Document:

Exhibit
4.10

 

EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON
STOCK PURCHASE WARRANT

 

REEDS,
INC.

 

	Warrant
    Shares: 1,000,000	Initial
    Issuance Date: December 11, 2020
	No.
    S-1	 

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, Raptor/Harbor Reeds SPV LLC,
a Delaware limited liability company or its assigns (the “Holder”) is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Initial Issuance Date (the
“Initial Exercise Date”) and on or prior to the close of business on December 11, 2025 (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Reeds, Inc., a Delaware corporation (the “Company”),
up to ONE MILLION (1,000,000) shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock.
The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section
2(b). This Warrant is issued pursuant to that certain Satisfaction, Settlement and Release of Claims by and between the Holder
and the Company dated December 11, 2020 (the “Satisfaction Agreement”).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Satisfaction
Agreement.

 

	 	a)	“Business Day” means any day except
any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.
	 	 	 
	 	b)	“Commission” means the United States
Securities and Exchange Commission.

 

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	 	c)	“Common Stock” means the common stock
of the Company, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified
or changed.
	 	 	 
	 	d)	“Common Stock Equivalents” means
any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible
into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
	 	 	 
	 	e)	“Person” means an individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.
	 	 	 
	 	f)	“Rule 144” means Rule 144 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.
	 	 	 
	 	g)	“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder.
	 	 	 
	 	h)	“Subsidiary” means any subsidiary
of the Company as set forth in the SEC Reports, and shall, where applicable, also include any direct or indirect subsidiary of
the Company formed or acquired after the date hereof.
	 	 	 
	 	i)	“Trading Day” means a day on which
the principal Trading Market is open for trading.
	 	 	 
	 	j)	“Trading Market” means any of the
following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT,
the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, OTCQB or OTCQX
(or any successors to any of the foregoing).
	 	 	 
	 	k)	“Transfer Agent” means Transfer Online,
the current transfer agent of the Company, with a mailing address of 317 SW Alder St # 200, Portland, Oregon 97204, and any successor
transfer agent of the Company.

 

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Section
2. Exercise.

 

a)
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any
time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such
other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the
Holder appearing on the books of the Company) of a duly executed and completed facsimile copy (or e-mail attachment) of the Notice
of Exercise in the form annexed hereto and, within three (3) Trading Days of the date of said Notice of Exercise is delivered
to the Company, payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check
drawn on a United States bank or, if available, pursuant to the cashless exercise procedure specified in Section 2(c) below is
specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion
guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased
all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered
to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal
to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of
Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within
two (2) Business Days of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree
that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the
number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $0.644, subject to adjustment
hereunder (the “Exercise Price”).

 

c)
Cashless Exercise. This Warrant may also be exercised, in whole or in part, at such time by means of a “cashless
exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where:

 

	 	(A)
    =  	the last VWAP immediately preceding the time of delivery of the Notice of Exercise giving rise to the applicable “cashless
    exercise”, as set forth in the applicable Notice of Exercise (to clarify, the “last VWAP” will be the last
    VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading
    Market is open, the prior Trading Day’s VWAP shall be used in this calculation);
	 	 	 
	 	(B)
    = 	the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X)
    =  	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
    if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrant Shares being issued may be tacked on to the holding period of this Warrant. The Company agrees not to take any
position contrary to this Section 2(c).

 

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“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d)
in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good
faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company.

 

d)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Transfer Agent to transmit the Warrant Shares purchased
hereunder to the Holder by (a) crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-
sale limitations pursuant to Rule 144 or (b) otherwise by physical delivery of a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant
to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is one (1) Trading Day after
the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). For purposes
of Rule 200 under Regulation SHO of the Securities Act, the Warrant Shares shall be deemed to have been issued, and Holder shall
be deemed for all such purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has
been exercised upon delivery of the Notice of Exercise, irrespective of the date of delivery of the Warrant Shares; provided payment
of the aggregate Exercise Price (other than in the case of a Cashless Exercise) is received within three Trading Days of delivery
of the Notice of Exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST Automated Securities
Transfer program so long as this Warrant remains outstanding and exercisable.

 

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ii.
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request
of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder
a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical with this Warrant.

 

iii.
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant
to Section 2(d)(i) by the Warrant Share Delivery Date, subject to receipt of the aggregate exercise price for the applicable exercise
(other than in the case of a Cashless Exercise), then the Holder will have the right to rescind such exercise.

 

iv.
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. If the Company fails to cause the Transfer
Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise
on or before the Warrant Share Delivery Date (subject to receipt of the aggregate Exercise Price for the applicable exercise (other
than in the case of a Cashless Exercise)), and if after such date the Holder is required by its broker to purchase (in an open
market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue
times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the
Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored
(in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would
have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a Buy- In with respect to an attempted exercise of shares
of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

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v.
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

vi.
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer
tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid
by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for
any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice
of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions)
required for same-day electronic delivery of the Warrant Shares.

 

vii.
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise
of this Warrant, pursuant to the terms hereof.

 

Section
3. Certain Adjustments.

 

a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company
upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted
such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a)
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

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b)
[RESERVED]

 

c)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro
rata to all the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the
Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which
the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership
Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for
the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to
participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the
Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of
Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in
abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation).

 

d)
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock as a class, by way
of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property
or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the
Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation). To the extent that this Warrant has not been partially or completely exercised at the time
of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder
has exercised this Warrant.

 

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e)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental
Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such
Fundamental Transaction. For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction (other than a Fundamental
Transaction not approved by the Company’s Board of Directors) the Company or any Successor Entity (as defined below) shall,
at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental
Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant
from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion
of this Warrant on the date of the consummation of such Fundamental Transaction; provided, however, that for the avoidance of
doubt, if the Fundamental Transaction is not approved by the Company’s Board of Directors, Holder shall not have the option
to require the Company to purchase this Warrant. “Black Scholes Value” means the value of this Warrant based on the
Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement
of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and
the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement
of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the
price per share being offered in cash, if any, plus the value of any non- cash consideration, if any, being offered in such Fundamental
Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date. The payment of the Black Scholes Value will be made by wire transfer of immediately available
funds within five Business Days of the Holder’s election (or, if later, on the effective date of the Fundamental Transaction).
The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents
in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory
to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the
option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares
of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable
upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction,
and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account
the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of
this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form
and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for, the Company (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant
and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and the
Successor Entity may exercise every right and power of the Company and shall assume all of the obligations of the Company under
this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company
herein. Notwithstanding anything to the contrary contained in the Warrant, and without limiting the buy-in provision in Section
2(d)(iv), in the event that the Company does not have an effective registration statement registering, or the prospectus contained
therein is not available for the issuance of, the Warrant Shares to the Holder, there is no circumstance that would require the
Company to net cash settle the Warrant.

 

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f)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

g)
Notice to Holder.

 

i.
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment
and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered
by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register
of the Company, at least 30 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants,
or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material,
non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the
period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise
be expressly set forth herein.

 

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Section
4. Transfer of Warrant.

 

a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof and to the provisions of Sections 4(f), 4(g) and 4(h) hereof, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender
this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning
this Warrant full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase
of Warrant Shares without having a new Warrant issued.

 

b)
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the original issuance date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

    	10

    	 

    

 

c)
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose
(the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, absent actual notice to the contrary.

 

d)
Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant,
the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions
or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Sections 4(f), 4(g) and 4(h)
hereof.

 

e)
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a
view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

f)
The Warrant Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Warrant Shares other than pursuant to an effective registration statement or Rule 144, to the Company or to an affiliate of
Holder, the Company shall, upon the request of the transferor and at the expense of the Company, provide an opinion of counsel
selected by the transferor and reasonably acceptable to the Company effect that registration of such Warrant Shares shall not
be required under the Securities Act. As a condition of transfer, in the event that such transfer is not made (i) in accordance
with Rule 144, (ii) pursuant to an effective registration statement or (iii) in a transfer not involving a change in beneficial
ownership, any such transferee shall agree in writing to be bound by the terms of this Agreement and the Registration Rights Agreement;
provided, however, that notwithstanding the other provisions of this sentence, if the transfer does not satisfy parts (i) and
(ii) of this sentence but satisfies part (iii) of this sentence, the transferee shall agree in writing to be bound by the terms
of this Warrant and the Registration Rights Agreement. If such conditions are satisfied, such transferee shall have the rights
and obligations of the Holder under this Warrant and the Registration Rights Agreement

 

    	11

    	 

    

 

g)
Certificates evidencing the Warrant Shares shall not contain any legend (i) if sold pursuant to a registration statement covering
the resale of such security that is effective under the Securities Act, (ii) in connection with a sale, assignment or other transfer,
in which a holder of the Warrant Shares provides the Company with an opinion of counsel, the form and substance of which opinion
shall be reasonably acceptable to the Company, that the sale, assignment or transfer of the Warrant Shares may be made without
registration under the applicable requirements of the Securities Act, (iii) following any sale of such Warrant Shares pursuant
to Rule 144, (iv) if such Warrant Shares are eligible for sale under Rule 144, without the requirement for the Company to be in
compliance with the current public information required under Rule 144 as to such Warrant Shares and without volume or manner-of-sale
restrictions, or (v) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the
Transfer Agent promptly after the Effective Date (but no later than 3 Business Days after the Effective Date) if required by the
Transfer Agent to effect the removal of the legend in accordance with the provisions of this Warrant, at Company’s expense.
If all or any portion of this Warrant is exercised at a time when there is an effective registration statement to cover the resale
of the Warrant Shares, or if such Warrant Shares may be sold under Rule 144 and the Company is then in compliance with the current
public information required under Rule 144, or if the Warrant Shares may be sold under Rule 144 without the requirement for the
Company to be in compliance with the current public information required under Rule 144 as to such Warrant Shares or if such legend
is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements
issued by the staff of the Commission) then such Warrant Shares shall be issued free of all legends. The Company agrees that following
the Effective Date or at such time as such legend is no longer required, it will, no later than three (3) Trading Days following
the delivery by the Holder to the Company or the Transfer Agent of a certificate representing Warrant Shares, as the case may
be, issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause
to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends.
The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions
on transfer set forth in this Section 4. Certificates for Warrant Shares subject to legend removal hereunder shall be transmitted
by the Transfer Agent to the Purchaser by crediting the account of the Holder’s prime broker with the Depository Trust Company
System as directed by the Holder.

 

h)
Holder agrees with the Company that such Holder will sell any Warrant Shares pursuant to either the registration requirements
of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Warrant
Shares are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth
therein, and acknowledges that the removal of any restrictive legend from certificates representing Warrant Shares is predicated
upon the Company’s reliance upon this understanding.

 

Section
5. Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth
in Section 3.

 

    	12

    	 

    

 

b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

d)
Authorized Shares.

 

The
Company covenants that it has reserved and, during the period the Warrant is outstanding, it will reserve and keep available at
all times, its authorized and unissued Common Stock, free of preemptive rights, a sufficient number of shares to provide for the
issuance of the Warrant Shares upon the exercise of this Warrant. If at any time the number of authorized but unissued shares
of Common Stock shall not be sufficient to effect the conversion of the Warrants, the Company shall take such corporate act as
may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number
as shall be sufficient for such purposes. The Company further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading
Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and
payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

Except
and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above
the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares
upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions
or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform
its obligations under this Warrant.

 

    	13

    	 

    

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Warrant),
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions
of the Warrant, then the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action
or proceeding.

 

f)
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered,
will have restrictions upon resale imposed by state and federal securities laws.

 

    	14

    	 

    

 

g)
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding
the fact that all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts
as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing
any of its rights, powers or remedies hereunder.

 

h)
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication
is delivered via facsimile or e-mail at the facsimile number or e-mail address set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (New York City time) on a ***Trading Day, (b) the next Trading Day after the date of transmission, if
such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address set forth on the signature
pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c)
the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier
service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and
communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to
any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

i)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

 

j)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant
and shall be enforceable by the Holder or holder of Warrant Shares.

 

    	15

    	 

    

 

l)
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company
and each Holder.

 

m)
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

n)
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be
deemed a part of this Warrant.

 

o)
Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and
conditions contained herein.

 

p)
Governing Law. This Warrant shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. In the event that any provision of this Warrant is invalid or unenforceable under
any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith
and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other provision of this Warrant. Nothing contained herein
shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other
jurisdiction to collect on the Company’s obligations to the Holder to realize on any collateral or any other security for
such obligations or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

********************

 

(Signature
Page Follows)

 

    	16

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first
above indicated.

 

	 	REEDS,
    INC.
	 	 	 
	 	By:	 
	 	Name:	Norman
    E. Snyder, Jr.
	 	Title:	Chief
    Executive Officer

 

    	17

    	 

    

 

NOTICE
OF EXERCISE

 

	TO:	REEDS,
    INC.

 

(1)
The undersigned hereby elects to purchase ____________ Warrant Shares of the Company pursuant to the terms of the attached
Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable
transfer taxes, if any.

 

(2)
Payment shall take the form of (check applicable box):

 

[  ] in lawful money of the United States; or

 

[  ] [if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in
subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless
exercise procedure set forth in subsection 2(c).

 

(3)
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

	 	 	 

 

The
Warrant Shares shall be delivered to the following DWAC Account Number:

  

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

(4) Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the
Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ___________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _____________________________________________________

Name
of Authorized Signatory: _______________________________________________________________________

Title
of Authorized Signatory: ________________________________________________________________________

Date: ___________________________________________________________________________________________

 

    	 

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 
	 	 	(Please
    Print)
	 	 	 
	Address:	 	 
	 	 	(Please
    Print)
	 	 	 
	Phone
    Number:	 	 
	 	 	 
	Email
    Address:	 	 
	 	 	 
	Dated:
    __________________, _________	 	 
	 	 	 
	Holder’s
    Signature: _________________________	 	 
	 	 	 
	Holder’s
    Address: __________________________Exhibit 10.1

 

Satisfaction,
Settlement and Release of Claims

 

THIS
SATISFACTION Settlement and Release of Claims dated December 11, 2020 (this
“Agreement”) is made by and between Reed’s Inc., a Delaware corporation (“Reed’s”)
and Raptor/Harbor Reeds SPV LLC, a Delaware limited liability company (“Raptor”). Raptor and Reed’s
are each referred to herein as a “Party”, and collectively, the “Parties”.

 

WHEREAS,
Raptor and Reed’s are parties to that certain Securities Purchase Agreement dated April 21, 2017 (“SPA”)
and that certain Second Lien Security Agreement dated April 21, 2017 (“Second Lien Security Agreement”);

 

WHEREAS,
Raptor and Reed’s are parties to that certain First Amendment to Securities Purchase Agreement and Transaction Documents
dated as of October 4, 2018 (“First Amendment”), which amended the SPA and the Second Lien Security
Agreement;

 

WHEREAS,
Raptor is holder of that certain Amended and Restated Subordinated Convertible Non-Redeemable Secured Note (“Subordinated
Note”) dated October 4, 2018 in the maximum principal amount of Seven Million Four Hundred Thousand and 00/100 Dollars
($7,400,000.00), issued by Reed’s;

 

WHEREAS,
Reed’s and Rosenthal & Rosenthal Inc., a New York corporation (“Rosenthal”) are parties to
that certain Financing Agreement dated October 4, 2018 pursuant to which Rosenthal makes certain loans and other financial accommodations
available to Reed’s;

 

WHEREAS,
Raptor, the “Junior Lender”, and Rosenthal, the “Senior Lender”, are parties
to that certain Subordination Agreement dated October 4, 2018 (“Subordination Agreement”);

 

WHEREAS,
Raptor and Reed’s desire to settle and release their claims related to the “Junior Lender Indebtedness”
(as defined in the Subordination Agreement), including but not limited to termination of the Subordinated Note, Note Purchase
Agreement, First Amendment and Second Lien Security Agreement (“Junior Lender Transaction Documents”);

 

WHEREAS,
Rosenthal has consented to and waived as an “Event of Default” (as defined in the Financing Agreement)
the payment by Reed’s to Raptor of consideration set forth herein as payment in full of Junior Lender Indebtedness subject
to terms set forth herein.

 

AGREEMENT

 

NOW
THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.
Incorporation of Recitals. The Recitals set forth above are incorporated into this Agreement by this reference.

 

2.
Pay-Off Consideration. In full and complete satisfaction of the Junior Lender Indebtedness and termination of the
Junior Lender Transaction Documents, with no further obligations or liabilities to Raptor, Reed’s hereby agrees to pay and
issue to Raptor the following consideration ((a) through (c) collectively referred to herein as the “Pay-Off Consideration”)):

 

(a) $4,250,000 in cash
proceeds received from Reed’s recently completed public offering, which closed on or about November 24, 2020, payable only
after “Senior Lender Indebtedness” (as defined in the Subordination Agreement) is reduced to a zero balance;

 

    	 

    	Page 2

    

 

(b)
5-year warrant to purchase 1,000,000 shares of common stock, $0.0001 par value, of Reed’s (“Common Stock”)
with an exercise price of $0.644, in the form set forth on Exhibit A, attached hereto and incorporated herein by
this reference (the “Warrant”), which Common Stock shall be subject to resale pursuant to a registration
statement meeting the requirements set forth in the Registration Rights Agreement in the form set forth on Exhibit B,
attached hereto and incorporated herein by this reference (the “Registration Rights Agreement”); and

 

(c)
1,339,286 unrestricted shares of Common Stock to be issued upon conversion of $750,000.00 of the Subordinated Note at the Offering
Price of $0.56 (“Conversion Shares”). The Conversion Shares are registered on an effective Registration
Statement on Form S-3 (Registration No. 333-212206) (the “Registration Statement”) and shall be delivered
to First Republic Securities Company LLC in accordance with the instructions set forth on Exhibit C.

 

The
Pay-Off Consideration shall be due and payable no later than December 11, 2020, and the Company shall deliver the Registration
Rights Agreement, duly executed by the Company, concurrent with the payment of the Pay-Off Consideration.

 

3.
Termination of Junior Lender Transaction Documents. The Junior Lender Transaction Documents are hereby terminated
and neither Party has any obligations or liabilities to the other Party arising under the Junior Lender Transaction Documents;
provided that, notwithstanding anything to the contrary herein, the Junior Lender Transaction Documents shall be reinstated
if (and to the extent) after receipt of the Pay-Off Consideration, any such payment or part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside, and/or required to be repaid to a trustee, receiver, or any similar official
in respect of Reed’s under any bankruptcy law, any other state or federal law, common law, or any equitable cause, then,
to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all security interests,
liens, rights, and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment
or payments had not been made or such enforcement or setoff had not occurred.

 

4.
Termination of UCC Financing Statement. Upon receipt of the Pay-Off Consideration, Raptor agrees to promptly terminate
Financing Statement No. 20172660931 filed April 24, 2017 at the office of the Delaware Secretary of State, evidencing release
of Raptor’s security interest in Reed’s intellectual property.

 

5.
Release. Raptor and Reed’s do hereby release, cancel, and forever discharge the other Party, including but
not limited to, its directors, officers, employees, subsidiaries, affiliates, agents, and representatives from any and all claims,
complaints, causes of action, demands, damages, obligations, liabilities, losses, promises, agreements, controversies, penalties,
expenses, and executions of any kind or nature whatsoever, whether known or unknown, actual or potential, whether arising in law
or in equity, which each Party may have, may have had, or may in the future obtain, arising out of or relating out of the acts,
omissions, agreements, or events relating in any manner to the Junior Lender Indebtedness and Junior Lender Transaction Documents
(the “Release”). Each Party represents and warrants that it has not filed any action or initiated any
other proceeding with any court or government authority against or involving the other Party that may constitute a claim or provide
the basis for any liability that is excluded from the Release provide for in this Section 5. Each Party also represents and warrants
that it is not aware of any action by the other Party that could result in a claim filed or initiated in another proceeding with
any court or government authority against or involving the other Party that may provide the basis for any liability that is excluded
from the Release provided for in this Section 5.

 

6.
Consideration. Each of Raptor and Reed’s acknowledges and agrees that it has received good, valuable and sufficient
consideration for making the Release. In particular, upon execution of and compliance with this Agreement by Raptor, Reed’s
shall pay and issue, and Raptor shall receive the Pay-Off Consideration. Raptor acknowledges and agrees that it will not be entitled
to and shall not assert any claim for any additional amount from Reed’s, other than the aforementioned Pay-Off Consideration.
Raptor agrees that it will not seek anything further, directly or indirectly, for itself or any person, corporation, partnership
or other entity, including any other payment or consideration, with respect to the Junior Lender Indebtedness and Junior Lender
Transaction Documents and the claims released pursuant to this Agreement. Raptor shall be solely responsible for all taxes and
withholdings that may be owed to any federal, state, or local taxing authority as a result of the Pay-Off Consideration received
under this Agreement.

 

    	 

    	Page 3

    

 

7.
Effect. This Agreement and the Release is intended to be a general release in the broadest form. It is understood
and agreed that the Parties hereby expressly waive any and all laws and statutes, of all jurisdictions whatsoever, which may provide
that a general release does not extend to claims not known or suspected to exist at the time of executing a release which if known
would have materially affected the decision to give said release. It is expressly intended and agreed that this Agreement and
the Release does, in fact, extend to such unknown and unsuspected claims related to anything which has happened to the date hereof
which is covered by this Agreement and the Release, even if knowledge thereof would have materially affected the decision to give
the Release. Each Party further represents and warrants that it has not assigned any of its rights with respect to the Junior
Lender Indebtedness or the Junior Lender Transaction Documents to any other party. In addition, the Parties warrant and represent
to the other that the execution and delivery of this Agreement and the Release does not, and with the passage of time will not,
violate any obligation of the Party to any third party.

 

8.
Rosenthal Waiver and Consent. The Parties acknowledge and agree that Rosenthal consented to and waived as an Event
of Default the payment by Reed’s to Raptor of the Pay-Off Consideration as payment in full of Junior Lender Indebtedness.

 

9.
No Admission. Raptor and Reed’s expressly agree and acknowledge that this Agreement represents the final settlement
and compromise of the Junior Lender Indebtedness and the Junior Lender Transaction Documents, and that by entering into this Agreement,
neither Party hereto admits or acknowledges the existence of any liability, obligation, or wrongdoing on its part. Each Party
expressly denies any and all liability or wrongdoing with respect to the Junior Lender Indebtedness and the Junior Lender Transaction
Documents.

 

10.
Independent Legal Counsel. The Parties acknowledge that they have had an opportunity to consult with independent
legal counsel of their choosing regarding the legal effect of this Agreement and the Release and that each Party freely and voluntarily
enters into this Agreement.

 

11.
Who Is Bound. Each Party intends to be legally bound by this Agreement. Any person or corporation, partnership or
other entity which succeeds to a Party’s rights and responsibilities is also bound. This Agreement is made for the benefit
of the Parties, their past, present and future officers, directors, shareholders, employees, and agents, and the Parties’
affiliates and subsidiaries, and all who succeed to their rights and responsibilities, as well as any successors and assigns of
the Parties.

 

12.
Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, notwithstanding its choice of law provisions. The Parties agree that any claims or legal actions by one Party against
the other to enforce the terms of this Agreement or concerning any rights under this Agreement shall be commenced and maintained
in any state or federal court located in the State of New York, Borough of Manhattan.

 

13.
Confidentiality. The Parties agree to keep confidential all negotiations and discussions leading up to this Agreement.

 

14.
Fees and Expenses. Each Party hereto shall bear its own fees and expenses (including attorneys’ fees) incurred
in connection with this Agreement and the consummation of the transactions contemplated hereby.

 

15.
Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an
original, but all of which together will constitute one and the same instrument, without necessity of production of the others.
An executed signature page delivered via facsimile transmission or electronic signature shall be deemed as effective as an original
executed signature page.

 

    	 

    	Page 4

    

 

16.
Waiver. No waiver of any term or right in this Agreement shall be effective unless in writing, signed by an authorized
representative of the waiving Party. The failure of either Party to enforce any provision of this Agreement shall not be construed
as a waiver or modification of such provision, or impairment of its right to enforce such provision or any other provision of
this Agreement thereafter.

 

17.
Construction. The headings/captions appearing in this Agreement have been inserted for the purposes of convenience
and ready reference, and do not purport to and shall not be deemed to define, limit or extend the scope or intent of the provisions
to which they appertain. This Agreement shall not be construed more strongly against either Party regardless of which Party is
more responsible for its preparation.

 

18.
Entire Agreement. This Agreement and the Warrant set forth the entire and complete understanding and agreement between
the Parties regarding the subject matter hereof including, but not limited to the settlement of all disputes and claims with respect
to the Junior Lender Indebtedness and the Junior Lender Transaction Documents and supersede any and all other prior agreements
or discussions, whether oral, written, electronic or otherwise, relating to the subject matter hereunder. Any additions or modifications
to this Agreement must be made in writing and signed by authorized representatives of both Parties. The Parties acknowledge and
agree that they are not relying upon any representations or statements made by the other Party or the other Party’s employees,
agents, representatives or attorneys regarding this Agreement, except to the extent such representations are expressly set forth
herein.

 

19.
Severability. In the event that any term of this Agreement is deemed to be invalid, illegal, or otherwise unenforceable
(a) the Parties shall use all reasonable efforts to negotiate in good faith to amend the term to eliminate any such invalidity,
illegality, or unenforceability to the extent practically possible, taking into full account their original intent when entering
into this Agreement in the first instance, and (b) the remaining provisions hereof shall continue in full force and effect.

 

20.
Authority to Bind. By signing below the Parties represent that the signatories are authorized to execute this Agreement
on behalf of themselves and/or their respective corporations and that the execution and delivery of this Agreement are the duly
authorized and binding acts of their respective corporations.

 

[Signature
page follows]

 

    	 

    	Page 5

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Satisfaction, Settlement and Release of Claims effective as of
the date set forth above.

 

	RaPTOR/HARBOR
    REEDS SPV LLC,	 	REED’S
    INC., a Delaware corporation
	a
    Delaware limited liability company	 	 	 
	 	 	 	 	 
	By:	Raptor
    Holdco gp llc, its manager	 	 	 
	 	 	 	 	 
	/s/ Robert Needham	 	/s/ Norman E. Snyder, Jr.

	 	 	 	 	 
	By:
    	Robert
    Needham	 	By:	Norman
    E. Snyder, Jr.
	Its:
    	Chief
    Financial Officer	 	Its:	Chief
    Executive Officer

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