On January 5, 2016, Boreal Water Collection, Inc. entered into an agreement with Mr. Abdul Aziz Al Athel (“subscriber”). The Agreement is for $250,000 of Secured Debentures and Common Share Warrants in Units of $1000.00. Each Unit contains one 7.5% interest bearing Secured Debenture in the principal amount of $1000.00 and a Warrant to purchase 1,352,532 common shares at an exercise price of $0.0075 per share. Interest is payable semi-annually. The debenture is re-payable 24 months after the closing date. The security is a “mortgage on the assets of the company” junior to the “existing bridge loan mortgage and line of credit.” The warrant exercise period is 2 years from the date of issuance; and may be subscribed in whole or in part on a total of 2 occasions. If all the Warrants are exercised, a total of 338,133,000 common shares will be issued.