Document:

Agmt. Terminating Warrants and Registration Rights

    EXHIBIT
      10.1

    
 

    AGREEMENT
      TERMINATING WARRANTS

    AND
      REGISTRATION RIGHTS

    

    THIS
      AGREEMENT TERMINATING WARRANTS AND REGISTRATION RIGHTS (the “Agreement”)
      is
      entered into this 9th day of May, 2007, by and between EAU TECHNOLOGIES, INC.,
      a
      Delaware corporation (“Company”),
      WATER
      SCIENCE, LLC, a Florida limited liability company (“Water
      Science”)
      and
      PETER ULLRICH, a resident of Florida and the sole member of Water Science
      (“Ullrich”).

    

    Background

    

    WHEREAS,
      the Company issued to Water Science the following warrants to purchase common
      stock issued by the Company: (i) a warrant, dated September 16, 2005, to
      purchase 2 million shares for a purchase price of $2.76 per share, such warrant
      expiring on September 16, 2008; and (ii) a warrant, dated May 1, 2006, to
      purchase 6.4 million shares for a purchase price of $2.76 per share, such
      warrant expiring on May 1, 2009 (collectively, the “Original
      Warrants”);

     

    WHEREAS,
      Water Science and the Company executed two registration rights agreements,
      one
      dated September 16, 2005 and the other May 1, 2006 (collectively, the
“Original
      Registration Rights Agreements”)
      pursuant to which the Company agreed, among other things, to file a registration
      statement with the Securities Exchange Commission for the shares of common
      stock
      of the Company to be issued to Water Science upon Water Science’s exercise of
      the Original Warrants; and

     

    WHEREAS,
      the Company and Water Science desire to execute this Agreement to terminate
      the
      Original Warrants and the Original Registration Rights Agreements, among other
      items.

    

    NOW,
      THEREFORE, in consideration of the mutual obligations and agreements set forth
      herein, the receipt, adequacy and sufficiency of which are hereby acknowledged,
      Water Science and the Company hereby covenant and agree as follows:

    

    1.  Termination.
      The
      Original Warrants and the Original Registration Rights Agreements are hereby
      unconditionally and irrevocably terminated, effective on the date hereof, and
      neither such warrants or agreements are of any force or effect.

     

    2.  Issuance
      of Replacement Warrants and Replacement Registration Rights
      Agreement.
      Simultaneously with the execution of this Agreement:

     

    (a)  The
      Company has issued to Water Science, and Water Science has accepted, the
      following warrants, both of which expire, if unexercised, on the third
      anniversary of the date hereof (the “Replacement
      Warrants”):

     

    
      	i.  	
              A
                warrant to purchase 5,169,231 shares of EAU common stock for an exercise
                price of $1.30 per share (“Exercise
                Price”);
                and

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	ii.  	
              A
                warrant to purchase 3,230,769 shares of EAU common stock for the
                Exercise
                Price, as evidenced by the Warrant and Put Agreement of even date
                herewith
                (the “Put
                Warrant”).

            

    

     

    (b)  The
      Company and Water Science have executed and delivered that certain Registration
      Rights Agreement which covers the Replacement Warrants, among other things,
      and
      supersedes the Original Registration Rights Agreements (the “Replacement
      Registration Rights Agreement”).

     

    3.  Representations
      and Warranties.
      To
      induce the Company to enter into this Agreement, Water Science hereby makes
      the
      following representations and warranties to the Company (each of which is
      material to, and relied upon by, the Company):

     

    (a)  Due
      Organization.
      Water
      Science is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of the State of Florida and has all necessary
      corporate power and authority to own, operate or lease the properties and assets
      now owned, operated or leased by it and to carry on its business.

    

    (b)  Power
      & Authority; Due Authorization & Execution;
      Enforceability.
      Water
      Science has all necessary company power and authority to enter into this
      Agreement and each certificate, agreement, document and instrument to be
      executed and delivered by Water Science in connection with the transactions
      contemplated by this Agreement (collectively, the “Water
      Science Ancillary Documents”)
      and to
      carry out its obligations hereunder and thereunder and to consummate the
      transactions contemplated hereby and thereby. 

    

    This
      Agreement and the Water Science Ancillary Documents have been duly authorized,
      executed and delivered by Water Science. This Agreement and Water Science
      Ancillary Documents each constitute the legal, valid and binding obligation
      of
      Water Science and, assuming due authorization, execution and delivery by the
      Company, will be enforceable against Water Science in accordance with its terms,
      subject to the effect, if any, of bankruptcy, insolvency, reorganization,
      moratorium and other similar laws affecting the rights of creditors generally
      and the effect, if any, of general principles of equity.

    

    (c)  No
      Conflicts.
      The
      execution and delivery by Water Science of this Agreement and Water Science
      Ancillary Documents and the consummation by Water Science of the transactions
      contemplated hereby and thereby do not and will not:

     

    
      	 	
              (i)
                

            	
              violate
                any
                law, rule or regulation of, or any order, writ, judgment, injunction,
                decree, stipulation, determination or award entered by or with, any
                foreign, federal, state or local governmental authority, body, agency,
                official, regulatory or administrative agency, body or official,
                or
                governmental commission, court, tribunal, body, or agency (singularly
                and
                collectively, the “Governmental
                Authority”)
                applicable to Water Science;

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (ii)

            	
              require
                the consent, approval or action of, or any filing or notice to, any
                corporation, firm, person or other entity or any Governmental Authority;
                or

            

    

     

    
      	 	
              (iii)
                

            	
              violate
                the terms of any instrument, document or agreement to which Water
                Science
                is a party or bound.

            

    

    

    (d)  Title
      to the Original Warrants.
      Water
      Science has good, valid and marketable title to all of the Original Warrants,
      free and clear of all Encumbrances (defined below). Water Science has not
      (directly or indirectly) exercised, attempted to exercise, or transferred any
      of
      the Original Warrants.

    

    As
      used
      in this Agreement, “Encumbrances”
shall
      mean any security interest, pledge, lien (whether or not filed or recorded,
      whether or not inchoate and whether or not perfected), charge, adverse claim
      of
      ownership or any other encumbrance of any kind.

     

    4.  Representations
      and Warranties.
      To
      induce Water Science to enter into this Agreement, the Company hereby makes
      the
      following representations and warranties to Water Science (each of which is
      material to, and relied upon by Water Science):

    

    (a)  Due
      Organization.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and has all necessary corporate power
      and authority to own, operate or lease the properties and assets now owned,
      operated or leased by the Company and to carry on its business.

    

    (b)  Power
      & Authority; Due Authorization & Execution;
      Enforceability.
      The
      Company has all necessary company power and authority to enter into this
      Agreement and each other certificate, agreement, document and instrument to
      be
      executed and delivered by the Company in connection with the transactions
      contemplated by this Agreement (including without limitation, the Put Warrant)
      (collectively, the “Company
      Ancillary Documents”)
      and to
      carry out its obligations hereunder and thereunder and to consummate the
      transactions contemplated hereby and thereby. 

    

    This
      Agreement and the Company Ancillary Documents have been duly authorized,
      executed and delivered by the Company. This Agreement and The Company Ancillary
      Documents each constitute the legal, valid and binding obligation of the Company
      and, assuming due authorization, execution and delivery by Water Science, will
      be enforceable against the Company in accordance with its terms, subject to
      the
      effect, if any, of bankruptcy, insolvency, reorganization, moratorium and other
      similar laws affecting the rights of creditors generally and the effect, if
      any,
      of general principles of equity.

    

    (c)  No
      Conflicts.
      The
      execution and delivery by the Company of this Agreement and the Company
      Ancillary Documents and the consummation by the Company of the transactions
      contemplated hereby and thereby do not and will not:

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)
                

            	
              violate
                any
                law, rule or regulation of, or any order, writ, judgment, injunction,
                decree, stipulation, determination or award entered by or with, any
                Governmental Authority
                applicable to the Company;

            

    

     

    
      	 	
              (ii)

            	
              require
                the consent, approval or action of, or any filing or notice to, any
                corporation, firm, person or other entity or any Governmental Authority;
                or

            

    

     

    
      	 	
              (iii)
                

            	
              violate
                the terms of any instrument, document or agreement to which the Company
                is
                a party or bound.

            

    

    

    5.  Release.
      Water
      Science hereby covenants not to sue, and releases and forever discharges, the
      Company and its directors, officers, agents, employees, subsidiaries,
      affiliates, successors, and assigns from any and all claims, demands, actions,
      causes of action, liabilities, losses, costs and damages of every kind or nature
      whatsoever, whether known or unknown, whether or not previously asserted, even
      though unexpected, from the beginning of time, (A) which arise out of actions
      or
      omissions occurring on or prior to the date hereof or which arise out of
      conditions existing on or prior to the date hereof, and (B) which are related
      to
      the Original Warrants and/or the Original Registration Rights Agreement.

    

    This
      release is intended to be a general release relating only to the Original
      Warrants and the Original Registration Rights Agreements, including, without
      limitation, any penalties pursuant to Section 1(b) of both such registration
      rights agreements. Notwithstanding anything herein to the Agreement to the
      contrary, nothing in this release shall release the Company for any claim for
      a
      breach of this Agreement. 

    

    Water
      Science hereby represents and warrants to the Company that Water Sceince has
      not
      (directly or indirectly) conveyed, sold, transferred or assigned (expressly,
      by
      operation of law or otherwise) to any other person or entity any of the claims
      or actions it is releasing in this Section 5.

    

    This
      release shall survive without limitation.

    

    6.  Agreement
      Regarding Put Right.
      Water
      Science and Ullrich hereby each agree that neither shall take any action
      (directly or indirectly) as a shareholder of the Company to cause the Company
      (including, without limitation, its board of directors) to terminate the put
      rights of the Company set forth in the Put Warrant, or to cause the Company
      (including, without limitation, its board of directors) to waive or release
      such
      rights in any manner. Water Science and Ullrich hereby each agree to execute
      and
      deliver any additional documents or instruments reasonably requested by the
      Company to acknowledge their agreement to the foregoing or to further effectuate
      the foregoing, including, without limitation, executing a proxy or a voting
      agreement.

    

    7.  Agreement
      Regarding Convertible Note.
      Water
      Science and Ullrich hereby each acknowledge and agree that, notwithstanding
      Sections 9(a)(iv) and 9(a)(v) of that certain Senior Secured Convertible
      Promissory Note (“Convertible
      Note”),
      dated
      as of September 16, 2005, in the principal amount of $3,000,000 and payable
      to
      the order of Water Science, (a) the issuance of neither the Original Warrants
      nor the Replacement Warrants shall cause an adjustment to the Conversion Price
      (as defined in the Convertible Note), and (b) as of the date hereof, the
      Conversion Price of the Convertible Note shall be deemed to be
      $3.00.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    8.  Acknowledgments:
      By
      executing this Agreement, Water Science and Ullrich each certify to the Company
      that:

    

    
      	 	
              (i)

            	
              it/he
                has carefully read and fully understands the terms and provisions
                of this
                Agreement:

            

    

    

    
      	 	
              (ii)

            	
              it/he
                has been encouraged to consult with an attorney before
                signing this Agreement; 

            

    

    

    
      	 	
              (iii)

            	
              it/he
                agrees to the terms of this Agreement knowingly, voluntarily, without
                intimidation, coercion or pressure, as its/his own free act and deed,
                and
                with full understanding that it/he is waiving and relinquishing certain
                rights, claims, remedies, damages, and/or causes of action as stated
                in
                this Agreement; and

            

    

    

    
      	 	
              (iv)

            	
              that
                no promise or inducement has been offered or made except as set forth
                or
                referenced herein.

            

    

    

    9.  General
      Provisions.

    

    (a) Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding of Water Science,
      Ullrich and the Company with respect to the subject matter of this Agreement
      and
      supersedes and terminates all other prior commitments, arrangements or
      understandings, whether oral or written, between Water Science, Ullrich and
      the
      Company with respect to the subject matter of this Agreement.

    

    (b) Modification.
      This
      Agreement may not be modified or amended except by an instrument in writing
      executed by Water Science and the Company.

    

    (c) Binding.
      This
      Agreement shall be binding upon the parties hereto and their respective
      successors and assigns.

    

    (d) Counterparts.
      This
      Agreement may be executed with multiple signature pages in one or more
      counterparts, and fully executed counterparts shall be considered one and the
      same instrument. 

    

    (e) Governing
      Law.
      This
      Agreement shall be governed and construed in accordance with the laws of the
      State of Georgia.

    

    (f) Severability.
      If any
      provision of this Agreement or any of the provisions of the exhibits attached
      hereto is prohibited by or invalid under applicable law, such provision will
      be
      ineffective to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provision or the remaining provisions of
      this
      Agreement or the exhibits attached hereto.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    (g) Further
      Assurances.
      Water
      Science and Ullrich hereby agree to execute all such further and additional
      documents as shall be reasonably necessary to carry out the provision of this
      Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned have executed and delivered this Agreement
      as
      of the date first set forth above.

    

    
      	
              EAU
                Technologies, Inc.

            	
              Water
                Science,
                LLC

            
	 	 
	
              By 
                /s/ Wade R. Bradley

            	
              By: 
                /s/ Peter Ullrich

            
	
              Wade
                R. Bradley 

            	
              Peter
                Ullirch, Manager

            
	
              Chief
                Executive Officer

            	 

    

    

    

    
      	
              Ullrich

            
	 
	
              /s/
                Peter Ullrich

            
	
              Peter
                Ullrich

            

    

    

    
      
        
        

      

      
        7Unassociated Document

    EXHIBIT
      10.2

     

     

    THIS
      SECURITY HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933
      (THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED OR SOLD
      UNLESS REGISTERED AND QUALIFIED PURSUANT TO THE APPLICABLE PROVISIONS OF FEDERAL
      AND STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR
      QUALIFICATION APPLIES. THEREFORE, NO SALE OR TRANSFER OF THIS SECURITY SHALL
      BE
      MADE, NO ATTEMPTED SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL NOT
      BE
      REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH TRANSACTION
      HAS BEEN DULY REGISTERED UNDER THE ACT AND QUALIFIED OR APPROVED UNDER
      APPROPRIATE STATE SECURITIES LAWS, OR (B) THE ISSUER HAS FIRST RECEIVED AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH REGISTRATION,
      QUALIFICATION OR APPROVAL IS NOT REQUIRED.

    

     

    WARRANT

    

    For
      the
      Purchase of Shares of Common Stock of

    

    EAU
      TECHNOLOGIES, INC.

    

    Void
      After 5 P.M. May 9, 2010

    

                        Date: May
      9,
      2007

    

    Warrant
      to Purchase 5,169,231 Shares of Common Stock

    

    THIS
      IS TO CERTIFY,
      that,
      for value received, Water Science, LLC, a Florida limited liability company
      or
      registered assigns (the “Holder”), is entitled, subject to the terms and
      conditions hereinafter set forth, on or after the date hereof, and at any time
      prior to 5 P.M., Eastern Standard Time (“EST”), on May 9, 2010 but not
      thereafter, to purchase such number of shares of Common Stock, par value $0.000l
      (“Common Stock” or the “Shares”), of EAU Technologies, Inc. (the “Company”),
      from the Company as set forth above and upon payment to the Company of an amount
      per Share of $1.30 (the “Purchase Price”), if and to the extent this Warrant is
      exercised, in whole or in part, during the period this Warrant remains in force,
      subject in all cases to adjustment as provided in Section 2 hereof, and to
      receive a certificate or certificates representing the Shares so purchased,
      upon
      presentation and surrender to the Company of this Warrant, with the form of
      Subscription Agreement attached hereto, including changes thereto reasonably
      requested by the Company, duly executed and accompanied by payment of the
      Purchase Price of each Share.

    

    SECTION
      1

     

    Terms
      of this Warrant

    

    1.1 Time
      of
      Exercise. This Warrant may be exercised at any time and from time to time after
      9:00 A.M. Eastern Time, as the case may be, on the date hereof (the “Exercise
      Commencement Date”), but no later than 5:00 P.M., Eastern Time, May 9, 2010 (the
“Expiration Time”) at which time this Warrant shall become void and all rights
      hereunder shall cease.

      

    1.2 Manner
      of
      Exercise.

     

    1.2.1 The
      Holder may exercise this Warrant, in whole or in part, upon surrender of this
      Warrant, with the form of Subscription Agreement attached hereto duly executed,
      to the Company at its corporate office in Kennesaw, Georgia, and upon payment
      to
      the Company of the full Purchase Price for each Share to be purchased in lawful
      money of the United States, or by certified or cashier’s check, or wired funds,
      and upon compliance with and subject to the conditions set forth
      herein.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2.2 Upon
      receipt of this Warrant with the form of Subscription Agreement duly executed
      and accompanied by payment of the aggregate Purchase Price for the Shares for
      which this Warrant is then being exercised, the Company shall cause to be issued
      certificates for the total number of whole Shares for which this Warrant is
      being exercised in such denominations as are required for delivery to the
      Holder, and the Company shall thereupon deliver such certificates to the Holder
      or its nominee.

    

    1.2.3 In
      case
      the Holder shall exercise this Warrant with respect to less than all of the
      Shares that may be purchased under this Warrant, the Company shall execute
      a new
      Warrant for the balance of the Shares that may be purchased upon exercise of
      this Warrant and deliver such new Warrant to the Holder.

    

    1.2.4 The
      Company covenants and agrees that it will pay when due and payable any and
      all
      taxes which may be payable in respect of the issue of this Warrant, or the
      issue
      of any Shares upon the exercise of this Warrant. The Company shall not, however,
      be required to pay any tax which may be payable in respect of any transfer
      involved in the issuance or delivery of this Warrant or of the Shares in a
      name
      other than that of the Holder at the time of surrender, and until the payment
      of
      such tax the Company shall not be required to issue such Shares.

    

    1.3 [INTENTIONALLY
      OMITTED].

    

    1.4 [INTENTIONALLY
      OMITTED].

     

    1.5 Exchange
      of Warrant. This Warrant may be divided into, combined with or exchanged for
      another Warrant or Warrants of like tenor to purchase a like aggregate number
      of
      Shares. If the Holder desires to divide, combine or exchange this Warrant,
      he
      shall make such request in writing delivered to the Company at its corporate
      office and shall surrender this Warrant and any other Warrants to be so divided,
      combined or exchanged. The Company shall execute and deliver to the person
      entitled thereto a Warrant or Warrants, as the case may be, as so requested.
      The
      Company shall not be required to effect any division, combination or exchange
      which will result in the issuance of a Warrant entitling the Holder to purchase
      upon exercise a fraction of a Share. The Company may require the Holder to
      pay a
      sum sufficient to cover any tax or governmental charge that may be imposed
      in
      connection with any division, combination or exchange of Warrants.

    

    1.6 Holder
      as
      Owner. Prior to surrender of this Warrant in accordance with Section for
      registration of assignment, the Company may deem and treat the Holder as the
      absolute owner of this Warrant (notwithstanding any notation of ownership or
      other writing hereon) for the purpose of any exercise hereof and for all other
      purposes, and the Company shall not be affected by any notice to the
      contrary.

    

    1.7 Method
      of
      Assignment. Any assignment or transfer of any portion or all of this Warrant
      shall be made by surrender of this Warrant to the Company at its principal
      office with the form of assignment attached hereto duly executed and accompanied
      by: (i) funds sufficient to pay any transfer tax, and (ii) an opinion of counsel
      reasonably satisfactory to the Company to the effect that the assignment or
      transfer has been made in compliance with applicable federal and state
      securities laws. In such event, the Company shall, without charge, execute
      and
      deliver a new Warrant in the name of the assignee named in such instrument
      of
      assignment and this Warrant shall promptly be canceled.

    

    1.8 Rights
      of
      Holder. Nothing contained in this Warrant shall be construed as conferring
      upon
      the Holder the right to vote, consent or receive notice as a shareholder in
      respect of any meetings of shareholders for the election of directors or any
      other matter, or as having any rights whatsoever as a shareholder of the
      Company.

    

    1.9 Lost
      Certificates. If this Warrant is lost, stolen, mutilated or destroyed, the
      Company shall, on such reasonable terms as to indemnity or otherwise as it
      may
      impose (which shall, in the case of a mutilated Warrant, include the surrender
      thereof), issue a new Warrant of like denomination and tenor as, and in
      substitution for, this Warrant, which shall thereupon become void. Any such
      new
      Warrant shall constitute an additional contractual obligation of the Company,
      whether or not the Warrant so lost, stolen, destroyed or mutilated shall be
      at
      any time enforceable by anyone.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    1.9.1 At
      all
      times the Company shall reserve and keep available for the exercise of this
      Warrant such number of authorized shares of Common Stock as are sufficient
      to
      permit the exercise in full of this Warrant.

    

    1.9.2 The
      Company covenants that all Shares when issued upon the exercise of this Warrant
      will be validly issued, fully paid, nonassessable and free of preemptive
      rights.

     

    

    SECTION
      2

     

    Adjustment
      of Purchase Price and Number of Shares Purchasable upon
      Exercise

    

    2.1 Stock
      Splits. If the Company at any time or from time to time after the issuance
      date
      of this Warrant effects a subdivision of the outstanding Common Stock, the
      Purchase Price then in effect immediately before that subdivision shall be
      proportionately decreased, and conversely, if the Company at any time or from
      time to time after the issuance date of this Warrant combines the outstanding
      shares of Common Stock, the Purchase Price then in effect immediately before
      the
      combination shall be proportionately increased. Any adjustment under this
      subsection 2.1 shall become effective at the close of business on the date
      the
      subdivision or combination becomes effective.

    

    2.2 Dividends
      and Distributions. In the event the Company at any time, or from time to time
      after the issuance date of this Warrant makes, or fixes a record date for the
      determination of holders of Common Stock entitled to receive, a dividend or
      other distribution payable in additional shares of Common Stock, then and in
      each such event the Purchase Price then in effect shall be decreased as of
      the
      time of such issuance or, in the event such a record date is fixed, as of the
      close of business on such record date, by multiplying the Purchase Price then
      in
      effect by a fraction (i) the numerator of which is the total number of shares
      of
      Common Stock issued and outstanding immediately prior to the time of such
      issuance or the close of business on such record date, and (ii) the denominator
      of which shall be the total number of shares of Common Stock issued and
      outstanding immediately prior to the time of such issuance or the close of
      business on such record date plus the number of shares of Common Stock issuable
      in payment of such dividend or distribution; provided, however, that if such
      record date is fixed and such dividend is not fully paid or if such distribution
      is not fully made on the date fixed therefor, the Purchase Price shall be
      recomputed accordingly as of the close of business on such record date and
      thereafter the Purchase Price shall be adjusted pursuant to this subsection
      2.2
      as of the time of actual payment of such dividends or
      distributions.

    

    2.3 Recapitalization
      or Reclassification. If the Shares issuable upon the exercise of the Warrant
      are
      changed into the same or a different number of shares of any class or classes
      of
      stock, whether by recapitalization, reclassification or otherwise (other than
      a
      subdivision or combination of shares or stock dividend or a reorganization,
      merger, consolidation or sale of assets, provided for elsewhere in this Section
      2), then, and in any such event, the Holder shall thereafter be entitled to
      receive upon exercise of this Warrant such number and kind of stock or other
      securities or property of the Company to which a holder of Shares deliverable
      upon exercise of this Warrant would have been entitled on such reclassification
      or other change, subject to further adjustment as provided herein.

     

    2.4 Subsequent
      Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any
      time while this Warrant is outstanding, shall offer, sell, grant any option
      to
      purchase or offer, sell or grant any right to re-price its securities, or
      otherwise dispose of or issue (or announce any offer, sale, grant or any option
      to purchase or other disposition) any Common Stock or any securities convertible
      into or exchangeable for shares of Common Stock, or the issuance of any
      warrants, options, subscription or purchase rights with respect to such
      convertible or exchangeable securities (“Common Stock Equivalents”) entitling
      any Person to acquire shares of Common Stock, at an effective price per share
      less than the then Purchase Price (such lower price, the “Base Purchase Price”
and such issuances collectively, a “Dilutive Issuance”), as adjusted hereunder
      (if the holder of the Common Stock or Common Stock Equivalents so issued shall
      at any time, whether by operation of purchase price adjustments, reset
      provisions, floating conversion, exercise or exchange prices or otherwise,
      or
      due to warrants, options or rights per share which is issued in connection
      with
      such issuance, be entitled to receive shares of Common Stock at an effective
      price per share which is less than the Purchase Price, such issuance shall
      be
      deemed to have occurred for less than the Purchase Price on such date of the
      Dilutive Issuance), then the Purchase Price shall be reduced to equal the Base
      Purchase Price. The Company shall notify the Holder in writing, no later than
      the Business Day following the issuance of any Common Stock or Common Stock
      Equivalents subject to this section, indicating therein the applicable issuance
      price, or of applicable reset price, exchange price, conversion price and other
      pricing terms (such notice the “Dilutive Issuance Notice”). For purposes of
      clarification, whether or not the Company provides a Dilutive Issuance Notice
      pursuant to this Section 2.4, upon the occurrence of any Dilutive Issuance
      the
      Purchase Price shall be reduced to equal the Base Purchase Price. 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.5 Subsequent
      Rights Offerings. If the Company, at any time while the Warrant is outstanding,
      shall issue rights, options or warrants to all holders of Common Stock (and
      not
      to the Holder) entitling them to subscribe for or purchase shares of Common
      Stock at a price per share less than the Purchase Price at the record date
      mentioned below, then the Purchase Price shall be multiplied by a fraction,
      of
      which the denominator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the number
      of additional shares of Common Stock offered for subscription or purchase,
      and
      of which the numerator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the number
      of shares which the aggregate offering price of the total number of shares
      so
      offered (assuming receipt by the Company in full of all consideration payable
      upon exercise of such rights, options or warrants) would purchase at such lesser
      price. Such adjustment shall be made whenever such rights or warrants are
      issued, and shall become effective immediately after the record date for the
      determination of stockholders entitled to receive such rights, options or
      warrant.

     

    2.6 No
      adjustment in the Purchase Price shall be required unless such adjustment would
      require an increase or decrease of at least 1% in such price; provided, however,
      that any adjustments which by reason of this Section 2.6 are not required to
      be
      made shall be carried forward and taken into account in any subsequent
      adjustment; and provided, further, that any adjustment required in order to
      preserve the tax-free nature of a distribution to the holders of shares of
      Common Stock shall be made when so required.  All
      calculations under this Section 2 shall be made to the nearest cent (with $.005
      being rounded upward). Anything in this Section 2 to the contrary
      notwithstanding, the Company shall be entitled, to the extent permitted by
      law,
      to make such reductions in the Purchase Price, in addition to those required
      by
      this Section 2, as it in its discretion shall determine to be advisable in
      order
      that any stock dividends, subdivision or combination of shares, distribution
      of
      capital stock or rights or warrants to purchase stock or securities,
      distribution of evidences of indebtedness or assets or any other transaction
      which could be treated as any of the foregoing transactions pursuant to Section
      305 of the Internal Revenue Code of 1986, as amended (and any successor
      provision), hereafter made by the Company to its shareholders shall not be
      taxable to such shareholders.

    

     SECTION
      3

     

    Status
      Under the Securities Act of 1933

    

    This
      Warrant and the Shares issuable upon exercise of this Warrant have not been
      registered under the Securities Act of 1933, as amended (“the Act”). Upon
      exercise, in whole or in part, of this Warrant, the certificates representing
      the Shares shall bear the legend first above written.

    

    SECTION
      4

     

    Other
      Matters

    

    4.1 Binding
      Effect. All the covenants and provisions of this Warrant by or for the benefit
      of the Company shall bind and inure to the benefit of its successors and assigns
      hereunder.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    4.2 Notices.
      Notices or demands pursuant to this Warrant to be given or made by the Holder
      to
      or on the Company shall be sufficiently given or made if sent by certified
      or
      registered mail, return receipt requested, postage prepaid, or facsimile and
      addressed, until another address is designated in writing by the Company, as
      follows:

    

    EAU
      Technologies, Inc.

    1890
      Cobb
      International Blvd., Suite A

    Kennesaw,
      GA 30152

    Telephone
      No.: (678) 388-9492

    Attention: Wade
      R.
      Bradley, President

    

    Notices
      to the Holder provided for in this Warrant shall be deemed given or made by
      the
      Company if sent by certified or registered mail, return receipt requested,
      postage prepaid, and addressed to the Holder at his last known address as it
      shall appear on the books of the Company.

     

    4.3 Governing
      Law. The validity, interpretation and performance of this Warrant shall be
      governed by the laws of the State of Delaware. 

     

    4.4 Parties
      Bound and Benefited. Nothing in this Warrant expressed and nothing that may
      be
      implied from any of the provisions hereof is intended, or shall be construed,
      to
      confer upon, or give to, any person or corporation other than the Company and
      the Holder any right, remedy or claim under any promise or agreement hereof,
      and
      all covenants, conditions, stipulations, promises and agreements contained
      in
      this Warrant shall be for the sole and exclusive benefit of the Company and
      its
      successors and of the Holder, its successors and permitted assigns.

     

    4.5 Headings.
      The Section headings herein are for convenience only and are not part of this
      Warrant and shall not affect the interpretation thereof.

     

    (Remainder
      Of Page Intentionally Left Blank)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    IN
      WITNESS WHEREOF,
      this
      Warrant has been duly executed by the Company as of May __, 2007.

     

    
      	
              EAU
                TECHNOLOGIES, INC.

            
	
               

            
	
              By:
                /s/
                Wade R. Bradley

            
	
              Wade
                R. Bradley

            
	
              Chief
                Executive Officer

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    ASSIGNMENT
      OF WARRANT

     

    FOR
      VALUE RECEIVED,
      ___________________________ hereby sells, assigns and transfers unto
      ________________________ the within Warrant and the rights represented thereby,
      and does hereby irrevocably constitute and appoint _______________________
      Attorney, to transfer said Warrant on the books of the Company, with full power
      of substitution.

     

    
      	
              Dated:
                _____________________________

            
	 
	
              Signed:
                ____________________________

            
	 
	
              Signature
                guaranteed: 

            
	
              __________________________________

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    SUBSCRIPTION
      AGREEMENT

    FOR
      THE EXERCISE OF WARRANTS

    

    The
      undersigned hereby irrevocably subscribes for the purchase of _____________
      Shares pursuant to and in accordance with the terms and conditions of this
      Warrant, which Shares should be delivered to the undersigned at the address
      stated below. If said number of Shares are not all of the Shares purchasable
      hereunder, a new Warrant of like tenor for the balance of the remaining Shares
      purchasable hereunder should be delivered to the undersigned at the address
      stated below.

    

    The
      undersigned elects to pay the aggregate Purchase Price for such Shares in the
      following manner:

    

    [
      ]
 by
      the
      enclosed cash or check made payable to the Company in the amount of 
$___________;

    

    [
      ]
 by
      wire
      transfer of United States funds to the account of the Company in the amount
      of
      $__________, which transfer has been made before or simultaneously with the
      delivery of this Notice pursuant to the instructions of the Company;
      or

    

    The
      undersigned agrees that: (1) the undersigned will not offer, sell, transfer
      or
      otherwise dispose of any Shares unless either (a) a registration statement,
      or
      post-effective amendment thereto, covering the Shares has been filed with the
      Securities and Exchange Commission pursuant to the Securities Act of 1933,
      as
      amended (the “Act”), such sale, transfer or other disposition is accompanied by
      a prospectus meeting the requirements of Section 10 of the Act forming a part
      of
      such registration statement, or post-effective amendment thereto, which is
      in
      effect under the Act covering the Shares to be so sold, transferred or otherwise
      disposed of, and all applicable state securities laws have been complied with,
      or (b) counsel reasonably satisfactory to EAU Technologies, Inc. has rendered
      an
      opinion in writing and addressed to EAU Technologies, Inc. that such proposed
      offer, sale, transfer or other disposition of the Shares is exempt from the
      provisions of Section 5 of the Act in view of the circumstances of such proposed
      offer, sale, transfer or other disposition; (2) EAU Technologies, Inc. may
      notify the transfer agent for the Shares that the certificates for the Shares
      acquired by the undersigned are not to be transferred unless the transfer agent
      receives advice from EAU Technologies, Inc. that one or both of the conditions
      referred to in (1)(a) and (1)(b) above have been satisfied; and (3) EAU
      Technologies, Inc. may affix the legend set forth in Section 3.1 of this Warrant
      to the certificates for the Shares hereby subscribed for, if such legend is
      applicable.

    

    
      	
              Dated:
                ____________________________________________

            	
              Signed:
                _________________________________

            
	
               

            	
               

            
	
              Signature
                guaranteed: ________________________________

            	
              Address:
                ________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]