Document:

Exhibit

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made this 21st day of January, 2016, by and between NEW ENTERPRISE STONE & LIME CO., INC., a Delaware corporation (the “Company”) and ROBERT J. SCHMIDT (the “Executive”).
WHEREAS, the Company and Executive are parties to that certain Employment Agreement, with an effective date of September 2, 2014 (the “Prior Agreement”); and
WHEREAS, the Company and Executive desire to amend and restate the Prior Agreement and replace it in its entirety with this Agreement in order to set forth the terms and conditions under which the Executive shall be employed by the Company after the date hereof.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained herein, and intending to be bound hereby, the parties agree as follows:
1.Duration of Agreement.  Subject to earlier termination in accordance with this Agreement, the Company will employ Executive, and Executive accepts such employment with the Company, on the terms set forth in this Agreement for the period beginning on March 1, 2015 and ending February 28, 2022 (the “Term”). 
2.Title; Duties.  Executive will serve as Executive Vice President & Chief Operating Officer reporting directly to the Company’s President & Chief Executive Officer (“CEO”).  Executive will devote his best efforts and substantially all of his business time and services to the Company and its affiliates to perform such duties as may be customarily incident to his position and as may reasonably be assigned to him from time to time.  Executive will not, in any capacity, engage in other business activities or perform services for any other individual, firm or corporation without the prior written consent of the Company; provided, however, that without such consent, Executive may engage in charitable, community service and personal investment activities, so long as such activities do not in any respect interfere with Executive’s performance of his duties and obligations hereunder.
3.Place of Performance.  Executive will perform his services hereunder at the principal executive offices of the Company; provided, however, that Executive may be required to travel from time to time for business purposes.
4.Compensation and Benefits.
4.1.Base Salary.  Effective March 1, 2015, Executive’s annual salary will be $450,000 (the “Base Salary”), paid in accordance with the Company’s payroll practices, as in effect from time to time.  The Company will pay Executive a lump sum amount equal to the difference between the salary paid to Executive between March 1, 2015 and the date of this Agreement within fifteen (15) business days of the date hereof.  The Base Salary will be reviewed on an annual basis by the Company’s CEO, in consultation with, and oversight from, the Company’s Board of Directors (the “Board”), and may be increased from time to time.  To the extent that the Board has authorized its Compensation and Management Development Committee to act on its behalf in any particular respect, references to the Board in that context will also be deemed to include such committee.
4.2.Employee Benefits.  Executive will be eligible to participate in the employee benefit plans, policies or arrangements maintained by the Company for its employees, subject to the terms and conditions of such plans, policies or arrangements.  However, this Agreement will not limit the Company’s ability to amend, modify or terminate any of its employee benefit plans, policies or arrangements at any time for any reason.
4.3.Annual Retainage Bonus.  On February 28, 2016 and each subsequent anniversary of such date occurring during the Term, and provided that Executive is employed by the Company on such dates, the Company will make a payment of $225,000 (the “Annual Retainage Bonus”) to the Executive.  In the event that the Company terminates Executive’s employment for Cause (as defined below), Executive shall, within 30 days following such termination, repay to the Company an amount equal to the aggregate net after-tax Annual Retainage Bonuses made pursuant to this Agreement.       
4.4.Annual Bonuses.  Executive will be eligible to participate in the Company’s Incentive Compensation Plan (“ICP”), as in effect from time to time, with the potential to receive annual bonuses therein, in accordance with the parameters and guidelines approved by the Board for the funding of the ICP, performance targets and payout policies and practices.
4.5.Paid Time Off.  Executive will be entitled to four weeks of paid vacation each fiscal year in accordance with the published policies of the Company.

4.6.Company Car.  The Company will provide Executive with an automobile and will reimburse Executive for related maintenance expenses in accordance with the Company’s automobile policy as in effect from time to time.
4.7.Reimbursement of Expenses.  Executive will be reimbursed by the Company for reasonable business expenses incurred by him in accordance with the Company’s customary expense reimbursement policies, as in effect from time to time.
4.8.Indemnification.  Executive will be indemnified for acts performed as an officer of the Company to the extent provided in the Company’s Bylaws and Articles of Incorporation, as in effect from time to time.
5.Termination.  Notwithstanding Section 1 of this Agreement, Executive’s employment with the Company may be terminated by the Company at any time for any reason.  Upon any cessation of his employment with the Company, Executive will be entitled only to the compensation and benefits described in this Section 5.  Upon any cessation of his employment with the Company, unless otherwise requested by the Board, Executive agrees to resign from all employee, officer and director positions with the Company and its affiliates.
5.1.Termination without Cause or for Good Reason.
5.1.1.Subject to Section 5.1.4, if Executive’s employment by the Company ceases during the Term due to a termination by the Company without Cause (as defined below), or a resignation by Executive for Good Reason (as defined below), Executive will be entitled to continued payment of his Base Salary for the remainder of the Term (the “Salary Continuation Benefit”) in accordance with the Company’s payroll policies, plus any Annual Retainage Bonus that would otherwise be made if Executive remained employed by the Company for the remainder of the Term (with such Annual Retainage Bonus to be made at the regularly scheduled time pursuant to Section 4.3.  For the avoidance of doubt, in the event of the Executive’s death following a termination pursuant to this Section 5.1.1, the Salary Continuation Benefit and Annual Retainage Bonuses payable pursuant to this Section 5.1.1 shall be paid to the Executive’s estate.
5.1.2.If a cessation of employment described in Section 5.1.1 occurs following a Change in Control (as defined below), Executive will be entitled to (as a “Salary Continuation Benefit”) continued payment of his Base Salary for the remainder of the Term in accordance with the Company’s payroll policies, plus any Annual Retainage Bonuses that would otherwise be made if Executive remained employed by the Company for the remainder of the Term (with such Annual Retainage Bonuses to be made at the regularly scheduled time pursuant to Section 4.3.
5.1.3.Except as otherwise provided in this Section 5.1 or pursuant to COBRA, all compensation and benefits will cease at the time of such cessation and the Company will have no further liability or obligation by reason of such cessation.  The payments described in Section 5.1.1 and 5.1.2 are in lieu of, and not in addition to, any other severance arrangement maintained by the Company.  The payments described in Section 5.1.1 and Section 5.1.2 are conditioned on Executive’s execution and delivery to the Company, within 21 days following his cessation of employment, a general release of claims against the Company and its affiliates in such form as the Company may reasonably require (the “Release”) and on such Release becoming irrevocable.  Subject to Section 5.3, the payments described in Section 5.1.1 or Section 5.1.2 will begin to be paid on the first regularly scheduled salaried employee payroll date that occurs at least 30 days following Executive’s cessation of employment.  The foregoing will not be construed to limit the Executive’s right to (i) payment of all accrued by unpaid Base Salary through the date of such termination and (ii) reimbursement for expenses incurred prior to the date of such termination reimbursable under Section 4.7 (to the extent not previously reimbursed, the “Accrued Obligations”).
5.1.4.Executive will have no duty to  mitigate the applicable Salary Continuation Benefit.  However, following a termination of his employment pursuant to Section 5.1.1 or 5.1.2, Executive will promptly report to the Company all compensation earned by him for the performance of personal services (whether as an employee, an independent contractor or otherwise) during the period in which Salary Continuation Benefits are payable (the “Severance Period”). The  Salary Continuation Benefits will be reduced by all such compensation earned by Executive during the Severance Period (regardless of when payable).
5.2.Other Terminations.  If Executive’s employment with the Company ceases for any reason other than as described in Section 5.1 (including but not limited to termination (i) by the Company for Cause, (ii) as a result of Executive’s death, (iii) as a result of Executive’s Disability (as defined below), (iv) by Executive without Good Reason or (v) after the Term), then the Company’s obligation to Executive will be limited solely to the Accrued Obligations.  All compensation and benefits will cease at the time of such cessation and, except as otherwise provided by COBRA, the Company will have no further liability or obligation by reason of such termination.
5.3.Compliance with Section 409A.

5.3.1.If the termination giving rise to the payments described in Section 5.1 is not a “Separation from Service” within the meaning of Treas. Reg. § 1.409A-1(h)(1) (or any successor provision), then the amounts otherwise payable pursuant to that section will instead be deferred without interest and will not be paid until Executive experiences a Separation from Service.  In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Internal Revenue Code (the “Code”) to payments due to Executive upon or following his Separation from Service, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive’s Separation from Service (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to Executive in a lump sum immediately following that six month period.  This paragraph should not be construed to prevent the application of Treas. Reg. §§ 1.409A-1(b)(4) or 1(b)(9)(iii)(or any successor provisions) to amounts payable hereunder.  For purposes of the application of Treas. Reg. § 1.409A-1(b)(4) (or any successor provision) to amounts payable hereunder, each payment in a series of payments will be deemed a separate payment.
5.3.2.Notwithstanding anything herein to the contrary, to the extent any expense, reimbursement or in-kind benefit provided to Executive constitutes a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar year, (ii) the reimbursements for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.
5.4.Definitions.  For purposes of this Agreement:
5.4.1.“Cause” means the occurrence of any of the following: (a) Executive’s willful refusal to perform his duties or to follow the lawful directives of his supervisor, which refusal continues for more than 15 days after written notice thereof; (b) willful misconduct or willful recklessness by Executive in the course of employment; (c) Executive’s conviction of, or the entry of a plea of guilty or no contest to, a felony or a crime that could reasonably be expected to have an adverse effect on the operations, condition or reputation of the Company or its affiliates; or (d) material breach by Executive of any material published policy of or fiduciary duty owed to the Company or its affiliates.
5.4.2.“Change in Control” means (a) the sale, transfer, assignment or other disposition (including by merger or consolidation) by stockholders of the Company, in one transaction or a series of related transactions, of more than 50% of the voting power represented by the then outstanding securities of the Company (other than to persons who are stockholders of the Company on the date that this Agreement is executed, or to affiliates of any such stockholders); (b) a sale of substantially all the assets of the Company (meaning 51% or more of the Company’s assets), or (c) a liquidation or dissolution of the Company.  Notwithstanding the foregoing, a transaction will not constitute a Change in Control if its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
5.4.3.“Disability” means a condition entitling Executive to benefits under any Company sponsored or funded disability plan, policy or arrangement or under the Social Security Act.
5.4.4.“Good Reason” means any of the following, without Executive’s prior consent: (a) a material, adverse change in Executive’s title, authority or duties (including the assignment of duties materially inconsistent with Executive’s position); (b) relocation of Executive’s principal worksite by more than 50 miles; or (c) a material breach by the Company of this Agreement.  However, none of the foregoing events or conditions will constitute Good Reason unless: (x) Executive provides the Company with written objection to the event or condition within 30 days following the occurrence thereof, (y) the Company does not reverse or otherwise cure the event or condition within 30 days of receiving that written objection, and (z) Executive resigns his employment within 30 days following the expiration of that cure period.

6.Proprietary Matter.  Except as expressly permitted or directed by the Company, Executive will not during his employment or at any time thereafter divulge, furnish, disclose or make accessible to anyone any trade secrets, designs, processes, formulae, software or computer programs, devices or methods (whether or not patented or patentable, copyrighted or copyrightable), customer, distributor or supplier lists, needs and requirements, research, plans or any other confidential or proprietary knowledge or information of the Company or its affiliates, in whatever form (“Proprietary Matter”).  Executive acknowledges that the Proprietary Matter constitutes a unique and valuable asset of the Company acquired at great time and expense by the Company, and that any disclosure or other use of the Proprietary Matter other than for the sole benefit of the Company would be wrongful and would cause irreparable harm to the Company.  The foregoing obligations of confidentiality, however, will not apply to any knowledge or information which is now published or which subsequently becomes publicly known, other than as a direct or indirect result of a breach of duty or of this Agreement by Executive.
7.Ventures.  If while employed by the Company Executive is engaged in or associated with the planning or implementing of any project, program or venture involving the Company or its affiliates and a third party or parties, all rights in the project, program or venture will belong to the Company or the applicable affiliate and will constitute a corporate opportunity belonging exclusively to the Company or the applicable affiliate.  Except as expressly approved in writing by the Company, Executive will not be entitled to any interest in such project, program or venture or to any commission, finder’s fee or other compensation in connection therewith, other than the compensation to be paid to Executive as provided in this Agreement.
8.Protective Provisions.
8.1.Competitive Activities.  During Executive’s employment and for the longer of (i) the period of time remaining in the Term and (ii) two years following termination of employment, Executive will not in the continental United States, directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder, officer, director, or in any other individual or representative capacity, engage or participate in any business engaged in (i) heavy construction, blacktop paving or other site preparation services, (ii) the manufacture, sale or distribution of construction materials, or (iii) the manufacture, sale, distribution or leasing of traffic control or work zone safety equipment (each, a “Competing Business”).  Notwithstanding the foregoing, Executive may hold up to 2% of the outstanding securities of any class of any publicly‐traded securities of any company.
8.2.Solicitation of Customers and Employees.  During his employment by the Company and for the longer of (i) the period of time remaining in the Term and (ii) two years following termination of employment, Executive will not, either directly or indirectly, on his own behalf or in the service or on behalf of others:
8.2.1.solicit, divert or appropriate, or attempt to solicit, divert or appropriate, to any Competing Business any customer or client of the Company or its affiliates, or any person or entity whose account has been solicited by the Company or its affiliates;
8.2.2.influence or attempt to influence any person to terminate or modify any agreement, arrangement or course of dealing with the Company or its affiliates; or
8.2.3.employ or engage any person employed or engaged by the Company in the performance of personal services (or who was so employed or engaged by the Company within the preceding 24 months).
8.3.Acknowledgements.  Executive acknowledges that the provisions of Section 8 (the “Restrictive Covenants”) are reasonable and necessary to protect the legitimate interests of the Company and its affiliates, that the duration and geographic scope of the Restrictive Covenants are reasonable given the nature of this Agreement and the position Executive will hold within the Company, and that the Company would not enter into this Agreement or otherwise employ Executive in the absence of these Restrictive Covenants.
8.4.Remedies and Enforcement Upon Breach.
8.4.1.Specific Enforcement. Executive acknowledges that any breach by him, willfully or otherwise, of the Restrictive Covenants will cause continuing and irreparable injury to the Company for which monetary damages would not be an adequate remedy.  Executive will not, in any action or proceeding to enforce any of the provisions of this Agreement, assert the claim or defense that such an adequate remedy at law exists.  In the event of any breach by Executive of the Restrictive Covenants, the Company will be entitled to injunctive or other similar equitable relief in any court, without any requirement that a bond or other security be posted, and this Agreement will not in any way limit remedies of law or in equity otherwise available to the Company.

8.4.2.Judicial Modification.  If any court determines that any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such provision, such court will have the power to modify such provision and, in its modified form, such provision will then be enforceable.
8.4.3.Accounting.  If Executive breaches any of the Restrictive Covenants, the Company will have the right and remedy to require Executive to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive as the result of such breach.  This right and remedy will be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity.
8.4.4.Enforceability.  If any court holds the Restrictive Covenants unenforceable by reason of their breadth or scope or otherwise, it is the intention of the parties hereto that such determination not bar or in any way affect the right of the Company to the relief provided above in the courts of any other jurisdiction within the geographic scope of the Restrictive Covenants.
8.4.5.Disclosure of Restrictive Covenants.  Executive agrees to disclose the existence and terms of the Restrictive Covenants to any person for whom Executive may perform services while the Restricted Covenants remain applicable.
8.4.6.Extension of Restricted Period.  If Executive breaches Section 8.1, the restrictions contained in that section will be extended for a period equal to the period that Executive was in breach.
8.4.7.Application Following Termination.  The Restrictive Covenants will continue to apply following the Term and any cessation of Executive’s employment without regard to the reason for that cessation and without regard to whether that cessation was initiated by Executive or the Company.
9.Miscellaneous.
9.1.Other Agreements.  Executive represents and warrants to the Company that there are no restrictions, agreements or understandings whatsoever to which he is a party that would prevent or make unlawful his execution of this Agreement, that would be inconsistent or in conflict with this Agreement or Executive’s obligations hereunder, or that would otherwise prevent, limit or impair the performance by Executive of his duties under this Agreement.
9.2.Successors and Assigns.  The Company may assign this Agreement to any successor to substantially all of its assets and business by means of liquidation, dissolution, transfer of assets or otherwise.  The duties of Executive hereunder are personal to Executive and may not be assigned by him.
9.3.Governing Law and Enforcement.  This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to the principles of conflicts of laws.  Any legal proceeding arising out of or relating to this Agreement will be instituted in a state or federal court in the Commonwealth of Pennsylvania, and Executive and the Company hereby consent to the personal and exclusive jurisdiction of such court(s) and hereby waive any objection(s) that they may have to personal jurisdiction, the laying of venue of any such proceeding and any claim or defense of inconvenient forum.
9.4.Waivers.  The waiver by either party of any right hereunder or of any breach by the other party will not be deemed a waiver of any other right hereunder or of any other breach by the other party.  No waiver will be deemed to have occurred unless set forth in a writing.  No waiver will constitute a continuing waiver unless specifically stated, and any waiver will operate only as to the specific term or condition waived.
9.5.Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law.  However, if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision, and this Agreement will be reformed, construed and enforced as though the invalid, illegal or unenforceable provision had never been herein contained.
9.6.Survival.  This Agreement will survive the cessation of Executive’s employment to the extent necessary to fulfill the purposes and intent of the Agreement, and Section 6, Section 7, Section 8 and Section 9 shall survive both the Term and the cessation of Executive’s employment.
9.7.Notices.  Notices permitted or required under this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier addressed, in the case of the Company, c/o its President at its principal executive office and, in the case of Executive, to the most recent address set forth in the personnel records of the Company.  Notwithstanding the foregoing, either party may change the address for notices or communications hereunder by providing written notice to the other in the manner specified in this paragraph.

9.8.Cooperation.  Executive will cooperate with the Company and its representatives in connection with any action, investigation or proceeding that relates to events occurring during his employment.  This provision shall survive any cessation of Executive’s employment.
9.9.Entire Agreement; Amendments.  This Agreement contains the entire agreement and understanding of the parties hereto relating to the subject matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and understandings of every nature relating to this subject matter and specifically supersedes the Prior Agreement.  For avoidance of doubt, in connection with the replacement of the Prior Agreement by this Agreement, Executive waives the remaining signing bonus payable pursuant to Section 4.2 of the Prior Agreement and it shall not be paid.  This Agreement may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.
9.10.Withholding.  All payments (or transfers of property) to Executive will be subject to tax withholding to the extent required by applicable law.
9.11.Section Headings.  The headings of sections and paragraphs of this Agreement are inserted for convenience only and will not in any way affect the meaning or construction of any provision of this Agreement.
9.12.No Presumption Against the Drafter.  Without regard to which party initially drafted this Agreement, it shall not be construed against any party and shall be construed and enforced as a mutually prepared agreement.
9.13.Counterparts; Facsimile.  This Agreement may be executed in multiple counterparts (including by facsimile signature), each of which will be deemed to be an original, and all of which together will constitute a single instrument.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and Executive has executed this Agreement, in each case on the date(s) indicated below.

NEW ENTERPRISE STONE & LIME CO., INC.

By: /s/ Paul I. Detwiler, III            
Name: Paul I. Detwiler, III
Title:  President & Chief Executive Officer

Date: 1/21/16        
            
EXECUTIVE

/s/ Robert J. Schmidt                
Robert J. Schmidt

Date: 1-21-16Alkaline Water Company Inc.: Exhibit 4.1 - Filed by newsfilecorp.com

Warrant No. 2016-♦-♦-♦ 

	THESE WARRANTS WILL EXPIRE AND BECOME NULL AND
      VOID 
	AT 5:00 P.M. (MOUNTAIN TIME) ON ♦,
      2018. 
	  
	SHARE PURCHASE WARRANTS TO PURCHASE 
	SHARES OF COMMON STOCK OF 
	THE ALKALINE WATER COMPANY INC.

THIS IS TO CERTIFY THAT ♦ (the “Holder”), of ♦, has the
right to purchase, upon and subject to the terms and conditions hereinafter
referred to, up to ♦ (♦) fully paid and non-assessable shares (the
“Shares”) of common stock in the capital of The Alkaline Water Company
Inc. (the “Company”) on or before 5:00 p.m. (Mountain time) on ♦, 2018
(the “Expiry Date”) at a price per Share of US$♦ (the “Exercise
Price”) on the terms and conditions attached hereto as Appendix A (the
“Terms and Conditions”). 

	 	1. 	
      ONE (1) WARRANT AND THE EXERCISE PRICE ARE REQUIRED TO
      PURCHASE ONE SHARE. THIS CERTIFICATE REPRESENTS ♦ (♦) WARRANTS.

	 	 	 
	 	2. 	
      These Warrants are issued subject to the Terms and
      Conditions, and the Warrant Holder may exercise the right to purchase
      Shares only in accordance with those Terms and Conditions.

	 	 	 
	 	3. 	
      Nothing contained herein or in the Terms and Conditions
      will confer any right upon the Holder hereof or any other person to
      subscribe for or purchase any Shares at any time subsequent to the Expiry
      Date, and from and after such time, this Warrant and all rights hereunder
      will be void and of no value.

IN WITNESS WHEREOF the Company has executed this Warrant
Certificate this ♦th day of ♦, 2016. 

THE ALKALINE WATER COMPANY INC. 

	Per: 	 
		Authorized Signatory
  

APPENDIX A 

TERMS AND CONDITIONS dated ♦, 2016, attached to the Warrants
issued by The Alkaline Water Company Inc. 

	1. 	
      INTERPRETATION

	 	 
	1.1 	
      Definitions

In these Terms and Conditions, unless there is something in the
subject matter or context inconsistent therewith: 

	 	(a) 	
      “Company” means The Alkaline Water Company Inc.,
      until a successor corporation will have become such as a result of
      consolidation, amalgamation or merger with or into any other corporation
      or corporations, or as a result of the conveyance or transfer of all or
      substantially all of the properties and estates of the Company as an
      entirety to any other corporation and thereafter “Company” will mean such
      successor corporation;

	 	 	 
	 	(b) 	
      “Company’s Auditors” means an independent firm of
      accountants duly appointed as auditors of the Company;

	 	 	 
	 	(c) 	
      “Director” means a director of the Company for the
      time being, and reference, without more, to action by the directors means
      action by the directors of the Company as a Board, or whenever duly
      empowered, action by an executive committee of the Board;

	 	 	 
	 	(d) 	
      “herein”, “hereby” and similar expressions
      refer to these Terms and Conditions as the same may be amended or modified
      from time to time; and the expression “Article” and “Section,” followed by
      a number refer to the specified Article or Section of these Terms and
      Conditions;

	 	 	 
	 	(e) 	
      “person” means an individual, corporation,
      partnership, trustee or any unincorporated organization and words
      importing persons have a similar meaning;

	 	 	 
	 	(f) 	
      “shares” means the common shares in the capital of
      the Company as constituted at the date hereof and any shares resulting
      from any subdivision or consolidation of the shares;

	 	 	 
	 	(g) 	
      “Warrant Holders” or “Holders” means the
      holders of the Warrants; and

	 	 	 
	 	(h) 	
      “Warrants” means the warrants of the Company
      issued and presently authorized and for the time being
  outstanding.

	1.2 	
      Gender

Words importing the singular number include the plural and vice
versa and words importing the masculine gender include the feminine and neuter
genders. 

	1.3 	
      Interpretation not affected by
  Headings

The division of these Terms and Conditions into Articles and
Sections, and the insertion of headings are for convenience of reference only
and will not affect the construction or interpretation thereof. 

	1.4 	
      Applicable Law

The Warrant and the terms hereof are governed by the laws of
the State of Nevada. The Holder, in its personal or corporate capacity and, if
applicable, on behalf of each beneficial purchaser for whom it is acting,
irrevocably attorns to the jurisdiction of the courts of the State of Arizona.

- 2 - 

	2. 	
      ISSUE OF WARRANTS

	 	 
	2.1 	
      Additional Warrants

The Company may at any time and from time to time issue
additional warrants or grant options or similar rights to purchase shares of its
capital stock. 

	2.2 	
      Warrants to Rank Pari
  Passu

All Warrants and additional warrants, options or similar rights
to purchase shares from time to time issued or granted by the Company, will rank
pari passu whatever may be the actual dates of issue or grant thereof, or
of the dates of the certificates by which they are evidenced. 

	2.3 	
      Issue in substitution for Lost
  Warrants

	 	(a) 	
      In case a Warrant becomes mutilated, lost, destroyed or
      stolen, the Company, at its sole discretion, may issue and deliver a new
      Warrant of like date and tenor as the one mutilated, lost, destroyed or
      stolen, in exchange for and in place of and upon cancellation of such
      mutilated Warrant, or in lieu of, and in substitution for such lost,
      destroyed or stolen Warrant and the substituted Warrant will be entitled
      to the benefit hereof and rank equally in accordance with its terms with
      all other Warrants issued or to be issued by the Company.

	 	 	 
	 	(b) 	
      The applicant for the issue of a new Warrant pursuant
      hereto will bear the cost of the issue thereof and in case of loss,
      destruction or theft furnish to the Company such evidence of ownership and
      of loss, destruction, or theft of the Warrant so lost, destroyed or stolen
      as will be satisfactory to the Company in its discretion and such
      applicant may also be required to furnish indemnity in amount and form
      satisfactory to the Company in its sole discretion, and will pay the
      reasonable charges of the Company in connection
  therewith.

	2.4 	
      Warrant Holder Not a
Shareholder

The holding of a Warrant will not constitute the Holder thereof
as a shareholder of the Company, nor entitle him to any right or interest in
respect thereof except as in the Warrant expressly provided. 

	3. 	
      NOTICE

	 	 
	3.1 	
      Notice to Warrant Holders

Any notice required or permitted to be given to the Holders
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Holder appearing on the Holder’s
Warrant or to such other address as any Holder may specify by notice in writing
to the Company, and any such notice will be deemed to have been given and
received by the Holder to whom it was addressed if mailed, on the third day
following the mailing thereof, if by facsimile or other electronic
communication, on successful transmission, or, if delivered, on delivery; but if
at the time or mailing or between the time of mailing and the third business day
thereafter there is a strike, lockout, or other labour disturbance affecting
postal service, then the notice will not be effectively given until actually
delivered. 

- 3 - 

	3.2 	
      Notice to the Company

Any notice required or permitted to be given to the Company
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Company set forth below or such
other address as the Company may specify by notice in writing to the Holder, and
any such notice will be deemed to have been given and received by the Company to
whom it was addressed if mailed, on the third day following the mailing thereof,
if by facsimile or other electronic communication, on successful transmission, or, if
delivered, on delivery; but if at the time or mailing or between the time of
mailing and the third business day thereafter there is a strike, lockout, or
other labour disturbance affecting postal service, then the notice will not be
effectively given until actually delivered: 

The Alkaline Water Company Inc.

7730 E. Greenway Road, Suite 203 
Scottsdale, Arizona 85260 
U.S.A.

Attention: President 
Fax No. (480) 272-7275 

	4. 	
      EXERCISE OF WARRANTS

	 	 
	4.1 	
      Method of Exercise of
Warrants

The right to purchase shares conferred by the Warrants may be
exercised by the Holder surrendering the Warrant Certificate representing same,
with a duly completed and executed subscription in the form attached hereto and
a bank draft or certified cheque payable to the Company for the purchase price
applicable at the time of surrender in respect of the shares subscribed for in
lawful money of the United States of America, to the Company at the address set
forth in Section 3.2 or from time to time specified by the Company pursuant to
Section 3.1. 

	4.2 	
      Effect of Exercise of
Warrants

	 	(a) 	
      Upon surrender and payment as aforesaid the shares so
      subscribed for will be deemed to have been issued and such person or
      persons will be deemed to have become the Holder or Holders of record of
      such shares on the date of such surrender and payment, and such shares
      will be issued at the subscription price in effect on the date of such
      surrender and payment.

	 	 	 
	 	(b) 	
      Within ten business days after surrender and payment as
      aforesaid, the Company will forthwith cause to be delivered to the person
      or persons in whose name or names the shares so subscribed for are to be
      issued as specified in such subscription or mailed to him or them at his
      or their respective addresses specified in such subscription, a
      certificate or certificates for the appropriate number of shares not
      exceeding those which the Warrant Holder is entitled to purchase pursuant
      to the Warrant surrendered.

	4.3 	
      Subscription for Less Than
  Entitlement

The Holder of any Warrant may subscribe for and purchase a
number of shares less than the number which he is entitled to purchase pursuant
to the surrendered Warrant. In the event of any purchase of a number of shares
less than the number which can be purchased pursuant to a Warrant, the Holder
thereof upon exercise thereof will in addition be entitled to receive a new
Warrant in respect of the balance of the shares which he was entitled to
purchase pursuant to the surrendered Warrant and which were not then purchased.

	4.4 	
      Warrants for Fractions of
Shares

To the extent that the Holder of any Warrant is entitled to
receive on the exercise or partial exercise thereof a fraction of a share, such
right may be exercised in respect of such fraction only in combination with
another Warrant or other Warrants which in the aggregate entitle the Holder to
receive a whole number of such shares. 

	4.5 	
      Expiration of Warrants

After the expiration of the period within which a Warrant is
exercisable, all rights thereunder will wholly cease and terminate and such
Warrant will be void and of no effect. 

- 4 - 

	4.6 	
      Time of Essence

Time will be of the essence hereof. 

	4.7 	
      Subscription Price

Each Warrant is exercisable at a price per share (the
“Exercise Price”) of US$♦. One (1) Warrant and the Exercise Price are
required to subscribe for each share during the term of the Warrants. 

	4.8 	
      Adjustment of Exercise
Price

	 	(a) 	
      The Exercise Price and the number of shares deliverable
      upon the exercise of the Warrants will be subject to adjustment in the
      event and in the manner following:

	 	(i) 	
      if and whenever the shares at any time outstanding are
      subdivided into a greater or consolidated into a lesser number of shares
      the Exercise Price will be decreased or increased proportionately as the
      case may be; upon any such subdivision or consolidation the number of
      shares deliverable upon the exercise of the Warrants will be increased or
      decreased proportionately as the case may be;

	 	 	 
	 	(ii) 	
      in case of any capital reorganization or of any
      reclassification of the capital of the Company or in the case of the
      consolidation, merger or amalgamation of the Company with or into any
      other Company (hereinafter collectively referred to as a
      “Reorganization”), each Warrant will after such Reorganization
      confer the right to purchase the number of shares or other securities of
      the Company (or of the Company’s resulting from such Reorganization) which
      the Warrant Holder would have been entitled to upon Reorganization if the
      Warrant Holder had been a shareholder at the time of such
      Reorganization.

	 	 	 
	 		
      In any such case, if necessary, appropriate adjustments
      will be made in the application of the provisions of this Section 4.8
      relating to the rights and interest thereafter of the Holders of the
      Warrants so that the provisions of this Section 4.8 will be made
      applicable as nearly as reasonably possible to any shares or other
      securities deliverable after the Reorganization on the exercise of the
      Warrants.

	 	 	 
	 		
      The subdivision or consolidation of shares at any time
      outstanding into a greater or lesser number of shares (whether with or
      without par value) will not be deemed to be a Reorganization for the
      purposes of this clause 4.8(a)(ii).

	 	(b) 	
      The adjustments provided for in this Section 4.8 are
      cumulative and will become effective immediately after the record date or,
      if no record date is fixed, the effective date of the event which results
      in such adjustments.

	4.9 	
      Determination of
Adjustments

If any questions will at any time arise with respect to the
Exercise Price or any adjustment provided for in Section 4.8, such questions
will be conclusively determined by the Company’s Auditors, or, if they decline
to so act any other firm of certified public accountants in the United States of
America that the Company may designate and who will have access to all
appropriate records and such determination will be binding upon the Company and
the Holders of the Warrants. 

	4.10 	
      Certain Exercise
Restrictions

	 	(a) 	
      Notwithstanding anything to the contrary set forth
      herein, at no time may the Holder of any Warrant exercise the Warrants if
      the number of shares to be issued pursuant to such
  exercise would exceed, when aggregated with all other shares owned by
such Holder at such time, the number of shares which would result in such Holder
beneficially owning (as determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and the rules thereunder) in excess
of 4.99% of all of the shares outstanding at such time; provided, however, that
upon the Holder providing the Company with sixty-one (61) days’ notice (pursuant
to Section 3.2 hereof) that such Holder would like to waive this Section 4.10(a)
with regard to any or all shares issuable upon exercise of the Warrants, this
Section 4.10(a) will be of no force or effect with regard to all or a portion of
the Warrants referenced in such notice; provided, further, that this Section
4.10(a) shall be of no further force or effect during the sixty-one (61) days
immediately preceding the expiration of the term of the Warrants.

- 5 - 

	 	(b) 	
      Notwithstanding anything to the contrary set forth
      herein, at no time may the Holder of any Warrant exercise the Warrants if
      the number of shares to be issued pursuant to such exercise would exceed,
      when aggregated with all other shares owned by such Holder at such time,
      the number of shares which would result in such Holder beneficially owning
      (as determined in accordance with Section 13(d) of the Securities Exchange
      Act of 1934, as amended, and the rules thereunder) in excess of 9.99% of
      all of the shares outstanding at such time; provided, however, that upon
      the Holder providing the Company with sixty-one (61) days’ notice
      (pursuant to Section 3.2 hereof) that such Holder would like to waive this
      Section 4.10(b) with regard to any or all shares issuable upon exercise of
      the Warrants, this Section 4.10(b) will be of no force or effect with
      regard to all or a portion of the Warrants referenced in such notice;
      provided, further, that this Section 4.10(b) shall be of no further force
      or effect during the sixty-one (61) days immediately preceding the
      expiration of the term of the Warrants.

	5. 	
      WAIVER OF CERTAIN RIGHTS

	 	 
	5.1 	
      Immunity of Shareholders,
etc.

The Warrant Holder, as part of the consideration for the issue
of the Warrants, waives and will not have any right, cause of action or remedy
now or hereafter existing in any jurisdiction against any past, present or
future incorporator, shareholder, Director or officer (as such) of the Company
for the issue of shares pursuant to any Warrant or on any covenant, agreement,
representation or warranty by the Company herein contained or in the Warrant.

	6. 	
      MODIFICATION OF TERMS, ETC.

	 	 
	6.1 	
      Modification of Terms and Conditions for Certain
      Purposes

From time to time the Company may, subject to the provisions of
these presents, modify the Terms and Conditions hereof, for the purpose of
correction or rectification of any ambiguities, defective provisions, errors or
omissions herein. 

- 6 - 

FORM OF SUBSCRIPTION 

	TO: 	The Alkaline Water Company Inc. 
	  	7730 E. Greenway Road, Suite 203 
	 	 Scottsdale, Arizona 85260 
	  	U.S.A. 
	  	  
	  	Attention: President 
	 	Fax No. (480)
272-7275  

The undersigned Holder of the within Warrants hereby subscribes
for ____________ shares (the “Shares”) of common stock of The Alkaline
Water Company Inc. (the “Company”) pursuant to the within Warrants at
US$♦ per Share on the terms specified in the said Warrants. This subscription is
accompanied by a certified cheque or bank draft payable to or to the order of
the Company for the whole amount of the purchase price of the Shares. 

The undersigned represents that, at the time of the exercise of
these Warrants, all of the representations and warranties contained in the
subscription agreement(s) between the Company and the undersigned pursuant to
which these Warrants were issued are true and accurate. 

The undersigned hereby directs that the Shares be registered as
follows: 

	NAME(S) IN FULL 	 	ADDRESS(ES) 	 	NUMBER OF SHARES 
	  	 	 	 	  
	 	 	 	 	 
	 	 	 	 	 
	 	 	TOTAL:	 	 

(Please print full name in which share
      certificates are to be issued, stating whether Mr., Mrs. or Miss is
      applicable).

DATED
      this                               
      day
      of                                          
      , ______ . 

In the presence of: 

	Signature of Witness
    	 	Signature
      of Warrant Holder 

Please print below your name and address in full. 

	Name (Mr./Mrs./Miss) 	 	 
	 	 	 
	Address 	 	 
	 	 	 
	 	 	 

LEGENDS 

If and as applicable, the certificates representing the
Shares acquired on the exercise of the Warrants will bear a legend substantially
in the following form: 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND
HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. 

- 7 - 

INSTRUCTIONS FOR SUBSCRIPTION 

The signature to the subscription must correspond in every
particular with the name written upon the face of the Warrant without alteration
or enlargement or any change whatever. If there is more than one subscriber, all
must sign. In the case of persons signing by agent or attorney or by personal
representative(s), the authority of such agent, attorney or representative(s) to
sign must be proven to the satisfaction of the Company. If the Warrant
certificate and the form of subscription are being forwarded by mail, registered
mail must be employed.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]