Document:

reeds_s3a2-ex0406.htm

EXHIBIT
4.6

     

    [FORM
OF NOTICE TO BENEFICIAL STOCKHOLDERS OF COMMON STOCK]

     

    REED’S,
INC.

     

    NOTICE
TO CLIENTS OF STOCKHOLDERS WHO ARE ACTING AS NOMINEES

    

    Up to
300,000 Shares of Series B Convertible Preferred Stock Issuable
Upon

    Exercise
of Rights to Subscribe for Such Shares at $10.00 per Share

     

    Enclosed for your consideration is a
prospectus, dated
[                      ],
2009 (the “Prospectus”),
relating to the offering by Reed’s, Inc., a Delaware corporation (the “Company”) of subscription
rights (the “Rights
Offering”) to purchase shares of the Company’s Series B Convertible
Preferred Stock (“Preferred
Stock”), by stockholders of record (“Record Date Stockholders”) as
of 5:00 p.m., New York City time, on
[                 ],
2009 (the “Record
Date”).

     

    Pursuant to the offering, the Company
is issuing Rights to subscribe for up to 300,000 shares of the Company’s Series
B Preferred, on the terms and subject to the conditions described in the
Prospectus. The Rights may be exercised at any time during the subscription
period, which commences on
[                   ],
2009 and ends at 5:00 p.m., New York City time, on
[                ],
2009, unless extended by the Company in its sole discretion (as it may be
extended, the “Expiration
Date”). The Series B Preferred will not be listed on the NASDAQ Capital
Market; however the Company intends to apply to the OTC Bulletin Board for
quotation of the Series B Preferred. The Rights are transferable and will be
listed for trading on the NASDAQ Capital Market under the symbol “REEDR” during
the course of this offering.

     

    As described in the Prospectus,
Record Date Stockholders will receive one (1) Right for each share of the
Company’s common stock. $0.0001 par value, owned on the Record
Date.

    

    Four (4) Rights entitle the holder
(the “Rights Holders”)
to purchase one share of Series B Preferred at the subscription price of $10.00
per share (the “Basic
Subscription Right”).

    

    Rights
Holders who fully exercise their Basic Subscription Right will be entitled to
subscribe for additional shares that remain unsubscribed as a result of any
unexercised Basic Subscription Right (the “Over-Subscription Right” and
together with the Basic Subscription Right, the “Rights”). If requests for
shares of Series B Preferred pursuant to he Basic Subscription Right exceed the
shares of Series Preferred available, the shares of Series B Preferred will be
allocated pro-rata among Rights Holders on the number of Rights then held. Each
Over-Subscription Right entitles the holder to subscribe for an additional
amount equal to up to 400% of the shares of Series B Preferred for which such
holder was otherwise entitled to subscribe (calculated prior to the exercise of
any rights). If sufficient remaining shares of Series B Preferred are available,
all over-subscription requests will be honored in full. If requests for shares
of Series B Preferred pursuant to the Over-Subscription Right exceed the
remaining shares of Series Preferred available, the remaining shares of Series B
Preferred will be allocated pro-rata among Rights Holders who over-subscribe
based on the number of Rights then held. Rights may only be exercised for whole
numbers of shares; no fractional shares of Series B Preferred will be issued in
the Rights Offering.

     

    The
Rights will be evidenced by subscription certificates (the “Subscription
Certificates”).

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Enclosed
are copies of the following documents:

     

    
      	 
      	
              1.

            	
              Prospectus,
      dated
      [           ],
      2009; and

            

    

     

    
      	 
      	
              2.

            	
              Beneficial
      Owner Election Form.

            

    

     

    THE MATERIALS ENCLOSED ARE BEING
FORWARDED TO YOU AS THE BENEFICIAL OWNER OF COMMON STOCK CARRIED BY US IN YOUR
ACCOUNT BUT NOT REGISTERED IN YOUR NAME. EXERCISES OF RIGHTS MAY ONLY BE MADE BY
US AS THE RECORD OWNER AND PURSUANT TO YOUR INSTRUCTIONS.

     

    Accordingly, we request instructions
as to whether you wish us to elect to subscribe for any shares of Series B
Preferred to which you are entitled pursuant to the terms and subject to the
conditions set forth in the enclosed Prospectus. However, we urge you to read
the Prospectus carefully before instructing us to exercise any Rights. Your
instructions to us should be forwarded as promptly as possible in order to
permit us to exercise the Rights on your behalf in accordance with the
provisions of the offering. The Rights Offering will expire at 5:00 p.m.,
New York City time, on the Expiration Date. You will have no right to rescind
your subscription after receipt of your payment of the subscription price,
except as described in the Prospectus. Rights not exercised at or prior to
5:00 p.m., New York City time, on the Expiration Date will
expire.

     

    If you
wish to have us, on your behalf, exercise your Rights for any shares of Series B
Preferred to which you are entitled, please so instruct us by completing,
executing and returning to us the Beneficial Owner Election Form included with
this letter.

     

    ANY
QUESTIONS OR REQUESTS FOR ASSISTANCE CONCERNING THE RIGHTS OFFERING SHOULD BE
DIRECTED TO MACKENZIE PARTNERS, INC., THE INFORMATION AGENT, TOLL-FREE AT THE
FOLLOWING TELEPHONE NUMBER: (800) 322-2885

     

     

     

    2reeds_s3a2-ex0407.htm

EXHIBIT
4.7

     

    [FORM
OF BENEFICIAL OWNER ELECTION FORM ]

     

    FORM
OF BENEFICIAL OWNER ELECTION

     

    The undersigned acknowledge(s)
receipt of your letter and the enclosed materials referred to therein relating
to the offering (the “Rights
Offering”) by Reed’s, Inc., a Delaware corporation (the “Company”) of subscription
rights (the “Rights”) to
purchase shares of the Company’s Series B Convertible Preferred Stock
(“Series B
Preferred”).

     

    With respect to any instructions to
exercise (or not to exercise) the Rights, the undersigned acknowledges that this
form must be completed and returned such that it will actually be received by
you by 5:00 p.m., New York City time, on
[           ], 2009, the
last business day prior to the scheduled expiration date of the Rights Offering
of [          ], 2009 (which
may be extended by the Company in its sole discretion).

     

    This will instruct you whether to
exercise Rights to purchase shares of the Series B Preferred distributed with
respect to the shares of the Company’s common stock, $0.0001 par value, held by
you for the account of the undersigned, pursuant to the terms and subject to the
conditions set forth in the Prospectus and the related Subscription Rights
Certificates.

     

    Box 1.  ̈
• Please DO NOT EXERCISE RIGHTS for shares of Series B Preferred.

     

    Box 2.  ̈
• Please EXERCISE RIGHTS for shares of Series B Preferred as set forth
below.

     

    The
number of Rights for which the undersigned gives instructions for exercise under
the Basic Subscription Rights should not exceed the number of Rights that the
undersigned is entitled to exercise.

     

    
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
              
                 

                Number of Shares

              

            	 
      	
              Per
      Share

              
                Subscription
      Price

              

            	 
      	
              
                 

                Payment

              

            
	 
      	 
      	 
      	 
      
	
              Basic
      Subscription Right

            	 
      	
              [            ]
      X

            	 
      	
              $[            ]
      =

            	 
      	
              $________
      (Line 1)

            
	 
      	 
      	 
      	 
      
	
              Over-Subscription
      Right

            	 
      	
              [            ]
      X

            	 
      	
              $[            ]
      =

            	 
      	
              $________ (Line 2)

            
	 
      	 
      	 
      	 
      
	 
      	 
      	
              Total
      Payment Required

            	 
      	 
      	 
      	
              $________            

            
	 
      	 
      	 
      	 
      	 
      	 
      	
              (Sum
      of Lines 1 and 2 must equal total of amounts in Boxes 3 and
    4)

            

    

     

    Box 3.
 ̈ • Payment in the
following amount is enclosed $            .

     

    Box 4.
 ̈ • Please deduct
payment from the following account maintained by you as follows:

     

    
      	 
      
	
              Type of Account:
                                               
                                 

            
	
              Account
      No.:                                          
                                        

            
	
              Amount to be deducted:            $                     
                              

            

    

     

    
      	 
      
	
              Signature:
                                               
                                             

            
	
              Name:
                                               
                                               
          

            
	
              Title:
                                               
                                               
            

            
	
              Date:
                          ,2009reeds_s3a2-ex0408.htm

    EXHIBIT 
4.8

    
 

    

    PRELIMINARY
SUBSCRIPTION AGREEMENT

    

    REED’S,
INC.

    13000
SOUTH SPRING STREET

    LOS
ANGELES, CALIFORNIA 90061

    ATTN:
CHRISTOPHER J. REED

    

    Ladies
and Gentlemen:

    

    I hereby
subscribe to purchase the number of shares of Series B Convertible Preferred
Stock (the “shares”) of Reed’s, Inc.. (the “Company”) indicated
below.

    

    I have
received a copy of the Company's prospectus, dated [ 
       ], 2009. I understand that my purchase
of the Company's stock involves significant risk, as described under “Risk
Factors” in the prospectus. I also understand that no federal or state agency
has made any finding or determination regarding the fairness of the Company's
offering of the shares, the accuracy or adequacy of the prospectus, or any
recommendation or endorsement concerning an investment in the
shares.

    

    I am not
sending the purchase price for the shares I wish to buy at this time. After I
receive the prospectus supplement announcing the results of the Company’s rights
offering to its shareholders, if I still wish to purchase shares, I will send
the Company an acknowledgment of subscription and a check in the amount of
$10.00 multiplied by the number of shares I wish to buy. My check will be made
payable to “Reed’s, Inc.”

    

    WHEN THE
COMPANY RECEIVES MY ACKNOWLEDGMENT OF SUBSCRIPTION AND MY CHECK, THIS
SUBSCRIPTION AGREEMENT WILL BECOME FINAL AND BINDING AND WILL BE IRREVOCABLE
UNTIL THE OFFERING IS CLOSED.

    

    NUMBER OF SHARES ___________

    

    TOTAL
SUBSCRIPTION PRICE

    (AT $10.00 PER
SHARE): ___________
*

    

    PLEASE
PRINT OR TYPE EXACT NAME(S) IN WHICH UNDERSIGNED DESIRES SHARES TO
BE

    REGISTERED:
______________________________________________________________

    

    * DO NOT
SEND THE PURCHASE PRICE FOR YOUR SHARES AT THIS TIME.

     

     

      
        

      

    

    

    SUBSTITUTE
W-9

    

    Under the
penalty of perjury, I certify that: (1) the Social Security number or Taxpayer
Identification Number given below is correct; and (2) I am not subject to backup
withholding.

    

    INSTRUCTION:
YOU MUST CROSS OUT (2) ABOVE IF YOU HAVE BEEN NOTIFIED BY THE INTERNAL REVENUE
SERVICE THAT YOU ARE SUBJECT TO BACKUP WITHHOLDING BECAUSE OF UNDERREPORTING
INTEREST OR DIVIDENDS ON YOUR TAX RETURN.

     

    
      
        
          
            	 
      	 
      	 
      
	
                    DATE

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                    SIGNATURE(S)*

                  

          

        

      

    

    

    
      	 
      
	
              AREA
      CODE AND TELEPHONE NO.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PLEASE
INDICATE FORM OF OWNERSHIP YOU DESIRE FOR THE SHARES (INDIVIDUAL, JOINT TENANTS
WITH RIGHT OF SURVIVORSHIP, TENANTS IN COMMON, TRUST, CORPORATION, PARTNERSHIP,
CUSTODIAN, ETC.):

     

     

      
        

      

    

     

    
      
        
          	 
      
	
                  SOCIAL
      SECURITY OR FEDERAL TAXPAYER

                
	
                  IDENTIFICATION
      NO.

                

        

      

    

     

    TO BE
COMPLETED BY THE COMPANY

    

    Accepted
as of _________, 2009, as to ______________ shares.

    

    REED’S,
INC.

    

    
      
        
          	
                  By:

                	 
      
	 
      	
                  Signature

                

        

      

    

    

    
      
        
          	 
      	 
      
	 
      	
                  Print
      Name

                

        

      

    

    

    * When signing as attorney, trustee,
administrator, or guardian, please give your full title as such. If a
corporation, please sign in full corporate name by president or other authorized
officer. In case of joint tenants, each joint owner must
sign.

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