Document:

STOCKHOLDER
      LOCK-UP AGREEMENT

     

    This
      Stockholder Lock-Up Agreement (the “Agreement”)
      is
      made effective as of the 19th day of April, 2007, by and among Trulite, Inc.,
      a
      Delaware corporation (the “Company”),
      and
      Andrew J. Nielson (the “Stockholder”).

     

    R
      E C
      I T A L S

     

    WHEREAS,
      the Stockholder owns 1,120,745 shares of the Company’s Common Stock, $0.0001 par
      value (“Common
      Stock”),
      which
      represents a substantial equity interest in the Company; and

     

    WHEREAS,
      the Company anticipates raising additional equity investments in the Company
      in
      the future; and

     

    WHEREAS,
      in order to induce future investors in the Company (“Investors”)
      to
      invest funds in the Company, the Stockholder and the Company hereby agree that
      this Agreement shall govern the rights of the Stockholder to enter into
      transactions with respect to the equity securities of the Company as set forth
      herein.

     

    NOW,
      THEREFORE, in consideration of the mutual promises and covenants set forth
      herein, the parties hereto further agree as follows:

     

    T
      E R
      M S

    1.  Lock-Up
      Agreement.

     

    (a)  The
      Stockholder may sell up to 100,000 shares of Common Stock during the period
      ending April 25, 2007.

     

    (b)  The
      Stockholder hereby agrees that it will not except as specifically provided
      herein, without the prior written consent of the Company, during the period
      commencing on the date hereof and ending on April 19, 2008 (the “Term”),
      (i) lend, offer, pledge, sell, contract to sell, sell any option or
      contract to purchase, purchase any option or contract to sell, grant any option,
      right or warrant to purchase, or otherwise transfer or dispose of, directly
      or
      indirectly, any shares of Common Stock or any securities convertible into or
      exercisable or exchangeable for Common Stock (whether such shares or any such
      securities are then owned by the Stockholder or are hereafter acquired), or
      (ii) enter into any swap or other arrangement that transfers to another, in
      whole or in part, any of the economic consequences of ownership of the Common
      Stock, whether any such transaction described in clause (i) or (ii) above
      is to be settled by delivery of Common Stock or other securities, in cash or
      otherwise. The Investors are intended third-party beneficiaries of this
      Section 1
      and
      shall have the right, power and authority to enforce the provisions hereof
      as
      though they were a party hereto. The Stockholder further agrees to execute
      such
      agreements as may be reasonably requested by the Company, that are consistent
      with this Section 1
      or that
      are necessary to give further effect thereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  In
      order
      to enforce the covenant set forth in Section 1(b),
      the
      Company may impose stop-transfer instructions with respect to the Common Stock
      of the Stockholder until the end of such period.

     

    (d)  The
      Stockholder agrees that a legend reading substantially as follows shall be
      placed on all certificates representing all equity securities of the Stockholder
      other than shares of Common Stock to be sold pursuant to Section 1(a):

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD
      ENDING APRIL 19, 2008, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND
      THE
      ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE
      ISSUER’S PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF
      THESE SHARES.”

     

    (e)  Notwithstanding
      the foregoing:

     

    (i)  The
      Stockholder may during the Term sell to Eric Ladd up to 473,968 shares of Common
      Stock in connection with exercise of the option held by Eric Ladd to purchase
      such shares (the “Option”);

     

    (ii)  During
      each 30 day period during the Term beginning on the 19th day of each month
      beginning July 19, 2007 (each a “30
      Day
      Window Period”),
      the
      Stockholder may sell up to 20,000 shares of Common Stock. Additionally, if
      the
      Stockholder sells less than 20,000 shares of Common Stock during a 30 Day Window
      Period he may sell up to (and no more than ) 20,000 of such unsold shares of
      Common Stock during the remainder of the Term (even to the extent such sales
      would cause total sales of Common Stock in a 30 Day Window Period to exceed
      20,000 shares. The maximum number of shares of Common Stock that may be sold
      by
      the Stockholder during any 30 Day Window Period is 40,000;

     

    (iii)  Except
      for (A) the Company’s agreement to permit Eric Ladd to sell up to 5% of the
      shares of the Company’s Common Stock purchased by him upon exercise of the
      Option, or (B) the Company’s agreement with its stockholders, including Kevin
      Shurtleff, to sell Common Stock covered by the Company’s Registration Statement
      on Form SB-2 that was declared effective February 9, 2007, if after the date
      hereof, the Company releases any other stockholder of the Company from the
      restrictions contained in Section 1 of the Lock-Up Agreement dated as of March
      31, 2006 between such stockholder and the Company, the restrictions contained
      in
      this Section 1 shall lapse immediately.

     

    2.  Warrant.
      Concurrently with approval by the Company’s Board of Directors of the issuance
      of the Warrant (hereafter defined), the Company will execute and deliver to
      the
      Stockholder a Warrant in the form of Exhibit
      A
      attached
      hereto (the “Warrant”).
      If
      during the Term, the Company files with the Securities and Exchange Commission
      a
      registration statement registering the resale of securities purchased by
      Investors from the Company, the Company will provide the Stockholder the
      opportunity to include in such registration statement the resale of the shares
      of Common Stock underlying the Warrant, provided that the Stockholder agrees
      to
      provide such documentation in connection therewith as may be reasonably
      requested by the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.  Financing.
      During
      the Term, the Company will provide the Stockholder with five (5) days advance
      written notice of a proposed issuance by the Company to Investors of equity
      securities for cash, which notice shall include a description of the terms
      under
      which such equity securities will be issued, and will afford the Stockholder
      the
      opportunity to purchase such equity securities in an amount up to 50% of the
      number of equity securities offered to such Investors on the same terms provided
      to the Investors at the same closing at which Investors purchase the equity
      securities purchased by them.

     

    4.  Rule
      144.
      During
      the Term, at the request of the Stockholder the Company will cooperate with
      the
      Stockholder and the Company’s transfer agent to assist the Stockholder in making
      sales of Common Stock that are permitted under this Agreement so that such
      sales
      qualify under Rule 144 under the Securities Act.

     

    5.  Miscellaneous.

     

    (a)  Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      assigns of the parties (including transferees of any shares of Common Stock).
      Nothing in this Agreement, express or implied, is intended to confer upon any
      party other than the parties hereto or their respective successors and assigns
      any rights, remedies, obligations or liabilities under or by reason of this
      Agreement, except as expressly provided in this Agreement.

     

    (b)  Choice
      of Law, Venue and Forum.
      This
      Agreement, the entire relationship of the parties hereto, and any litigation
      between the parties (whether grounded in contract, tort, statute, law or equity)
      shall be governed by, construed in accordance with, and interpreted pursuant
      to
      the laws of the State of Texas, without giving effect to its choice of laws
      principles. Exclusive venue for any litigation between the parties hereto shall
      be in Harris County, Texas, and shall be brought in the State District Courts
      of
      Harris County, Texas, or in the United States District Court for the Southern
      District of Texas, Houston Division. The parties hereto waive any challenge
      to
      personal jurisdiction or venue (including without limitation a challenge based
      on inconvenience) in Harris County, Texas, and specifically consent to the
      jurisdiction of the State District Courts of Harris County and the United States
      District Court for the Southern District of Texas, Houston
      Division.

     

    (c)  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.

     

    (d)  Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    (e)  Notices.
      All
      notices and other communications given or made pursuant hereto shall be in
      writing and shall be deemed effectively given: (i) upon personal delivery
      to the party to be notified, (ii) when sent by confirmed electronic mail or
      facsimile if sent during normal business hours of the recipient; if not, then
      on
      the next business day, (iii) five (5) days after having been sent by
      registered or certified mail, return receipt requested, postage prepaid, or
      (iv) one (1) day after deposit with a nationally recognized overnight
      courier, specifying next day delivery, with written verification of receipt.
      All
      communications shall be sent to the respective parties at the addresses set
      forth in the record books of the Company (or at such other addresses as shall
      be
      specified by notice given in accordance with this Section 5(e)).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)  Entire
      Agreement; Amendments and Waivers.
      This
      Agreement (including the Exhibits hereto, if any) constitutes the full and
      entire understanding and agreement among the parties with regard to the subjects
      hereof and thereof. Any term of this Agreement may be amended and the observance
      of any term of this Agreement may be waived (either generally or in a particular
      instance and either retroactively or prospectively) only with the written
      consent of the Company and the Stockholder. 

     

    (g)  Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision(s) shall be excluded from this Agreement and
      the
      balance of the Agreement shall be interpreted as if such provision(s) were
      so
      excluded and shall be enforceable in accordance with its terms.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Stockholder Lock-Up Agreement
      effective as of the date first above written.

    
      	 	 	 
	 	
              COMPANY:

            
	 	 
	 	
              Trulite,
                Inc.

              (a
                Delaware corporation)

            
	 
 	 
 	 
 
	
            	By:  	/s/ Jonathan Godshall
	 	
              

              Jonathan
                Godshall, President

            
	 	Address:   5
              Houston Center
              1401
                McKinney Street, Suite 900

              Houston,
                TX 77010-4035

            

    

     

    
      	 	 	 
	 	 
	 
 	 
 	
              STOCKHOLDER:

            
	Date: 	
            	/s/ Andrew
              Nielson
	 	
              

              Andrew
                Nielson

            
	 	
              Address:
                

              
                

              

              
                

              

              
                

              

            

    

    
       

      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    WARRANT

     

    
      
        EXHIBIT
          A

      

       

      THIS
        WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
        LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR
        HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT
        TO THE SECURITIES UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW
        OR
        PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL SATISFACTORY TO THE PARTNERSHIP
        THAT SUCH REGISTRATION IS NOT REQUIRED.

      

      
        	
                Date
                  of Issuance

              	 	
                Void
                  after

              
	
                April
                  __, 2007

              	 	
                April
                  __, 2009

              

      

      

      TRULITE,
        INC.

      

      WARRANT
        TO PURCHASE SHARES OF COMMON STOCK

       

      This
        Warrant is issued to Andrew J. Nielson or his assigns (the “Holder”)
        by
        Trulite, Inc., a Delaware corporation (the “Company”).

      

      1.  Purchase
        of Shares.

       

      (a)  Number
        of Shares.
        Subject
        to the terms and conditions set forth herein, the Holder is entitled, upon
        surrender of this Warrant at the principal office of the Company (or at such
        other place as the Company shall notify the Holder in writing), to purchase
        from
        the Company up to one hundred twenty thousand (120,000) fully paid and
        nonassessable shares of the Company’s common stock, par value $0.0001 per share
        (the “Common
        Stock”).

       

      (b)  Exercise
        Price.
        The
        exercise price for the shares of Common Stock issuable pursuant to this Section
        1
        (the
“Shares”)
        shall
        be One Dollar and Fifty Cents ($1.50) per share (the “Exercise
        Price”).
        The
        Shares and the Exercise Price shall be subject to adjustment pursuant to
        Section 9
        hereof.

       

      2.  Exercise
        Period.
        This
        Warrant shall be exercisable, in whole or in part, during the term commencing
        on
        the date hereof and ending at 5:00 p.m. CDT on April __, 2009 (the “Exercise
        Period”);
        provided, however, that this Warrant shall no longer be exercisable and become
        null and void upon the consummation of any “Termination
        Event”
defined
        as (a) the closing of the sale, transfer or other disposition of all or
        substantially all of the Company’s assets, (b) the consummation of the
        merger or consolidation of the Company with or into another entity (except
        a
        merger or consolidation in which the holders of Company’ Common Stock
        immediately prior to such merger or consolidation continue to hold at least
        50%
        of the equity interest of the Company or the surviving or acquiring entity),
        (c) the closing of the transfer (whether by merger, consolidation or
        otherwise), in one transaction or a series of related transactions, to a
        person
        or group of affiliated persons (other than an underwriter of the Company’s
        securities), of the Company’s securities if, after such closing, such person or
        group of affiliated persons would hold more than 50% of the outstanding Common
        Stock of the Company, or (d) a liquidation, dissolution or winding up of
        the
        Company; provided, however, that a transaction shall not constitute a
        Termination Event if its sole purpose is to change the state of the Company’s
        organization or to create a holding company that will be owned in substantially
        the same proportions by the persons who held the Company’s securities
        immediately prior to such transaction. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3.  Method
        of Exercise.

       

      (a)  While
        this Warrant remains outstanding and exercisable in accordance with
        Section 2
        above,
        the Holder may exercise, in whole or in part, the purchase rights evidenced
        hereby. Such exercise shall be effected by:

       

      (i)  the
        surrender of the Warrant, together with a duly executed copy of the Notice
        of
        Exercise attached hereto, to the Secretary of the Company at its principal
        office (or at such other place as the Company shall notify the Holder in
        writing); and

       

      (ii)  the
        payment to the Company of an amount equal to the aggregate Exercise Price
        for
        the number of Shares being purchased.

       

      (b)  Each
        exercise of this Warrant shall be deemed to have been effected immediately
        prior
        to the close of business on the day on which this Warrant is surrendered
        to the
        Company as provided in Section 3(a)
        above.
        At such time, the person or persons in whose name or names any certificate
        for
        the Shares shall be issuable upon such exercise as provided in Section
3(c)
        below
        shall be deemed to have become the holder or holders of record of the Shares
        represented by such certificate.

       

      (c)  As
        soon
        as practicable after the exercise of this Warrant in whole or in part the
        Company at its expense will cause to be issued in the name of, and delivered
        to,
        the Holder, or as such Holder (upon payment by such Holder of any applicable
        transfer taxes) may direct:

       

      (i)  a
        certificate or certificates for the number of Shares to which such Holder
        shall
        be entitled, and

       

      (ii)  in
        case
        such exercise is in part only, a new warrant or warrants (dated the date
        hereof)
        of like tenor, calling in the aggregate on the face or faces thereof for
        the
        number of Shares equal to the number of such Shares described in this Warrant
        minus the number of such Shares purchased by the Holder upon all exercises
        made
        in accordance with Section 3(a)
        above or
        Section 4
        below.

       

      4.  Representations
        and Warranties of the Company.
        In
        connection with the transactions provided for herein, the Company hereby
        represents and warrants to the Holder that:

       

      (a)  Organization,
        Good Standing, and Qualification.
        The
        Company is a corporation duly organized, validly existing, and in good standing
        under the laws of the State of
        Delaware and has all requisite corporate power and authority to carry on
        its
        business as now conducted. The Company is duly qualified to transact business
        and is in good standing in each jurisdiction in which the failure to so qualify
        would have a material adverse effect on its business or properties.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  Authorization.
        Except
        as may be limited by applicable bankruptcy, insolvency, reorganization or
        similar laws relating to or affecting the enforcement of creditors’ rights, all
        corporate action has been taken on the part of the Company, its officers,
        directors, and stockholders necessary for the authorization, execution and
        delivery of this Warrant. The Company has taken all corporate action required
        to
        make all the obligations of the Company reflected in the provisions of this
        Warrant the valid and enforceable obligations they purport to be. The issuance
        of this Warrant will not be subject to preemptive rights of any stockholders
        of
        the Company. The Company has authorized sufficient shares of Common Stock
        to
        allow for the exercise of this Warrant.

       

      (c)  Valid
        Issuance of Common Stock.
        The
        Shares, when issued, sold, and delivered in accordance with the terms of
        the
        Warrants for the consideration expressed therein, will be duly and validly
        issued, fully paid and nonassessable and, based in part upon the representations
        and warranties of the Holders in this Warrant, will be issued in compliance
        with
        all applicable federal and state securities laws.

       

      5.  Representations
        and Warranties of the Holder.
        In
        connection with the transactions provided for herein, the Holder hereby
        represents and warrants to the Company that:

       

      (a)  Authorization.
        Holder
        represents that he has full power and authority to enter into this Warrant.
        This
        Warrant constitutes the Holder’s valid and legally binding obligation,
        enforceable in accordance with its terms, except as may be limited by (i)
        applicable bankruptcy, insolvency, reorganization, or similar laws relating
        to
        or affecting the enforcement of creditors’ rights and (ii) laws relating to the
        availability of specific performance, injunctive relief or other equitable
        remedies.

       

      (b)  Purchase
        Entirely for Own Account.
        The
        Holder acknowledges that this Warrant is entered into by the Holder in reliance
        upon such Holder’s representation to the Company that the Warrant and the Shares
        (collectively, the “Securities”)
        will
        be acquired for investment for the Holder’s own account, not as a nominee or
        agent, and not with a view to the resale or distribution of any part thereof,
        and that the Holder has no present intention of selling, granting any
        participation in or otherwise distributing the same. By acknowledging this
        Warrant, the Holder further represents that the Holder does not have any
        contract, undertaking, agreement, or arrangement with any person to sell,
        transfer or grant participations to such person or to any third person, with
        respect to the Securities.

       

      (c)  Disclosure
        of Information.
        The
        Holder acknowledges that he has received all the information he considers
        necessary or appropriate for deciding whether to acquire the Securities.
        The
        Holder further represents that he has had an opportunity to ask questions
        and
        receive answers from the Company regarding the terms and conditions of the
        offering of the Securities.

       

      (d)  Investment
        Experience.
        The
        Holder is an investor in securities of companies in the development stage
        and
        acknowledges that he is able to fend for himself, can bear the economic risk
        of
        his investment, and has such knowledge and experience in financial or business
        matters that he is capable of evaluating the merits and risks of the investment
        in the Securities.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (e)  Accredited
        Investor.
        The
        Holder is an “accredited investor” within the meaning of Rule 501 of Regulation
        D, as presently in effect, as promulgated by the Securities and Exchange
        Commission (the “SEC”)
        under
        the Act.

       

      (f)  Restricted
        Securities.
        The
        Holder understands that the Securities are characterized as “restricted
        securities” under the federal securities laws inasmuch as they are being
        acquired from the Company in a transaction not involving a public offering
        and
        that under such laws and applicable regulations such securities may be resold
        without registration under the Act, only in certain limited circumstances.
        In
        this connection, the Holder represents that he is familiar with Rule 144,
        as
        presently in effect, as promulgated by the SEC under the Act (“Rule
        144”),
        and
        understands the resale limitations imposed thereby and by the Act.

       

      (g)  Further
        Limitations on Disposition.
        Without
        in any way limiting the representations set forth above, the Holder further
        agrees not to make any disposition of all or any portion of the Shares unless
        and until the transferee has agreed in writing for the benefit of the Company
        to
        be bound by the terms of this Warrant, including, without limitation, this
        Section 5
        and:

       

      (i)  there
        is
        then in effect a registration statement under the Act covering such proposed
        disposition and such disposition is made in accordance with such registration
        statement; or

       

      (ii)  the
        Holder shall have notified the Company of the proposed disposition and shall
        have furnished the Company with a detailed statement of the circumstances
        surrounding the proposed disposition, and if reasonably requested by the
        Company, the Holder shall have furnished the Company with an opinion of counsel,
        reasonably satisfactory to the Company, that such disposition will not require
        registration of such Shares under the Act. It is agreed that the Company
        will
        not require opinions of counsel for transactions made pursuant to Rule 144
        except in extraordinary circumstances; or

       

      (iii)  if
        other
        than an individual, the Holder shall not make any disposition to any of the
        Company’s competitors as such is reasonably in
        good
        faith determined by the Company.

       

      (h)  Legends.
        It is
        understood that the Securities may bear the following legend:

       

      “THESE
        SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR
        OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL
        SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
        ACT OR
        UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.  Covenants
        of the Company.

       

      (a)  Notices
        of Record Date.
        In the
        event of any taking by the Company of a record of the holders of any class
        of
        securities for the purpose of determining the holders thereof who are entitled
        to receive any dividend (other than a cash dividend which is the same as
        cash
        dividends paid in previous quarters and stock dividends) or other distribution,
        the Company shall mail to the Holder, at least ten (10) days
        prior to such record date, a notice specifying the date on which any such
        record
        is to be taken for the purpose of such dividend or distribution.

       

      (b)  Covenants
        as to Exercise of Shares.
        The
        Company covenants and agrees that all Shares that may be issued upon the
        exercise of the rights represented by this Warrant will, upon issuance in
        accordance with the terms hereof, be validly issued and outstanding, fully
        paid
        and nonassessable, and free from all taxes, liens and charges with respect
        to
        the issuance thereof. The Company further covenants and agrees that the Company
        will at all times during the Exercise Period, have authorized and reserved,
        free
        from preemptive rights, a sufficient number of shares of Common Stock to
        provide
        for the exercise of the rights represented by this Warrant. If at any time
        during the Exercise Period the number of authorized but unissued shares of
        Common Stock shall not be sufficient to permit exercise of this Warrant,
        the
        Company will take such corporate action as may, in the opinion of its counsel,
        be necessary to increase its authorized but unissued shares of Common Stock
        to
        such number of shares as shall be sufficient for such purposes.

       

      7.  Adjustment
        of Exercise Price and Number of Shares.
        The
        number and kind of Shares purchasable upon exercise of this Warrant and the
        Exercise Price shall be subject to adjustment from time to time as
        follows:

       

      (a)  Subdivisions,
        Combinations and Other Issuances.
        If the
        Company shall at any time after the issuance but prior to the expiration
        of this
        Warrant subdivide its Common Stock, by split-up or otherwise, or combine
        its
        Common Stock, or issue additional shares of its Common Stock as a dividend
        with
        respect to any shares of its Common Stock, the number of Shares issuable
        on the
        exercise of this Warrant shall forthwith be proportionately increased in
        the
        case of a subdivision or stock dividend, or proportionately decreased in
        the
        case of a combination. Appropriate adjustments shall also be made to the
        Exercise Price payable per share, but the aggregate Exercise Price payable
        for
        the total number of Shares purchasable under this Warrant (as adjusted) shall
        remain the same. Any adjustment under this Section 7(a)
        shall
        become effective at the close of business on the date the subdivision or
        combination becomes effective, or as of the record date of such dividend,
        or in
        the event that no record date is fixed, upon the making of such
        dividend.

       

      (b)  Reclassification,
        Reorganization and Consolidation.
        In case
        of any reclassification, capital reorganization or change in the capital stock
        of the Company (other than as a result of a subdivision, combination or stock
        dividend provided for in Section 7(a)
        above),
        then, as a condition of such reclassification, reorganization or change,
        lawful
        provision shall be made, and duly executed documents evidencing the same
        from
        the Company or its successor shall be delivered to the Holder, so that the
        Holder shall have the right at any time prior to the expiration of this Warrant
        to purchase, at a total price equal to that payable upon the exercise of
        this
        Warrant, the kind and amount of shares of stock and other securities or property
        receivable in connection with such reclassification, reorganization or change
        by
        a holder of the same number and type of securities as were purchasable as
        Shares
        by the Holder immediately prior to such reclassification, reorganization
        or
        change. In any such case appropriate provisions shall be made with respect
        to
        the rights and interest of the Holder so that the provisions hereof shall
        thereafter be applicable with respect to any shares of stock or other securities
        or property deliverable upon exercise hereof, and appropriate adjustments
        shall
        be made to the Exercise Price per Share payable hereunder, provided the
        aggregate Exercise Price shall remain the same.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)  Notice
        of Adjustment.
        When
        any adjustment is required to be made in the number or kind of shares
        purchasable upon exercise of the Warrant, or in the Exercise Price, the Company
        shall promptly notify the Holder of such event and of the number of Shares
        or
        other securities or property thereafter purchasable upon exercise of this
        Warrant.

       

      8.  Choice
        of Law, Venue and Forum.
        This
        Agreement, the entire relationship of the parties hereto, and any litigation
        between the parties (whether grounded in contract, tort, statute, law or
        equity)
        shall be governed by, construed in accordance with, and interpreted pursuant
        to
        the laws of the State of Texas, without giving effect to its choice of laws
        principles. Exclusive venue for any litigation between the parties hereto
        shall
        be in Harris County, Texas, and shall be brought in the State District Courts
        of
        Harris County, Texas, or in the United States District Court for the Southern
        District of Texas, Houston Division. The parties hereto waive any challenge
        to
        personal jurisdiction or venue (including without limitation a challenge
        based
        on inconvenience) in Harris County, Texas, and specifically consent to the
        jurisdiction of the State District Courts of Harris County and the United
        States
        District Court for the Southern District of Texas, Houston
        Division.

       

      9.  Successors
        and Assigns.
        The
        terms and provisions of this Warrant and the Purchase Agreement shall inure
        to
        the benefit of, and be binding upon, the Company Holder hereof and their
        respective successors and assigns.

       

      10.  Titles
        and Subtitles.
        The
        titles and subtitles used in this Warrant are used for convenience only and
        are
        not to be considered in construing or interpreting this Warrant.

       

      11.  Notices.
        All
        notices and other communications given or made pursuant hereto shall be in
        writing and shall be deemed effectively given: (a) upon personal delivery
        to the
        party to be notified, (b) when sent by confirmed electronic mail or facsimile
        if
        sent during normal business hours of the recipient, and if not so confirmed,
        then on the next business day, (c) five (5) days after having been sent by
        registered or certified mail, return receipt requested, postage prepaid,
        or (d)
        one (1) day after deposit with a nationally recognized overnight courier,
        specifying next day delivery, with written verification of receipt. All
        communications shall be sent to the respective parties at the following
        addresses (or at such other addresses as shall be specified by notice given
        in
        accordance with this Section 11):

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      If
        to the
        Company:

       

      Trulite,
        Inc.

      5
        Houston
        Center

      1401
        McKinney Street, Suite 900

      Houston,
        TX 77010-4035

      Attention:
        Jonathan Godshall

       

      If
        to
        Holder:

       

      Andrew
        Nielson

      ___________________________

      ___________________________

      Attention:
        __________________

      

      12.  Finder’s
        Fee.
        Each
        party represents that it neither is or will be obligated for any finder’s fee or
        commission in connection with this transaction. The Holder agrees to indemnify
        and to hold harmless the Company from any liability for any commission or
        compensation in the nature of a finder’s fee (and the costs and expenses of
        defending against such liability or asserted liability) for which the Holder
        is
        responsible. The Company agrees to indemnify and hold harmless the Holder
        from
        any liability for any commission or compensation in the nature of a finder’s fee
        (and the costs and expenses of defending against such liability or asserted
        liability) for which the Company or any of its officers, employees or
        representatives is responsible.

       

      13.  Expenses.
        If any
        action at law or in equity is necessary to enforce or interpret the terms
        of
        this Warrant, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to
        which
        such party may be entitled.

       

      14.  Entire
        Agreement; Amendments and Waivers.
        This
        Warrant and any other documents delivered pursuant hereto constitute the
        full
        and entire understanding and agreement between the parties with regard to
        the
        subjects hereof and thereof. Nonetheless, any term of this Warrant may be
        amended and the observance of any term of this Agreement may be waived (either
        generally or in a particular instance and either retroactively or
        prospectively), with the written consent of the Company and the Holder; or
        if
        this Warrant has been assigned in part, by the holders of rights to purchase
        a
        majority of the Shares originally issuable pursuant to this
        Warrant.

       

      15.  Severability.
        If any
        provision of this Warrant is held to be unenforceable under applicable law,
        such
        provision shall be excluded from this Warrant and the balance of the Warrant
        shall be interpreted as if such provision were so excluded and shall be
        enforceable in accordance with its terms.

       

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        EXHIBIT
          A

         

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the date
        first
        above written.

       

       

      
        	 	 	 
	 	
                COMPANY:

                 

                
                  Trulite,
                    Inc.

                  (a
                    Delaware corporation)

                

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Jonathan Godshall, President
	 	 

      

      

        	 	       
                	 
	 	
                Address: 5
                  Houston Center

                 1401
                  McKinney Street, Suite 900

                 Houston,
                  TX 77010-4035

              
	 	 
	
                ACKNOWLEDGED
                  AND AGREED:

              	 
	 	 
	HOLDER:
                	 
	 	 
	________________________________ 	 
	Andrew
                Nielson	 
	 	 
	
                Address: _______________________

                 _______________________

                 

              	 

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

      NOTICE
        OF EXERCISE

       

      Trulite,
        Inc.

      Attention:
        Corporate Secretary

       

      The
        undersigned hereby elects to purchase, pursuant to the provisions of the
        Warrant, as follows:

      _____________
        shares of Common Stock pursuant to the terms of the attached Warrant, and
        tenders herewith payment in cash of the Exercise Price of such Shares in
        full,
        together with all applicable transfer taxes, if any.

       

      The
        undersigned hereby represents and warrants that Representations and Warranties
        in Section 5
        hereof
        are true and correct as of the date hereof.

       

      
        	 	 	 
	 	
                HOLDER:

              
	 
 	 
 	 
 
	Date: ___________________	By:  	 
	 	
                

              

      

      
        	 	 	 
	 	
                Address: ________________________________________________

                 ________________________________________________

                 ________________________________________________

              
	 	       
                	 

      

       

      Name
        in
        which Shares should be registered:

      ________________________________________

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        EXHIBIT
          A

         

      

      ASSIGNMENT
        FORM

       

      (To
        assign the foregoing Warrant, execute this form and supply required information.
        Do not use this form to purchase shares.)

       

      For
        Value Received,
        the
        foregoing Warrant and all rights evidenced thereby are hereby assigned
        to

       

      
        	
                Name:
                   ___________________________________________________________________________________

              
	
                 (Please
                  Print)

              
	 
	
                Address:
                   _________________________________________________________________________________

              
	
                (Please
                  Print)

              	 
	 	 
	Dated: ________________________	 	 
	 	 	 
	Holder’s

                Signature:
                  ________________________ 

              	 	 
	 	 	 
	Holder’s

                Address:
                  ________________________

              	 	 

      

       

      NOTE:
        The
        signature to this Assignment Form must correspond with the name as it appears
        on
        the face of the Warrant. Officers of corporations and those acting in a
        fiduciary or other representative capacity should provide proper evidence
        of
        authority to assign the foregoing Warrant.GRAIN
      SUPPLY AGREEMENT

    

    THIS
      GRAIN SUPPLY AGREEMENT is
      made
      and entered into as of this first day of March, 2006, by and between Show Me
      Ethanol, LLC, a Missouri limited liability company (the “Company”), and
      Ray-Carroll Grain Growers, Inc., a Missouri cooperative association (the
“Supplier”).

    

    WITNESSETH:

    

    WHEREAS,
      the
      Supplier is engaged in the business of sourcing and selling corn (the
“Product”), milo and other grains; and

    

    WHEREAS,
      the
      Company desires to purchase its requirements for the Product from the Supplier
      and to assure itself of a supply of the Product which the Company uses in its
      ethanol distillation operations; and

    

    WHEREAS,
      the
      Supplier is willing to source and sell the Product to the Company in quantities
      sufficient to satisfy the Company’s requirements during the entire term of this
      Agreement;

    

    NOW,
      THEREFORE,
      for and
      in consideration of the premises and the mutual covenants and promises herein
      contained, the parties hereto agree as follows:

    

    1. Quantity.
      Subject
      to the terms and conditions herein stated, the Company agrees to buy from the
      Supplier all of its requirements for the Product for the operation of a 50-65
      million gallon per year ethanol facility, and the Supplier agrees to supply
      the
      Product in a timely manner to satisfy such requirements during the term of
      this
      Agreement and any extension thereof. The Supplier hereby represents, warrants
      and agrees that the Supplier’s capacity is sufficient to satisfy the Company’s
      projected requirements for the Product of up to 22 million bushels per year
      for
      the entire term of this Agreement.

    

    2. Quality
      Control.
      

    

    (a) Product
      delivered to Company shall be Number 2, yellow corn at 15% moisture (Milo may
      be
      substituted as Product with the agreement of both parties and if so substituted,
      FM shall be eliminated as a grade factor). Supplier shall test for alfatoxin
      to
      meet industry requirements for sales of distillers grains derived from the
      Product.

    

    (b) Company
      shall be entitled to sample Product delivered by Supplier pursuant to this
      Agreement (“Graded Product”). Any samples of Graded Product that deviate from
      the standards set forth in 2 (a) shall be subject to grading by a licensed
      Missouri or Federal inspection service. The findings of such service based
      on a
      composite sample shall be binding on Supplier and Company .

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (c) Discounts
      and bonuses to the pricing set forth in Section 3 for Graded Product shall
      be
      based on Supplier’s established discounts and bonuses for like grades on corn
      delivered to Supplier. 

    

    3. Pricing.
      Supplier shall use commercially reasonable efforts to supply Product to the
      Company at a competitive price. Pricing for purchases pursuant to 3(a) and
      3(b)
      shall be done as of 9:00 am for the previous days sales, or as otherwise agreed
      by the parties. All sales of Product shall be priced on a grain basis as follows
      (the “Purchase Price”):

    

    (a) Product
      sourced by Supplier, other than for specific purchases covered by (b) and (c)
      below, shall be priced at $0.116 per bushel (“Put Through Charge”) over
      Supplier’s posted bid at its Highway 24 East facility at Carrollton, Missouri
      (the “Supply Facility”).

    

    (b) Product
      sourced by Supplier other than through deliveries by corn producers directly
      to
      the Supply Facility shall be priced at the Put Through Charge above Supplier’s
      delivered cost ( rounded to the nearest $0.001 per bushel) to the Supply
      Facility.

    

    (c) Advance
      purchases of Product shall be negotiated between the Supplier and the
      Company.

    

    (d) The
      Put
      Through Charge shall be increased by 3% effective each anniversary date of
      the
      Agreement. 

    

    (e) Company
      shall have the right to audit annually, at its own expense, the records of
      Supplier to determine if the Purchase Price paid for Product has been in
      accordance with the pricing set forth herein. Any adjustments necessary to
      meet
      the pricing set forth herein shall be made within 10 days of the audit
      completion.

    

    (f) In
      the
      event that crop production in Carroll county for any year falls below 50% of
      the
      average Carroll County yields established by the USDA, Supplier and Company
      shall jointly determine the best course of action to control cost and continue
      a
      sufficient supply of Product to Company for the operation of its ethanol
      facility.

    

    4. Orders
      and Terms of Shipment.
      Shipments of Product by Supplier shall be weighed via an automatic bulk weighing
      system certified by the State of Missouri or other licensed agency. Title to
      the
      Product shall transfer from Supplier to Company immediately after the Product
      passes through the bulk weighing system.

    

    5. Notice
      of Scheduled Downtime.
      Not
      less than thirty days prior to the commencement of any planned maintenance
      or
      downtime, the Company shall deliver to the Supplier a written notice of such
      downtime. Failure to notify Supplier thirty days prior to such planned
      maintenance or downtime shall result in a $2,500 per day fee for each day less
      than thirty days that Supplier is given notice. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    6. Terms
      of Payment.
      The
      terms of payment of the Purchase Price hereunder shall be made weekly on Tuesday
      of each week for the immediately preceding week’s deliveries. Payments shall be
      made to the Supplier at its office in Richmond, Missouri, in lawful money of
      the
      United States of America (or by wire transfer as directed by Supplier). Any
      payment to Company not received pursuant to this section shall be assessed
      a
      daily interest charge equal to the prorated monthly charge Supplier is then
      charging its farm customers.

    

    7. Term
      of Agreement.

    

    (a) This
      Agreement shall be in effect for a term of 20 years from the first delivery
      of
      Product by Supplier to Company and thereafter shall continue in effect for
      successive one year terms unless and until terminated by either party hereto,
      with or without cause, by written notice given to the other party not less
      than
      60 days prior to the expiration of the initial term hereof or any subsequent
      extension thereof, as the case may be; provided, however, that this Agreement
      may be terminated earlier by either party, for cause, as hereinafter
      provided.

    

    (b) In
      the
      event that either party hereto shall default in the performance of any of its
      obligations hereunder and (except as otherwise provided in paragraph 7(c))
      if
      such default shall not be remedied within ten days following the giving of
      written notice of such default by the nondefaulting party to the defaulting
      party then the nondefaulting party may, but shall not be obligated to, terminate
      this Agreement immediately and without further notice. Failure of either party
      in any instance to terminate upon default by the other party in the performance
      of any obligation hereunder shall not constitute a waiver of any future rights
      of termination. Any such termination hereof shall not waive any legal or
      equitable remedy available to the nondefaulting party against the defaulting
      party by reason of such default.

    

    (c) Either
      party hereto shall be deemed to be in default hereunder if at any time it shall
      be adjudicated a bankrupt or insolvent, or an order shall be entered, remaining
      unstayed by appeal or otherwise for sixty days, appointing a receiver or trustee
      for such party or any of its properties, or approving a petition seeking
      reorganization or other relief under the bankruptcy or similar laws of the
      United States or any state, or such party shall file a petition to take
      advantage of any statutes for the protection of debtors, or make a general
      assignment for the benefit of creditors. Upon the occurrence of any such default
      under the provisions of this subparagraph, the nondefaulting party shall be
      entitled to terminate this Agreement immediately upon written notice given
      to
      the defaulting party. 

    

    8. Force
      Majeure.
      In the
      event either party is prevented from performing this contract by circumstances
      beyond its control, including without limitation labor disputes, fire,
      explosion, flood, acts of God, war or other hostilities, civil commotion,
      domestic or foreign governmental acts, orders or regulations, the obligation
      of
      the Supplier to deliver and the obligation of the Company to accept delivery
      of
      the Product during the period of such disability shall be suspended and the
      quantities so affected shall be eliminated from this Agreement without liability
      to either party.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    9. Notice.
      Any
      notice which either party may be required or shall desire to give hereunder
      shall be deemed to be duly given when personally delivered or when mailed by
      certified or registered mail, postage prepaid, to the other party at the address
      indicated below or at such other address as either party hereafter may designate
      to the other party in writing:

    

    Company:

    

    Show
      Me
      Ethanol, LLC

    Highway
      10 West

    Richmond,
      MO 64085

    FAX:
      816-776-3213

    ATTN:
      Chairman of the Board

    

    Supplier:

    

    Ray-Carroll
      County Grain Growers, Inc.

    Highway
      10 West, P.O. Box 158

    Richmond,
      MO 64085

    FAX:
      816-776-3213

    ATTN:
      General Manager

    

    10. Entire
      Agreement.
      This
      Agreement cancels, merges and supersedes all prior and contemporaneous
      understandings and agreements relating to the subject matter of this Agreement,
      written or oral, between the parties hereto and contains the entire agreement
      of
      the parties hereto, and the parties hereto have no agreements, representations
      or warranties relating to the subject matter of this Agreement which are not
      set
      forth herein. This Agreement shall not be amended, modified or supplemented
      in
      any manner whatsoever except as otherwise provided herein or in writing signed
      by each of the parties hereto. Any terms or conditions of any shipping
      instructions, order forms or other documents used in connection with the
      operation of this Agreement which conflict with any of the provisions hereof
      shall be void and of no effect.

    

    11. Assignment;
      Binding.
      Neither
      this Agreement, nor any of the rights, duties or obligations of either party
      hereunder, may be assigned or otherwise delegated by such party without the
      prior written consent of the other party hereto, except that either party is
      entitled to assign this Agreement to its lenders as collateral. This Agreement
      shall be binding upon, and inure to the benefit of, the parties hereto and
      their
      successors and permitted assigns.

    

    12. Amendment.
      This
      Agreement may be amended or modified only by a writing signed by each of the
      parties hereto. The parties agree to meet every three years after the first
      delivery date of Product under this Agreement to discuss any adjustments that
      may be necessary or advisable given the changing market conditions. If the
      parties fail to agree to any modifications to this Agreement, it shall continue
      in full force and effect as written.

    

    13. Law
      Governing.
      This
      Agreement shall be governed by and construed and interpreted in accordance
      with
      the laws of the State of Missouri applicable to agreements made and to be
      performed entirely within such State, including all matters of construction,
      validity and performance.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this All Requirements Agreement t to be duly executed
      as of the day and year first above written.

    

     

    
      	 	
              SHOW
                ME ETHANOL, LLC

              

              By
                David
                Durham                                                             
                

              Chairman
                of the Board

              

              “COMPANY”

              

              

              RAY-CARROLL
                COUNTY GRAIN ROWERS, INC.

              

              By
                Mike
                Norwald                                                            
                

              General
                Manager

              

              “SUPPLIER”

            

    

     

     

    
      
        
        

      

      
        5

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