Document:

Exhibit 10.37

 

SEPARATION,
SETTLEMENT AND RELEASE OF CLAIMS AGREEMENT

 

This
Separation, Settlement and Release of Claims Agreement (“Agreement”) is entered into by and between Reed’s Inc.,
a Delaware corporation, (the “Employer”) and Stefan Freeman (the “Employee”) (the Employer and the Employee
are collectively referred to herein as the “Parties”) as of November 22, 2019 (the “Execution Date”).
Employee and Employer are parties to that certain Employment Agreement effective October 4, 2017 (“Employment Agreement”).
This Agreement amends, supersedes and replaces in its entirety the Employment Agreement.

 

The
Employee’s last day of employment with the Employer is November 30, 2019 (the “Separation Date”). Prior to the
Separation Date, Employee will provide a list of open projects to complete and provide a timeline for completion. Employee will
make work diligently to complete open project work prior to November 30, 2019. After the Separation Date, the Employee will not
represent himself as being an employee, officer, agent or representative of the Employer for any purpose. Except as otherwise
set forth in this Agreement, the Separation Date will be the employment termination date for the Employee for all purposes, meaning
the Employee will no longer be entitled to any further compensation, monies, bonuses, equity awards, or other benefits from the
Employer, including coverage under any benefits plans or programs sponsored by the Employer, except as specifically provided in
this Agreement.

 

1.
Return of Property. Except as specifically provided in this Section 1, by the Separation Date, the Employee shall promptly
return to Reed’s any car, or other property provided to the Employee by Employer, and any other confidential or proprietary
information of Employer that remains in the Employee’s possession (“Reed’s Property”); provided, however,
that nothing in this Agreement or elsewhere shall prevent the Employee from retaining and utilizing documents and information
relating to his personal benefits, entitlements and obligations, documents relating to his personal tax obligations. If the Employee
discovers Reed’s Property in his possession after the Separation Date, he will notify Employer and promptly either deliver
the same to Employer or destroy it as directed by Employer. Employee may retain Employer issued laptop, provided Employer may
confirm deletion of Reed’s Property by inspection performed within a reasonable time following the Effective Date.

 

2.
Employer’s Waiver and Release and Employee Representations. 

 

(a)
The Employer expressly waives and releases any and all claims, demands, actions, causes of actions, obligations, judgments, rights,
fees, damages, debts, obligations, liabilities and expenses (inclusive of attorneys’ fees) of any kind whatsoever (collectively,
“Claims”), whether known or unknown, that the Employer may have or have ever had against the Employee by reason of
any actual or alleged act, omission, transaction, practice, conduct, occurrence, or other matter that may be waived and released
by law with the exception of claims arising out of or attributable to (a) events, acts or omissions taking place after the Parties’
execution of the Agreement and (b) the Employee’s breach of any terms and conditions of the Agreement.

 

    	 

    	 

    

 

(b)
Waiver of California Civil Code Section 1542

 

Employer
understands that it may later discover Claims or facts that may be different than, or in addition to, those which Employer now
knows or believes to exist with regards to the subject matter of this Agreement, and which, if known at the time of signing this
Agreement, may have materially affected this Agreement or Employer’s decision to enter into it. Nevertheless, the Employer
Releasors hereby waive any right or Claim that might arise as a result of such different or additional Claims or facts. The Employer
Releasors have been made aware of, and understand, the provisions of California Civil Code Section 1542 and hereby expressly waive
any and all rights, benefits and protections of the statute and the protection of any other state statutes that may be applicable,
which provides,

 

“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.”

 

(c)
In exchange for the Employer’s waiver and release and the consideration described in Section 3, which the Employee acknowledges
to be good and valuable consideration for his obligations hereunder, the Employee hereby represents that he intends to irrevocably
and unconditionally fully and forever release and discharge any and all Claims he may have or have ever had against the Employer
that may lawfully be waived and released arising out of or in any way related to his hire, benefits, employment or separation
from employment with the Employer with the exception of claims arising out of or attributable to (a) events, acts or omissions
taking place after the Parties’ execution of the Agreement and (b) the Employer’s breach of any terms and conditions
of the Agreement. The Employee specifically represents, warrants and confirms that: (a) he has no claims, complaints or actions
of any kind filed against the Employer with any court of law, or local, state or federal government or agency; (b) that upon receipt
of the accrued obligations set forth in Section 3(a), he has been properly paid his salary for period worked for the Employer,
and that all commissions, bonuses and other compensation due to him has been paid, including his final payroll check for his salary
and any accrued but unused vacation/paid time off through and including the Separation Date above; and (c) has reported all injuries
he has incurred during or as a result of his employment with Employer to human resources. The Employee specifically represents,
warrants and confirms that he has not engaged in, and is not aware of, any unlawful conduct in relation to the business of the
Employer. If any of these statements are not true, the Employee cannot sign this Agreement and must notify the Employer immediately,
in writing, of the statements that are not true. Such notice will not automatically disqualify the Employee from receiving these
benefits but will require the Employer’s review and consideration.

 

3.
Separation Benefits. In consideration for the Employee’s execution, non-revocation of, and compliance with this Agreement,
including the waiver and release of claims in Section 4, the Employer agrees to provide the following:

 

(a)
Accrued Obligations. On the Separation Date, Employer shall pay Employee (1) the gross amount of $12,836.54, representing base
salary earned but unpaid as of the Separation Date, before deduction of standard payroll taxes and deductions and (2) the gross
amount of $35,936.18, representing vacation and sick days earned but not taken prior to the Separation Date, before deduction
of standard payroll taxes and deductions. The Employer acknowledges and agrees that as of the date hereof it has reconciled and
paid all outstanding charges on Employee’s Company credit card. The Employee acknowledges and agrees that as of the date
hereof, he has made all requests for reimbursement of business expenses to which he may be entitled pursuant to the Employer’s
reimbursement policy, and provided such substantiation as may be required thereunder, and shall hereafter not have any right to
request reimbursement of any additional amounts.

 

    	 

    	 

    

 

(b)
Severance. Installment payments equal to the Employee’s current salary for the period commencing on the Separation Date
and terminating on June 30, 2020 (“Severance Period”), equaling a total of $131,250, before deduction of standard
payroll taxes and deductions, to be paid in bi-monthly increments starting on the first pay period following the Effective Date.

 

(c)
No Additional Restricted Stock Awards. It is understood 37,037 restricted stock awards were previously issued to Employee on June
10, 2018 and transferred to his brokerage account. No additional restricted stock awards will be issued to Employee pursuant to
this Agreement.

 

(d)
Stock Options. On the Effective Date, Employer will provide the Employee with a written option award agreement, reflecting aggregate
of 218,438 incentive stock options (“ISOs”) vested through the Separation Date. Employee’s vested ISOs
consist of (i) incentive stock options to purchase 30,000 shares of common stock of Reed’s Inc. at the exercise price of
$3.74 per share and (ii) incentive stock options to purchase 188,438 shares of common stock at the exercise price of $1.60 per
share. All ISOs will expire 90 days after the Separation Date.

 

(e)
If Employee timely and properly elects COBRA continuation coverage under Employer’s group health plan, the Employer will
pay 100% of Employee’s COBRA premiums until the earlier of final day of the Severance Period or commencement of coverage
sponsored by subsequent employer, including employer of spouse. If Employee’s COBRA coverage continues for the entire Severance
Period at the conclusion of the Severance Period, the Employee shall be eligible to continue his coverage, pursuant to COBRA,
and shall be responsible for the entire COBRA premium for the remainder of the applicable COBRA continuation period.

 

(f)
Upon the Employee’s signed request, the Employer will provide the Employee and/or a prospective employer written confirmation
of the Employee’s employment with the Employer, including his dates of employment and salary information.

 

(g)
The Employee understands, acknowledges and agrees that these benefits are in exchange for executing this Agreement. The Employee
further acknowledges no entitlement to any additional payment or consideration not specifically referenced herein.

 

4.
Release.

 

(a)
General Release and Waiver of Claims by Employee

 

The
Employee and his heirs, executors, representatives, agents, insurers, administrators, successors and assigns (collectively the
“Employee Releasors”) irrevocably and unconditionally fully and forever waive, release and discharge the Employer,
including the Employer’s affiliates, predecessors, successors and assigns, and all of their respective officers, directors,
employees, shareholders, in their corporate and individual capacities (collectively, the “Employer Releasees”) from
any and all Claims, whether known or unknown, from the beginning of time to the Effective Date of this Agreement, including, without
limitation, any Claims under any federal, state, local or foreign law, that Employee Releasors may have or have ever had arising
out of, or in any way related to the Employee’s hire, benefits, employment, termination or separation from employment with
the Employer and any actual or alleged act, omission, transaction, practice, conduct, occurrence or other matter, including, but
not limited to (i) any and all claims under Title VII of the Civil Rights Act, as amended, the Americans with Disabilities Act,
as amended, the Family and Medical Leave Act, as amended, the Fair Labor Standards Act, the Equal Pay Act, as amended, the Employee
Retirement Income Security Act, as amended (with respect to unvested benefits), the Civil Rights Act of 1991, as amended, Section
1981 of U.S.C. Title 42, the Sarbanes-Oxley Act of 2002, as amended, the Worker Adjustment and Retraining Notification Act, as
amended, the National Labor Relations Act, as amended, the Age Discrimination in Employment Act, as amended, the Genetic Information
Nondiscrimination Act of 2008, the California Fair Employment and Housing Act, as amended, and/or any other Federal, state, local
or foreign law (statutory, regulatory or otherwise) that may be legally waived and released; and (ii) any tort, contract and/or
quasi-contract law, including but not limited to claims of wrongful discharge, defamation, emotional distress, tortious interference
with contract, invasion of privacy, nonphysical injury, personal injury or sickness or any other harm. However, this general release
of claims excludes, and the Employee does not waive, release or discharge (i) any right to file an administrative charge or complaint
with the Equal Employment Opportunity Commission or other administrative agency; (ii) claims under state workers’ compensation
or unemployment laws; or (iii) indemnification rights the Employee has against the Employer, including without limitation under
Employer’s Articles of Incorporation, Bylaws or directors and officers insurance policies, and/or any other claims that
cannot be waived by law.

 

    	 

    	 

    

 

If
the Employee applies for unemployment benefits, the Employer shall not contest it. When so required, the Employer will answer
any inquiries by the Department of Labor concerning the termination of the Employee’s employment in a truthful manner.

 

(b)
Waiver of California Civil Code Section 1542

 

Employee
understands that he may later discover Claims or facts that may be different than, or in addition to, those which Employee now
knows or believes to exist with regards to the subject matter of this Agreement, and which, if known at the time of signing this
release, may have materially affected this Agreement or Employee’s decision to enter into it. Nevertheless, the Employee
Releasors hereby waive any right or Claim that might arise as a result of such different or additional Claims or facts. The Employee
Releasors have been made aware of, and understand, the provisions of California Civil Code Section 1542 and hereby expressly waive
any and all rights, benefits and protections of the statute and the protection of any other state statutes that may be applicable,
which provides,

 

“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.”

 

(c)
Specific Release of ADEA Claims

 

The
Employee Releasors hereby irrevocably and unconditionally fully and forever waive, release and discharge the Employer Releasees
from any and all Claims, whether known or unknown, from the beginning of time to the date of the Employee’s execution of
this Agreement arising under the Age Discrimination in Employment Act (ADEA), as amended, and its implementing regulations. By
signing this Agreement, the Employee hereby acknowledges and confirms that: (i) the Employee has read this Agreement in its entirety
and understands all of its terms; (ii) the Employee has been advised of and has availed himself of hid right to consult with his
attorney prior to executing this Agreement; (iii) the Employee knowingly, freely and voluntarily assents to all of the terms and
conditions set out in this Agreement including, without limitation, the waiver, release and covenants contained herein; (iv) the
Employee is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition
to anything of value to which he is otherwise entitled; and (v) the Employee understands that the release contained in this paragraph
does not apply to rights and claims that may arise after the date on which the Employee signs this Agreement.

 

    	 

    	 

    

 

(d)
General Release and Waiver of Claims by Employer

 

The
Employer and its representatives, agents, insurers, successors and assigns (collectively the “Employer Releasors”)
irrevocably and unconditionally fully and forever waive, release and discharge the Employee and the Employee’s heirs, executors,
representatives, agents, insurers, administrators, successors and assigns from any and all Claims, whether known or unknown, from
the beginning of time to the Effective Date of this Agreement, including, without limitation, any Claims under any federal, state,
local or foreign law, that Employer Releasors may have or have ever had arising out of, or in any way related to the Employee’s
hire, benefits, employment, termination or separation from employment with the Employer and any actual or alleged act, omission,
transaction, practice, conduct, occurrence or other matter, including, but not limited to claims under the Employment Agreement,
claims of defamation, breach of an express or implied contract, tortious interference with a contract or prospective business
advantage, breach of the covenant of good faith and fair dealing, promissory estoppel, detrimental reliance, or any other harm.

 

5.
Knowing and Voluntary Acknowledgement. The Employee specifically agrees and acknowledges that: (i) the Employee has read
this Agreement in its entirety and understands all of its terms; (ii) the Employee has been advised of and has availed himself
of his right to consult with his attorney prior to executing this Agreement; (iii) the Employee knowingly, freely and voluntarily
assents to all of its terms and conditions including, without limitation, the waiver, release and covenants contained herein;
(iv) the Employee is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration
in addition to anything of value to which he is otherwise entitled; (v) the Employee is not waiving or releasing rights or claims
that may arise after his execution of this Agreement; and (vi) the Employee understands that the waiver and release in this Agreement
is being requested in connection with the cessation of his employment with the Employer.

 

The
Employee further acknowledges that he has twenty-one (21) days to consider the terms of this Agreement and consult with an attorney
of his choice, although he may sign it sooner if desired. Further, the Employee acknowledges that he shall have an additional
seven (7) days from the date on which he signs this Agreement to revoke consent to his release of claims under the ADEA by delivering
notice of revocation to Sarah Yancy, HR Manager, at the Employer, syancy@reedsinc.com, by e-mail, fax or overnight delivery
before the end of such seven-day period. In the event of such revocation by the Employee, the Employer shall have the option of
treating this Agreement as null and void in its entirety.

 

This
Agreement shall not become effective, until November 30, 2019 (“Effective Date”). Such date shall be the Effective
Date of this Agreement. No payments due to the Employee hereunder shall be made or begin before the Effective Date.

 

    	 

    	 

    

 

6.
Post-termination Obligations and Restrictive Covenants.

 

(a)
Acknowledgment

 

The
Employee understands and acknowledges that by virtue of his employment with the Employer, he had access to and knowledge of Confidential
Information, was in a position of trust and confidence with the Employer and benefitted from the Employer’s goodwill. The
Employee understands and acknowledges that the Employer invested significant time and expense in developing the Confidential Information
and goodwill. The Employee further understands and acknowledges that the services he provided to the Employer are unique, special
or extraordinary.

 

The
Employee further understands and acknowledges that the restrictive covenants below are necessary to protect the Employer’s
legitimate business interests in its Confidential Information and goodwill and in the Employee’s unique, special or extraordinary
services. The Employee further understands and acknowledges that the Employer’s ability to reserve these for the exclusive
knowledge and use of the Employer is of great competitive importance and commercial value to the Employer and that the Employer
would be irreparably harmed if the Employee violates the restrictive covenants below.

 

(b)
Confidential Information.

 

(1)
Confidential Information. Employer’s “Confidential Information” is all confidential and/or proprietary knowledge,
trade secrets, data or information of the Employer entrusted to Employee, whether in writing, in computer form, or conveyed orally,
that is not generally available to others in the form in which such information is used by Employer and that gives Employer a
competitive advantage over other companies who do not have access to this information. By way of illustration but not limitation,
Confidential Information includes tangible and intangible information relating to formulations, products, processes, know-how,
designs, formulas, methods, developmental or experimental work; clinical data; improvements; discoveries; plans for research;
new products; marketing and selling; business plans; budgets; unpublished financial statements; licenses; prices and costs; suppliers;
customers; customer needs and preferences (such as typical order quantities and composition, delivery requirements or schedules,
particular pricing needs or discount arrangements, advertising allowances and methods of doing business); customer contracts,
credit procedures and terms; supplier identities, key decision makers at each supplier, and supplier specialties; pricing strategies
and rationale; contact information and information about compensation, specific capabilities, and performance evaluations of Employer
personnel; and any information described above that the Employer obtains from its clients or any other third party and that the
Employer treats as confidential, whether or not owned or developed by the Employer.

 

(2)
Employee understands that the above are simply examples of Employer’s Confidential Information, and not a complete list.
Employee further understands that as part of his duties Employee may have participated in developing Confidential Information
for Employer, which then became Employer’s Confidential Information.

 

    	 

    	 

    

 

(3)
Employee agrees that he will not appropriate for his own use, use, disclose, divulge, furnish, or make available to any person
any of the Employer’s Confidential Information; provided, that the term “Confidential Information” shall not
include such (A) information which is or becomes generally available to the public other than as a result of unauthorized or improper
disclosure by Employee, (B) information which was in the possession of Employee prior to the time of disclosure by Employer, (C)
information obtained from a third party who, to Employee’s knowledge, had the right to disclosure such information without
any confidentiality restrictions, or (D) information independently developed by Employee without the use of information disclosed
by Employer. Notwithstanding the foregoing, Employee may disclose Confidential Information to the extent he is compelled to do
so by lawful service of process, subpoena, court order, or as he is otherwise compelled to do by law or the rules or regulations
of any regulatory body to which he is subject, including full and complete disclosure in response thereto, in which event he agrees
(unless prohibited by law) to provide Employer with a copy of the documents seeking disclosure of such information promptly upon
receipt of such documents and prior to their disclosure of any such information, so that Employer may, upon notice to Employee,
take such action as Employer deems appropriate in relation to such subpoena or request and Employee (unless otherwise compelled
to do so by lawful service of process, subpoena, court order, or by law or the rules or regulations of any regulatory body or
governmental agency or instrumentality) may not disclose any such information until Employer has had the opportunity to take such
action.

 

(c)
Intellectual Property. Employee agrees that all right, title, and interest to all works of whatever nature generated in the course
of his employment with the Employer resides with the Employer. Employee agrees that he will return to Employer or delete or destroy,
not later than the Effective Date, all property, in whatever form (including computer files and other electronic data), of the
Employer in his possession, including without limitation, all copies (in whatever form) of all files or other information pertaining
to the Employer, its officers, employees, directors, shareholders, customers, suppliers, vendors, or distributors and any business
or business opportunity of the Employer.

 

(d)
Mutual Non-Disparagement. The Parties each agree that they, and in the case of Employer, its executive officers and directors,
shall not make any disparaging statements or representations, whether orally or in writing, by word or gesture, to any person
whatsoever, about the other Party or the other Party’s directors, officers, employees, attorneys, agents, or representatives,
as applicable. For purposes of this paragraph, a disparaging statement or representation is any communication which, if publicized
to another, would cause or tend to cause the recipient of the communication to question the business condition, integrity, competence,
good character, or product or service quality of the person or entity to whom the communication relates.

 

(e)
Non-Solicitation. To the full extent permitted by law, the Employee 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, for a period of six (6) months from the Effective Date:

 

(1)
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, Employer’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 Employer or its subsidiaries; or

 

    	 

    	 

    

 

(2)
encourage, solicit, induce, cause, or in any manner attempt to encourage, solicit, induce or cause, any person employed by or
providing services to Employer’s or its subsidiaries to leave, curtail, or change in a manner adverse to Employer, such
employment or service relationship.

 

(f)
Acknowledgements Respecting Restrictive Covenants. With respect to the restrictive covenants set forth in this Section 6, the
Parties acknowledge and agree that:

 

(1)
(A) Each of the restrictive covenants contained in this Section 6 shall be construed as a separate covenant with respect to each
activity to which it applies, (B) if, in any judicial proceeding, a court shall deem any of the restrictive covenants invalid,
illegal, or unenforceable because its scope is considered excessive, such restrictive covenant shall be modified so that the scope
of the restrictive covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal, and
enforceable, and (C) if any restrictive covenant (or portion thereof) is deemed invalid, illegal, or unenforceable in any jurisdiction,
as to that jurisdiction such restrictive covenant (or portion thereof) shall be ineffective to the extent of such invalidity,
illegality, or unenforceability, without affecting in any way the remaining restrictive covenants (or portion thereof) in such
jurisdiction or rendering that or any other restrictive covenant (or portion thereof) invalid, illegal, or unenforceable in any
other jurisdiction.

 

(2)
The Parties hereto hereby declare that it is impossible to measure in money the damages that will accrue to a Party in the event
the other Party breaches any of the restrictive covenants provided in this Section 6. In the event that a Party breaches any such
restrictive covenant, the nonbreaching Party shall be entitled to an injunction, a restraining order or such other equitable relief,
including, but not limited to, specific performance (without the requirement to post bond) restraining such Party from violating
such restrictive covenant. If the nonbreaching Party shall institute any action or proceeding to enforce the restrictive covenant,
the breaching Party hereby waives the claim or defense that the breaching Party has an adequate remedy at law and agrees not to
assert in any such action or proceeding the claim or defense that the nonbreaching Party has an adequate remedy at law.

 

(3)
The remedies provided for in this Section 6 are cumulative and in addition to any other rights and remedies the Parties may have
under law or in equity.

 

    	 

    	 

    

 

(g)
Cooperation. Employee agrees to cooperate with the Employer to the extent reasonably requested by the Employer for the
purpose of transitioning his duties and responsibilities. Employee will use his best efforts to make himself available as a consultant
to Employer as may be reasonably requested by Employer from time to time, on an as needed basis. Employee further agrees to cooperate
with Employer with regard to any litigation relating to Employee’s period of employment for which Employer reasonably requests
Employee’s participation. Employee’s agreement to consult respecting such litigation shall continue for the duration
of any such litigation. If requested by Employer, such cooperation shall include, without limitation, (1) responding reasonably
promptly to requests for information and documents in Employee’s possession concerning matters pertinent to any of the foregoing,
(2) making himself reasonably available as a witness and testifying at trial, depositions, hearings, or other proceedings, as
well as being reasonably available for adequate preparation for such testimony, and (3) participating at reasonable times in interviews
and meetings with representatives of the Employer, representatives of governments or regulatory authorities, or others designated
by Employer. The Employee agrees that, following the Effective Date, the Employee will continue to provide reasonable cooperation
to Employer 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 Employee’s employment in which the Employee was
involved or of which the Employee has knowledge. As a condition of such cooperation, Employer shall reimburse the Employee for
reasonable out-of-pocket expenses incurred at the request of Employer and shall compensate Employee at a daily rate equal to his
daily rate of compensation at the time of termination of his employment. The Employee also agrees that, in the event that the
Employee 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 Employee’s employment by Employer,
the Employee will, if legally permitted, give prompt notice of such request to Employer and, unless legally required to do so,
will make no disclosure until Employer or Employer’s subsidiaries has had a reasonable opportunity to contest the right
of the requesting person or entity to such disclosure.

 

(h)
Remedies. In the event of a breach or threatened breach by either Party of any of the provisions of this Agreement, such
Party hereby consents and agrees that the other Party shall be entitled to seek, in addition to other available remedies, a temporary
or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction,
without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the
necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of,
legal remedies, monetary damages or other available forms of relief.

 

7.
Heirs and Assigns. This Agreement is binding on and is for the benefit of the Parties hereto and their respective successors
(whether by merger, sale of assets, reorganization or other form of business acquisition, disposition or business reorganization),
assigns, heirs, executors, administrators, and other legal representatives. Neither this Agreement nor any right or obligation
hereunder may be assigned by Employee.

 

8.
Integration. This Agreement constitutes the complete agreement between the Employer and Employee regarding the issues addressed
in this Agreement. The terms of this Agreement may be changed, modified, or discharged only by an instrument in writing signed
by the Parties hereto. A failure of the Employer or Employee to insist on strict compliance with any provision of this Agreement
shall not be deemed a waiver of such provision or any other provision hereof. In the event that any provision of this Agreement
is determined to be so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

 

    	 

    	 

    

 

9.
Choice of Law. This Agreement shall be construed, enforced, and interpreted in accordance with and governed by the laws
of the State of California, without regard to its choice of law provisions.

 

10.
Withholding. The Employer may withhold from any and all amounts payable under this Agreement such federal, state, and local
taxes or other withholdings as may be required to be withheld pursuant to any applicable law or regulation.

 

11.
Construction of Agreement. The Parties hereto acknowledge and agree that each Party has reviewed and negotiated the terms
and provisions of this Agreement and has had the opportunity to contribute to its revision. Accordingly, the rule of construction
to the effect that ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement.
Rather, the terms of this Agreement shall be construed fairly as to both Parties hereto and not in favor or against either Party.

 

12.
Notice. Any notice or other communication required or permitted under this Agreement shall be effective only if it is in
writing and shall be deemed to be given when delivered personally or four days after it is mailed by registered or certified mail,
postage prepaid, return receipt requested or one day after it is sent by a reputable overnight courier service and, in each case,
addressed to the Employer, to its principal place of business and to Employee, to his address set forth on the signature page
hereof, or to such other address as any Party hereto may designate by notice to the other.

 

13.
Severability. The Parties hereto intend that the validity and enforceability of any provision of this Agreement shall not
affect or render invalid any other provision of this Agreement.

 

14.
Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification
is agreed to in writing and signed by the Employee and by Chief Executive Officer of the Employer. No waiver by either of the
Parties of any breach by the other Party hereto of any condition or provision of this Agreement to be performed by the other Party
hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time,
nor shall the failure of or delay by either of the Parties in exercising any right, power or privilege hereunder operate as a
waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

15.
Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and
no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

16.
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which
taken together shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement, by facsimile,
electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic
and pictorial appearance of a document, has the same effect as delivery of an executed original of this Agreement.

 

    	 

    	 

    

 

17.
No Admission. Nothing in this Agreement shall be construed as an admission of wrongdoing or liability on the part of either
Party.

 

18.
Attorneys’ Fees. Should either Party breach any of the terms of this Agreement or the post- termination obligations
herein, to the extent authorized by state law, the breaching Party will be responsible for payment of all reasonable attorneys’
fees and costs that the other Party incurred in the course of enforcing the terms of the Agreement, including demonstrating the
existence of a breach and any other contract enforcement efforts.

 

19.
Section 409A. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section
409A”) or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding
any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that
complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A
either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section
409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall
be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be
made upon a “separation from service” under Section 409A. Notwithstanding the foregoing, the Employer makes no representations
that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Employer be liable
for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Employee on account of
non-compliance with Section 409A.

 

20.
Acknowledgment of Full Understanding. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY
ENTERS INTO THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH
AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. THE EMPLOYEE FURTHER ACKNOWLEDGES THAT HIS SIGNATURE BELOW IS AN AGREEMENT
TO RELEASE EMPLOYER FROM ANY AND ALL CLAIMS RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT.

 

21.
Entire Agreement. This Agreement constitutes the entire agreement between the Parties 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. For clarity, all the terms of the Employment Agreement are amended, replaced and superseded
by this Agreement.

 

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Execution Date above.

 

	 	REED’S
    INC.
	 	 	 
	 	By	/s/
    Joann Tinnelly
	 	Name:	Joann
    Tinnelly
	 	Title:	Interim
    Chief Executive Officer

 

	EMPLOYEE
    	 
	 	 	 
	Signature:	/s/
    Stefan Freeman	 
	Name:
    	Stefan
    FreemanExhibit
10.38

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This
Employment Agreement (the “Agreement”) is made and effective as of December 2, 2019 (the “Effective Date”)
by and between Reed’s, Inc., a Delaware corporation (“Reed’s” or the “Company”), and Thomas
J. Spisak (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. Executive hereby represents and warrants to the Company that (i) the
execution, delivery and performance of this Agreement by Executive does not and will not conflict with, breach, violate or cause
a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which he or
she is bound, (ii) Executive is not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement
with any other person or entity (other than nondisclosure agreements with Executive’s prior employer(s), the terms of which
he has disclosed to the Company and which he does not expect to materially interfere with the performance of his obligations hereunder)
and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation
of Executive, enforceable in accordance with its terms. Executive hereby acknowledges and represents that he has had the opportunity
to consult with independent legal counsel regarding his or her rights and obligations under this Agreement and that he or she
fully understands the terms and conditions contained herein.

 

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 Financial Officer (“CFO”) of Reed’s and will
report to the Chief Executive Officer. The Executive will have the duties and responsibilities customarily attendant to the position
of CFO. Executive will also have such other duties and responsibilities that are commensurate with his position as specifically
delegated to him from time to time by the Chief Executive Officer. 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 Norwalk, Connecticut, 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 CFO and will perform his duties and carry out his responsibilities as CFO
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 for profit or not for profit organization so that it may review the same for compliance with
the terms of this Agreement.

 

4.2
Confidential Information. Executive acknowledges that the information, observations and data (including, without limitation,
trade secrets, know-how, research and inventions, processes, formulas, technology, designs, drawings, specifications, marketing
and advertising materials, distribution and sales methods and systems, sales and profit figures and other technical and business
information) concerning the business or affairs of the Company or any of its affiliates obtained by him or her while employed
by the Company (“Confidential Information”) are the property of the Company or such affiliate. Therefore, Executive
agrees that he or she shall not disclose to any unauthorized person or use for his or her own purposes any Confidential Information
without the prior written consent of the Company, unless and to the extent that the aforementioned matters become generally known
to and available for use by the public other than as a result of Executive’s acts or omissions to act. Executive will deliver
to the Company at the termination of the Term, or at any other time the Company may request, all memoranda, notes, plans, records,
reports, computer tapes, printouts and software and other documents and data (and copies thereof) to the extent containing Confidential
Information or Work Product (as defined below) of the Company or any of its affiliates which he or she may then possess or have
under his or her control.

 

4.3.
Inventions and Patents. Executive acknowledges that all inventions, innovations, improvements, developments, methods, designs,
analyses, drawings, reports and all similar or related information (whether or not patentable) which relate to the Company’s
or any of its affiliates’ actual or anticipated business, research and development or existing or future products or services
and which are conceived, developed or made by Executive while employed by the Company (“Work Product”) belong to the
Company or such affiliate. Executive shall promptly disclose such Work Product to the Company and perform all actions requested
by the Company (whether during or after the Term) to establish and confirm such ownership (including, without limitation, assignments,
consents, powers of attorney and other instruments).

 

4.4
Unfair Competitive Activities; Protection of Trade Secrets.

 

(a)
Executive acknowledges that Executive’s services to the Company require the use of information including a formula, pattern,
compilation, program, device, method, technique, or process that the Company has made reasonable efforts to keep confidential
and that derives independent economic value, actual or potential, from not being generally known to the public or to other persons
who can obtain economic value from its disclosure or use (“Trade Secrets”). Executive further acknowledges and agrees
that the Company would be irreparably damaged if Executive were to provide similar services requiring the use of such Trade Secrets
to any person or entity competing with the Company or engaged in a similar business. Therefore, Executive agrees that during the
period of Executive’s employment with the Company or any of its affiliates and thereafter until the later of (i) three (3)
month period immediately thereafter and (ii) the expiration of the Severance Period (the “Protection Period”), he
or she will not, either directly or indirectly, for himself or herself or any other person or entity (i) induce or attempt to
induce any employee of the Company or any of its affiliates to leave the employ of the Company or such affiliate, or in any way
interfere with the relationship between the Company or any affiliate and any employee thereof, (ii) induce or attempt to induce
any customer, supplier, licensee, licensor or other business relation of the Company or any affiliate to cease doing business
with the Company or such affiliate, or in any way interfere with the relationship between any such customer, supplier, licensee,
licensor or business relation and the Company or any affiliate (including, without limitation, making any negative statements
or communications about the Company or its affiliates) or (iii) Participate in any business in the United States that is directly
and materially competitive with the material business of the Company, the innovation, sale and distribution of ginger beer and
craft soda, in which he would be reasonably likely to employ, reveal, or otherwise utilize Trade Secrets used by the Company prior
to the Executive’s termination. “Participate” includes any direct or indirect interest in any enterprise, whether
as an officer, director, employee, partner, sole proprietor, agent, representative, independent contractor, consultant, executive,
franchisor, franchisee, creditor, owner or otherwise; provided that the foregoing activities shall not include the passive ownership
(i.e., Executive does not directly or indirectly participate in the business or management of the applicable entity) of less than
5% of the stock of a publicly-held corporation whose stock is traded on a national securities exchange.

 

    	 

    	 

    

 

(b)
Executive agrees that the aforementioned covenant contained in Section 4.4(a) is reasonable with respect to its duration, geographical
area and scope. In particular, Executive acknowledges and agrees that the Company and its affiliates conduct their businesses
on a worldwide basis and that the geographic scope of the covenant contained in Section 4.4(a) is necessary to protect the goodwill
and Confidential Information of the Company and its affiliates. Executive further acknowledges that the restrictions contained
in Section 4.4(a) do not impose an undue hardship on him or her due to the fact that he or she has general business skills which
may be used in industries other than those in which each of the Company and its affiliates conduct their businesses and do not
deprive Executive of his or her livelihood. Executive agrees that the covenants made in Section 4.4(a) shall be construed as agreements
independent of any other provision(s) of this Agreement and shall survive any order of a court terminating any other provision(s)
of this Agreement.

 

(c)
If, at the time of enforcement of Sections 4 of this Agreement, a court holds that the restrictions stated herein are unreasonable
under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under
such circumstances shall be substituted for the stated period, scope or area.

 

(d)
Because Executive’s services are unique and because Executive has access to Confidential Information and Work Product, the
parties hereto agree that money damages may not be an adequate remedy for any breach of this Agreement. Therefore, in the event
a breach or threatened breach of this Agreement, the Company or its successors or assigns may, in addition to other rights and
remedies existing in their favor, apply to any court 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). In addition, in the event of an
alleged breach or violation of this Section 4, the Protection Period will be tolled until such breach or violation has been duly
cured. Executive agrees that the restrictions contained in Section 4 are reasonable.

 

4.5.
Additional Acknowledgments. Executive acknowledges that the provisions of Section 4 are valuable consideration as set forth
in this Agreement. Executive expressly agrees and acknowledges that the restrictions contained in Sections 4 do not preclude Executive
from earning a livelihood, nor do they unreasonably impose limitations on Executive’s ability to earn a living. Executive
acknowledges that he or she has carefully read this Agreement and has given careful consideration to the restraints imposed upon
Executive by this Agreement.

 

4.6
Other Businesses. As long as Executive is employed by the Company, Executive agrees
that he or she will not, except with the express written consent of the Company, become engaged in, render services for, or permit
his or her name to be used in connection with any business other than the business of the Company or any of its affiliates.

 

    	 

    	 

    

 

4.7
Cooperation. Executive agrees that, following any termination of the Executive’s employment, 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 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. 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, 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.

 

Section
5 Compensation.

 

5.1
Base Salary. The Executive will be paid a base salary at the rate of $250,000.00 per year (the “Base Salary”).
The Base Salary shall be subject to annual review 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.

 

5.2
Bonus.

 

(a)
Annual Bonus. In addition to the Base Salary, 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 30% 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”). In order to be eligible to receive the Bonus, Executive must be employed at the time of achievement
of the specific objective relating thereto and at the time Bonus payments are determined and paid by the Company. 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.
Any bonus earned with respect to any partial fiscal year (if any) during the Term will be prorated based upon the number of days
elapsed in such fiscal year. In order to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as
amended and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”), it is agreed
that the bonus (if any) earned under this Section 5.2 shall be paid no later than (but may be paid earlier in accordance with
the Company’s usual practices) March 15th of the calendar year immediately following the calendar year in which the fiscal
year to which such bonus relates ended.

 

5.3
Benefits. Executive will be entitled to four (4) 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 CFO. The Company will reimburse Executive for all reasonable
expenses incurred by him in the course of performing his or her duties under this Agreement which are consistent with the Company’s
policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s
requirements with respect to reporting and documentation of such expenses. To the extent that any reimbursements or in-kind benefits
under this Agreement constitute “Non-qualified Deferred Compensation” for purposes of Code Section 409A, (i) all such
expenses, benefits or other reimbursements under this Agreement shall be made on or prior to the last day of the taxable year
following the taxable year in which such expenses were incurred by Executive, (ii) any right to such reimbursement or in kind
benefits is not subject to liquidation or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for
reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement,
or in-kind benefits to be provided in any other taxable year.

 

    	 

    	 

    

 

5.4
Equity. Executive shall be eligible to receive an initial equity award of (i) 150,000 incentive stock options and (ii)
150,000 restricted stock awards ((i) and (ii), the “Initial Equity Award”) ninety (90) days after the Effective Date
(“Grant Date”), in accordance with the terms and conditions of available plan and subject to Board approval and plan
availability. Of the Initial Equity Award, one-half (75,000 incentive stock options and 75,000 restricted stock awards) will vest
in equal increments of 18,750 on each of the first, second, third and fourth anniversaries of the Grant Date (“Incentive
Equity”). Of the Initial Equity Award, the remainder (75,000 incentive stock options and 75,000 restricted stock awards)
will vest based on performance criteria to be determined by the Board or compensation committee of the Board (as the case may
be) in its sole discretion (“Performance Equity”). Executive is responsible for all Federal and state taxes payable
by Executive as a result of the receipt vesting and exercise of Incentive Equity Awards. The Executive will make an election under
Section 83(b) of the Code with respect to any restricted stock awards. The Executive may also make equity investments in Reed’s
on terms that may be agreed upon by the Executive and Reed’s.

 

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 (i) a breach by Executive of his or her fiduciary duties to the Company; (ii) willful
and continued failure to perform his duties hereunder except by reason of Disability (defined below); (iii) the commission of
(A) any crime constituting a felony in the jurisdiction in which committed, (B) any crime involving moral turpitude (whether or
not a felony), (C) any other criminal act involving embezzlement, misappropriation of money, fraud, theft, or bribery (whether
or not a felony), or ( D) other willful misconduct that results in material damage to the Company’s business or reputation;
(iv) illegal or controlled substance abuse or insobriety by Executive; (v) any material breach of this Agreement or any other
conduct that is materially damaging to the Company, or is reasonably expected to be, materially damaging to the Company, whether
to the business interests, finance or reputation, as determined in the sole discretion of the compensation committee of the Board
of Directors; or (vi) any disqualifying event causing Company “bad actor” disqualification under Rule 506(d) of the
Securities Act of 1933, as amended.

 

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 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 30 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 60 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 officer positions that he holds with Reed’s or any of its subsidiaries.

 

Section
7 Remuneration upon Termination of Employment.

 

7.1
Termination Prior to March 1, 2020. If the Executive’s employment with Reed’s is terminated for any reason
prior to March 1, 2020, 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 termination of Employment (the “Accrued
Benefits”). No termination of employment prior to March 1, 2020 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 March 20, 2020 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)
installment payments equal to the Executive’s Base Salary in effect immediately prior to the Executive’s termination
of employment with Reed’s, less applicable taxes and withholdings, for the number of months included in the Severance Period,
calculated based on length of Executive’s continued employment with the Company immediately prior to termination (the “Severance
Amount”). The Executive will receive two months of severance for every full year of service, up to a maximum of six months
(“Severance Period”). For clarity, the Severance Period will not include severance for periods calculated based on
partial years of service. 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 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 vested equity interests in Reed’s or under any applicable plan, program, or
arrangement of Reed’s, including the vested awards under the Initial Equity Grant (“Vested Incentive Equity”).

 

7.3
Termination by Reed’s for Cause, by the Executive without Good Reason. If the Executive’s employment with Reed’s
is terminated after March 1, 2020 for Cause, or by the Executive without Good Reason, the Executive will be entitled to the Accrued
Benefits and Vested Incentive Equity.

 

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 and Vested Incentive Equity.

 

7.5
Deferred Compensation Matters.

 

(a)
The intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Internal Revenue Code
Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly,
to the maximum extent permitted the Employment Agreement shall be interpreted to be in compliance therewith or exempt therefrom.
In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on Executive
by Code Section 409A or damages for failing to comply with Code Section 409A.

 

(b)
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 unless such termination is also a “separation
from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references
to a “termination,” “termination of employment” or like terms shall mean “separation from service.”

 

(c)
To the extent that any payment of base salary or other compensation is to be paid for a specified continuing period of time beyond
the date of the Executive’s separation from service in accordance with the Company’s payroll practices (or other similar
term), the payments of such base salary or other compensation shall be made in no event less frequently than monthly. Notwithstanding
the foregoing, with respect to any payments that are intended to fall under the short-term deferral exemption from Code Section
409A, unless this Agreement provides a specified and objectively determinable payment schedule to the contrary, all payments due
thereunder shall be made as soon as practicable after the right to payment vests and in all events by March 15 of the calendar
year following the calendar year in which the right to payment vests. For purposes of this section, a right to payment will be
treated as having vested when it is no longer subject to a substantial risk of forfeiture as determined by the Company in its
sole discretion.

 

    	 

    	 

    

 

(d)
Notwithstanding any other payment schedule provided herein to the contrary, if Executive is identified on the date of his separation
from service a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B) (which generally
means a key employee of a corporation any stock of which is publicly traded on an established securities market or otherwise),
then, with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation subject
to Code Section 409A and payable on account of a “separation from service,” (i) such payment or benefit shall not
be made or provided until the date which is the earlier of (A) the expiration of the six (6) month period measured from the date
of Executive’s “separation from service” and (B) the date of Executive’s death (the “Delay Period”)
to the extent required under Code Section 409A and (ii) at the end of such six (6) month period, the Company shall make an additional
payment to Executive equal to the amount interest accruing at the then-current short-term applicable federal rate published by
the Internal Revenue Service on the value of any such payment or benefit, accruing from the date on which it would have otherwise
been paid or provided. Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section (whether
they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed
to Executive in a lump sum, and all remaining payments due under this Agreement shall be paid or provided in accordance with the
normal payment dates specified for them therein.

 

(e)
To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation”
subject to Code Section 409A, (i) all such expenses or other reimbursements hereunder shall be paid on or prior to the last day
of the taxable year following the taxable year in which such expenses were incurred by Executive, (ii) no such reimbursement,
expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible
for reimbursement, or in-kind benefits to provided, in any other taxable year, and (iii) Executive’s right to such reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for any other benefit.

 

(f)
For purposes of Code Section 409A, Executive’s right to receive any installment payment pursuant to the Employment Agreement
shall be treated as a right to receive a series of separate and distinct payments.

(g)
Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment
within the specified period shall be within the sole discretion of the Company.

 

(h)
Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that
constitutes nonqualified deferred compensation subject to Code Section 409A be subject to offset, counterclaim or recoupment by
any other amount payable to Executive unless otherwise permitted by Code Section 409A.

 

    	 

    	 

    

 

7.6
Notwithstanding anything in this Agreement to the contrary, the Company will have no obligation to pay the Severance Amount and
Cobra Payments payable under this Section 7 during such times as Executive is in breach of Sections 4 hereof. As a condition to
the Company’s obligations (if any) to pay the Severance Amount and Cobra Payments described in this Section 7, Executive
will execute and deliver a general release in the form attached hereto as Exhibit A (the “General Release”).
Executive shall forfeit all rights to the Severance Amount and Cobra Payments described in this Section unless the General Release
is signed and delivered (and no longer subject to revocation) within thirty (30) days following the date of Executive’s
separation from service. To the extent any such cash payment or continuing benefit to be provided is not nonqualified deferred
compensation subject to Code Section 409A, as determined by the Company in its sole discretion, then such payment or benefit shall
commence upon the first scheduled payment date immediately after the date the release is executed and no longer subject to revocation
(the “Release Effective Date”). The first such cash payment shall include payment of all amounts that otherwise would
have been due prior to the Release Effective Date under the terms of this Section 7.6 applied as though such payments commenced
immediately upon Executive’s separation from service, and any payments made thereafter shall continue as provided herein.
The delayed benefits shall in any event expire at the time such benefits would have expired had such benefits commenced immediately
following Executive’s separation from service. To the extent any such cash payment or continuing benefit to be provided
is nonqualified deferred compensation subject to Code Section 409A, as determined by the Company in its sole discretion, then
such payments or benefits shall be made or commence upon the sixtieth (60th) day following Executive’s separation from service.
The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under the terms
of this Section 4(b) had such payments commenced immediately upon the Executive’s separation from service, and any payments
made thereafter shall continue as provided therein. The delayed benefits shall in any event expire at the time such benefits would
have expired had such benefits commenced immediately following the Executive’s separation from service. The Company may
provide, in its sole discretion, that Executive may continue to participate in any benefits delayed pursuant to this section during
the period of such delay, provided that Executive shall bear the full cost of such benefits during such delay period. Upon the
date such benefits would otherwise commence pursuant to this Section 7.6, the Company may reimburse Executive the Company’s
share of the cost of such benefits, if any, had such benefits commenced immediately upon Executive’s separation from service.
Any remaining benefits shall be reimbursed or provided by the Company in accordance with the schedule and procedures specified
therein.

 

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):

 

If
to the Executive:

______________________

______________________

______________________

 

If
to Reed’s:

 

Attention:
Norman Snyder, Chief Operating Officer 

201
Merritt 7 Corporate Park

Norwalk
CT 06851

 

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. 

 

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.

 

8.7
Governing Law; Arbitration. The validity, interpretation, performance and enforcement of this Agreement shall be governed
by the laws of the Connecticut 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 Fairfield County, Connecticut 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 Fairfield County, Connecticut 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.

 

    	 

    	 

    

 

8.8
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.

 

8.9
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.

 

8.10
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.

 

8.11
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:	Interim
    Chief Executive Officer

 

	EMPLOYEE	 	 
	 	 	 
	Signature:	/s/
    Thomas J. Spisak	 
	Name:	Thomas
    J. Spisak	 

 

    	 

    	 

    

 

Exhibit
A

FORM
OF RELEASE

[NOT
FOR EXECUTION]

 

KNOW
ALL MEN BY THESE PRESENTS: That the undersigned, ________________ (“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 _________, 2019 (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.

 

Notwithstanding
the provisions of any state statute in effect that provides that 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, and for the purpose of implementing a full and complete release
and discharge of all Releasees with respect to claims in all 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 Executive 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.

 

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 Connecticut.

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