----

|   | 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). |

----

|   |   | (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. |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | (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. |

----

|   |   | (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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | (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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

|   |   | (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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|   | 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 forothers. |

----

|   | 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 thisgoal. |

----

|   |                                                                                   | (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.                                                                                                                                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------|--------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                   |                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | 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 thirdparty.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

|   |   | (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.                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   | 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 ShortfallPayment.                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|   | 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).                                                                                                                                                                                                             |

----

|   |   | (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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|--------|---------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |   | (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. |

----

|   |   | (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. |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (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 willful  misconduct. |

----

|   |   | (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 this  Agreement. |

----

|   |   | (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 otherbreach.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|   |   | (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.                                                                                                                                                                                                           |

----

|   | 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         |

----

| 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                    |

----

| Product                                                                                                                                                                                        | Base      Copacking Fee                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
| Brewed      Products                                                                                                                                                                           | $X.XX(i) per      case of 6-4 pks/12oz., 4-8 pks/7oz, 12pks/22oz, 2-12pk/12oz for bottled      product                   |
| Reed'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(i) per      unit, for product in half or sixth barrels, kegs, half kegs, or other      non-bottle containers  |
| Pasteurized      Soft Drinks                                                                                                                                                              | $X.XX(i) per      case of 6-4 pks/12oz., 4-8 pks/7oz, 12pks/22oz, 2-12pk/12oz  for      bottled product   |
| Virgil’s      Root BeerVirgil’s      Cream SodaVirgil’s      Black CherryVirgil’s      Real ColaChina      ColaDiet      Real ColaDiet      Black Cherry Cream Soda    | $X.XX(i) per      unit, for product in half or sixth barrels, kegs, half kegs, or other      non-bottle containers       |
| (i)      Confidential portion has been omitted and has been filed separately      with the Commission pursuant to a request for confidential      treatment.                              |

----

----

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

----