary gain
(but not loss), together with any related provision for taxes on such
extraordinary gain (but not loss).

    10.22. "PERMITTED HOLDER" means (i) Martin E. Franklin or Ian Ashken; (ii)
any member of the Family of Martin E. Franklin or Ian Ashken; (iii) any
conservatorship, custodianship or decedent's estate of any Person specified in
the foregoing clause (i) or (ii); (iv) any trust established for the benefit of
any Person specified in the foregoing clause (i) or (ii); or (v) any
corporation, limited liability company, partnership or other entity, the
controlling equity interests in which are held by or for the benefit of any one
or more Person specified in the foregoing clause (i) or (ii).

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

    10.24. "SENIOR CREDIT FACILITY" shall mean that certain Credit Agreement,
dated as of April 24, 2002, by and among Payor, Bank of America, N.A., as
administrative agent, Banc of

                                       9
<PAGE>

America Securities LLC, as co-lead arranger, and CIBC World Markets Corp., as
co-lead arranger, providing for $50.0 million of term loan borrowings and up to
$50.0 million of revolving credit borrowings, including any related notes,
guarantees, collateral documents, instruments and agreements executed in
connection therewith, and in each case as amended, amended and restated,
supplemented, modified, renewed, refunded, replaced or refinanced from time to
time.

    10.25. "SENIOR DEBT" shall mean: (i) the Senior Credit Facility and the
Senior Subordinated Debt, (ii) other Indebtedness of Payor permitted to be
incurred under the terms of the Indenture that is specifically identified in the
terms of such Indebtedness to rank in parity or senior to the Senior
Subordinated Debt, and (iii) all Senior Obligations with respect to the items
listed in the preceding clauses (i) and (ii). Notwithstanding anything to the
contrary in the preceding, Senior Debt shall not include: (i) any intercompany
Indebtedness of Payor or any of its subsidiaries to Payor or any of its
Affiliates, (ii) any liability for federal, state, local or other taxes owed or
owing, (iii) any trade payables, (iv) the portion of any Indebtedness that is
incurred in violation of the terms of any Senior Debt or (v) Indebtedness which,
when incurred and without respect to any election under Section 1111(b) of Title
11, United States Code, is without recourse to Payor or any Guarantor. 10.26.
"SENIOR DEBT HOLDERS" shall mean the beneficial owners of Senior Debt and shall
include any representatives thereof, including, but not limited to, in the case
of an indenture, the trustee under such indenture, or in the case of a credit
facility, the agent of the lender.

    10.27. "SENIOR OBLIGATIONS" shall have the meaning set forth in Section 5.1
hereof.

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

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

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

                                       10
<PAGE>

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

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

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

                                       ALLTRISTA CORPORATION

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

                                       11

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