Document:

EXHIBIT 10.2

                              TERM CREDIT AGREEMENT
                              ---------------------

      THIS TERM CREDIT AGREEMENT (this  "Agreement") is made and entered into as
of March 29,  2004,  by and  among  WORLDWATER  CORP.,  a  Delaware  corporation
("Borrower"), HONG KONG LEAGUE CENTRAL CREDIT UNION, in its capacity as a lender
hereunder  ("Hong Kong League"),  HIT CREDIT UNION,  in its capacity as a lender
hereunder ("HIT"),  (HIT and Hong Kong League shall be collectively  referred to
as "Lenders"), and SBI ADVISORS, LLC, a California limited liability company, in
its capacity as agent for Lenders ("Agent"), with reference to the following:

                                   WITNESSETH:

      WHEREAS,  Lenders  desire to make a Term Loan to  Borrower,  and  Borrower
desires to borrow from  Lenders the amount of such Term Loan,  subject to and in
accordance with the terms and conditions set forth herein, and in the Notes; and
WHEREAS,  Lenders  desire to appoint  Agent,  and Agent  desires to accept  such
appointment,  to act as agent for and on behalf of Lenders,  with respect to the
Term Loan, for the purposes described herein.

      NOW,  THEREFORE,  in  consideration of the mutual covenants and agreements
contained herein, and for other good and valuable  consideration,  the delivery,
receipt,  and  sufficiency of which is hereby  acknowledged,  the parties hereto
agree as follows:

1. Certain Defined Terms.  As used in this Agreement,  the following terms shall
have the following meanings:

      "Affiliate"  means,  with  respect to any Person,  (a) each  Person  that,
directly or indirectly, owns or controls, whether beneficially, or as a trustee,
guardian or other  fiduciary,  twenty percent (20%) or more of the capital stock
or other  Equity  Interests  having  ordinary  voting  power in the  election of
directors, managers or other Persons having the ability to manage the affairs of
that Person, (b) each Person that controls,  is controlled by or is under common
control  with  that  Person,  (c)  each of that  Person's  officers,  directors,
members,  managers,  joint  venturers  and  partners  and (d) in the case of the
Borrower,  the  immediate  family  members,  spouses and lineal  descendants  of
individuals who are otherwise  Affiliates of the Borrower.  For purposes of this
definition,  "control" of a Person means the possession, directly or indirectly,
of the power to direct or cause the  direction  of its  management  or policies,
whether through the ownership of voting securities, by contract or otherwise.

      "Business  Day" means a day (a) other than Saturday or Sunday,  and (b) on
which  commercial  banks are open for  business in New York,  New York,  and Los
Angeles, California.

      "Closing Date" means the date each of the  conditions  precedent set forth
in Section 5 hereof is fully satisfied.

      "Equity Interests" means, with respect to any Person, all of the shares of
capital stock of (or other ownership or profit interests in) such Person, all of
the warrants,  options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests in)
such Person,  all of the securities  convertible into or exchangeable for shares
of capital stock of (or other  ownership or profit  interests in) such Person or
warrants,  rights or options for the purchase or acquisition from such Person of
such shares (or such other interests),  and all of the other ownership or profit
interests in such Person (including, without limitation,  partnership, member or
trust interests therein),  whether voting or nonvoting,  and whether or not such
shares, warrants, options, rights or other interests are authorized or otherwise
existing on any date of determination.

                                       1
<PAGE>

      "Event of Default" has the meaning set forth in Section 7.

      "Interest Rate" has the meaning set forth in Section 2(c).

      "Lien"  means any  mortgage,  deed of trust,  pledge,  security  interest,
assignment,  deposit  arrangement,  charge or  encumbrance,  lien  (statutory or
other),  or other  preferential  arrangement  (including any conditional sale or
other title retention  agreement,  any financing lease having  substantially the
same  economic  effect  as any of the  foregoing  or any  agreement  to give any
security interest).

      "Maturity Date" has the meaning set forth in Section 2(b).

      "Notes" has the meaning set forth in Section 2(d).

      "Person"  means an individual,  corporation,  limited  liability  company,
partnership,  joint venture,  trust,  unincorporated  organization  or any other
juridical entity.

      "Permitted  Lien"  means  those  Liens  disclosed  on  Schedule I attached
hereto.

                                       2
<PAGE>

      "Restricted  Payment" means (a) the declaration or payment of any dividend
or the incurrence of any liability to make any other payment or  distribution of
cash or other property or assets in respect of a Person's Equity Interests,  (b)
any payment on account of the purchase, redemption,  defeasance, sinking fund or
other  retirement  of a  Person's  Equity  Interests  or any  other  payment  or
distribution  made in respect  thereof,  either directly or indirectly,  (c) any
payment  made to  redeem,  purchase,  repurchase  or  retire,  or to obtain  the
surrender  of, any  outstanding  warrants,  options  or other  rights to acquire
Equity Interests of such Person now or hereafter outstanding, (d) any payment of
a claim for the  rescission of the purchase or sale of, or for material  damages
arising from the purchase or sale of, any such Person's Equity Interests or of a
claim for  reimbursement,  indemnification  or  contribution  arising  out of or
related to any such claim for  damages or  rescission;  (e) any  payment,  loan,
contribution, or other transfer of funds or other property to any stockholder of
such  Person  other  than  payment of  compensation  in the  ordinary  course of
business to stockholders  who are employees of such Person;  and (f) any payment
of  management  fees (or other fees of a similar  nature) by such  Person to any
stockholder of such Person or their Affiliates.

      "SBIB Term Sheet"  means the proposed  Term Sheet  attached as Schedule II
between Borrower and SBI Brightline VIII LLC.

      "Term Loan" has the meaning set forth in Section 2(a).

2. Amount and Terms of the Term Loan.

      (a) Term  Loan  Advance.  Subject  to the  terms  and  conditions  of this
Agreement,  each Lender hereby, severally and not jointly, agrees to make a loan
to Borrower  (the "Term  Loan") on the Closing Date in the  aggregate  amount of
Eight Hundred Thousand Dollars (U.S.$800,000), which amount may be repaid at any
time prior to the  Maturity  Date  without  premium or  penalty,  but may not be
reborrowed once repaid.

      (b)  Repayment.  The Term Loan shall be repaid as  follows:  Four  Hundred
Thousand ($400,000) of the principal amount (the "Initial  Amortization Amount")
will be due and  payable  within  three days after  receipt by  Borrower  of the
proceeds from the $0.17 Tranche, as such term is defined in the SBIB Term Sheet;
and all  remaining  unpaid  principal  of and accrued  interest on the Term Loan
(including,   but  not  limited  to  the  Initial  Amortization  Amount  if  not
theretofore  made) shall,  be payable on the earliest of (the "Maturity  Date"),
(i) the date six months from the Closing Date, (ii) the effective date under the
Securities Act of 1933, as amended, of the registration statement referred to in
the SBIB Term Sheet and (iii) a default or event of default by  Borrower  of any
of the  agreements  evidencing  the  transaction  contemplated  in the SBIB Term
Sheet.

      (c) Interest Rate and Interest  Payments.  Borrower  shall pay interest on
the unpaid  principal  amount of the Term Loan from the  Closing  Date until the
Maturity  Date,  at a rate  equal to  eighteen  percent  (18%)  per  annum  (the
"Interest Rate")  calculated on the basis of a 360 day year.  Subject to Section
2(e) and 2(g) below,  interest on the outstanding  principal  amount of the Term
Loan shall be due and payable to Agent,  for the ratable benefit of Lenders,  in
advance (i) on the Closing Date and, (ii)  thereafter,  on the last Business Day
of each  calendar  month,  commencing  on the first of such dates  following the
Closing  Date until the  Maturity  Date,  at which time all  accrued  but unpaid
interest shall be due and payable.

      (d) Promissory  Notes.  The Term Loan shall be evidenced by two promissory
notes  (collectively,  the  "Notes")  in the forms of Exhibit  "A-1" and Exhibit
"A-2" attached hereto, duly executed and delivered to Agent by Borrower.

      (e)  Interest  on Event of  Default.  Upon the  occurrence  and during the
continuance  of an Event of  Default,  Borrower  agrees to pay  interest  on the
entire unpaid  principal  amount of the Term Loan, as well as on any interest or
other amount past due, from the date of such Event of Default until the date the
same is cured in full, payable on demand, at a rate per annum equal at all times
to the Interest Rate plus two percent (2.0%).

      (f) Manner of Payment.  All payments of principal or interest hereunder or
under the Notes shall be delivered to Agent, for the ratable benefit of Lenders,
in immediately  available  funds on the date due at such place as Agent may from
time to time designate.

      (g) Limitation on Interest  Rate. In no  contingency  or event  whatsoever
shall the  aggregate of all amounts  deemed  interest  hereunder  and charged or
collected  by Agent or Lenders or any holder of a Note exceed the  highest  rate
permissible  under any law which a court of competent  jurisdiction  shall, in a
final  determination,  deem  applicable  hereto.  In the event that such a court
determines that Agent or any Lender has charged or received  interest  hereunder
and under the  Notes,  in excess of the  highest  applicable  rate,  the rate in
effect  hereunder  and under the Notes,  shall  automatically  be reduced to the
maximum rate permitted by applicable  law, and Agent and Lenders shall apply all
interest  paid in  excess of the  maximum  lawful  rate  first to  amounts  owed
pursuant to Section 9(d) and thereafter to the principal  balance of the amounts
outstanding  hereunder  and under the  Notes.  It is the  intent of the  parties
hereto that  Borrower not pay or contract to pay, and that Agent and Lenders not
receive or contract to receive, directly or indirectly in any manner whatsoever,
interest  in excess of that which may be paid by  Borrower  to Agent and Lenders
under applicable law.

                                       3
<PAGE>

3. Representations and Warranties. In order to induce Agent and Lenders to enter
into this Agreement and to make the Term Loan contemplated  hereunder,  Borrower
hereby represents and warrants to Agent and Lenders as follows:

      (a) Legal Status.  Borrower is a corporation  duly  incorporated,  validly
existing, and in good standing under the laws of the State of Delaware. Borrower
is qualified or licensed to do  business,  and is in good  standing as a foreign
corporation in all  jurisdictions  in which such  qualification  or licensing is
required or in which the failure to so qualify or to be so licensed could have a
material adverse effect on Borrower.

      (b)  Authorization  and Validity.  This  Agreement and the Notes have been
duly  authorized,  and upon their  execution and delivery in accordance with the
provisions  hereof  and  thereof  will  constitute  legal,   valid  and  binding
agreements  and  obligations of Borrower,  enforceable in accordance  with their
respective terms.

      (c) No Conflict.  The execution,  delivery, and performance by Borrower of
this  Agreement and the Notes do not and will not conflict with the terms of the
Certificate of Incorporation or bylaws of Borrower, violate any provision of any
judgment,  decree  or order  of any  court or  governmental  authority  by which
Borrower is bound,  or any  provision  of any law or  regulation  applicable  to
Borrower,  or result in a breach of or  constitute a default under any contract,
obligation,  indenture,  or other  instrument to which Borrower is a party or by
which Borrower may be bound.

      (d) No Consents.  The execution,  delivery, and performance by Borrower of
this  Agreement  and the Notes do not and will not  require  any  authorization,
approval,  or other  action by, or notice to or filing  with,  any  governmental
authority, regulatory body, or any other person or entity.

      (e) Use of Proceeds.  No proceeds of the Term Loan will be used to acquire
any equity security of a class that is registered  pursuant to Section 12 of the
Securities Exchange Act of 1934, as amended.

      (f) Margin  Stock.  Borrower is not engaged in the  business of  extending
credit for the  purpose of  purchasing  or  carrying  margin  stock  (within the
meaning of Regulation U issued by the Board of Governors of the Federal  Reserve
System),  and no proceeds of the Term Loan will be used to purchase or carry any
margin  stock or extend  credit to  others  for the  purpose  of  purchasing  or
carrying  any margin  stock,  or be used for any  purpose  which  violates or is
inconsistent with the provisions of Regulation X of said Board of Governors.

4.  Covenants.  Borrower  hereby  covenants  that until all amounts  outstanding
hereunder and under the Notes have been indefeasibly paid in full, it shall:

      (a) Punctual  Payments.  Punctually  pay the interest and  principal  with
respect to the Term Loan as provided herein and in the Notes.

      (b)  Existence.  Do or cause to be done all things  necessary to preserve,
renew and keep in full  force and  effect  its  existence  and  comply  with the
provisions  of all  documents  pursuant to which it is  organized  and/or  which
govern its continued  existence;  maintain all licenses,  permits,  governmental
approvals,  rights,  privileges, and franchises necessary for the conduct of its
business;  and  conduct its  business  in an orderly  and regular  manner and in
accordance with all laws,  rules,  regulations,  and orders of any  governmental
authority having jurisdiction over it or its business.

                                       4
<PAGE>

      (c) Books and Records.  Maintain  adequate books and records in accordance
with generally accepted accounting  principles  consistently applied, and permit
any  representative  of Agent or any Lender, at any reasonable time, to inspect,
audit and examine  such books and  records,  to make copies of the same,  and to
inspect its assets and properties.

      (d) No Liens. Not create or permit to exist any Lien on or with respect to
any property whatsoever of Borrower except for Permitted Liens.

      (e) Fundamental Changes. Not (i) liquidate, wind-up or dissolve itself (or
suffer any liquidation or dissolution),  (ii) merge with or consolidate into any
Person,  (iii)  purchase or otherwise  acquire all or  substantially  all of any
business,  division or product line of any Person or all or substantially all of
the assets, equity interests,  obligations or other securities of any Person, or
(iv) sell,  transfer,  lease or otherwise dispose of (whether in one transaction
or in a series of transactions) all or substantially all of its assets.

      (f)  Transactions  with Related  Parties.  Not enter into any transaction,
including  the  purchase,  sale or exchange of property or the  rendering of any
services,  with any  Affiliate,  or any officer or director  thereof (a "Related
Party"),  or enter into,  assume or suffer to exist any employment or consulting
contract with any Related  Party,  except a transaction  or contract which is in
the ordinary course of Borrower's business and which is upon fair and reasonable
terms not less favorable to Borrower than it would obtain in a comparable  arm's
length transaction with a Person not a Related Party

      (g) Restricted Payments. Not declare, make, pay or set aside any funds for
the payment of any Restricted Payment.

5. Conditions Precedent to Term Loan. The obligation of Lenders to make the Term
Loan shall be subject to the condition  precedent that Agent shall have received
each of the following, each in form and substance satisfactory to Agent:

      (a) This Agreement, duly executed by all of the parties hereto;

      (b) The Notes, duly executed by Borrower;

      (c) A Warrant in favor of Agent to purchase  400,000  shares of the Common
Stock of Borrower in the form attached hereto as Exhibit B;

      (d) A Registration Rights Agreement in favor of Agent in the form attached
hereto as Exhibit C duly executed by Borrower; and

      (e) Such additional  supporting  documents as Agent or its counsel, or any
Lender or its counsel, may reasonably request.

6. Survival of Representations and Warranties.  Borrower covenants, warrants and
represents  to Agent and Lenders  that all  representations  and  warranties  of
Borrower  contained in this  Agreement or the Notes shall be true at the time of
Borrower's  execution  of  this  Agreement  and the  Notes,  shall  survive  the
execution,  delivery and acceptance thereof by Agent and the parties thereto and
the closing of the transactions described therein or related thereto.

7. Events of Default. The occurrence of any of the following shall constitute an
"Event of Default" and shall, at the option of Lenders (except for  subparagraph
(e) in which  case all  amounts  shall be  automatically  accelerated),  require
immediate  payment in full of all sums then remaining unpaid hereunder and under
the Notes:

      (a)  Failure  to Pay  the  Notes.  The  failure  of  Borrower  to pay  any
principal, interest or other amount due under the Notes when due and payable.

      (b)  Breach of  Covenant,  Representation  or  Warranty.  The  failure  of
Borrower to perform or observe any covenant, condition or agreement contained in
this Agreement (other than the payment obligations, the breach of which shall be
governed by  subsection  (a) above)  where such failure is not cured within five
(5) Business Days, or any  representation or warranty made or deemed made by any
of them under or in  connection  with this  Agreement  shall  prove to have been
false or misleading in any material respect when made.

      (c) Cross-Default. The occurrence and continuance of a default or event of
default under any of the documents contemplated by the SBIB Term Sheet.

      (d) Liens. Borrower creates,  incurs, assumes or suffers to exist any Lien
upon or with  respect to any of its  properties  or assets  whether now owned or
hereafter acquired,  including,  without limitation,  any governmental,  tax, or
judgment Lien, other than Permitted Liens, and fails to have the same removed or
released within two Business Days after the creation thereof.

                                       5
<PAGE>

      (e)  Insolvency.  Borrower  shall become  insolvent;  admit in writing its
inability to pay its debts as they mature; make an assignment for the benefit of
creditors;  or if bankruptcy  proceedings or other  proceedings for relief under
any  bankruptcy  law or any law for the relief of debtors shall be instituted by
or against it and, if instituted  against it, the same is not  dismissed  within
sixty (60) days of the filing thereof.

      (f) Dissolution.  Any order,  judgment, or decree shall be entered against
Borrower decreeing its involuntary  dissolution or split up and such order shall
remain  undischarged  and unstayed for a period in excess of sixty (60) days; or
Borrower shall otherwise dissolve or cease to exist.

      (g)  Certain  Judgments  and  Orders.  A levy  or writ  of  attachment  or
garnishment  or other like judicial  process is filed or issued  against or upon
Borrower,  or a final  judgment  or order for the  payment of money in excess of
$500,000  which is not fully covered by insurance is rendered  against  Borrower
and remains  unpaid,  unbonded,  unvacated  or unstayed  for a period of 30 days
after the entry thereof.

8.  Remedies.  If an Event of Default shall occur,  (a) all amounts  outstanding
hereunder and under the Notes, notwithstanding any term of this Agreement or the
Notes to the contrary,  shall at Agent's  option and without  notice to Borrower
become  immediately due and payable,  without  presentment,  demand,  protest or
notice of dishonor,  all of which are hereby expressly  waived by Borrower,  and
(b) Agent shall have all rights,  powers and remedies  available  hereunder,  or
accorded by law.  All rights,  powers and remedies of Agent in  connection  with
this Agreement and the Notes may be exercised at any time by Agent and from time
to time after the  occurrence  of an Event of Default,  are  cumulative  and not
exclusive,  and shall be in  addition  to any other  rights,  powers or remedies
provided by law or equity.

9. Agent.

      (a)  Appointment  and  Authorization.  Each  Lender,  for  itself  and its
successors  and assigns,  hereby  irrevocably  appoints  Agent as its agent (and
Agent hereby accepts such appointment) to take such actions on its behalf and to
exercise such powers under this  Agreement or the Notes as are herein or therein
delegated to Agent or are, in the judgment of Agent,  reasonably  incidental  to
the rights and powers so delegated.  Agent shall not by reason of this Agreement
have any fiduciary  relationship to any Lender, but shall act solely as an agent
for  Lenders;  nor shall  Agent have any  agency or  fiduciary  relationship  to
Borrower.  The  provisions of this Section 9 are solely for the benefit of Agent
and  Lenders,  and  Borrower  shall have no right as a third  party  beneficiary
hereof.

      (b) Approval of Lenders. In performing its functions under this Agreement,
except as otherwise  expressly  provided herein,  Agent shall have the authority
(but not the obligation),  on behalf of Lenders,  to make any decision,  to take
any action or refrain  from  taking any action and to give any consent or waiver
that it may deem  advisable;  provided,  however,  that the written  approval of
Lenders shall be required for any amendment, modification, termination or waiver
of any provision of this  Agreement or the Notes,  or any action or assertion of
rights (or any  rescission  of any such action or assertion  of rights)  against
Borrower upon the occurrence of an Event of Default.

      (c) No Implied Duties; Agent's Exercise of Discretion. The only duties and
obligations  of Agent  under  this  Agreement  or the Notes are those  which are
expressly  set forth  herein or  therein.  Agent  shall be  entitled  to use its
discretion in exercising or refraining  from  exercising any rights which may be
so vested in it, or in taking or refraining  from taking any action which it may
be so empowered to take,  unless the matter is one as to which Agent may not act
or refrain from acting without the prior written approval of Lenders pursuant to
Section 9(b) above.  Notwithstanding the foregoing,  Agent shall not be required
to act or not act in  accordance  with Lenders'  instructions  if to do so would
result, in the reasonable  judgment of Agent, in a substantial risk of liability
to Agent or would be contrary to this Agreement or the Notes or applicable law.

                                       6
<PAGE>

      (d) Indemnification.  Lenders, severally, shall indemnify, defend and hold
harmless Agent and its shareholders,  directors,  officers,  employees,  agents,
attorneys  and  Affiliates  and their  respective  successors  and assigns  (the
"Agent's  Parties") pro rata according to their respective pro rata interests in
the Term Loan, from and against any and all liabilities,  obligations,  demands,
losses, damages,  penalties,  actions, judgments, suits, claims, costs, expenses
(including,  without  limitation,  attorneys' fees and expenses and court costs,
whether or not suit is filed) or disbursements of any kind or nature  whatsoever
which may be imposed on, incurred by or asserted  against Agent's Parties in any
way relating to or arising out of this Agreement,  the Notes or any action taken
or omitted to be taken by Agent's  Parties in connection  with this Agreement or
the Notes,  except  that no Lender  shall be liable to Agent's  Parties  for any
portion of such liabilities,  obligations,  losses, damages, penalties, actions,
judgments,  suits, claims, costs,  expenses or disbursements  resulting from the
gross negligence or willful misconduct of any of Agent's Parties.  Further, each
Lender,  severally,  shall reimburse Agent upon demand for that Lender's ratable
share of any  costs  or  expenses  incurred  by  Agent  in  connection  with the
amendment,   waiver,  refinancing,   restructuring  (including  a  restructuring
incident to a bankruptcy reorganization) or enforcement of this Agreement or the
Notes.

10. Miscellaneous.

      (a) Failure or Indulgence  Not Waiver.  No failure or delay on the part of
Agent,  Lender,  or any holder of a Note in the exercise of any power,  right or
privilege  hereunder shall operate as a waiver thereof,  nor shall any single or
partial exercise thereof or of any other right, power or privilege.

      (b) Modification. No modification, amendment or waiver of any provision of
this  Agreement  or the Notes,  nor the  consent to any  departure  by  Borrower
therefrom,  shall in any event be  effective  unless  the same  shall  have been
approved  by Agent  and  Lenders  and  shall be in  writing  signed by Agent and
Lenders and,  with respect to any  amendment,  Borrower.  Such waiver or consent
shall then be effective  only in the  specific  instance and for the purpose for
which  given.  No  notice to or demand on  Borrower  in any case  shall  entitle
Borrower to any other or further notice or demand in the same,  similar or other
circumstances.

      (c) Notices.  Except as otherwise  expressly  provided herein,  any notice
herein required or permitted to be given shall be in writing and shall be deemed
effective when personally delivered,  mailed, telecopied (with a confirming copy
sent by mail) or delivered by telex to the appropriate  party at the address set
forth below (or at such other  address as may be designated by either party in a
written notice sent in accordance with this Section):

If  to  Borrower:     Worldwater  Corp.
                      Pennington  Business  Park
                      55  Route  31  South
                      Pennington,  New  Jersey
                      Attention:  President
                      Telecopy  No.:  609-818-0720

If  to  Hong          Hong  Kong  League  Central  Credit  Union
Kong  League          Party  Room  1-2,  G/F,  Kam  Wah  House
Central  Credit       Choi  Hung  Estate,  Kowloon,  Hong  Kong
Union:                Telecopy  No.:  +852-3101-0332

with  a  copy  to:    SBI  Advisors,  LLC
                          2361 Campus Drive, Suite 210
                      Irvine,  CA  92612
                      Telecopy  No.:  949-679-7280

If to HIT
Credit Union:         HIT  Credit  Union
                      Berth 4, Block 2, 2/F Container Port Road, South Kwai
                      Chung New Territories, Hong Kong Telecopy No.:
                      +852-3101-0332

with  a  copy  to:    SBI  Advisors,  LLC
                          2361 Campus Drive, Suite 210
                      Irvine,  CA  92612
                      Telecopy  No.:  949-679-7280

If  to  Agent:        SBI  Advisors,  LLC
                          2361 Campus Drive, Suite 210
                      Irvine,  CA  92612
                      Telecopy  No.:  949-679-7280

                                       7
<PAGE>

      (d)  Severability.  In case any  provision in this  Agreement or the Notes
shall be invalid,  illegal or  unenforceable,  such provision shall be severable
from  the   remainder  of  such   contract  and  the   validity,   legality  and
enforceability  of the remaining  provisions shall not in any way be affected or
impaired thereby.

      (e)  Applicable  Law.  This  Agreement,  the  Notes  and  the  rights  and
obligations of the parties thereto shall be governed by the laws of the State of
California,  exclusive  of its  conflicts  of laws and choice of laws rules that
would or may cause the  application of the laws of any  jurisdiction  other than
the State of California.

      (f)  Assignability.  Borrower  shall not assign its rights or  obligations
hereunder,  or under the Notes to any other  Person  without  the prior  written
consent of Agent and Lenders,  and any attempted  assignment in violation hereof
shall be null and void ab  initio.  Agent and  Lenders  shall  have the right to
assign their rights and  obligations  hereunder  and no consent or approval from
Borrower is required in connection with any such assignment.

      (g)  Counterparts.   This  Agreement  may  be  executed  in  two  or  more
counterparts,  each of  which  shall  be  deemed  an  original  but all of which
together shall constitute one and the same instrument.

      (h) Section  Headings.  The various  headings  used in this  Agreement are
inserted   for   convenience   only  and  shall  not  affect   the   meaning  or
interpretations of this Agreement or any provision hereof.

      (i)  Attorneys'  Fees.  In the event any party  institutes  any  action or
proceeding to enforce the terms and  conditions of this  Agreement or the Notes,
the prevailing party shall be entitled to reasonable attorneys' fees and costs.

      (j) WAIVER OF TRIAL BY JURY. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
AND  COVENANTS  THAT IT WILL NOT ASSERT  (WHETHER  AS  PLAINTIFF,  DEFENDANT  OR
OTHERWISE),  ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN  RESPECT  OF ANY  ISSUE,
CLAIM,  DEMAND,  ACTION OR CAUSE OF  ACTION  ARISING  OUT OF OR BASED  UPON THIS
AGREEMENT,  THE NOTES,  OR THE SUBJECT MATTER HEREOF AND THEREOF OR ANY DOCUMENT
RELATING  HERETO OR  THERETO,  IN EACH CASE  WHETHER NOW  EXISTING OR  HEREAFTER
ARISING OR WHETHER IN CONTRACT, TORT OR OTHERWISE.

      (k) Integration. This Agreement, the Notes and the Exhibits hereto reflect
the  entire  understanding  of the  parties  with  respect  to the  transactions
contemplated  hereby and shall not be  contradicted  or  qualified  by any other
agreement, oral or written, whether before or after the date hereof.

                                       8
<PAGE>

IN WITNESS WHEREOF, the parties hereto do execute this Agreement as of the date
first above written.

"BORROWER"

WORLDWATER  CORP.,  a  Delaware  corporation

By:  _______________________________________
Name:  _____________________________________
Its:

"AGENT"

SBI  ADVISORS,  LLC,  solely  in  its  capacity  as  Agent  hereunder

By:   ______________________________________
Name:  _____________________________________
Its:   _____________________________________

"LENDERS"

HONG  KONG  LEAGUE  CENTRAL  CREDIT  UNION

By:  _______________________________________
Name:  _____________________________________
Its:   _____________________________________

HIT  CREDIT  UNION

By:  _______________________________________
Name:  _____________________________________
Its:   _____________________________________

EXHIBITS

Exhibit  "A-1"  -  Term  Note  (Hong  Kong  League)

Exhibit  "A-2"  -  Term  Note  (HIT  Credit  Union)

Exhibit  "B"  -    Warrant

Exhibit  "C"  -    Registration  Rights  Agreement

                                       9
<PAGE>

                                   EXHIBIT A-1

                          OF THE TERM CREDIT AGREEMENT

                                FORM OF TERM NOTE

                                    TERM NOTE
                                    ---------

U.S. $694,736.84 Los Angeles, California
                                                                  March 29, 2004

      FOR  VALUE  RECEIVED,  the  undersigned,   WORLDWATER  CORP.,  a  Delaware
corporation  (the  "Borrower"),  HEREBY  UNCONDITIONALLY  PROMISES TO PAY to the
order of HONG KONG LEAGUE CENTRAL CREDIT UNION (the "Lender"), without offset or
counterclaim,  the  principal  sum of Six  Hundred  Ninety Four  Thousand  Seven
Hundred Thirty-Six Dollars and Eighty Four  Cents(U.S.$694,736.84)  on or before
the Maturity Date (as such term is defined in the Credit  Agreement  referred to
below).  The  Borrower  further  promises  to  pay  interest  on the  Term  Loan
outstanding  hereunder from time to time at the interest  rates,  and payable on
the dates, set forth in the Credit Agreement  referred to below.  This Term Note
may be  prepaid  at any time  prior to the  Maturity  Date  without  premium  or
penalty.

      1. Payment. Both principal and interest are payable in lawful money of the
United  States of America and in  immediately  available  funds to the Lender at
Berth 4, Block 2, 2/F,  Container Port Road,  South Kwai Chung, New Territories,
Hong Kong,  or such  other  place as the Agent may  designate  in writing to the
Borrower from time to time.

      2. Record  Keeping.  The Agent shall  record the amount of  principal  and
interest due and payable from time to time  hereunder,  each payment thereof and
the resulting unpaid principal balance hereof, in the Lender's internal records,
and any  such  recordation  shall  be  rebuttable  presumptive  evidence  of the
accuracy of the information so recorded;  provided,  however,  that the Lender's
failure so to record shall not limit or otherwise  affect the obligations of the
Borrower  hereunder and under the Credit Agreement to repay the principal of and
interest on the Term Loan.

      3. Credit  Agreement.  This Term Note is one of the Notes  referred to in,
and is subject to and  entitled to the  benefits  of, that  certain  Term Credit
Agreement,  dated of even  date  herewith  (as  amended,  modified,  renewed  or
extended from time to time, the "Credit  Agreement")  between the Borrower,  the
Lender,  and certain other parties  thereto.  Unless  otherwise  defined herein,
capitalized  terms used herein shall have the  respective  meanings  assigned to
them in the Credit Agreement. The Credit Agreement provides, among other things,
for  acceleration  (which in certain  cases shall be  automatic) of the maturity
hereof  upon the  occurrence  of certain  stated  events,  in each case  without
presentment,  demand,  protest or further  notice of any kind,  all of which are
hereby expressly waived.

      4.  Limitation on Interest  Rate. In no  contingency  or event  whatsoever
shall the aggregate of all amounts deemed interest hereunder or under the Credit
Agreement and charged or collected by the Lender or any holder of this Term Note
exceed the highest  rate  permissible  under any law which a court of  competent
jurisdiction  shall, in a final  determination,  deem applicable  hereto. In the
event  that such a court  determines  that the Lender  has  charged or  received
interest  hereunder  or under the  Credit  Agreement  in  excess of the  highest
applicable  rate,  the rate in effect  hereunder and under the Credit  Agreement
shall  automatically  be reduced to the maximum rate permitted by applicable law
and the Lender  shall apply all  interest  paid in excess of the maximum  lawful
rate to reduce the principal  balance of the amounts  outstanding  hereunder and
under the Credit  Agreement.  It is the intent of the  parties  hereto  that the
Borrower not pay or contract to pay, and that the Lender not receive or contract
to receive, directly or indirectly in any manner whatsoever,  interest in excess
of the maximum  rate of interest  that may be paid by the Borrower to the Lender
under applicable law.

      5.  Governing  Law.  THIS TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, EXCLUSIVE OF ITS CONFLICTS
OF LAWS AND CHOICE OF LAWS RULES THAT WOULD OR MAY CAUSE THE  APPICATION  OF THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF CALIFORNIA.

WORLDWATER  CORP.

By:  ___________________________
Name:  _________________________
Its:  __________________________

                                      A-1
<PAGE>

                                   EXHIBIT A-2

                          OF THE TERM CREDIT AGREEMENT

                                FORM OF TERM NOTE

                                    TERM NOTE
                                    ---------

U.S. $105,263.16 Los Angeles, California
                                                                  March 29, 2004

      FOR  VALUE  RECEIVED,  the  undersigned,   WORLDWATER  CORP.,  a  Delaware
corporation  (the  "Borrower"),  HEREBY  UNCONDITIONALLY  PROMISES TO PAY to the
order of HIT CREDIT UNION (the "Lender"),  without offset or  counterclaim,  the
principal  sum of One Hundred Five  Thousand Two Hundred Sixty Three Dollars and
Sixteen Cents  (U.S.$105,263.16) on or before the Maturity Date (as such term is
defined  in the  Credit  Agreement  referred  to below).  The  Borrower  further
promises to pay  interest on the Term Loan  outstanding  hereunder  from time to
time at the interest  rates,  and payable on the dates,  set forth in the Credit
Agreement  referred to below. This Term Note may be prepaid at any time prior to
the Maturity Date without premium or penalty.

      1. Payment. Both principal and interest are payable in lawful money of the
United  States of America and in  immediately  available  funds to the Lender at
Berth 4, Block 2, 2/F,  Container Port Road,  South Kwai Chung, New Territories,
Hong Kong,  or such  other  place as the Agent may  designate  in writing to the
Borrower from time to time.

      2. Record  Keeping.  The Agent shall  record the amount of  principal  and
interest due and payable from time to time  hereunder,  each payment thereof and
the resulting unpaid principal balance hereof, in the Lender's internal records,
and any  such  recordation  shall  be  rebuttable  presumptive  evidence  of the
accuracy of the information so recorded;  provided,  however,  that the Lender's
failure so to record shall not limit or otherwise  affect the obligations of the
Borrower  hereunder and under the Credit Agreement to repay the principal of and
interest on the Term Loan.

      3. Credit  Agreement.  This Term Note is one of the Notes  referred to in,
and is subject to and  entitled to the  benefits  of, that  certain  Term Credit
Agreement,  dated of even  date  herewith  (as  amended,  modified,  renewed  or
extended from time to time, the "Credit  Agreement")  between the Borrower,  the
Lender,  and certain other parties  thereto.  Unless  otherwise  defined herein,
capitalized  terms used herein shall have the  respective  meanings  assigned to
them in the Credit Agreement. The Credit Agreement provides, among other things,
for  acceleration  (which in certain  cases shall be  automatic) of the maturity
hereof  upon the  occurrence  of certain  stated  events,  in each case  without
presentment,  demand,  protest or further  notice of any kind,  all of which are
hereby expressly waived.

      4.  Limitation on Interest  Rate. In no  contingency  or event  whatsoever
shall the aggregate of all amounts deemed interest hereunder or under the Credit
Agreement and charged or collected by the Lender or any holder of this Term Note
exceed the highest  rate  permissible  under any law which a court of  competent
jurisdiction  shall, in a final  determination,  deem applicable  hereto. In the
event  that such a court  determines  that the Lender  has  charged or  received
interest  hereunder  or under the  Credit  Agreement  in  excess of the  highest
applicable  rate,  the rate in effect  hereunder and under the Credit  Agreement
shall  automatically  be reduced to the maximum rate permitted by applicable law
and the Lender  shall apply all  interest  paid in excess of the maximum  lawful
rate to reduce the principal  balance of the amounts  outstanding  hereunder and
under the Credit  Agreement.  It is the intent of the  parties  hereto  that the
Borrower not pay or contract to pay, and that the Lender not receive or contract
to receive, directly or indirectly in any manner whatsoever,  interest in excess
of the maximum  rate of interest  that may be paid by the Borrower to the Lender
under applicable law.

      5.  Governing  Law.  THIS TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, EXCLUSIVE OF ITS CONFLICTS
OF LAWS AND CHOICE OF LAWS RULES THAT WOULD OR MAY CAUSE THE  APPICATION  OF THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF CALIFORNIA.

WORLDWATER  CORP.

By:  ____________________________
Name:  __________________________
Its:  ___________________________

                                      A-2EXHIBIT 10.3

                             STOCK PURCHASE WARRANT

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES
REPRESENTED HEREBY MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE SECURITIES LAWS
UNLESS OFFERED, SOLD OR TRANSFERRED UNDER AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THOSE LAWS. NOTWITHSTANDING THE FOREGOING, THESE
SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY SUCH SECURITIES.

Date:  March  29,  2004
                                WORLDWATER CORP.
                             STOCK PURCHASE WARRANT

     THIS CERTIFIES THAT, for value received, SBI ADVISORS LLC ("SBI") or its
registered assigns, is entitled to purchase from WORLDWATER CORP., a Delaware
corporation (the "Company"), at any time or from time to time during the
Exercise Period (as defined in Section 2 hereof), Four Hundred Thousand
(400,000) fully paid and nonassessable shares of the Company's common stock,
(the "Common Stock"), at an exercise price per share (the "Exercise Price") of
$.30 (the "Warrant"). The number of shares of Common Stock purchasable hereunder
(the "Warrant Shares") and the Exercise Price are subject to adjustment as
provided in Section 4 hereof.

     This Warrant is subject to the following terms, provisions and conditions:

     1. (a) Manner of Exercise; Issuance of Certificates. Subject to the
provisions hereof, including, without limitation, the limitations contained in
Section 7 hereof, this Warrant may be exercised at any time during the Exercise
Period by the holder hereof, in whole or in part, by delivery of a completed
exercise agreement in the form attached hereto (the "Exercise Agreement"), to
the Company by 5 p.m. California time on any Business Day at the Company's
principal executive offices (or such other office or agency of the Company as it
may designate by notice to the holder hereof) and upon payment to the Company as
provided in Section 1(b) below of the applicable Exercise Price for the Warrant
Shares specified in the Exercise Agreement. The Warrant Shares so purchased
shall be deemed to be issued to the holder hereof or such holder's designee, as
the record owner of such shares, as of the close of business on the date on
which this Warrant shall have been surrendered and the completed Exercise
Agreement shall have been delivered and payment shall have been made for such
shares as set forth above or, if such day is not a Business Day, on the next
succeeding Business Day. The Warrant Shares so purchased, representing the
aggregate number of shares specified in the Exercise Agreement, shall be
delivered to the holder hereof within a reasonable time, not exceeding five (5)
Business Days, after this Warrant shall have been so exercised (the "Delivery
Period"). If the Company's transfer agent is participating in the Depository
Trust Company ("DTC") Fast Automated Securities Transfer program, and so long as
the certificates therefore do not require a legend and the holder is not
obligated to return such certificate for the placement of a legend thereon, the
Company shall cause its transfer agent to electronically transmit the Warrant
Shares so purchased to the holder by crediting the account of the holder or its
nominee with DTC through its Deposit Withdrawal Agent Commission system ("DTC
Transfer"). If the aforementioned conditions to a DTC Transfer are not
satisfied, the Company shall deliver to the holder physical certificates
representing the Warrant Shares so purchased. Further, the holder may instruct
the Company to deliver to the holder physical certificates representing the
Warrant Shares so purchased in lieu of delivering such shares by way of DTC
Transfer. Any certificates so delivered shall be in such denominations as may be
requested by the holder hereof, shall be registered in the name of such holder
or such other name as shall be designated by such holder and, following the date
on which the Warrant Shares may be sold by the holder pursuant to Rule 144(k)
promulgated under the Securities Act (or a successor rule), shall not bear any
restrictive legend. If this Warrant shall have been exercised only in part,
then, unless this Warrant has expired, the Company shall, at its expense, at the
time of delivery of such certificates, deliver to the holder a new Warrant
representing the number of shares with respect to which this Warrant shall not
then have been exercised.

     (b) Payment of Exercise Price. The holder shall pay the Exercise Price in
immediately available funds; provided, however, the holder hereof may satisfy
its obligation to pay the Exercise Price through a "cashless exercise," in which
event the Company shall issue to the holder hereof the number of Warrant Shares
determined as follows:

     X  =  Y  [(A-B)/A]

     where:

     X   = the  number  of  Warrant  Shares  to  be  issued  to  the  holder.

     Y   = the number of Warrant Shares with respect to which this Warrant is
           being exercised.

     A   = the average of the Closing Prices for the five trading days
           immediately prior to (but not including) the Exercise Date.

     B  =  the  Exercise  Price.

     For purposes of Rule 144 promulgated under the Securities Act, it is
intended, understood and acknowledged that the Warrant Shares issued in a
cashless exercise transaction shall be deemed to have been acquired by the
holder hereof, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the
Advisory Agreement.

                                       1
<PAGE>

     2. Period of Exercise. This Warrant may be exercised at any time or
from time to time (an "Exercise Date") during the period (the "Exercise Period")
beginning on (a) the date hereof and ending (b) at 5:00 p.m., California time,
five years from the effective date of a registration statement covering the
resale of the Warrant Shares (provided such registration is effective during the
entire six month period).

     3. Certain Agreements of the Company. The Company hereby covenants and
agrees  as  follows:

     (a) Shares to be Fully Paid. All Warrant Shares will, upon issuance in
accordance with the terms of this Warrant, be validly issued, fully paid and
nonassessable and free from all taxes, liens, claims and encumbrances (except
for restrictions existing under applicable securities laws).

     (b) Reservation of Shares. During the Exercise Period, the Company
shall at all times have authorized, and reserved for the purpose of issuance
upon exercise of this Warrant, a sufficient number of shares of Common Stock to
provide for the exercise in full of this Warrant (without giving effect to the
limitations on exercise set forth in Section 7(h) hereof).

     (c) Listing. The Company has secured the listing of the shares of
Common Stock issuable upon exercise of or otherwise pursuant to this Warrant
upon each national securities exchange or automated quotation system, if any,
upon which shares of Common Stock are then listed or become listed (subject to
official notice of issuance upon exercise of this Warrant) and shall maintain,
so long as any other shares of Common Stock shall be so listed, such listing of
all shares of Common Stock from time to time issuable upon the exercise of or
otherwise pursuant to this Warrant; and the Company shall so list on each
national securities exchange or automated quotation system, as the case may be,
and shall maintain such listing of, any other shares of capital stock of the
Company issuable upon the exercise of or otherwise pursuant to this Warrant if
and so long as any shares of the same class shall be listed on such national
securities exchange or automated quotation system.

     (d) Certain Actions Prohibited. The Company will not, by amendment of
its Articles of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed by it hereunder, but will at all times in
good faith assist in the carrying out of all the provisions of this Warrant.
Without limiting the generality of the foregoing, without consent of the holder,
the Company will take all such actions as may be necessary or appropriate in
order that the Company may validly and legally authorize and issue fully paid
and nonassessable shares of Common Stock upon the exercise of this Warrant, not
subject to preemptive rights.

      (e) Successors and Assigns.  This Warrant shall be binding upon any entity
succeeding to the Company by merger,  consolidation,  or  acquisition  of all or
substantially all of the Company's assets.

      (f) Blue Sky Laws. The Company shall, on or before the date of issuance of
any Warrant Shares, take such actions as the Company shall reasonably  determine
are  necessary to qualify the Warrant  Shares for, or obtain  exemption  for the
Warrant Shares for, sale to the holder of this Warrant upon the exercise  hereof
under  applicable  securities  or "blue  sky" laws of the  states of the  United
States,  and shall provide evidence of any such action so taken to the holder of
this Warrant prior to such date; provided,  however,  that the Company shall not
be required  to qualify as a foreign  corporation  or file a general  consent to
service of process in any such jurisdiction.

      4. Antidilution Provisions. During the Exercise Period, the Exercise Price
and the number of Warrant  Shares  issuable  upon the exercise of the  Warrants,
shall be subject to adjustment from time to time as provided in this Section 4.

     In the event that any adjustment of the Exercise Price as required herein
results in a fraction of a cent, such Exercise Price shall be rounded up or down
to the nearest cent; provided that, in no event shall the Exercise Price per
share be reduced below $0.01.

                                       2
<PAGE>

      (a)  Subdivision or Combination  of Common Stock.  If the Company,  at any
time during the Exercise Period, subdivides (by any stock split, stock dividend,
recapitalization,  reorganization,  reclassification or otherwise) its shares of
Common Stock into a greater number of shares, then, after the date of record for
effecting such  subdivision,  the Exercise Price in effect  immediately prior to
such subdivision will be proportionately  reduced.  If the Company,  at any time
during the Exercise Period, combines (by reverse stock split,  recapitalization,
reorganization, reclassification or otherwise) its shares of Common Stock into a
smaller  number of shares,  then,  after the date of record for  effecting  such
combination,  the Exercise Price in effect immediately prior to such combination
will be proportionately increased.

      (b)  Adjustment  for  Issuance of Common  Stock at Less Than the  Exercise
Price.  If and whenever any Additional  Common Stock (as defined below) shall be
issued by the Company (the "Common  Stock Issue Date") for a  consideration  per
share less than the Exercise  Price,  then in each such case the Exercise  Price
shall be reduced  to a new  Exercise  Price in an amount  equal to the price per
share for the Additional  Common Stock then issued, if issued in connection with
a sale of shares,  or the value of the Additional  Common Stock then issued,  as
determined in accordance  with  generally  accepted  accounting  principles,  if
issued other than for cash,  and the number of shares  issuable to the holder of
the Warrant upon conversion shall be proportionately increased; and, in the case
of Additional  Common Stock issued  without  consideration,  the Exercise  Price
shall be reduced in amount and the number of shares issued upon conversion shall
be  increased in an amount so as to maintain for the holder the right to convert
the Warrant into Warrant Shares equal in amount to the same percentage  interest
in the  Common  Stock of the  Company  as  existed  for the  holder  immediately
preceding the Common Stock Issue Date. The term "Additional Common Stock" herein
shall mean all shares of Common Stock or securities  convertible  or exercisable
into shares of Common Stock hereafter  issued by the Company  (including  Common
Stock held in the treasury of the Company),  except (A) Common Stock issued upon
the  conversion  of any of the  Warrants;  or (B)  Common  Stock  issuable  upon
exercise of employee or director stock options;

      (c) Adjustment in Number of Shares.  Upon each  adjustment of the Exercise
Price  pursuant  to the  provisions  of  this  Section  4 other  than a  Company
Reduction  as  defined  in Section  4(l),  the number of shares of Common  Stock
issuable  upon exercise of this Warrant shall be increased or decreased to equal
the quotient  obtained by dividing (i) the product of (A) the Exercise  Price in
effect  immediately  prior to such  adjustment,  multiplied by (B) the number of
shares of Common Stock issuable upon exercise of this Warrant  immediately prior
to such adjustment, by (ii) the adjusted Exercise Price.

      (d)  Consolidation,  Merger or Sale. In case of any  consolidation  of the
Company with, or merger of the Company into, any other entity, or in case of any
sale or  conveyance  of all or  substantially  all of the assets of the  Company
other than in connection  with a plan of complete  liquidation of the Company at
any time during the Exercise Period,  then as a condition of such consolidation,
merger or sale or conveyance, adequate provision will be made whereby the holder
of this Warrant will have the right to acquire and receive upon exercise of this
Warrant in lieu of the shares of Common Stock immediately theretofore acquirable
upon the exercise of this  Warrant,  such shares of stock,  securities,  cash or
assets as may be issued or payable with respect to or in exchange for the number
of shares of Common Stock immediately theretofore acquirable and receivable upon
exercise of this Warrant had such  consolidation,  merger or sale or  conveyance
not taken place. In any such case, the Company will make  appropriate  provision
to cause the  provisions of this Section 4 thereafter to be applicable as nearly
as  may  be in  relation  to  any  shares  of  stock  or  securities  thereafter
deliverable  upon the exercise of this Warrant.  The Company will not effect any
consolidation,  merger or sale or conveyance of all or substantially  all of its
assets unless prior to the consummation  thereof, the successor entity (if other
than the  Company)  assumes by written  instrument  the  obligations  under this
Warrant and the obligations to deliver to the holder of this Warrant such shares
of stock,  securities or assets as, in accordance with the foregoing provisions,
the holder may be entitled to acquire.

      (e) Distribution of Assets.  In case the Company shall declare or make any
distribution  of its assets  (other  than cash) (or rights to acquire its assets
(other  than  cash)) to all  holders  of Common  Stock as a partial  liquidating
dividend, stock repurchase,  by way of return of capital or otherwise (including
any dividend or distribution to the Company's  stockholders of shares (or rights
to acquire shares) of capital stock of a subsidiary) (a "Distribution"),  at any
time during the Exercise  Period,  then,  upon  exercise of this Warrant for the
purchase of any or all of the shares of Common Stock subject hereto,  the holder
of this Warrant shall be entitled to receive its pro-rata  amount of such assets
(or such  rights) as would have been  payable to the holder had such holder been
the  holder  of  such  shares  of  Common  Stock  on the  record  date  for  the
determination of stockholders entitled to such Distribution.

                                       3
<PAGE>

      (f) Notice of Adjustment.  Upon the occurrence of any event which requires
any  adjustment of the Exercise  Price then,  and in each such case, the Company
shall give notice  thereof to the holder of this  Warrant,  which  notice  shall
state the Exercise  Price  resulting  from such  adjustment  and the increase or
decrease in the number of Warrant Shares issuable upon exercise of this Warrant,
setting forth in reasonable  detail the method of calculation and the facts upon
which such  calculation  is based.  Such  calculation  shall be certified by the
chief financial officer of the Company.

      (g)  Minimum  Adjustment  of the  Exercise  Price.  No  adjustment  of the
Exercise  Price shall be made in an amount of less than 1% of the Exercise Price
in effect at the time such adjustment is otherwise  required to be made, but any
such lesser  adjustment  shall be carried  forward and shall be made at the time
and  together  with the next  subsequent  adjustment  which,  together  with any
adjustments  so  carried  forward,  shall  amount  to not  less  than 1% of such
Exercise Price.

      (h) No Fractional  Shares.  No fractional shares of Common Stock are to be
issued upon the  exercise  of this  Warrant,  but the  Company  shall pay a cash
adjustment in respect of any fractional  share which would otherwise be issuable
in an amount  equal to the same  fraction of the closing bid price of a share of
Common Stock on the Principal Market on the date of such exercise.

      (i) Other Notices. In case at any time:

            (i) the Company  shall  declare any  dividend  upon the Common Stock
      payable  in shares  of stock of any  class or make any other  distribution
      (other than  dividends  or  distributions  payable in cash out of retained
      earnings  consistent  with the Company's  past  practices  with respect to
      declaring dividends and making distributions) to the holders of the Common
      Stock;

            (ii)  the  Company  shall  offer  for  subscription  pro rata to the
      holders of the Common Stock any additional shares of stock of any class or
      other rights;

            (iii) there shall be any capital  reorganiza-tion of the Company, or
      reclassification  of the Common Stock, or  consolidation  or merger of the
      Company with or into, or sale of all or  substan-tially  all of its assets
      to, another corporation or entity; or

            (iv)  there  shall  be  a  voluntary  or  involuntary   dissolution,
      liquidation  or  winding-up of the Company;  then, in each such case,  the
      Company shall give to the holder of this Warrant

                  (a) notice of the date or estimated date on which the books of
            the Company  shall close or a record shall be taken for  determining
            the holders of Common Stock entitled to receive any such  divi-dend,
            distribution,  or subscription rights or for determining the holders
            of  Common   Stock   entitled   to  vote  in  respect  of  any  such
            reorganization,   reclassification,   consolidation,  merger,  sale,
            dissolution,  liquidation  or winding-up  and (b) in the case of any
            such reorganization, reclassification,  consolidation, merger, sale,
            dissolution,  liquidation or winding-up,  notice of the date (or, if
            not then known, a reasonable  estimate  thereof by the Company) when
            the same shall take place.  Such notice  shall also specify the date
            on which the  holders of Common  Stock  shall be entitled to receive
            such dividend,  distribution,  or subscription rights or to exchange
            their  Common  Stock  for  stock or  other  securities  or  property
            deliverable    upon    such    reorganization,    re-classification,
            consolidation,   merger,   sale,   dissolution,    liquidation,   or
            winding-up,  as the case may be. Such notice shall be given at least
            fifteen  (15) days prior to the record date or the date on which the
            Company's books are closed in respect  thereto.  Failure to give any
            such notice or any defect  therein  shall not affect the validity of
            the  proceedings  referred to in clauses (i),  (ii),  (iii) and (iv)
            above.  Notwithstanding  the  foregoing,  the Company  may  publicly
            disclose the substance of any notice  delivered  hereunder  prior to
            delivery of such notice to the holder of this Warrant.

      (j) Certain Events.  If, at any time during the Exercise Period, any event
occurs of the type  contemplated by the adjustment  provisions of this Section 4
but not expressly provided for by such provisions,  the Company will give notice
of such event as provided in Section 4(f)  hereof,  and the  Company's  Board of
Directors  will make an  appropriate  adjustment  in the Exercise  Price and the
number of shares of Common  Stock  acquirable  upon  exercise of this Warrant so
that the rights of the holder shall be neither  enhanced nor  diminished by such
event.

                                       4
<PAGE>

      (k) Certain Definitions.

            (i) "Business Day" means any day, other than a Saturday or Sunday or
      a day  on  which  banking  institutions  in the  State  of  New  York  are
      authorized or obligated by law, regulation or executive order to close.

            (ii) "Common  Stock," for  purposes of this Section 4,  includes the
      Common Stock and any  additional  class of stock of the Company  having no
      preference as to dividends or distributions on liquidation,  provided that
      the shares purchasable  pursuant to this Warrant shall include only Common
      Stock in respect of which this Warrant is exercisable, or shares resulting
      from any  subdivision or combination of such Common Stock,  or in the case
      of any reorganization, reclassification, consolidation, merger, or sale of
      the  character  referred  to in Section  4(d)  hereof,  the stock or other
      securities or property provided for in such Section.

            (iii) "Principal Market" means the  Over-the-Counter  Bulletin Board
      or, if the  Common  Stock is not traded on the  Over-the-Counter  Bulletin
      Board,  then the principal  securities  exchange or trading market for the
      Common Stock.

      5. Issue Tax. The  issuance of  certificates  for Warrant  Shares upon the
exercise  of this  Warrant  shall be made  without  charge to the holder of this
Warrant or such shares for any issuance  tax or other costs in respect  thereof,
provided  that the  Company  shall not be  required  to pay any tax which may be
payable in respect of any transfer  involved in the issuance and delivery of any
certificate in a name other than the holder of this Warrant.

      6. No Rights or  Liabilities  as a  Stockholder.  This  Warrant  shall not
entitle the holder  hereof to any voting rights or other rights as a stockholder
of the  Company.  No provision of this  Warrant,  in the absence of  affirmative
action by the holder hereof to purchase Warrant Shares,  and no mere enumeration
herein of the rights or privileges of the holder hereof,  shall give rise to any
liability  of such  holder for the  Exercise  Price or as a  stockholder  of the
Company,  whether  such  liability is asserted by the Company or by creditors of
the Company.

      7. Transfer, Exchange, Redemption and Replacement of Warrant.

      (a)  Restriction  on Transfer.  This Warrant and the rights granted to the
holder  hereof  are  transferable  in whole or in part,  at any one  time,  upon
surrender of this Warrant,  together with a properly executed  assignment in the
form  attached  hereto,  at the office or agency of the  Company  referred to in
Section 7(e). Until due presentment for registration of transfer on the books of
the Company, the Company may treat the registered holder hereof as the owner and
holder  hereof for all  purposes,  and the Company  shall not be affected by any
notice to the contrary.

      (b) Warrant  Exchangeable  for  Different  Denominations.  This Warrant is
exchangeable,  upon the  surrender  hereof by the holder hereof at the office or
agency of the Company  referred to in Section  7(e) below,  for new  Warrants of
like tenor of different denominations representing in the aggregate the right to
purchase the number of shares of Common Stock which may be purchased  hereunder,
each of such new  Warrant to  represent  the right to  purchase  such  number of
shares  as  shall  be  designated  by the  holder  hereof  at the  time  of such
surrender.

      (c)   Replacement  of  Warrant.   Upon  receipt  of  evidence   reasonably
satisfactory to the Company of the loss,  theft,  destruction,  or mutilation of
this  Warrant and, in the case of any such loss,  theft,  or  destruction,  upon
delivery of an indemnity agreement  reason-ably  satisfactory in form and amount
to the  Company,  or, in the case of any such  mutilation,  upon  surrender  and
cancellation  of this  Warrant,  the Company,  at its expense,  will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

      (d) Cancellation;  Payment of Expenses. Upon the surrender of this Warrant
in connection with any trans-fer,  exchange,  or replacement as provided in this
Section 7, this Warrant shall be promptly  canceled by the Company.  The Company
shall  pay all  taxes  (other  than  securities  transfer  taxes)  and all other
expenses  (other  than  legal  expenses,  if  any,  incurred  by the  holder  or
transferees) and charges payable in connection with the preparation,  execution,
and delivery of Warrants pursuant to this Section 7.

      (e)  Warrant  Register.  The  Company  shall  maintain,  at its  principal
executive  offices  (or such  other  office or agency of the  Company  as it may
designate by notice to the holder hereof), a register for this Warrant, in which
the Company  shall  record the name and address of the person in whose name this
Warrant has been issued,  as well as the name and address of each transferee and
each prior owner of this Warrant.

                                       5
<PAGE>

      (f)  Exercise or  Transfer  Without  Registration.  If, at the time of the
surrender of this Warrant in connection with any exercise, transfer, or exchange
of this  Warrant,  this  Warrant (or, in the case of any  exercise,  the Warrant
Shares issuable hereunder), shall not be registered under the Securities Act and
under applicable state securities or blue sky laws, the Com-pany may require, as
a condition of allowing  such  exercise,  transfer,  or  exchange,  (i) that the
holder or transferee of this Warrant, as the case may be, furnish to the Company
a written  opinion of counsel (which  opinion shall be reasonably  acceptable to
the Company and shall be in form,  substance and scope customary for opinions of
counsel in comparable transactions) to the effect that such exercise,  transfer,
or exchange may be made without  registration under the Securities Act and under
applicable state securities or blue sky laws, (ii) that the holder or transferee
execute and deliver to the Company an investment  letter in form and  sub-stance
reasonably  acceptable  to the  Company  and  (iii)  that the  transferee  be an
"accredited investor" as defined in Rule 501(a) promulgated under the Securities
Act;  provided,  that no such  opinion,  letter,  or  status  as an  "accredited
investor" shall be required in connection  with a transfer  pursuant to Rule 144
under the Securities Act.

      8.  Registration  Rights.  The initial holder of this Warrant (and certain
assignees  thereof) are entitled to the benefit of such  registration  rights in
respect  of the  Warrant  Shares  as are  set  forth  in a  Registration  Rights
Agreement dated as of the date hereof, including the right to assign such rights
to certain assignees, as set forth therein.

      9. Notices.  Any notices required or permitted to be given under the terms
of this Warrant  shall be sent by certified or registered  mail (return  receipt
requested) or delivered  personally or by courier or by confirmed telecopy,  and
shall be effective  five (5) days after being placed in the mail, if mailed,  or
upon receipt or refusal of receipt, if delivered personally or by courier, or by
confirmed  telecopy,  in each case addressed to a party.  The addresses for such
communications shall be:

If  to  SBI:

2361  Campus  Drive,  Suite  210
Irvine,  California  92612
Attn:  Matt  McGovern
Telephone:(949)  679-8326
Telecopier:(949)  679-7280

With  a  copy  to:

Loeb  &  Loeb  LLP
101000  Santa  Monica  Boulevard.,  Suite  2200
Los  Angeles,  California  90067-4164
Attn:     David  Ficksman,  Esq.
Telephone:     (310)  282-2350
Telecopier:    (310)  282-2200

      If to any other holder, at such address as such holder shall have provided
in writing to the Company,  or at such other address as such holder furnishes by
notice given in accordance with this Section 9.

      10. Governing Law; Venue;  Waiver Of Jury Trial. All questions  concerning
the construction, validity, enforcement and interpretation of this warrant shall
be governed by and  construed  and enforced in  accordance  with the laws of the
State of  California.  Each party hereby  irrevocably  submits to the  exclusive
jurisdiction of the state and federal courts sitting in the city of Los Angeles,
California,  for the  adjudication  of any dispute  hereunder  or in  connection
herewith  or with  any  transaction  contemplated  hereby  or  discussed  herein
(including with respect to the enforcement of any of the transaction documents),
and hereby  irrevocably  waives, and agrees not to assert in any suit, action or
proceeding,  any claim that it is not personally  subject to the jurisdiction of
any such court,  that such suit,  action or proceeding  is improper.  Each party
hereby  irrevocably  waives personal  service of process and consents to process
being served in any such suit,  action or  proceeding  by mailing a copy thereof
via  registered  or  certified  mail or  overnight  delivery  (with  evidence of
delivery)  to such party at the  address in effect for  notices to it under this
agreement  and agrees that such service  shall  constitute  good and  sufficient
service of process and notice thereof.  Nothing contained herein shall be deemed
to limit in any way any right to serve  process in any manner  permitted by law.
The Company hereby waives all rights to a trial by jury.

                                       6
<PAGE>

      11. Miscellaneous.

      (a) Except as  provided  in Section  7(h)  hereof,  this  Warrant  and any
provision  hereof may only be amended by an instrument in writing  signed by the
Company and the holder hereof.

      (b) The descriptive  headings of the several  Sections of this Warrant are
inserted  for purposes of  reference  only,  and shall not affect the meaning or
construction of any of the provisions hereof.

      (c) In case any one or more of the  provisions  of this  Warrant  shall be
invalid or unenforceable in any respect,  the validity and enforceability of the
remaining  terms and provisions of this Warrant shall not in any way be affected
or impaired  thereby and the parties  will attempt in good faith to agree upon a
valid  and  enforceable  provision  which  shall  be a  commercially  reasonable
substitute  therefore,  and upon so agreeing,  shall incorporate such substitute
provision in this Warrant.

      (d) Subject to the restrictions on transfer set forth herein, this Warrant
may be assigned by the holder.  This Warrant may not be assigned by the Company.
This Warrant shall be binding on and inure to the benefit of the parties  hereto
and their respective successors and assigns.  Subject to the preceding sentence,
nothing in this Warrant  shall be construed to give to any Person other than the
Company and the holder any legal or equitable  right,  remedy or cause of action
under this Warrant.

      (e) The Company  will not, by  amendment  of its  governing  documents  or
through  any  reorganization,   transfer  of  assets,   consolidation,   merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of the holder hereof against impairment.  Without limiting
the generality of the foregoing, the Company (i) will not increase the par value
of any Warrant Shares above the amount payable therefore on such exercise,  (ii)
will take all such action as may be reasonably necessary or appropriate in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
Warrant  Shares on the  exercise of this  Warrant,  and (iii) will not close its
stockholder  books or  records in any manner  which  interferes  with the timely
exercise of this Warrant.

      (f) In addition to any other rights  available to a holder hereof,  if the
Company fails to deliver to the holder hereof a certificate representing Warrant
Shares  by the fifth  Business  Day  after  the date on which  delivery  of such
certificate  is required by this Warrant,  and if after such fifth  Business Day
the holder hereof purchases (in an open market  transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale by the holder hereof of the
Warrant Shares that the holder hereof anticipated  receiving from the Company (a
"Buy-In"),  then the Company  shall,  within  three (3)  Trading  Days after the
holder hereof  requests and in the discretion of the holder  hereof,  either (i)
pay cash to the holder hereof in an amount equal to the holder's  total purchase
price (including brokerage  commissions,  if any) for the shares of Common Stock
so purchased (the "Buy-In  Price"),  at which point the Company's  obligation to
deliver such certificate  (and to issue such Common Stock) shall  terminate,  or
(ii) promptly honor its obligation to deliver to the holder hereof a certificate
or certificates representing such Common Stock and pay cash to the holder hereof
in an amount  equal to the excess (if any) of the Buy-In  Price over the product
of (A) such number of shares of Common Stock, times (B) the Closing Price on the
date of the event  giving  rise to the  Company's  obligation  to  deliver  such
certificate.  Notwithstanding anything to the contrary, this Section 11(f) shall
not apply if the Company  fails to timely  perform due to the  Transfer  Agent's
failure to timely deliver the  certificates or otherwise  effect the issuance in
accordance with the instructions from the Company.

      (g) The  Company's  obligations  to issue and  deliver  Warrant  Shares in
accordance with the terms hereof are absolute and unconditional, irrespective of
any action or inaction by the holder  hereof to enforce the same,  any waiver or
consent  with  respect to any  provision  hereof,  the  recovery of any judgment
against  any  Person  or  any  action  to  enforce  the  same,  or  any  setoff,
counterclaim,  recoupment,  limitation or termination,  or any breach or alleged
breach by the holder hereof or any other Person of any obligation to the Company
or any  violation or alleged  violation of law by the holder hereof or any other
Person,  and irrespective of any other  circumstance which might otherwise limit
such  obligation  of the  Company to the holder  hereof in  connection  with the
issuance of Warrant  Shares.  Nothing  herein  shall limit a right of the holder
hereof to pursue any other  remedies  available  to it  hereunder,  at law or in
equity including,  without limitation,  a decree of specific  performance and/or
injunctive  relief  with  respect to the  Company's  failure  to timely  deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

      IN WITNESS  WHEREOF,  the Company has caused this  Warrant to be signed by
its duly authorized officer.

WORLDWATER  CORP.

     By:  _________________________
     Name:  _______________________
     Title: ________________________

                                       7
<PAGE>

                           FORM OF EXERCISE AGREEMENT

         (TO BE EXECUTED BY THE HOLDER IN ORDER TO EXERCISE THE WARRANT)

     To:  Worldwater Corp.
          Pennington Business Park
          55 Route 31 South
          Pennington, New Jersey 08534
          Telecopier: 609-818-0720
          Attn: Chief Executive Officer

      The  undersigned  hereby  irrevocably  exercises  the  right  to  purchase
_____________  shares of the Common Stock of  WORLDWATER  CORP.,  a  corporation
organized  under the laws of the State of Nevada  (the  "Company"),  and tenders
herewith payment of the Exercise Price in full, in the amount of $_____________,
in cash,  by  certified  bank check or by wire  transfer  for the account of the
Company or exercises this Warrant pursuant to the "cashless exercise" provisions
thereof; and

      The undersigned agrees not to offer,  sell,  transfer or otherwise dispose
of  any  Common  Stock  obtained  on  exercise  of  the  Warrant,  except  under
circumstances that will not result in a violation of the Securities Act of 1933,
as amended, or any state securities laws.

      The  undersigned  requests  that the Company  cause its transfer  agent to
electronically  transmit the Common  Stock  issuable  pursuant to this  Exercise
Agreement  to  the  account  of  the   undersigned  or  its  nominee  (which  is
_________________)  with DTC  through its Deposit  Withdrawal  Agent  Commission
System ("DTC TRANSFER").

      In lieu of receiving the shares of Common Stock issuable  pursuant to this
Exercise Agreement by way of DTC Transfer,  the undersigned hereby requests that
the Company  cause its  transfer  agent to issue and deliver to the  undersigned
physical certificates representing such shares of Common Stock.

                                       8
<PAGE>

      The  undersigned  requests  that a Warrant  representing  any  unexercised
portion hereof be issued, pursuant to the Warrant, in the name of the Holder and
delivered to the undersigned at the address set forth below:

Dated:_________________                 ____________________________________
                                        Signature  of  Holder

____________________________________
Name  of  Holder  (Print)

Address:
____________________________________

____________________________________

                                       9
<PAGE>

                               FORM OF ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers
all the rights of the undersigned under the attached Warrant, with respect to
the number of shares of Common Stock covered thereby issuable pursuant to the
attached Warrant set forth herein below, to:

Name  of  Assignee               Address                    No  of  Shares
------------------               -------                    --------------

and hereby irrevocably constitutes and appoints __________________________ as
agent and attorney-in-fact to transfer said Warrant on the books of the
within-named corporation, with full power of substitution in the premises.

Dated:  _____________________,  ____

In  the  presence  of

     Name:  ____________________________
     Signature:  _______________________

Title of Signing Officer or Agent (if any):

     Address:  _________________________

     ___________________________________

Note: The above signature should correspond exactly with the name on the face of
      the within Warrant.

                                       10

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