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|   | I.     | PRODUCTION |
|--------|--------|------------|
|   |   |       |   |   |
|   |   | (a)        | Territory      Requirements.  Subject to the provisions of Article II      and the other terms and conditions of this Agreement, The Lion shall brew,      produce, bottle and package and Reed’s shall purchase from The Lion, all      of the “Territory      Requirements” (as hereinafter defined) during the Term (as defined      in Article VII hereof).  The “Territory”      shall mean all of the United States east of the Mississippi River, and for      the avoidance of doubt shall include Puerto Rico and all of      Minnesota.  The “Territory      Requirements” shall mean all Products that are to be directly sold,      shipped or delivered to Reed’s direct customers at delivery points located      in the Territory.  Reed’s obligation to purchase the Territory      Requirements solely from The Lion during the Term is absolute and      unconditional, subject only to the provisions of Sections I(d)(3),      VIII(a), and XIII(c). |

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|   |   | (b)    | Right of      Refusal.  Should Reed’s intend to market other soda      products, or any soda Product in other packaging or configurations not      covered by this Agreement, in the Territory, Reed’s shall so notify The      Lion in writing before beginning production itself or entering into any      discussions with others to produce them. If The Lion at that time would be      capable of producing or packaging such soda product, at matching or better      prices and terms (considering prices and terms together as a whole) for a      period of thirty (30) days from the date of such notice, Reed’s and The      Lion shall use good faith efforts to reach an agreement under which The      Lion would have the exclusive right to produce the foregoing soda      products, either under this Agreement or under a separate      agreement.  Reed’s shall afford The Lion the same exclusive      prior right to negotiate for additional services related to beverage      products not covered by this Agreement before contracting with other      parties therefor. |
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|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | (c)    | Trademark      Use.  Reed’s grants to The Lion the limited right to use      the trademarks and trade names listed on Exhibit “A”      (collectively, the “Trademarks”)      solely for purposes of producing and bottling of the      Products.  This right is limited in duration to the      Term.  Reed’s agrees to furnish The Lion in writing with all      formulations, process descriptions, packaging specifications and related      technical information necessary for the fulfillment of this      Agreement.  This information shall be treated in accordance with      Article IX hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | (d)    | Product Quality      Covenants.  In order to preserve the value and reputation      of the Trademarks and to assure that the Products will be of highest      quality and uniformity, The Lion agrees that it shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   |   |   | (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Comply with all      applicable laws, regulations and ordinances pertaining to the operation of      the Plant.  It shall maintain the Plant in a clean and sanitary      condition consistent with “good manufacturing practices.” |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   |   |   | (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Grant an authorized      person of Reed’s the right to be present during any production run of the      Products.  An authorized person of Reed’s shall also have the      right, during regular business hours and upon reasonable notice, to      inspect the Plant.  Such access shall be subject to Reed’s and      its agent’s compliance with all of The Lion’s reasonable rules and      policies regarding on-site visits, including execution of a Plant Visitor      Agreement in the form of Annex “I”      attached hereto.  Reed’s shall be responsible for      assuring the compliance therewith by any employee or other representative      of Reed’s and shall be responsible to The Lion for any violation thereof      by such persons. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   |   |   | (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Discuss and review      in good faith with Reed’s any quality control standards required by Reed’s      customers, such as Cracker Barrel, Harry & David, Wal-Mart, or      Target.  Reed’s shall provide The Lion with all such      requirements in writing (“Customer QC Standards”) at least three (3)      months in advance of the date when Reed’s needs them to take      effect.  If meeting Customer QC Standards would require The Lion      to acquire or modify equipment, adjust processes, or incur additional      labor or other costs, The Lion shall so advise Reed’s of any changes in      the Co-packing Fee (as defined in Exhibit B) or      capital costs that would be necessary.  If Reed’s and The Lion      agree on such costs, The Lion shall implement the changes necessary to      meet the Customer QC Standards as soon as is commercially reasonable, with      due regard to the customer’s needs.  If Reed’s and The Lion do      not reach agreement regarding such increased costs, Reed’s may have the      relevant Products brewed, produced, bottled and packaged at another      production facility other than The Lion, to the extent necessary to serve      the particular customer(s) requiring such quality control    standards. |

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|   |   | (e)    | Reed’s Instructions      and Standards.  The Products shall be manufactured,      brewed and packaged in accordance with the written instructions of Reed’s,      including the maintenance of standards and quality control programs      furnished to The Lion in writing by Reed’s and, if applicable under the      preceding Section I(d)(3), the Customer QC Standards.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | (f)    | Changes in Formula,      etc.  Reed’s shall have the right to change ingredients      and/or brewing formulae and procedures upon reasonable prior written      notice to The Lion, provided that (1) the cost of any such change shall be      borne by Reed’s and (2) the specified ingredients are readily available in      the necessary time frame.  Reed’s shall have ultimate      responsibility and authority over every detail of the production process      for the Products, with such responsibility and authority as to those      parameters affecting taste and quality to be the same as if Reed’s were      the owner of The Lion's brewing facility at the Plant.  To the      extent lawful and practicable, The Lion and Reed’s will, in any and all      public statements or comments, recognize that Reed’s controls the      ingredients, recipe, brewing processes and procedures and quality      parameters for all Products produced for Reed’s by The      Lion.  Neither Party will make any public statements      inconsistent with the foregoing.  Reed’s agrees and acknowledges      that The Lion’s historical practices and production quality under the      Prior Agreement have been proper and sufficient, and absent changes in      applicable laws or mutually agreeable changes therein (including Customer      QC Standards accepted by The Lion), shall be deemed to comply with this      Agreement in all respects.  If a decision made by Reed’s in the      exercise of its authority under this Section 1(f) results in a change by      The Lion in any process or quality control, The Lion shall have the right      to adjust the Copacking Fee accordingly. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | (g)    | Identification      Codes.  In order to assure quality control, The Lion      shall apply an identification code on each case and bottle indicating      whatever data Reed’s reasonably requires and an “L” in front of the      bottling time on line 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | (h)    | The Lion’ s      Insurance.  The Lion shall maintain at all times, in full      force and effect for the benefit of Reed’s as an additional insured and      itself, general liability insurance coverage, applicable to the Products,      including broad form vendor’s coverage and product liability insurance in      an amount not less than Two Million ($2,000,000.00)      Dollars.  The Lion shall furnish Reed’s with a certificate of      insurance evidencing that it has such insurance coverage upon the      execution of this Agreement and furnish Reed’s with evidence of such      insurance coverage on an annual basis thereafter.  Such policy      shall provide that it cannot be changed or cancelled without at least      thirty (30) days’ prior written notice to Reed’s and The Lion agrees to      provide such notice to Reed’s before seeking to change or cancel such      insurance policy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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|   |   | (i)                        | Reed’s      Insurance.  Reed’s shall maintain at all times, in full      force and effect for the benefit of The Lion as an additional insured and      itself, general liability insurance coverage, applicable to the Products,      including broad form vendor’s coverage and product liability insurance in      an amount not less than Two Million ($2,000,000.00)      Dollars.  Reed’s shall furnish The Lion with a certificate of      insurance evidencing that it has such insurance coverage upon the      execution of this Agreement and furnish The Lion with evidence of such      insurance coverage on an annual basis thereafter.  Such policy      shall provide that it cannot be changed or cancelled without at least      thirty (30) days’ prior written notice to The Lion and Reed’s agrees to      provide such notice to The Lion before seeking to change or cancel such      insurance policy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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|   |   |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | II.    | PRODUCTION      SCHEDULING |
|   |   |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   |   | (a)                        | Lead      Times.  Reed’s shall submit written orders for Products      at least four (4) weeks prior to required packaging date.  The      Lion will package the Products within four (4) weeks of the receipt of      such order, assuming all materials are on hand to produce one (1) week      before production, and The Lion shall use reasonable and good faith      efforts to ensure that all materials necessary to brew, produce, bottle      and package the Products are on hand.  This includes the      materials that are the responsibility of Reed’s to have the same delivered      to The Lion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | (b)                        | Delivery of Products      to Warehouse.  All Products shall be loaded and delivered      to a public warehouse (in Wilkes-Barre, Pennsylvania if available) at the      completion of production, with the cost of shipping the Products to such      warehouse in Wilkes-Barre to be borne exclusively by The      Lion.  Reed’s shall bear all warehousing and storage costs for      completed Products, and should appropriate public warehousing in      Wilkes-Barre be unavailable, Reed’s shall bear the additional cost of      shipping to such other warehouses as are available.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | (c)                        | The Lion’s Production      of Other Products.  Reed’s acknowledges that The Lion is      currently in the business of producing various products that are similar      to and may compete with the Products.  Nothing in this Agreement      shall prevent The Lion from continuing or expanding its own business and      producing or selling any product for or to any person, provided that The      Lion shall not copy the brewing formula for the Products or use any      ingredients supplied to The Lion by Reed’s to produce products for itself      or third parties without Reed’s prior written consent, which consent may      be withheld in Reed’s sole discretion.  The Lion shall not      produce any beverage brewed directly from fresh or raw ginger for itself      or any other person at any time during the Term or for a period of      ninety-nine (99) years after its expiration or termination without Reed’s      prior written consent, which consent may be withheld in Reed’s sole      discretion, even if such brewing would not involve use of Reed’s      Confidential Information (as defined in Article IX).  All of the      Products produced by The Lion, including all work in process, shall be      produced solely for the benefit of Reed’s and used for no other      purpose.  In the exercise of its authority under Articles I and      II, Reed’s shall not interfere with The Lion's production process for its      own proprietary brands and products or the production of products for      others. |

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|   | III.   | BREWING      AND PACKAGING MATERIALS |
|--------|--------|--------------------------------------|
|   |   |                                 |   |   |
|   |   | (a)                                  | Reed’s      Responsibility.  Reed’s shall supply all flavorings and      other similar ingredients, and shall supply (or reimburse The Lion in      accordance with Section IV(b) for) all barrels, kegs, half-kegs,      sixth-kegs, and other similar larger-than-bottle-size containers, and all      proprietary and other packaging, including crowns, basket carriers,      labels, corrugated stock, partitions, multipacks and other shipping and      handling materials. |
|   |   |                                 |   |
|   |   | (b)                                  | The Lion’s      Responsibility.  The Lion shall supply and maintain on      hand a sufficient supply of brewing and packaging materials required that      are not supplied by Reed’s to manufacture the Products and fill orders,      including bottles.  The Lion shall use commercially reasonable      efforts to supply recycled bottles to the extent practicable. The Lion      will include reasonable data in its monthly invoices so that Reed’s may      see what volume of recycled and new bottles was used.  The Lion      will give Reed’s priority with regard to recycled amber flint and recycled      green bottles in the following manner:  if The Lion has recycled      amber flint and green bottles on hand when Reed’s places orders, The Lion      will use such recycled bottles first to process Reed’s order before using      them to process other orders for other customers. |
|   |   |                                 |   |
|   |   | (c)                                  | Shortage of Recycled      Bottles.  Should The Lion at any time become unable to      supply at least 70% of Reed’s requirements of amber glass using recycled      bottles (calculated each month by reference to the past 12 months rolling      monthly average), and such shortage in and of itself has a material      adverse effect on Reed’s, The Lion shall notify Reed’s and Reed’s shall      have the right by written notice to require The Lion to renegotiate the      Base Co-packing Fee (as defined in Exhibit      “B”).  Should the Parties, after negotiating over a      period of ninety (90) days in good faith, be unable to agree as to the      revised Base Co-packing Fee, Reed’s may terminate this Agreement upon a      further ninety (90) days’ written notice to The Lion, without further      liability to each party other than obligations theretofore    accrued. |
|   |   |                                 |   |
|   |   | (d)                                  | Packaging      Forms.  The Lion shall package the Products in the      particular forms and packaging styles described in Exhibit      “B”. |
|   |   |                                 |   |
|   |   | (e)                                  | Shrinkage.  The      Lion recognizes its responsibility to use packaging and ingredients      supplied by Reed’s wisely and efficiently.  Further, both      Parties recognize that the supply chain for ingredients includes multiple      parties, such as Reed’s and its suppliers, and their respective ordering      and fulfillment systems, and that, at the present time, the Parties may      not have sufficient information and systems to determine actual and      optimal shrinkage levels with sufficient      precision.  Accordingly, within ninety (90) days of execution of      this Agreement, The Parties shall cause their representatives to meet and      use commercially reasonable efforts to institute (i) a yield tracking      system  which will allow them to identify the actual causes and      rates of shrinkage, and (ii) processes that will assure that average      shrinkage rates are 3% or less for packaging and 8% or less for      ingredients. Each Party shall provide all necessary information in its      possession in furtherance of this goal. |

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|   |                                                                              | (f)                                              | Product      Recalls.  In case of any Product recall, the Parties      shall promptly confer regarding the proposed response and any costs and      keep each other informed as to all material developments and actions      requested and required.  The Lion shall have the right to manage      the process and control all material decisions whenever it is subjected to      a claim or demand that The Lion bear responsibility for the recall and any      costs thereof.  Any liability with respect to recalls shall be      governed by the provisions of Article XI and Article XII.                                                                                                                                                                                                                                                                                            |
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|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | IV.                                                                               | PRICE/PAYMENT                                    |
|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   |                                                                              | (a)                                              | Co-packing      Fee.  Reed’s hereby agrees to pay The Lion a      brewing/co-packing fee (the “Co-packing      Fee”) for all Products ordered by Reed’s and processed by The Lion      as set forth in Exhibit “B.”      The Co-packing Fee shall be subject to the adjustments set forth in Exhibit “B” and      except as expressly provided in this Agreement shall be in addition to all      other payments required hereunder and thereunder.  All      Co-packing Fees shall be paid within thirty (30) days of    production.                                                                                                                                                                                                                                                                                                                  |
|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   |                                                                              | (b)                                              | Pass-Through.  In      addition to the Co-packing Fees, Reed’s will be invoiced for ingredients,      packaging and shipping materials supplied by The Lion, at The Lion’s      invoice cost, and for all recycled glass bottles at the price set forth in      Exhibit      “B”, for all Products ordered by Reed’s and processed by The Lion      as set forth in Exhibit      “B.”  All such pass-through payments shall be paid within      thirty (30) days of production.                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                              | (c)                                              | Shortfall      Payment.  If for any period, Reed’s fails to meet its      obligation to purchase the entirety of the Territory Requirements from The      Lion, for any reason other than (i) The Lion’s inability or refusal to      supply Products conforming to this Agreement (including on account of      Force Majeure, as referred to in Section XIII(c)), or (ii) Reed’s exercise      of its right to have Products brewed, produced, bottled and packaged at      another production facility other than The Lion as set forth in Section      I(d)(3) then, without prejudice to The Lion’s other rights, Reed’s shall      pay The Lion an amount equal to the applicable Co-packing Fee for the      Products that Reed’s was obligated to (but did not) purchase from The Lion      during the applicable period (the “Shortfall      Payment”). |
|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                              | (d)                                              | Taxes,      etc.  The Co-packing Fee and all other amounts due      hereunder shall be exclusive of any and all federal, state, or local sales      use and other taxes, excises, duties, and similar government impositions      now or hereafter in effect with respect to the production, sale,      transportation, use or consumption of the Products or any packaging      materials or other goods used or provided hereunder, all of which shall be      born by Reed’s, excepting only taxes with respect to The Lion’s income,      profits, assets, or franchises.                                                                                                                                                                                                                                                                                                                        |
|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   | V.                                                                                | REED’S      REPRESENTATION AND WARRANTIES. |
|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   | Reed’s makes the      following representations and warranties to The Lion: |
|   |                                                                              |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   |                                                                              | (a)                                              | Infringement,      etc.  No Trademark, tradename or design used on the      Products and specified by Reed’s, and no recipe, formulation, technology      or process provided, specified by Reed’s for use in producing the      Products, shall infringe upon or misappropriate any trademark, patent,      copyright, trade secret or other proprietary right of any third      party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | No      Conflicts.  The execution, delivery and performance of      this Agreement will not violate, conflict with, constitute, or result in      any default or event of default under any contract, loan document,      commitment, arrangement, understanding, judgement, decree or law to which      Reed’s is a party or by which Reed’s or any of its business or assets are      bound.                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   | VI.    | RECORDS      AND AUDIT RIGHTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Records and      Audits.  Each Party shall maintain accurate and complete      books and records with respect to its transactions hereunder, and shall      keep them available for inspection, auditing and copying (collectively, an      “Audit”)      by the other Party or its representatives at all times during normal      business hours upon reasonable advance notice for at least two (2) years      after the expiration or termination of the Term.  Audits shall      be no more frequent than twice annually (unless a Party has reasonable      cause for concern as to whether the other is in compliance with its      obligations hereunder) and shall be limited to those books and records      required to confirm compliance with the subject Party’s obligations      hereunder. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Audit      Expenses.  All Audits shall be at the expense of the      requesting Party, unless the Audit reveals that the subject Party was      overpaid (or had underpaid the requesting Party, as applicable) by more      than 3.5% of the correct amount, or when the subject Party is Reed’s, it      had purchased less than 96.5% of what it was obligated to purchase under      this Agreement, in which case the subject Party shall bear all reasonable      costs of the Audit, in addition to whatever adjustments, reimbursements or      credits are necessary to correct the inaccuracy or instance of      noncompliance, and in addition to any Shortfall Payment.                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   | VII.   | TERM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   |   | This      Agreement shall be for an initial term of three (3) years beginning as of      the Effective Date and ending three (3) years from that      date.  Reed’s shall have the option to extend the Term by one      additional year by providing written notice at least thirty (30) days      before the end of the initial three (3) year term.  The Parties      may mutually agree in writing to extend the Term (in addition to Reed’s      one-year option), in their sole discretion.  “Term” as used      herein, shall mean the original three-year term and any such      extensions. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   | VIII.  | TERMINATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Termination by      Reed's. In the event The      Lion shall fail to perform any of its obligations under this Agreement      (other than on account of force majeure or a breach hereof by Reed’s) and      such failure is not corrected within thirty (30) days after date of      written notice to The Lion specifying the nature of such failure, Reed’s      may give further notice to The Lion terminating this Agreement effective      as of the date of such further notice.  Reed’s shall also have      the right to terminate this Agreement in accordance with Section      III(c).                                                                                                                                                                                                             |

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|   |   | (b)                                         | Termination by The      Lion. In the event Reed’s shall fail to perform any of its obligations      under this Agreement (other than on account of Force Majeure or a breach      hereof by The Lion), The Lion may notify Reed’s in writing of such      determination.  If Reed’s failure relates to moneys owed, Reed’s      shall have ten (10) days in which to remedy the failure, but otherwise      Reed’s shall have thirty (30) days within which to remedy the      failure.  If Reed’s refuses to or fails to remedy the failure      within the time allowed, The Lion may give further notice to Reed’s      terminating this Agreement effective as of the date of such further      notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|   |   |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |   | (c)                                         | Following      Termination Upon termination:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |   |                                        | (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The Lion will      immediately cease all production of Products, but may in its discretion      complete any batches then in process. |
|   |   |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |   |                                        | (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | All obligations of      either Party shall be adjusted up to and including the date of termination      provided, however, that upon termination, Reed’s shall purchase at the      applicable purchase price, all Products and all packaging which comply      with the agreed-upon specifications and which are in storage or in process      at the Plant or any warehouse. |
|   |   |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |   |                                        | (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The Lion will return      all unused packaging materials that Reed’s had purchased for production      use.  Reed’s shall purchase at cost any unused packaging      materials The Lion had purchased specifically for production of the      Products, which The Lion cannot use in or for its other products (not      under this Agreement).  The Lion shall return all equipment      owned by Reed’s and each Party shall return all Confidential Information      (as defined in the following Article) and materials that are the property      of the other Party. |
|   |   |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   | IX.    | CONFIDENTIALITY      AND PROPRIETARY RIGHTS |
|   |   |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |   | (a)                                         | Definitions.  As      used herein, the term “Confidential      Information” shall be defined as marketing and other information      such as customer lists, price lists, pricing policies, marketing and      business plans, information regarding customers’ needs or requirements,      and arrangements with customers, consultants, licensees, and suppliers,      and shall be deemed to include any confidential, proprietary, trade      secret, technical or business information disclosed by one Party (the      “Disclosing      Party”) to the other Party (the “Receiving      Party”), and includes formulations, processes, long-range and      current strategic plans, operating results, earnings, costs of operation,      accounts, products, product design, engineering and technical information,      test data, product and material costs, policies, practices,      correspondence, procedures, methods, manuals, records, information      regarding projects and current and prospective employees, contractors,      suppliers, customers, contracts and business arrangements, and trade      secrets that the Receiving Party may obtain by participation, observation,      examination or otherwise.  The Trademarks, and all of Reed’s      formulations, process descriptions, packaging specifications and related      technical information provided by Reed’s shall be Reed’s Confidential      Information. |

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|   |   | (b)    | Obligations. |
|--------|--------|--------|--------------|
|   |   |   |         |   |
|   |   |   | (1)          | All Confidential      Information disclosed, provided or delivered or made available in      connection with the performance of this Agreement is confidential and the      property of the Disclosing Party, shall be held in strict confidence by      the Receiving Party, and shall not be disclosed or disseminated to, or      discussed with, any person other than the Receiving Party or used in any      manner other than to perform this Agreement.  Each Party      receiving the other’s Confidential Information shall take all commercially      reasonable steps necessary to prevent any such disclosure or improper use      by its employees, officers, directors, representatives or      agents.  Each Receiving Party agrees to promptly return (upon      request at any time during the Term and forthwith upon the termination or      expiration of this Agreement) all the Disclosing Party’s Confidential      Information and shall not retain any copies, extracts or memoranda      therefrom.  The Lion shall use commercially reasonable efforts      to procure written agreements from its brew masters in customary form in      which they agree to honor Reed’s rights with regard to Confidential      Information and agree that Reed’s may enforce such agreements directly      against them.  If The Lion cannot obtain such contractual      agreements from its brew masters, The Lion and Reed’s shall cooperate to      enforce such rights as may exist under applicable law or otherwise against      the brew masters. |
|   |   |   |         |   |
|   |   |   | (2)          | Notwithstanding that      recipes and formulations may be provided by Reed’s and may be Reed’s      Confidential Information, all brewing processes in use by The Lion at any      time that were not provided by Reed’s shall be the Confidential      Information of The Lion and/or its brew masters, and shall not be subject      to disclosure to Reed’s or its customers except as required by applicable      law, and Reed’s shall have no right thereto.  Any processes that      are or could be utilized by The Lion for production of any product other      than the Products made using Reed’s recipes or formulations, or that are      at any time conceived or developed by The Lion independently, shall be the      intellectual property and Confidential Information of The      Lion.  Each Party shall be free to use, disclose, transfer,      license and otherwise deal with all such publicly available information      and all of its own intellectual property without restriction except as      expressly provided in this Agreement. |
|   |   |   |         |   |
|   |   |   | (3)          | Because of the      unique nature of the Confidential Information and the rights of the      Disclosing Party hereunder, the Receiving Party understands and agrees      that the Disclosing Party will suffer irreparable harm in the event the      Receiving Party fails to comply with its obligations under this Agreement      regarding Confidential Information, and that monetary damages will be      inadequate to compensate the Disclosing Party for such breach.  In      the event of a breach or threatened breach by the Receiving Party of the      provisions of this Agreement relating to Confidential Information, the      Disclosing Party shall be entitled to an injunction restraining the      Receiving Party from violating the terms hereof, or from using or      disclosing any Confidential Information of the Disclosing Party.       Nothing herein shall be construed as prohibiting the Disclosing Party from      pursuing any other remedies available to it for such breach or threatened      breach of this Agreement including recovery of damages from The      Lion. |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (c)             | Exceptions.  “Confidential      Information” does not include information which:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            | (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | was already in the      Receiving Party’s possession at the time of disclosure hereunder, provided      that such information has not been obtained from the Disclosing Party and      that such possession can be demonstrated by the Receiving Party’s written      records; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            | (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | is, or becomes,      generally available to the public, through, for example, such sources as      patents or other generally circulated publications, and such availability      to the public does not result from any fault of the Receiving    Party; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            | (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | is received by the      Receiving Party in written form from a third party having no obligation to      the Disclosing Party to keep it confidential; or |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            | (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | is independently      developed by the Receiving Party provided that such development can be      demonstrated by the Receiving Party’s written records. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   | Specific technical      and business information shall not be deemed to be within the exceptions      of the preceding sentence merely because it is embraced by more general      technical or business information within such exceptions, nor shall a      combination of features be deemed to be within such exceptions merely      because the individual features are within such exceptions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (d)             | Mandatory      Disclosures.  A Receiving Party shall be free to disclose      any information required pursuant to applicable laws, regulations, court      orders, or subpoenas, so long as it advises the Disclosing Party as soon      as reasonably practicable, to allow the Disclosing party to contest such      requirement by appropriate means or take other appropriate measures to      protect its legitimate rights.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   | X.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | NO      AGENCY  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   | The      Lion and Reed’s understand and agree that neither Party is, by virtue of      this Agreement or anything contained herein, including The Lion affixing      any label to any Product, constituted or appointed the agent of the other      Party for any purpose whatsoever, nor shall anything herein contained be      deemed or construed as granting Reed’s or The Lion any right or authority      to assume or to create any obligation or responsibility, express or      implied, for or on behalf of or in the name of the other, or to bind the      other in any manner or way whatsoever.  The relationship between      the Parties is solely of independent contractors, as set forth in this      Agreement, and no representation or warranty shall be made by either Party      to any third person or Party to the contrary.  There are no      third party beneficiaries of any rights hereunder. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   | XI.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | INDEMNIFICATION |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (a)             | By The      Lion.  The Lion shall defend, indemnify and hold harmless      Reed’s and all of its principals, directors, officers, employees, and      subsidiaries from and against any and all claims, demands, losses,      liabilities, costs and expenses of any nature whatsoever, including      reasonable attorney's fees (collectively, "Claims and      Damages"), to the extent arising out of (i) the improper storage,      handling or alteration of the Products before delivery to Reed’s or Reed’s      designee, (ii) any defect arising out of or related to The Lion’s      manufacturing, packaging, or handling of the Products before delivery to      Reed’s or Reed’s designee (including without limitation any failure to      follow Reed’s specifications, recipes and instructions, and good      manufacturing practices and other requirements of this Agreement), or      (iii) The Lion’s negligence or willfulmisconduct. |

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|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | By      Reed’s.  Reed’s shall defend, indemnify and hold harmless The      Lion and all of its principals, directors, officers, employees, and      subsidiaries from and against any and all Claims and Damages to the extent      arising out of (i) the improper storage, handling or alteration of the      Products after delivery to Reed’s or Reed’s designee, (ii) any defect      arising out of or related to the design, formula, recipe, warnings or any      other type of defect (except for defects arising out of or related to The      Lion’s manufacturing, packaging, or handling of the Products before      delivery to Reed’s or Reed’s designee), (iii) any recipe, formulation,      process, brewing ingredient, packaging material (other than bottles) or      other materials supplied by Reed’s, (iv) any allegation that The Lion’s      use of the Trademarks or any recipe, formulation, process, brewing      ingredient, packaging material, know-how, technology or other intellectual      property provided by Reed’s infringes or misappropriates the intellectual      property rights or trade secrets of any person; or (v) Reed’s negligence      or willful misconduct.                                                                                                                                                                                                                                                                   |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   | XII.   | LIMITATIONS      OF LIABILITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   |   | Notwithstanding the      provisions hereof regarding indemnification, each Party’s aggregate      liability for damages of any sort under or in connection with any and all      claims arising under this Agreement, whether incidental, consequential,      special, punitive or indirect or for loss of profits or business, of any      nature or arising on account of any cause, and regardless whether such      losses or damages were within the contemplation of the parties at any      time, together with attorneys’ fees and other expenses in connection with      such claims, shall not exceed the sum of Four Million Dollars      ($4,000,000). The foregoing limitations shall not apply to damages arising      from a Party’s fraud, knowing and intentional violation of applicable      laws, willful misconduct, or violation of its obligations under Article IX      relating to the other party’s Confidential Information. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | XIII.  | MISCELLANEOUS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Successors and      Assigns.  Notwithstanding anything else set forth herein,      this Agreement shall be binding on and inure to the benefit of the Parties      and their respective successors and assigns.  Any such      assignment or delegation by either Party shall not release the assigning      or delegating Party of any of its obligations under this Agreement, and      the assignee shall expressly assume all obligations hereunder as a      condition of its enjoyment of any rights relating hereto.  Any      assignment by a Party to a person who is not as creditworthy as the      assignor shall require the other Party’s prior written consent, which      shall not be unreasonably withheld.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Reorganization or      Divestiture. Reed’s recognizes that The Lion is entering into this      Agreement under the express expectation that for the entire Term, and      subject to the terms hereof, The Lion will supply all of the Territory      Requirements of all business units now or hereafter operated by Reed’s,      and their successors and assigns, regardless of any change of control,      merger, sale or offering of stock, consolidation, spin off, split up, sale      or exchange of assets, liquidation, reorganization or other transaction      that may alter the identity, ownership or structure or such business      units.  Accordingly, before entering into any such transaction,      Reed’s shall cause all entities which may succeed to those operations of      Reed’s in which Products are used, distributed or resold, to agree      expressly in writing to honor and assume this Agreement, in whole, on its      then existing terms.  No such assignment, assumption or related      transaction shall release Reed’s of any obligation hereunder, and without      limiting any other rights of The Lion hereunder, Reed’s hereby expressly      agrees to be liable to The Lion for any failure of any such successor to      purchase the successor’s Territory Requirements of the relevant Products      which it is using on the terms set forth herein, as if the successor were      jointly and severally liable under thisAgreement. |

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|   |   | (c)    | Force      Majeure.  The Lion shall not be responsible for delays in      production or delivery of Products due to riots, sabotage, fire, floods,      differences with workmen (other than Reed’s own labor force),      insurrections, acts of God, wars, governmental acts, difficulties with      contractors, shortages of utilities, supplies, ingredients or materials,      or breakdown or unavailability of equipment or processes (for reasons      other than The Lion’s failure to maintain the same properly), or other      events beyond The Lion’s reasonable control (“Force      Majeure”).  During such periods, Reed’s has the right to      have its Products brewed/produced at another facility.  If The      Lion cannot (or cannot reasonably be expected to) resume normal production      within one-hundred twenty (120) days after the onset of an event of Force      Majeure, and no other brewery will fill Reed’s needs for the same      applicable Products except on the condition that Reed’s enter into a      long-term agreement that would be inconsistent with Reed’s obligations      under Section I(a) hereof, Reed’s shall be permitted to enter into such      other agreement, and Section I(a) of this Agreement shall be deemed      amended to the extent necessary to accommodate such other      agreement.  Reed’s shall take and pay for such portions of its      Territory Requirements as The Lion is able to supply, and acknowledges      that the right to obtain alternate supplies from other vendors is a full      and sufficient remedy for The Lion’s failure to fill Reed’s      orders.  Reed’s shall have no right to compensation from The      Lion for any difference in price or other remedy for such      failure.  If an event of Force Majeure impairs The Lion’s      production capacity, or Reed’s places orders for Products in quantities      substantially disproportionate to historic levels, The Lion shall have the      right to allocate its production capacity in any reasonably equitable      manner, taking into account its own needs, Reed’s needs, and the needs of      The Lion’s other customers, who, for this purpose, include parties who      have binding contracts with The Lion in force at the actual time the event      of Force Majeure occurs or arises and others who are regular customers of      The Lion, even if they do not have such contracts in force at that      time. |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | (d)    | Waivers,      etc.  No waiver by either Party of a breach of the other      Party’s obligations, agreements or covenants herein set forth shall be a      waiver of any subsequent breach or any other obligation, agreement or      covenant, nor shall any forbearance by any Party to seek a remedy for any      breach by the other be a waiver by such Party of its rights and remedies      with respect to that or any other breach.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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|   |   | (e)    | Governing      Laws.  This Agreement shall be interpreted and any      dispute hereunder adjudicated according to the substantive laws of the      Commonwealth of Pennsylvania, excluding its principles of conflict of      laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (f)    | Dispute      Resolution.  The State and Federal courts sitting in      Luzerne County, Pennsylvania shall have exclusive jurisdiction of all      disputes arising from or related to this Agreement, and the Parties hereby      consent to jurisdiction and venue in such courts.  The      prevailing Party in any action relating hereto shall be entitled to      reimbursement of all of its reasonable legal and other fees, costs and      expenses incurred in connection therewith.  For the purposes of      this Article, the “prevailing Party” shall be the Party awarded the      preponderance of whatever relief is awarded, whether financial or      equitable, as determined by the court. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (g)    | Amendments.      This Agreement may not be amended except by an instrument in writing      signed by both Parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (h)    | Entire      Agreement. This Agreement constitutes a single integrated, written      contract expressing the entire agreement of the Parties hereto relative to      the subject matter hereof.  No other covenants, agreements,      representations, or warranties of any kind whatsoever have been made by      any Party hereto, except as specifically set forth in this      Agreement.  All prior discussions and negotiations have been and      are merged and integrated into, and are superseded by, this      Agreement.                                                                                                                                                                                                  |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (i)    | Prior Agreement      Superseded.  This Agreement supersedes the Prior      Agreement in all respects, and the Prior Agreement shall have no further      force or effect, except that any amounts earned by The Lion under the      Prior Agreement shall be due and payable according to its      terms.  In the event that any provision of this Agreement should      be held to be void, voidable, or unenforceable, the remaining portions      hereof shall remain in full force and effect.                                                                                                                                                                                                                                   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   | (j)    | Notices.  All      notices required herein shall be given by registered mail, return receipt      requested, or by overnight courier service, in both cases with a copy also      sent by telecopier or email, to the addresses given below the Parties’      respective signatures below unless change thereof has previously been      given to the Party giving the notice and shall be deemed effective when      received.                                                                                                                                                                                                                                                                                                          |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   | (k)    | Counterparts,      etc.  This Agreement may be executed by the Parties      hereto in separate counterparts, each of which when so executed and      delivered shall be an original, but all such counterparts shall together      constitute one and the same instrument.  Such counterpart may      consist of a number of copies hereof each signed by less than all, but      together signed by all of the Parties hereto.  Signatures hereon      may be exchanged by facsimile or other electronic  means.                                                                                                                                                                                                          |

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|   | REED’S      INC. By:      /s/ Christopher J.      ReedChristopher      J. Reed, President and Chief Executive Officer Address      for Notices: 13000      South Spring StreetLos      Angeles, California 90061Fax:      310-217-9411Email:      creed@reedsinc.comAttention:      Christopher J. Reed, President and Chief Executive  Officer |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                 |
|   | THE      LION BREWERY, INC. By:      /s/ Ronald      HammondRonald      Hammond, Chief Executive Officer Address      for Notices: 700 N.  Pennsylvania      AvenueWilkes-Barre,      Pennsylvania 18705Fax:      570-823-1820Email:      crisell@lionbrewery.comAttention:  Clifford      Risell, President and COO         |

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| Brewed Products and Related      Trademarks:         |
|------------------------------------------------------|
| Reed's      Original Ginger Brew                     |
| Reed's      Extra Ginger Brew                        |
| Reed's      Premium Ginger Brew                      |
| Reed’s      Raspberry Ginger Brew              |
| Reed's      Spiced Apple Brew                        |
| Reed's      Cherry Ginger Brew                       |
| Pasteurized Soft Drinks and Related      Trademarks: |
| Virgil’s      Root Beer                        |
| Virgil’s      Diet Root Beer                   |
| Virgil’s      Cream Soda                       |
| Virgil’s      Diet Cream Soda                  |
| Virgil’s      Black Cherry                     |
| Virgil’s      Real Cola                        |
| China      Cola                                      |
| Cherry      China Cola                               |
| Diet      Real Cola                                  |
| Diet      Black Cherry Cream Soda                    |

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| Product                                                                                                                                                                                                                 | Base      Copacking Fee                                                                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Brewed      ProductsReed's      Original Ginger BrewReed's      Extra Ginger BrewReed's      Premium Ginger BrewReed’s      Raspberry Ginger BrewReed's      Spiced Apple BrewReed's      Cherry Ginger Brew      | $X.XX      per case of 6-4 pks/12oz., 4-8 pks/7oz, 12pks/22oz, 2-12pk/12oz for      bottled product$X.XX      per unit, for product in half or sixth barrels, kegs, half kegs, or other      non-bottle containers            |
| Pasteurized      Soft DrinksVirgil’s      Root BeerVirgil’s      Cream SodaVirgil’s      Black CherryVirgil’s      Real ColaChina      ColaDiet      Real ColaDiet      Black Cherry Cream Soda | $X.XX      per case of 6-4 pks/12oz., 4-8 pks/7oz, 12pks/22oz,      2-12pk/12oz  for bottled product$X.XX      per unit, for product in half or sixth barrels, kegs, half kegs, or other      non-bottle containers |

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|   | _________________________________      (SEAL)Name:Title:Date: |
|--------|---------------------------------------------------------------|

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