Document:

REGISTRATION
        RIGHTS AGREEMENT

       

      This
        Registration Rights Agreement (this “Agreement”),
        is
        entered into as of September 16, 2005 by and between Electric Aquagenics
        Unlimited, Inc., a Delaware corporation (the “Company”),
        and
        Water Science, LLC, a Florida limited liability company (the “Investor”).

       

      RECITALS

       

      WHEREAS,
        the
        Investor is the holder of a $3,000,000 Senior Secured Convertible Preferred
        Note
        (the “Note”)
        convertible into shares of the Company’s common stock, par value $.0001 per
        share (the “Common
        Stock”);

       

      WHEREAS,
        the
        Investor is the holder of a Warrant to purchase 2,000,000 shares of the
        Company’s Common Stock expiring on September 16, 2008 (the “Warrant”);
        and

       

      WHEREAS,
        the
        Company and the Investor deem it to be in their respective best interests
        to set
        forth the rights of the Investor in connection with the sale of shares of
        Common
        Stock issuable upon conversion of the Note or upon exercise of the Warrant
        (the
“Registrable
        Shares”)
        and
        are entering into this Agreement as a condition to and in connection with
        the
        Subscription Agreement entered into by and between the Investor and the Company
        on the date hereof (the “Subscription
        Agreement”).

       

      NOW,
        THEREFORE, in
        consideration of the premises and other good and valuable consideration,
        the
        receipt and sufficiency of which are hereby acknowledged, each of the parties
        hereto hereby agrees as follows:

       

      AGREEMENT

       

      1.  Registration
        Rights.

       

      (a)  Within
        180 (but no later than 360 days) after the date hereof, the Company shall
        prepare and file with the Securities and Exchange Commission (the “SEC”),
        a
        registration statement and such other documents as may be necessary, and
        use its
        best efforts to have such registration statement declared effective as soon
        as
        reasonably practicable after such filing, so as to permit the registered
        resale
        of the Registrable Shares, for a period of two (2) years following the issuance
        of the last Registrable Share. The Company will include in such registration
        statement the information required under the Securities Act of 1933, as amended
        (the “Securities
        Act”)
        to be
        so included concerning the Investor, as provided by the Investor pursuant
        to
        this Agreement and any other agreements between the parties, including any
        changes in such information that may be provided by the Investor in writing
        to
        the Company from time to time.

       

      (b)  In
        the
        event that the Company does not file a registration statement to register
        the
        Registrable Shares with the SEC within 180 (but no later than 360 days) after
        the date hereof, or within such period as extended by such additional number
        of
        days as are solely and directly attributable to any delay caused by any act
        or
        failure to act by the Investor or its counsel, the Company will be required
        to
        pay a penalty to the Investor equal to one percent (1%) of the purchase price
        for the Investor’s Registrable Shares, and an additional one percent (1%) for
        each 30-day period during which such registration statement is not
        filed.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (c)  Notwithstanding
        the foregoing provisions of this Section 1, the Company may voluntarily suspend
        the effectiveness of any such registration statement for a limited time,
        which
        in no event shall be longer than 60 days in any three-month period and no
        longer
        than 120 days in any twelve month period, if the Company has been advised
        in
        writing by counsel or underwriters to the Company that the offering of any
        Registrable Shares pursuant to the registration statement would materially
        adversely affect, or would be improper in view of (or improper without
        disclosure in a prospectus), a proposed financing, reorganization,
        recapitalization, merger, consolidation, or similar transaction involving
        the
        Company, in which case the Company shall keep such registration statement
        effective for an additional period of time beyond two (2) years following
        the
        last issuance of a Registrable Share equal to the number of days the
        effectiveness thereof is suspended pursuant to this provision. The Company
        shall
        notify the Investor to such effect, and, upon receipt of such notice, the
        Investor shall immediately discontinue any sales of Registrable Shares pursuant
        to such registration statement until the Investor has received copies of
        a
        supplemented or amended prospectus or until the Investor is advised in writing
        by the Company that the then current prospectus may be used and has received
        copies of any additional or supplemental filings that are incorporated or
        deemed
        incorporated by reference in such prospectus.

       

      (d)  If
        any
        event occurs that would cause any such registration statement to contain
        a
        material misstatement or omission or not to be effective and usable during
        the
        period that such registration statement is required to be effective and usable,
        the Company shall promptly notify the Investor of such event and, if requested,
        the Investor shall immediately cease making offers of Registrable Shares
        and
        return all prospectuses to the Company. The Company shall promptly file an
        amendment to the registration statement to correct such misstatement or omission
        and use its commercially reasonable efforts to cause such amendment to be
        declared effective as soon as practicable thereafter. The Company shall promptly
        provide the Investor with revised prospectuses and, following receipt of
        the
        revised prospectuses, the Investor shall be free to resume making offers
        of the
        Registrable Shares. In the event of such an occurrence, the Company shall
        keep
        such registration statement effective for an additional period of time beyond
        two (2) years following the last issuance of a Registrable Share equal to
        the
        number of days the effectiveness thereof is suspended pursuant to this
        provision.

       

      (e)  Notwithstanding
        any provision contained herein to the contrary, the Company’s obligation to
        include, or continue to include, Registrable Shares in any such registration
        statement under this Section 1 shall terminate to the extent such shares
        are
        eligible for resale under Rule 144(k) promulgated under the Securities
        Act.

       

      (f)  If
        and
        whenever the Company is required by the provisions of this Agreement to use
        its
        commercially reasonable efforts to effect the registration of the Registrable
        Shares under the Securities Act for the account of the Investor, the Company
        will, as promptly as possible:

       

      (i)  prepare
        and file with the SEC a registration statement complying with applicable
        requirements under the Securities Act with respect to such securities and
        use
        its commercially reasonable efforts to cause such registration statement
        to
        become and remain effective;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (ii) prepare
        and file with the SEC such amendments and supplements to such registration
        statement and the prospectus used in connection therewith as may be necessary
        to
        keep such registration statement effective and to comply with the requirements
        of the Securities Act and the rules and regulations promulgated by the SEC
        thereunder relating to the sale or other disposition of the securities covered
        by such registration statement; and

       

      (iii) furnish
        to the Investor such numbers of copies of a prospectus complying with the
        requirements of the Securities Act, and such other documents as the Investor
        may
        reasonably request in order to facilitate the public sale or other disposition
        of the Registrable Shares owned by the Investor, but the Investor shall not
        be
        entitled to use any selling materials other than a prospectus and such other
        materials as may be approved by the Company, which approval will not be
        unreasonably withheld.

       

      (g)  The
        expenses incurred by the Company in connection with action taken by the Company
        to comply with this Section 1, including, without limitation, all registration
        and filing fees, printing and delivery expenses, accounting fees, fees and
        disbursements of counsel to the Company, consultant and expert fees, and
        premiums for liability insurance, if the Company chooses to obtain such
        insurance, obtained in connection with a registration statement filed to
        effect
        such compliance and all expenses, including counsel fees, of complying with
        any
        state securities laws, shall be paid by the Company. All fees and disbursements
        of any counsel, experts, or consultants employed by the Investor shall be
        borne
        by the Investor. The Company shall not be obligated in any way in connection
        with any registration pursuant to this Section 1 for any selling commissions
        or
        discounts payable by the Investor to any underwriter or broker of securities
        to
        be sold by the Investor. The Investor agrees that any such selling commissions
        or discounts shall be borne by the Investor.

       

      (h)  The
        Company will indemnify and hold harmless the Investor, its officers, directors
        and each underwriter of such securities, and any person who controls the
        Investor or underwriter within the meaning of Section 15 of the Securities
        Act
        (each an “Investor
        Indemnified Party”),
        against all claims, actions, losses, damages, liabilities and expenses, joint
        or
        several, to which any of such persons may become subject under the Securities
        Act or otherwise, insofar as such losses, claims, damages, liabilities or
        actions arise out of or are based upon any untrue statement of any material
        fact
        contained in any registration statement under which such securities were
        registered under the Securities Act, any preliminary prospectus or final
        prospectus contained therein, or any amendment or supplement thereof, or
        arise
        out of or are based upon the omission to state therein a material fact required
        to be stated therein or necessary to make the statements therein, in light
        of
        the circumstances under which they were made, not misleading, and will reimburse
        such Investor Indemnified Party for any legal and any other expenses reasonably
        incurred by such Investor Indemnified Party in connection with investigating
        or
        defending any such loss, claim, damage, liability, or action; provided,
        however,
        that
        the Company will not be liable in any such case to the extent that any such
        loss, claim, damage, liability or action arises directly out of or is based
        primarily upon an untrue statement or omission made in said registration
        statement, said preliminary prospectus or said prospectus, or said amendment
        or
        supplement in reliance upon and in conformity with written information furnished
        to the Company by the Investor or such underwriter specifically for use in
        the
        preparation thereof.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (i)  At
        any
        time when a prospectus relating to the Registrable Shares is required to
        be
        delivered under the Securities Act, the Company will notify the Investor
        of the
        happening of any event, upon the notification or awareness of such event
        by an
        executive officer of the Company, as a result of which the prospectus included
        in such registration statement, as then in effect, includes an untrue statement
        of material fact or omits to state a material fact required to be stated
        therein
        or necessary to make the statements therein not misleading in light of the
        circumstances then existing.

       

      (j)  In
        the
        event of any registration of any securities under the Securities Act pursuant
        to
        this Section 1, the Investor agrees to indemnify and hold harmless the Company,
        its officers, directors and any person who controls the Company within the
        meaning of Section 15 of the Securities Act (each a “Company
        Indemnified Party”),
        against any losses, claims, damages, liabilities, or actions, joint or several,
        to which a Company Indemnified Party may become subject under the Securities
        Act
        or otherwise, insofar as such losses, claims, damages, liabilities, or actions
        arise out of or are based upon any untrue statement of any material fact
        contained in any registration statement under which such securities were
        registered under the Securities Act, any preliminary prospectus or final
        prospectus contained therein, or any amendment or supplement thereto, or
        arise
        out of or are based upon the omission to state therein a material fact required
        to be stated therein or necessary to make the statements therein not misleading,
        in each case to the extent that any such loss, claim, damage, liability,
        or
        action arises out of or is based upon an untrue statement or omission made
        in
        said registration statement, preliminary prospectus or prospectus or amendment
        or supplement in reliance upon and in conformity with written information
        furnished to the Company by the Investor or any affiliate (as defined in
        the
        Securities Act) of the Investor specifically for use in the preparation
        thereof.

       

      (k)  Any
        party
        entitled to indemnification hereunder will (i) give prompt written notice
        to the
        indemnifying party of any claim with respect to which it seeks indemnification,
        and (ii) unless in such indemnified party’s reasonable judgment, based upon
        advise of counsel, a conflict of interest between such indemnified and
        indemnifying parties may exist with respect to such claim, permit such
        indemnifying party to assume the defense of such claim with counsel reasonably
        satisfactory to the indemnified party. If such defense is assumed, the
        indemnified party will not be subject to any liability for any settlement
        made
        by the indemnifying party without its consent (which consent may not be
        unreasonably withheld). An indemnifying party who is not entitled to, or
        elects
        not to, assume the defense of a claim will not be obligated to pay the fees
        and
        expenses of more than one counsel for all parties indemnified by such
        indemnifying party, based upon advise of counsel, with respect to such claim,
        unless in the reasonable judgment of any indemnified party a conflict of
        interest may exist between such indemnified party and any other of such
        indemnified parties with respect to such claim.

       

      (l)  With
        a
        view to making available to the Investor the benefits of Rule 144 promulgated
        under the Securities Act, the Company agrees that it will use its commercially
        reasonable efforts to maintain registration of its Common Stock under Section
        12
        or 15 of the Securities Exchange Act of 1934, as amended (the “Exchange
        Act”),
        and
        to file with the SEC in a timely manner all reports and other documents required
        to be filed by an issuer of securities registered under the Exchange Act
        so as
        to maintain the availability of Rule 144. Upon the request of any record
        owner,
        the Company will deliver to such owner a written statement as to whether
        it has
        complied with the reporting requirements of Rule 144.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2.  Representations
        and Warranties of the Investor.
        The
        Investor hereby represents and warrants to the Company as follows:

       

      (a)  The
        Investor is acquiring the Registrable Shares for its own account, for investment
        and not with a view to, or for resale in connection with, any distribution
        or
        public offering thereof within the meaning of the Securities Act, and applicable
        state securities laws.

       

      (b)  The
        Investor acknowledges that the certificate(s) representing the Registrable
        Shares acquired by the Investor shall bear a restrictive legend substantially
        as
        follows:

       

      THIS
        SECURITY HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF
        1933
        (THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED OR SOLD
        UNLESS REGISTERED AND QUALIFIED PURSUANT TO THE APPLICABLE PROVISIONS OF
        FEDERAL
        AND STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR
        QUALIFICATION APPLIES. THEREFORE, NO SALE OR TRANSFER OF THIS SECURITY SHALL
        BE
        MADE, NO ATTEMPTED SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL
        NOT BE
        REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH TRANSACTION
        HAS BEEN DULY REGISTERED UNDER THE ACT AND QUALIFIED OR APPROVED UNDER
        APPROPRIATE STATE SECURITIES LAWS, OR (B) THE ISSUER HAS FIRST RECEIVED AN
        OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH REGISTRATION,
        QUALIFICATION OR APPROVAL IS NOT REQUIRED.

       

      (c)  The
        Investor acknowledges that the Registrable Shares will be “restricted
        securities” within the meaning of Rule 144 under the Securities Act, are subject
        to restrictions on transferability and resale and may not be transferred
        or
        resold except as permitted under the Securities Act and applicable state
        securities laws, pursuant to registration or exemption therefrom. The Investor
        is aware that the Investor may be required to bear the financial risks of
        this
        investment for an indefinite period of time.

       

      (d)  The
        Investor further represents and warrants that the Investor is an “accredited
        investor” within the meaning of Rule 501(a) of Regulation D under the Securities
        Act, and the Investor has executed the Certificate of Accredited Investor
        Status, attached hereto as Exhibit
        A.

       

      (e)  The
        Investor has full power and authority to execute and deliver this Agreement,
        (ii) the execution and delivery by the Investor of this Agreement and the
        performance by it of its obligations hereunder have been authorized by all
        necessary action of the Investor, (iii) this Subscription Agreement has been
        duly and validly executed and delivered by the Investor and constitutes the
        legal, valid and binding obligation of the Investor, and (iv) this Agreement
        is
        enforceable against the Investor in accordance with its terms.

       

      3.  Representations
        and Warranties of the Company.
        The
        Company hereby represents and warrants to the Investor as follows:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (a)  The
        Company is duly incorporated, validly existing and in good standing under
        the
        laws of its state of incorporation, and is duly qualified to do business
        as a
        foreign corporation in all jurisdictions in which the failure to be so qualified
        would materially and adversely affect the business or financial condition,
        properties or operations of the Company.

       

      (b)  The
        Company has duly authorized the issuance and sale of the Registrable Shares
        in
        accordance with the terms of this Agreement (as described herein) by all
        requisite corporate action, including the authorization of the Company’s Board
        of Directors of the issuance and sale of the Registrable Shares in accordance
        herewith, and the execution, delivery and performance of any other agreements
        and instruments executed in connection herewith. This Agreement constitutes
        a
        valid and legally binding obligation of the Company, enforceable in accordance
        with its terms, except (i) as limited by applicable bankruptcy, insolvency,
        reorganization, moratorium, and other laws of general application affecting
        enforcement of creditors’ rights generally, (ii) as limited by laws relating to
        the availability of specific performance, injunctive relief, or other equitable
        remedies, and (iii) to the extent the indemnification provisions contained
        herein may be limited by applicable federal or state securities
        laws.

       

      4.  Survival;
        Indemnification.
        All
        representations, warranties, covenants and the indemnification obligations
        contained in this Agreement shall survive (i) the acceptance of this Agreement
        by the Company, (ii) changes in the transactions, documents and instruments
        described herein which are not material or which are to the benefit of the
        Investor, and (iii) the death or disability of the Investor. The Investor
        understands the meaning and legal consequences of the representations,
        warranties and covenants in Section 2 hereof and that the Company has relied
        upon such representations, warranties and covenants in determining the
        Investor’s qualification and suitability to purchase Registrable Shares. The
        Investor hereby agrees to indemnify, defend and hold harmless the Company
        and
        its respective officers, directors, employees, agents and controlling persons,
        from and against any and all losses, claims, damages, liabilities, expenses
        (including attorneys’ fees and disbursements), judgments or amounts paid in
        settlement of actions arising out of or resulting from the untruth of any
        representation of the Investor herein or the breach of any warranty or covenant
        of the Investor made herein. Notwithstanding the foregoing, no representation,
        warranty, covenant or acknowledgment made herein by the Investor shall in
        any
        manner be deemed to constitute a waiver of any rights granted to it under
        the
        Securities Act or state securities laws or otherwise.

       

      5.  Notices.
        All
        notices and other communications provided for under this Note shall be in
        writing (including by facsimile) and addressed, delivered or transmitted
        in
        accordance with Section 6.7 of the Subscription Agreement.

       

      6.  Assignability.
        This
        Agreement is not assignable by the Investor, and may not be modified, waived
        or
        terminated except by an instrument in writing signed by the party against
        whom
        enforcement of such modification, waiver or termination is sought.

       

      7.  Binding
        Effect.
        Except
        as otherwise provided herein, this Agreement shall be binding upon and inure
        to
        the benefit of the parties and their respective heirs, executors,
        administrators, successors, legal representatives and permitted assigns,
        and the
        agreements, representations, warranties and acknowledgments contained herein
        shall be deemed to be made by and be binding upon such heirs, executors,
        administrators, successors, legal representatives and permitted
        assigns.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      8.  Obligations
        Irrevocable.
        The
        obligations of the Investor shall be irrevocable, except with the consent
        of the
        Company, until the issuance of the Registrable Shares; provided,
        however,
        that
        the Investor may revoke the subscription hereunder at any time prior to the
        Company’s acceptance of same.

       

      9.  Entire
        Agreement.
        This
        Agreement constitutes the entire agreement of the Investor and the Company
        relating to the matters contained herein, superseding all prior contracts
        or
        agreements, whether oral or written.

       

      10.  Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Delaware, without regard to the principles of conflicts of law thereof
        that would require the application of the laws of any jurisdiction other
        than
        Delaware.

       

      11.  Severability.
        If any
        provision of this Agreement or the application thereof to the Investor or
        any
        circumstance shall be held invalid or unenforceable to any extent, the remainder
        of this Agreement and the application of such provision to other subscriptions
        or circumstances shall not be affected thereby and shall be enforced to the
        greatest extent permitted by law.

       

      12.  Headings.
        The
        headings in this Agreement are inserted for convenience and identification
        only
        and are not intended to describe, interpret, define, or limit the scope,
        extent
        or intent of this Agreement or any provision hereof.

       

      13.  Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which when
        so
        executed and delivered shall be deemed to be an original and all of which
        together shall be deemed to be one and the same agreement.

       

      (Remainder
        of Page Intentionally Left Blank)

      
         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      IN
        WITNESS WHEREOF, the parties have caused the execution of this Agreement
        by
        their duly authorized representatives as of the day and the year first above
        written.

       

      
        	 	 	 
	 	ELECTRIC
                AQUAGENICS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                
Name: 
	 	Title:

      
        	 	 	 
	 	WATER
                SCIENCE, LLC
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                
Name:
                Peter Ullrich 
	 	Title:
                Sole Member 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
        A

       

      CERTIFICATE
        OF ACCREDITED INVESTOR STATUS

       

      The
        undersigned is an “accredited investor,” as that term is defined in Regulation D
        under the Securities Act of 1933, as amended (the “Securities
        Act”).
        The
        undersigned has checked the box below indicating the basis on which the
        undersigned is representing the undersigned’s status as an “accredited
        investor”:

       

      
        	 	
                o

              	
                a
                  bank as defined in Section 3(a)(2) of the Securities Act, or any
                  savings
                  and loan association or other institution as defined in Section
                  3(a)(5)(A)
                  of the Securities Act whether acting in its individual or fiduciary
                  capacity; a broker or dealer registered pursuant to Section 15
                  of the
                  Securities Exchange Act of 1934, as amended; an insurance company
                  as
                  defined in Section 2(13) of the Securities Act; an investment company
                  registered under the Investment Company Act of 1940 or a business
                  development company as defined in Section 2(a)(48) of that Act;
                  a small
                  business investment company licensed by the U.S. Small Business
                  Administration under Section 301(c) or (d) of the Small Business
                  Investment Act of 1958; a plan established and maintained by a
                  state, its
                  political subdivisions, or any agency or instrumentality of a state
                  or its
                  political subdivisions, for the benefit of its employees, and such
                  plan
                  has total assets in excess of $5,000,000; an employee benefit plan
                  within
                  the meaning of the Employee Retirement Income Security Act of 1974,
                  if the
                  investment decision is made by a plan fiduciary, as defined in
                  Section
                  3(21) of such Act, which is either a bank, savings and loan association,
                  insurance company, or registered investment adviser, or if the
                  employee
                  benefit plan has total assets in excess of $5,000,000 or, if a
                  self-directed plan, with investment decisions made solely by persons
                  that
                  are “accredited investors”;

              

      

       

      
        	 	
                o

              	
                a
                  private business development company as defined in Section 202(a)(22)
                  of
                  the Investment Advisers Act of
                  1940;

              

      

       

      
        	 	
                o

              	
                an
                  organization described in Section 501(c)(3) of the Internal Revenue
                  Code,
                  corporation, Massachusetts or similar business trust, or partnership,
                  not
                  formed for the specific purpose of acquiring the securities offered,
                  with
                  total assets in excess of
                  $5,000,000;

              

      

       

      
        	 	
                o

              	
                a
                  natural person whose individual net worth, or joint net worth with
                  the
                  undersigned’s spouse, at the time of this purchase exceeds
                  $1,000,000;

              

      

       

      
        	 	
                o

              	
                a
                  natural person who had an individual income in excess of $200,000
                  in each
                  of the two most recent years or joint income with the undersigned’s spouse
                  in excess of $300,000 in each of those years and has a reasonable
                  expectation of reaching the same income level in the current
                  year;

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	 	
                o

              	
                a
                  trust with total assets in excess of $5,000,000, not formed for
                  the
                  specific purpose of acquiring the securities offered, whose purchase
                  is
                  directed by a person who has such knowledge and experience in financial
                  and business matters that he is capable of evaluating the merits
                  and risks
                  of the prospective investment;

              

      

       

      
        	 	
                o

              	
                an
                  entity in which all of the equity holders are “accredited investors” by
                  virtue of their meeting one or more of the above standards;
                  or

              

      

       

      
        	 	
                o

              	
                an
                  individual who is a director or executive officer of Electric Aquagenics
                  Unlimited, Inc.

              

      

       

      IN
        WITNESS WHEREOF, the undersigned has executed this Certificate of Accredited
        Investor Status effective as of the __ day of ,
        2005.

      

        
          	 	 	 
	 	WATER
                  SCIENCE, LLC
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                  
Name:

	 	Title:THIS
      SECURITY HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933
      (THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED OR SOLD
      UNLESS REGISTERED AND QUALIFIED PURSUANT TO THE APPLICABLE PROVISIONS OF FEDERAL
      AND STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR
      QUALIFICATION APPLIES. THEREFORE, NO SALE OR TRANSFER OF THIS SECURITY SHALL
      BE
      MADE, NO ATTEMPTED SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL NOT
      BE
      REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH TRANSACTION
      HAS BEEN DULY REGISTERED UNDER THE ACT AND QUALIFIED OR APPROVED UNDER
      APPROPRIATE STATE SECURITIES LAWS, OR (B) THE ISSUER HAS FIRST
      RECEIVED

     

    AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH REGISTRATION,
      QUALIFICATION OR APPROVAL IS NOT REQUIRED.

    

    WARRANT

    

    For
      the
      Purchase of Shares of Common Stock of

    

    ELECTRIC
      AQUAGENICS UNLIMITED, INC.

    

    Void
      After 5 P.M. September 16, 2008

    

    No.
      11       Date: September
      16, 2005

    

    Warrant
      to Purchase Two Million Shares of Common Stock

    

    THIS
      IS TO CERTIFY,
      that,
      for value received, Water Science, LLC, a Florida limited liability company
      or
      registered assigns (the “Holder”), is entitled, subject to the terms and
      conditions hereinafter set forth, on or after the date hereof, and at any time
      prior to 5 P.M., Mountain Time (“PST”), on September 16, 2008 but not
      thereafter, to purchase such number of shares of Common Stock, par value $0.000l
      (“Common Stock” or the “Shares”), of Electric Aquagenics Unlimited, Inc. (the
“Company”), from the Company as set forth above and upon payment to the Company
      of an amount per Share of $2.76 (the “Purchase Price”), or conversion pursuant
      to Section 1.3 hereof, if and to the extent this Warrant is exercised, in whole
      or in part, during the period this Warrant remains in force, subject in all
      cases to adjustment as provided in Section 2 hereof, and to receive a
      certificate or certificates representing the Shares so purchased, upon
      presentation and surrender to the Company of this Warrant, with the form of
      Subscription Agreement attached hereto, including changes thereto reasonably
      requested by the Company, duly executed and accompanied by payment of the
      Purchase Price of each Share.

    

    SECTION
      1

     

    Terms
      of this Warrant

    

    1.1 Time
      of
      Exercise.
      This
      Warrant may be exercised at any time and from time to time after 9:00 A.M.
      Mountain Time, as the case may be, on the date hereof (the “Exercise
      Commencement Date”), but no later than 5:00 P.M., Mountain Time, September 16,
      2008 (the “Expiration Time”) at which time this Warrant shall become void and
      all rights hereunder shall cease.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    1.2 Manner
      of
      Exercise.

     

    1.2.1 The
      Holder may exercise this Warrant, in whole or in part, upon surrender of this
      Warrant, with the form of Subscription Agreement attached hereto duly executed,
      to the Company at its corporate office in Lindon, Utah, and upon payment to
      the
      Company of the full Purchase Price for each Share to be purchased in lawful
      money of the United States, or by certified or cashier’s check, or wired funds,
      and upon compliance with and subject to the conditions set forth
      herein.

     

    1.2.2 Upon
      receipt of this Warrant with the form of Subscription Agreement duly executed
      and accompanied by payment of the aggregate Purchase Price for the Shares for
      which this Warrant is then being exercised, the Company shall cause to be issued
      certificates for the total number of whole Shares for which this Warrant is
      being exercised in such denominations as are required for delivery to the
      Holder, and the Company shall thereupon deliver such certificates to the Holder
      or its nominee.

    

    1.2.3 In
      case
      the Holder shall exercise this Warrant with respect to less than all of the
      Shares that may be purchased under this Warrant, the Company shall execute
      a new
      Warrant for the balance of the Shares that may be purchased upon exercise of
      this Warrant and deliver such new Warrant to the Holder.

    

    1.2.4 The
      Company covenants and agrees that it will pay when due and payable any and
      all
      taxes which may be payable in respect of the issue of this Warrant, or the
      issue
      of any Shares upon the exercise of this Warrant. The Company shall not, however,
      be required to pay any tax which may be payable in respect of any transfer
      involved in the issuance or delivery of this Warrant or of the Shares in a
      name
      other than that of the Holder at the time of surrender, and until the payment
      of
      such tax the Company shall not be required to issue such Shares.

    

    1.3 Conversion
      Right.
      In lieu
      of exercising this Warrant as specified in Section 1.2, Holder may from time
      to
      time convert this Warrant, in whole or in part, into a number of Shares
      determined by dividing (a) the aggregate fair market value of the Shares or
      other securities otherwise issuable upon exercise of this Warrant minus the
      aggregate Purchase Price of such Shares by (b) the fair market value of one
      Share. The fair market value of the Shares shall be determined pursuant to
      Section 1.4.

    

    1.4 Fair
      Market Value.
      If the
      Shares are traded in a public market, the fair market value of the Shares shall
      be the closing price of the Shares (or the closing price of the Company’s stock
      into which the Shares are convertible) reported for the business day immediately
      before Holder delivers its Notice of Exercise to the Company. If the Shares
      are
      not traded in a public market, the Board of Directors of the Company shall
      determine fair market value in its reasonable good faith judgment. The foregoing
      notwithstanding, if Holder advises the Board of Directors in writing that Holder
      disagrees with such determination, then the Company and Holder shall promptly
      agree upon a reputable investment banking firm to undertake such valuation.
      If
      the valuation of such investment banking firm is greater than that determined
      by
      the Board of Directors, then all fees and expenses of such investment banking
      firm shall be paid by the Company. In all other circumstances, such fees and
      expenses shall be paid by Holder.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    1.5 Exchange
      of Warrant.
      This
      Warrant may be divided into, combined with or exchanged for another Warrant
      or
      Warrants of like tenor to purchase a like aggregate number of Shares. If the
      Holder desires to divide, combine or exchange this Warrant, he shall make such
      request in writing delivered to the Company at its corporate office and shall
      surrender this Warrant and any other Warrants to be so divided, combined or
      exchanged. The Company shall execute and deliver to the person entitled thereto
      a Warrant or Warrants, as the case may be, as so requested. The Company shall
      not be required to effect any division, combination or exchange which will
      result in the issuance of a Warrant entitling the Holder to purchase upon
      exercise a fraction of a Share. The Company may require the Holder to pay a
      sum
      sufficient to cover any tax or governmental charge that may be imposed in
      connection with any division, combination or exchange of Warrants.

    

    1.6 Holder
      as
      Owner.
      Prior
      to surrender of this Warrant in accordance with Section for registration of
      assignment, the Company may deem and treat the Holder as the absolute owner
      of
      this Warrant (notwithstanding any notation of ownership or other writing hereon)
      for the purpose of any exercise hereof and for all other purposes, and the
      Company shall not be affected by any notice to the contrary.

    

    1.7 Method
      of
      Assignment.
      Any
      assignment or transfer of any portion or all of this Warrant shall be made
      by
      surrender of this Warrant to the Company at its principal office with the form
      of assignment attached hereto duly executed and accompanied by funds sufficient
      to pay any transfer tax. In such event, the Company shall, without charge,
      execute and deliver a new Warrant in the name of the assignee named in such
      instrument of assignment and this Warrant shall promptly be
      canceled.

    

    1.8 Rights
      of
      Holder.
      Nothing
      contained in this Warrant shall be construed as conferring upon the Holder
      the
      right to vote, consent or receive notice as a shareholder in respect of any
      meetings of shareholders for the election of directors or any other matter,
      or
      as having any rights whatsoever as a shareholder of the Company.

    

    1.9 Lost
      Certificates.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company shall, on such
      reasonable terms as to indemnity or otherwise as it may impose (which shall,
      in
      the case of a mutilated Warrant, include the surrender thereof), issue a new
      Warrant of like denomination and tenor as, and in substitution for, this
      Warrant, which shall thereupon become void. Any such new Warrant shall
      constitute an additional contractual obligation of the Company, whether or
      not
      the Warrant so lost, stolen, destroyed or mutilated shall be at any time
      enforceable by anyone.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    1.9.1 At
      all
      times the Company shall reserve and keep available for the exercise of this
      Warrant such number of authorized shares of Common Stock as are sufficient
      to
      permit the exercise in full of this Warrant.

    

    1.9.2 The
      Company covenants that all Shares when issued upon the exercise of this Warrant
      will be validly issued, fully paid, nonassessable and free of preemptive
      rights.

     

    

    SECTION
      2

     

    Adjustment
      of Purchase Price and Number of Shares Purchasable upon
      Exercise

    

    2.1 Stock
      Splits.
      If the
      Company at any time or from time to time after the issuance date of this Warrant
      effects a subdivision of the outstanding Common Stock, the Purchase Price then
      in effect immediately before that subdivision shall be proportionately
      decreased, and conversely, if the Company at any time or from time to time
      after
      the issuance date of this Warrant combines the outstanding shares of Common
      Stock, the Purchase Price then in effect immediately before the combination
      shall be proportionately increased. Any adjustment under this subsection 2.1
      shall become effective at the close of business on the date the subdivision
      or
      combination becomes effective.

    

    2.2 Dividends
      and Distributions.
      In the
      event the Company at any time, or from time to time after the issuance date
      of
      this Warrant makes, or fixes a record date for the determination of holders
      of
      Common Stock entitled to receive, a dividend or other distribution payable
      in
      additional shares of Common Stock, then and in each such event the Purchase
      Price then in effect shall be decreased as of the time of such issuance or,
      in
      the event such a record date is fixed, as of the close of business on such
      record date, by multiplying the Purchase Price then in effect by a fraction
      (i)
      the numerator of which is the total number of shares of Common Stock issued
      and
      outstanding immediately prior to the time of such issuance or the close of
      business on such record date, and (ii) the denominator of which shall be the
      total number of shares of Common Stock issued and outstanding immediately prior
      to the time of such issuance or the close of business on such record date plus
      the number of shares of Common Stock issuable in payment of such dividend or
      distribution; provided, however, that if such record date is fixed and such
      dividend is not fully paid or if such distribution is not fully made on the
      date
      fixed therefor, the Purchase Price shall be recomputed accordingly as of the
      close of business on such record date and thereafter the Purchase Price shall
      be
      adjusted pursuant to this subsection 2.2 as of the time of actual payment of
      such dividends or distributions.

    

    2.3 Recapitalization
      or Reclassification.
      If the
      Shares issuable upon the exercise of the Warrant are changed into the same
      or a
      different number of shares of any class or classes of stock, whether by
      recapitalization, reclassification or otherwise (other than a subdivision or
      combination of shares or stock dividend or a reorganization, merger,
      consolidation or sale of assets, provided for elsewhere in this Section 2),
      then, and in any such event, the Holder shall thereafter be entitled to receive
      upon exercise of this Warrant such number and kind of stock or other securities
      or property of the Company to which a holder of Shares deliverable upon exercise
      of this Warrant would have been entitled on such reclassification or other
      change, subject to further adjustment as provided herein.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    2.4 Subsequent
      Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any
      time while this Warrant is outstanding, shall offer, sell, grant any option
      to
      purchase or offer, sell or grant any right to re-price its securities, or
      otherwise dispose of or issue (or announce any offer, sale, grant or any option
      to purchase or other disposition) any Common Stock or any securities convertible
      into or exchangeable for shares of Common Stock, or the issuance of any
      warrants, options, subscription or purchase rights with respect to such
      convertible or exchangeable securities (“Common Stock Equivalents”) entitling
      any Person to acquire shares of Common Stock, at an effective price per share
      less than the then Purchase Price (such lower price, the “Base Purchase Price”
      and such issuances collectively, a “Dilutive Issuance”), as adjusted hereunder
      (if the holder of the Common Stock or Common Stock Equivalents so issued shall
      at any time, whether by operation of purchase price adjustments, reset
      provisions, floating conversion, exercise or exchange prices or otherwise,
      or
      due to warrants, options or rights per share which is issued in connection
      with
      such issuance, be entitled to receive shares of Common Stock at an effective
      price per share which is less than the Purchase Price, such issuance shall
      be
      deemed to have occurred for less than the Purchase Price on such date of the
      Dilutive Issuance), then the Purchase Price shall be reduced to equal the Base
      Purchase Price. The Company shall notify the Holder in writing, no later than
      the Business Day following the issuance of any Common Stock or Common Stock
      Equivalents subject to this section, indicating therein the applicable issuance
      price, or of applicable reset price, exchange price, conversion price and other
      pricing terms (such notice the “Dilutive Issuance Notice”). For purposes of
      clarification, whether or not the Company provides a Dilutive Issuance Notice
      pursuant to this Section 2.4, upon the occurrence of any Dilutive Issuance
      the
      Purchase Price shall be reduced to equal the Base Purchase Price. 

     

    2.5 Subsequent
      Rights Offerings. If the Company, at any time while the Warrant is outstanding,
      shall issue rights, options or warrants to all holders of Common Stock (and
      not
      to the Holder) entitling them to subscribe for or purchase shares of Common
      Stock at a price per share less than the Purchase Price at the record date
      mentioned below, then the Purchase Price shall be multiplied by a fraction,
      of
      which the denominator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the number
      of additional shares of Common Stock offered for subscription or purchase,
      and
      of which the numerator shall be the number of shares of the Common Stock
      outstanding on the date of issuance of such rights or warrants plus the number
      of shares which the aggregate offering price of the total number of shares
      so
      offered (assuming receipt by the Company in full of all consideration payable
      upon exercise of such rights, options or warrants) would purchase at such lesser
      price. Such adjustment shall be made whenever such rights or warrants are
      issued, and shall become effective immediately after the record date for the
      determination of stockholders entitled to receive such rights, options or
      warrant.

     

    2.6 No
      adjustment in the Purchase Price shall be required unless such adjustment would
      require an increase or decrease of at least 1% in such price; provided, however,
      that any adjustments which by reason of this Section 2.6 are not required to
      be
      made shall be carried forward and taken into account in any subsequent
      adjustment; and provided, further, that any adjustment required in order to
      preserve the tax-free nature of a distribution to the holders of shares of
      Common Stock shall be made when so required.  All
      calculations under this Section 2 shall be made to the nearest cent (with $.005
      being rounded upward). Anything in this Section 2 to the contrary
      notwithstanding, the Company shall be entitled, to the extent permitted by
      law,
      to make such reductions in the Purchase Price, in addition to those required
      by
      this Section 2, as it in its discretion shall determine to be advisable in
      order
      that any stock dividends, subdivision or combination of shares, distribution
      of
      capital stock or rights or warrants to purchase stock or securities,
      distribution of evidences of indebtedness or assets or any other transaction
      which could be treated as any of the foregoing transactions pursuant to Section
      305 of the Internal Revenue Code of 1986, as amended (and any successor
      provision), hereafter made by the Company to its shareholders shall not be
      taxable to such shareholders.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    SECTION
      3

     

    Status
      Under the Securities Act of 1933

    

    This
      Warrant and the Shares issuable upon exercise of this Warrant have not been
      registered under the Securities Act of 1933, as amended (“the Act”). Upon
      exercise, in whole or in part, of this Warrant, the certificates representing
      the Shares shall bear the legend first above written.

    

    SECTION
      4

     

    Other
      Matters

    

    4.1 Binding
      Effect.
      All the
      covenants and provisions of this Warrant by or for the benefit of the Company
      shall bind and inure to the benefit of its successors and assigns
      hereunder.

    

    4.2 Notices.
      Notices
      or demands pursuant to this Warrant to be given or made by the Holder to or
      on
      the Company shall be sufficiently given or made if sent by certified or
      registered mail, return receipt requested, postage prepaid, or facsimile and
      addressed, until another address is designated in writing by the Company, as
      follows:

    

    Electric
      Aquagenics Unlimited, Inc.

    1464
      W.
      40 South, Suite 200

    Lindon,
      Utah 84042

    Telephone
      No.: (801) 443-1031

    Attention: Gaylord
      Karren, President

    

    Notices
      to the Holder provided for in this Warrant shall be deemed given or made by
      the
      Company if sent by certified or registered mail, return receipt requested,
      postage prepaid, and addressed to the Holder at his last known address as it
      shall appear on the books of the Company.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    4.3 Governing
      Law.
      The
      validity, interpretation and performance of this Warrant shall be governed
      by
      the laws of the State of Delaware. 

     

    4.4 Parties
      Bound and Benefited.
      Nothing
      in this Warrant expressed and nothing that may be implied from any of the
      provisions hereof is intended, or shall be construed, to confer upon, or give
      to, any person or corporation other than the Company and the Holder any right,
      remedy or claim under any promise or agreement hereof, and all covenants,
      conditions, stipulations, promises and agreements contained in this Warrant
      shall be for the sole and exclusive benefit of the Company and its successors
      and of the Holder, its successors and permitted assigns.

     

    4.5 Headings.
      The
      Section headings herein are for convenience only and are not part of this
      Warrant and shall not affect the interpretation thereof.

     

    (Remainder
      Of Page Intentionally Left Blank)

    
       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    IN,
      WITNESS WHEREOF,
      this
      Warrant has been duly executed by the Company as of September 16
      ,2005.

     

    
      	 	 	 
	 	ELECTRIC
              AQUAGENICS UNLIMITED, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                
Gaylord
                Karren, President

            
	 	 

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
      OF WARRANT

     

    FOR
      VALUE RECEIVED,
      ___________________________ hereby sells, assigns and transfers unto
      ________________________ the within Warrant and the rights represented thereby,
      and does hereby irrevocably constitute and appoint _______________________
      Attorney, to transfer said Warrant on the books of the Company, with full power
      of substitution.

     

    Dated:
      _____________________________

    

    Signed:
      ____________________________

    

    Signature
      guaranteed: 

    __________________________________

    
      
         

      

      
        9

        
          

        

      

      
         

    

    SUBSCRIPTION
      AGREEMENT

    FOR
      THE EXERCISE OF WARRANTS

    

    The
      undersigned hereby irrevocably subscribes for the purchase of _____________
      Shares pursuant to and in accordance with the terms and conditions of this
      Warrant, which Shares should be delivered to the undersigned at the address
      stated below. If said number of Shares are not all of the Shares purchasable
      hereunder, a new Warrant of like tenor for the balance of the remaining Shares
      purchasable hereunder should be delivered to the undersigned at the address
      stated below.

    

    The
      undersigned elects to pay the aggregate Purchase Price for such Shares in the
      following manner:

    

    [
      ]
 by
      the
      enclosed cash or check made payable to the Company in the amount of 
      $  ;

    

    [
      ]
 by
      wire
      transfer of United States funds to the account of the Company in the amount
      of
      $__________, which transfer has been made before or simultaneously with the
      delivery of this Notice pursuant to the instructions of the Company;
      or

    

    [
      ] by
      conversion of the Warrant into Shares in the manner specified in Section 1.3
      of
      the Warrant.

    

    The
      undersigned agrees that: (1) the undersigned will not offer, sell, transfer
      or
      otherwise dispose of any Shares unless either (a) a registration statement,
      or
      post-effective amendment thereto, covering the Shares has been filed with the
      Securities and Exchange Commission pursuant to the Securities Act of 1933,
      as
      amended (the “Act”), such sale, transfer or other disposition is accompanied by
      a prospectus meeting the requirements of Section 10 of the Act forming a part
      of
      such registration statement, or post-effective amendment thereto, which is
      in
      effect under the Act covering the Shares to be so sold, transferred or otherwise
      disposed of, and all applicable state securities laws have been complied with,
      or (b) counsel reasonably satisfactory to Electric Aquagenics Unlimited, Inc.
      has rendered an opinion in writing and addressed to Electric Aquagenics
      Unlimited, Inc. that such proposed offer, sale, transfer or other disposition
      of
      the Shares is exempt from the provisions of Section 5 of the Act in view of
      the
      circumstances of such proposed offer, sale, transfer or other disposition;
      (2)
      Electric Aquagenics Unlimited, Inc. may notify the transfer agent for the Shares
      that the certificates for the Shares acquired by the undersigned are not to
      be
      transferred unless the transfer agent receives advice from Electric Aquagenics
      Unlimited, Inc. that one or both of the conditions referred to in (1)(a) and
      (1)(b) above have been satisfied; and (3) Electric Aquagenics Unlimited, Inc.
      may affix the legend set forth in Section 3.1 of this Warrant to the
      certificates for the Shares hereby subscribed for, if such legend is
      applicable.

    

    
      	Dated:
              ____________________________________________	Signed:
              _________________________________
	 	 
	Signature guaranteed:
              ________________________________	Address:
              ________________________________

    

         

    
      
         

      

        10

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