Document:

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     AGREEMENT setting forth the terms and conditions upon which TPG CAPITAL
CORPORATION ("TPG") is engaged by AQUA VIE BEVERAGE CORPORATION together with
any successors (collectively "Aqua Vie") to effect transactions ("the
Transactions") intended to merge or otherwise combine Aqua Vie with a United
States reporting company and for related matters.

SERVICES PROVIDED.

     Following its engagement, TPG and its affiliates will:

          Advise Aqua Vie on the structure of the Transactions and actions to be
taken by Aqua Vie in preparation for the completion of the Transactions;

          Merge Aqua Vie or exchange its stock with or assist in transferring
its assets into an existing United States corporation ("the Business
Combination") which is or will become a reporting company under Section 12(g) of
the Securities Exchange Act of 1934, as amended.

          Prepare, assist in preparing or review the agreement for the Business
Combination ("Business Combination Agreement");

          Prepare and file with the Securities and Exchange Commission a Form 10
or Form 8-K describing the Business Combination with the Company ("the Company"
hereinafter shall mean the United States corporation following the Business
Combination, unless the context requires otherwise);

          Take any other actions reasonably required of it to complete the
Transactions as contemplated by this agreement.

BUSINESS COMBINATION.

          TPG will provide, at its expense, a United States corporation with
audited financial statements showing no material assets or liabilities which is
or which TPG will cause to become a reporting company under Section 12(g) of the
Securities Exchange Act of 1934 ("the 1934 Act").

          Aqua Vie, at its election, will merge into, exchange its stock with,
or transfer its assets to the United States corporation. Upon the effective date
of the Business Combination, the officers and directors selected by Aqua Vie
will become the officers and directors of the United States corporation. The
name of the United States corporation following the Business Combination will be
chosen by Aqua Vie.

          The United States corporation will have authorized capital of
100,000,000 shares of common stock, $.0001 par value per share, and 20,000,000
shares of preferred stock, $.0001 par value per share.

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                                 PAGE NUMBER 2

        Upon the effective date of the Business Combination, there will be
issued and outstanding by the Company (i) 250,000 common shares issued to TPG
(ii) a common stock purchase warrant (described below) granted to TPG and (iii)
such common stock and other securities as designated by Aqua Vie in the Business
Combination Agreement.

PAYMENTS.

        Aqua Vie will pay TPG $100,000 for its services and the services of its
affiliates in regard to the Transactions. Payment of this amount will be made
$25,000 on execution of this agreement, $50,000 on the Business Combination and
$25,000 on the filing of a Form 10 or Form 8-K with the Securities and Exchange
Commission.

        In the event that Aqua Vie is a foreign corporation, or for other
reasons TPG deems sufficient, TPG may request Aqua Vie, and Aqua Vie agrees, to
deposit an amount equal to the remaining payments to be made after execution of
this agreement in escrow under an escrow agreement satisfactory to both parties.

        Aqua Vie hereby grants TPG a 5-year transferrable warrant ("TPG
Warrant") to acquire up to 250,000 registered shares of the Company's common
stock at a strike price of $1.00 per share. The Company will execute and deliver
to TPG a form of common stock purchase warrant agreement, warrant and warrant
exercise subscription not inconsistent with the terms provided herein.

        Aqua Vie will not at any time take or allow any action (whether by
reverse stock split or otherwise) which would have the effect of reducing the
absolute number of common shares owned or to be owned by TPG or its designee
under this agreement.

EXPENSES.

        TPG will bear its expenses incurred in regard to the Transactions,
including, without limitation, travel, telephone, duplication costs, and
postage.

        Aqua Vie will pay its own and third-party expenses (other than those of
TPG) including, without limitation, Federal, state and Nasdaq filing fees,
underwriting and market making costs, corporate financial relations, accounting
fees, duplicating costs and other expenses of the Company.
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                                 PAGE NUMBER 3

     AGREEMENT TO COMPLETE TRANSACTIONS.

     Aqua Vie agrees that it will timely take all steps necessary to complete
the Transactions to include, without limitation, causing audited financial
statements to be prepared in proper form for Aqua Vie; obtaining consents of the
Board of Directors and the shareholders of Aqua Vie, as required; causing all
necessary documents to be properly and timely prepared, executed, approved or
ratified, and filed, as appropriate; making timely and fully all required
payments related to the registration and listing of the Company's securities for
public trading, including filing fees; and timely taking all other actions
reasonably required of it to complete the Transactions.

     In the event that at any time Aqua Vie determines not to continue with the
Transactions TPG hereby grants to Aqua Vie the right to buyout the interest of
TPG in this agreement on the terms contained herein, in which case TPG agrees
not to seek specific enforcement of this agreement. In the event that Aqua Vie
elects not to continue with the Transactions (or if Aqua Vie does not timely
take all such steps and do all things as may be reasonably required of it to
complete the Transactions) TPG will be entitled to (i) retain the securities in
Aqua Vie acquired or to be acquired by TPG or its affiliates under this
agreement as though the Business Combination had occurred and (ii) receive in
full all payments to be due to it or its affiliates through and upon completion
of the Transactions as though those events had occurred provided, however, that
Aqua Vie will not be obligated to make any payment under this paragraph if the
failure to complete the Transactions is due to any actions or failure to act by
TPG or its affiliates. Upon payment of the buyout fee provided for herein, all
obligations of the parties under this agreement will cease except for
obligations which expressly or by their nature survive termination.

PERFORMANCE OF SERVICES BY OTHERS.

     From time to time, the achievement of certain results desired by the
Company, including the promotion of interest in its public securities, may be
enhanced by the services of other parties. These parties may include
consultants, advertising agencies, financial analysts and similar persons who
may, directly or indirectly, assist in creating interest in the Company's
securities. All compensation, costs and expenses of such parties, if engaged by
the Company, will be borne by it.
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                                 PAGE NUMBER 4

ACTIONS AND UNDERSTANDINGS FOLLOWING THE BUSINESS COMBINATION.

     Aqua Vie understands the obligations and responsibilities that will arise
in regard to its becoming a reporting company and the trading of its securities
in the public market. Aqua Vie understands that in order to achieve the greatest
market interest in its securities it, its officers and its directors, all or
some, will be required to continuously interact with the financial community.
This interaction will include, without limitation, timely filing of reports
under the Securities Exchange Act of 1934, including audited financial
statements; annual reports to shareholders and shareholder meetings; issuing
periodic press releases; and meetings and discussions with existing and
prospective brokers, market makers, investment bankers and institutions.

     Aqua Vie understands that the completion of the Transactions will not, in
itself, result in capital investment in the Company. The public status of the
Company and its introduction to market makers and others in the financial
community may result in investment interest. However, investment interest will
depend upon the successes of the Company, market conditions and other factors
over which neither TPG nor its affiliates have control.

     Aqua Vie understands that the ultimate judgement of the financial community
of the investment merits of the Company will depend upon the Company's ability
to successfully carry out its business plans and operations, to operate at a
profit and similar business considerations. Aqua Vie represents in good faith
that it currently has no reason to believe that it will not be able to complete
the Transactions and to achieve its business objections.

     During the Transactions and so long as TPG or an affiliate is a shareholder
of the Company, it will provide TPG continuing and reasonable access as
requested to all information concerning the Company's operations, past, current
and intended, including, without limitation, full access to the financial
records of the Company.

COMPLIANCE WITH SECURITIES LAW.

     Now and following the Business Combination, as applicable, Aqua Vie
represents and warrants that:

     Aqua Vie and its affiliates will at all times observe and comply with
Federal and State securities laws, rules and regulations incident to the
issuance and trading of the securities of the Company and will take all steps
reasonably required within its control to prohibit any persons, whether or not
affiliated with Aqua Vie, from engaging in any transactions in contravention of
such laws, rules and regulations.

     Aqua Vie and its affiliates will furnish all information and documents
concerning it and its affiliates required for the preparation and filing of a
Form 8-K or Form 10-SB by the Company and will assure that such information is
complete and accurate and does not contain
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                                 PAGE NUMBER 5

any material misstatement or omit any material information. Toward that end,
Aqua Vie and its affiliates will timely provide all requested information and
documents, including officers' and directors' questionnaires.

       Aqua Vie and its affiliates will not at any time knowingly engage in any
activity which would constitute a prohibited market manipulation of the
securities of the Company and will take all steps reasonably required within
its control to prohibit any officer, director, other affiliate, agent or
employee from engaging in such conduct.

       The Company will not at any time issue securities registered on Form S-8
or issued pursuant to Regulation S of the General Rules and Regulations of the
Securities and Exchange Commission without (i) prior written notification to
TPG and (ii) either the written content of TPG or a written opinion of qualified
counsel that neither the issuance nor intended use of such securities will
violate any law, rule, or regulation under the Securities Act of 1933 or the
Securities Exchange Act of 1934.

       The Company will not issue any securities to any person for the
promotion or maintenance of a trading market in the Company's securities without
first receiving an opinion of qualified counsel that such issuance will be in
accord with securities laws, rules and regulations and will not, directly or
indirectly, receive from such persons any capital by loan, investment or
otherwise resulting from the sale or pledge of such securities.

       For not less than 36 months following the execution of this agreement,
the Company will timely make all required Federal, state and other filings
necessary to allow the public trading of the Company's securities and, if the
Company's securities are then quoted on the Nasdaq Stock Market or listed on
any regional or national exchange, will take all actions necessary to maintain
such status for the Company's securities.

       For so long as TPG or its designee in an owner of any of the securities
to be received by it under this agreement, TPG shall have the right to enforce
the provisions of this paragraph and to seek damages for any violation thereof
by the Company, including damages for any reduced value of the TPG securities
if resulting from such violation.

NOTICES.

       Any notices required or permitted under this agreement shall be deemed
to have been given when delivered in writing by hand, certified mail (return
receipt requested) or commercial courier, such as FedEx, to the following
addresses or to such other addresses as may have been given to each party in
the manner provided for in this paragraph.

       In the case of Aqua Vie or the Company to

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                                 PAGE NUMBER 6

        Aqua Vie Beverage Corporation
        333 South Main Street
        Ketchum, Idaho 83340

        In the case of TPG to

        TPG Capital Corporation
        1504 R Street N.W.
        Washington, D.C. 20009

ARBITRATION.

        SCOPE. The parties hereby agree that any and all claims (except only for
requests for injunctive or other equitable relief) whether existing now, in the
past or in the future as to which the parties or any affiliates may be adverse
parties, and whether arising out of this agreement or from any other cause, will
be resolved by arbitration before the American Arbitration Association within
the District of Columbia.

        CONSENT TO JURISDICTION, SITUS AND JUDGEMENT. The parties hereby
irrevocably consent to the jurisdiction of the American Arbitration Association
and the situs of the arbitration within the District of Columbia. Any award in
arbitration may be entered in any domestic or foreign court having jurisdiction
over the enforcement of such awards.

        APPLICABLE LAW. The law applicable to the arbitration and this agreement
shall be that of the District of Columbia, determined without regard to its
provisions which would otherwise apply to a question of conflict of laws.

        DISCLOSURE AND DISCOVERY. The arbitrator may, in its discretion, allow
the parties to make reasonable disclosure and discovery in regard to any matters
which are the subject of the arbitration and to compel compliance with such
disclosure and discovery order. The arbitrator may order the parties to comply
with all or any of the disclosure and discovery provisions of the Federal Rules
of Civil Procedure, as they then exist, as may be modified by the arbitrator
consistent with the desire to simplify the conduct and minimize the expense of
the arbitration.

        RULES OF LAW. Regardless of any practices of arbitration to the
contrary, the arbitrator will apply the rules of contract and other law of the
jurisdiction whose law applies to the arbitration so that the decision of the
arbitrator will be, as much as possible, the same as if the dispute had been
determined by a court of competent jurisdiction.

        FINALITY AND FEES. Any reward or decision by the American Arbitration
Association shall be final, binding and non-appealable except as to errors of
law or the failure of the arbitrator to adhere to the arbitration provisions
contained in this agreement. Each party to the
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                                 PAGE NUMBER 7

arbitration shall pay its own costs and counsel fees except as specifically
provided otherwise in this agreement.

     MEASURE OF DAMAGES. In any adverse action, the parties shall restrict
themselves to claims for compensatory damages and/or securities issued or to be
issued and no claims shall be made by any party or affiliate for lost profits,
punitive or multiple damages.

     COVENANT NOT TO SUE. The parties covenant that under no conditions will any
party or any affiliate file any action against the other (except only requests
for injunctive or other equitable relief) in any forum other than before the
American Arbitration Association, and the parties agree that any such action, if
filed, shall be dismissed upon application and shall be referred for arbitration
hereunder with costs and attorney's fees to the prevailing party.

     INTENTION. It is the intention of the parties and their affiliates that all
disputes of any nature between them, whenever arising, whether in regard to this
agreement or any other matter, from whatever cause, based on whatever law, rule
or regulation, whether statutory or common law, and however characterized, be
decided by arbitration as provided herein and that no party or affiliate be
required to litigate in any other forum any disputes or other matters except for
requests for injunctive or equitable relief. This agreement shall be interpreted
in conformance with this stated intent of the parties and their affiliates.

     SURVIVAL. The provision for arbitration contained herein shall survive the
termination of this agreement for any reason.

ASSIGNMENT.

     In order to better carry out the Transactions, TPG may assign all or parts
of this agreement provided that the assignee agrees to all the terms and
conditions of this agreement pertaining to such assignment. An assignment will
not relieve TPG of any of its obligations under this agreement.

CONFIDENTIALITY.

     As a result of entering into this agreement Aqua Vie will have access to
information which TPG regards as confidential and proprietary regarding TPG's
methods of carrying out the Transactions (collectively the "Business of TPG").
Aqua Vie agrees that it will not, except as reasonably required pursuant to this
Agreement, use itself, or divulge, furnish, or make accessible to any person any
knowledge, knowhow, techniques, or information with respect to TPG or the
Business of TPG without the prior written agreement of TPG.

TERMINATION.

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                                 PAGE NUMBER 8

     TPG may terminate this agreement, without further obligation or liability,
at any time (i) that TPG has a reasonable basis to believe that any aspect of
the transactions covered by this agreement would constitute a fraud or deception
on the market or (ii) that the Company fails to meet its obligations under this
agreement in a manner which would constitute a material breach. In any such
case, TPG will be entitled to the buyout fee provided for in this agreement.

MISCELLANEOUS.

     COVENANT OF FURTHER ASSURANCES. The parties agree to take any further
actions and to execute any further documents which may from time to time be
necessary or appropriate to carry out the purposes of this agreement.

     SCOPE OF AGREEMENT. This agreement constitutes the entire understanding of
the parties. No undertakings, warranties or representations have been made other
than as contained herein, and no party shall assert otherwise. This agreement
may not be changed or amended orally.

     CURRENCY. All references to currency in this agreement are to United States
Dollars.

     REVIEW OF AGREEMENT. Each party acknowledges that it has had time to review
this agreement and, as desired, consult with counsel. In the interpretation of
this agreement, no adverse presumption shall be made against any party on the
basis that it has prepared, or participated in the preparation of, this
agreement.

EFFECTIVE DATE.

     The effective date of this agreement is August 31, 1999.
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                                 PAGE NUMBER 9

     IN WITNESS WHEREOF, the parties have approved and executed this agreement.

TPG CAPITAL CORPORATION

----------------------------------
President

AQUA VIE BEVERAGE CORPORATION

----------------------------------
PRESIDENT
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                                 PAGE NUMBER 10

             WARRANTIES BY OFFICERS, DIRECTORS AND OTHER AFFILIATES

     Each of the undersigned officers, directors and other affiliates of Aqua
Vie agree that they have read this agreement and that they (i) will not violate
any of the provision of this agreement relating to compliance with securities
laws, rules and regulations (ii) will not violate any provision of this
agreement relating to confidentiality of the business of TPG and (iii) consent
to be governed by the provisions of this agreement relating to arbitration in
the case of any claims arising from their warranties herein.

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                                 PAGE NUMBER 11

                              PERSONAL GUARANTEES

     In consideration of benefits to be received by Aqua Vie and to them
personally, the following persons, individually and severally, (i) guarantee all
payments required of Aqua Vie under this agreement as and when due (ii) covenant
to take all actions and do all things reasonably required to carry out the
intent and purpose of this agreement, whether as officers, directors,
shareholders or otherwise and (iii) consent to be governed by the provisions of
this agreement relating to arbitration.

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                                             -----------------------------------<PAGE>   1

                             MANUFACTURING AGREEMENT

           This Manufacturing Agreement ("The Agreement") is made as of this 5th
day of March 1999, between LYONS MAGNUS, a California corporation, having its
principal place of business at 1636 South Second Street, Fresno, California
(herein after "Packer") and AQUA VIE BEVERAGE CORPORATION, a Delaware
Corporation, having its principal place of business at 333 South Main Street
Suite 201, Ketchum, Idaho (herein after "Company").

RECITALS

           WHEREAS Packer is engaged in the business of preparing and
aseptically processing fruit, fruit juices, beverage products and other related
commodities in Fresno, California and Florence, Kentucky;

           WHEREAS Company is engaged in the business of developing, marketing
and selling certain products including various proprietary beverages; and

           WHEREAS Company desires to retain Packer to aseptically process and
package their proprietary beverage products for it on the terms and conditions
as set forth herein.

           WHEREAS Packer proposes to provide at its best available price to
utilize its organization and production capabilities support the Company in
development, production and distribution of its products to the extent desired
by the Company, so that the Company may emphasize product development, marketing
and sales with all other activities at its option fully supported by the
organization and production capabilities of Packer.

           AGREEMENT

      For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Packer and Company agree as follows.

I.    Product Specifications: Processing and Packaging.

      A.    Processing: For the term of this Agreement, Packer will aseptically
            process and package for Company several Company proprietary beverage
            products known as Hydrators and Nutritionals, other Company
            developed or acquired proprietary products, Smoothies and other
            similar products (the "Products"). In accordance with the
            specifications as developed jointly by Company and Packer, (the
            "Specifications"), (Exhibit A) and the terms and conditions of this
            Agreement. Packer shall initially process and package seven flavors
            of Hydrators(TM) and three Nutritional products (the "E Line"(TM),
            Elixir(TM), Empower(TM), and Ecstasy(TM)) in either of the two
            containers as listed below in

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            Section B, and a line of 3 or more Smoothies provided by Packer.
            During the term of this Agreement, Company may request Packer to
            process and package additional flavors and/or package configurations
            upon thirty (30) days written notice to Packer providing Packer has
            the capacity and available equipment to produce such products and
            Company agrees to pay the price that Packer demands for such
            production.

            (1). A line of Smoothie products for retail bottles have been
            developed by Packer and will require production test runs for each
            flavor to verify shelf life stability and other quality attributes
            all at Packer's expense. Test runs were conducted on Peach and
            Raspberry Smoothies on February 12, 1999, and samples in PET bottles
            have been delivered to the Company for evaluation and flavor
            enhancement. Additional flavors will be produced and delivered to
            the Company from time to time upon request. Shelf life studies will
            be conducted for sixty (60) days from the test production and if
            approved by Packer, and the cost parameters are mutually acceptable,
            the Smoothie product will then be released to Company.

            (2). Smoothie products developed by Packer for retail bottles will
            be under license to be exclusively enhanced, produced and sold by
            the Company for a period of 6 (six) months after shelf life studies
            are completed and a flavor is released to the Company for sale.
            Thereafter, the exclusive production and sales right of the Company
            will continue as to a flavor provided the Company sells not less
            than an aggregate of 50,000 cases in the first per year of all
            Smoothie flavors, and 50,000 cases thereafter per year, increased by
            10% per year over the preceding year. If this sales level is not
            attained, the company will have a non-exclusive right to produce and
            sell a Smoothie flavor.

      B.    Packaging: The Products shall be packaged in either 16 ounce and/or
            12 ounce PET bottles with 28 mm openings with either flat or sports
            closures. Such bottles will be further packaged in cases consisting
            of 24 bottles as further described in the Specifications as set
            forth hereto in Exhibit A. Packaging in Company's gift packs or in
            less than 24 bottle cases may be covered by separate cost quote.
            Bottles shall be labeled with full wrap around labels with all
            artwork and plate costs to be charged to Company. Company will
            utilize Packer's label vendor unless the Vendor's costs are not
            competitive. Packer, in any instance, must approve any new label
            vendors.

      C.    Labeler: In the event Company elects to utilize a full sleeve shrink
            label, a specialized label applicator will be purchased by Company
            for the approximate sum of $95,000 plus conveyor modifications of
            $10,000 for a total of $105,000 for use in Packer's line to produce
            Company products, and such other non-competitive products as may be
            agreed upon from time to time between the parties, subject to
            availability limitations and payment for use. Packer will install
            this labeler and components at a cost to be borne by Packer of
            approximately $15,000 to $20,000. Packer will maintain equipment in
            top

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            condition at all times. If Packer utilizes this equipment for other
            projects, Packer agrees to pay Company at the rate of $.10 per case
            for all throughput cases. The equipment can not be used for projects
            that involve products that directly compete with the Products of the
            Company as defined herein or subsequently added. Packer will have
            the option of purchasing the equipment from Company at the
            termination of the Agreement based upon a twenty percent per year
            depreciated value. At the end of five years, Packer may acquire
            ownership of the equipment for $1, however, the Company may still
            utilize said equipment without charge for labeling its products, and
            Packer will replace the Labeler with new equipment if considered
            necessary by Company at no cost to Company for acquisition or use.

      D.    Company is aware and understands that it is responsible for and will
            pay all costs associated with the changing of flavors and/or
            container sizes which are detailed on Packer cost quotations in the
            form set forth in Exhibit B.

      E.    Packer agrees to process a minimum of 50,000 cases of Product per
            month, exclusive of the Smoothie product production, for the Company
            based upon quarterly projections received from the Company. Forward
            reserve volume will be calculated by reserving one hundred fifty
            percent of the preceding quarterly volume to a maximum of 100,000
            cases per month. Example: If Company orders and ships 100,000 cases
            in Quarter 1, Packer will then commit to processing 150,000 cases in
            Quarter 2, adjusted for seasonality. When Company volume reaches
            100,000 cases per month for 3 continuous months then the volume will
            again be increased by a factor of 125% per quarter.

      F.    Packer agrees in good faith to provide volume discounts to Company
            that reflect Packer's ability to secure such discounts by its
            purchasing.

      G.    All Products shall be aseptically processed and packaged at Packer's
            facility in Fresno, California.

      H.    Cross Sales: (1) A vital issue to the spirit of this agreement, is
            the concept of "cross sales" of each party's products by the other
            party. "Cross Sales" will include but are not limited to the Packer
            providing to the Company the exclusive rights to label, market, and
            sell the product line called "Smoothies", originally developed by
            the Packer subject to the conditions set forth above, other
            Packer-label products; and the Company providing to the Packer the
            option to have the exclusive right to market and sell, through a
            licensing agreement (or some mutually agreed to alternative method),
            Aqua Vie Products through the Packer's Food Services Distribution
            Network, subject to potential acceptable sales demand therefor.

            (2) From time to time, at the request of the Company, Packer will
            make available to Company on an exclusive basis for enhancement,
            production and

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            sale any Packer-label products for all sales exclusive of Packer's
            Food Services Distribution Network. Said exclusive license will
            continue from year to year if Company sells 50,000 or more cases of
            said product during a year, or averaged over a two year period,
            whichever is less. If said sales levels are not met, the Company
            shall have a non-exclusive right for production and sale. Whether or
            not exclusive, packer will not offer products provided by it to
            Company hereunder to competitors or entities if it will derogate or
            detract from the sales activities of the Company.

    I. The Company may distribute and sell the Products worldwide; however,
    Products bottled by Packer for foreign sales will be subject to Company
    satisfying import compliance.

II.   Sourcing of Raw Materials and Packaging.

      A.    Packer will make available at cost, plus appropriate loss factors
            based on volume as setout in "Specifications" Exhibit A, any raw
            materials and packaging supplies currently maintained in the
            Packer's raw material inventory requested by the Company for use in
            this project. Special raw materials currently not inventoried by
            Packer which Company specifies as a necessary component in the
            Products formulation and packaging of its Products, not including
            the production of the Smoothie product which costs shall be covered
            separately, shall also be purchased by the Packer or the Company to
            support this project at Company's expense. Special flavor components
            shall be timely furnished to the Packer by the Company in order to
            support production schedules. Packer shall bear all risk of loss
            based upon its failure to account for or negligence leading to
            inventory loss on all of the above mentioned raw materials and
            flavor components and shall be accountable for these supplies and
            materials and will provide inventories on a monthly basis or more
            often if required to adequately manage the production function.

      B.    Packer will review all raw material requirements and provide
            appropriate inbound quality control and inventory procedures to
            assure that all raw materials meet the Specifications and are
            adequately accounted for.

      C.    Company shall place orders for the Products approximately four weeks
            prior to expected shipment date. Upon receipt of a valid purchase
            order, Packer shall, within three (3) working days of receipt
            thereof, forward an invoice for said order with appropriate detail
            acceptable to Company. Company will then forward funds or letter of
            credit to Packer who will allow Packer to order raw materials and
            schedule processing time. Products will be produced no later than
            three 3 weeks after receipt of funds or letter of credit. At the
            conclusion of each run, a final invoice will be prepared indicating
            the exact number of cases of Products produced with a resulting
            charge or credit, with any such charge amount to be cleared prior to
            any subsequent orders being accepted.

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      D.    Packer shall bear risk of loss based on failure to account for
            damage to or inventory loss on raw materials and supplies. Packer
            shall maintain books and records relating to all such raw materials
            and will provide detailed schedules of raw material inventories on
            hand as verified by a physical inventory observation on a monthly
            basis if required to meet Company's production requirements.

III.  Manufacturing

      A.    Packer will process and package Products for Company in accordance
            with the Specifications. Packer may change Specifications that
            relate to the production of the Products from time to time and any
            such changes will only be effective upon written notice from Packer
            to Company and approved in writing by Company, which approval shall
            not be unreasonably withheld. Company may change Specifications that
            relate to matters other than production scheduling of the Product
            from time to time and any changes will only be effective upon
            fifteen (15) days written notice from Company to Packer and must be
            approved in writing by Packer.

      B.    Packer shall store all products and raw materials at a temperature
            that is suitable to maintain the quality of the Products in
            accordance with the Specifications.

      C.    Packer will maintain production records on all raw materials
            utilized in sufficient detail so that Packer and Company may track
            product batch numbers to specific raw materials and finished goods
            code numbers. Prior to the acceptance of incoming raw materials,
            Packer will test samples of such raw materials to ensure that these
            raw materials meet the Specifications. Raw materials failing to meet
            the Specifications will be returned to the vendor and Company shall
            have no obligation to pay Packer for any non-conforming raw
            materials returned to vendor by Packer. Manufacturing yield loss on
            production runs of twenty (20) hours shall be no more than five
            percent. Manufacturing yield loss on production runs exceeding
            twenty (20) hours shall be no more than three percent. Packaging
            yield loss shall be less than two percent (flavor and size change
            issues excepted). Manufacturing yield loss on production runs of
            less than 20 hours will be detailed on cost quotations on a form as
            set out in Exhibit B.

      D.    Products shall be processed on tubular heat exchange equipment to
            include appropriate heating, hold times and cooling to conform to
            the Specifications.

      E.    The fees provided as set forth in Exhibit B shall constitute payment
            for all services provided by Packer hereunder including, without
            limitation, all product processing, raw material receiving, quality
            control procedures, microbiological testing of the product, and
            record keeping required hereunder

                                       5
<PAGE>   6

            including the production and accounting functions necessary to
            fulfill documentation of packaging of raw materials by lot numbers
            to correspond with finished goods code numbers on all Products,
            warehousing, accounting, product development, and general
            administrative costs.

IV. Warehousing and Testing

      A.    For the term of this Agreement Packer agrees:

            1)    To conduct all microbiological testing of the Products as
                  required by the Specifications and hold all finished Products
                  for a period of no less than six (6) days pending
                  microbiological approval and release for shipment.

            2)    To transfer all finished Products to a warehouse facility in
                  Fresno, California that will be adequately ventilated to
                  maintain the quality of the Products in accordance with the
                  Specifications or, at the option of the Company, to some other
                  warehouse facility.

            3)    To warehouse all raw materials in appropriate storage areas in
                  Fresno, California, which will preserve the quality of such
                  raw materials to enable such raw materials to meet the
                  Specifications.

            4)    To receive and process, at the Company's option, all inbound
                  orders from Company for Products, to generate bills of lading
                  and load Products for shipment as directed by Company with all
                  complete inventory control; and

            5)    To provide finished goods, accounting systems, and inventory
                  control documentation to Company on a monthly basis.

      B.    For the term of this Agreement, Company, at its option, agrees:

            1)    To forward orders for Products to Packer on a monthly basis
                  which will specify the dates the Products shall be furnished
                  and available for shipment to Company's customers; and

            2)    To arrange for shipping of all Products F.O.B. Packer's
                  warehouse in Fresno, California. Packer can assist in
                  arranging transportation if required by Company, however,
                  payment guarantees will be necessary.

V. General

      A.    Company will be assigned an account executive, Mr. Larry Young, who
            will be responsible for the management and administration of this
            agreement on behalf of Packer including and without limitation all
            areas of manufacturing and processing of the Products from both a
            technical and business standpoint.

                                       6
<PAGE>   7

      B.    Upon receipt of orders from Company, Packer will schedule same into
            normal production to ensure a timely delivery of all Products in
            accordance with Section II.C.

      C.    Packer will place code markings on all finished Products that
            include such Products' day code and "use by date" and which conform
            in all respects to the Specifications. The code markings will
            include bar coding and item numbering on all secondary packaging and
            master pallet identification labels.

      D.    Packer will provide to Company a certificate indicating proof of
            product liability insurance. This certificate shall show liability
            coverage of no less than $10,000,000 in the aggregate and $1,000,000
            per occurrence and shall name the Company as an Additional Insured.

      E.    Company shall take delivery of the finished Products no later than
            thirty (30) days from the date of production.

      F.    Packer will approve or submit changes to any proposed press release
            containing their name within 24 hours of submission to them or
            within that same time provide written response containing the
            reasons for their objection.

      G.    Packer intends to make available its organizational, production, and
            purchasing capabilities to facilitate the business of the Company to
            the full extent desired thereby, subject to other obligations of
            Packer, so that the Company may to the extent desired thereby devote
            its attention to marketing, product development and sales activities
            without the distraction of developing its own capabilities in the
            areas which may be supported by Packer.

VI. Effective Term

      The term of this Agreement shall commence on the date this Agreement is
      signed by the parties and will continue in full force for a term of three
      consecutive years from that date. The term of this agreement will be
      renewable on a year to year basis with 12 month written notice by Company
      to Packer.

VII. Forecasts

      Upon execution hereof, Company shall provide Packer with a written ninety
      (90) day forecast of its needs for production of the Products and shall
      thereafter update this forecast on a monthly basis. Estimates contained in
      any forecast shall not be deemed to constitute a binding commitment to
      purchase on behalf of the Company.

                                       7
<PAGE>   8

VIII. Termination

      A.    This Agreement may be terminated:

            1)    By Packer, immediately without notice, if Company shall become
                  insolvent, or shall file a voluntary petition in bankruptcy,
                  or there is a filing of an involuntary petition in bankruptcy
                  against Company, or an appointment by a court or a temporary
                  or permanent receiver, trustee, or custodian for Company or
                  Company's business or if Company shall make a general
                  assignment for the benefit of its creditors except to prevent
                  an involuntary petition to bankrupt the Company by creditors
                  due to past performance of the Packer.

            2)    By Company, immediately without notice, if Packer shall become
                  insolvent, or shall file a voluntary petition in bankruptcy,
                  or there is a filing of an involuntary petition in bankruptcy
                  against Packer, or an appointment by a court or a temporary or
                  permanent receiver, trustee or custodian for Packer or
                  packer's business or if Packer shall make a general assignment
                  for the benefit of it's creditors; except to prevent an
                  involuntary petition to bankrupt the Packer by creditors due
                  to past performance of the Company.

            3)    By either party, with cause, upon thirty (30) days written
                  notice to the other party; except in the case of product
                  recall due to negligence on the part of the Packer.

            4)    By either party, upon the breach of this Agreement by the
                  other party and thirty (30) days advance written notice for
                  the non-breaching party to the breaching party that specifies
                  the breach; provided, however, that if the breaching party
                  shall remedy such breach during such thirty (30) day period,
                  then any such notice of termination shall be null and void;
                  except for non-payment or failure to pay in a timely manner as
                  contract requires, then contract can be terminated on ten (10)
                  days written notice by Packer to Company.

            5)    Thirty (30) days following receipt by one party hereto of the
                  notice, as described below:

                        If either party hereto (the "Defaulting Party") is at
                        any time during the effective term of this Agreement
                        prevented or delayed in complying with any provision of
                        this Agreement by reason of matters such as acts of God,
                        strike, civil commotion, riots, war, revolution, acts of
                        governments, or any similar cause which is reasonably
                        beyond the control of the Defaulting Party, but
                        excluding lack of funds, unless caused by one of the
                        parties

                                       8
<PAGE>   9

                        against the other due to neglect, or failure to perform
                        according to the terms of this Agreement; then the
                        duties and obligations of both parties hereto shall be
                        suspended for the duration of the event preventing
                        proper performance under this Agreement; provided,
                        however, that if such prevention or delay shall continue
                        in excess of thirty (30) days, the other party hereto
                        shall immediately have the right to terminate this
                        Agreement upon thirty (30) days prior written notice to
                        the defaulting party.

      B.    In the event this Agreement is terminated:

            1)    All obligations of each party shall be adjusted up to and
                  including the date of termination; except in the instance of
                  Products recalled due to negligence of the Packer, which will
                  enure to the time when all settlements are satisfied between
                  the Company and it's customer(s).

            2)    Packer shall, within thirty (30) days following the date of
                  termination, destroy or cause to be destroyed in compliance
                  with any and all applicable regulations, any finished Product
                  which is not in compliance with this Agreement, and

            3)    Company shall within thirty (30) days following the date of
                  termination, remove all unused raw materials supplied by or
                  paid for by it hereunder, which are at Packer's facilities.

      C.    In addition to any other rights of Packer under this Agreement, if
            within thirty (30) days following the date of termination, Company
            shall not have paid in full for the finished Products or raw
            materials, then Packer shall be entitled to sell the same to satisfy
            any outstanding obligation or liability owed by Company to Packer at
            the date of termination, but at all times must meet the requirements
            and restrictions as set forth in Agreements between Company and it's
            customers.

IX. Warranties; Indemnities

      A.    Packer warrants that all of the Products supplied to Company
            pursuant to this Agreement shall be free from defects and shall
            conform in all respects to the Specifications as may be modified by
            the written Agreements of the parties from time to time.

      B.    If any of the Products do not conform in all respects to the
            Specifications, Company shall have the right to reject such Products
            provided that it gives Packer notice in writing within ten (10) days
            of receipt of such shipment at final destination point as identified
            by Company at time of shipment as THE FINAL DESTINATION POINT.
            Company shall return any rejected Products

                                       9
<PAGE>   10

            to the Packer at Packer's expense unless otherwise instructed by
            Packer. Company shall not be obligated to pay the Processing Fee on
            any rejected Products, and to the extent such Processing Fee has
            been paid by Company prior to rejection, Packer shall reimburse
            Company for such Processing Fee as soon as practicable after
            rejection of any such Products, Company shall not be required to pay
            Packer for any raw materials consumed in the processing of any
            rejected Products, and to the extent any rejected Products was
            produced from raw materials paid for by Company, Packer shall
            reimburse Company for the cost of any such raw materials as soon as
            practicable after rejection of such Products.

      C.    Packer agrees to indemnify and hold harmless Company and it's
            directors, officers, employees, agents and representatives from and
            against any loss, cost, liability or expense (including any
            reasonable attorney's fees) arising from or related to any claim by
            any such third party alleging injury to such third party resulting
            from defects in the Product(s ) supplied hereunder resulting from
            defects in the manufacturing of the Product(s) supplied hereunder.

      D.    Company agrees to indemnify and hold harmless Packer and its
            directors, officers, employees, agents and representatives, from and
            against any loss, cost, liability or expense, (including reasonable
            attorney's fees) arising from or related to any claim by any third
            party alleging injury to such third party resulting from defects in
            the Products supplied hereunder resulting in defects in the Products
            from shipping, marketing and storage by Company.

X. Integration

      This Agreement supersedes all prior agreements and negotiations between
      the parties respecting the subject matter hereof and shall not be varied,
      amended or supplemented except by writing of subsequent or even date
      executed by the authorized representatives of the parties.

XI. Successors and Assigns

      A.    This Agreement and the rights and obligations arising herefrom are
            binding upon the successors or permitted assigns of the parties
            hereto.

      B.    Packer may not assign this Agreement in whole or in part by
            operation of law or otherwise without the prior written consent of
            Company. Any attempted assignment in derogation or this provision
            shall be null and void.

                                       10
<PAGE>   11

XII. Authorized Representatives

      The individuals signing this Agreement represent and warrant that they are
      authorized to execute this Agreement by and on behalf of their respective
      corporations and to bind such corporations to the terms and conditions
      hereof.

XIII. Inspection Rights

      Upon forty-eight (48) hours advance written notice to Packer, Company
      and/or its authorized representatives may enter the premises of Packer (i)
      to determine whether Packer is complying with the provisions of this
      Agreement, (ii) to observe and inspect the raw materials inventoried,
      (iii) to observe Packer's testing and quality control procedures, and (iv)
      to inspect the books and records of Packer relating to this Agreement and
      the transactions contemplated hereby. Company and its authorized
      representatives shall be permitted to make and retain copies from Packer's
      books and records.

XIV. Notices

      Any notice or report provided for in this Agreement shall be deemed
      sufficiently given when sent by certified or registered mail, postage
      prepaid, personally delivered or by overnight mail as follows:

If it is for Packer, to:

                                          Lyons Magnus
                                          Attn: Robert Smithcamp
                                          1636 S. Second Street
                                          Fresno, CA  93702

If it is for Company, to:
                               By Mail:
                                          Aqua Vie Beverage Corporation
                                          Attn: Tom Gillespie
                                          P.O. Box 6759
                                          Ketchum, ID  83340

                               Or if by express mail delivery:
                                          Aqua Vie Beverage Corporation
                                          Attn: Tom Gillespie
                                          333 S. Main Street Ste. 201
                                          Ketchum, ID  83340

                                       11
<PAGE>   12

                     The parties may, from time to time, specify in writing
           other addresses for this purpose. Any notice, consent or other
           communication required or permitted to be given hereunder shall be
           deemed to have been given on the date of mailing, or personal
           delivery thereof and shall be conclusively presumed to have been
           received by the second business day following the date of mailing or,
           in the case of personal delivery, the actual day of personal delivery
           thereof, except that a change of address shall not be effective until
           actually received.

XV. Governing Law

           This Agreement is made under and shall be governed by and construed
           in accordance with the laws of the State of California; without
           reference to conflict of law principals.

XVI. Miscellaneous

            A.    The headings and captions contained in this Agreement are of
                  reference purposes only and shall not affect the meaning or
                  interpretation of the Agreement.

            B.    This Agreement may be executed in counterparts, each of which
                  shall be deemed to be an original, but all of which together
                  shall constitute but one and the same instrument.

            C.    If any article, section, subsection or provision of this
                  Agreement, or the application of such article, section,
                  subsection or provision, is held illegal, invalid or
                  unenforceable under present or future laws effective during
                  the term of this Agreement, it is the intention of the parties
                  hereto that the remainder of this Agreement shall not be
                  affected thereby, and it is also the intention of the parties
                  that in lieu of any such illegal, invalid or unenforceable
                  clause or provision, there be added to this Agreement by the
                  court or other party making such determination of a clause or
                  provision as similar in terms and substance to such clause or
                  provision as may be real, valid and enforceable.

            D.    The exhibits are part of this Agreement as if set forth fully
                  herein.

            E.    Subject to the terms and conditions of this Agreement, each of
                  the parties will use all reasonable efforts to take, or cause
                  to be taken, all action, and to do, or cause to be done, all
                  things necessary, proper or advisable, under the applicable
                  laws and regulations or otherwise, to fulfill its obligations
                  under this Agreement and to consummate the transactions
                  contemplated by this Agreement.

                                       12
<PAGE>   13

XVII. Time

           Time is of the essence to this Agreement.

           IN WITNESS WHEREOF, Company and Packer have executed this Agreement
by their duly authorized representative this ____________ day of
________________, 1999.

<TABLE>
<CAPTION>

             <S>                                     <C>
             Packer:                                 Company:

             Lyons Magnus                            Aqua Vie Beverage Company

             By:                                     By:
                    ------------------------               -----------------------

             Title:                                  Title:
                    ------------------------               -----------------------

             Date                                    Date: -----------------------
                    ------------------------
</TABLE>

                                       13

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