Document:

SECURED PROMISSORY NOTE

 

	$500,000.00	January 29, 2013

 

For value received, Armada Water Assets,
Inc., a Nevada corporation, whose address is 1716 E. Lincoln Avenue, Fort Collins, Colorado 80524 ("Maker"), promises
to pay to the order of City National Bank, as Trustee of the Elanken Family Trust-S, dated April 24, 2002 ("Lender"
and also sometimes "Payee"), having an address at 9665 Wilshire Blvd., Suite M-10, Los Angeles, California
90212, or at such place as the holder hereof may from time to time designate in writing, the principal sum of FIVE HUNDRED THOUSAND
AND NO/100 DOLLARS ($500,000.00), or so much thereof as shall have been advanced hereunder, in lawful money of the United States
of America, together with interest thereon at an annual rate of ten percent (10%) per annum (the "Interest Rate").
Interest (calculated on the basis of the actual number of days elapsed in a year consisting of 360 days) shall accrue on the outstanding
principal balance from the date hereof and shall be payable in arrears as follows:

 

On the date hereof
a sum representing interest only from the date of this Note through January 31, 2013;

 

Thereafter, commencing
on March 1, 2013 and on the first day of each month thereafter through and until August 1, 2013 (the “Maturity Date”),
Maker shall pay to the Payee consecutive monthly installments of interest only in an amount equal to the Monthly Payment Amount.
The “Monthly Payment Amount” shall equal interest only on the outstanding principal balance, calculated at an annual
interest rate equal to the Interest Rate or the Default Rate, as applicable. Notwithstanding the foregoing, this Note shall become
immediately due and payable, at the option of Payee, upon Maker having achieved an equity capitalization of $1,500,000. Maker covenants
to immediately notify Lender in writing promptly upon satisfaction of either of the conditions referenced in the preceding sentence.

 

As an inducement to
making this Loan, Maker shall also issue to Lender on the date hereof 100,000 shares of its restricted common stock, par value
$.0001.

 

All unpaid principal,
interest and other charges, if any accruing under this Note shall be due and payable on the earlier of (a) the Maturity Date or
(b) the date which the indebtedness becomes immediately due and payable hereunder. In lieu of accepting repayment of the principal
balance of this Note, and any interest then due and owing on the Maturity Date, Lender may elect to convert this Note to common
stock in the Maker at the conversion rate of One Dollar ($1.00) per share (the “Conversion”).

 

Except if Lender elects to be repaid pursuant
to the Conversion, all amounts due under this Secured Promissory Note (the “Note”) shall be payable in lawful
money of the United States without setoff, counterclaim or any other deduction whatsoever.

 

    	 

    	 	

    
 

1.          As
used in this Note:

 

(a)          The
term "Business Day" shall mean a day other than (i) a Saturday or Sunday, or (ii) any day on which
commercial banks in Los Angeles, California are not open for general banking business.

 

(b)          The
term "Debt" shall mean, collectively, the whole of the principal sum of this Note, together with all
interest accrued and unpaid thereon and all other sums due under this Note.

 

(c)          The
term "Security Agreement" shall mean that certain Stock Pledge Agreements, of even date herewith, given by
Wiltomo Redemption Foundation, a Pennsylvania nonprofit corporation, securing the payment and performance of Maker’s
obligations under this Note for the use and benefit of Payee covering issued and outstanding shares in Coastal Energy Company
(CEN: TSE), all as more particularly described therein.

 

(d)          The
term "Default Rate" shall mean a rate per annum which equals to the lesser of (a) the maximum rate permitted
by applicable law, or (b) eight percentage points (8%) above the Interest Rate.

 

(e)          The
term "Loan" shall mean that certain loan made by Payee to Maker contemporaneously herewith.

 

(f)          The
term "Loan Documents" shall mean collectively this Note, the Security Agreement, and any and all other
documents securing, evidencing, or guaranteeing all or any portion of the Loan or otherwise executed and/or delivered in
connection with this Note and the Loan.

 

2.          This
Note is evidence of the Loan and of the obligation of the Maker to repay the Loan in accordance with the terms hereof. This
Note is secured inter alia by (a) the Security Agreement and (b) the other Loan Documents.

 

3.          If
any sum payable under this Note is not paid on or before the tenth (10th) day after which it is due, Maker shall
pay to Payee upon demand an amount equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount
permitted by applicable law in order to defray a portion of the expenses incurred by Payee in handling and processing such
delinquent payment and to compensate Payee for the loss of the use of such delinquent payment.

 

4.          The
Debt or any portion thereof then outstanding, shall without notice become immediately due and payable at the option of Payee upon the happening of any event of default (as defined
in the Security Agreement) (as so defined, “Event of Default”). In the event that it should become necessary
to employ counsel to collect or enforce the Debt or to protect or foreclose the security therefor, Maker also shall pay on demand
all costs of collection incurred by Payee, including reasonable attorneys' fees and costs reasonably incurred for the services
of counsel whether or not suit is brought.

 

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5.          Maker
does hereby agree that upon the occurrence of an Event of Default (including upon the failure of Maker to pay the Debt in
full on the Maturity Date), Payee shall be entitled to receive and Maker shall pay interest on the entire unpaid principal
sum and any other amounts due (which shall accrue at the Default Rate while such Event of Default is continuing).

 

6.          This
Note may be prepaid prior to the Maturity Date without penalty or charge.

 

7.          It
is expressly stipulated and agreed to be the intent of Maker and Payee at all times to comply with applicable state law or
applicable United States federal law (to the extent that it permits Payee to contract for, charge, take, reserve, or receive
a greater amount of interest than under state law) and that this paragraph shall control every other covenant and agreement
in this Note and the other Loan Documents. If the applicable law (state or federal) is ever judicially interpreted so as to
render usurious any amount called for under this Note or under any of the other Loan Documents, or contracted for, charged,
taken, reserved, or received with respect to the Debt, or if Payee's exercise of the option to accelerate the Maturity Date,
results in Maker having paid any interest in excess of that permitted by applicable law, then it is Payee's express intent
that all excess amounts theretofore collected by Payee shall be credited on the principal balance of this Note and all other
Debt and the provisions of this Note and the other Loan Documents immediately be deemed reformed and the amounts thereafter
collectible hereunder and thereunder reduced, without the necessity of the execution of any new documents, so as to comply
with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder or thereunder.
All sums paid or agreed to be paid to Payee for the use, forbearance, or detention of the Debt shall, to the extent permitted
by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term of the Debt until payment in
full so that the rate or amount of interest on account of the Debt does not exceed the maximum lawful rate from time to time
in effect and applicable to the Debt for so long as the Debt is outstanding. Notwithstanding anything to the contrary
contained herein or in any of the other Loan Documents, it is not the intention of Payee to accelerate the maturity of any
interest that has not accrued at the time of such acceleration or to collect unearned interest at the time of such
acceleration.

 

8.          This
Note may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act
on the part of Maker or Payee, but only by an agreement in writing signed by the party against whom enforcement of any
modification, amendment, waiver, extension, change, discharge or termination is sought. Whenever used, the singular number
shall include the plural, the plural the singular, and the words "Payee" and "Maker" shall
include their respective successors, assigns, heirs, executors and administrators. If Maker consists of more than one person
or party, the obligations and liabilities of each such person or party shall be joint and several.

 

9.          Maker
and all others who may become liable for the payment of all or any part of the Debt do hereby severally waive presentment
and demand for payment, notice of dishonor, protest, notice of protest, notice of nonpayment, notice of intent to accelerate
the maturity hereof and of acceleration. No release of any security for the Debt or any person liable for payment of the
Debt, no extension of time for payment of this Note or any installment hereof, and no alteration, amendment or waiver of any
provision of the Loan Documents made by agreement between Payee and any other person or party shall release, modify, amend,
waive, extend, change, discharge, terminate or affect the liability of Maker, and any other person or party who may become
liable under the Loan Documents for the payment of all or any part of the Debt.

 

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10.          Maker
(and the undersigned representative of Maker, if any) represents that Maker has full power, authority and legal right to
execute, deliver and perform its obligations pursuant to this Note and the other Loan Documents and that this Note and the
other Loan Documents constitute valid and binding obligations of Maker.

 

11.          All
notices or other communications required or permitted to be given pursuant hereto shall be given in the manner specified in
the Security Agreement directed to the parties at their respective addresses as provided therein.

 

12.          This
Note shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to its
choice of law principles. Maker agrees to submit to the personal and subject matter jurisdiction of the courts of the State
of Delaware and further agrees that service of process may be effected upon Maker by certified mail, return receipt requested
in addition to any other means permitted by applicable law.

 

13.          THE
PARTIES HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED ON THE LOAN, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENT (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY PARTY HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER’S
AGREEMENT TO MAKE THE LOAN, WITHOUT WHICH LENDER WOULD NOT MAKE THE LOAN. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS HAD THE
OPPORTUNITY TO REVIEW THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IF IT HAS SO REVIEWED THIS WAIVER WITH LEGAL COUNSEL IT HAS KNOWINGLY
AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING SUCH CONSULTATION OR IF IT HAS NOT REVIEWED THIS WAIVER WITH LEGAL COUNSEL
HAS DONE SO KNOWINGLY AND INTENTIONALLY AND AGAINST THE ADVICE OF THE OTHER PARTY WITH THE FULL UNDERSTANDING THAT THIS PROVISION
IS LEGALLY ENFORCEABLE IN ACCORDANCE WITH ITS TERMS.

 

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14.          Maker
hereby warrants, represents and covenants that the loan evidenced hereby is for business or commercial purposes only, and no
advance of funds evidenced hereby shall be used by Maker for personal, family, agricultural or household purposes.

 

 

[END OF TEXT; SIGNATURE FOLLOWS ON NEXT
PAGE]

 

 

 

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Maker
has duly executed this Note the day and year first above written.

 

	 	MAKER:
	 	 
	 	Armada Water Assets, Inc.

 a Nevada corporation
	 	 
	 	By:	/s/ Mitch Burroughs	 
	 	Mitch Burroughs, President

 

    	6Green Forest Management Consulting Inc.

3F B302C, No. 185 Kewang Road

Longtan Township, Taoyuan County 325

Taiwan (R.O.C.)

 

 

 

February 3, 2013

 

 

 

Da Chuang Business Management Consultant Co. Ltd.

Attn: Yu Chien Yang, Chief Executive Officer

3F., No. 132, Gongyi Rd., West Dist.,

Taichung City 403, Taiwan (R.O.C.)

 

 

	 	Re: 	Letter of Intent to Purchase Land
	 	Land Lot: 	Xinhua Section
	 		Xinpi Township, Pingtung County
	 		Taiwan (R.O.C.)

	 	Land Serial
Nos.: 	1043, 1044-1, 1044-4, 1075, 1076, 
	 		1080, 1083, 1083-1, 1084, 1088-1, 1090

 

Dear Mr. Yu:

 

This non-binding letter of intent (the “LOI”)
sets forth our understanding of the mutual intentions of the below parties regarding the proposed sale of approximately 29,293
square meters of land in Xinhua Section, Xinpi Township, Pingtung County, Taiwan (R.O.C.), designated by Land Serial Nos. 1043,
1044-1, 1044-4, 1075, 1076, 1080, 1083, 1083-1, 1084, 1088-1, 1090 (the “Land”), by Da Chuang Business Management Consultant
Co. Ltd., a Taiwan (R.O.C.) corporation (the “Seller”), to Green Forest Management Consulting Inc., a Taiwan
(R.O.C.) corporation (the “Purchaser”) (Purchaser and Seller may also be referred to hereinafter individually
as a “Party” and collectively as the “Parties”).

 

1. Transaction. The planned sale will be accomplished
by Purchaser purchasing the Land from Seller (the “Land Purchase”) at a price to be negotiated by the Parties
in accordance with the terms of a definitive land purchase agreement (the “Land Purchase Agreement”). In addition,
the Parties will jointly determine the optimum tax structure for the transaction in order to best satisfy tax planning, regulatory
and other considerations.

 

2. Transaction Closing.  The Parties shall use their
commercially best efforts to close the Land Purchase (the “Closing”) within 180 days of both Parties executing
the LOI. Should the Parties be unable to close the transaction within that time period, the timeline for Closing will be renegotiated
by the Parties.

 

3. Definitive Agreements.  Following execution of
this LOI, the Parties shall commence negotiation and preparation of the Land Purchase Agreement and any other necessary documents
(together, the “Definitive Agreements”) that will define the terms and other commitments contemplated by the Parties.
The Definitive Agreements will contain the general provisions outlined above in addition to the usual and customary representations
and warranties, covenants, conditions and indemnifications for a transaction of this kind, including, but not limited to, tax and
securities filings, and state and local corporate filings.  

 

    	 

    	 

    

 

4. Conditions.  For a period of 180 days following
execution of this LOI (the “Due Diligence Period”), the Seller must comply with all reasonable requests of Purchaser
to review relevant information concerning the Land, including allowing the Purchaser to conduct and obtain a satisfactory title
search and survey of the Land, conduct environmental and feasibility studies as necessary, as well as allow Purchasers to determine
if the land may be rezoned by the relevant governmental authorities to meet Purchaser’s needs and planned uses.

 

5. Seller’s Warranties. The Land Purchase Agreement
shall be subject to and include the following Seller warranties:

 

		(a)	Authority and Marketable Title. Seller is the owner of the Land, possesses the requisite authority to enter into and
perform the Land Purchase Agreement, and has the absolute right to sell, assign and transfer the Land to Purchaser at Closing.

		(b)	No Pending Litigation or Bankruptcy. There are no actions, suits or proceedings pending or threatened against, or affecting,
the Land. No bankruptcy or similar action, whether voluntary or involuntary, is pending or is threatened against Seller, and Seller
has no intention of filing or commencing any such action.

		(c)	No Outstanding Purchase Option. No option, right of first refusal or other contractual opportunity to purchase the Land
has been granted to, or executed with, a third-party that is enforceable against Seller and/or the Land giving such third-party
a right to purchase an interest in the Land or any part thereof.

		(d)	Notice of Repairs. Seller has received no written notice from any governmental agency concerning repairs, alterations
or corrections that must be made to the Land.

		(e)	Hazardous Materials. To the best of Seller’s actual knowledge, no toxic or hazardous materials are now or will
be at Closing located on or below the surface of the Land. There are no petroleum storage tanks located on or beneath the surface
of the Land.

		(f)	Parties in Possession. As of the Closing date, there will be no adverse or other parties in possession of the Land or
any part thereof, nor has any party been granted any license, lease or other right or interest relating to the use or possession
of the Land or any part thereof.

		(g)	Other Contracts. Seller is not a party to any contracts relating to the Land that are not terminable at will, except
as follows: [to be detailed in Land Purchase Agreement].

		(h)	No Undisclosed Restrictions. Seller has not, nor to the best of Seller’s knowledge or belief has any predecessor
in title, executed or caused to be executed any document with or for the benefit of any governmental authority restricting the
development, use or occupancy of the Land that has not specifically been disclosed to Purchaser or that would not be revealed in
a title report.

 

6. Transaction, Broker and Document Expenses.  Each
Party shall be solely responsible for all fees and expenses of the Parties’ agents, advisors, attorneys, brokers and accountants
with respect to the negotiation of this LOI, the negotiation and drafting of the Definitive Agreements and, if the Definitive Agreements
are executed, the closing of the Transaction.

 

7. No Shop.  Until the closing of the Acquisition,
or termination of negotiations related to the Acquisition, Seller may not enter into any transaction or agreement related to the
sale of the Land, or otherwise encumber or enter into an agreement that would encumber the Land, or enter into any agreement outside
of the ordinary course of business or that would otherwise hinder the Parties’ rights or intentions under this LOI.  

 

    	 

    	 

    

 

8. Confidentiality, Non-Disclosure and Subsequent Public
Announcement. Neither Party shall disclose to any other person (other than such party’s employees, representatives
and agents who are bound by confidentiality agreements or other confidentiality obligations) the terms or conditions hereof or
the fact that the Acquisition is being contemplated by the Parties. Following the execution of this LOI, Green Forest shall release
a Form 8-K with the Securities and Exchange Commission and a related press release regarding the LOI and the proposed Acquisition.
With the exception of the Form 8-K and press release described in this section, the Parties agree not to issue any further press
releases or make any further public announcement regarding the Acquisition prior to the Closing without prior written mutual consent
of all Parties, except where a public announcement is otherwise required by law. In addition, each of the Parties hereto shall
keep confidential each of the provision of this LOI and the agreements referenced or contemplated herein and all information each
party obtains regarding the other party (collectively, the “Confidential Information”), except if (a) the information
is already a matter of public record or knowledge; (b) the information may be necessary to a Party’s financial or legal advisor(s)
(subject to such party agreeing to be bound to the non-disclosure covenants contained in this paragraph); or (c) such disclosure
is required by law. This covenant regarding Confidential Information shall indefinitely survive the termination of this LOI or
any Definitive Agreements.

 

9. Acknowledgments and Assent. The Parties acknowledge
that they were advised to consult with an independent attorney prior to signing this LOI and that they have in fact consulted with
counsel of their own choosing prior to executing this LOI. The Parties agree that they have read this LOI and understand the content
herein and freely and voluntarily assent to all of the terms herein.  

 

10. Entire Agreement; Amendment; Counterparts. This LOI
represents the entire understanding of the Parties with respect to the terms of Purchaser’s proposed acquisition of the Land
and supersedes all prior and/or contemporaneous agreements, representations and understandings, whether written or oral. This LOI
may only be amended, modified or extended by a written agreement signed by both Parties hereto. This LOI may not be assigned without
the other Party’s written consent. This LOI may be signed in two or more counterparts, any one of which need not contain
the signature of more than one Party, but all such counterparts will constitute one and the same agreement.

 

We trust that these terms accurately reflect
our understanding. If there are any questions or comments regarding the same, please feel to contact me at your convenience. Otherwise
kindly execute this LOI acknowledging your agreement to the terms outlined above.

 

Agreed and accepted by:

	 	 
	
        Green Forest Holding, Inc.

        a Taiwan (R.O.C.) corporation

         

         

        By:  _/s/ Chiang Yu Chang                             

        Name: Chiang Yu Chang

        Title: Chairman
	
        Da Chuang Business Management Consultant Co. Ltd.

        a Taiwan (R.O.C.) corporation

         

        By: _/s/ Yu Chien Yang_____________

        Name: Yu Chien Yang

        Title: Chief Executive Officer

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