Document:

XSTREAM BEVERAGE GROUP, INC. AND CERTAIN OF ITS SUBSIDIARIES
                            MASTER SECURITY AGREEMENT

To:      Laurus Master Fund, Ltd.
         c/o Ironshore Corporate Services, Ltd.
         P.O. Box 1234 G.T
         Queensgate House
         South Church Street
         Grand Cayman, Cayman Islands

Date: May 14, 2004

To Whom It May Concern:

         1. To secure the payment of all Obligations (as hereafter defined),
Xstream Beverage Group, Inc., a Nevada corporation (the "Company"), each of the
other undersigned parties (other than Laurus Master Fund, Ltd, "Laurus")) and
each other entity that is required to enter into this Master Security Agreement
(each an "Assignor" and, collectively, the "Assignors") hereby assigns and
grants to Laurus a continuing security interest in all of the following property
now owned or at any time hereafter acquired by any Assignor, or in which any
Assignor now have or at any time in the future may acquire any right, title or
interest (the "Collateral"): all cash, cash equivalents, accounts, deposit
accounts (including, without limitation, the Restricted Account (the "Restricted
Account") maintained at North Fork Bank (Account Name: XStream Beverage Group,
Inc., Account Number: XXX XXX XXXX) referred to in the Restricted Account
Agreement), inventory, equipment, goods, documents, instruments (including,
without limitation, promissory notes), contract rights, general intangibles
(including, without limitation, payment intangibles and an absolute right to
license on terms no less favorable than those current in effect among our
affiliates), chattel paper, supporting obligations, investment property
(including, without limitation, all equity interests owned by any Assignor),
letter-of-credit rights, trademarks, trademark applications, patents, patent
applications, copyrights, copyright applications, tradestyles and any other
intellectual property, in each case, in which any Assignor now have or hereafter
may acquire any right, title or interest, all proceeds and products thereof
(including, without limitation, proceeds of insurance) and all additions,
accessions and substitutions thereto or therefore. In the event any Assignor
wishes to finance the acquisition in the ordinary course of business of any
hereafter acquired equipment and have obtained a commitment from a financing
source to finance such equipment from an unrelated third party, Laurus agrees to
release its security interest on such hereafter acquired equipment so financed
by such third party financing source. Except as otherwise defined herein, all
capitalized terms used herein shall have the meaning provided such terms in the
Securities Purchase Agreement referred to below.

         2. The term "Obligations" as used herein shall mean and include all
debts, liabilities and obligations owing by each Assignor to Laurus arising
under, out of, or in connection with: (i) that certain Securities Purchase

<PAGE>

Agreement dated as of the date hereof by and between the Company and Laurus (the
"Securities Purchase Agreement") and (ii) the Related Agreements referred to in
the Securities Purchase Agreement (the Securities Purchase Agreement and each
Related Agreement, as each may be amended, modified, restated or supplemented
from time to time, are collectively referred to herein as the "Documents"), and
in connection with any documents, instruments or agreements relating to or
executed in connection with the Documents or any documents, instruments or
agreements referred to therein or otherwise, and in connection with any other
indebtedness, obligations or liabilities of any Assignor to Laurus, whether now
existing or hereafter arising, direct or indirect, liquidated or unliquidated,
absolute or contingent, due or not due and whether under, pursuant to or
evidenced by a note, agreement, guaranty, instrument or otherwise, in each case,
irrespective of the genuineness, validity, regularity or enforceability of such
Obligations, or of any instrument evidencing any of the Obligations or of any
collateral therefor or of the existence or extent of such collateral, and
irrespective of the allowability, allowance or disallowance of any or all of the
Obligations in any case commenced by or against any Assignor under Title 11,
United States Code, including, without limitation, obligations or indebtedness
of each Assignor for post-petition interest, fees, costs and charges that would
have accrued or been added to the Obligations but for the commencement of such
case.

         3. Each Assignor hereby jointly and severally represents, warrants and
covenants to Laurus that:

                  (a) it is a corporation, partnership or limited liability
         company, as the case may be, validly existing, in good standing and
         organized under the respective laws of its jurisdiction of organization
         set forth on Schedule A, and each Assignor will provide Laurus thirty
         (30) days' prior written notice of any change in any of its respective
         jurisdiction of organization;

                  (b) its legal name is as set forth in its respective
         Certificate of Incorporation or other organizational document (as
         applicable) as amended through the date hereof and as set forth on
         Schedule A, and it will provide Laurus thirty (30) days' prior written
         notice of any change in its legal name;

                  (c) its organizational identification number (if applicable)
         is as set forth on Schedule A hereto, and it will provide Laurus thirty
         (30) days' prior written notice of any change in any of its
         organizational identification number;

                  (d) it is the lawful owner of the respective Collateral and it
         has the sole right to grant a security interest therein and will defend
         the Collateral against all claims and demands of all persons and
         entities;

                  (e) it will keep its respective Collateral free and clear of
         all attachments, levies, taxes, liens, security interests and
         encumbrances of every kind and nature ("Encumbrances"), except (i)
         Encumbrances securing the Obligations, (ii) to the extent said
         Encumbrance does not secure indebtedness in excess of $75,000 and such
         Encumbrance is removed or otherwise released within ten (10) days of
         the creation thereof, (iii) liens of warehousemen, mechanics,

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<PAGE>

         materialmen, workers, repairmen, common carriers, or landlords, liens
         for taxes, assessments or other governmental charges, and other similar
         liens arising by operation of law, in each case arising in the ordinary
         course of business and for amounts that are not yet due and payable or
         which are being contested in good faith by appropriate proceedings
         promptly instituted and diligently conducted and for which an adequate
         reserve or other appropriate provision shall have been made to the
         extent required by generally accepted accounting principals, and (iv)
         pledges or deposits in connection with workers' compensation,
         unemployment insurance and other social security legislation
         (collectively, the "Permitted Encumbrances");

                  (f) it will, at its and the other Assignors joint and several
         cost and expense, use commercially reasonably efforts to keep the
         Collateral in good state of repair (ordinary wear and tear excepted)
         and will not waste or destroy the same or any part thereof other than
         ordinary course discarding of items no longer used or useful in its or
         such other Assignors' business;

                  (g) it will not without Laurus' prior written consent, sell,
         exchange, lease or otherwise dispose of the Collateral, whether by
         sale, lease or otherwise, except for the sale of inventory in the
         ordinary course of business and for the disposition or transfer in the
         ordinary course of business during any fiscal year of obsolete and
         worn-out equipment or equipment no longer necessary for its ongoing
         needs, having an aggregate fair market value of not more than $25,000
         and only to the extent that:

                           (i) the proceeds of any such disposition are used to
                  acquire replacement Collateral which is subject to Laurus'
                  first priority perfected security interest, or are used to
                  repay Obligations or to pay general corporate expenses; and

                           (ii) following the occurrence of an Event of Default
                  which continues to exist the proceeds of which are remitted to
                  Laurus to be held as cash collateral for the Obligations;

                  (h) it will insure or cause the Collateral to be insured in
         Laurus' name against loss or damage by fire, theft, burglary,
         pilferage, loss in transit and such other hazards as in amounts which
         are customary for similarly situated businesses, and under policies by
         insurers acceptable to Laurus and all premiums thereon shall be paid by
         such Assignor and the policies delivered to Laurus. If any such
         Assignor fails to do so, Laurus may procure such insurance and the cost
         thereof shall be promptly reimbursed by the Assignors, jointly and
         severally, and shall constitute Obligations;

                  (i) it will at all reasonable times and upon reasonable
         advance notice to such Assignor allow Laurus or Laurus' representatives
         free access to and the right of inspection of the Collateral;

                  (j) such Assignor (jointly and severally with each other
         Assignor) hereby indemnifies and saves Laurus harmless from all loss,
         costs, damage, liability and/or expense, including reasonable
         attorneys' fees, that Laurus may sustain or incur to enforce payment,

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<PAGE>

         performance or fulfillment of any of the Obligations and/or in the
         enforcement of this Master Security Agreement or in the prosecution or
         defense of any action or proceeding either against Laurus or any
         Assignor concerning any matter growing out of or in connection with
         this Master Security Agreement, and/or any of the Obligations and/or
         any of the Collateral except to the extent caused by Laurus' own gross
         negligence or willful misconduct (as determined by a court of competent
         jurisdiction in a final and nonappealable decision).

                  4. The occurrence of any of the following events or conditions
         shall constitute an "Event of Default" under this Master Security
         Agreement:

                  (a) Breach of any covenant, warranty, representation or
         statement made or furnished to Laurus by any Assignor or on any
         Assignor's benefit was false or misleading in any material respect when
         made or furnished, and if subject to cure, shall not be cured for a
         period of fifteen (15) business days;

                  (b) the loss, theft, substantial damage, destruction, sale or
         encumbrance to or of any of the Collateral or the making of any levy,
         seizure or attachment thereof or thereon except to the extent:

                           (i) such loss is covered by insurance proceeds which
                  are used to replace the item or repayLaurus; or

                           (ii) said levy, seizure or attachment does not secure
                  indebtedness in excess of $100,000 and such levy, seizure or
                  attachment has not been removed or otherwise released within
                  ten (10) days of the creation or the assertion thereof;

                  (b) any Assignor shall become insolvent, cease operations,
         dissolve, terminate our business existence, make an assignment for the
         benefit of creditors, suffer the appointment of a receiver, trustee,
         liquidator or custodian of all or any part of Assignors' property;

                  (c) any proceedings under any bankruptcy or insolvency law
         shall be commenced by or against any Assignor and if commenced against
         any Assignor shall not be dismissed within forty-five (45) days;

                  (d) the Company shall repudiate, purport to revoke or fail to
         perform any or all of its obligations under any Note (after passage of
         applicable cure period, if any); or

                  (e) an Event of Default shall have occurred under and as
         defined in any Document, after giving effect to any applicable cure or
         grace period.

         5. Upon the occurrence of any Event of Default and at any time
thereafter, Laurus may declare all Obligations immediately due and payable and
Laurus shall have the remedies of a secured party provided in the Uniform
Commercial Code as in effect in the State of New York, this Agreement and other
applicable law. Upon the occurrence of any Event of Default and at any time
thereafter, Laurus will have the right to take possession of the Collateral and
to maintain such possession on our premises or to remove the Collateral or any

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<PAGE>

part thereof to such other premises as Laurus may desire. Upon Laurus' request,
each of the Assignors shall assemble or cause the Collateral to be assembled and
make it available to Laurus at a place designated by Laurus. If any notification
of intended disposition of any Collateral is required by law, such notification,
if mailed, shall be deemed properly and reasonably given if mailed at least ten
(10) days before such disposition, postage prepaid, addressed to any Assignor
either at such Assignor's address shown herein or at any address appearing on
Laurus' records for such Assignor. Any proceeds of any disposition of any of the
Collateral shall be applied by Laurus to the payment of all expenses in
connection with the sale of the Collateral, including reasonable attorneys' fees
and other legal expenses and disbursements and the reasonable expense of
retaking, holding, preparing for sale, selling, and the like, and any balance of
such proceeds may be applied by Laurus toward the payment of the Obligations in
such order of application as Laurus may elect, and each Assignor shall be liable
for any deficiency. For the avoidance of doubt, following the occurrence and
during the continuance of an Event of Default, Laurus shall have the immediate
right to withdraw any and all monies contained in the Restricted Account and
apply same to the repayment of the Obligations (in such order of application as
Laurus may elect).

         6. If any Assignor defaults in the performance or fulfillment of any of
the terms, conditions, promises, covenants, provisions or warranties on such
Assignor's part to be performed or fulfilled under or pursuant to this Master
Security Agreement, Laurus may, at its option without waiving its right to
enforce this Master Security Agreement according to its terms, immediately or at
any time thereafter and without notice to any Assignor, perform or fulfill the
same or cause the performance or fulfillment of the same for each Assignor's
joint and several account and at each Assignor's joint and several cost and
expense, and the cost and expense thereof (including reasonable attorneys' fees)
shall be added to the Obligations and shall be payable on demand with interest
thereon at the highest rate permitted by law, or, at Laurus' option, debited by
Laurus from the Restricted Account referred to in the Restricted Account
Agreement.

         7. Each Assignor appoints Laurus, any of Laurus' officers, employees or
any other person or entity whom Laurus may designate as our attorney, with power
to execute such documents in each of our behalf and to supply any omitted
information and correct patent errors in any documents executed by any Assignor
or on any Assignor's behalf; to file financing statements against us covering
the Collateral (and, in connection with the filing of any such financing
statements, describe the Collateral as "all assets and all personal property,
whether now owned and/or hereafter acquired" (or any substantially similar
variation thereof)); to sign our name on public records; and to do all other
things Laurus deem necessary to carry out this Master Security Agreement. Each
Assignor hereby ratifies and approves all acts of the attorney and neither
Laurus nor the attorney will be liable for any acts of commission or omission,
nor for any error of judgment or mistake of fact or law other than gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision). This power being coupled
with an interest, is irrevocable so long as any Obligations remains unpaid.

         8. No delay or failure on Laurus' part in exercising any right,
privilege or option hereunder shall operate as a waiver of such or of any other
right, privilege, remedy or option, and no waiver whatever shall be valid unless
in writing, signed by Laurus and then only to the extent therein set forth, and
no waiver by Laurus of any default shall operate as a waiver of any other

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<PAGE>

default or of the same default on a future occasion. Laurus' books and records
containing entries with respect to the Obligations shall be admissible in
evidence in any action or proceeding, shall be binding upon each Assignor for
the purpose of establishing the items therein set forth and shall constitute
prima facie proof thereof. Laurus shall have the right to enforce any one or
more of the remedies available to Laurus, successively, alternately or
concurrently. Each Assignor agrees to join with Laurus in executing financing
statements or other instruments to the extent required by the Uniform Commercial
Code in form satisfactory to Laurus and in executing such other documents or
instruments as may be required or deemed necessary by Laurus for purposes of
affecting or continuing Laurus' security interest in the Collateral.

         9. This Master Security Agreement shall be governed by and construed in
accordance with the laws of the State of New York and cannot be terminated
orally. All of the rights, remedies, options, privileges and elections given to
Laurus hereunder shall inure to the benefit of Laurus' successors and assigns.
The term "Laurus" as herein used shall include Laurus, any parent of Laurus',
any of Laurus' subsidiaries and any co-subsidiaries of Laurus' parent, whether
now existing or hereafter created or acquired, and all of the terms, conditions,
promises, covenants, provisions and warranties of this Agreement shall inure to
the benefit of and shall bind the representatives, successors and assigns of
each Assignor and each of the foregoing. Laurus and each Assignor hereby (a)
waive any and all right to trial by jury in litigation relating to this
Agreement and the transactions contemplated hereby and each Assignor agrees not
to assert any counterclaim in such litigation, (b) submit to the nonexclusive
jurisdiction of any New York State court sitting in the borough of Manhattan,
the city of New York and (c) waive any objection Laurus or each Assignor may
have as to the bringing or maintaining of such action with any such court.

         10. All notices from Laurus to any Assignor shall be sufficiently given
if mailed or delivered to such Assignor's address set forth below.

         11. This Master Security Agreement and the security interests granted
by the Assignors hereunder shall terminate upon the provision by Laurus of
written confirmation to the Company that (x) all indebtedness obligations owed
by any Assignor to Laurus have been repaid in full (including, without
limitation, all principal, interest and fees related to the Term Note and any
other indebtedness outstanding at such time and owed to Laurus) and (y) all
commitments by Laurus to fund any indebtedness have been terminated in their
entirety.

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<PAGE>
                                    Very truly yours,

                                    XSTREAM BEVERAGE GROUP, INC.

                                    By: ____________________

                                    Name:

                                    Title:

                                    Address:

                                    TOTAL BEVERAGE NETWORK, INC.

                                    By: ____________________

                                    Name:

                                    Title:

                                    Address:

                                    BEVERAGE NETWORK OF CONNECTICUT, INC.

                                    By: ____________________

                                    Name:

                                    Title:

                                    Address:

                                    BEVERAGE NETWORK OF MASSACHUSETTS, INC.

                                    By: ____________________

                                    Name:

                                    Title:

                                    Address:

                                       7
<PAGE>

                                    BEVERAGE NETWORK OF HAWAII, INC.

                                    By: ____________________

                                    Name:

                                    Title:

                                    Address:

                                    XSTREAM BRANDS, INC.

                                    By: ____________________

                                    Name:

                                    Title:

                                    Address:

                                       8
<PAGE>
                                     ACKNOWLEDGED:

                                     LAURUS MASTER FUND, LTD.

                                     By:______________________

                                     Name:

                                     Title:

                                       9
<PAGE>

                                   SCHEDULE A

                                                                 Organization
                                             Jurisdiction of    Identification
             Entity                           Organization          Number

     XStream Beverage Group, Inc.             Nevada

 Beverage Network of Connecticut, Inc.        Florida

Beverage Network of Massachusetts, Inc.       Florida

   Beverage Network of Hawaii, Inc.           Florida

         Xstream Brands, Inc.                 Florida

     Total Beverage Network, Inc.             Florida

                                       10Exhibit 10.4

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of May14, 2004, by and between Xstream Beverage Group, Inc., a
Nevada corporation (the "Company"), and Laurus Master Fund, Ltd. (the
"Purchaser").

         This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof, by and between the Purchaser and the Company (the
"Securities Purchase Agreement"), and pursuant to the Note and the Warrants
referred to therein.

         The Company and the Purchaser hereby agree as follows:

         1. Definitions. Capitalized terms used and not otherwise defined herein
that are defined in the Securities Purchase Agreement shall have the meanings
given such terms in the Securities Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means shares of the Company's common stock, par
value $0.001 per share.

                  "Effectiveness Date" means the 90th day following the date
hereof.

                  "Effectiveness Period" shall have the meaning set forth in
Section 2(a).

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and any successor statute.

                  "Filing Date" means, with respect to the Registration
Statement required to be filed hereunder, a date no later than the earlier of
(x) the date immediately preceding the date of the consummation of the Baltimore
Acquisition and (y) thirty (30) calendar days following the date hereof, and
with respect to shares of Common Stock issuable to the Holder as a result of
adjustments to the Fixed Conversion Price made pursuant to Section 3.4 of the
Secured Convertible Term Note or Section 4 of the Warrant or otherwise, thirty
(30) days after the occurrence such event or the date of the adjustment of the
Fixed Conversion Price.

                  "Holder" or "Holders" means the Purchaser or any of its
affiliates or transferees to the extent any of them hold Registrable Securities.

                  "Indemnified Party" shall have the meaning set forth in
Section 5(c).

                  "Indemnifying Party" shall have the meaning set forth in
Section 5(c).

                  "Note" has the meaning set forth in the Securities Purchase
Agreement.

<PAGE>

                  "Proceeding" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

                  "Prospectus" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

                  "Registrable Securities" means the shares of Common Stock
issued upon the conversion of the Note and issuable upon exercise of the
Warrants.

                  "Registration Statement" means each registration statement
required to be filed hereunder, including the Prospectus, amendments and
supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in such registration
statement.

                  "Rule 144" means Rule 144 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Rule 415" means Rule 415 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Rule 424" means Rule 424 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Securities Act" means the Securities Act of 1933, as amended,
and any successor statute. "Securities Purchase Agreement" means the agreement
between the parties hereto calling for the issuance by the Company of of a
convertible Note in the initial principal amount of $3,000,000 plus Warrants.

                  "Trading Market" means any of the NASD OTCBB, NASDAQ SmallCap
Market, the Nasdaq National Market, the American Stock Exchange or the New York
Stock Exchange.

<PAGE>

                  "Warrants" means the Common Stock purchase warrants issued
pursuant to the Securities Purchase Agreement.

         2. Registration.

                  (a) On or prior to the Filing Date the Company shall prepare
         and file with the Commission a Registration Statement covering the
         Registrable Securities for an offering to be made on a continuous basis
         pursuant to Rule 415. The Registration Statement shall be on Form SB-2
         (except if the Company is not then eligible to register for resale the
         Registrable Securities on Form SB-2, in which case such registration
         shall be on another appropriate form in accordance herewith). The
         Company shall cause the Registration Statement to become effective and
         remain effective as provided herein. The Company shall use its
         reasonable commercial efforts to cause the Registration Statement to be
         declared effective under the Securities Act as promptly as possible
         after the filing thereof, but in any event no later than the
         Effectiveness Date. The Company shall use its reasonable commercial
         efforts to keep the Registration Statement continuously effective under
         the Securities Act until the date which is the earlier date of when (i)
         all Registrable Securities have been sold or (ii) all Registrable
         Securities may be sold immediately without registration under the
         Securities Act and without volume restrictions pursuant to Rule 144(k),
         as determined by the counsel to the Company pursuant to a written
         opinion letter to such effect, addressed and acceptable to the
         Company's transfer agent and the affected Holders (the "Effectiveness
         Period").

                  (b) If: (i) the Registration Statement is not filed on or
         prior to the Filing Date; (ii) the Registration Statement is not
         declared effective by the Commission by the Effectiveness Date; (iii)
         after the Registration Statement is filed with and declared effective
         by the Commission, the Registration Statement ceases to be effective
         (by suspension or otherwise) as to all Registrable Securities to which
         it is required to relate at any time prior to the expiration of the
         Effectiveness Period (without being succeeded immediately by an
         additional registration statement filed and declared effective) for a
         period of time which shall exceed 30 days in the aggregate per year or
         more than 20 consecutive calendar days (defined as a period of 365 days
         commencing on the date the Registration Statement is declared
         effective); or (iv) the Common Stock is not listed or quoted, or is
         suspended from trading on any Trading Market for a period of three (3)
         consecutive Trading Days (provided the Company shall not have been able
         to cure such trading suspension within 30 days of the notice thereof or
         list the Common Stock on another Trading Market); (any such failure or
         breach being referred to as an "Event," and for purposes of clause (i)
         or (ii) the date on which such Event occurs, or for purposes of clause
         (iii) the date which such 30 day or 20 consecutive day period (as the
         case may be) is exceeded, or for purposes of clause (iv) the date on
         which such three (3) Trading Day period is exceeded, being referred to
         as "Event Date"), then until the applicable Event is cured, the Company
         shall pay to each Holder an amount in cash, as liquidated damages and

<PAGE>

         not as a penalty, equal to 2.0% for each thirty (30) day period
         (prorated for partial periods) on a daily basis of the original
         principal amount of the Note. While such Event continues, such
         liquidated damages shall be paid not less often than each thirty (30)
         days. Any unpaid liquidated damages as of the date when an Event has
         been cured by the Company shall be paid within three (3) days following
         the date on which such Event has been cured by the Company.

                  (c) Within three business days of the Effectiveness Date, the
         Company shall cause its counsel to issue a blanket opinion in the form
         attached hereto as Exhibit A, to the transfer agent stating that the
         shares are subject to an effective registration statement and can be
         reissued free of restrictive legend upon notice of a sale by Laurus and
         confirmation by Laurus that it has complied with the prospectus
         delivery requirements, provided that the Company has not advised the
         transfer agent orally or in writing that the opinion has been
         withdrawn. Copies of the blanket opinion required by this Section 2(c)
         shall be delivered to Laurus within the time frame set forth above.

         3. Registration Procedures. If and whenever the Company is required by
the provisions hereof to effect the registration of any Registrable Securities
under the Securities Act, the Company will, as expeditiously as possible:

                  (a) prepare and file with the Commission the Registration
         Statement with respect to such Registrable Securities, respond as
         promptly as possible to any comments received from the Commission, and
         use its best efforts to cause the Registration Statement to become and
         remain effective for the Effectiveness Period with respect thereto, and
         promptly provide to the Purchaser copies of all filings and Commission
         letters of comment relating thereto;

                  (b) prepare and file with the Commission such amendments and
         supplements to the Registration Statement and the Prospectus used in
         connection therewith as may be necessary to comply with the provisions
         of the Securities Act with respect to the disposition of all
         Registrable Securities covered by the Registration Statement and to
         keep such Registration Statement effective until the expiration of the
         Effectiveness Period;

                  (c) furnish to the Purchaser such number of copies of the
         Registration Statement and the Prospectus included therein (including
         each preliminary Prospectus) as the Purchaser reasonably may request to
         facilitate the public sale or disposition of the Registrable Securities
         covered by the Registration Statement;

                  (d) use its commercially reasonable efforts to register or
         qualify the Purchaser's Registrable Securities covered by the
         Registration Statement under the securities or "blue sky" laws of such
         jurisdictions within the United States as the Purchaser may reasonably
         request, provided, however, that the Company shall not for any such
         purpose be required to qualify generally to transact business as a
         foreign corporation in any jurisdiction where it is not so qualified or
         to consent to general service of process in any such jurisdiction;
<PAGE>

                  (e) list the Registrable Securities covered by the
         Registration Statement with any securities exchange on which the Common
         Stock of the Company is then listed;

                  (f) immediately notify the Purchaser at any time when a
         Prospectus relating thereto is required to be delivered under the
         Securities Act, of the happening of any event of which the Company has
         knowledge as a result of which the Prospectus contained in such
         Registration Statement, as then in effect, includes an untrue statement
         of a material fact or omits to state a material fact required to be
         stated therein or necessary to make the statements therein not
         misleading in light of the circumstances then existing; and

                  (g) make available for inspection by the Purchaser and any
         attorney, accountant or other agent retained by the Purchaser, all
         publicly available, non-confidential financial and other records,
         pertinent corporate documents and properties of the Company, and cause
         the Company's officers, directors and employees to supply all publicly
         available, non-confidential information reasonably requested by the
         attorney, accountant or agent of the Purchaser.

         4. Registration Expenses. All expenses relating to the Company's
compliance with Sections 2 and 3 hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses
(including reasonable counsel fees) incurred in connection with complying with
state securities or "blue sky" laws, fees of the NASD, transfer taxes, fees of
transfer agents and registrars, fees of, and disbursements incurred by, one
counsel for the Holders (to the extent such counsel is required due to Company's
failure to meet any of its obligations hereunder), are called "Registration
Expenses". All selling commissions applicable to the sale of Registrable
Securities, including any fees and disbursements of any special counsel to the
Holders beyond those included in Registration Expenses, are called "Selling
Expenses." The Company shall only be responsible for all Registration Expenses
but not Selling Expenses.

         5. Indemnification.

                  (a) In the event of a registration of any Registrable
         Securities under the Securities Act pursuant to this Agreement, the
         Company will indemnify and hold harmless the Purchaser, and its
         officers, directors and each other person, if any, who controls the
         Purchaser within the meaning of the Securities Act, against any losses,
         claims, damages or liabilities, joint or several, to which the
         Purchaser, or such persons may become subject under the Securities Act
         or otherwise, insofar as such losses, claims, damages or liabilities
         (or actions in respect thereof) arise out of or are based upon any
         untrue statement or alleged untrue statement of any material fact
         contained in any Registration Statement under which such Registrable
         Securities were registered under the Securities Act pursuant to this
         Agreement, any preliminary Prospectus or final Prospectus contained

<PAGE>

         therein, or any amendment or supplement thereof, or arise out of or are
         based upon the omission or alleged omission to state therein a material
         fact required to be stated therein or necessary to make the statements
         therein not misleading, and will reimburse the Purchaser, and each such
         person for any reasonable legal or other expenses incurred by them in
         connection with investigating or defending any such loss, claim,
         damage, liability or action; provided, however, that the Company will
         not be liable in any such case if and to the extent that any such loss,
         claim, damage or liability arises out of or is based upon an untrue
         statement or alleged untrue statement or omission or alleged omission
         so made in conformity with information furnished by or on behalf of the
         Purchaser or any such person in writing specifically for use in any
         such document.

                  (b) In the event of a registration of the Registrable
         Securities under the Securities Act pursuant to this Agreement, the
         Purchaser will indemnify and hold harmless the Company, and its
         officers, directors and each other person, if any, who controls the
         Company within the meaning of the Securities Act, against all losses,
         claims, damages or liabilities, joint or several, to which the Company
         or such persons may become subject under the Securities Act or
         otherwise, insofar as such losses, claims, damages or liabilities (or
         actions in respect thereof) arise out of or are based upon any untrue
         statement or alleged untrue statement of any material fact which was
         furnished in writing by the Purchaser to the Company expressly for use
         in (and such information is contained in) the Registration Statement
         under which such Registrable Securities were registered under the
         Securities Act pursuant to this Agreement, any preliminary Prospectus
         or final Prospectus contained therein, or any amendment or supplement
         thereof, or arise out of or are based upon the omission or alleged
         omission to state therein a material fact required to be stated therein
         or necessary to make the statements therein not misleading, and will
         reimburse the Company and each such person for any reasonable legal or
         other expenses incurred by them in connection with investigating or
         defending any such loss, claim, damage, liability or action, provided,
         however, that the Purchaser will be liable in any such case if and only
         to the extent that any such loss, claim, damage or liability arises out
         of or is based upon an untrue statement or alleged untrue statement or
         omission or alleged omission so made in conformity with information
         furnished in writing to the Company by or on behalf of the Purchaser
         specifically for use in any such document. Notwithstanding the
         provisions of this paragraph, the Purchaser shall not be required to
         indemnify any person or entity in excess of the amount of the aggregate
         net proceeds received by the Purchaser in respect of Registrable
         Securities in connection with any such registration under the
         Securities Act.

                  (c) Promptly after receipt by a party entitled to claim
         indemnification hereunder (an "Indemnified Party") of notice of the
         commencement of any action, such Indemnified Party shall, if a claim
         for indemnification in respect thereof is to be made against a party
         hereto obligated to indemnify such Indemnified Party (an "Indemnifying
         Party"), notify the Indemnifying Party in writing thereof, but the

<PAGE>

         omission so to notify the Indemnifying Party shall not relieve it from
         any liability which it may have to such Indemnified Party other than
         under this Section 5(c) and shall only relieve it from any liability
         which it may have to such Indemnified Party under this Section 5(c) if
         and to the extent the Indemnifying Party is prejudiced by such
         omission. In case any such action shall be brought against any
         Indemnified Party and it shall notify the Indemnifying Party of the
         commencement thereof, the Indemnifying Party shall be entitled to
         participate in and, to the extent it shall wish, to assume and
         undertake the defense thereof with counsel satisfactory to such
         Indemnified Party, and, after notice from the Indemnifying Party to
         such Indemnified Party of its election so to assume and undertake the
         defense thereof, the Indemnifying Party shall not be liable to such
         Indemnified Party under this Section 5(c) for any legal expenses
         subsequently incurred by such Indemnified Party in connection with the
         defense thereof; if the Indemnified Party retains its own counsel, then
         the Indemnified Party shall pay all fees, costs and expenses of such
         counsel, provided, however, that, if the defendants in any such action
         include both the indemnified party and the Indemnifying Party and the
         Indemnified Party shall have reasonably concluded that there may be
         reasonable defenses available to it which are different from or
         additional to those available to the Indemnifying Party or if the
         interests of the Indemnified Party reasonably may be deemed to conflict
         with the interests of the Indemnifying Party, the Indemnified Party
         shall have the right to select one separate counsel and to assume such
         legal defenses and otherwise to participate in the defense of such
         action, with the reasonable expenses and fees of such separate counsel
         and other expenses related to such participation to be reimbursed by
         the Indemnifying Party as incurred.

                  (d) In order to provide for just and equitable contribution in
         the event of joint liability under the Securities Act in any case in
         which either (i) the Purchaser, or any officer, director or controlling
         person of the Purchaser, makes a claim for indemnification pursuant to
         this Section 5 but it is judicially determined (by the entry of a final
         judgment or decree by a court of competent jurisdiction and the
         expiration of time to appeal or the denial of the last right of appeal)
         that such indemnification may not be enforced in such case
         notwithstanding the fact that this Section 5 provides for
         indemnification in such case, or (ii) contribution under the Securities
         Act may be required on the part of the Purchaser or such officer,
         director or controlling person of the Purchaser in circumstances for
         which indemnification is provided under this Section 5; then, and in
         each such case, the Company and the Purchaser will contribute to the
         aggregate losses, claims, damages or liabilities to which they may be
         subject (after contribution from others) in such proportion so that the
         Purchaser is responsible only for the portion represented by the
         percentage that the public offering price of its securities offered by
         the Registration Statement bears to the public offering price of all
         securities offered by such Registration Statement, provided, however,
         that, in any such case, (A) the Purchaser will not be required to
         contribute any amount in excess of the public offering price of all
         such securities offered by it pursuant to such Registration Statement;
         and (B) no person or entity guilty of fraudulent misrepresentation
         (within the meaning of Section 10(f) of the Act) will be entitled to
         contribution from any person or entity who was not guilty of such
         fraudulent misrepresentation.
<PAGE>

         6. Representations and Warranties.

                  (a) The Common Stock of the Company is registered pursuant to
         Section 12(b) or 12(g) of the Exchange Act and, except with respect to
         certain matters which the Company has disclosed to the Purchaser on
         Schedule 4.21 to the Securities Purchase Agreement, the Company has
         timely filed all proxy statements, reports, schedules, forms,
         statements and other documents required to be filed by it under the
         Exchange Act. The Company has filed (i) its Annual Report on Form 10-K
         for its fiscal year ended December 31, 2003, (ii) its Quarterly Report
         on Form 10-Q for its fiscal quarter ended September 30, 2003 and (iii)
         the Form 8-K filings which it has made during the fiscal year 2004 to
         date (collectively, the "SEC Reports"). Each SEC Report was, at the
         time of its filing, in substantial compliance with the requirements of
         its respective form and none of the SEC Reports, nor the financial
         statements (and the notes thereto) included in the SEC Reports, as of
         their respective filing dates, contained any untrue statement of a
         material fact or omitted to state a material fact required to be stated
         therein or necessary to make the statements therein, in light of the
         circumstances under which they were made, not misleading. The financial
         statements of the Company included in the SEC Reports comply as to form
         in all material respects with applicable accounting requirements and
         the published rules and regulations of the Commission or other
         applicable rules and regulations with respect thereto. Such financial
         statements have been prepared in accordance with generally accepted
         accounting principles ("GAAP") applied on a consistent basis during the
         periods involved (except (i) as may be otherwise indicated in such
         financial statements or the notes thereto or (ii) in the case of
         unaudited interim statements, to the extent they may not include
         footnotes or may be condensed) and fairly present in all material
         respects the financial condition, the results of operations and the
         cash flows of the Company and its subsidiaries, on a consolidated
         basis, as of, and for, the periods presented in each such SEC Report.

                  (b) The Common Stock is traded on the NASD OTCBB and satisfies
         all requirements for the continuation of such trading. The Company has
         not received any notice that its Common Stock will not be eligible to
         be traded on the NASD OTCBB (except for prior notices which have been
         fully remedied) or that the Common Stock does not meet all requirements
         for the continuation of such trading.

                  (c) Neither the Company, nor any of its affiliates, nor any
         person acting on its or their behalf, has directly or indirectly made
         any offers or sales of any security or solicited any offers to buy any
         security under circumstances that would cause the offering of the
         Securities pursuant to the Securities Purchase Agreement to be
         integrated with prior offerings by the Company for purposes of the
         Securities Act which would prevent the Company from selling the Common
         Stock pursuant to Rule 506 under the Securities Act, or any applicable
         exchange-related stockholder approval provisions, nor will the Company
         or any of its affiliates or subsidiaries take any action or steps that
         would cause the offering of the Securities to be integrated with other
         offerings.
<PAGE>

                  (d) The Warrants, the Note and the shares of Common Stock
         which the Purchaser may acquire pursuant to the Warrants and the Note
         are all restricted securities under the Securities Act as of the date
         of this Agreement. The Company will not issue any stop transfer order
         or other order impeding the sale and delivery of any of the Registrable
         Securities at such time as such Registrable Securities are registered
         for public sale or an exemption from registration is available, except
         as required by federal or state securities laws.

                  (e) The Company understands the nature of the Registrable
         Securities issuable upon the conversion of the Note and the exercise of
         the Warrant and recognizes that the issuance of such Registrable
         Securities may have a potential dilutive effect. The Company
         specifically acknowledges that its obligation to issue the Registrable
         Securities is binding upon the Company and enforceable regardless of
         the dilution such issuance may have on the ownership interests of other
         shareholders of the Company.

                  (f) Except for agreements made in the ordinary course of
         business, there is no agreement that has not been filed with the
         Commission as an exhibit to a registration statement or to a form
         required to be filed by the Company under the Exchange Act, the breach
         of which could reasonably be expected to have a material and adverse
         effect on the Company and its subsidiaries, or would prohibit or
         otherwise interfere with the ability of the Company to enter into and
         perform any of its obligations under this Agreement in any material
         respect.

                  (g) The Company will at all times have authorized and reserved
         a sufficient number of shares of Common Stock for the full conversion
         of the Note and exercise of the Warrants.

         7. Miscellaneous.

                  (a) Remedies. In the event of a breach by the Company or by a
         Holder, of any of their respective obligations under this Agreement,
         each Holder or the Company, as the case may be, in addition to being
         entitled to exercise all rights granted by law and under this
         Agreement, including recovery of damages, will be entitled to specific
         performance of its rights under this Agreement.

                  (b) No Piggyback on Registrations. Except as and to the extent
         specified in Schedule 7(b) hereto, neither the Company nor any of its
         security holders (other than the Holders in such capacity pursuant
         hereto) may include securities of the Company in any Registration
         Statement other than the Registrable Securities, and the Company shall
         not after the date hereof enter into any agreement providing any such
         right for inclusion of shares in the Registration Statement to any of

<PAGE>

         its security holders. Except as and to the extent specified in Schedule
         7(b) hereto, the Company has not previously entered into any agreement
         granting any registration rights with respect to any of its securities
         to any Person that have not been fully satisfied.

                  (c) Compliance. Each Holder covenants and agrees that it will
         comply with the prospectus delivery requirements of the Securities Act
         as applicable to it in connection with sales of Registrable Securities
         pursuant to the Registration Statement.

                  (d) Discontinued Disposition. Each Holder agrees by its
         acquisition of such Registrable Securities that, upon receipt of a
         notice from the Company of the occurrence of a Discontinuation Event
         (as defined below), such Holder will forthwith discontinue disposition
         of such Registrable Securities under the applicable Registration
         Statement until such Holder's receipt of the copies of the supplemented
         Prospectus and/or amended Registration Statement or until it is advised
         in writing (the "Advice") by the Company that the use of the applicable
         Prospectus may be resumed, and, in either case, has received copies of
         any additional or supplemental filings that are incorporated or deemed
         to be incorporated by reference in such Prospectus or Registration
         Statement. The Company may provide appropriate stop orders to enforce
         the provisions of this paragraph. For purposes of this Section 7(d), a
         "Discontinuation Event" shall mean (i) when the Commission notifies the
         Company whether there will be a "review" of such Registration Statement
         and whenever the Commission comments in writing on such Registration
         Statement (the Company shall provide true and complete copies thereof
         and all written responses thereto to each of the Holders); (ii) any
         request by the Commission or any other Federal or state governmental
         authority for amendments or supplements to such Registration Statement
         or Prospectus or for additional information; (iii) the issuance by the
         Commission of any stop order suspending the effectiveness of such
         Registration Statement covering any or all of the Registrable
         Securities or the initiation of any Proceedings for that purpose; (iv)
         the receipt by the Company of any notification with respect to the
         suspension of the qualification or exemption from qualification of any
         of the Registrable Securities for sale in any jurisdiction, or the
         initiation or threatening of any Proceeding for such purpose; and/or
         (v) the occurrence of any event or passage of time that makes the
         financial statements included in such Registration Statement ineligible
         for inclusion therein or any statement made in such Registration
         Statement or Prospectus or any document incorporated or deemed to be
         incorporated therein by reference untrue in any material respect or
         that requires any revisions to such Registration Statement, Prospectus
         or other documents so that, in the case of such Registration Statement
         or Prospectus, as the case may be, it will not contain any untrue
         statement of a material fact or omit to state any material fact
         required to be stated therein or necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading.
<PAGE>

                  (e) Piggy-Back Registrations. If at any time during the
         Effectiveness Period there is not an effective Registration Statement
         covering all of the Registrable Securities and the Company shall
         determine to prepare and file with the Commission a registration
         statement relating to an offering for its own account or the account of
         others under the Securities Act of any of its equity securities, other
         than on Form S-4 or Form S-8 (each as promulgated under the Securities
         Act) or their then equivalents relating to equity securities to be
         issued solely in connection with any acquisition of any entity or
         business or equity securities issuable in connection with stock option
         or other employee benefit plans, then the Company shall send to each
         Holder written notice of such determination and, if within fifteen days
         after receipt of such notice, any such Holder shall so request in
         writing, the Company shall include in such registration statement all
         or any part of such Registrable Securities such holder requests to be
         registered to the extent the Company may do so without violating
         registration rights of others which exist as of the date of this
         Agreement, subject to customary underwriter cutbacks applicable to all
         holders of registration rights and subject to obtaining any required
         the consent of any selling stockholder(s) to such inclusion under such
         registration statement.

                  (f) Amendments and Waivers. The provisions of this Agreement,
         including the provisions of this sentence, may not be amended, modified
         or supplemented, and waivers or consents to departures from the
         provisions hereof may not be given, unless the same shall be in writing
         and signed by the Company and the Holders of the then outstanding
         Registrable Securities. Notwithstanding the foregoing, a waiver or
         consent to depart from the provisions hereof with respect to a matter
         that relates exclusively to the rights of certain Holders and that does
         not directly or indirectly affect the rights of other Holders may be
         given by Holders of at least a majority of the Registrable Securities
         to which such waiver or consent relates; provided, however, that the
         provisions of this sentence may not be amended, modified, or
         supplemented except in accordance with the provisions of the
         immediately preceding sentence.

                  (g) Notices. Any notice or request hereunder may be given to
         the Company or the Purchaser at the respective addresses set forth
         below or as may hereafter be specified in a notice designated as a
         change of address under this Section 7(g). Any notice or request
         hereunder shall be given by registered or certified mail, return
         receipt requested, hand delivery, overnight mail, Federal Express or
         other national overnight next day carrier (collectively, "Courier") or
         telecopy (confirmed by mail). Notices and requests shall be, in the
         case of those by hand delivery, deemed to have been given when
         delivered to any party to whom it is addressed, in the case of those by
         mail or overnight mail, deemed to have been given three (3) business
         days after the date when deposited in the mail or with the overnight
         mail carrier, in the case of a Courier, the next business day following
         timely delivery of the package with the Courier, and, in the case of a
         telecopy, when confirmed. The address for such notices and
         communications shall be as follows:
<PAGE>

            If to the Company:               Xstream Beverage Group, Inc.
                                             4800 N.W. 15th Avenue, Bay 1-A,
                                             Fort Lauderdale, Florida 33308
                                             Attention: Jerry Pearring
                                             Facsimile: 954-598-7996

                                             with a copy to:
                                             Newman, Pollock & Klein, LLP
                                             2101 NW Corporate Blvd., Suite 414
                                             Boca Raton, Florida 33431
                                             Attention: Jeffrey G. Klein
                                             Facsimile: 561-241-4943

            If to a Purchaser:               To the address set forth
                                             under such Purchaser
                                             name on the signature
                                             pages hereto.

            If to any other Person who is
            then the registered Holder:      To the address of such Holder
                                             as it appears in the stock transfer
                                             books of the Company

         or such other address as may be designated in writing hereafter in
         accordance with this Section 7(g) by such Person.

                  (h) Successors and Assigns. This Agreement shall inure to the
         benefit of and be binding upon the successors and permitted assigns of
         each of the parties and shall inure to the benefit of each Holder. The
         Company may not assign its rights or obligations hereunder without the
         prior written consent of each Holder. Each Holder may assign their
         respective rights hereunder in the manner and to the Persons as
         permitted under the Notes and the Security Agreement with the prior
         written consent of the Company, which consent shall not be unreasonably
         withheld.

                  (i) Execution and Counterparts. This Agreement may be executed
         in any number of counterparts, each of which when so executed shall be
         deemed to be an original and, all of which taken together shall
         constitute one and the same Agreement. In the event that any signature
         is delivered by facsimile transmission, such signature shall create a
         valid binding obligation of the party executing (or on whose behalf
         such signature is executed) the same with the same force and effect as
         if such facsimile signature were the original thereof.

                  (j) Governing Law. All questions concerning the construction,
         validity, enforcement and interpretation of this Agreement shall be
         governed by and construed and enforced in accordance with the internal
         laws of the State of New York, without regard to the principles of
         conflicts of law thereof. Each party agrees that all Proceedings

<PAGE>

         concerning the interpretations, enforcement and defense of the
         transactions contemplated by this Agreement shall be commenced
         exclusively in the state and federal courts sitting in the City of New
         York, Borough of Manhattan. Each party hereto hereby irrevocably
         submits to the exclusive jurisdiction of the state and federal courts
         sitting in the City of New York, Borough of Manhattan for the
         adjudication of any dispute hereunder or in connection herewith or with
         any transaction contemplated hereby or discussed herein, and hereby
         irrevocably waives, and agrees not to assert in any Proceeding, any
         claim that it is not personally subject to the jurisdiction of any such
         court, that such Proceeding is improper. Each party hereto hereby
         irrevocably waives personal service of process and consents to process
         being served in any such Proceeding by mailing a copy thereof via
         registered or certified mail or overnight delivery (with evidence of
         delivery) to such party at the address in effect for notices to it
         under this Agreement and agrees that such service shall constitute good
         and sufficient service of process and notice thereof. Nothing contained
         herein shall be deemed to limit in any way any right to serve process
         in any manner permitted by law. Each party hereto hereby irrevocably
         waives, to the fullest extent permitted by applicable law, any and all
         right to trial by jury in any legal proceeding arising out of or
         relating to this Agreement or the transactions contemplated hereby. If
         either party shall commence a Proceeding to enforce any provisions of a
         Transaction Document, then the prevailing party in such Proceeding
         shall be reimbursed by the other party for its reasonable attorneys
         fees and other costs and expenses incurred with the investigation,
         preparation and prosecution of such Proceeding.

                  (k) Cumulative Remedies. The remedies provided herein are
         cumulative and not exclusive of any remedies provided by law.

                  (l) Severability. If any term, provision, covenant or
         restriction of this Agreement is held by a court of competent
         jurisdiction to be invalid, illegal, void or unenforceable, the
         remainder of the terms, provisions, covenants and restrictions set
         forth herein shall remain in full force and effect and shall in no way
         be affected, impaired or invalidated, and the parties hereto shall use
         their reasonable efforts to find and employ an alternative means to
         achieve the same or substantially the same result as that contemplated
         by such term, provision, covenant or restriction. It is hereby
         stipulated and declared to be the intention of the parties that they
         would have executed the remaining terms, provisions, covenants and
         restrictions without including any of such that may be hereafter
         declared invalid, illegal, void or unenforceable.

                  (m) Headings. The headings in this Agreement are for
         convenience of reference only and shall not limit or otherwise affect
         the meaning hereof.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.
<TABLE>
<CAPTION>

XSTREAM BEVERAGE GROUP, INC.                               LAURUS MASTER FUND, LTD.

<S>                                                        <C>
By:                                                        By:
             ------------------------------------------                -----------------------------------------------

Name:                                                      Name:
             ------------------------------------------                -----------------------------------------------

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

                                                           Address for Notices:

                                                           825 Third Avenue - 14th Floor
                                                           New York, NY  10022
                                                           Attention: David Grin
                                                           Facsimile: 212-541-4434

</TABLE>

<PAGE>

                                    EXHIBIT A

                                [Month __, 2004]

[Continental Stock Transfer
   & Trust Company
Two Broadway
New York, NY  10004
Attn:  William Seegraber]

Re:      Xstream Beverage Group, Inc.. Registration Statement on Form [SB-2]

Ladies and Gentlemen:

         As counsel to Xstream Beverage Group, Inc., a Nevada corporation (the
"Company"), we have been requested to render our opinion to you in connection
with the resale by the individuals or entitles listed on Schedule A attached
hereto (the "Selling Stockholders"), of an aggregate of [amount]shares (the
"Shares") of the Company's Common Stock.

         A Registration Statement on Form SB-2 under the Securities Act of 1933,
as amended (the "Act"), with respect to the resale of the Shares was declared
effective by the Securities and Exchange Commission on [date]. Enclosed is the
Prospectus dated [date]. We understand that the Shares are to be offered and
sold in the manner described in the Prospectus.

         Based upon the foregoing, upon request by the Selling Stockholders at
any time while the registration statement remains effective, it is our opinion
that the Shares have been registered for resale under the Act and new
certificates evidencing the Shares upon their transfer or re-registration by the
Selling Stockholders may be issued without restrictive legend. We will advise
you if the registration statement is not available or effective at any point in
the future.

                                                     Very truly yours,

                                                     [Company counsel]

<PAGE>

                                   SCHEDULE A

                                                                    Shares
Selling Stockholder                                              Being Offered
-------------------                                              -------------

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