Document:

ARMADA WATER ASSETS, INC.

  

 

 

 

 

Securities Purchase Agreement

  

 

 

 

 

Convertible Term Notes

 

 

 

 

 

_____________, 2013

 

CONFIDENTIAL

 

Placement Agent

 

 

AEGIS CAPITAL CORP.

810 Seventh Avenue

18th floor

New York, New York 10019

Tel (212) 813-1010

Fax (212) 813-1047

 

    	 

    	 

    

 

NOTICE
TO OFFEREES

 

THE SECURITIES OFFERED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER THE APPLICABLE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION. THIS SECURITIES PURCHASE AGREEMENT AND THE OTHER OFFERING DOCUMENTS DO NOT CONSTITUTE
AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY THE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD
BE UNLAWFUL.

 

THE SECURITIES ARE
BEING SOLD FOR INVESTMENT PURPOSES ONLY, WITHOUT A VIEW TO RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED, RESOLD OR
OFFERED FOR RESALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND EFFECTIVE REGISTRATION OR
QUALIFICATION UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, OR THE AVAILABILITY OF AN EXEMPTION THEREFROM.

 

NEITHER THE SECURITIES
AND EXCHANGE COMMISSION NOR THE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION HAS APPROVED
OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS SECURITIES PURCHASE AGREEMENT OR ANY OF THE
OTHER OFFERING DOCUMENTS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

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CONFIDENTIAL

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (this “Agreement”), dated as of ______________________, by and between Armada Water Assets, Inc.,
a Nevada corporation (the “Company”), and the purchasers identified on the signature page hereof (the “Purchasers”).

 

R E C I T A L S:

 

WHEREAS, the Purchasers
desire to purchase and the Company desires to sell promissory notes convertible into the Company’s common stock on the terms
and conditions set forth herein (the “Notes”).

 

NOW, THEREFORE, in
consideration of the premises hereof and the agreements set forth herein below, the parties hereto hereby agree as follows:

 

1.                 
The Offering.

 

(a)         
Private Offering. Under and subject to the terms of this Agreement, the Company is conducting a private offering
in the United States (the “Offering”) of not less than $1,000,000 and not more than $8,000,000 in Notes, which
amount is subject to increase, in the mutual discretion of the Company and the “Placement Agent” (as defined below),
to satisfy any over-subscriptions during the “Offering Period” (as defined below). The Notes will be sold on a “reasonable
efforts” basis pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”),
and Rule 506 of Regulation D thereunder. The Notes are being offered solely to a limited number of “accredited investors”
as that term is defined in Rule 501(a) of the Securities Act during an offering period commencing ____________, and terminating
on or before _______________, subject to extension to no later than _______________ at the mutual discretion of the Company and
Placement Agent, (the “Offering Period”).

 

(b)        
Convertible term notes. The Notes shall be issued in substantially the form attached hereto as Annex A.
Any change to the Notes or waiver of a requirement shall require the consent of the holders of a majority of the Principal Amount
of Notes, and such change or waiver shall thereafter be binding on all Purchasers. The Notes are convertible into a number of fully-paid,
nonassessable shares of the Company’s common stock, $.0001 par value per share (the “Common Stock”) equal
to the quotient obtained by dividing the Principal Amount (as defined in Section 2(a) hereof) being converted by a conversion price
equal to seventy percent (70%) of the price at which the Shares were first issued to the public in an initial public offering.
The term “Securities” means the Notes and the Common Stock issuable upon conversion of the Notes.

 

(c)         
Placement Fees. The Company has retained Aegis Capital Corp., a registered broker-dealer firm, to act as exclusive
placement or selling agent with respect to this Offering (alternatively, “Aegis” or the “Placement
Agent”). Aegis is entitled to receive a placement fee in an amount equal to seven percent (7.0%) of the Principal Amount
of Notes sold in the Offering, however, the fee shall be discounted to three and one-half percent (3.5%) on Notes sold to Purchasers
introduced by officers of the Company. Under its placement arrangements with the Company, Aegis has been engaged as the exclusive
agent to sell the Notes, through itself or through its selected dealers. Also under its placement arrangements with Aegis, the
Company has also agreed to indemnify Aegis, its affiliates and other related persons against certain liabilities, including liabilities
under the federal securities laws.

 

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(d)        
Use of Proceeds. There can be no assurances that the Company will yield any amounts in excess of the Minimum
Offering. The Company intends to use the net proceeds of the Offering (after payment of offering expenses) for general working
capital, to contribute towards ongoing Company initiatives (see Business Summary attached here as Annex B and Risk Factors
attached here as Annex C), and towards the payment of certain Company indebtedness, including up to $1.4 million to satisfy
certain purchase money indebtedness incurred in connection with recent acquisitions by the Company, and to repay up to $1 million
in short-term demand loans.

 

2.                 
Sale and Purchase of Notes.

 

(a)         
Sale and Purchase of the Notes. Subject to the terms and conditions hereof, the Company agrees to sell, and
each Purchaser agrees to purchase, the principal amount of the Note specified on such Purchaser’s signature page of this
Agreement (the “Principal Amount”). The aggregate Principal Amount of the Note shall be as set forth on the
signature page hereto and shall be payable upon execution hereof by check or wire transfer of immediately available funds to the
escrow account identified below. The Notes are being sold on a best efforts basis. The minimum subscription amount for each Purchaser
is $100,000. When subscriptions total the minimum Offering mount of $1,000,000 (the “Minimum Offering”), funds will
be released to the Company.

 

(b)        
Subscription Procedure. In order to purchase Notes, each Purchaser shall deliver to the Company, (i) one completed
and duly executed copy of this Agreement; and (ii) immediately available funds in an amount equal to the Principal Amount. Execution
and delivery of this Agreement shall constitute an irrevocable subscription for that number of Notes set forth on the signature
page hereto. Payment for the Notes may be made by wire transfer to:

 

Signature Bank as Escrow agent for Armada
Water Assets, Inc.

Signature Bank, 261 Madison Avenue, NY, NY 10016

ABA No. 026013576 for credit to Signature Bank,

as Escrow Agent for Armada Water Assets, Inc.

Account No. 1501984929

 

or by check made payable to Signature Bank,
as Escrow Agent for Armada Water Assets, Inc. This Agreement may be rejected by the Company and the Placement Agent, in whole or
in part, in its sole discretion, in which event the Principal Amount will be returned (by mail) to the Purchaser within five (5)
business days thereafter.

 

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(c)         
Closing. Upon the Company’s acceptance of a Purchaser’s subscription and upon the receipt of the
Principal Amount, and once the Minimum Offering has been achieved, the Company shall conduct one or more closings at such time
and in such manner as the Company and the Placement Agent shall determine in their discretion (the “Closing”).
At the Closing, the Company shall countersign this Agreement and confirm the issuance of the Note specified on the signature page
of this Agreement and deliver the Note for the benefit of the Purchaser to the Placement Agent promptly following closing of the
Offering, against payment of the Principal Amount specified on the signature page of this Agreement by wire transfer or check payable
to the Company. Upon the Closing, the subscription evidenced hereby, if not previously rejected by the Company, will, in reliance
upon the Purchaser’s representations and warranties contained herein, be accepted, in whole or in part, by the Company. If
the Purchaser’s subscription is accepted only in part, this Agreement will be marked to indicate such fact, and the Company
will return to the Purchaser the portion of the funds tendered by the Purchaser representing the unaccepted portion of the Purchaser’s
subscription, without interest or deduction of any kind.

 

3.                 
Representations and Warranties of Purchaser. Each Purchaser represents and warrants to the Company as follows:

 

(a)         
Organization and Qualification.

 

(i)                
If the Purchaser is an entity, the Purchaser is duly organized, validly existing and in good standing under the laws
of its jurisdiction of organization, with the corporate or other entity power and authority to own and operate its business as
presently conducted, except where the failure to be or have any of the foregoing would not have a material adverse effect on the
Purchaser, and the Purchaser is duly qualified as a foreign corporation or other entity to do business and is in good standing
in each jurisdiction where the character of its properties owned or held under lease or the nature of their activities makes such
qualification necessary, except for such failures to be so qualified or in good standing as would not have a material adverse effect
on it.

 

(ii)              
If the Purchaser is an entity, the address of its principal place of business is as set forth on the signature page
hereto, and if the Purchaser is an individual, the address of its principal residence is as set forth on the signature page hereto.

 

(b)        
Authority; Validity and Effect of Agreement.

 

(i)                
If the Purchaser is an entity, the Purchaser has the requisite corporate or other entity power and authority to execute
and deliver this Agreement and perform its obligations under this Agreement. The execution and delivery of this Agreement by the
Purchaser, the performance by the Purchaser of its obligations hereunder and all other necessary corporate or other entity action
on the part of the Purchaser have been duly authorized by its Board of Directors or similar governing body, and no other corporate
or other entity proceedings on the part of the Purchaser is necessary for the Purchaser to execute and deliver this Agreement and
perform its obligations hereunder.

 

(ii)              
This Agreement has been duly and validly authorized, executed and delivered by the Purchaser and, assuming it has
been duly and validly executed and delivered by the Company, constitutes a legal, valid and binding obligation of the Purchaser,
in accordance with its terms.

 

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(c)         
No Conflict; Required Filings and Consents. Neither the execution and delivery of this Agreement by the Purchaser
nor the performance by the Purchaser of its obligations hereunder will: (i) if the Purchaser is an entity, conflict with the Purchaser’s
Articles of Incorporation or Bylaws, or other similar organizational documents; (ii) violate any statute, law, ordinance, rule
or regulation, applicable to the Purchaser or any of the properties or assets of the Purchaser; or (iii) violate, breach, be in
conflict with or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under,
or permit the termination of any provision of, or result in the termination of, the acceleration of the maturity of, or the acceleration
of the performance of any obligation of the Purchaser under, or result in the creation or imposition of any lien upon any properties,
assets or business of the Purchaser under, any material contract or any order, judgment or decree to which the Purchaser is a party
or by which it or any of its assets or properties is bound or encumbered except, in the case of clauses (ii) and (iii), for such
violations, breaches, conflicts, defaults or other occurrences which, individually or in the aggregate, would not have a material
adverse effect on its obligation to perform its covenants under this Agreement.

 

(d)        
Accredited Investor. The Purchaser is an “accredited investor” as that term is defined in Rule
501(a) of Regulation D under the Securities Act. Specifically, the Purchaser qualifies as an accredited investor as the result
of qualifications under the standards as set forth on the Supplement to Signature Page appended hereto.

 

(e)         
No Government Review. The Purchaser understands that neither the United States Securities and Exchange Commission
(“SEC”) nor any securities commission or other governmental authority of any state, country or other jurisdiction
has approved the issuance of the Securities or passed upon or endorsed the merits of the Securities, or this Agreement or any of
the other documents relating to the proposed Offering, including the annexes attached here (collectively, the “Offering
Documents”), or confirmed the accuracy of, determined the adequacy of, or reviewed this Agreement or the other Offering
Documents.

 

(f)         
Investment Intent. The Securities are being acquired for the Purchaser’s own account for investment
purposes only, not as a nominee or agent and not with a view to the resale or distribution of any part thereof, and the Purchaser
has no present intention of selling, granting any participation in or otherwise distributing the same. By executing this Agreement,
the Purchaser further represents that the Purchaser does not have any contract, undertaking, agreement or arrangement with any
person to sell, transfer or grant participation to such person or third person with respect to any of the Securities.

 

(g)        
Restrictions on Transfer. The Purchaser understands that the Securities are “restricted securities”
as such term is defined in Rule 144 under the Securities Act and have not been registered under the Securities Act or registered
or qualified under any state securities law, and may not be, directly or indirectly, sold, transferred, offered for sale, pledged,
hypothecated or otherwise disposed of without registration under the Securities Act and registration or qualification under applicable
state securities laws or the availability of an exemption therefrom. In any case where such an exemption is relied upon by the
Purchaser from the registration requirements of the Securities Act and the registration or qualification requirements of such state
securities laws, the Purchaser shall furnish the Company with an opinion of counsel stating that the proposed sale or other disposition
of such securities may be effected without registration under the Securities Act and will not result in any violation of any applicable
state securities laws relating to the registration or qualification of securities for sale, such counsel and opinion to be satisfactory
to the Company. The Purchaser acknowledges that it is able to bear the economic risks of an investment in the Securities for an
indefinite period of time, and that its overall commitment to investments that are not readily marketable is not disproportionate
to its net worth.

 

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(h)        
High Risk Investment; Investment Experience. The Purchaser has such knowledge, sophistication and experience
in financial, tax and business matters in general, and investments in securities in particular, that it is capable of evaluating
the merits and risks of this investment in the Securities, and the Purchaser has made such investigations in connection herewith
as it deemed necessary or desirable so as to make an informed investment decision without relying upon the Company for legal or
tax advice related to this investment. The Purchaser hereby confirms its understanding that the Company is a start- up early-stage
entity, which has only recently commenced its consolidated operations. The Purchaser further represents and warrants that it is
familiar with the risks inherent in making investments in start-up or venture entities and that the Purchaser’s investment
goals and strategy include making speculative investments in start-up ventures.

 

(i)          
Access to Information. In making its decision to acquire the Notes, the Purchaser confirms that it has carefully
reviewed the Business Summary attached here as Annex B and Risk Factors attached here as Annex C, which contain a
brief summary of certain of the more material current developments affecting the Company, and that the Purchaser has not relied
upon any information other than information provided to the Purchaser by the Company or its representatives in this Agreement or
in the see Business Summary attached here as Annex B or Risk Factors attached here as Annex C. The Purchaser acknowledges
and understands that the Company is in the early stage of its development; and that it has reviewed the description of the business
of the Company in the Offering Documents as it has deemed necessary in order to make an informed investment decision with respect
to an investment in the Securities; that it has had the opportunity to ask representatives of the Company certain questions and
request certain additional information regarding the terms and conditions of such investment and the finances, operations, business
and prospects of the Company and has had any and all such questions and requests answered to its satisfaction; and that it understands
the risks and other considerations relating to such investment. The Purchaser specifically acknowledges that it has been provided
with and reviewed to its satisfaction, information regarding the Company’s finances, management team, capitalization, material
acquisitions and contracts, description of outstanding securities, plan of operations, regulatory and environmental considerations,
material business risks and the like.

 

(j)          
Reliance on Representations. The Purchaser understands that the Notes are being offered and sold to it in
reliance on specific exemptions from the registration requirements of the federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the availability of such
exemptions and the eligibility of such Purchaser to acquire the Notes. The Purchaser represents and warrants to the Company that
any information that the Purchaser has heretofore furnished or furnishes herewith to the Company is complete and accurate, and
further represents and warrants that it will notify and supply corrective information to the Company immediately upon the occurrence
of any change therein occurring prior to the Company’s issuance of the Notes. Within five (5) days after receipt of a request
from the Company, the Purchaser will provide such information and deliver such documents as may reasonably be necessary to comply
with any and all laws and regulations to which the Company is subject.

 

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(k)        
No General Solicitation. The Purchaser is unaware of, and in deciding to participate in the Offering is in
no way relying upon, and did not become aware of the Offering through or as a result of, any form of general solicitation or general
advertising including, without limitation, any article, notice, advertisement or other communication published in any newspaper,
magazine or similar media, or broadcast over television or radio or the internet, in connection with the Offering.

 

(l)          
Placement and Finder’s Fees. Other than the Placement Agent, no agent, broker, investment banker, finder,
financial advisor or other person acting on behalf of the Purchaser or under its authority is or will be entitled to any broker’s
or finder’s fee or any other commission or similar fee, directly or indirectly, in connection with the Offering, and no person
is entitled to any fee or commission or like payment in respect thereof based in any way on agreements, arrangements or understanding
made by or on behalf of the Purchaser. The Purchaser is aware that the Company has retained Aegis as a placement or selling agent
and that Aegis will be entitled to a placement fee and other consideration as described in Section 1(b) above in connection with
the sale of the Notes.

 

(m)      
High Risk Investment; Material Offering Risks. An investment in the Securities involves a high degree of risk
as the Company remains in the early stage of its development, having only recently commenced the operations of its various business
units. Thus, the Company and its subsidiaries have only a very brief history of operations, and it is uncertain how these business
units will operate on a combined basis and whether these various business units can be operated at a profit. Accordingly, the Securities
are a suitable investment only for those investors who can afford a total loss of their investment and who recognize the material
risk associated with investing in an early-stage enterprise. Purchasing a Note in the Offering will subject the Purchaser to certain
material risks, including, but not limited to, the Risk Factors attached here as Annex C, the content of which the Purchaser
acknowledges he read and fully understood.

 

(n)        
Legends. The certificates and agreements evidencing the Notes and the Common Stock issuable upon conversion
of the Notes shall have endorsed thereon the following legend (and appropriate notations thereof will be made in the Company’s
stock transfer books), and stop transfer instructions reflecting these restrictions on transfer will be placed with the transfer
agent of the Securities:

 

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THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES
LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES
ACT AND REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE EXEMPTION THEREFROM.
NO TRANSFER OF THE SECURITIES REPRESENTED HEREBY MAY BE MADE IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION UNLESS THERE
SHALL HAVE BEEN DELIVERED TO THE ISSUER A WRITTEN OPINION OF UNITED STATES COUNSEL OF RECOGNIZED STANDING, IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER, TO THE EFFECT THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
ACT AND REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

 

4.                 
Representations and Warranties of the Company. The Company represents and warrants to the Purchaser as follows:

 

(a)         
Organization and Qualification. The Company is duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization, with the corporate power and authority to own and operate its business as presently
conducted, except where the failure to be or have any of the foregoing would not have a material adverse effect on the Company.
The Company is duly qualified as a foreign corporation or other entity to do business and is in good standing in each jurisdiction
where the character of its properties owned or held under lease or the nature of their activities makes such qualification necessary,
except for such failures to be so qualified or in good standing as would not have a material adverse effect on the Company.

 

(b)        
Authority; Validity and Effect of Agreement.

 

(i)                
The Company has the requisite corporate power and authority to execute and deliver this Agreement, perform its obligations
under this Agreement, and conduct the Offering. The execution and delivery of this Agreement by the Company, the performance by
the Company of its obligations hereunder, the Offering and all other necessary corporate action on the part of the Company have
been duly authorized by its Board of Directors, and no other corporate proceedings on the part of the Company is necessary to authorize
this Agreement or the Offering. This Agreement has been duly and validly executed and delivered by the Company and, assuming that
it has been duly authorized, executed and delivered by the Purchaser, constitutes a legal, valid and binding obligation of the
Company, in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

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(ii)              
The Securities have been duly authorized and, when issued and paid for in accordance with this Agreement, will be
validly issued, fully paid and non-assessable with no personal liability resulting solely from the ownership of such shares and
will be free and clear of all liens, charges, restrictions, claims and encumbrances imposed by or through the Company.

 

(c)         
No Conflict; Required Filings. Neither the execution and delivery of this Agreement by the Company nor the
performance by the Company of its obligations hereunder will: (i) conflict with the Company’s Articles of Incorporation or
Bylaws; (ii) violate any statute, law, ordinance, rule or regulation, applicable to the Company or any of the properties or assets
of the Company; or (iii) violate, breach, be in conflict with or constitute a default (or an event which, with notice or lapse
of time or both, would constitute a default) under, or permit the termination of any provision of, or result in the termination
of, the acceleration of the maturity of, or the acceleration of the performance of any obligation of the Company, or result in
the creation or imposition of any lien upon any properties, assets or business of the Company under, any material contract or any
order, judgment or decree to which the Company is a party or by which it or any of its assets or properties is bound or encumbered
except, in the case of clauses (ii) and (iii), for such violations, breaches, conflicts, defaults or other occurrences which, individually
or in the aggregate, would not have a material adverse effect on its obligation to perform its covenants under this Agreement;

 

(d)        
Capitalization. The Company is authorized to issue 150,000,000 shares of capital stock, 100,000,000 shares
of which are designated Common Stock, $0.0001 par value per share, of which, as of September 16, 2013, 21,476,073 shares of Common
Stock were issued and outstanding and 50,000,000 shares of Preferred Stock of which, 3,200,000 shares of Series A Preferred Stock,
8,000,000 shares of Series B Preferred Stock, 3,500,000 shares of Series C Preferred Stock and 1,500,000 shares of Series D Preferred
Stock, were issued and outstanding. The Company also has outstanding options to purchase approximately 2.7 million shares of common
stock granted to its executive management team, and warrants to purchase an additional 610,000 shares of common stock. Except as
may be described in the Offering Documents, no securities of the Company are entitled to preemptive or similar rights, and no entity
or person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the
transactions contemplated by this Agreement unless any such rights have been waived. Additional shares may be issued by our board
of directors without further stockholder approval. The Company previously completed in full, through the Placement Agent, an offering
of its Common Stock.

 

(e)         
Consents. The Company is not required to obtain any consent, waiver, authorization, approval or order of,
give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority
or other person or entity in connection with the execution, delivery and performance by the Company of this Agreement or the issuance,
sale or delivery of the Securities other than (i) any filings required by state securities laws, (ii) the filing of a Notice of
a Sale of Securities on Form D with the Securities and Exchange Commission under Regulation D of the Securities and Exchange Act,
(iii) those that have been made or obtained prior to or contemporaneously with the initial Closing, and (iv) filings pursuant to
the Securities and Exchange Act.

 

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(f)         
Litigation. There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding
or investigation before any court, governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its
affiliates that would affect the execution by the Company or the performance by the Company of its obligations under this Agreement,
and all other agreements entered into by the Company relating hereto. There is no pending or, to the best knowledge of the Company,
threatened action, suit, proceeding or investigation before any court, governmental agency or body, or arbitrator having jurisdiction
over the Company, or any of its affiliates which litigation if adversely determined could result in a material adverse effect.

 

5.                 
Indemnification.

 

(a)         
The Purchaser agrees to indemnify, defend and hold harmless the Company and its respective affiliates and agents
from and against any and all demands, claims, actions or causes of action, judgments, assessments, losses, liabilities, damages
or penalties and reasonable attorneys’ fees and related disbursements incurred by the Company which arise out of or result
from a breach of any representations or warranties made by the Purchaser herein, and the Purchaser agrees that in the event of
any breach of any representations or warranties made by the Purchaser herein, the Company may, at its option, forthwith rescind
the sale of the Note to the Purchaser.

 

(b)        
The Company agrees to defend, indemnify and hold harmless the Purchasers and shall reimburse Purchasers for, from
and against each claim, loss, liability, cost and expense (including without limitation, interest, penalties, costs of preparation
and investigation, and the reasonable fees, disbursements and expenses of attorneys, accountants and other professional advisors)
(collectively, “Losses”) directly or indirectly relating to, resulting from or arising out of any untrue representation,
misrepresentation, breach of warranty or non-fulfillment of any covenant, agreement or other obligation by or of the Company contained
herein or in any certificate, document, or instrument delivered to the Purchasers pursuant hereto.

 

(c)         
The party to be indemnified hereunder (the “Indemnified Party”) shall promptly notify the party
providing indemnification hereunder (the “Indemnifying Party”) of any claim, demand, action or proceeding for
which indemnification may be sought under Sections 5(a) and 5(b) of this Agreement, and, if such claim, demand, action or proceeding
is a third party claim, demand, action or proceeding (collectively, an “Action”), the Indemnifying Party will
have the right at its expense to assume the defense thereof using counsel reasonably acceptable to the Indemnified Party; provided,
however any failure or delay to so notify the Indemnifying Party will not relieve it from its obligation to indemnify any Indemnified
Party, unless and only to the extent that such failure or delay results in the forfeiture by the Indemnifying Party of substantial
rights and defenses or the Indemnifying Party is otherwise materially prejudiced by such failure or delay. Any Indemnified Party
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party except to the extent that (i) the employment thereof has been
specifically authorized by the Indemnifying Party in writing, (ii) the Indemnifying Party has failed after a reasonable period
of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a
material conflict on any material issue between the position of the Indemnifying Party and the position of such Indemnified Party,
in which case the Indemnifying Party shall be responsible for the reasonable fees and expenses of no more than one such separate
counsel for the Indemnified Party. In connection with any such third party Action, the Purchasers and the Company shall cooperate
with each other and provide each other with access to relevant books and records in their possession. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, which shall not be unreasonably withheld, effect any settlement, compromise
or consent to the entry of judgment in any pending or threatened Action in respect of which any Indemnified Party is or could have
been a party and indemnity was or could have been sought hereunder by such Indemnified Party, unless such settlement, compromise
or consent includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter
of such Action. Further, no Indemnified Party seeking indemnification hereunder will, without the prior written consent of the
Indemnifying Party, which shall not be unreasonably withheld, settle, compromise, consent to the entry of any judgment in or otherwise
seek to terminate any Action. The Indemnifying Party shall not be liable for settlement of any Action effected without its written
consent.

 

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6.                 
Confidentiality. Each Purchaser acknowledges and agreements that:

 

(a)         
This Agreement and the other Offering Documents have been furnished to the Purchaser by the Company for the sole
purpose of enabling the Purchaser to consider and evaluate an investment in the Company, and will be kept confidential by the Purchaser
and not used for any other purpose.

 

(b)        
The information contained herein shall not, without the prior written consent of the Company, be disclosed by the
Purchaser to any person or entity, other than the Purchaser’s personal financial and legal advisors for the sole purpose
of evaluating an investment in the Company, and will not, directly or indirectly, disclose or permit the Purchaser’s personal
financial and legal advisors to disclose, any of such information without the prior written consent of the Company.

 

(c)         
The Purchaser shall make its representatives aware of the terms of this section and to be responsible for any breach
of this Agreement by such representatives.

 

(d)        
The Purchaser shall not, without the prior written consent of the Company, directly or indirectly, make any statements,
public announcements or release to trade publications or the press with respect to the subject matter of this Agreement and the
other Offering Documents.

 

(e)         
If the Purchaser decides to not pursue further investigation of the Company or to not participate in the Offering,
the Purchaser will promptly return this Agreement, the other Offering Documents and any accompanying documentation to the Company.

 

7.                 
Entire Agreement. This Agreement contains the entire agreement between the parties and supersedes all prior
agreements and understandings, both written and oral, between the parties with respect to the subject matter hereto, and no party
shall be liable or bound to any other party in any manner by any warranties, representations, guarantees or covenants except as
specifically set forth in this Agreement. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement.

 

    	11

    	 

    

 

8.                 
Amendment and Modification. Any term of the Notes may be amended, supplemented or waived upon the consent
of the holders of a majority of the Principal Amount of Notes and such amendment, supplement or waiver shall be binding upon all
Purchasers, whether or not such Purchaser has consented to such amendment, supplement or waiver. Any such amendment, supplement
or waiver must be in a single written instrument or in two or more counterparts executed and delivered by the Company and the holders
of a majority of the Principal Amount of Notes.

 

9.                 
Extensions and Waivers. At any time prior to the Closing, the parties hereto entitled to the benefits of a
term or provision may (a) extend the time for the performance of any of the obligations or other acts of the parties hereto, (b)
waive any inaccuracies in the representations and warranties contained herein or in any document, certificate or writing delivered
pursuant hereto, or (c) waive compliance with any obligation, covenant, agreement or condition contained herein. Any agreement
on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument or instruments in writing
signed by the party against whom enforcement of any such extension or waiver is sought. No failure or delay on the part of any
party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence
in, any breach of any representation, warranty, covenant or agreement.

 

10.             
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, provided, however, that no party hereto may assign its rights or delegate its obligations
under this Agreement without the express prior written consent of the other party hereto. Except as provided in Section 5, nothing
in this Agreement is intended to confer upon any person not a party hereto (and their successors and assigns) any rights, remedies,
obligations or liabilities under or by reason of this Agreement.

 

11.             
Survival of Representations, Warranties and Covenants. The representations and warranties contained herein
shall survive the Closing and shall thereupon terminate twelve (12) months from the Closing, except that the representations contained
in Sections 3(a), 3(b), 4(a), and 4(b) shall survive indefinitely. All covenants and agreements contained herein which by their
terms contemplate actions following the Closing shall survive the Closing and remain in full force and effect in accordance with
their terms. All other covenants and agreements contained herein shall not survive the Closing and shall thereupon terminate.

 

12.             
Headings; Definitions. The Section headings contained in this Agreement are inserted for convenience of reference
only and will not affect the meaning or interpretation of this Agreement. All references to Sections contained herein mean Sections
of this Agreement unless otherwise stated. All capitalized terms defined herein are equally applicable to both the singular and
plural forms of such terms.

 

    	12

    	 

    

 

13.             
Severability. If any provision of this Agreement or the application thereof to any person or circumstance
is held to be invalid or unenforceable to any extent, the remainder of this Agreement shall remain in full force and effect and
shall be reformed to render the Agreement valid and enforceable while reflecting to the greatest extent permissible the intent
of the parties.

 

14.             
Notices. All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered
personally, sent by documented overnight delivery service or, to the extent receipt is confirmed, telecopy, telefax or other electronic
transmission service to the appropriate address or number as set forth below:

 

If to the Company:

 

Armada Water Assets, Inc.

2425 Fountain View Drive; Suite 300

Houston, TX 77057

Attention: Maarten Propper, CEO

 

If to the Purchaser:

 

To that address indicated on
the signature page hereof.

 

15.             
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to contracts to be wholly-performed within said State, and without regard to the conflicts of laws principles
thereof.

 

16.             
Arbitration. The parties agree to submit all controversies to arbitration in accordance with the provisions
set forth below and understand that:

 

(a)         
Arbitration is final and binding on the parties.

 

(b)        
The parties are waiving their right to seek remedies in court, including the right to a jury trial.

 

(c)         
Pre-arbitration discovery is generally more limited and different from court proceedings.

 

(d)        
The arbitrator’s award is not required to include factual findings or legal reasoning and any party’s
right to appeal or to seek modification of rulings by arbitrators is strictly limited.

 

(e)         
The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities
industry.

 

(f)         
All controversies which may arise between the parties concerning this Agreement shall be determined by arbitration
pursuant to the rules then pertaining to the American Arbitration Association in New York City, New York. The arbitration shall
be governed by the Federal Arbitration Act, 9 U.S.C. Sec. 1-16, and the judgment upon the award rendered by the arbitrators may
be entered by any court having jurisdiction thereof. Any notice of such arbitration or for the confirmation of any award in any
arbitration shall be sufficient if given in accordance with the provisions of this Agreement. The parties agree that the determination
of the arbitrators shall be binding and conclusive upon them.

 

    	13

    	 

    

 

17.             
No Separate Counsel for Investors. Fox Rothschild LLP has acted as counsel for the Company and not as counsel
for the Purchaser. Unless separately retained by the Purchaser (at its expense), no counsel has acted for the Purchaser.

 

18.             
Counterparts. This Agreement may be executed and delivered by facsimile in two or more counterparts, each
of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement.

 

    	14

    	 

    

 

 

IN WITNESS WHEREOF, intending to be legally bound, the parties
hereto have caused this Securities Purchase Agreement to be executed as of the date set forth below.

 

	 	 	Individual Purchasers:
	 	 	 
	Date:	 	 	PURCHASER:
	 	 	 	 
	 	 	Individual Purchasers:
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Entity Purchasers:
	 	 	 
	 	 	Name of Company

  

	 	 	By: 	 
	 	 	 	Name:
	 	 	 	Title:

  

	 	 	All Purchasers Complete

 

 

	 	 	Address:	 

 

 

	 	 	Email Address:	 

  

	 	 	Social Security/Tax I.D. Number:

 

 

 

	 	 	Principal Amount:  $	 

 

 

	Subscription Accepted:	 	ARMADA WATER ASSETS, INC.
	 	 	 
	Date:	 	 	By:	 
	 	 	 
	 	 	Maarten Propper, CEO

 

    	15

    	 

    

 

SUPPLEMENT
TO SIGNATURE PAGE

PURCHASER QUALIFICATION AS ACCREDITED INVESTOR

PLEASE CHECK ONE AS APPROPRIATE

 

_____
(1)              
a bank, insurance company, registered investment company, business development company, or small business investment
company;

 

_____
(2)              
Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

 

_____
(3)              
Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar
business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess
of $5,000,000;

 

_____
(4)              
Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any
director, executive officer, or general partner of a general partner of that issuer;

 

_____
(5)              
Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000.

 

(i)           
Except as provided in paragraph (a)(5)(ii) of this section, for purposes of calculating net worth under this paragraph
(a)(5):

 

(A)            
The person's primary residence shall not be included as an asset;

 

(B)             
Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary
residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness
outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of
the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

 

(C)             
Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the
primary residence at the time of the sale of securities shall be included as a liability;

 

_____
(6)              
Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint
income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the
same income level in the current year;

 

_____
(7)              
Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities
offered, whose purchase is directed by a sophisticated person as described in § 230.506(b)(2)(ii); and

 

_____ (8)              
Any entity in which all of the equity owners are accredited investors.

 

    	16Exhibit 4.8

 

PLACEMENT
AGENT WARRANT AGREEMENT

 

WARRANT AGREEMENT dated as of November 22,
2013, between Armada Water Assets, Inc., a Nevada corporation (the “Company”), and Aegis Capital Corp. (the “Placement
Agent”).

 

WITNESSETH

 

WHEREAS, the Company proposes to issue to
the Placement Agent, or its designees, warrants (“Warrants”) to purchase shares of common stock, $0.0001 par value,
of the Company (“Common Stock”); and

 

WHEREAS, the Warrants to be issued pursuant
to this Agreement will be issued by the Company to the Placement Agent, or its designees, in consideration for, and as part of
the Placement Agent’s compensation in connection with the Placement Agency Agreement between the Company and Placement Agent,
dated September 26, 2013 (the “Agreement Date”), pursuant to which the Placement Agent agreed to conduct on behalf
of the Company, a private placement offering (the “Offering”) of convertible promissory notes of the Company (the “Notes”)
in the amount, and on the terms described within a Securities Purchase Agreement of the Company dated September 26, 2013 (the “September
26, 2013 SPA”);

 

NOW, THEREFORE, in consideration of the
premises, the payment by Placement Agent to the Company of ONE DOLLAR, the agreements herein set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Grant.
The Holders (as defined below) are hereby granted the right to purchase, at any time from the date hereof until 5:30 p.m., New
York time on the fifth anniversary of this Agreement (such period, the “Warrant Exercise Term”), such number of shares
of Common Stock of the Company as are indicated at Section 1.1 below, at an initial exercise price per share (subject to adjustment
as provided in Section 7 hereof) as indicated at Section 5.1 below, subject to the terms and conditions of this Agreement, provided,
however, in the event that (a) the Company undertakes an initial public offering of newly issued shares of its common stock in
an underwritten transaction (a “Public Offering”) within one hundred eighty (180) days hereof; and (b) the Placement
Agent is an underwriter in such Public Offering, then, and in that event, the Warrant Exercise Term of this Warrant shall be modified
such that the Holder shall not be permitted to exercise this Warrant until one year from the date of completion of such Public
Offering, however, with no alteration of the expiration of the Warrant Exercise Term.

 

1.1           Warrant
Shares. The Holders are hereby granted the right to purchase at any time during the Warrant Exercise Term, either: (i) to the
extent there is no Public Offering that occurs within one year from the date of grant hereof, 137,500 shares of Common Stock (as
subject to adjustment as provided in Section 7 hereof); or (ii) to the extent the Company completes a Public Offering within one
year from the date of grant hereof, that number of shares of Common Stock as are equal to $137,500 divided by the IPO Exercise
Price (as defined below).

 

    	 

    	 

    

 

2.          Warrant
Certificates. The Warrant certificates (the “Warrant Certificates”) delivered and to be delivered pursuant to this
Agreement shall be in the form set forth in Exhibit A, attached hereto and made a part hereof, with such appropriate insertions,
omissions, substitutions, and other variations as required or permitted by this Agreement.

 

3.          Exercise
of Warrant. At any time after the date hereof and on or before the expiration of the Warrant Exercise Term, each Holder, in
accordance with the terms hereof, may exercise each Warrant, by delivering this Warrant to the Company during normal business hours
at the Company’s principal office together with the Election to Purchase, in the form attached hereto as Exhibit B (the “Election
to Purchase”), duly executed, and subject to Section 3.2, payment of the Exercise Price per share for the number of shares
to be purchased, as specified therein. The purchase rights represented by each Warrant Certificate are exercisable at the option
of the Holder thereof, in whole or in part (but not as to fractional shares of the Common Stock underlying the Warrants). In the
case of purchase of less than all the shares of Common Stock purchasable under any Warrant Certificate, the Company shall cancel
said Warrant Certificate upon the surrender thereof and shall execute and deliver a new Warrant Certificate of like tenor for the
balance of the shares of Common Stock.

 

3.1           Method
of Exercise. The Warrants are exercisable at an initial exercise price (subject to adjustment as provided in Section 7 hereof)
of $1.50 per share of Common Stock (subject to Section 5.1 hereafter) payable by wire transfer of immediately available funds or
as set forth in Section 3.2. Upon surrender of a Warrant Certificate with the Form of Election to Purchase duly executed, together
with payment of the Exercise Price (as hereinafter defined) for the shares of Common Stock issuable upon exercise of the Warrants
(the “Warrant Shares”) at the Company's principal offices at 2425 Fountain View Drive, Suite 300, Houston, TX, 77057
(or such other office as the Company may notify the Holder (as defined below) from time to time), Placement Agent or its designee,
as the registered holder of a Warrant Certificate (“Holder” or “Holders”) shall be entitled to receive
a certificate or certificates for the shares of Common Stock so purchased.

 

3.2           Cashless
Exercise of Warrant. In addition to the method of exercise set forth in Section 3.1 and in lieu of any cash payment required
thereunder, the Holder(s) of the Warrant shall have the right at any time and from time to time, provided that the Common Stock
is registered under the Securities Exchange Act of 1934 (the “Exchange Act”), to exercise the Warrants in full or in
part by surrendering the Warrant Certificate in the manner specified in Section 3.1 in exchange for the number of shares of Common
Stock equal to the product of (x) the number of shares as to which the Warrants are being exercised multiplied by (y) a fraction,
the numerator of which is the Market Price (as hereinafter defined) per share of the Common Stock less the Exercise Price per share
and the denominator of which is such Market Price per share.

 

3.3           Solely
for the purposes of this Section 3.2, “Market Price” shall be calculated as either (i) the closing sales price on the
trading day immediately preceding the date on which the annexed Form of Election is deemed to have been sent to the Company pursuant
to Section 12 hereof (“Notice Date”) or (ii) as the average of the closing sales price for each of the five (5) trading
days preceding the Notice Date, whichever of (i) or (ii) is greater.

 

    	2

    	 

    

 

4.          Issuance
of Certificates. Upon the exercise of the Warrants, the issuance of certificates for shares of Common Stock or other securities,
properties or rights underlying such Warrants shall be made forthwith (and in any event such issuance shall be made within five
business days thereafter) without charge to the Holder thereof including, without limitation, any tax which may be payable in respect
of the issuance thereof, and such certificates shall (subject to the provisions of Section 5 and 7 hereof) be issued in the name
of, or in such names as may be directed by, the Holder thereof; provided, however, that the Company shall not be required to pay
any tax which may be payable in respect to any transfer involved in the issuance and delivery of any such certificates in a name
other than that of the Holder and the Company shall not be required to issue or deliver such certificates unless or until the person
or people requesting the issuance thereof shall have paid to the Company the amount of such tax or shall be established to the
satisfaction of the Company that such tax has been paid.

 

The Warrant Certificates and the certificates
representing the shares of Common Stock (and/or other securities, property or rights issuable upon exercise of the Warrants) shall
be executed on behalf of the Company by the manual or facsimile signature of the then present Chairman or Vice Chairman of the
Board of Directors, Chief Executive Officer or President or Vice President of the Company under its corporate seal reproduced thereon,
attested to by the manual or facsimile signature of the then present Secretary or Assistant Secretary of the Company. Warrant Certificates
shall be dated the date of execution by the Company upon initial issuance, division, exchange, substitution or transfer.

 

5.          Exercise
Price.

 

5.1           Initial
and Adjusted Exercise Price. Except otherwise provided in Section 7 hereof, the Warrants shall be exercisable to purchase Common
Stock at an initial exercise price per share of either: (i) $1.50, to the extent there is no Public Offering that occurs within
one year from the date of grant hereof; or (ii) to the extent the Company completes a Public Offering within one year from the
date of grant hereof, an exercise price per share equal to one hundred and fifty percent (150%) of the conversion price per share
of Common Stock pursuant to the Notes, i.e. 105% of the initial Public Offering price (the “IPO Exercise Price). The adjusted
exercise price shall be the price which shall result from time to time from any and all adjustments of the initial exercise price
in accordance with the provisions of Section 7 hereof.

 

5.2           Exercise
Price. The term “Exercise Price” herein shall mean the initial exercise price or the adjusted exercise price, depending
upon the context.

 

6.          Registration.

 

6.1           Registration
Under the Securities Act of 1933. The Warrants and the Warrant Shares (collectively, the “Warrant Securities”)
have not been registered under the Securities Act of 1933 (the “Act”) for public resale. Upon exercise, in part of
in whole, of the Warrants, certificates representing the shares of Common Stock and any of the other securities issuable upon exercise
of the Warrants shall bear the following legend:

 

    	3

    	 

    

 

The Securities represented by this certificate have
not been registered under the Securities Act of 1933 ("Act") for public resale, and may not be offered or sold except
pursuant to (i) an effective registration statement under the Act, (ii) to the extent applicable, Rule 144 under the Act (or any
similar rule under such Act relating to the disposition of securities), or (iii) an opinion of counsel, if such opinion shall be
reasonably satisfactory to the issuer, that an exemption from registration under such Act is available.

 

6.2           Piggyback
Registration.

 

(a)          If,
at any time commencing after the date hereof until the expiration of the Warrant Exercise Term, the Company proposes to register
any of its securities under the Act (other than in connection with a benefit plan, merger or pursuant to Form S-8, S-4 or comparable
registration statement that is not intended to register the sale of securities), it will give written notice by registered mail,
at least thirty (30) days prior to the filing of each such registration statement (a “Registration Statement”), to
Placement Agent and to all other Holders of the Warrant Securities, of its intention to do so. If Placement Agent or other Holders
of the Warrant Securities notify the Company within twenty (20) days after receipt of any such notice of its or their desire to
include any Warrant Shares in such proposed Registration Statement, the Company shall afford Placement Agent and such Holders of
the Warrant Securities the opportunity to have any such Warrant Shares registered under such Registration Statement; provided,
however, the Company shall not be required to register for sale, and the Placement Agent and any other Holders shall not have the
right to request that the Company include for sale any Warrant Securities in an underwritten initial public offering by the Company.
Furthermore, in the event that any registration pursuant to this Section 6.2(a) shall be, in whole or in part, an underwritten
public offering of Common Stock on behalf of the Company, and the managing underwriters advise the Company in writing that in their
opinion the number of securities requested to be included in such registration exceeds the number which can be offered or sold
in an orderly manner in such offering within a price range acceptable to the Company, the Company shall include in such registration
(i) first, the securities the Company proposes to sell, (ii) second, the re-offer of other outstanding shares requested to be included
in such registration; and third, the Warrant Securities, however, only to the extent that the number of Warrant Securities to be
registered will not, in the opinion of the managing underwriters, adversely affect the offering of the other securities pursuant
to clauses (i) and (ii) above.

 

(b)          Notwithstanding
anything to the contrary contained herein, the Company’s obligation in Section 6.2(a) above shall extend only to the inclusion
of the Warrant Securities in a Registration Statement filed under the Securities Act. The Company shall have no obligation to assure
the terms and conditions of distribution, to obtain a commitment from an underwriter relative to the sale of the Warrant Securities
or to otherwise assume any responsibility for the manner, price or terms of the distribution of the Warrant Securities. Furthermore,
the Company shall not be restricted in any manner from including within the Registration Statement the distribution, the issuance
or resale of any of its or any other securities.

 

    	4

    	 

    

 

(c)          Notwithstanding
the provisions of this Section 6.2, the Company shall have the right to any time after it shall have given written notice pursuant
to this Section 6.2 (irrespective of whether a written request for inclusion of any such securities shall have been made) to elect
to postpone or not to file any such proposed Registration Statement, or to withdraw the same after filing but prior to the effective
date thereof.

 

(d)          All
expenses (other than underwriting discounts and commissions) incurred in connection with registration, filings or qualification
pursuant to the first registration request made pursuant to subsection (a) of this Section 6.2, including, without limitation,
all registration, listing, filing, and qualification fees, printers and accounting fees and the fees and disbursements of counsel
for the Holders shall be borne by the Company.

 

6.3           Covenants
of the Company with Respect to Registration. In connection with any registration under Section 6.2 hereof, the Company covenants
and agrees as follows:

 

(a)          The
Company shall use its best efforts to have any Registration Statement declared effective at the earliest possible time, and shall
furnish each Holder desiring to sell Warrant Shares such number of prospectuses as shall reasonably be requested.

 

(b)          The
Company shall pay all fees and expenses in connection with all Registration Statements filed pursuant to Section 6.2 hereof including,
without limitation, the Company's legal and accounting fees, printing expenses, blue sky fees and expenses; and the Holder shall
be responsible for its costs including fees and expenses of Holder(s)' counsel, and including any underwriting or selling commissions
or other charges of any broker-dealer acting on behalf of Holder(s).

 

(c)          The
Company will take all necessary action which may be required in qualifying or registering the Warrant Shares included in the Registration
Statement for offering and sale under the securities or blue sky laws of such states as reasonably are requested by the Holder(s),
provided that the Company shall not be obligated to execute or file any general consent to service or process or to qualify as
a foreign corporation to do business under the laws of any such jurisdiction.

 

(d)          The
Company shall indemnify the Holder(s) of the Warrant Shares to be sold pursuant to any Registration Statement and each person,
if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all
loss, claim, damage, expense or liability (including all expenses reasonably incurred in investigating, preparing or defending
against any claim whatsoever) to which any of them may become subject.

 

(e)          The
Holder(s) of the Warrant Shares to be sold pursuant to a Registration Statement, and their successors and assigns, shall severally,
and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company within the
meaning of Section 15 of the Act or Section 20 (a) of the Exchange Act, against all loss, claim, damage or expense or liability
(including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they
may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders,
or their successors or assigns, for specific inclusion in such a Registration Statement.

 

    	5

    	 

    

 

(f)          Nothing
contained in this Agreement shall be construed as requiring the Holder(s) to exercise their Warrants prior to the initial filing
of any Registration Statement or the effectiveness thereof.

 

(g)          The
Company shall furnish to each Holder participating in an offering including Warrant Shares, pursuant to Section 6.2 hereof, and
to each underwriter, if any, a signed counterpart, addressed to such Holder or underwriter, of (i) an opinion of counsel to the
Company, dated the effective date of such Registration Statement (and, if such registration includes an underwritten public offering,
an opinion dated the date of the closing under the underwriting agreement), and (ii) a "cold comfort" letter dated the
effective date of such Registration Statement (and, if such registration includes an underwritten public offering, a letter dated
the date of the closing under the underwriting agreement) signed by the independent public accountants who have issued a report
on the Company's financial statements included in such Registration Statement, in each case covering substantially the same matters
with respect to such Registration Statement (and the prospectus included therein) and, in the case of such accountants' letter,
with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer's
counsel and in accountants' letters delivered to underwriters in underwritten public offerings of securities.

 

(h)          The
Company shall as soon as practicable after the effective date of a Registration Statement relating to any Warrant Shares pursuant
to Section 6.2 hereof, and in any event within fifteen (15) months thereafter, make "generally available to its security holders"
(within the meaning of Rule 157 under the Act) an earnings statement (which need not be audited) complying with Section 11(a) of
the Act and covering a period of at least twelve (12) consecutive months beginning after the effective date of the Registration
Statement.

 

(i)          The
Company shall deliver promptly to each Holder participating in an offering including any Warrant Shares pursuant to Section 6.2
hereof, who so requests, and to the managing underwriter, copies of all correspondence between the Commission and the Company,
its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to the Registration
Statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the Registration Statement as it deems reasonably necessary to comply with applicable securities laws
or rules of the Financial Industry Regulatory Authority (“FINRA”). Such investigation shall include access to books,
records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all
to such reasonable extent and at such reasonable times and as often as any such Holder shall reasonably request as it deems necessary
to comply with applicable securities laws and FINRA rules.

 

    	6

    	 

    

 

(j)          For
purposes of this Agreement, the term “Majority” in reference to the Holders of Warrants or Warrant Shares, shall mean
in excess of fifty percent (50%) of the outstanding Warrants or Warrant Shares that (i) are not held by the Company, an affiliate
(excluding the Agent and any affiliate of the Agent), officer, creditor, employee or agent thereof or any of their respective affiliates,
members of their family, persons acting as nominees or in conjunction therewith or (ii) have not been resold to the public pursuant
to a Registration Statement filed with the Commission under the Act.

 

6.4           Obligations
of Holder.

 

(a)          In
connection with each registration hereunder, each selling Holder will furnish to the Company in writing such information with respect
to such seller and the securities held by such seller, and the proposed distribution by him or them as shall be reasonably requested
by the Company in order to assure compliance with federal and applicable state securities laws, as a condition precedent to including
such Holder’s Warrant Securities in the Registration Statement. Each Holder also shall agree to promptly notify the Company
of any changes in such information included in the Registration Statement or prospectus as a result of which there is an untrue
statement of material fact or an omission to state any material fact required or necessary to be stated therein in order to make
the statements contained therein not misleading in light of the circumstances then existing.

 

(b)          In
connection with each registration pursuant to this Agreement, the Holder whose Warrant Securities are included therein will not
affect sales thereof until notified by the Company of the effectiveness of the Registration Statement, and thereafter will suspend
such sales after receipt of telegraphic or written notice from the Company to suspend sales to permit the Company to correct or
update a Registration Statement or prospectus. At the end of any period during which the Company is obligated to keep a Registration
Statement current, the Holder included in said Registration Statement shall discontinue sales of shares pursuant to such Registration
Statement upon receipt of notice from the Company of its intention to remove from registration the shares covered by such Registration
Statement which remain unsold, and such Holder shall notify the Company of the number of shares registered which remain unsold
immediately upon receipt of such notice from the Company.

 

6.5           Information
Blackout and Holdbacks.

 

(a)          At
any time when a Registration Statement effected pursuant to Section 6.2 relating to Warrant Securities is effective, upon written
notice from the Company to the Holder that the Company has determined in good faith that sale of Warrant Securities pursuant to
the Registration Statement would require the premature disclosure of non-public material information as to which the Company has
a bonafide business purpose for maintaining its confidentiality, the Holder shall suspend sales of Warrant Securities pursuant
to such Registration Statement until such time as the Company notifies the Holder that such material information has been disclosed
to the public or has ceased to be material or that sales pursuant to such Registration Statement may otherwise be resumed; provided,
however, that the number of days of any such suspension may not exceed an aggregate of 120 days in any 360-day period; and provided,
further, that upon the expiration of such suspension the Company will file any required supplement or amendment to the prospectus
included in part of such Registration Statement with the SEC.

 

    	7

    	 

    

 

(b)          Notwithstanding
any other provision of this Agreement, if the Company elects to include the Warrant Securities in a Registration Statement, and
that Registration Statement includes the reoffer of shares of Common Stock issuable upon conversion of convertible notes issued
by the Company in connection with the September 26, 2013 SPA (the “SPA Shares”), then and in that event, the Holders
of the Warrant Securities agree not to effect any public sale or distribution of the Warrant Securities on different terms than
those applicable to the SPA Shares, as the Holders of the Warrant Securities recognize and agree to be bound by the same lock-up
provisions that are applicable to the SPA Shares.

 

7.          Adjustments
to Exercise Price and Number of Securities.

 

7.1           Subdivision
and Combination. In case the Company shall at any time subdivide or combine the outstanding shares of Common Stock, the Exercise
Price shall forthwith be proportionately decreased in the case of subdivision or increased in the case of combination.

 

7.2           Adjustment
in Number of Securities. Upon each adjustment of the Exercise Price pursuant to the provisions of this Section 7, the number
of securities issuable upon the exercise of each Warrant shall be adjusted to the nearest full amount by multiplying a number equal
to the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Securities issuable upon exercise
of the Warrants immediately prior to such adjustment and dividing the product so obtained by the adjusted Exercise Price.

 

7.3           Definition
of Common Stock. For the purpose of this Agreement, the term “Common Stock” shall mean (i) the class of stock designated
as Common Stock in the Company’s articles of incorporation as may be amended as of the date hereof, or (ii) any other class
of stock resulting from successive changes or reclassifications of such Common Stock consisting solely of changes in par value,
or from par value to no par value, or from no par value to par value.

 

7.4           Merger
or Consolidation. In case of any consolidation of the Company with, or merger of the Company with, or merger of the Company
into, another corporation (other than a consolidation or merger which does not result in any reclassification or change of the
outstanding Common Stock), the corporation formed by such consolidation or merger shall execute and deliver to the Holder a supplemental
warrant agreement providing that the holder of each Warrant then outstanding or to be outstanding shall have the right thereafter
(until the expiration of such Warrant) to receive, upon exercise of such warrant, the kind and amount of shares of stock and other
securities and property receivable upon such consolidation or merger, by a property receivable upon such consolidation or merger,
by a holder of the number of shares of Common Stock of the Company for which such warrant might have been exercised immediately
prior to such consolidation, merger, sale or transfer. Such supplemental warrant agreement shall provide for adjustments which
shall be identical to the adjustments provided in Section 7.2. The above provision of this Subsection shall similarly apply to
successive consolidations or mergers.

 

    	8

    	 

    

 

7.5           No
Adjustment of Exercise Price in Certain Cases. No adjustment of the Exercise Price shall be made:

 

(a)          Upon
issuance or sale of the Warrants or the shares of Common Stock issuable upon the exercise of the Warrants.

 

(b)          If
the amount of said adjustment shall be less than two cents ($0.02) per security issuable upon exercise of the Warrants, provided,
however, that in such case any adjustment that would otherwise be required then to be made shall be carried forward and shall be
made at the time of and together with the next subsequent adjustment which, together with any adjustment so carried forward, shall
amount to at least two cents ($0.02) per security issuable upon exercise of the Warrants.

 

7.6           Dividends
and Other Distributions. In the event that the Company shall at any time prior to the exercise of all Warrants declare a dividend
(other than a dividend consisting solely of shares of Common Stock) or otherwise distribute to its stockholders any assets, properties,
rights, evidence of indebtedness, securities (other than shares of Common Stock), whether issued by the Company or by another,
or any other thing of value, the Holders of the unexercised Warrants shall thereafter be entitled, in addition to the shares of
Common Stock or other securities and property receivable upon the exercise thereof, to receive, upon the exercise of such Warrants,
the same property, assets, rights, evidences of indebtedness, securities or any other thing of value that they would have been
entitled to receive at the time of such dividend or distribution as if the Warrants had been exercised immediately prior to such
dividend or distribution. At the time of any such dividend or distribution, the Company shall make appropriate reserves to ensure
the timely performance of the provisions of this Section 7.6.

 

8.          Exchange
and Replacement of Warrant Certificates. Each Warrant Certificate is exchangeable without expense, upon the surrender thereof
by the registered Holder at the principal office of the Company, for a new Warrant Certificate of like tenor and date representing
in the aggregate the right to purchase the same number of securities in such denominations as shall be designated by the Holder
thereof at the time of such surrender.

 

Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of any Warrant Certificate, and, in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to it, and reimbursement to the Company of all reasonable expenses
incidental thereto, and upon surrender and cancellation of the Warrants, if mutilated, the Company will make and deliver a new
Warrant Certificate of like tenor, in lieu thereof.

 

9.          Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of shares of Common
Stock upon the exercise of the Warrants, nor shall it be required to issue script or pay cash in lieu of fractional interests,
it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up to the nearest
whole number or shares of Common Stock or other securities, properties or rights.

 

    	9

    	 

    

 

10.         Reservation
and Listing of Securities. The Company shall at times reserve and keep available out of its authorized shares of Common Stock,
solely for the purpose of issuance upon the exercise of the Warrants, such number of shares of Common Stock or other securities,
properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the
Warrants and payment of the Exercise Price therefor, all shares of Common Stock and other securities issuable upon such exercise
shall be duly and validly issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder. As long
as the Warrants shall be outstanding and the Company shall have a class of its securities registered under the Act or the Exchange
Act, the Company shall use its best efforts to cause all shares of Common Stock issuable upon the exercise of the Warrants to be
listed or reserved for listing (subject to official notice of issuance) on all security exchanges on which the Common Stock issued
to the public in connection herewith may then be listed and/or quoted.

 

11.         Notices
to Warrant Holders. Nothing contained in this Agreement shall be constructed as conferring upon the Holders the right to vote
or to consent or to receive notices of stockholders in respect of any meetings of stockholders for the election of directors or
any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration
of the Warrants and their exercise, any of the following events shall occur:

 

(a)          the
Company shall take a record of the holders of its shares of Common Stock for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of current or retained
earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; or

 

(b)          the
Company shall offer to all the holders of its Common Stock any additional shares of capital stock of the Company or securities
convertible into or exchangeable for shares of capital stock of the Company, or any option right or warrant to subscribe therefor;
or

 

(c)          a
dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all
or substantially all of its property, assets and business as an entirety shall be proposed;

 

then, in any one or more of said events, the Company shall give
written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer
books for the determination of the convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed
dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books,
as the case may be. Failure to give such notice or any defect therein shall not affect the validity of any action taken in connection
with the declaration or payment of any such dividend, or the issuance of any convertible or exchangeable securities or subscription
rights, options or warrants, or any proposed dissolution, winding up or sale.

 

    	10

    	 

    

 

12.         Notices.
All notices, requests, consents and other communications hereunder shall be in writing and shall be deemed to have been duly made
when delivered, or mailed by registered or certified mail, return receipt requested:

 

(a)          If
to the registered Holder of the Warrants, to the address of such Holder as shown on the books of the Company; or

 

(b)          If
to the Company, to the address set forth in Section 3.1 hereof or to such other address as the Company may designate by notice
to the Holders.

 

13.         Supplements
and Amendments. The Company and Placement Agent may from time to time supplement or amend this Agreement without the approval
of any holders of Warrant Certificates in order to cure any ambiguity, to correct or supplement any provision contained herein
which may be defective or inconsistent with any provision herein, or to make any other provisions in regard to matters or questions
arising hereunder which the Company and Placement Agent may deem necessary or desirable and which the Company and Placement Agent
deem shall not adversely affect the interests of the Holders of Warrant Certificates. Other amendments to this Agreement may be
made only with the written consent of the Holders of the Majority of the Warrant Securities.

 

14.         Successors.
All the covenants and provisions of this Agreement shall be binding upon and inure to the benefit of the Company, the Holders and
their respective successors and assigns hereunder.

 

15.         Termination.
This Agreement shall terminate at the close of business on the later of: (i) the fifth anniversary of the date hereof; or (ii)
the Warrant Exercise Term. Notwithstanding the foregoing, the indemnification provisions of Section 6 shall survive such termination
until the close of business on the eighth anniversary of the date hereof.

 

16.         Governing
Law: Submission to Jurisdiction. This Agreement and each Warrant Certificate issued hereunder shall be deemed to be a contract
made under the laws of the State of New York and for all purposes shall be construed in accordance with the laws of said State
without giving effect to the rules of said State governing the conflicts of laws.

 

The Company, Placement Agent and the Holders
hereby agree that any action, proceeding or claim against it arising out of, or relating in any way to, this Agreement shall be
brought and enforced in the courts of the State of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall
be exclusive. The parties and each Holder agree that any dispute, claim or controversy directly or indirectly relating to or arising
out of this agreement, the termination or validity hereof, any alleged breach of this agreement or the engagement contemplated
hereby (any of the foregoing, a “claim”) shall be submitted to the judicial arbitration and mediation services, inc
(“JAMS”), or its successor, in New York, for final and binding arbitration in front of a panel of three arbitrators
with jams in New York, New York under the JAMS comprehensive arbitration rules and procedures with the Holder (or Holders) and
the Company each choosing one arbitrator, and the chosen arbitrators choosing the third arbitrator). The arbitrators shall, in
their award, allocate all of the costs of the arbitration, including the fees of the arbitrators and the reasonable attorneys’
fees of the prevailing party, against the party who did not prevail. The award in the arbitration shall be final and binding. The
arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. Sec.1-16, and the judgment upon the award rendered by the
arbitrators may be entered by any court having jurisdiction thereof. Any award and the decision shall be rendered in writing. Notwithstanding
anything to the contrary contained in the Federal Arbitration Act, no punitive damages shall be awarded to any party. The Company
and each Holder agree and consent to personal jurisdiction, service of process and venue in any federal or state court within the
state and county of New York in connection with any action brought to enforce an award in arbitration.

 

    	11

    	 

    

 

17.         Entire
Agreement; Modification. This Agreement contains the entire understanding between the parties hereto with respect to the subject
matter hereof and may not be modified or amended except by a writing duly signed by the party against whom enforcement of the modification
or amendment is sought.

 

18.         Severability.
If any provision of this Agreement shall be held to be invalid and unenforceable, such invalidity or unenforceability shall not
affect any other provision of this Agreement.

 

19.         Captions.
The caption headings of the Sections of this Agreement are for convenience of reference only and are not intended, nor should they
be construed as, a part of this Agreement and shall be given no substantive effect.

 

20.         Benefits
of this Agreement. Nothing in this Agreement shall be construed to give to any person or corporation other than the Company
and Placement Agent and any other registered Holders(s) of the Warrant Certificates or Warrant Shares any legal or equitable right,
remedy or claim under this Agreement; and this Agreement shall be for the sole and exclusive benefit of the Company and Placement
Agent and any other Holder(s) of the Warrant Certificates or Warrant Shares.

 

21.         Counterparts.
This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and such counterparts shall together constitute but one and the same instrument.

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed, as of the day and year first written.

 

	 	ARMADA WATER ASSETS, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Maarten Propper
	 	 	Maarten Propper, Chief Executive Officer

 

(Signature continued on following page)

 

    	12

    	 

    

 

	 	AEGIS CAPITAL CORP.
	 	 	 	 
	 	By:	 	/s/ Eugene Terracciano
	 	 	 	 
	 	Name:	Eugene Terracciano
	 	 	 	 
	 	Title:	Director of Compliance

 

    	13

    	 

    

 

Exhibit A

 

THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES
ISSUABLE UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO
THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO THE ISSUER,
THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

 

THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

 

	No. W-____	_______ Warrants

 

ARMADA WATER ASSETS, INC.

 

WARRANT CERTIFICATE

 

This Warrant Certificate certifies that
_________________, or its registered assigns, is the registered holder of a Warrant to purchase initially, at any time after the
date hereof until 5:30 p.m. New York time on ________________ (the "Expiration Date"), up to _________ fully paid and
non-assessable shares of common stock, $0.0001 par value ("Common Stock") of ARMADA WATER ASSETS, INC., a Nevada corporation
(the "Company”) at the initial exercise price, subject to adjustment in certain events (the "Exercise Price"),
of $1.50 per share of Common Stock, upon surrender of this Warrant Certificate and payment of the Exercise Price at an office or
agency of the Company, or by surrender of this Warrant Certificate in lieu of cash payment, but subject to the conditions set forth
herein and in the Warrant Agreement dated as of November 22, 2013 between the Company and Aegis Capital Corp. (the "Warrant
Agreement"). Payment of the Exercise Price shall be made by wire transfer of immediately available funds to the Company’s
accounts. No Warrant may be exercised after 5:30 p.m., New York time, on the Expiration Date, at which time all Warrants evidenced
hereby, unless exercised prior thereto, hereby shall thereafter be void.

 

The Holder is hereby
granted the right to purchase at any time prior to the Expiration Date, either: (i) to the extent there is no Public Offering that
occurs within one year from the date of grant hereof, ___________ shares of Common Stock (as subject to adjustment as provided
in Section 7 of the Warrant Agreement); or (ii) to the extent the Company completes a Public Offering within one year from the
date of grant hereof, that number of shares of Common Stock as are equal to $____________ divided by the IPO Exercise Price.
Except otherwise provided in Section 7 of the Warrant Agreement, the Warrants shall be exercisable to purchase Common Stock at
an initial exercise price per share of either: (i) $1.50, to the extent there is no Public Offering that occurs within one year
from the date of grant hereof; or (ii) to the extent the Company completes a Public Offering within one year from the date of grant
hereof, an exercise price per share equal to one hundred and fifty percent (150%) of the conversion price per share of Common Stock
pursuant to the Notes, i.e. 105% of the initial Public Offering price (the “IPO Exercise Price). The adjusted exercise price
shall be the price which shall result from time to time from any and all adjustments of the initial exercise price in accordance
with the provisions of Section 7 of the Warrant Agreement.

 

    	14

    	 

    

 

The Warrants evidenced by this Warrant Certificate
are part of a duly authorized issue of Warrants issued pursuant to the Warrant Agreement, which Warrant Agreement is hereby incorporated
by reference in and made a party of this instrument and is hereby referred to for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Company and the holders (the words "holders" or "holder"
meaning the registered holder or registered holders) of the Warrants.

 

The Warrant Agreement provides that upon
the occurrence of certain events the Exercise Price and the type and/or number of the Company's securities issuable thereupon may,
subject to certain conditions, be adjusted. In such event, the Company will, at the request of the holder, issue a new Warrant
Certificate evidencing the adjustment in the Exercise Price and the number and/or type of securities issuable upon the exercise
of the Warrants; provided, however, that the failure of the Company to issue such new Warrant Certificates shall not in any way
change, alter, or otherwise impair, the rights of the holder as set forth in the Warrant Agreement.

 

Upon due presentment for registration of
transfer of this Warrant Certificate and executed form of assignment as attached hereto at an office or agency of the Company,
a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall
be issued to the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided herein and in the
Warrant Agreement, without any charge except for any tax or other governmental charge imposed in connection with such transfer.

 

Upon the exercise of this Warrant for of
less than all of the shares of Common Stock set forth in paragraph one of this Certificate, the Company shall forthwith issue to
the holder hereof a new Warrant Certificate exercisable for the number of shares of Common Stock set forth in paragraph one of
this Certificate less the number of shares of Common Stock for which this Warrant was exercised.

 

The Company may deem and treat the registered
holder(s) hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership or other writing
hereon made by anyone), for the purpose of any exercise hereof, and of any distribution to the holder(s) hereof, and for all other
purposes, and the Company shall not be affected by any notice to the contrary.

 

All terms used in this Warrant Certificate
which are defined in the Warrant Agreement shall have the meanings assigned to them in the Warrant Agreement.

 

    	15

    	 

    

 

IN WITNESS WHEREOF, the Company has caused
this Warrant Certificate to be duly executed as of the ______ day of _______________, 2013.

 

	 	ARMADA WATER ASSETS, INC.
	 	 	 
	 	By:	 
	 	 	Maarten Propper, Chief Exective Officer

 

    	16

    	 

    

 

FORM OF
ELECTION TO PURCHASE

 

The undersigned hereby irrevocably elects
to exercise the right, represented by this Warrant Certificate, to purchase ____________ shares of Common Stock.

 

In accordance with the terms of Article
3 of the Warrant Agreement dated as of _____________________ by and between Armada Water Assets, Inc. and Aegis Capital Corp.,
the undersigned requests that a certificate for such securities be registered in the name of ____________________ whose address
is ___________________________ and that such Certificate be delivered to ______________________whose address is ________________________________.

 

	Dated:	 
	 	 
	 	Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate.)
	 	 
	 	 
	 	(Insert Social Security or Other Identifying Number of Holder)

 

    	17

    	 

    

 

FORM OF
ASSIGNMENT

 

(To be executed by the registered holder
if such holder desires to transfer the Warrant Certificate.)

 

FOR VALUE RECEIVED ________________________________
hereby sells, assigns and transfers unto____________________________________________________ _____________________________________________________________________________

 

(Please print name and address of transferee)

 

this Warrant Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint ______________________ Attorney, to transfer the within Warrant
Certificate on the books of the within-named Company, with full power of substitution.

 

	Dated:	 
	 	 
	 	Signature must conform in all respects to name of holder as specified on the face of the Warrant Certificate.)
	 	 
	 	 
	 	(Insert Social Security or Other Identifying Number of Holder)

 

    	18

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