Document:

EX-4.4

 Exhibit 4.4 

SANTANDER HOLDINGS USA, INC. 

Company 
 to 

DEUTSCHE BANK TRUST COMPANY AMERICAS 

Trustee 
 Twelfth Supplemental
Indenture 
 SENIOR DEBT SECURITIES 

Dated as of July 13, 2017 

 TABLE OF CONTENTS 

 
  

 

					
	 	  	PAGE	 
	 ARTICLE 1 Scope Of Twelfth Supplemental Indenture
	  	 	1	 
		
	 Section 1.01. Scope
	  	 	1	 
		
	 ARTICLE 2 Definitions
	  	 	2	 
		
	 Section 2.01. Definitions and Other Provisions of General Application
	  	 	2	 
		
	 ARTICLE 3 Form And Terms Of The Notes
	  	 	2	 
		
	 Section 3.01. Form and Dating
	  	 	2	 
		
	 Section 3.02. Terms of the Notes
	  	 	2	 
		
	 ARTICLE 4 Supplemental Indentures
	  	 	4	 
		
	 Section 4.01. Supplemental Indentures
	  	 	4	 
		
	 ARTICLE 5 Miscellaneous
	  	 	4	 
		
	 Section 5.01. Trust Indenture Act of 1939
	  	 	4	 
	 Section 5.02. Governing Law
	  	 	4	 
	 Section 5.03. Duplicate Originals
	  	 	4	 
	 Section 5.04. Separability
	  	 	4	 
	 Section 5.05. Ratification
	  	 	4	 
	 Section 5.06. Effectiveness
	  	 	4	 
	 Section 5.07. Successors
	  	 	4	 
	 Section 5.08. Trustee’s Disclaimer
	  	 	4	 
		
	 EXHIBIT A - Form of 4.400% Senior Note due 2027
	  	 	A-1	 

  
 i 

 TWELFTH SUPPLEMENTAL INDENTURE 

TWELFTH SUPPLEMENTAL INDENTURE (this “Twelfth Supplemental Indenture”), dated as of July 13, 2017, between SANTANDER
HOLDINGS USA, INC., a corporation duly organized and existing under the laws of the Commonwealth of Virginia (the “Company”), having its principal office at 75 State Street, Boston, Massachusetts 02109, and Deutsche Bank Trust
Company Americas, a New York banking corporation, having a corporate trust office at 60 Wall Street, 16th Floor, New York, New York, 10005, as Trustee (the “Trustee”). 

RECITALS OF THE COMPANY 

WHEREAS, the Company and the Trustee executed and delivered an Indenture, dated as of April 19, 2011 (the “Base
Indenture”) to provide for the issuance by the Company from time to time of its unsecured debentures, notes or other evidences of indebtedness (the “Securities”); 

WHEREAS, the Company amended the Base Indenture pursuant to the Eighth Supplemental Indenture, dated as of March 1, 2017, between
the Company and the Trustee (the “Eighth Supplemental Indenture,” and the Base Indenture, as amended by the Eighth Supplemental Indenture and as supplemented by this Twelfth Supplemental Indenture, the “Indenture”);

 WHEREAS, Sections 2.01, 3.01 and 9.01 of the Base Indenture provide that the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental to the Indenture, without the consent of any Holders, to, among other things, establish the terms of Securities of any series as permitted by the
Indenture; 
 WHEREAS, the issuance and sale of $800,000,000 aggregate principal amount of a new series of the Securities of the
Company designated as its 4.400% Senior Notes due 2027 (the “Notes”) have been authorized by resolutions adopted by the board of directors of the Company; 

WHEREAS, the Company desires to issue and sell $800,000,000 aggregate principal amount of the Notes as of the date hereof; 

WHEREAS, the Company desires to establish the terms of the Notes; 

WHEREAS, all things necessary to make this Twelfth Supplemental Indenture a legal and binding supplement to the Base Indenture in
accordance with its terms and the terms of the Base Indenture have been done; 
 WHEREAS, the Company has complied with all
conditions precedent provided for in the Base Indenture relating to this Twelfth Supplemental Indenture; and 
 WHEREAS, the Company
has requested that the Trustee execute and deliver this Twelfth Supplemental Indenture. 
 NOW, THEREFORE: 

For and in consideration of the premises stated herein and the purchase of the Notes by the Holders thereof, the Company and the Trustee
covenant and agree, for the equal and proportionate benefit of the Holders of the Notes, as follows: 
 ARTICLE 1 

SCOPE OF TWELFTH SUPPLEMENTAL INDENTURE 

Section 1.01. Scope. This Twelfth Supplemental Indenture constitutes a supplement to the Base Indenture and an integral part of
the Indenture and shall be read together with the Base Indenture and Eighth Supplemental Indenture as though all the provisions thereof are contained in one instrument. Except as expressly amended by the Eighth Supplemental Indenture and Twelfth
Supplemental Indenture, the terms and provisions of the Base Indenture shall remain in full force and effect. Notwithstanding the foregoing, this Twelfth Supplemental Indenture shall only apply to the Notes. 

 ARTICLE 2 

DEFINITIONS 

Section 2.01. Definitions and Other Provisions of General Application. For all purposes of this Twelfth Supplemental Indenture
unless otherwise specified herein: 
 (a)    all terms used in this Twelfth Supplemental Indenture which are not
otherwise defined herein shall have the meanings they are given in the Base Indenture, as amended by the Eighth Supplemental Indenture; 

(b)    the provisions of general application stated in Sections 1.02 through 1.15 of the Base Indenture shall apply to
this Twelfth Supplemental Indenture, except that the words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import refer to this Twelfth Supplemental
Indenture as a whole and not to the Base Indenture or any particular Article, Section or other subdivision of the Base Indenture or this Twelfth Supplemental Indenture; 

(c)    Section 1.01 of the Base Indenture is amended and supplemented, solely with respect to the Notes, by inserting the
following additional defined term in its appropriate alphabetical position: 
 “Issue Date” means July 13,
2017. 
 ARTICLE 3 

FORM AND TERMS OF THE NOTES 

Section 3.01. Form and Dating. 

(a)    The Notes and the Certificate of Authentication shall be substantially in the form of Exhibit A attached
hereto. The Notes may have notations, a legend or legends or endorsements as may be required to comply with any law or with any rules of any securities exchange or usage. Each Note shall be dated the date of its authentication. 

(b)    The terms contained in the Notes shall constitute, and are hereby expressly made, a part of the Indenture as
supplemented by this Twelfth Supplemental Indenture and the Company and the Trustee, by their execution and delivery of this Twelfth Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

Section 3.02. Terms of the Notes. The following terms relating to the Notes are hereby established: 

(a)    Title. The Notes shall constitute a series of Securities having the title “Santander Holdings USA, Inc.
4.400% Senior Notes due 2027,” and the CUSIP number shall be either “80282KAN6” (144A) or “U8029KAE2” (Regulation S), as applicable. 

(b)    Principal Amount. The aggregate principal amount of the Notes that may be authenticated and delivered under
the Indenture, as amended hereby, shall be $800,000,000 on the Issue Date. Provided that no Covenant Breach or Event of Default has occurred and is continuing with respect to the Notes, the Company may, without notice to or the consent of the
Holders, create and issue additional Securities having the same terms as, and ranking equally and ratably with, the Notes in all respects and so that such additional Notes will be consolidated and form a single series with, and have the same terms
as to status, redemption or otherwise as, the Notes initially issued. 
 (c)    Person to Whom Interest is
Payable. Interest payable, and punctually paid or duly provided for, on any Interest Payment Date will be paid to the Person in whose name the Notes are registered at the close of business on the Regular Record Date for such interest, which
shall be the close of business fifteen (15) calendar days 

  
 2 

 
(whether or not a Business Day) immediately preceding an Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner and as provided for in the Base Indenture. 

(d)    Maturity Date. The entire outstanding principal of the Notes shall be payable on July 13, 2027
(the “Maturity Date”). 
 (e)    Interest. The rate at which the Notes shall bear interest shall
be 4.400% per annum (the “Applicable Rate”); the date from which interest shall accrue on the Notes shall be July 13, 2017 or the most recent Interest Payment Date to which interest has been paid or duly provided for; the
Interest Payment Dates for the Notes shall be January 13 and July 13 of each year, beginning on January 13, 2017. In the event that any scheduled Interest Payment Date for the Notes falls on a day that is not a Business Day, then
payment of interest payable on such Interest Payment Date shall be postponed to the next succeeding day which is a Business Day (and no interest on such payment will accrue for the period from and after such scheduled Interest Payment Date). 

(f)    Place of Payment of Principal and Interest. Payment of the principal of (and premium, if any) and interest
on the Notes will be made at the office or agency of the Company maintained for that purpose in New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts against surrender of any Note in the case of any payment due at the Maturity Date; provided, however, that (i) if any Note is a Global Security, payments shall be made in respect of such Note pursuant to the Applicable
Procedures of the Depositary as in effect from time to time, and (ii) if any Note is not a Global Security, payment of interest in respect of such Note will be made by check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register at the close of business on the Regular Record Date for such interest. Notwithstanding the foregoing, if any Note is not a Global Security and has a principal amount of at least $1,000,000, upon request, the
Company will pay any amount that becomes due on such Note by wire transfer of immediately available funds to an account at a bank in New York City, on the due date. To request such a wire payment, the Holder of such Note must give the Paying Agent
appropriate wire transfer instructions at least five Business Days before the requested wire payment is due. In the case of any interest payment due on an Interest Payment Date, the instructions must be given by the person or entity who is the
Holder on the relevant Regular Record Date. Any wire instructions, once properly given, will remain in effect unless and until new instructions are given in the manner described above. 

(g)    Redemption. The Company may, at its option, on or after the 90th day prior to the Maturity Date, redeem the
Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest thereon to the date of redemption. Other than as set forth in the preceding sentence, the Notes are
not redeemable prior to the Maturity Date. 
 (h)    Sinking Fund. There shall be no sinking fund for the Notes.

 (i)    Denomination. The Notes shall be in minimum denominations of $2,000 and integral multiples of $1,000 in
excess thereof. 
 (j)    Currency of the Notes. The Notes shall be denominated, and payment of principal and
interest of the Notes shall be payable in, the currency of the United States of America. 
 (k)    Currency of
Payment. The principal of and interest on the Notes shall be payable in the currency of the United States of America. 

(l)    Defeasance. Article 13 of the Base Indenture shall apply to the Notes. 

(m)    Registered Form. The Notes shall be issuable as registered Global Securities, and the depositary for the
Notes shall be the Depository Trust Company in The City of New York (“DTC”) or any successor depositary appointed by the Company within 90 days of the termination of services of DTC (or any successor to DTC). Sections 2.04 and 3.05
of the Base Indenture shall apply to the Notes. 

  
 3 

 (n)    Covenants. The covenants set forth in Article 10 of the Base
Indenture shall apply to the Notes. 
 (o)    Additional Terms. Other terms applicable to the Notes are as
otherwise provided for below. 
 ARTICLE 4 

SUPPLEMENTAL INDENTURES 

Section 4.01. Supplemental Indentures. The following paragraph shall be added to the end of Section 9.01 of the Base
Indenture and shall only apply to the Notes: 
 Notwithstanding the foregoing, without the consent of any Holder of Securities, the Company
and the Trustee may amend or supplement the Indenture or the Securities to conform the terms of the Indenture and the Securities to the description of the Securities in the final offering memorandum dated July 10, 2017 relating to the offering
of the Securities. 
 ARTICLE 5 

MISCELLANEOUS 

Section 5.01. Trust Indenture Act of 1939. This Twelfth Supplemental Indenture shall incorporate and be governed by the provisions
of the Trust Indenture Act that are required to be part of and to govern indentures qualified under the Trust Indenture Act. 

Section 5.02. Governing Law. This Twelfth Supplemental Indenture and the Notes shall be governed by and construed in
accordance with the law of the State of New York, without regard to principles of conflicts of law. 
 Section 5.03. Duplicate
Originals. The parties may sign any number of copies of this Twelfth Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

Section 5.04. Separability. In case any provision in this Twelfth Supplemental Indenture or the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 5.05. Ratification. The Base Indenture, as amended by the Eighth Supplemental Indenture and as supplemented and amended by
this Twelfth Supplemental Indenture, is in all respects ratified and confirmed. The Base Indenture, the Eighth Supplemental Indenture and this Twelfth Supplemental Indenture shall be read, taken and construed as one and the same instrument. All
provisions included in this Twelfth Supplemental Indenture supersede any conflicting provisions included in the Base Indenture unless not permitted by law. The Trustee accepts the trusts created by the Base Indenture, as amended by the Eighth
Supplemental Indenture and as supplemented by this Twelfth Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Base Indenture, as amended by the Eighth Supplemental Indenture and as supplemented by this
Twelfth Supplemental Indenture. 
 Section 5.06. Effectiveness. The provisions of this Twelfth Supplemental Indenture
shall become effective as of the date hereof. 
 Section 5.07. Successors. All agreements of the Company in this Twelfth
Supplemental Indenture shall bind its successors. All agreements of the Trustee in this Twelfth Supplemental Indenture shall bind its successors. 

Section 5.08. Trustee’s Disclaimer. The recitals contained herein shall be taken as the statements of the
Company and the Trustee assumes no responsibility for their correctness. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Twelfth Supplemental Indenture, the Notes, or for or in
respect of the recitals contained herein, all of which recitals are made solely by the Company. 

  
 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Twelfth Supplemental Indenture to be duly
executed as of the date set forth above. 
  

									
		 		 		 	SANTANDER HOLDINGS USA, INC.
		 		 		 	as the Company
					
	Attest	 		 		 		 	
					
	By:	 	 /s/ Gerard A. Chamberlain
	 		 	By:	 	 /s/ Juan Carlos Alvarez de Soto

	Name:	 	Gerard A. Chamberlain	 		 	Name:	 	Juan Carlos Alvarez de Soto
	Title:	 	Assistant Secretary	 		 	Title:	 	Treasurer and Senior Executive Vice President

 SIGNATURE PAGE TO TWELFTH
SUPPLEMENTAL INDENTURE 

 
			
	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	as Trustee
		
	By:	 	Deutsche Bank National Trust Company
		
	By	 	 /s/ Jeffrey Schoenfeld

	Name:	 	Jeffrey Schoenfeld
	Title:	 	Vice President
		
	By:	 	 /s/ Kathryn Fischer

	Name:	 	Kathryn Fischer
	Title:	 	Assistant Vice President

 SIGNATURE PAGE TO TWELFTH
SUPPLEMENTAL INDENTURE 

 EXHIBIT A 

FORM OF NOTE 
 [FORM OF
FACE OF NOTE] 
 [Global Notes Legend] 

[THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 

THIS SECURITY IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE BANK INSURANCE FUND, THE SAVINGS
ASSOCIATION INSURANCE FUND OR ANY OTHER GOVERNMENTAL AGENCY. 
 [[FOR REGULATION S GLOBAL NOTE ONLY] UNTIL 40 DAYS AFTER THE LATER OF
COMMENCEMENT OR COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE
OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.] 
 [Restricted Notes Legend for Notes Offered in Reliance on Rule 144A] 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE THAT IS THE DATE ON WHICH THE ISSUER INSTRUCTS THE TRUSTEE THAT THIS RESTRICTIVE LEGEND SHALL BE DEEMED REMOVED (WHICH INSTRUCTION IS EXPECTED TO BE GIVEN ON OR ABOUT THE ONE-YEAR ANNIVERSARY OF THE ISSUANCE OF THIS SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS
THAT OCCUR OUTSIDE THE 

  
 A-1 

 
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS
LEGEND WILL BE REMOVED WITHOUT FURTHER ACTION OF THE ISSUER, THE TRUSTEE OR ANY HOLDER AT SUCH TIME AS THE ISSUER INSTRUCTS THE TRUSTEE IN WRITING TO REMOVE SUCH LEGEND IN ACCORDANCE WITH THE INDENTURE. 

[Restricted Notes Legend for Notes Offered in Reliance on Regulation S.] 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM
NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE
(D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED WITHOUT FURTHER ACTION OF THE ISSUER, THE TRUSTEE OR ANY HOLDER AT SUCH TIME AS THE
ISSUER INSTRUCTS THE TRUSTEE IN WRITING TO REMOVE SUCH LEGEND IN ACCORDANCE WITH THE INDENTURE. BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS
ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT. 
 THIS SECURITY (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE
SECURITIES ACT. 
 [Definitive Notes Legend] 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 

  
 A-2 

 SANTANDER HOLDINGS USA, INC. 

4.400% Senior Notes due 2027 
 CUSIP
No. [80282KAN6][U8029KAE2] 
 ISIN: [US80282KAN63][USU8029KAE20] 

					
	No.                     	  	$	                    	 

 Santander Holdings USA, Inc., a corporation duly organized and existing under the laws of the Commonwealth of
Virginia (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
$             on July 13, 2027, and to pay interest thereon from July 13, 2017 or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on January 13 and July 13 in each year, commencing January 13, 2018, and at the Maturity Date, at the rate of 4.400% per annum, until the principal hereof is paid or made available for payment, provided
that any premium, and any such installment of interest, which is overdue shall bear interest at the rate of 4.400% per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such overdue amounts are
due until they are paid or duly provided for, and such interest on any overdue installment shall be payable on demand. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the close of business fifteen (15) calendar
days (whether or not a Business Day) immediately prior to an Interest Payment Date. Any such interest so payable, but not punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof
shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, as more fully provided in said Indenture. 

Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company maintained
for that purpose in New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts against surrender of this Security in the case of any payment due at
the Maturity Date; provided, however, that (i) if this Security is a Global Security, payments shall be made pursuant to the Applicable Procedures of the Depositary as in effect from time to time, and (ii) if this Security is not
a Global Security, payment of interest will be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register at the close of business on the Regular Record Date for such interest.
Notwithstanding the foregoing, if this Security is not a Global Security and has a principal amount of at least $1,000,000, upon request, the Company will pay any amount that becomes due on this Security by wire transfer of immediately available
funds to an account at a bank in New York City, on the due date. To request wire payment, the Holder must give the Paying Agent appropriate wire transfer instructions at least five Business Days before the requested wire payment is due. In the case
of any interest payment due on an Interest Payment Date, the instructions must be given by the person or entity who is the Holder on the relevant Regular Record Date. Any wire instructions, once properly given, will remain in effect unless and until
new instructions are given in the manner described above. 
 Reference is hereby made to the further provisions of this Security set forth
on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

[Signature Page Follows] 

  
 A-3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: 
  

									
	Attest	 		 		 	       SANTANDER HOLDINGS USA, INC.

      as the Company

									
					
	By:	 		 		 	By:	 	
		 	  
	 		 		 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein and referred to in the Indenture referred to hereinafter. 

Dated: 
  

			
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Trustee

		
	By:	 	Deutsche Bank National Trust Company
		
	By:	 	 

  
 A-4 

 [Reverse of Security] 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to
be issued in one or more series under an Indenture, dated as of April 19, 2011 (herein called the “Base Indenture”, which term shall have the meaning assigned to it in such instrument), between the Company and Deutsche Bank
Trust Company Americas, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), as amended by an Eighth Supplemental Indenture, dated as of March 1, 2017, between the Company and
the Trustee (herein called the “Eighth Supplemental Indenture”), and as supplemented by a Twelfth Supplemental Indenture, dated as of July 13, 2017, between the Company and the Trustee (herein called the “Twelfth
Supplemental Indenture” and, together with the Base Indenture and Eighth Supplemental Indenture, the “Indenture”), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the
face hereof, initially limited in aggregate principal amount of $800,000,000. 
 The Securities of this series shall be redeemable in whole
or in part by the Company on or after the 90th day prior to the Maturity Date at 100% of the principal amount of the Securities of this series (par), plus accrued and unpaid interest thereon to the date of redemption. Other than as set forth in the
preceding sentence, the Securities of this series are not redeemable prior to the Maturity Date. The Securities of this series are not entitled to the benefit of any sinking fund. 

The Securities of this series will not be listed on any national securities exchange or included in any automated quotation system. Currently
there is no market for the Securities of this series. 
 If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants,
Covenant Breaches and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of all Securities at the time Outstanding
to be affected, considered together as one class for this purpose (such Securities to be affected may be Securities of the same or different series and, with respect to any series, may comprise fewer than all the Securities of such series). The
Indenture also contains provisions (i) permitting the Holders of a majority in principal amount of the Securities at the time Outstanding to be affected under the Indenture, considered together as one class for this purpose (such affected
Securities may be Securities of the same or different series and, with respect to any particular series, may comprise fewer than all the Securities of such series), on behalf of the Holders of all Securities so affected, to waive compliance by the
Company with certain provisions of the Indenture and (ii) permitting the Holders of a majority in principal amount of the Securities at the time Outstanding of any series to be affected under the Indenture (with each such series considered
separately for this purpose), on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to
institute any proceeding with respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Covenant Breach or
Event of Default with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in
respect of such Covenant Breach or Event of Default as Trustee and offered 

  
 A-5 

 
the Trustee indemnity and/or security satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time
Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity and/or security. The foregoing shall not apply to any suit
instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the
Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like
tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and in integral multiples of
$1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

[This Security is a Global Security and is subject to the provisions of the Indenture relating to Global Securities, including the limitations
in Section 3.05 thereof on transfers and exchanges of Global Securities.] 
 The Indenture and this Security shall be governed by and
construed in accordance with the law of the State of New York, without regard to principles of conflicts of law. 
 All terms used in this
Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

  
 A-6 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 
 I or we assign
and transfer this Note to: 
  
  

(Print or type assignee’s name, address and zip code) 
  

 
 (Insert assignee’s soc. sec. or
tax I.D. No.) 
 and irrevocably
appoint                     agent to transfer this Note on the books of the Issuer. The agent may substitute another to act for him. 

 
  
  

									
	Date:	 	  
	 		 	Your Signature:	 	  

  
  

Sign exactly as your name appears on the other side of this Note. 
  

					
	Signature Guarantee:	  		  	
			
	Date:                                     
                                         
            	  		  	  

	Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature guarantor program reasonably acceptable to the Trustee	  		  	Signature of Signature Guarantee

  
 A-7 

 CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR 

REGISTRATION OF TRANSFER RESTRICTED NOTES 
 This
certificate relates to $             principal amount of Notes held in (check applicable space)
                     book-entry or
                     definitive form by the undersigned. 

The undersigned (check one box below): 
  

	☐	has requested the Trustee by written order to deliver in exchange for its beneficial interest in the Global Security held by the Depository a Note in definitive, registered form of authorized denominations and an
aggregate principal amount equal to its beneficial interest in such Global Security (or the portion thereof indicated above); 

  

	☐	has requested the Trustee by written order to exchange or register the transfer of a Note. 

 In connection with
any transfer of any of the Notes evidenced by this certificate occurring prior to the expiration of the period referred to in Rule 144 under the Securities Act, the undersigned confirms that such Notes are being transferred in accordance
with its terms: 
 CHECK ONE BOX BELOW 
  

							
		 	(1)	    	☐	    	to the Issuer; or
				
		 	(2)	    	☐	    	to the Registrar for registration in the name of the Holder, without transfer; or
				
		 	(3)	    	☐	    	pursuant to an effective registration statement under the Securities Act; or
				
		 	(4)	    	☐	    	to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that such
transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act; or
				
		 	(5)	    	☐	    	outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the Securities Act and such Notes shall be held immediately after the
transfer through Euroclear or Clearstream until the expiration of the Restricted Period (as defined in the Indenture); or
				
		 	(6)	    	☐	    	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has furnished to the Trustee a signed letter containing certain representations and agreements;
or
				
		 	(7)	    	☐	    	pursuant to another available exemption from registration provided by Rule 144 under the Securities Act.

 Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the
name of any Person other than the registered Holder thereof; provided, however, that if box (5), (6) or (7) is checked, the Trustee may require, prior to registering any such transfer of the Notes, such legal opinions,
certifications and other information as the Issuer and/or Trustee has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities
Act. 
  

							
	 Date:
	 	  
	 		 	  

		 		 		 	 Your Signature

  
 A-8 

							
	Signature Guarantee:	 		  	

							
				
	Date:	 	  
	 		  	  

							
	Signature must be guaranteed by a participant in a
recognized signature guaranty medallion program or other
signature guarantor program reasonably acceptable to the
Trustee	 		  	Signature of Signature Guarantee

  
  

  
 A-9 

 TO BE COMPLETED BY PURCHASER IF (4) ABOVE IS CHECKED. 

The undersigned represents and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

									
	Dated:	  	  
	  		 	  

		  		  		 	NOTICE:	  	To be executed by an executive officer

  
 A-10 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE 

The initial principal amount of this Global Note is $            . The
following increases or decreases in this Global Note have been made: 
  

									
	 Date of
Exchange
	  	 Amount of decrease

in Principal Amount
 of this Global
Note
	  	 Amount of increase in

Principal Amount of
 this Global
Note
	  	 Principal Amount of this

Global Note following
 such decrease
or increase
	  	 Signature of authorized

signatory of Trustee or
 Securities
Custodian

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 A-11EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (the “Agreement”) is made and effective as of this June 28, 2017 (the “Effective
Date”) by and between Reed’s, Inc., a Delaware corporation (“Reed’s” or the “Company”),
and Valentin Stalowir (the “Executive”).

 

WHEREAS,
Reed’s and the Executive desire to enter into this Agreement to evidence the terms and conditions of the employment of the
Executive by Reed’s;

 

NOW,
THEREFORE, intending to be legally bound and in consideration of the mutual provisions set forth in this Agreement, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

Section
1  Employment. Reed’s hereby employs the Executive and the Executive hereby accepts such employment, in
accordance with the terms and conditions set forth in this Agreement. By executing this Agreement, the Executive represents and
warrants to Reed’s that (i) the Executive is entering into this Agreement voluntarily and that his employment hereunder
and compliance with the terms and conditions hereof will not conflict with or result in the breach by him of any agreement to
which he is a party or by which he may be bound; (ii) the Executive has not violated, and in connection with his employment with
Reed’s will not violate, any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer
by which he is bound; and (iii) in connection with his employment with Reed’s, the Executive will not use any confidential
or proprietary information he may have obtained in connection with employment with any prior employer.

 

Section
2  Term. The Executive’s employment (the “Term”) with Reed’s under this Agreement
will commence on the Effective Date and continue until terminated in accordance with Section 6 below. Executive’s employment
with the Company shall be on an “at-will” basis.

 

Section
3 Position. The Executive will be employed as the Chief Executive Officer (“CEO”) of Reed’s
and as a member of the board of directors of Reed’s (the “Board”) and will report to the Board. The Executive
will have the duties and responsibilities customarily attendant to the position of CEO and a member of the Board. Executive will
also have such other duties and responsibilities that are commensurate with his positions as specifically delegated to him or
her from time to time by the board of directors of Reed’s (the “Board”). Executive shall be subject to the Bylaws,
policies, practices, procedures and rules of the Company, currently existing and as may be modified from time to time, including
those policies and procedures set forth in the Company’s Code of Conduct and Ethics. Executive’s principal office,
and principal place of employment, shall be at the Company’s offices, currently in Los Angeles, California, provided that
Executive may be required under business circumstances to travel outside the location of his principal employment in connection
with performing his or her duties under this Agreement.

 

    	 	 	 

    	 

    

 

Section
4  Restrictive Covenants; Representations.

 

4.1
Loyal Performance. During the Executive’s employment with Reed’s, the Executive will devote his full business
time and attention to the performance of his duties as CEO and a member of the Board of Reed’s and will perform his duties
and carry out his responsibilities as CEO and a member of the Board in a diligent and businesslike manner. Nothing in this Section
4.1, however, will prevent the Executive from engaging in additional activities in connection with personal investments or from
serving in a non-management capacity with any for profit or not for profit organization that does not conflict with his duties
under this Agreement, provided that the Executive shall give the Board prior notice of his service to any service to any for profit
or not for profit organization so that it may review the same for compliance with the terms of this Agreement.

 

4.2
Confidentiality; Return of Property.

 

(a)
Executive acknowledges that: (i) the Confidential Information (as hereinafter defined) is a valuable, special, and unique asset
of the Company, the unauthorized disclosure or use of which could cause substantial injury and loss of profits and goodwill to
the Company; (ii) Executive is in a position of trust and subject to a duty of loyalty to the Company, and (iii) by reason of
his or her employment and service to the Company, Executive will have access to the Confidential Information. Executive, therefore,
acknowledges that it is in the Company’s legitimate business interest to restrict Executive’s disclosure or use of
Confidential Information for any purpose other than in connection with Executive’s performance of Executive’s duties
for the Company, and to limit any potential misappropriation of such Confidential Information by Executive. Executive agrees to
keep secret and to treat confidentially all of the Confidential Information (as defined below), and not to, without the express
prior written consent of Reed’s or in connection with the good faith performance of his duties to Reed’s, directly
or indirectly, (i) divulge, disclose or intentionally make accessible any Confidential Information to any other Person (as defined
below) or assist any other Person or entity in improperly using any Confidential Information or (ii) use any Confidential Information
for his own purposes or for the benefit of any other Person (except when required to do so by a court of competent jurisdiction,
by any governmental agency having supervisory authority over the business of Reed’s, or by any administrative body or legislative
body (including a committee thereof) with jurisdiction to order the Executive to divulge, disclose or make accessible such Confidential
Information; provided, however, that, in the event that the Executive is so required to disclose Confidential Information,
the Executive shall, if legally permitted to do so, prior to making any such disclosure, provide Reed’s with prompt written
notice of such requirement so that Reed’s may seek an appropriate protective order); provided, further, that,
during the Employment Period, the Executive may utilize any Confidential Information in the course of performing his services
under this Agreement. All Confidential Information is and shall remain the property of Reed’s, except for this Agreement
and other Confidential Information relating solely to the Executive’s compensation and benefits. For purposes of this Agreement,
“Person” shall mean an individual, a partnership, a corporation, a limited liability company, an association,
a joint stock company, an estate, a trust, a joint venture, an unincorporated organization or a governmental entity or any department,
agency or political subdivision thereof.

 

    	 	 	 2

    	 		 

    

 

(b)
For purposes of this Agreement, “Confidential Information” shall mean any and all proprietary information,
trade secrets, know-how or other information of Reed’s or concerning the affairs of Reed’s (whether tangible or intangible
and whether or not such information is in writing or other physical form), including, but not limited to, data, plans, concepts,
programs, procedures, innovations, inventions, improvements, information regarding customers, financial information, costs, prices,
earnings, systems, sources of supply, marketing, prospective and executed contracts, budgets, business plans and other business
arrangements, information on the performance, identities, capabilities, performance strength and weaknesses, and compensation
arrangements of particular managerial or technical employees of Reed’s; provided, however, that Confidential
Information will not include any information that has been published in a form generally available to the public prior to the
date Executive proposes to disclose or use such information. Confidential Information will not be deemed to have been published
merely because individual portions of the information have been separately published, but only if all material features comprising
such information have been published in combination.

 

(c)
Upon termination of the Executive’s employment, the Executive shall promptly return to Reed’s any car, cell phone,
mobile device, laptop or other property provided to the Executive by Reed’s, and any other confidential or proprietary information
of Reed’s that remains in the Executive’s possession (“Reed’s Property”); provided, however,
that nothing in this Agreement or elsewhere shall prevent the Executive from retaining and utilizing documents and information
relating to his personal benefits, entitlements and obligations, documents relating to his personal tax obligations. If the Executive
discovers Reed’s Property in his possession after the termination of his employment he shall notify Reed’s and promptly
either deliver the same to Reed’s or destroy it as directed by Reed’s.

 

4.3
Nonsolicitation. To the full extent permitted by law, the Executive will not directly or indirectly, individually or on
behalf of any person, company, enterprise or entity, or as a sole proprietor, partner, stockholder, director, officer, principal,
agent, executive, or in any other capacity or relationship, during his employment with Reed’s and for a period of six (6)
months thereafter:

 

(a)
encourage, solicit, induce, cause, or in any manner attempt to encourage, solicit, induce or cause any person, firm, corporation,
or other entity or organization which is a client, customer, account, vendor, supplier, distributor, licensee of, or has any business
relationship with, Reed’s or any of its subsidiaries to terminate such relationship with, reduce the amount of business
conducted with, or change in a manner adverse to Reed’s or its subsidiaries; or

 

(b)
encourage, solicit, induce, cause, or in any manner attempt to encourage, solicit, induce or cause, any person employed by or
providing services to Reed’s or its subsidiaries to leave, curtail, or change in a manner adverse to Reed’s, such
employment or service relationship.

 

    	 	 	 3

    	 		 

    

 

4.4
Cooperation. The Executive agrees that, following any termination of the Executive’s employment, the Executive will
continue to provide reasonable cooperation to Reed’s and/or any of its subsidiaries and its or their respective counsel
in connection with any investigation, administrative proceeding, or litigation relating to any matter that occurred during the
Executive’s employment in which the Executive was involved or of which the Executive has knowledge. As a condition of such
cooperation, Reed’s shall reimburse the Executive for reasonable out-of-pocket expenses incurred at the request of Reed’s
and shall compensate Executive at a daily rate equal to his daily rate of compensation at the time of termination of his employment.
The Executive also agrees that, in the event that the Executive is subpoenaed by any person or entity (including, but not limited
to, any government agency) to give testimony or provide documents (in a deposition, court proceeding, or otherwise) that in any
way relates to the Executive’s employment by Reed’s, the Executive will, if legally permitted, give prompt notice
of such request to Reed’s and, unless legally required to do so, will make no disclosure until Reed’s subsidiaries
has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure.

 

4.5
Property; Inventions and Patents.

 

(a)
Property. Executive agrees that all inventions, innovations, improvements, technical information, systems, software developments,
methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos, products, equipment, and all similar
or related information and materials (whether patentable or unpatentable) (collectively, “Inventions”) which relate
to the Company’s actual or planned business, research and development, or existing or future products or services and which
are conceived, developed, or made by Executive (whether or not during usual business hours and whether or not alone or in conjunction
with any other person) while employed by the Company (including those conceived, developed, or made prior to the date of this
Agreement) together with all patent applications, letters patent, trademark, brands, tradename and service mark applications or
registrations, copyrights, and reissues thereof that may be granted for or upon any of the foregoing (collectively referred to
herein as, the “Work Product”), belong in all instances to such member of the Company. Executive will promptly disclose
such Work Product to the Company and perform all actions reasonably requested by the Company (whether during or after the Term)
to establish and confirm the Company’s ownership of such Work Product (including, without limitation, the execution and
delivery of assignments, consents, powers of attorney, and other instruments) and to provide reasonable assistance to the Company
(whether during or after the Term) in connection with the prosecution of any applications for patents, trademarks, brands, trade
names, service marks, or reissues thereof or in the prosecution or defense of interferences relating to any Work Product. Executive
recognizes and agrees that the Work Product, to the extent copyrightable, constitutes works for hire under the copyright laws
of the United States and that to the extent Work Product constitutes works for hire, the Work Product is the exclusive property
of the Company, and all right, title, and interest in the Work Product vests in the Company. To the extent Work Product is not
works for hire, the Work Product, and all of Executive’s right, title, and interest in Work Product, including without limitation
every priority right, is hereby assigned to the Company.

 

    	 	 	 4

    	 		 

    

 

(b)
Cooperation. Executive shall, during the Term and at any time thereafter, at the expense of Reed’s and with no expense or
potential expense or liability to the Executive, assist and cooperate with the Company in obtaining for the Company the grant
of letters patent, copyrights, and any other intellectual property rights relating to the Work Product in the United States and/or
such other countries as the Company may designate. With respect to Work Product, Executive shall, during the Term and at any time
thereafter, at the expense of Reed’s and with no expense or potential expense or liability to the Executive, execute all
applications, statements, instruments of transfer, assignment, conveyance or confirmation, or other documents, furnish all such
information to the Company and take all such other appropriate lawful actions as the Company requests that are necessary to establish
the Company’s ownership of such Work Product. Executive will not assert or make a claim of ownership of any Work Product,
and Executive will not file any applications for patents or copyright or trademark registration relating to any Work Product,
except on behalf of or as directed by Reed’s.

 

(c)
No Designation as Inventor; Waiver of Moral Rights. Executive agrees that the Company shall not be required to designate Executive
as the inventor or author of any Work Product. Executive hereby irrevocably and unconditionally waives and releases, to the extent
permitted by applicable law, all of Executive’s rights to such designation and any rights concerning future modifications
to any Work Product. To the extent permitted by applicable law, Executive hereby waives all claims to moral rights in and to any
Work Product.

 

(d)
Pre-Existing and Third Party Materials. Executive will not, in the course of employment with the Company, incorporate into or
in any way use in creating any Work Product any pre-existing invention, improvement, development, concept, discovery, works, or
other proprietary right or information owned by Executive or in which Executive has an interest without the Company’s prior
written permission. Executive hereby grants the Company a nonexclusive, royalty-free, fully-paid, perpetual, irrevocable, sublicensable,
worldwide license to make, have made, modify, use, sell, copy, and distribute, and to use or exploit in any way and in any medium,
whether or not now known or existing, such item as part of or in connection with such Work Product. Executive will not incorporate
any invention, improvement, development, concept, discovery, intellectual property, or other proprietary information owned by
any party other than Executive into any Work Product without the Company’s prior written permission.

 

(e)
Attorney-in-Fact. Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents
as Executive’s agent and attorney-in-fact, to act for and on Executive’s behalf to execute and file any such applications
and to do all other lawfully permitted acts as contemplated by this Section 4 above to further the prosecution and issuance of
patents, copyright, trademark, and mask work registrations with the same legal force and effect as if executed by Executive, if
the Company is unable because of Executive’s unavailability, dissolution, mental or physical incapacity, or for any other
reason, to secure Executive’s signature for the purpose of applying for or pursuing any application for any United States
or foreign patents or mask work or copyright or trademark registrations covering the Work Product owned by the Company pursuant
to this Section.

 

Section
5  Compensation.

 

5.1
Base Salary. The Executive will be paid a base salary at the initial rate of $300,000 per year (the “Base Salary”).
Base Salary will be automatically increased by $25,000 per year on each anniversary of the Effective Date until the Base Salary
has reached $350,000 per year and thereafter shall be subject to annual review for additional increase, but not decrease, in the
sole discretion of the Board. The Base Salary will be payable in equal periodic installments in accordance with Reed’s customary
payroll practices.

 

    	 	 	 5

    	 		 

    

 

5.2
Bonus. In addition to the Base Salary, the Executive will be eligible to receive an annual or other periodic bonus for
each partial or full calendar year (which may, to the extent not relating to achievement of a specific objective established by
the Board in consultation with the Executive as provided below, be pro-rated for partial calendar years) included in the Term
at a target amount equal to 60% of then current Base Salary payable and based upon performance criteria to be established by the
Board in consultation with the Executive which are anticipated to consist of specific objectives for which specified portions
of Bonus will be payable upon achievement and any remainder discretionary based on individual and Company performance as determined
by the Board ( “Bonus”). Except as otherwise provided herein, in order to be eligible to receive the Bonus,
the Executive must be employed at the time of achievement of the specific objective relating thereto. Any portion of Bonus relating
to achievement of a specific objective will be paid upon or as soon as practicable after achievement of that objective and all
Bonus payments will in any event be paid not later March 15 of the calendar year following the full or partial calendar year to
which they relate. The Board and the Executive will consult in good faith to establish the Bonus criteria for each full or partial
year included in the Term starting with the Effective Date and with the commencement of each calendar year included in the Term
commencing after the Effective Date.

 

5.3
Benefits. The Executive will be entitled to four weeks of paid vacation per calendar year in accordance with the Company’s
vacation and paid time off policy, inclusive of vacation days and sick days and excluding standard paid Company holidays, in the
same manner as paid time off days for employees of the Company generally accrue. The Executive and his dependents will be entitled
to participate in all medical insurance and other benefit programs in effect from time to time and available to senior executives
of Reed’s at levels commensurate with Executive’s position as CEO and a member of the Board. Reed’s will reimburse
the Executive for the cost of maintaining any current medical and dental insurance coverage for himself and his dependence from
the Effective Date through the date he transitions himself and his dependents to Reed’s medical and dental insurance coverage
(but not for periods beyond December 31, 2017 if coverage is then provided to the Executive and his dependents through Reed’s
medical and dental insurance benefit programs at levels commensurate with the position of an executive officer). Reed’s
will provide Executive with a car allowance initially at $600 per month and subject to increase in the discretion of the Board.
Executive shall be entitled to reimbursement for expenses incurred in connection with performance of services to Reed’s,
including, without limitation, mobile phone and other communications equipment and travel expenses, in accordance with Reed’s
expense reimbursement policies as in effect from time to time. Upon submission of invoice, Reed’s will reimburse the Executive
for or pay directly all costs up to $3,500 incurred in connection with the negotiation and preparation of this Agreement.. During
the period from the Effective Date through December 31, 2017 (or such earlier date as the Executive may establish a permanent
residence in the Los Angeles area), Reed’s shall provide the Executive furnished executive housing for the Executive and
his family not to exceed $5,000 per month at a location selected by him in the Los Angeles area and a company car or rental or
leased car satisfactory to the Executive (without regard to the $600 per month car allowance above, but without duplication so
that the Executive shall not have both the $600 per month car allowance and the company or rental or leased car for overlapping
periods). To the extent any benefits provided under this Agreement are includible in the Executive’s taxable income, Reed’s
will pay the Executive an additional amount such that he shall be in the same after-tax position as if no such amounts were included
in his taxable income. The Executive will be entitled to indemnification and advancement of expenses to the fullest extent permitted
by law.

 

    	 	 	 6

    	 		 

    

 

5.6
Equity. The Executive will be entitled to participate in any equity incentive plan that may be adopted by Reed’s
at levels commensurate with his position as CEO and a member of the Board. Reed’s will amend its existing equity incentive
plan or adopt a new equity incentive plan as soon as practicable following the Effective Date and in any event during 2017 (“2017
Plan”). Once the plan is adopted and as soon as practicable following the Effective Date, the Executive shall receive initial
equity grants representing 4% of Reed’s fully-diluted equity (measured as of the Effective Date) (the “Initial Equity
Award”). It is anticipated that the Initial Equity Award will consist of restricted stock (the “Restricted Stock”)
and/ or stock options (the “Options” and together with the Restricted Stock and any additional equity or other
equity based awards to the Executive, the “Incentive Equity”). Reed’s and the Executive will consult
in good faith on the structure and terms of the Incentive Equity. The Initial Equity Award, whether in the form of Restricted
Stock and/ or Options (or in any other form) shall vest in two equal installments on each of the first two anniversaries of the
Effective Date and to the extent awarded as Options will be granted with an exercise price equal to the fair market value of the
shares subject to the Options as of the date of grant and become exercisable in two equal installments on the first two anniversaries
of the Effective Date. To the extent the Initial Equity Award is in the form of Restricted Stock, Reed’s and the Executive
will discuss a recourse loan arrangement in an amount equal to the tax payable by the Executive as a result of receipt and vesting
of the same with a forgiveness schedule equal to the vesting schedule and additional payments sufficient to cover all taxes incurred
in connection with any such forgiveness and any additional tax liability associated with such payment. The Executive will make
an election under Section 83(b) of the Code with respect to any Restricted Stock. Any Options shall have a term of 10 years. Vesting
of all Incentive Equity (and related payment rights) shall accelerate upon any Change in Control. “Change in Control”
for this purpose means any (i) any individual, entity or group (within the meaning of Section 13(d)(3) of the Securities Exchange
Act of 1933) (a “Person”) acquires beneficial ownership, directly or indirectly (within the meaning of Rule 13d-3
promulgated under the Exchange Act) (a “Beneficial Owner”), of more than fifty percent of the combined voting power
of the then issued and outstanding shares of the voting common stock of the Company (the “Voting Stock”), (ii) the
occurrence of a merger, consolidation, reorganization, share exchange or similar corporate transaction, whether or not the Company
is the surviving corporation, other than a transaction which would result in the Voting Stock outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
at least fifty percent of the voting stock of the Company or such surviving entity immediately after such transaction, or (iii)
the sale, transfer or disposition of all or substantially all of the business and assets of the Company to any Person. The Executive
may also make additional equity investments in Reed’s on terms that may be agreed upon by the Executive and Reed’s.

 

    	 	 	 7

    	 		 

    

 

Section
6  Termination of Employment.

 

6.1
Termination by Reed’s. Reed’s may terminate the Executive’s employment with Reed’s for Cause or
without Cause, effective immediately on the day Reed’s gives notice of such termination to the Executive. For purposes of
this Agreement, “Cause” means the Executive’s (a) willful failure or refusal to perform his duties hereunder
that continues 15 days after written notice from the Board specifying the alleged willful failure or refusal, (b) gross negligence
or gross misconduct in connection with the business of Reed’s that either continues 15 days after written notice from the
Board specifying the alleged gross negligence or gross misconduct or that has a material adverse effect on Reed’s, (c) conviction
of or plea of nolo contendere to any felony, (d) any crime involving moral turpitude (whether or not a felony), or (e) any other
criminal act involving embezzlement, misappropriation of money, fraud, theft, or bribery (whether or not a felony).

 

6.2
Termination by the Executive. The Executive may terminate the Executive’s employment with Reed’s for Good Reason
or without Good Reason, by written notice to Reed’s effective no earlier than 30 days after the date of such notice if termination
is other than for Good Reason (provided that Reed’s shall have the right to waive such 30-day notice period and accelerate
termination to any date on or after the date of such notice) and effective upon the expiration of the cure period described below
in this Section 6.2 if termination is for Good Reason. During any period between receipt of notice of termination from the Executive,
Reed’s may suspend, reduce, or otherwise modify any or all of Executive’s authority, duties, and responsibilities,
and may require the Executive’s absence from Reed’s offices without any such suspension, reduction, modification,
or requirement constituting grounds for Good Reason. “Good Reason” means any (a) Executive’s removal
as Chief Executive Officer, Executive being required to report to another person other than the Board, or Executive’s involuntary
loss of position on the Board, (b) reduction in Executive’s Base Salary, aggregate benefits, or incentive opportunity or
(c) any other material breach (whether or not specified above) of this Agreement by Reed’s. An event described in this Section
6.2 will not constitute Good Reason unless the Executive provides written notice to Reed’s of the Executive’s intention
to resign for Good Reason and specifying the event or circumstance giving rise to Good Reason within 90 days of its initial existence
and Reed’s does not cure such breach or action within 30 days after the date of the Executive’s notice. 

 

6.3
Death and Disability. The Executive’s employment under this Agreement will terminate upon the Executive’s death.
In addition, Reed’s may terminate the Executive’s employment with Reed’s by written notice to the Executive
due to Disability. For purposes of this Agreement, “Disability” means that the Executive has been unable, with
or without reasonable accommodation and due to physical or mental incapacity, to substantially perform the essential functions
of his duties for 90 days, whether consecutive or non-consecutive, within any calendar year,.

 

6.4
Termination of Agreement. This Agreement will terminate when all obligations of the parties under this Agreement have been
satisfied.

 

6.5 Resignations.
Upon any termination of the Executive’s employment hereunder for any reason, except as may otherwise be requested by
Reed’s in writing, the Executive agrees that he will resign from any and all directorships, committee memberships and
any officer positions that he holds with Reed’s or any of its subsidiaries.

 

    	 	 	 8

    	 		 

    

 

Section
7  Remuneration upon Termination of Employment.

 

7.1
Termination Prior to January 1, 2018. If the Executive’s employment with Reed’s is terminated for any reason
prior to January 1, 2018, the Executive shall be entitled to accrued and unpaid compensation and benefits (including, without
limitation, accrued vacation or paid time off, and then unreimbursed expenses) through the date of date of termination of Employment
(the “Accrued Benefits”). No termination of employment prior to January 1, 2018 shall be considered for any
purpose for Cause, without Cause, or for Good Reason.

 

7.2
Termination by Reed’s without Cause or by the Executive for Good Reason. If the Executive’s employment with
Reed’s is terminated after December 31, 2017 pursuant to Section 6.1 by Reed’s without Cause or pursuant to Section
6.2 by the Executive for Good Reason, the Executive will be entitled to the following:

 

(a)
the Accrued Benefits;

 

(b)
payment in lump sum within 30 days after the date of termination of employment of an amount equal to 6 months of the Executive’s
Base Salary in effect immediately prior to the Executive’s termination of employment with Reed’s plus any Bonus earned
and unpaid as well as a prorated Bonus for the year of termination, vested Incentive Equity and twelve months acceleration of
unvested Incentive Equity, calculated on a pro-rata, monthly basis and based on full calendar months, as well as payment of any
related amounts contemplated by Section 5.6 above (the “Severance Amount”). By way of example, if Executive
is terminated without cause or resigns for Good Reason on February 15, 2018, Executive’s accelerated pro-rata portion of
unvested Incentive Equity will be equal to one-half of Incentive Equity. In addition, to the extent permitted by applicable law,
subject to the Executive’s election of COBRA continuation coverage under Reed’s group health plan, on the first regularly
scheduled payroll date of each month during the six month period following the date of termination of employment (the “Severance
Period”), Reed’s will pay the Executive an amount equal to the difference between the monthly COBRA premium cost
and the premium cost to the Executive as if the Executive were an employee of Reed’s; provided, that such payments shall
cease earlier than the expiration of the Severance Period in the event that the Executive becomes eligible to receive any comparable
health benefits, including through a spouse’s employer, during the Severance Period (the “COBRA Payments”).
Executive will notify Reed’s of Executive’s eligibility for health benefits during the Severance Period within 15
days of such eligibility; and

 

(c)
any and all rights he may have as a holder of equity interests in Reed’s or under any applicable plan, program, or arrangement
of Reed’s, including the vested Equity Incentive and related payments.

 

7.3 Termination by Reed’s
for Cause, by the Executive without Good Reason. If the Executive’s employment with Reed’s is terminated for Cause,
or by the Executive without Good Reason, the Executive will be entitled to the Accrued Benefits and any and all rights he may have
as a holder of equity interests in Reed’s (including, without limitation, the vested Incentive Equity) or under any applicable
plan, program, or arrangement of Reed’s.

 

    	 	 	 9

    	 		 

    

 

7.4
Termination as a Result of Death or Disability. In the event of the termination of the Executive’s employment with
Reed’s pursuant to Section 6.3 as a result of death or Disability, the Executive or the Executive’s heirs will be
entitled to the Accrued Benefits.

 

7.5
Release. The payment of the Severance Amount and the COBRA Payment shall be conditioned upon the Executive’s (or,
if applicable the Executive’s estate’s or legal representative’s) execution, delivery to Reed’s, and non-revocation
of a release of claims (the “Release of Claims”) in substantially the form attached to this Agreement as Exhibit
A within 30 days following the date of the Executive’s termination of employment hereunder. Further, to the extent that
any portion of the Severance Amount or COBRA Payment constitutes “nonqualified deferred compensation” for purposes
of Section 409A of the Code (as defined below), any payment of any amount otherwise scheduled to occur prior to the thirtieth
(30th) day following the date of the Executive’s termination of employment hereunder, but for the condition on executing
the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following such thirtieth
(30th) day, after which any remaining installment of the Severance Amount or the COBRA Payment, as applicable, shall thereafter
be provided to Employee according to the applicable schedule set forth herein. With respect to any portion of the Severance Amount
or COBRA Payment that does not constitute “nonqualified deferred compensation” for purposes of Section 409A of the
Code (as defined below), any payment of any amount otherwise scheduled to occur following the date of the Executive’s termination
of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until
the first regularly scheduled payroll date following the date such Release of Claims is timely executed and the applicable revocation
period has ended, after which the entire Severance Amount and any unpaid installments of the COBRA Payment, as applicable, shall
thereafter be provided to Employee according to the applicable schedule set forth herein. Each payment of the Severance Amount
or COBRA Payment shall be deemed to be a separate payment for purposes of Section 409A of the Code.

 

7.6
Obligations Absolute. The payment and other obligations of Reed’s under this Agreement or in connection with the
Incentive Equity are absolute and unconditional and not subject to offset or any other defense. 

 

Section
8 General Provisions.

 

8.1
Notices. All notices and other communications under this Agreement must be in writing and are deemed duly delivered when
(a) delivered if delivered personally or by recognized overnight courier service (costs prepaid), (b) sent by facsimile with confirmation
of transmission by the transmitting equipment (or, the first business day following such transmission if the date of transmission
is not a business day) (c) sent by electronic mail with receipt acknowledged by the recipient via email reply, or (d) received
or rejected by the addressee, if sent by certified or registered mail, return receipt requested; in each case to the following
addresses or facsimile numbers and marked to the attention of the individual (by name or title) designated below (or to such other
address, facsimile number or individual as a party may designate by notice to the other parties in writing):

 

    	 	 	 10

    	 		 

    

 

If
to the Executive:

 

Valentin
Stalowir

125
Mile Common Road

Easton,
CT 06612

valstalowir@gmail.com

 

With
a copy which shall not constitute notice to:

 

Dowling,
LLC

211
Foreside Road

Falmouth,
ME 04105

adowling@dowlingllc.com

 

If
to Reed’s:

 

______________________

______________________

______________________

 

8.2
Amendment. This Agreement may not be amended, supplemented or otherwise modified except in a writing signed by the Executive
and a director or authorized officer of Reed’s (other than the Executive).

 

8.3
Waiver and Remedies. The Executive and Reed’s may (a) extend the time for performance of any of the obligations or
other acts of the other party, (b) waive any inaccuracies in the representations and warranties of the other party contained in
this Agreement or in any certificate, instrument or document delivered pursuant to this Agreement or (c) waive compliance with
any of the covenants, agreements or conditions for the benefit of such party contained in this Agreement. Any such extension or
waiver will be valid only if set forth in a written document signed on behalf of the party against whom the waiver or extension
is to be effective. No extension or waiver will apply to any time for performance, inaccuracy in any representation or warranty,
or noncompliance with any covenant, agreement or condition, as the case may be, other than that which is specified in the written
extension or waiver. No failure or delay by a party in exercising any right or remedy under this Agreement or any of the documents
delivered pursuant to this Agreement, and no course of dealing between the parties, operates as a waiver of such right or remedy,
and no single or partial exercise of any such right or remedy precludes any other or further exercise of such right or remedy
or the exercise of any other right or remedy. Any enumeration of a party’s rights and remedies in this Agreement is not
intended to be exclusive, and a party’s rights and remedies are intended to be cumulative to the extent permitted by law
and include any rights and remedies authorized in law or in equity. Because Executive’s services are special, unique, and
extraordinary and because Executive has access to Confidential Information and Work Product, the parties hereto agree that money
damages may be an inadequate remedy for any breach of Section 4 of this Agreement. Therefore, in the event of a breach or threatened
breach of Section 4 of this Agreement, the Company, or any of its successors or assigns may, in addition to other rights and remedies
existing in their favor at law or in equity, apply to any court of competent jurisdiction for specific performance and/or injunctive
or other relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security).

 

    	 	 	 11

    	 		 

    

 

8.4
Entire Agreement. This Agreement constitutes the entire agreement between the Executive and Reed’s with respect to
its subject matter and supersedes any prior understandings, agreements or representations between the parties, written or oral,
with respect to the subject matter of this Agreement.

 

8.5 Assignment
and Successors. This Agreement binds and benefits the parties and their respective heirs, executors,
administrators, successors and assigns, except that the Executive may not assign any rights under this Agreement without the
prior written consent of Reed’s and Reed’s may not assign this Agreement or any of its rights or obligations
hereunder without the prior written consent of the Executive except in the case of an assignment of this Agreement to a
successor to all or substantially all of the business and assets of Reed’s and its subsidiaries or any business
division thereof or a restructuring of Reed’s. The Executive’s obligations under this Agreement are personal to
the Executive and may not be delegated.

 

8.6
Severability. If any provision of this Agreement is held invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions of this Agreement are not affected or impaired in any way and the parties agree to
negotiate in good faith to replace such invalid, illegal and unenforceable provision with a valid, legal and enforceable provision
that achieves, to the greatest lawful extent under this Agreement, the economic, business and other purposes of such invalid,
illegal or unenforceable provision. A court of competent jurisdiction, if it determines any provision of this Agreement to be
unreasonable in scope, time or geography, is hereby authorized by the Executive and Reed’s to enforce the same in such narrower
scope, shorter time or lesser geography as such court determines to be reasonable and proper under all the circumstances.

 

8.8
Governing Law; Arbitration. The validity, interpretation, performance and enforcement of this Agreement shall be governed
by the laws of the California without giving effect to any choice of law rules or other conflicting provision or rule that would
cause the laws of any jurisdiction to be applied. Reed’s and the Executive agree that any and all disputes arising out of
the terms of this Agreement, the Executive’s employment by Reed’s, the Executive’s service as an employee or
officer of Reed’s or any of its subsidiaries, or the Executive’s compensation and benefits, will be subject to binding
arbitration in Los Angeles, California before the Judicial Arbitration and Mediation Services, Inc. under the Employment Arbitration
Rules of the American Arbitration Association then in effect, and consent to the jurisdiction to the federal or state courts in
Los Angeles, California to enforce any arbitration award rendered with respect thereto. The arbitration shall be conducted by
a single arbitrator as agreed upon between Reed’s and the Executive. If Reed’s and the Executive cannot agree on a
single arbitrator, the arbitration shall be conducted before a panel of three arbitrators, one selected by each party hereto and
the third arbitrator selected by the parties’ two arbitrators from a panel provided by the American Arbitration Association.
The costs of the arbitrator along with other arbitration-specific fees shall be borne equally by the parties. Each party shall
bear its own attorneys’ fees and expenses; provided that the arbitrator may assess the prevailing party’s fees and
costs against the non-prevailing party as part of the arbitrator’s award. The parties agree to abide by all decisions and
awards rendered in such proceedings. Such decisions and awards rendered by the arbitrators shall be final and conclusive. All
such disputes shall be settled in this manner in lieu of any action at law or equity; provided, however, that nothing in
this subsection shall be construed as precluding the bringing an action for injunctive relief or specific performance as provided
in this Agreement.

 

    	 	 	 12

    	 		 

    

 

8.11
Survival. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement
to the extent necessary to the intended preservation of such rights and obligations and to the extent that any performance is
required following termination or expiration of this Agreement.

 

8.12
Withholding. All amounts paid pursuant to this Agreement shall be subject to withholding for taxes (federal, state, local,
non-U.S. or otherwise) to the extent required by applicable law.

 

8.13
Counterparts. The parties may execute this Agreement in multiple counterparts, each of which constitutes an original as
against the party that signed it, and all of which together constitute one agreement. This Agreement is effective upon delivery
of one executed counterpart from each party to the other party. The signatures of all parties need not appear on the same counterpart.
The delivery of signed counterparts by facsimile or email transmission that includes a copy of the sending party’s signature
is as effective as signing and delivering the counterpart in person.

 

8.14
Code Section 409A Compliance; Parachute Payments. 

 

(a)
Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payment
of the benefits set forth herein shall either be exempt from, or in the alternative, comply with, the requirements of Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the published guidance thereunder (“Section
409A”). A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement
providing for the payment of any amounts or benefits upon or following a termination of employment that are considered “nonqualified
deferred compensation” under Section 409A unless such termination is also a “separation from service” within
the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,”
“Termination Date,” or like terms shall mean “separation from service.” Notwithstanding any provision
of this Agreement to the contrary, if Executive is a “specified employee” within the meaning of Section 409A, any
payments or arrangements due upon a termination of Executive’s employment under any arrangement that constitutes a “nonqualified
deferral of compensation” within the meaning of Section 409A and which do not otherwise qualify under the exemptions under
Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption or the permitted payments under
Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall be delayed and paid or provided on the earlier of (a) the date which is six
months after Executive’s “separation from service” for any reason other than death, or (b) the date of Executive’s
death. This Agreement may be amended without requiring Executive’s consent to the extent necessary (including retroactively)
by the Company in order to preserve compliance with Section 409A. The preceding shall not be construed as a guarantee of any particular
tax effect for Executive’s compensation and benefits and the Company does not guarantee that any compensation or benefits
provided under this Agreement will satisfy the provisions of Section 409A. After any Termination Date, Executive shall have no
duties or responsibilities that are inconsistent with having a “separation from service” within the meaning of Section
409A as of the Termination Date and, notwithstanding anything in the Agreement to the contrary, distributions upon termination
of employment of nonqualified deferred compensation may only be made upon a “separation from service” as determined
under Section 409A and such date shall be the Termination Date for purposes of this Agreement. Each payment under this Agreement
or otherwise shall be treated as a separate payment for purposes of Section 409A. In no event may Executive, directly or indirectly,
designate the calendar year of any payment to be made under this Agreement which constitutes a “nonqualified deferral of
compensation” within the meaning of Section 409A and to the extent an amount is payable within a time period, the time during
which such amount is paid shall be in the discretion of the Company.

 

    	 	 	 13

    	 		 

    

 

(b)
All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements
of Section 409A. To the extent that any reimbursements are taxable to Executive, such reimbursements shall be paid to Executive
on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred.
Reimbursements shall not be subject to liquidation or exchange for another benefit and the amount of such reimbursements that
Executive receives in one taxable year shall not affect the amount of such reimbursements that Executive receives in any other
taxable year.

 

(c)
If any payment, benefit, or distribution of any type to or for the benefit of Executive, whether paid or payable, provided or
to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Parachute
Payments”) would (as determined by the Company) subject Executive to the excise tax imposed under Section 4999 of the Code
(the “Excise Tax”), the Parachute Payments shall be reduced so that the maximum amount of the Parachute Payments (after
reduction) shall be one dollar less than the amount which would cause the Parachute Payments to be subject to the Excise Tax.
The Company shall reduce or eliminate the Parachute Payments by first reducing or eliminating any cash Parachute Payments that
do not constitute deferred compensation within the meaning of Section 409A, then by reducing or eliminating any other Parachute
Payments that do not constitute deferred compensation within the meaning of Section 409A, then by reducing or eliminating all
other Parachute Payments that do constitute deferred compensation within the meaning of Section 409A, beginning with those payments
last to be paid, subject to and in accordance with all applicable requirements of Section 409A. 

 

    	 	 	 14

    	 		 

    

 

8.15
Voluntary Execution; Representations. Executive acknowledges that (a) he or she has consulted with or has had the opportunity
to consult with independent counsel of his or her own choosing concerning this Agreement and has been advised to do so by the
Company, and (b) he or she has read and understands this Agreement, is competent and of sound mind to execute this Agreement,
is fully aware of the legal effect of this Agreement, and has entered into it freely based on his or her own judgment and without
duress.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

 

	 	REED’S,
    INC.
	 	 	 
	 	By:
    	/s/
    John Bello
	 	Name:
    	John
    Bello
	 	Title:
    	Chairman
    of the Board
	 	Date:
    	July
    10, 2017

 

	 	/s/
    Valentin Stalowir
	 	Valentin
    Stalowir
	 	Date: July
    10, 2017

 

[Signature
page to Employment Agreement]

 

    	 	 	 15

    	 		 

    

 

Exhibit
A

 

RELEASE

 

KNOW
ALL MEN BY THESE PRESENTS: That the undersigned, Valentin Stalowir (“Executive”), on behalf of himself and
his heirs, legal representatives, administrators, executors, successors and assigns, and each of them, for good and valuable consideration
received as set forth in the Employment Agreement dated as of July __, 2017 (the “Employment Agreement”) between
Reed’s, Inc., a Delaware corporation (the “Company”), does hereby unconditionally, knowingly, and voluntarily
release and forever discharge the Company, and its present and former related companies, subsidiaries and affiliates, and all
of their present and former executives, officers, managers, directors, owners, members, shareholders, partners, employees, agents,
and attorneys, including in their individual capacity, and each of its and their successors and assigns (hereinafter collectively
the “Released Parties”), from any and all known or unknown claims, demands, actions or causes of action that
now exist or may arise in the future, based upon events occurring or omissions on or before the date of the execution of this
Release, including, but not limited to any and all claims whatsoever pertaining in any way to Executive’s employment at
the Company or with any of the Released Parties or the termination of Executive’s employment, including, but not limited
to, any claims under: (1) the Americans with Disabilities Act; the Family and Medical Leave Act; Title VII of the Civil Rights
Act; 42 U.S.C. Section 1981; the Older Workers Benefit Protection Act; the Age Discrimination in Employment Act of 1967, as amended
(the “ADEA”); the Employee Retirement Income Security Act of 1974; the Civil Rights Act of 1866, 1871, 1964, and 1991;
the Rehabilitation Act of 1973; the Equal Pay Act of 1963; the Vietnam Veteran’s Readjustment Assistance Act of 1974; the
Occupational Safety and Health Act; and the Immigration Reform and Control Act of 1986; and any and all other federal, state,
local or foreign laws, statutes, ordinances, or regulations pertaining to employment, discrimination or pay; (2) any state tort
law theories under which an action could have been brought, including, but not limited to, claims of negligence, negligent supervision,
training and retention or defamation; (3) any claims of alleged fraud and/or inducement, or alleged inducement to enter into this
Release; (4) any and all other tort claims; (5) all claims for attorneys’ fees and costs; (6) all claims for physical, mental,
emotional, and/or pecuniary injuries, losses and damages of every kind, including but not limited to earnings, punitive, liquidated
and compensatory damages, and employee benefits; (7) any and all claims whatsoever arising under any of the Released Parties’
express or implied contract or under any federal, state, local, or foreign law, ordinance, or regulation, or the Constitution
of any State or the United States; (8) any and all claims whatsoever against any of the Released Parties for wages, bonuses, benefits,
fringe benefits, vacation pay, or other compensation or for any damages, fees, costs, or benefits, in each case, except to the
extent Executive has vested rights in any of the same; and (9) any and all claims whatsoever to reinstatement (collectively, the
“Released Claims”); provided, however, that, notwithstanding anything to the contrary contained herein, this
Release shall not cover and the Released Claims shall extend to any rights or claims, if any, of Executive (A) as a holder of
equity interests in the Company, (B) to indemnification or advancement of expenses, (C) under Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, (D) under any profit-sharing and/or retirement plans or benefits in which Executive has vested rights,
or (E) under Section 7 of the Employment Agreement. Executive also intends that this Release operate as a general release of any
and all claims to the fullest extent permitted by law and a waiver of all unknown claims of the type being released hereunder.

 

    	 	 	 16

    	 		 

    

 

Section
1542 of the Civil Code of the State of California states:

 

“A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

Notwithstanding
the provisions of Section 1542, and for the purpose of implementing a full and complete release and discharge of all Releasees
with respect to claims in California and all other jurisdictions, Executive expressly acknowledges that this is intended to include
not only claims that are known, anticipated, or disclosed, but also claims that are unknown, unanticipated, and undisclosed.

 

Executive
acknowledges that the Severance Amount and the COBRA Payment are in addition to anything of value to which Employee already is
entitled from the Company and constitutes good and valuable consideration for this Release.

 

Executive
represents and warrants that he has not previously filed, and to the maximum extent permitted by law agrees that he will not file,
a complaint, charge, or lawsuit against any member of the Released Parties regarding any of the claims released herein. If, notwithstanding
this representation and warranty, the Executive has filed or files such a complaint, charge, or lawsuit, he agrees that he shall
cause such complaint, charge, or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining
dismissal of such complaint, charge, or lawsuit, including without limitation the attorneys’ fees of any member of the Released
Parties against whom he has filed such a complaint, charge, or lawsuit. This paragraph shall not apply, however, to a claim of
age discrimination under the ADEA or to any non-waivable right to file a charge with the United States Equal Employment Opportunity
Commission (the “EEOC”); provided, however, that if the EEOC were to pursue any claims relating to the
Executive’s employment with Company, the Executive agrees that he shall not be entitled to recover any monetary damages
or any other remedies or benefits as a result and that this Release and Section 7 of the Employment Agreement will control as
the exclusive remedy and full settlement of all such claims by the Executive.

 

Executive
agrees not to make disparaging, critical or otherwise detrimental comments to any person or entity concerning the Released Parties;
the products, services or programs provided or to be provided by the Released Parties; the business affairs or the financial condition
of the Released Parties; or the circumstances surrounding Executive’s employment and/or termination of employment from Company.
Company agrees to cause its executive and senior management teams not to take any action, or encourage others to take any action,
to disparage or criticize Executive.

 

Executive
acknowledges that he has been given the opportunity to review and consider this Release for twenty-one (21) days from the date
he received a copy. If he elects to sign before the expiration of the twenty-one (21) days, Executive acknowledges that he will
have chosen, of his own free will without any duress, to waive his right to the full twenty-one (21) day period.

 

    	 	 	 17

    	 		 

    

 

Executive
may revoke this Release after signing it by giving written notice to the Company’s Board of Directors, within seven (7)
days after signing it (the “Revocation Period”). This Release, provided it is not revoked, will be effective
on the eighth (8th) day after execution. The Executive acknowledges and agrees that if he revokes this Release during the Revocation
Period, this Release will be null and void and of no effect, and neither the Company nor any other Released Party will have any
obligations to pay the Executive the amounts under Section 7 of the Employment Agreement.

 

Executive
acknowledges that he has consulted with an attorney prior to signing this Release and that he has no knowledge of any facts or
circumstances that give rise or could give rise to any claims under any of the laws listed in this Release.

 

Executive
is signing this Release knowingly, voluntarily and with full understanding of its terms and effects. Executive is signing this
Release of his own free will without any duress, being fully informed and after due deliberation. Executive voluntarily accepts
the consideration provided to him for the purpose of making full and final settlement of all claims referred to above. This Release
shall be governed by and construed in accordance with the laws of the State of California.

 

IN
WITNESS WHEREOF, Executive has duly executed this Release effective as of ___________, 20__.

 

		 
	Valentin
    Stalowir	 

 

    	 	 	 18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]