Document:

Exhibit 10.38

 

SERIES D PREFERRED STOCK

CONVERSION AGREEMENT

 

This Series D Preferred
Stock Conversion Agreement (this “Agreement”) is made and entered into as of this _____ day of July, 2014 (the
“Effective Date”) by and between Armada Water Assets, Inc., a Nevada corporation (“Issuer”),
and the stockholder listed on Schedule A hereto (hereafter “Stockholder”).

 

Recitals

 

WHEREAS, Issuer contemplates
an initial public offering through an underwriter in a transaction registered under the Securities Act of 1933, as amended (the
“Securities Act”);

 

WHEREAS, there are
1,500,000 shares of Series D Preferred Stock, $0.0001 par value per share (“Preferred Stock”) issued and outstanding
as of the Effective Date, which are subject to the rights, preferences and privileges set forth in the Amended and Restated Certificate
of Designation of the Series D Preferred Stock as previously filed with the Secretary of State of the State of Nevada on February
10, 2014 as amended on the _____ day of July, 2014 (the “Certificate of Designation”);

 

WHEREAS, Section 5(l)
of the Certificate of Designation allows Issuer and the Stockholder to agree to the conversion of Preferred Stock into shares of
Issuer’s Common Stock, $0.0001 par value per share (“Common Stock”); and

 

WHEREAS, effective
upon closing of the Issuer’s initial public offering, the Stockholder, who is listed on Schedule A hereto, has agreed
to convert all of its shares of Preferred Stock into shares of Issuer’s Common Stock, $0.0001 par value per share (“Common
Stock”), on the terms set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the
covenants, promises and representations set forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE
I

CONVERSION OF SECURITIES

 

Section 1.1.          IPO
Conversion and Surrender of the Preferred Stock. Upon the terms and subject to the conditions of this Agreement, at the Closing
(a) Stockholder shall convert all of its shares of Preferred Stock into a number of shares of the Common Stock listed on Schedule
A hereto; and (b) Issuer will issue and deliver to Stockholder, and Stockholder will receive from Issuer, the number of shares
of Common Stock set forth on Schedule A hereto.

 

Section 1.2.          Closing.
The agreement to convert set forth in Section 1.1 of this Agreement (the “IPO Conversion”) is made as of the
Effective Date and may not be canceled or revoked by Issuer or Stockholder. The IPO Conversion shall take place (the “Closing”)
upon Issuer’s initial public offering through an underwriter in a transaction registered under the Securities Act.

 

    	 

    	 

    

 

Section 1.3.          Elements
of the IPO Conversion. The IPO Conversion shall be subject to the following:

 

(a)          All
of the holders of the Preferred Stock shall convert all of their shares of Preferred Stock. If upon Issuer’s initial public
offering fewer than all the holders of the Preferred Stock are parties to this Agreement, then this Agreement shall terminate and
the IPO Conversion shall not occur.

 

(b)          The
Closing shall only occur upon Issuer’s initial public offering through an underwriter in a transaction registered under the
Securities Act. If Issuer’s initial public offering has not occurred by October 31, 2014, then this Agreement shall terminate
and the IPO Conversion shall not occur.

 

(c)          The
IPO Conversion shall occur pursuant to the “Optional Conversion” right set forth in Section 5(l) of the Certificate
of Designation.

 

(d)          At
the Closing, each holder of record of shares of Preferred Stock shall be deemed to be the holder of record of the Common Stock
issuable upon the IPO Conversion, notwithstanding that the certificates representing such shares of Preferred Stock shall not have
been surrendered at the office of Issuer, that notice from Issuer shall not have been received by any holder of record of shares
of Preferred Stock, or that the certificates evidencing such shares of Common Stock shall not then be actually delivered to such
holder.

 

Section 1.4.          Release.
In consideration of the promises and covenants set forth in this Agreement and for other good and valuable consideration, Stockholder
for itself and on behalf of its subsidiaries, directors, officers, stockholders, members, partners, affiliates, employees, agents,
attorneys, accountants, successors, heirs and assigns, does hereby fully and irrevocably remise, release and forever discharge
each of Issuer, its subsidiaries, affiliates, officers, directors, employees, stockholders, agents, representatives, attorneys,
predecessors, successors and assigns (the “Released Parties”) of and from any and all manner of claims, actions,
causes of action, grievances, liabilities, obligations, promises, damages, agreements, rights, debts and expenses (including claims
for attorneys' fees and costs), of every kind, either in law or in equity, whether contingent, mature, known or unknown, or suspected
or unsuspected, including, without limitation, any claims arising under any federal, state, provincial, local or municipal law,
common law or statute, whether arising in contract or in tort, and any claims arising under any other laws or regulations of any
nature whatsoever, that Stockholder ever had, now has or may have, for or by reason of any cause, matter or thing whatsoever, from
the beginning of the world to the Effective Date, solely as it relates to the Preferred Stock. Stockholder represents, warrants
and covenants that it has not sold, assigned, transferred, or otherwise conveyed to any other person or entity all or any portion
of its rights, claims, demands, actions, or causes of action herein released. Stockholder further agrees and covenants not to sue
or to bring, or assign to any third person, any claims or charges against any of the Released Parties with respect to any matter
covered by the release set forth herein and not to assert against any of the Released Parties any action, grievance, suit, litigation
or proceeding for any matter covered by the release set forth herein.

 

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ARTICLE
II

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER

 

Stockholder represents
and warrants to Issuer as follows:

 

Section 2.1.          Ownership
of Preferred Stock. Stockholder is the sole record and beneficial owner of the Preferred Stock listed on Schedule A
hereto. The Preferred Stock is not subject to any encumbrances, and Stockholder has not granted any rights to purchase the Preferred
Stock to any other person or entity. Stockholder has the sole right to transfer the Preferred Stock to Issuer.

 

Section 2.2.          Organization
of Stockholder. Stockholder, if an entity, is duly formed, validly existing and in good standing under the laws of its jurisdiction
of organization and has all necessary power and authority to conduct its business in the manner in which its business is currently
being conducted.

 

Section 2.3.          Authority;
Non-Contravention.

 

(a)          Stockholder
has all requisite power and authority to execute, deliver and perform its obligations under this Agreement. This Agreement has
been duly and validly authorized, executed and delivered by Stockholder and constitutes the valid and legally binding obligation
of Stockholder, enforceable in accordance with its terms and conditions, subject to bankruptcy, insolvency, fraudulent transfer,
moratorium or similar laws relating to or affecting creditors’ rights generally and to general principles of equity.

 

(b)          The
execution, delivery and performance of this Agreement by Stockholder and the consummation of the transactions contemplated hereby
will not (i) conflict with or result in a material breach or violation of any of the terms or provisions of, impose any lien,
charge or encumbrance upon any material property or assets of Stockholder, or constitute a default under, any material indenture,
mortgage, deed of trust, loan agreement, license or other material agreement or instrument to which Stockholder is a party or by
which Stockholder is bound or to which any of the material property or assets of Stockholder is subject, (ii) result in any
violation of the provisions of the governing instruments of Stockholder or (iii) result in any violation of any statute or
any order, rule or regulation of any court or governmental agency or body having jurisdiction over Stockholder or any of its properties
or assets, except where such violation will not, individually or in the aggregate, have a material adverse effect on the condition
(financial or otherwise), results of operations, Stockholder’s equity, properties or business of Issuer and its subsidiaries
taken as a whole.

 

(c)          No
consent, approval, authorization or order of, or filing or registration with, any court or governmental agency or body having jurisdiction
over Stockholder or any of its properties or assets is required for the execution, delivery and performance of this Agreement by
Stockholder or the consummation of the transactions contemplated hereby.

 

Section 2.4.          Restrictive
Legend. Stockholder acknowledges that the Common Stock to be issued by Issuer to Stockholder hereunder has not been registered
under the Securities Act and therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from
such registration is available in the opinion of counsel reasonably acceptable to Issuer. Stockholder acknowledges that the certificate
representing the Common Stock to be issued by Issuer to Stockholder hereunder will bear the following legend:

 

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THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
TO, REGISTRATION UNDER SAID ACT IN THE OPINION OF COUNSEL REASONABLY ACCEPTABLE TO ISSUER.

 

Section 2.5.          Accredited
Investor. Stockholder is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation D
under the Securities Act.

 

Section 2.6.          No
General Solicitation. Stockholder is unaware of, and in deciding to acquire the Shares is in no way relying upon, and did not
become aware of the conversion of the Preferred Stock through or as a result of, any form of general solicitation or general advertising
including, without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or
similar media, or broadcast over television or radio or the internet, in connection with such conversion.

 

Section 2.7.          Placement
and Finder’s Fees. No agent, broker, investment banker, finder, financial advisor or other person acting on behalf of
Stockholder or under its authority is or will be entitled to any broker’s or finder’s fee or any other commission or
similar fee, directly or indirectly, in connection with this Agreement, and no person is entitled to any fee or commission or like
payment in respect thereof based in any way on agreements, arrangements or understanding made by or on behalf of Stockholder.

 

Section 2.8.          Investment
Intent. The Common Stock to be issued to Stockholder is being acquired for the Stockholder’s own account for investment
purposes only, not as a nominee or agent and not with a view to the resale or distribution of any part thereof, and Stockholder
has no present intention of selling, granting any participation in or otherwise distributing the same. By executing this Agreement,
Stockholder further represents that Stockholder does not have any contract, undertaking, agreement or arrangement with any person
to sell, transfer or grant participation to such person or third person with respect to any of the Common Stock to be issued by
Issuer to Stockholder.

 

Section 2.9.          Investment
Risk. Stockholder has substantial experience in evaluating and investing in private placement transactions of securities in
companies similar to Issuer so that it is capable of evaluating the merits and risks of its investment in Issuer. Stockholder acknowledges
that an investment in the Common Stock issued pursuant to this Agreement involves a high degree of risk as Issuer remains in the
early stage of its development, having only recently commenced the operations of its various business units. Thus, Issuer and its
subsidiaries have only a very brief history of operations, and it is uncertain how these business units will operate on a combined
basis and whether these various business units can be operated at a profit. Stockholder understands that it must bear the economic
risk of this investment until the Common Stock are sold pursuant to: (i) an effective registration statement under the Securities
Act; or (ii) an exemption from registration is available with respect to such sale.

 

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Section 2.10.         Access
to Information. In making its decision to acquire the Common Stock, Stockholder confirms that it has carefully reviewed all
information regarding Issuer as it has deemed necessary in order to make an informed investment decision with respect to an investment
in the Common Stock; that it has had the opportunity to ask representatives of Issuer certain questions and request certain additional
information regarding the terms and conditions of such investment and the finances, operations, business and prospects of Issuer
and has had any and all such questions and requests answered to its satisfaction; and that it understands the risks and other considerations
relating to such investment. Stockholder specifically acknowledges that it has been provided with and reviewed to its satisfaction,
information regarding Issuer’s finances, management team, capitalization, material acquisitions, description of outstanding
securities, plan of operations, material business risks and the like.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF ISSUER

 

Issuer represents and
warrants to Stockholder as follows:

 

Section 3.1.          Organization
of Issuer. Issuer, if an entity, has been duly incorporated and is validly existing and in good standing as a corporation under
the laws of its jurisdiction of incorporation, with all corporate power and authority necessary to conduct the business in which
it is engaged and Issuer is duly qualified or licensed to do business and in good standing as a foreign corporation in each jurisdiction
in which its ownership or lease of its properties or assets or the conduct of its businesses requires such qualification or license,
except where the failure to be so qualified or be so licensed or in good standing would not, individually or in the aggregate,
have a material adverse effect on the condition (financial or otherwise), results of operations, Stockholder’s equity, properties
or business of Issuer and its subsidiaries taken as a whole.

 

Section 3.2.          Duly
Issued Shares. The shares of Common Stock to be issued to Stockholder hereunder have been duly authorized and, upon delivery
in accordance with this Agreement, (a) will be validly issued, fully paid and non-assessable, and (b) will not be subject to any
encumbrances, other than those imposed by Stockholder or under applicable federal and state securities laws.

 

Section 3.3.          Authority;
Non-Contravention.

 

(a)          Issuer
has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement. This Agreement
has been duly and validly (i) authorized by Issuer, and (ii) executed and delivered by Issuer. This Agreement constitutes the valid
and legally binding obligation of Issuer, enforceable in accordance with its terms and conditions, subject to bankruptcy, insolvency,
fraudulent transfer, moratorium or similar laws relating to or affecting creditors’ rights generally and to general principles
of equity.

 

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(b)          The
execution, delivery and performance of this Agreement by Issuer and the consummation of the transactions contemplated hereby will
not (i) conflict with or result in a material breach or violation of any of the terms or provisions of, impose any lien, charge
or encumbrance upon any material property or assets of Issuer, or constitute a default under, any material indenture, mortgage,
deed of trust, loan agreement, license or other material agreement or instrument to which Issuer or any of its subsidiaries is
a party or by which Issuer or any of its subsidiaries is bound or to which any of the material property or assets of Issuer or
any of its subsidiaries is subject, (ii) result in any violation of the provisions of the governing instruments of Issuer
or any of its subsidiaries or (iii) result in any violation of any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over Issuer or any of its properties or assets, except where such violation will
not, individually or in the aggregate, have a material adverse effect on the condition (financial or otherwise), results of operations,
Stockholder’s equity, properties or business of Issuer and its subsidiaries taken as a whole.

 

(c)          No
consent, approval, authorization or order of, or filing or registration with, any court or governmental agency or body having jurisdiction
over Issuer or any of its subsidiaries or any of their properties or assets is required for the execution, delivery and performance
of this Agreement by Issuer or the consummation of the transactions contemplated hereby.

 

(d)          The
issuance of the shares of Common Stock by Issuer to Stockholder pursuant to this Agreement does not require registration under
the Securities Act.

 

ARTICLE
IV

GENERAL PROVISIONS

 

Section 4.1.          General.
Each of the parties will use commercially reasonable efforts to take or cause to be taken all actions and to do or cause to be
done, as soon as possible, all things necessary, proper or advisable (subject to any applicable laws) to consummate the Closing
and the other transactions contemplated by this Agreement. In the event that at any time after the Closing any further action is
reasonably necessary to carry out the purposes of this Agreement, each of the parties will take such further action (including
the execution and delivery of such further instruments and documents) as the other party may reasonably request, at the sole cost
and expense of the requesting party.

 

Section 4.2.          Survival.

 

(a)          The
representations and warranties contained in Articles II and III will survive the Effective Date and the Closing and continue in
full force and effect indefinitely, and

 

(b)          any
covenants or agreements contained in this Agreement, which by their terms have any remaining obligation to be performed or observed
following the occurrence of the Effective Date and the Closing will survive and continue in full force and effect until fully performed
or observed in accordance with their terms.

 

Section 4.3.          Additional
Covenants. Stockholder covenants and agrees with Issuer as follows:

 

(a)          Stockholder
agrees that it will not disclose, and will not include in any public announcement, the name of Issuer, unless expressly agreed
to by Issuer or unless and until such disclosure is required by law or applicable regulation, and then only to the extent of such
requirement.

 

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(b)          Stockholder
agrees not to effect any sales in the shares of the Common Stock while in possession of material, non-public information regarding
Issuer if such sales would violate applicable securities laws.

 

(c)          Stockholder
agrees in connection with an initial public offering that occurs upon the Closing, that unless waived in writing by the managing
underwriter, not to sell or transfer any shares of Common Stock of Issuer for a period of up to 180 days from the completion of
any such initial public offering, plus up to an additional 20 days to the extent necessary to comply with applicable regulatory
requirements following such public offering.

 

Section 4.4.          Notices.
Any notice, request, instruction or other communication to be given hereunder will be in writing and delivered personally or sent
by reputable, overnight courier service (charges prepaid), or by facsimile, according to the instructions set forth below. Such
notices will be deemed given (a) at the time delivered by hand, if personally delivered, (b) on the day of delivery if during normal
business hours (or on the following business day if not sent during normal business hours), if sent by reputable, overnight courier
service, and (c) at the time when confirmation of successful transmission is received by the sending facsimile machine, if sent
by facsimile. Such notices, demands and other communications will be sent to Issuer and Stockholder, as the case may be at the
addresses indicated below:

 

if to Issuer:

 

Armada Water Assets, Inc.

2425 Fountain View Drive, Suite 300

Houston, Texas 77057

Facsimile: (832) 262-4606

Attention: Sami Ahmad, CFO

 

with a copy to (which will not constitute notice to
Issuer):

 

Fox Rothschild LLP

2000 Market Street, 20th Floor

Philadelphia, Pennsylvania 19103

Facsimile: (215) 299-2150

Attention: Stephen M. Cohen, Esq.

 

if to Stockholder:

 

At the address for Stockholder set forth in Issuer’s
transfer records.

 

Section 4.5.          Counterparts.
this Agreement may be executed in any number of counterparts and each of such counterparts will for all purposes be deemed to be
an original, and all such counterparts will together constitute but one and the same instrument. Facsimiles or other electronic
copies of signatures will be deemed to be originals.

 

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Section 4.6.          Governing
Law. This Agreement will be deemed to be a contract made under the laws of the State of Nevada and for all purposes will be
governed by and construed in accordance with the internal laws of said State. The parties hereto irrevocably consent to the jurisdiction
of the state and federal courts sitting in the City of Philadelphia, Pennsylvania in connection with any action, suit or proceeding
arising out of or relating to this Agreement.

 

Section 4.7.          Entire
Agreement. This Agreement constitutes the entire agreement of Issuer and Stockholder with respect to the subject matter hereof
and supersedes all prior agreements and undertakings, both written and oral, between Issuer and Stockholder with respect to the
subject matter hereof.

 

Section 4.8.          Amendment
and WaiverThis Agreement may be amended, modified or supplemented, and any of the provisions hereof may be waived, provided
that the same are in writing and signed by Issuer and Stockholder.

 

Section 4.9.          Assignment.
Neither this Agreement nor any of the rights, interests or obligations provided by this Agreement will be assigned by either party
(whether by operation of law or otherwise) without the prior written consent of the other party. Subject to the preceding sentence,
this Agreement will be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted
assigns.

 

Section 4.10.         Counsel
Review. Stockholder acknowledges that it has read and understands the contents of this Agreement. Stockholder acknowledges
that it has been specifically advised by Issuer: (i) that this Agreement has been prepared by Fox Rothschild LLP specifically on
behalf of Issuer; and (ii) to consult with an attorney before signing it. Stockholder further acknowledges that this Agreement
was reached after negotiation in which Stockholder was advised to be, and afforded the opportunity to be, represented by counsel.
Stockholder acknowledges that it has executed this Agreement voluntarily and of its own free will, without coercion and with full
knowledge of what it means to do so.

 

[Signature page follows]

 

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IN WITNESS WHEREOF,
Issuer and Stockholder have caused this Conversion Agreement to be signed, all as of the date first written above.

 

	 	ISSUER:
	 	 	 
	 	ARMADA WATER ASSETS, INC.
	 	 	 
	 	By:	 
	 	 	Maarten Propper, Chief Executive Officer
	 	 	 
	 	STOCKHOLDER:
	 	 	 
	 	UB WATER, LLC
	 	 	 
	 	BY:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Conversion Agreement]

 

    	 

    	 

    

 

Schedule A

 

	Name of Stockholder	 	Shares of

Preferred Stock	 	 	Shares of
 Common Stock	 
	 	 	 	 	 	 	 
	UB Water, LLC	 	 	1,500,000	 	 	 	50,000	 
	Total	 	 	1,500,000	 	 	 	50,000Exhibit 10.40

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”)
is made this ____ day of May, 2014, between Armada Water Assets, Inc., a Nevada corporation (the “Company”)
and __________, an individual (“Indemnitee”).

 

RECITALS

 

Whereas,
the Company expects Indemnitee to join the Company as a member of its board of directors;

 

WHEREAS, the board of directors of the
Company (the "Board") has determined that enhancing the ability of the Company to retain and attract as directors
and officers the most capable persons is in the best interests of the Company and that the Company therefore should seek to assure
such persons that indemnification is available;

 

WHEREAS, the Company has adopted provisions
in its Articles of Incorporation (“Articles”) and bylaws (“Bylaws”) providing for indemnification
and advancement of expenses of its directors and officers to the fullest extent authorized by the Nevada Revised Statutes, and
the Company wishes to clarify and enhance the rights and obligations of the Company and Indemnitee with respect to indemnification
and advancement of expenses;

 

Whereas,
Article V, Section 6 of the Bylaws and Nevada Revised Statutes § 78.751 specifically provide that they are not exclusive,
and thereby contemplate that agreements may be entered into between the Company and the members of its Board of Directors and officers
with respect to indemnification of such directors and officers;

 

WHEREAS, in order to induce and encourage
highly experienced and capable persons such as Indemnitee to serve and continue to serve as directors and officers of the Company
and in any other capacity with respect to the Company as the Company may request (including, without limitation, as directors and
officers of direct and indirect subsidiaries of the Company), and to otherwise promote the desirable end that such persons shall
resist what they consider unjustified lawsuits and claims made against them in connection with the good faith performance of their
duties to the Company, with the knowledge that certain costs, judgments, penalties, fines, liabilities and expenses incurred by
them in their defense of such litigation are to be borne by the Company and they shall receive the maximum protection against such
risks and liabilities as may be afforded by applicable law, the Board of Directors of the Company has determined that the following
Agreement is reasonable and prudent to promote and ensure the best interests of the Company and its stockholders;

 

Whereas,
it is intended that Indemnitee shall be paid promptly by the Company all amounts necessary to effectuate in full the indemnity
provided in this Agreement; and

 

Whereas,
to induce Indemnitee to serve as a member of the Board, the Company has determined and agreed to enter into this Agreement with
Indemnitee.

 

    	 

    	 

    

  

AGREEMENT

 

Now,
Therefore, in consideration of Indemnitee’s continued service as a director or officer of the Company after the date
hereof, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company
and Indemnitee hereby agree as follows:

 

1.           Indemnification
of Indemnitee. The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent authorized or permitted
by the provisions of the Nevada Revised Statutes, or any successor statute or amendment thereof, or any other statutory provisions
authorizing or permitting such indemnification that is adopted after the date of this Agreement, against and all expenses, including
but not limited to:

 

(a)           fees
for attorneys, accountants, private investigators, court and transcript costs, fees and expenses of witnesses, travel expenses
and all other like disbursements or expenses reasonably incurred by or for Indemnitee, judgments damages, fines, penalties, and
amounts paid in settlement (including all interest assessments and other charges paid or payable in connection with or in respect
of such judgment, fines, penalties, or amounts paid in settlement) actually and reasonably incurred by or for Indemnitee in connection
with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative
(including an action by or in the right of the Company) (a “Covered Action”) to which Indemnitee is made a party
as a result of the fact that at the time of the act or omission that is the subject matter of such Covered Action the Indemnitee
is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise (including, without limitation,
any direct or indirect subsidiary of the Company), including service with respect to an employee benefit plan; or by reason of
anything done or not done by Indemnitee in any such capacity; and

 

(b)           Otherwise
to the fullest extent as may be provided to Indemnitee by the Company under the non-exclusivity provisions of Article 5, Section
6 of the Bylaws of the Company and the Nevada Revised Statutes.

 

2.           Limitations
on Additional Indemnity. No indemnity pursuant to Section 1 of this Agreement shall be paid by the Company to the extent that:

 

(a)           Payment
is actually made to Indemnitee under a valid and collectible insurance policy or policies, except with respect to any excess beyond
the amount of payment under such insurance policy or policies. Notwithstanding the availability of such insurance policy or policies,
Indemnitee also may claim indemnification from the Company pursuant to this Agreement by assigning to the Company any claims under
such insurance policy or policies to the extent Indemnitee is paid by the Company.

 

(b)           Indemnitee
is indemnified by the Company otherwise than pursuant to this Agreement.

 

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(c)           Judgment
is rendered against Indemnitee for the payment of dividends or other distributions to stockholders of the Company in violation
of the provisions of Nevada Revised Statutes § 78.300, as amended.

 

(d)           Judgment
is rendered against Indemnitee for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company
pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended, or other similar provisions of
any federal, state or local statutory law.

 

(e)           Indemnitee’s
conduct giving rise to the claim for indemnification, after having reviewed the matter with Company counsel, is determined by the
Company to have been a breach of fiduciary duty under Nevada Revised Statutes § 78.138, that involved among other things:
having committed any theft, embezzlement, fraud or other act of dishonesty involving the business of the Company; gross negligence;
willful misconduct; fraud; breach of the Company’s code of ethics and business conduct; breach of the Company’s governing
instruments, including but not limited to bylaws and articles of incorporation; or any knowing violation of the law.

 

(f)           Except
as otherwise provided in this Agreement, in connection with all or any part of a suit or other proceeding that is initiated or
maintained by or on behalf of Indemnitee, or any suit or other proceeding by Indemnitee against the Company or its directors, officers,
employees or other agents, unless (i) such indemnification is expressly required to be made by Nevada law; (ii) the suit or other
proceeding was expressly authorized by the Board of Directors of the Company in writing or (iii) such indemnification is provided
by the Company, in its sole discretion, pursuant to the powers vested in the Company under Nevada law.

 

3.           Continuation
of Indemnity. All agreements and obligations of the Company contained in this Agreement shall continue during the period Indemnitee
is a director, officer, employee or agent of the Company (or is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including, without limitation,
any direct or indirect subsidiary of the Company) and shall continue thereafter so long as Indemnitee may be subject to any possible
claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that Indemnitee was a director or officer of the Company, or both, or serving in any other capacity referred
to in this Agreement.

 

4.           Advancement
of Expenses. In the event Indemnitee incurs costs or expenses in connection with the defense of any civil, criminal, administrative
or investigative action, suit or proceeding (including any costs or expenses incurred for any appeal therefore), the Company agrees
to pay such costs or expenses as they are incurred and in advance of the final disposition of the action, suit or proceeding within
30 calendar days of submission of bills or vouchers for such costs or expenses upon receipt of an undertaking by or on behalf of
Indemnitee to repay the amount if it is ultimately determined by a court of competent jurisdiction from which there is no further
right to appeal that he or she is not entitled to be indemnified by the Company. Indemnitee agrees to reimburse the Company for
all amounts paid by the Company in defending any civil, criminal, administrative, investigative action, suit or proceeding against
Indemnitee, including amounts paid in settlement, in the event and only to the extent that it is ultimately determined by a court
of competent jurisdiction from which there is no further right to appeal that Indemnitee is not entitled to be indemnified by the
Company for such expenses under the provisions of the Nevada Revised Statutes, Bylaws, this Agreement or otherwise. In the case
of an action brought by the Company for an accounting of profits made from the purchase or sale by Indemnitee of securities of
the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended, or other similar provisions
of any federal, state or local statutory law, however, costs and expenses will not be advanced unless such action is approved by
a majority of the directors of the Company who both hold office at the time of the commencement of such case and held office at
the time of the conduct alleged to have given rise to liability on the part of the Indemnitee.

 

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5.           Jointly
Indemnifiable Claims.

 

(a)           The
Company acknowledges that Indemnitee may have certain rights to indemnification, advancement of expenses and/or insurance provided
by one or more Indemnitee-Related Entities (as defined below) due to the service of Indemnitee as a director, officer, employee,
agent or trustee of the Company at the request of the Indemnitee-Related Entities or otherwise. Notwithstanding such rights, the
Company acknowledges and agrees that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and
any obligation of the Indemnitee-Related Entities to provide indemnification or to advance expenses for the same expenses or amounts
incurred by Indemnitee are secondary), and the Company shall be fully responsible for payment to Indemnitee in respect of indemnification
or advancement of expenses in connection with any Jointly Indemnifiable Claim (as defined below) pursuant to and in accordance
with the terms of this Agreement, irrespective of any right of recovery Indemnitee may have from any of the Indemnitee-Related
Entities.

 

(b)           Under
no circumstance shall the Company be entitled to any right of contribution by, or any subrogation or other right of recovery of
any kind against, any of the Indemnitee-Related Entities with respect to Indemnitee.

 

(c)           In
the event of a Jointly Indemnifiable Claim, Indemnitee shall first seek recovery against the Company pursuant to this Agreement,
the Company’s Articles of Incorporation or Bylaws, any Company insurance policy or any other indemnity or insurance policy
or provision available to Indemnitee from the Company before seeking to recover under any indemnification rights granted, or any
insurance policy maintained by, any of the Indemnitee-Related Entities (notwithstanding the foregoing, Indemnitee may notify insurance
brokers or insurance providers of any of the Indemnitee-Related Entities of a potential claim). In the event any of the Indemnitee-Related
Entities (or an insurance provider pursuant to a policy maintained by or on behalf of such Indemnitee-Related Entity) makes any
payment or advancement to Indemnitee with respect to any Jointly Indemnifiable Claim, (i) the Indemnitee-Related Entity making
such payment or advancement shall be subrogated to the extent of such payment or advancement to all of the rights of recovery of
Indemnitee against the Company, (ii) the Company shall reimburse, indemnify and hold harmless such Indemnitee-Related Entities
for all such payments or advancements made and (iii) Indemnitee shall execute all papers reasonably required and shall do all things
that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable
the Indemnitee-Related Entities effectively to bring suit to enforce such rights. If Indemnitee subsequently receives or recovers
from the Company such amounts paid or advanced by the Indemnitee-Related Entities (or insurance provider), Indemnitee shall promptly
pay over the amounts so received or recovered to such Indemnitee-Related Entity. No right of advancement or recovery Indemnitee
may have or receive from any of the Indemnitee-Related Entities (or any of their insurance providers) shall reduce or otherwise
alter the rights of Indemnitee or the obligations of the Company hereunder.

 

    	4

    	 

    

 

(d)           The
Company acknowledges and agrees that its obligations to indemnify and advance Expenses to Indemnitee pursuant to this Agreement
or any other indemnity or insurance policy or provision available to Indemnitee from the Company or any other company or organization
where Indemnitee is serving at the request of the Company (including, without limitation, any direct or indirect subsidiary of
the Company) shall not be discharged to the extent Indemnitee has been required to return or has been otherwise disgorged of such
payment(s) through no fault of Indemnitee. In such an event, Indemnitee shall be entitled to seek indemnification and/or advancement
of expenses against the Company, and only thereafter against the Indemnity-Related Entities to the extent Indemnitee has any such
rights against the Indemnity-Related Entities.

 

(e)           The
Company and Indemnitee agree that each of the Indemnitee-Related Entities shall be third-party beneficiaries with respect to this
Section 6, entitled to enforce this Section 5 as though each such Indemnitee-Related Entity were a party to this Agreement.

 

(f)           For
purposes of this section, “Indemnitee-Related Entities” means any corporation, limited liability company, general
or limited partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company or any other corporation,
limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise for which Indemnitee has
agreed, on behalf of the Company or at the Company’s request, to serve as a director, officer, employee, agent or fiduciary
and which service is covered by the indemnity described in this Agreement) from whom Indemnitee may be entitled to indemnification
or advancement of Expenses with respect to which, in whole or in part, the Company may also have an indemnification or advancement
obligation (other than as a result of obligations under an insurance policy), including, without limitation, the entities set forth
on Schedule 5(f) hereto.

 

(g)           For
purposes of this section, “Jointly Indemnifiable Claim” shall be broadly construed and shall include, without
limitation, any Covered Action for which Indemnitee shall be entitled to indemnification or advancement of Expenses from (i) one
or more Indemnitee-Related Entities and (ii) the Company pursuant to applicable law, any agreement or the articles of incorporation,
bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or comparable
organizational documents of the Company, or any parent or subsidiary of the Company, or the Indemnitee-Related Entities, as applicable.

 

6.           Indemnification
for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the maximum extent permitted by the Nevada
Revised Statutes, Indemnitee shall be entitled to indemnification against all expenses reasonably incurred by or for Indemnitee,
or on Indemnitee’s behalf, if Indemnitee appears (or is asked to appear) as a witness, or otherwise incurs legal expenses
as a result of or related to Indemnitee’s service as a director or officer of the Company (or as a director or officer of
direct and/or indirect subsidiaries of the Company), in any Covered Action to which Indemnitee neither is, nor is threatened to
be made, a party.

 

    	5

    	 

    

 

7.           Presumptions
and Effect on Certain Proceedings. It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are
as favorable as may be permitted under the Nevada Revised Statutes and public policy of the State of Nevada. Upon making a request
for indemnification, Indemnitee shall be presumed to be entitled to indemnification under this Agreement. The termination of any
action, suit or proceeding by judgment, order, settlement, arbitration award, conviction or on a plea of nolo contendere or its
equivalent shall not affect this presumption except as may be provided in Section 3 of this Agreement.

 

8.           Notification
and Defense of Claim. Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or proceeding,
Indemnitee shall, if a claim with respect thereto is to be made against the Company under this Agreement, notify the Company of
the commencement of the same; but the failure by Indemnitee to notify the Company will not relieve the Company from any liability
that it may have to Indemnitee. With respect to any such action, suit or proceeding as to which Indemnitee notifies the Company
of the commencement thereof:

 

(a)           The
Company shall be entitled to participate therein at its own expense; and

 

(b)           Except
as otherwise provided below, to the extent that it may wish, the Company, jointly with any other indemnifying party similarly notified,
shall be entitled to assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice from the Company
to Indemnitee of its election to assume the defense of the action, suit or proceeding, the Company will not be liable to Indemnitee
under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection with the defense thereof
other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own
counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from the Company of
its assumption of the defense shall be at the sole expense of Indemnitee unless (i) the employment of counsel by Indemnitee has
been authorized in writing by the Company; (ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest
between the Company and Indemnitee in the conduct of the defense of such action; or (iii) the Company shall not in fact have employed
counsel reasonably satisfactory to Indemnittee to assume the defense of such action, suit or proceeding. In each such instance
set forth in (i)-(iii) above, the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company. Notwithstanding
the foregoing, the Company shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf
of the Company or as to which Indemnitee shall have made the conclusion provided in (ii) above.

 

(c)           The
Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim
effected without the Company’s prior express written consent. The Company shall not settle any action or claim in any manner
that would impose any penalty or limitation on or disclosure obligation with respect to Indemnitee without Indemnitee’s prior
express written consent. Neither the Company nor Indemnitee will unreasonably withhold their consent to any proposed settlement.

 

    	6

    	 

    

 

9.           Enforcement.

 

(a)           The
Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on the Company
hereby in order to induce Indemnitee to continue as a director or officer of the Company, and acknowledges that Indemnitee is relying
on this Agreement in accepting or continuing in such capacity.

 

(b)           In
the event Indemnitee is required to bring any action to enforce his or her rights or to collect moneys due under this Agreement,
the Company shall advance Indemnitee all of Indemnitee’s reasonable fees and expenses in bringing and pursuing such action.
Indemnitee shall be responsible for reimbursement to the Company of such advances in the event that Indemnitee is not successful
in such action.

 

10.         No
Employment Rights. Nothing in this Agreement is intended to confer on Indemnitee any right to continue in the employ of the
Company for any period of time or interfere with or otherwise restrict in any way the rights of the Company or of Indemnitee, which
rights are hereby expressly reserved by each, to terminate his or her service at any time and for any reason, with or without cause,
except as may be provided otherwise in an agreement between the Company and Indemnitee.

 

11.         Severability.
Each of the provisions of this Agreement are separate and distinct and independent of one another, so that if any provision of
this Agreement shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect
the validity or enforceability of the other provisions of this Agreement.

 

12.         Non-Exclusivity
of Rights. The rights to indemnification and to the advancement of expenses provided by this Agreement shall not be deemed
exclusive of any other right that Indemnitee may now or hereafter acquire under any applicable law, agreement, vote of stockholders
or directors, provisions of the Articles or Bylaws, or otherwise.

 

13.         Blue
Pencil. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, the
parties agree that the court making such determination shall have the power to amend such provision or to delete specific words
or phrases so that such provision shall then be enforceable to the fullest extent permitted by law.

 

14.         Subrogation.
Except to the extent provided in Section 6 hereof, in the event of payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all rights of recovery of Indemnitee, who shall execute all papers required and shall do everything
that may be necessary to secure such rights, including without limitation, the execution of such documents necessary to enable
the Company to effectively bring suit to enforce such rights.

 

15.         Governing
Law and Forum Selection. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada
without resort to conflict of laws principles.

 

16.         Binding
Effect. This Agreement shall be binding on the parties, their successors and assigns, and shall inure to the benefit of Indemnitee,
his or her heirs, personal representatives and assigns, and to the benefit of the Company, its successors and assigns. The Company
shall require and cause any successor to all, substantially all or a substantial part of the business and/or assets of the Company
(whether by direct or indirect purchase, merger, consolidation or otherwise) to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place in
a written agreement reasonably satisfactory to Indemnitee.

 

    	7

    	 

    

 

 

17.         Counterparts.
This Agreement may be executed in counterparts, all of which shall be considered one and the same instrument and shall become effective
when counterparts have been signed by each of the parties and delivered to the other party.

 

18.         Amendment.
No amendment, modification, termination or cancellation of this Agreement shall be effective unless in a writing signed by both
parties hereto.

 

19.         Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed or
(ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed
and addressed to the following addresses:

 

	If to Indemnitee:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	With a copy to:	 	 
	 	 	 
	 	 	 
	 	 	 

 

	If to the Company:	Armada Water Assets, Inc.
	 	2425 Fountain View Drive, Suite 300
	 	Houston, TX 77057
	 	Attention: Chief Executive Officer
	 	 
	With a copy to: 	Fox Rothschild LLP
	 	2000 Market Street, 20th Floor
	 	Philadelphia, PA 19103
	 	Attention: Stephen M. Cohen, Esq.

 

A party may change their address by delivering
notice of such changed address in the manner set forth in this Section 19.

 

20.           Headings;
Pronouns. The headings of the sections of this Agreement are inserted for convenience only and shall not be deemed to constitute
part of this Agreement or to affect the construction thereof. All pronouns and any variations thereof shall be deemed to refer
to the masculine, feminine, neuter, singular or plural as appropriate.

 

[Remainder of page is
intentionally blank.]

 

    	8

    	 

    

 

In Witness Whereof, the parties hereto have
executed this Indemnity Agreement as of the date first above written.

 

	Indemnitee 	 	ARMADA WATER ASSETS, Inc. 
	 	 	a Nevada corporation
	 	 	 	 
	 	 	By:	 
	Name:	 	Name:  Maarten Propper
	 	 	Title:    Chief Executive Officer

 

[Signature Page to Indemnification Agreement]

 

    	 

    	 

    

 

SCHEDULE 5(f) TO INDEMNIFICATION AGREEMENT

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