<PAGE>


         UNDERWRITER'S WARRANT AGREEMENT dated as of May 14, 1997 by and 
between HAWAIIAN NATURAL WATER COMPANY, INC., a Hawaii corporation (the 
"Company"), and JOSEPH STEVENS & COMPANY, INC. ("Joseph Stevens") (Joseph 
Stevens is hereinafter referred to variously as the "Holder" or the 
"Underwriter").

                             W I T N E S S E T H:

         WHEREAS, the Company proposes to issue to the Underwriter or its 
designee(s) warrants ("Warrants") to purchase up to 200,000 shares of the 
Company's common stock, no par value per share ("Common Stock"); and

         WHEREAS, the Underwriter has agreed pursuant to the underwriting 
agreement (the "Underwriting Agreement") dated as of the date hereof between 
the Underwriter and the Company in connection with the proposed public 
offering of 2,000,000 units (the "Units") at a public offering price of $4.00 
per Unit, each Unit consisting of one (1) share of Common Stock and one (1) 
redeemable Common Stock purchase warrant ("Redeemable Warrants"), each 
Redeemable Warrant to purchase one (1) additional share of Common Stock; and

         WHEREAS, the Warrants to be issued pursuant to this Agreement will 
be issued on the Closing Date (as such term is defined in the Underwriting 
Agreement) by the Company to the Underwriter in consideration for, and as 
part of the Underwriter's compensation in connection with, Joseph Stevens 
acting as the Underwriter pursuant to the Underwriting Agreement;

         NOW, THEREFORE, in consideration of the premises, the payment by the 
Underwriter to the Company of twenty dollars and no cents ($20.00), the 
agreements herein set forth and other good and valuable consideration, the 
receipt and sufficiency of which are hereby acknowledged, the parties hereto 
agree as follows:


<PAGE>

         1.   GRANT. The Underwriter (or its designee(s)) is hereby granted the 
right to purchase, at any time from May 14, 1998 until 5:00 p.m., New York 
time, on May 13, 2002, up to 200,000 shares of Common Stock at an initial 
exercise price (subject to adjustment as provided in Section 8 hereof) of $6.60 
per share subject to the terms and conditions of this Agreement.

         2.   WARRANT CERTIFICATES. The warrant certificates (the "Warrant 
Certificates") delivered and to be delivered pursuant to this Agreement shall 
be in the form set forth in Exhibit A attached hereto and made a part hereof, 
with such appropriate insertions, omissions, substitutions and other variations 
as required or permitted by this Agreement.

         3.   EXERCISE OF WARRANT.

         3.1  METHOD OF EXERCISE. The Warrants are initially exercisable at an 
initial exercise price per share set forth in Section 6 hereof payable by 
certified or official bank check in New York Clearing House funds, subject to 
adjustment as provided in Section 8 hereof. Upon surrender of a Warrant 
Certificate, together with the annexed Form of Election to Purchase duly 
executed and payment of the Exercise Price (as hereinafter defined) for the 
shares of Common Stock purchased at the Company's principal offices in 
Honolulu, Hawaii (presently located at 248 Mokauea Street, Honolulu, Hawaii 
96819) the registered holder of a Warrant Certificate ("Holder" or "Holders") 
shall be entitled to receive a certificate or certificates for the shares of 
Common Stock so purchased. The purchase rights represented by each Warrant 
Certificate are exercisable at the option of the Holder thereof, in whole or in 
part (but not as to fractional shares of the Common Stock underlying the 
Warrants). Warrants may be exercised to purchase all or part of the shares of 
Common Stock represented thereby. In the case of the purchase of less than all 
the shares of Common Stock purchasable under any Warrant Certificate,


                                       2
<PAGE>

the Company shall cancel said Warrant Certificate upon the surrender thereof 
and shall execute and deliver a new Warrant Certificate of like tenor for the 
balance of the shares of Common Stock purchasable thereunder.

         3.2  EXERCISE BY SURRENDER OF WARRANT. In addition to the method of 
payment set forth in Section 3.1 and in lieu of any cash payment required 
thereunder, the Holder(s) of the Warrants shall have the right at any time and 
from time to time to exercise the Warrants in full or in part by surrendering 
the Warrant Certificate in the manner specified in Section 3.1 in exchange for 
the number of shares of Common Stock equal to the product of (x) the number of 
shares of Common Stock as to which the Warrants are being exercised, multiplied 
by (y) a fraction, the numerator of which is the Market Price (as defined in 
Section 3.3 hereof) of the Common Stock minus the Exercise Price of the Common 
Stock and the denominator of which is the Market Price per share of Common 
Stock. Solely for the purposes of this Section 3.2, Market Price shall be 
calculated either (i) on the date on which the form of election attached hereto 
is deemed to have been sent to the Company pursuant to Section 14 hereof 
("Notice Date") or (ii) as the average of the Market Price for each of the five 
trading days immediately preceding the Notice Date, whichever of (i) or (ii) 
results in a greater Market Price.

         3.3  DEFINITION OF MARKET PRICE.

         (a)  As used herein, the phrase "Market Price" of the Common Stock at 
any date shall be deemed to be the last reported sale price, or, in case no 
such reported sale takes place on such day, the average of the last reported 
sale prices for the last three (3) trading days, in either case as officially 
reported by the principal securities exchange on which the Common Stock is 
listed or admitted to trading or by the Nasdaq National Market ("Nasdaq 
National Market") or the Nasdaq Small Cap Market ("Nasdaq Small Cap"), or, if 
the Common Stock is


                                       3
<PAGE>

not listed or admitted to trading on any national securities exchange or quoted 
by the National Association of Securities Dealers Automated Quotation System 
("Nasdaq"), the average closing bid price as furnished by the National 
Association of Securities Dealers, Inc: ("NASD") through Nasdaq or similar 
organization if Nasdaq is no longer reporting such information.

         (b) If the Market Price of the Common Stock cannot be determined 
pursuant to Section 3.3(a) above, the Market Price of the Common Stock shall be 
determined in good faith (using customary valuation methods) by resolution of 
the members of the Board of Directors of the Company, based on the best 
information available to it.

         4.   ISSUANCE OF CERTIFICATES. Upon the exercise of the Warrants, the 
issuance of certificates for shares of Common Stock or other securities, 
properties or rights underlying such Warrants, shall be made forthwith (and in 
any event such issuance shall be made within three (3) business days 
thereafter) without charge to the Holder thereof including, without limitation, 
any tax which may be payable in respect of the issuance thereof, and such 
certificates shall (subject to the provisions of SECTIONS 5 and 7 hereof) be 
issued in the name of, or in such names as may be directed by, the Holder 
thereof.

         The Warrant Certificates and the certificates representing the shares 
of Common Stock underlying the Warrants or other securities, property or rights 
shall be executed on behalf of the Company by the manual or facsimile signature 
of the then present Chairman or Vice Chairman of the Board of Directors or 
President or Vice President of the Company under its corporate seal reproduced 
thereon, attested to by the manual or facsimile signature of the then present 
Secretary or Assistant Secretary or Treasurer or Assistant Treasurer of the 
Company. Warrant Certificates shall be dated the date of execution by the 
Company upon initial issuance, division, exchange, substitution or transfer.


                                       4
<PAGE>

         5.   RESTRICTION ON TRANSFER OF WARRANTS. The Holder of a Warrant 
Certificate, by its acceptance thereof, covenants and agrees that the Warrants 
are being acquired as an investment and not with a view to the distribution 
thereof; that the Warrants may not be sold, transferred, assigned, hypothecated 
or otherwise disposed of, in whole or in part, for a period of one (1) year 
from the effective date of the Company's Registration Statement on form SB-2 
(Registration No. 333-18289) (the "Registration Statement"), except to officers 
of the Underwriter.

         6.   EXERCISE PRICE.

         6.1  INITIAL AND ADJUSTED EXERCISE PRICE. Except as otherwise provided 
in Section 8 hereof, the initial exercise price of each Warrant shall be $6.60 
per share of Common Stock. The adjusted exercise price shall be the price which 
shall result from time to time from any and all adjustments of the initial 
exercise price in accordance with the provisions of Section 8 hereof.

         6.2  EXERCISE PRICE. The term "Exercise Price" herein shall mean the 
initial exercise price or the adjusted exercise price, depending upon the 
context.

         7.   REGISTRATION RIGHTS.

         7.1  REGISTRATION UNDER THE SECURITIES ACT OF 1933. The Warrants and 
the shares of Common Stock underlying the Warrants and the other securities 
issuable upon exercise of the Warrants (collectively, the "Warrant Securities") 
have not been registered under the Securities Act of 1933, as amended (the 
"Act").  Upon exercise, in part or in whole, of the Warrants, certificates 
representing the shares of Common Stock underlying the Warrants, and the other 
securities issuable upon exercise of the Warrants shall bear the following 
legend:

         The securities represented by this certificate have not been 
         registered under the Securities Act of 1933, as amended ("Act"),


                                       5
<PAGE>

         and may not be offered, sold, pledged, hypothecated, assigned or     
         transferred except pursuant to (i) an effective registration statement 
         under the Act, (ii) to the extent applicable, Rule 144 under the Act 
         (or any similar rule under such Act relating to the disposition of 
         securities), or (iii) an opinion of counsel, if such opinion shall be 
         reasonably satisfactory to counsel to the issuer, that an exemption 
         from registration under such Act is available.

         7.2  PIGGYBACK REGISTRATION. If, at any time commencing after the date 
hereof and expiring seven (7) years after the effective date of the 
Registration Statement, the Company proposes to register any of its securities 
under the Act (other than pursuant to Form S-8, S-4 or a comparable 
registration statement) the Company will give written notice by registered 
mail, at least thirty (30) days prior to the filing of each such registration 
statement, to the Underwriter and to all other Holders of the Warrants and/or 
the Warrant Securities of its intention to do so.  If the Underwriter or other 
Holders of the Warrants and/or Warrant Securities notifies the Company within 
twenty (20) days after receipt of any such notice of its or their desire to 
include any of the shares of Common Stock underlying the Warrants or any other 
securities issuable upon exercise of the Warrants in such proposed registration 
statement, the Company shall afford the Underwriter and such Holders of the 
Warrants and/or Warrant Securities the opportunity to have any of the shares of 
Common Stock underlying the Warrants or any other securities issuable upon 
exercise of the Warrants registered under such registration statement.

         Notwithstanding the provisions of this Section 7.2, the Company shall 
have the right at any time after it shall have given written notice pursuant to 
this Section 7.2 (irrespective of whether a written request for inclusion of 
any such securities shall have been made) to elect not to file any such 
proposed registration statement, or to withdraw the same after the filing but 
prior to the effective date thereof.


                                      6
<PAGE>

         7.3  DEMAND REGISTRATION.

         (a)  At any time commencing after the date hereof and expiring five 
(5) years after the effective date of the Registration Statement, the Holders 
of the Warrants and/or Warrant Securities representing a "Majority" (as 
hereinafter defined) of such securities (assuming the exercise of all of the 
Warrants) shall have the right (which right is in addition to the registration 
rights under Section 7.2 hereof), exercisable by written notice to the Company, 
to have the Company prepare and file with the Securities and Exchange 
Commission (the "Commission"), on one occasion, a registration statement and 
such other documents, including a prospectus, as may be necessary in the 
opinion of both counsel for the Company and counsel for the Underwriter and 
Holders, in order to comply with the provisions of the Act, so as to permit a 
public offering and sale of their respective shares of Common Stock underlying 
the Warrants or any other securities issuable upon exercise of the Warrants for 
nine (9) consecutive months by such Holders and any other Holders of the 
Warrants and/or Warrant Securities who notify the Company within ten (10) days 
after receiving notice from the Company of such request; provided. however, 
upon receipt of a request for a registration pursuant to this SECTION 7.3, the 
Company may, one time, in any 12 month period (i) postpone the filing of a 
registration statement for a period not to exceed ninety (90) days from the 
date of receipt of such request, if the President of the Company furnishes to 
the Holders requesting registration a certificate signed by the Company's 
President stating that in the good faith judgment of the Board of Directors of 
the Company it would be seriously detrimental to the Company for a public 
offering of the Company's securities to be commenced in the near future or 
(ii) postpone the filing of a registration statement for a period not to exceed 
ninety (90) days from the effective date of any registration statement relating 
to a primary underwritten offering of securities of the Company


                                       7
<PAGE>

which has been declared effective prior to the date of receipt of a request for 
registration. If the Company so determines to postpone a registration requested 
by the Holders pursuant to this SECTION 7.3, it shall promptly notify the 
requesting Holders of such determination including the reason therefor, 
whereupon the requesting Holders shall be entitled to withdraw such request and 
such registration shall not count as a registration under this SECTION 7.3. In 
addition, the Company may, one time, in any 12 month period, suspend the 
effectiveness of any registration statement filed pursuant to this SECTION 7.3 
for a period of forty-five (45) days, if the President of the Company furnishes 
to the Holders of securities registered pursuant to this SECTION 7.3 a 
certificate signed by the Company's President stating that the Board of 
Directors of the Company has determined, upon advice of counsel, that it would 
be required to disclose any significant corporate development which disclosure 
would have a material effect on the Company; provided, however, that the period 
of time which such registration statement is required to be effective shall be 
increased by the number of days that the registration statement was suspended 
(the "Suspension Period"); and provided, further, that the Company shall 
furnish to each Holder of securities registered pursuant to SECTION 7.3 a 
notice stating that the Suspension Period has been terminated within three (3) 
business days following the date of such termination..

         (b) The Company covenants and agrees to give written notice of any 
registration request under this Section 7.3 by any Holder or Holders to all 
other registered Holders of the Warrants and the Warrant Securities within 
ten (10) days from the date of the receipt of any such registration request. 

         (c) Notwithstanding anything to the contrary contained herein, if the 
Company shall not have filed a registration statement for the applicable 
securities within the time period specified in Section 7.4(a) hereof pursuant 
to the written notice specified in Section 7.3(a) of a


                                       8
<PAGE>

Majority of the Holders of the Warrants and/or Warrant Securities, the Company 
shall have the option upon the written concurrence of a Majority of the Holders 
of the Warrants and/or Warrant Securities to repurchase (i) any and all Warrant 
Securities at the higher of the Market Price per share of Common Stock on (x) 
the date of the notice sent pursuant to Section 7.3(a) or (y) the expiration of 
the period specified in Section 7.4(a) and (ii) any and all Warrants at such 
Market Price less the Exercise Price of such Warrant. Such repurchase shall be 
in immediately available funds and shall close within two (2) days after the 
later of (i) the expiration of the period specified in Section 7.4(a) or (ii) 
the delivery of the written notice of election specified in this Section 7.3(c).

         (d) In addition to the registration rights under Section 7.2 and 
subsection (a) of this Section 7.3, at any time commencing after the date 
hereof and expiring five (5) years thereafter, any Holder of Warrants and/or 
Warrant Securities shall have the right, exercisable by written request to 
the Company, to have the Company prepare and file, on one occasion, with the 
Commission a registration statement so as to permit a public offering and 
sale for nine (9) consecutive months by any such Holder of its shares of 
Common Stock underlying the Warrants or any other securities issuable upon 
exercise of the Warrants provided, however, that the provisions of Section 
7.4(b) hereof shall not apply to any such registration request and 
registration and all costs incident thereto shall be at the expense of the 
Holder or Holders making such request.

         7.4  COVENANTS OF THE COMPANY WITH RESPECT TO REGISTRATION. In 
connection with any registration under Section 7.2 or 7.3 hereof, the Company 
covenants and agrees as follows:


                                       9
<PAGE>

         (a)  The Company shall use its best efforts to file a registration 
statement within forty-five (45) days of receipt of any demand therefor, shall 
use its best efforts to have any registration statement declared effective at 
the earliest possible time, and shall furnish each Holder desiring to sell 
Warrant Securities such number of prospectuses as shall reasonably be requested.

         (b)  The Company shall pay all costs (excluding fees and expenses of 
Holder(s)' counsel and any underwriting or selling commissions), fees and 
expenses in connection with all registration statements filed pursuant to 
Sections 7.2 and 7.3(a) hereof including, without limitation, the Company's 
legal and accounting fees, printing expenses, blue sky fees and expenses. The 
Holder(s) will pay all costs, fees and expenses in connection with any 
registration statement filed pursuant to Section 7.3(d).  If the Company shall 
fail to comply with the provisions of Section 7.4(a), the Company shall be 
liable for any equitable or other relief available at law to the Holder(s) 
requesting registration of their Warrant Securities, excluding consequential 
damages.

         (c)  The Company will take all necessary action which may be required 
in qualifying or registering the securities included in a registration 
statement for offering and sale under the securities or blue sky laws of such 
states as reasonably are requested by the Holder(s), provided that the Company 
shall not be obligated to execute or file any general consent to service of 
process or to qualify as a foreign corporation to do business under the laws of 
any such jurisdiction.

         (d)  The Company shall indemnify the Holder(s) of the Warrant 
Securities to be sold pursuant to any registration statement and each person, 
if any, who controls such Holders within the meaning of Section 15 of the Act 
or Section 20(a) of the Securities


                                      10

<PAGE>

Exchange Act of 1934, as amended ("Exchange Act"), against all loss, claim, 
damage,  expense or liability (including all expenses reasonably incurred in 
investigating, preparing or defending against any claim whatsoever) to which 
any of them may become subject under the Act, the Exchange Act or otherwise, 
arising from such registration statement but only to the same extent and with 
the same effect as the provisions pursuant to which the Company has agreed to 
indemnify the Underwriter contained in Section 7 of the Underwriting 
Agreement. The Company further agree(s) that upon demand by an indemnified 
person, at any time or from time to time, it will promptly reimburse such 
indemnified person for any loss, claim, damage, liability, cost or expense 
actually and reasonably paid by the indemnified person as to which the 
Company has indemnified such person pursuant hereto. Notwithstanding the 
foregoing provisions of this Section 7.4(d) any such payment or reimbursement 
by the Company of fees, expenses or disbursements incurred by an indemnified 
person in any proceeding in which a final judgment by a court of competent 
jurisdiction (after all appeals or the expiration of time to appeal) is 
entered against the Company or such indemnified person as a direct result of 
the Holder(s) or such person's gross negligence or willful misfeasance will 
be promptly repaid to the Company.

     (e) The Holder(s) of the Warrant Securities to be sold pursuant to a 
registration statement, and their successors and assigns, shall severally, 
and not jointly, indemnify the Company, its officers and directors and each 
person, if any, who controls the Company within the meaning of Section 15 of 
the Act or Section 20(a) of the Exchange Act, against all loss, claim, damage 
or expense or liability (including all expenses reasonably incurred in 
investigating, preparing or defending against any claim

                                     11   

<PAGE>

whatsoever) to which they may become subject under the Act, the Exchange Act 
or otherwise, arising from information furnished by or on behalf of such 
Holders, or their successors or assigns, for specific inclusion in such 
registration statement to the same extent and with the same effect as the 
provisions contained in Section 7 of the Underwriting Agreement pursuant to 
which the Underwriter has agreed to indemnify the Company. The Holder(s) 
further agree(s) that upon demand by an indemnified person, at any time or 
from time to time, they will promptly reimburse such indemnified person for 
any loss, claim, damage, liability, cost or expense actually and reasonably 
paid by the indemnified person as to which the Holder(s) have indemnified 
such person pursuant hereto. Notwithstanding the foregoing provisions of this 
Section 7.4(e) any such payment or reimbursement by the Holder(s) of fees, 
expenses or disbursements incurred by an indemnified person in any proceeding 
in which a final judgment by a court of competent jurisdiction (after all 
appeals or the expiration of time to appeal) is entered against the Company 
or such indemnified person as a direct result of the Company or such person's 
gross negligence or willful misfeasance will be promptly repaid to the 
Holder(s).

     (f) Nothing contained in this Agreement shall be construed as requiring 
the Holder(s) to exercise their Warrants prior to the initial filing of any 
registration statement or the effectiveness thereof.

    (g) The Company shall not permit the inclusion of any securities other 
than the Warrant Securities to be included in any registration statement 
filed pursuant to Section 7.3 hereof, or permit any registration statement to 
be or remain effective during the effectiveness of a registration statement 
filed pursuant to Section 7.3 hereof, without the prior written consent of 
the Holders of the Warrants and Warrant Securities

                                     12   

<PAGE>

representing a Majority of such securities (assuming the exercise of all of 
the Warrants) other than (i) the Warrant Securities or (ii) any securities 
issuable upon the exercise of that certain common stock purchase warrant 
dated May 24, 1996 issued to Leisure Fund Ltd. in accordance with the 
registration rights of such warrant, as in effect on the date hereof, unless 
such party shall have waived such registration rights.

     (h) The Company shall furnish to each Holder participating in the 
offering and to each underwriter, if any, a signed counterpart, addressed to 
such Holder or underwriter, of (i) an opinion of counsel to the Company, 
dated the effective date of such registration statement (and, if such 
registration includes an underwritten public offering, an opinion dated the 
date of the closing under the underwriting agreement), and (ii) a "cold 
comfort" letter dated the effective date of such registration statement (and, 
if such registration includes an underwritten public offering, a letter dated 
the date of the closing under the underwriting agreement) signed by the 
independent public accountants who have issued a report on the Company's 
financial statements included in such registration statement, in each case 
covering substantially the same matters with respect to such registration 
statement (and the prospectus included therein) and, in the case of such 
accountants' letter, with respect to events subsequent to the date of such 
financial statements, as are customarily covered in opinions of issuer's 
counsel and in accountants' letters delivered to underwriters in underwritten 
public offerings of securities.

     (i)  The Company shall as soon as practicable after the effective date 
of the registration statement, and in any event within 15 months thereafter, 
make "generally available to its security holders" (within the meaning of 
Rule 158 under the Act) an earnings statement (which need not be audited) 
complying with Section 11(a) of the Act

                                     13   

<PAGE>

and covering a period of at least 12 consecutive months beginning after the 
effective date of the registration statement.

     (j) The Company shall deliver promptly to each Holder participating in 
the offering requesting the correspondence and memoranda described below and 
to the managing underwriter, if any, copies of all correspondence between the 
Commission and the Company, its counsel or auditors and all memoranda 
relating to discussions with the Commission or its staff with respect to the 
registration statement and permit each Holder and underwriter to do such 
investigation, upon reasonable advance notice, with respect to information 
contained in or omitted from the registration statement as it deems 
reasonably necessary to comply with applicable securities laws or rules of 
the NASD.  Such investigation shall include access to books, records and 
properties and opportunities to discuss the business of the Company with its 
officers and independent auditors, all to such reasonable extent and at such 
reasonable times and as often as any such Holder or underwriter shall 
reasonably request.

     (k) The Company shall enter into an underwriting agreement with the 
managing underwriter selected for such underwriting by Holders holding a 
Majority of the Warrant Securities requested to be included in such 
underwriting, which may be the Underwriter. Such agreement shall be 
satisfactory in form and substance to the Company, each Holder and such 
managing underwriter, and shall contain such representations, warranties and 
covenants by the Company and such other terms as are customarily contained in 
agreements of that type used by the managing underwriter. The Holders shall 
be parties to any underwriting agreement relating to an underwritten sale of 
their Warrant Securities and may, at their option, require that any or all of 
the

                                     14   

<PAGE>

representations, warranties and covenants of the Company to or for the 
benefit of such underwriters shall also be made to and for the benefit of 
such Holders. Such Holders shall not be required to make any representations 
or warranties to or agreements with the Company or the underwriters except as 
they may relate to such Holders and their intended methods of distribution. 

     (1)  In addition to the Warrant Securities, upon the written request 
therefor by any Holder(s), the Company shall include in the registration 
statement any other securities of the Company held by such Holder(s) as of 
the date of filing of such registration statement, including without 
limitation, restricted shares of Common Stock, options, warrants or any other 
securities convertible into shares of Common Stock.  

     (m) For purposes of this Agreement, the term "Majority" in reference to 
the Holders of Warrants or Warrant Securities shall mean in excess of fifty 
percent (50%) of the then outstanding Warrants or Warrant Securities that (i) 
are not held by the Company, an affiliate, officer, creditor, employee or 
agent thereof or any of their respective affiliates, members of their family, 
persons acting as nominees or in conjunction therewith and (ii) have not been 
resold to the public pursuant to a registration statement filed with the 
Commission under the Act.

          8. ADJUSTMENTS TO EXERCISE PRICE AND NUMBER OF SECURITIES.

          8.1 SUBDIVISION AND COMBINATION. In case the Company shall at any 
time subdivide or combine the outstanding shares of Common Stock, the 
Exercise Price shall forthwith be proportionately decreased in the case of 
subdivision or increased in the case of combination.

                                     15   

<PAGE>
 
          8.2  STOCK DIVIDENDS AND DISTRIBUTIONS. In case the Company shall 
pay dividend in, or make a distribution of, shares of Common Stock or of the 
Company's capital stock convertible into Common Stock, the Exercise Price 
shall forthwith be proportionately decreased. An adjustment made pursuant to 
this Section 8.2 shall be made as of the record date for the subject stock 
dividend or distribution. 

          8.3  ADJUSTMENT IN NUMBER OF SECURITIES. Upon each adjustment of 
the Exercise Price pursuant to the provisions of this Section 8, the number 
of Warrant Securities issuable upon the exercise at the adjusted Exercise 
Price of each Warrant shall be adjusted to the nearest whole number by 
multiplying a number equal to the Exercise Price in effect immediately prior 
to such adjustment by the number of Warrant Securities issuable upon exercise 
of the Warrants immediately prior to such adjustment and dividing the product 
so obtained by the adjusted Exercise Price. 

          8.4 DEFINITION OF COMMON STOCK. For the purpose of this Agreement, 
the term "Common Stock" shall mean (i) the class of stock designated as 
Common Stock in the Articles of Incorporation of the Company as may be 
amended or restated as of the date hereof, or (ii) any other class of stock 
resulting from successive changes or reclassifications of such Common Stock 
consisting solely of changes in par value, or from par value to no par value, 
or from no par value to par value.

          8.5 MERGER OR CONSOLIDATION OR SALE.

     (a) In case of any consolidation of the Company with, or merger of the 
Company with, or merger of the Company into, another corporation (other than 
a consolidation or merger which does not result in any reclassification or 
change of the outstanding Common Stock), the corporation formed by such 
consolidation or merger shall execute and deliver to the

                                     16   

<PAGE>

Holder a supplemental warrant agreement providing that the holder of each 
Warrant then outstanding or to be outstanding shall have the right thereafter 
(until the expiration of such Warrant) to receive, upon exercise of such 
Warrant, the kind and amount of shares of stock and other securities and 
property receivable upon such consolidation, merger, sale or transfer by a 
holder of the number of shares of Common Stock of the Company for which such 
Warrant might have been exercised immediately prior to such consolidation, 
merger, sale or transfer. Such supplemental warrant agreement shall provide 
for adjustments which shall be identical to the adjustments provided in this 
Section 8. The above provision of this subsection shall similarly apply to 
successive consolidations or mergers.

     (b) In the event of (i) the sale by the Company of all or substantially 
all of its assets, or (ii) the engagement by the Company or any of its 
affiliates in a "Rule 13e-3 transaction" as defined in paragraph (a)(3) of 
Rule 13e-3 of the General Rules and Regulations under the Securities Exchange 
Act of 1934, as amended, or (iii) a distribution to the Company's 
stockholders of any cash, assets, property, rights, evidences of 
indebtedness, securities or any other thing of value, or any combination 
thereof, the Holders of the unexercised Warrants shall receive notice of such 
sale, transaction or distribution twenty (20) days prior to the date of such 
sale or the record date for such transaction or distribution, as applicable, 
and, if they exercise such Warrants prior to such date, they shall be treated 
as holders of Common Stock of the Company upon the consummation of such 
transaction or distribution.

          8.6 NO ADJUSTMENT OF EXERCISE PRICE IN CERTAIN CASES. No adjustment 
of the Exercise Price shall be made if the amount of said adjustment shall be 
less than ten cents (10 CENTS) per Warrant Security, provided, however, that 
in such case any adjustment that would otherwise be required then to be made 
shall be carried forward and shall be made at the time of and

                                     17   

<PAGE>

together with the next subsequent adjustment which, together with any 
adjustment so carried forward, shall amount to at least ten cents (10 CENTS) 
per Warrant Security.

          9. EXCHANGE AND REPLACEMENT OF WARRANT CERTIFICATES. Each Warrant 
Certificate is exchangeable without expense, upon the surrender thereof by 
the registered Holder at the principal executive office of the Company, for a 
new Warrant Certificate of like tenor and date representing in the aggregate 
the right to purchase the same number of shares of Common Stock in such 
denominations as shall be designated by the Holder thereof at the time of 
such surrender.

     Upon receipt by the Company of evidence reasonably satisfactory to it of 
the loss, theft, destruction or mutilation of any Warrant Certificate, and, 
in case of loss, theft or destruction, of indemnity or security reasonably 
satisfactory to it, and reimbursement to the Company of all reasonable 
expenses incidental thereto, and upon surrender and cancellation of the 
Warrants, if mutilated, the Company will make and deliver a new Warrant 
Certificate of like tenor, in lieu thereof.

          10. ELIMINATION OF FRACTIONAL INTERESTS. The Company shall not be 
required to issue certificates representing fractions of shares of Common 
Stock upon the exercise of the Warrants, it being the intent of the parties 
that all fractional interests shall be eliminated by rounding any fraction up 
to the nearest whole number of shares of Common Stock or other securities, 
properties or rights.

          11. RESERVATION AND LISTING OF SECURITIES. The Company shall at all 
times reserve and keep available out of its authorized shares of Common 
Stock, solely for the purpose of issuance upon the exercise of the Warrants, 
such number of shares of Common Stock or other securities, properties or 
rights as shall be issuable upon the exercise thereof. The Company

                                     18   

<PAGE>

covenants and agrees that, upon exercise of the Warrants and payment of the 
Exercise Price therefor, all shares of Common Stock and other securities 
issuable upon such exercise shall be duly and validly issued, fully paid, 
non-assessable and not subject to the preemptive rights of any stockholder. 
As long as the Warrants shall be outstanding, the Company shall use its best 
efforts to cause all shares of Common Stock issuable upon the exercise of the 
Warrants to be listed (subject to official notice of issuance) on all 
securities exchanges on which the Common Stock issued to the public in 
connection herewith may then be listed and/or quoted on Nasdaq National 
Market or Nasdaq Small Cap Market.

          12. NOTICES TO WARRANT HOLDERS. Nothing contained in this Agreement 
shall be construed as conferring upon the Holders the right to vote or to 
consent or to receive notice as a stockholder in respect of any meetings of 
stockholders for the election of directors or any other matter, or as having 
any rights whatsoever as a stockholder of the Company. If, however, at any 
time prior to the expiration of the Warrants and their exercise, any of the 
following events shall occur:

     (a)  the Company shall take a record of the holders of its shares of 
Common Stock for the purpose of entitling them to receive a dividend or 
distribution payable otherwise than in cash, or a cash dividend or 
distribution payable otherwise than out of current or retained earnings, as 
indicated by the accounting treatment of such dividend or distribution on the 
books of the Company; or

     (b) the Company shall offer to all the holders of its Common Stock any 
additional shares of capital stock of the Company or securities convertible 
into or exchangeable for shares of capital stock of the Company, or any 
option, right or warrant to subscribe therefor; or

                                     19   

<PAGE>

     (c) a dissolution, liquidation or winding up of the Company (other than 
in connection with a consolidation or merger) or a sale of all or 
substantially all of its property, assets and business as an entirety shall 
be proposed; then, in any one or more of said events, the Company shall give 
written notice of such event at least twenty (20) days prior to the date 
fixed as a record date or the date of closing the transfer books for the 
determination of the stockholders entitled to such dividend, distribution. 
convertible or exchangeable securities or subscription rights, or entitled to 
vote on such proposed dissolution, liquidation, winding up or sale. Such 
notice shall specify such record date or the date of closing the transfer 
books, as the case may be. Failure to give such notice or any defect therein 
shall not affect the validity of any action taken in connection with the 
declaration or payment of any such dividend, or the issuance of any 
convertible or exchangeable securities, or subscription rights, options or 
warrants, or any proposed dissolution, liquidation, winding up or sale.

        13. [INTENTIONALLY OMITTED]

        14. NOTICES. All notices, requests, consents and other communications 
hereunder shall be in writing and shall be deemed to have been duly made when 
delivered, or mailed by registered or certified mail, return receipt 
requested:

     (a) If to the registered Holder of the Warrants, to the address of such 
Holder as shown on the books of the Company; or

     (b) If to the Company, to the address set forth in Section 3 hereof or 
to such other address as the Company may designate by notice to the Holders.

        15. SUPPLEMENTS AND AMENDMENTS. The Company and the Underwriter may 
from time to time supplement or amend this Agreement without the approval of 
any Holders of

                                     20   

<PAGE>

Warrant Certificates (other than the Underwriter) in order to cure any
ambiguity, to correct or supplement any provision contained herein which may be
defective or inconsistent with any provisions herein, or to make any other
provisions in regard to matters or questions arising hereunder which the Company
and the Underwriter may deem necessary or desirable and which the Company and
the Underwriter deem shall not adversely affect the interests of the Holders of
Warrant Certificates.

         16.  SUCCESSORS. All the covenants and provisions of this Agreement 
shall be binding upon and inure to the benefit of the Company, the Holders 
and their respective successors and assigns hereunder.

         17.  TERMINATION. This Agreement shall terminate at the close of 
business on May 13, 2004. Notwithstanding the foregoing, the indemnification 
provisions of Section 7 shall survive such termination until the close of 
business on May 13, 2009.

         18.  GOVERNING LAW, SUBMISSION TO JURISDICTION. This Agreement and 
each Warrant Certificate issued hereunder shall be deemed to be a contract 
made under the laws of the State of New York and for all purposes shall be 
construed in accordance with the laws of said State without giving effect to 
the rules of said State governing the conflicts of laws.

         The Company, the Underwriter and the Holders hereby agree that any 
action, proceeding or claim against it arising out of, or relating in any way 
to, this Agreement shall be brought and enforced in the courts of the State 
of New York or of the United States of America for the Southern District of 
New York, and irrevocably submits to such jurisdiction. which jurisdiction 
shall be exclusive. The Company, the Underwriter and the Holders hereby 
irrevocably waive any objection to such exclusive jurisdiction or 
inconvenient forum. Any such process or summons to be served upon any of the 
Company, the Underwriter and the Holders


                                      21

<PAGE>

(at the option of the party bringing such action, proceeding or claim) may be 
served by transmitting a copy thereof, by registered or certified mail, 
return receipt requested, postage prepaid, addressed to it at the address as 
set forth in Section 14 hereof. Such mailing shall be deemed personal service 
and shall be legal and binding upon the party so served in any action, 
proceeding or claim. The Company, the Underwriter and the Holders agree that 
the prevailing party(ies) in any such action or proceeding shall be entitled 
to recover from the other party(ies) all of its/their reasonable legal costs 
and expenses relating to such action or proceeding and/or incurred in 
connection with the preparation therefor.

         19.  ENTIRE AGREEMENT; MODIFICATION. This Agreement (including the 
Underwriting Agreement to the extent portions thereof are referred to herein) 
and the Redeemable Warrant Agreement contain the entire understanding between 
the parties hereto with respect to the subject matter hereof and may not be 
modified or amended except by a writing duly signed by the party against whom 
enforcement of the modification or amendment is sought.

         20.  SEVERABILITY. If any provision of this Agreement shall be held 
to be invalid or unenforceable, such invalidity or unenforceability shall not 
affect any other provision of this Agreement.

         21.  CAPTIONS. The caption headings of the Sections of this 
Agreement are for convenience of reference only and are not intended, nor 
should they be construed as, a part of this Agreement and shall be given no 
substantive effect.

         22.  BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be 
construed to give to any person or corporation other than the Company and the 
Underwriter and any other registered Holder(s) of the Warrant Certificates or 
Warrant Securities any legal or equitable right, remedy or claim under this 
Agreement; and this Agreement shall be for the sole and


                                      22

<PAGE>

exclusive benefit of the Company and the Underwriter and any other Holder(s) 
of the Warrant Certificates or Warrant Securities.  

         23.  COUNTERPARTS. This Agreement may be executed in any number of 
counterparts and each of such counterparts shall for all purposes be deemed 
to be an original, and such counterparts shall to either constitute but one 
and the same instrument.


                                      23

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to 
be duly executed, as of the day and year first above written.

                                       HAWAIIAN NATURAL WATER COMPANY, INC.



                                       By: /s/ Marcus Bender
                                           -------------------------------------
                                           Name:  Marcus Bender
                                           Title: Chief Executive Officer

Attest:



/s/  Brian Barbata
---------------------------------------
Secretary



                                       JOSEPH STEVENS & COMPANY, INC.



                                       By: /s/  ENRICO SUPPA
                                           -------------------------------------
                                           Name:
                                           Title:

<PAGE>

                                                                       EXHIBIT A


                        [FORM OF WARRANT CERTIFICATE]

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES 
ISSUABLE UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO 
(i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS 
AMENDED, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY 
SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES), OR 
(iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY 
TO COUNSEL FOR THE ISSUER. THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT 
IS AVAILABLE.

THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS 
RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

                          EXERCISABLE ON OR BEFORE
                   5:00 P.M., NEW YORK TIME, MAY 13, 2002

No. UW-001                                                      200,000 Warrants


                             WARRANT CERTIFICATE

         This Warrant Certificate certifies that Joseph Stevens & Company, 
Inc., or registered assigns, is the registered holder of 200,000 Warrants to 
purchase initially, at any time from May 14, 1998 until 5:00 p.m. New York 
time on May 13, 2002 ("Expiration Date"), up to 200,000 shares of common 
stock, no par value ("Common Stock"), of HAWAIIAN NATURAL WATER COMPANY, 
INC., a Hawaii corporation (the "Company"), at the initial exercise price, 
subject to adjustment in certain events (the "Exercise Price"), of $6.60 per 
share of Common Stock upon surrender of this Warrant Certificate and payment 
of the Exercise Price at an office or agency of the Company, or by surrender 
of this Warrant Certificate in lieu of cash payment, but subject to the 
conditions set forth herein and in the warrant agreement dated as of May 14, 
1997 between the Company and Joseph Stevens & Company, Inc. (the "Warrant 
Agreement"). Payment of the Exercise Price shall be made by certified or 
official bank check in New York Clearing House funds payable to the order of 
the Company or by surrender of this Warrant Certificate.

         No Warrant may be exercised after 5:00 p.m., New York time, on the 
Expiration Date, at which time all Warrants evidenced hereby, unless 
exercised prior thereto, hereby shall thereafter be void.

<PAGE>

         The Warrants evidenced by this Warrant Certificate are part of a 
duly authorized issue of Warrants issued pursuant to the Warrant Agreement, 
which Warrant Agreement is hereby incorporated by reference in and made a 
part of this instrument and is hereby referred to for a description of the 
rights, limitation of rights, obligations, duties and immunities thereunder 
of the Company and the holders (the words "holders" or "holder" meaning the 
registered holders or registered holder) of the Warrants.

         The Warrant Agreement provides that upon the occurrence of certain 
events the Exercise Price and the type and/or number of the Company's 
securities issuable thereupon may, subject to certain conditions, be 
adjusted. In such event, the Company will, at the request of the holder, 
issue a new Warrant Certificate evidencing the adjustment in the Exercise 
Price and the number and/or type of securities issuable upon the exercise of 
the Warrants; provided, however, that the failure of the Company to issue 
such new Warrant Certificates shall not in any way change, alter, or 
otherwise impair, the rights of the holder as set forth in the Warrant 
Agreement.

         Upon due presentment for registration of transfer of this Warrant 
Certificate at an office or agency of the Company, a new Warrant Certificate 
or Warrant Certificates of like tenor and evidencing in the aggregate a like 
number of Warrants shall be issued to the transferee(s) in exchange for this 
Warrant Certificate, subject to the limitations provided herein and in the 
Warrant Agreement, without any charge except for any tax or other 
governmental charge imposed in connection with such transfer.

         Upon the exercise of less than all of the Warrants evidenced by this 
Certificate, the Company shall forthwith issue to the holder hereof a new 
Warrant Certificate representing such Warrant.

         The Company may deem and treat the registered holder(s) hereof as 
the absolute owner(s) of this Warrant Certificate (notwithstanding any 
notation of ownership or other writing hereon made by anyone), for the 
purpose of any exercise hereof, and of any distribution to the holder(s) 
hereof, and for all other purposes, and the Company shall not be affected by 
any notice to the contrary.

         All terms used in this Warrant Certificate which are defined in the 
Warrant Agreement shall have the meanings assigned to them in the Warrant 
Agreement.


                                      2

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate 
to be duly executed under its corporate seal.

Dated as of             , 1997


                                       HAWAIIAN NATURAL WATER COMPANY, INC.



[SEAL]                                 By:
                                           -------------------------------------
                                           Marcus Bender
                                           Chief Executive Officer

Attest:



---------------------------------------
Secretary

<PAGE>

           [FORM OF ELECTION TO PURCHASE PURSUANT TO SECTION 3.1]

The undersigned hereby irrevocably elects to exercise the right, represented 
by this Warrant Certificate, to purchase _______ shares of Common Stock and 
herewith tenders in payment for such securities a certified or official bank 
check payable in New York Clearing House Funds to the order of HAWAIIAN 
NATURAL WATER COMPANY, INC. in the amount of $_________, all in accordance 
with the terms of Section 3.1 of the Underwriter's Warrant Agreement dated as 
of May 14, 1997 between HAWAIIAN NATURAL WATER COMPANY, INC. and Joseph 
Stevens & Company, Inc. The undersigned requests that certificates for such 
securities be registered in the name of __________________ whose address is 
______________________________ and that such certificates be delivered to 
________________________________ whose address is _________________________.

Dated:


                                       Signature________________________________
                                       (Signature must conform in all respects 
                                       to name of holder as specified on the 
                                       face of the Warrant Certificate.)


                                       _________________________________________
                                       (Insert Social Security or Other 
                                       Identifying Number of Holder)


                                      4

<PAGE>

           [FORM OF ELECTION TO PURCHASE PURSUANT TO SECTION 3.2]

         The undersigned hereby irrevocably elects to exercise the right, 
represented by this Warrant Certificate, to purchase _______ shares of Common 
Stock all in accordance with the terms of Section 3.2 of the Underwriter's 
Warrant Agreement dated as of May 14, 1997 between HAWAIIAN NATURAL WATER 
COMPANY, INC. and Joseph Stevens & Company, Inc. The undersigned requests 
that certificates for such securities be registered in the name of 
__________________ whose address is ______________________________ and that 
such certificates be delivered to ______________________________ whose 
address is _________________________.

Dated:

                                       Signature________________________________
                                       (Signature must conform in all respects 
                                       to name of holder as specified on the 
                                       face of the Warrant Certificate.)


                                       _________________________________________
                                       (Insert Social Security or Other 
                                       Identifying Number of Holder)


                                      5

<PAGE>

                            [FORM OF ASSIGNMENT]



           (To be executed by the registered holder if such holder
                desires to transfer the Warrant Certificate.)


         FOR VALUE RECEIVED __________ hereby sells, assigns and transfers unto

________________________________________________________________________________

                (Please print name and address of transferee)

this Warrant Certificate, together with all right, title and interest 
therein, and does hereby irrevocably constitute and appoint 
__________________ Attorney, to transfer the within Warrant Certificate on 
the books of the within-named Company, with full power of substitution.

Dated: ___________________________     Signature:_______________________________
                                       (Signature must conform in all respects 
                                       to name of holder as specified on the 
                                       face of the Warrant Certificate.)



                                       _________________________________________
                                       (Insert Social Security or Other 
                                       Identifying Number of Holder)


                                      6