As of January 25, 2016, The Alkaline Water Company Inc. entered into a loan agreement with Turnstone Capital Inc. whereby the Lender loaned $750,000 to the company in exchange for a non-negotiable promissory note in the principal amount of $750,000 (the Note). The Note bears interest at the rate of 15% per annum and matures on March 31, 2016. The Loan Agreement provides that obligations to the Lender will be secured by an escrow agreement, pursuant to which it will deposit into escrow a certificate representing 1,500,000 shares of common stock (Escrowed Shares).

As of January 25, 2016, the company entered into the Escrow Agreement with the Lender and an escrow agent.