Document:

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                                                                   Exhibit 10.22

                               SECURITY AGREEMENT

                                                                January 30, 2003
Millennium Cell Inc.
1 Industrial Way West
Eatontown, New Jersey  07724
(Individually and collectively "Debtor")

Wachovia Bank, National Association
190 River Road
Summit, New Jersey  07901
(Hereinafter referred to as "Bank")

For value received and to secure payment and performance of any and all
obligations of Debtor (also referred to herein as "Borrower") to Bank under the
one or more Applications and Agreements for Irrevocable Standby Letter of Credit
pursuant to which Debtor has requested Bank issue one or more letters of credit
in the aggregate face amount of $8,500,000 for the benefit of Pine Ridge
Financial, Inc. ("Pine Ridge"), however created, arising or evidenced, whether
direct or indirect, absolute or contingent, now existing or hereafter arising or
acquired, and all costs and expenses incurred by Bank to obtain, preserve,
perfect and enforce the security interest granted herein and to maintain,
preserve and collect the property subject to the security interest
(collectively, "Obligations"), Debtor hereby grants to Bank a continuing
security interest in and lien upon, and for security purposes assigns and
transfers to Bank until all of the Obligations are repaid in full, the following
described property, whether now owned or hereafter acquired, and any additions,
replacements, accessions, or substitutions thereof and all cash and non-cash
proceeds and products thereof (collectively, "Collateral"):

Deposit account number XXX of Debtor at Bank and all monies at any time on
deposit therein ("Assigned Deposits").

Debtor hereby represents and agrees that:

1. OWNERSHIP. Debtor owns the Collateral. The Collateral is free and clear of
all liens, security interests, and claims except those previously reported in
writing to and approved by Bank, and Debtor will keep the Collateral free and
clear from all liens, security interests and claims, other than those granted to
or approved by Bank. Until all of the Obligations are repaid in full and subject
to Section 7 hereof, Bank shall have the entire right and interest in and to the
Assigned Deposits. By executing this Security Agreement, Debtor has divested
itself of all control over the Assigned Deposits and Bank is entitled to and
does possess sole dominion and control over the Assigned Deposits and is
entitled to receive the benefits accruing with respect thereto as additional
security for the Obligations. Debtor surrenders all authority or right to
withdraw, collect, receive the benefits of, or otherwise assign or encumber the
Assigned Deposits, and authorizes Bank (and each affiliate and branch office of
Bank or such affiliate) to treat Bank as the sole and exclusive owner of the
Assigned Deposits held subject to the terms hereof for the benefit of Debtor.
Upon the maturity of the Assigned Deposits, other than Assigned Deposits at Bank
that automatically roll over at maturity, Bank shall reinvest the Assigned
Deposits in an investment of Bank's choice. Bank shall have no liability to
Debtor for any loss incurred in connection with or arising out of any such
reinvestment except for loss resulting from Bank's gross negligence or willful
misconduct. The assignment evidenced by this Security Agreement is a continuing
one and, unless released to Debtor pursuant to Section 7 hereof, is irrevocable
so long as any of the Obligations are outstanding or the Bank shall have any
obligations under the Loan Documents and shall terminate only upon payment or
other satisfaction in full of all Obligations or Bank's acknowledgment in
writing that this Security Agreement has been terminated. Upon termination of
this Security Agreement, and to the extent the Assigned Deposits have not been
applied in satisfaction of the Obligations or released to Debtor pursuant to
Section 7 hereof, Bank shall reassign the Assigned Deposits to Debtor and return
any passbooks, certificates, and other documents in Bank's possession at
Debtor's request. All securities and security entitlements

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pledged as Collateral are fully paid and non-assessable. All income, dividends,
earnings and profits with respect to the Collateral shall be reported for state
and federal income tax purposes as attributable to the Debtor and not Bank and
Third Party (as defined herein), and Bank or any other person authorized to
report income distributions, is authorized to issue IRS Forms 1099 indicating
Debtor as the recipient of such income, earnings and profits.

2. NAME AND OFFICES; JURISDICTION OF ORGANIZATION. The name and address of
Debtor appearing at the beginning of this Agreement are Debtor's exact legal
name and the address of its chief executive office. There has been no change in
the name of Debtor, or the name under which Debtor conducts business, within the
five years or such lesser time as Debtor shall have been in business preceding
the date hereof except as disclosed in filings with the Securities and Exchange
Commission and as previously reported in writing to Bank. Debtor has not moved
its chief executive office within the five years preceding the date hereof
except as previously reported in writing to Bank. Debtor is organized under the
laws of the State of Delaware and has not changed the jurisdiction of its
organization within the five years or such lesser time as Debtor shall have been
in business preceding the date hereof except as previously reported in writing
to Bank.

3. TITLE/TAXES. Debtor has good title to Collateral and will warrant and defend
same against all claims. Debtor will not transfer, sell, or otherwise dispose of
the Collateral (except as permitted herein). Debtor agrees to pay promptly all
taxes and assessments upon or for the use of Collateral and on this Security
Agreement. At its option, Bank may discharge taxes, liens, security interests or
other encumbrances at any time levied or placed on Collateral. Debtor agrees to
reimburse Bank, on demand, for any such payment made by Bank. Any amounts so
paid shall be added to the Obligations.

4. WAIVERS. Debtor agrees not to assert against Bank as a defense (legal or
equitable), as a set-off, as a counterclaim, or otherwise, any claims Debtor may
have against any seller or lessor that provided personal property or services
relating to any part of the Collateral. Debtor waives any and all rights to any
bond or security which might be required by applicable law prior to the exercise
of any of Bank's remedies against any Collateral. All rights of Bank and
security interests hereunder, and all obligations of Debtor hereunder, shall be
absolute and unconditional, not discharged or impaired irrespective of (and
regardless of whether Debtor receives any notice of): (i) any lack of validity
or enforceability of any Loan Document; (ii) any change in the time, manner or
place of payment or performance, or in any term, of all or any of the
Obligations or the Loan Documents or any other amendment or waiver of or any
consent to any departure from any Loan Document; (iii) any exchange, release or
non-perfection of any collateral, or any release of or modifications of the
obligations of any guarantor or other obligor; (iv) any amendment or waiver of
or consent to departure from any Loan Document or other agreement. To the extent
permitted by law, Debtor hereby waives any rights under any valuation, stay,
appraisement, extension or redemption laws now existing or which may hereafter
exist and which, but for this provision, might be applicable to any sale or
disposition of the Collateral by Bank; and any other circumstance which might
otherwise constitute a defense available to, or a discharge of any party with
respect to the Obligations.

5. NOTIFICATIONS; LOCATION OF COLLATERAL. Debtor will notify Bank in writing at
least 30 days prior to any change in: (i) Debtor's chief place of business
and/or residence; (ii) Debtor's name or identity; (iii) Debtor's
corporate/organizational structure; or (iv) the jurisdiction in which Debtor is
organized. In addition, Debtor shall promptly notify Bank of any claims or
alleged claims of any other person or entity to the Collateral or the
institution of any litigation, arbitration, governmental investigation or
administrative proceedings against or affecting the Collateral. Debtor will keep
Collateral at the location(s) previously provided to Bank until such time as
Bank provides written advance consent to a change of location. Debtor will bear
the cost of preparing and filing any documents necessary to protect Bank's
liens.

6. FINANCING STATEMENTS, POWER OF ATTORNEY. No financing statement (other than
any filed or approved by Bank) covering any Collateral is on file in any public
filing office. On request of Bank,

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Debtor will execute one or more financing statements in form satisfactory to
Bank and will pay all costs and expenses of filing the same or of filing this
Security Agreement in all public filing offices, where filing is deemed by Bank
to be desirable. Bank is authorized to file financing statements relating to
Collateral without Debtor's signature where authorized by law. Debtor hereby
constitutes and appoints Bank the true and lawful attorney of Debtor with full
power of substitution to take any and all appropriate action and to execute any
and all documents or instruments that may be necessary or desirable to
accomplish the purpose and carry out the terms of this Security Agreement,
including, without limitation, to ask, demand, collect, receive, receipt for,
sue for, compound and give acquittance for any and all amounts which may be or
become due and payable under the Assigned Deposits; to execute any and all
withdrawal requests, receipts or other orders for the payment of money drawn on
the Assigned Deposits and to endorse the name of Bank on all instruments given
in payment or in partial payment therefor; and to complete, execute, and deliver
Control Agreement(s) by Bank, Debtor and Third Party(ies) required in connection
herewith (individually and collectively the "Control Agreement"), instructions
to Third Party(ies) regarding, among other things, control and disposition of
any Collateral, and endorsements desirable for transfer or delivery of any
Collateral, registration of any Collateral under applicable laws, retitling any
Collateral, receipt, endorsement and/or collection of all checks and other
orders for payment of money payable to Debtor with respect to Collateral. The
foregoing power of attorney is coupled with an interest and shall be irrevocable
until all of the Obligations have been paid in full. Neither Bank nor anyone
acting on its behalf shall be liable for acts, omissions, errors in judgment, or
mistakes in fact in such capacity as attorney-in-fact. Debtor ratifies all acts
of Bank as attorney-in-fact. Debtor agrees to take such other actions, at
Debtor's expense, as might be requested for the perfection, continuation and
assignment, in whole or in part, of the security interests granted herein and to
assure Bank's intended priority position. If certificates, passbooks, or other
documentation or evidence is/are issued or outstanding as to any of the
Collateral, Debtor will cause the security interests of Bank to be properly
protected, including perfection by notation thereon or delivery thereof to Bank.
Upon Bank's request, Debtor will, at its own expense: (i) do all things
determined by Bank to be desirable to register such Collateral or qualify for an
exemption from registration, under the provisions of all applicable securities
laws, and (ii) otherwise do or cause to be done all other acts and things as may
be necessary to make the sale of the Collateral valid, binding and in compliance
with applicable law.

7. VALUE REQUIREMENT. The amount of the Assigned Deposits shall at all times be
in an amount not less than the aggregate amount available for drawing under all
outstanding letters of credit issued by Bank for the account of Debtor and for
the benefit of Pine Ridge (the "Minimum Deposit Value"). If at any time the
Minimum Deposit Value falls below this amount, Debtor shall within 3 business
days, deliver additional cash Collateral to Bank in an amount sufficient to
restore the Minimum Deposit Value to the required amount. As the outstanding
face amount of any such letters of credit is reduced as provided therein and
provided no Default has occurred and is then continuing, upon written request of
Debtor contained in a Certificate of Reduction, Bank shall permit amounts on
deposit in the Assigned Deposits to be withdrawn by Debtor provided that after
giving effect to such withdrawal the Minimum Deposit Value is maintained. In
addition, on a quarterly basis and so long as no Default has occurred and is
then continuing, the Bank shall permit Debtor to withdraw interest earned on the
Assigned Deposits provided that, after giving effect to such interest
withdrawal, the Minimum Deposit Value is maintained.

8. INSTRUMENTS, CHATTEL PAPER, DOCUMENTS. Any Collateral that is instruments,
chattel paper and negotiable documents will be properly assigned to, the
originals of any such Collateral in tangible form deposited with and held by
Bank, unless Bank shall hereafter otherwise direct or consent in writing. Bank
may, without notice, before or after maturity of the Obligations, exercise any
or all rights of collection, conversion, or exchange and other similar rights,
privileges and options pertaining to Collateral, but shall have no duty to do
so.

9. WITHDRAWAL OF ASSIGNED DEPOSITS. Debtor shall not be permitted to withdraw
funds from or exercise any authority of any kind with respect to the Assigned
Deposits except as provided in Section 7 hereof. Bank shall have the exclusive
authority to withdraw, or direct the withdrawal of, funds from the Assigned
Deposits. Upon any payment by Bank under any letter of credit, Bank is hereby
authorized to reimburse such payment by withdrawal of the necessary amount from
the Assigned

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Deposits. Notwithstanding the foregoing, Debtor's obligation to reimburse Bank
for any payment made by Bank under any letter of credit shall be absolute and
unconditional whether or not there are sufficient funds available in the
Assigned Deposits to reimburse Bank for any such payment and whether or not Bank
is able, for any reason, to be so reimbursed. So long as this Agreement remains
in effect, the Assigned Deposits will be titled as directed by Bank.

10. COLLATERAL DUTIES. Bank shall have no custodial or ministerial duties to
perform with respect to Collateral pledged except as set forth herein; and by
way of explanation and not by way of limitation, Bank shall incur no liability
for any of the following: (i) loss or depreciation of Collateral (unless caused
by its willful misconduct or gross negligence), (ii) failure to present any
paper for payment or protest, to protest or give notice of nonpayment, or any
other notice with respect to any paper or Collateral, (iii) failure to
ascertain, notify Debtor of, or take any action in connection with any
conversion, call, redemption, retirement or any other event relating to any of
the Collateral, or failure to notify any party hereto that Collateral should be
presented or surrendered for any such reason. Debtor acknowledges that Bank is
not an investment advisor or insurer with respect to the Collateral; and Bank
has no duty to advise Debtor of any actual or anticipated changes in the value
of the Collateral. Bank's sole duty with respect to the custody, safekeeping and
physical preservation of any certificate, passbook, or other documentation
evidencing the Assigned Deposits in its possession shall be to deal with it in
the same manner as it deals with similar property for its own account. Neither
Bank, nor any of its employees or agents shall be liable for failure to demand,
collect, or realize upon any of the Assigned Deposits or for any delay in doing
so.

11. TRANSFER OF COLLATERAL. Bank may assign its rights in Collateral or any part
thereof to any assignee who shall thereupon become vested with all the powers
and rights herein given to Bank with respect to the property so transferred and
delivered, and Bank shall thereafter be forever relieved and fully discharged
from any liability with respect to such property so transferred, but with
respect to any property not so transferred, Bank shall retain all rights and
powers hereby given.

12. INSPECTION, BOOKS AND RECORDS. Debtor will at all times keep accurate and
complete records covering each item of Collateral, including the proceeds
therefrom. Bank, or any of its agents, shall have the right, at intervals to be
determined by Bank and without hindrance or delay, during regular business hours
and after reasonable notice at Debtor's expense, to inspect, audit, and examine
the Collateral and to make copies of and extracts from the books, records,
journals, orders, receipts, correspondence and other data relating to
Collateral, Debtor's business or any other transaction between the parties
hereto. Debtor will at its expense furnish Bank copies thereof upon request.

13. ATTORNEYS' FEES AND OTHER COSTS OF COLLECTION. Debtor shall pay all of
Bank's reasonable expenses incurred in enforcing this Security Agreement and in
preserving and liquidating Collateral, including but not limited to, reasonable
arbitration, paralegals', attorneys' and experts' fees and expenses, whether
incurred with or without the commencement of a suit, trial, arbitration, or
administrative proceeding, or in any appellate or bankruptcy proceeding.

14. DEFAULT. If any of the following occurs, a default ("Default") under this
Security Agreement shall exist: LOAN DOCUMENT DEFAULT. A default or event of
default (or similarly denominated term) under any Loan Document. COLLATERAL
ENCUMBRANCE. Any encumbrance of any Collateral not specifically permitted herein
without prior written consent of Bank. LEVY, SEIZURE OR ATTACHMENT. The making
of any levy, seizure, or attachment on or of Collateral which is not removed
within 10 days. UNAUTHORIZED COLLECTION OF COLLATERAL. Any attempt to collect,
cash in or otherwise recover deposits that are Collateral. UNAUTHORIZED
TERMINATION. Any attempt to terminate, revoke, rescind, modify, or violate the
terms of this Security Agreement or any Control Agreement without the prior
written consent of Bank.

15. REMEDIES ON DEFAULT (INCLUDING POWER OF SALE). If a Default occurs, all of
the Obligations shall be immediately due and payable, without notice, other than
Obligations under any swap agreements (as defined in 11 U.S.C. Section 101) with
Bank, which shall be governed by the default and

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termination provisions of said swap agreements, and Bank shall have all the
rights and remedies of a secured party under the Uniform Commercial Code.
Without limitation thereto, Bank shall have the following rights and remedies:
(i) to take immediate possession of Collateral, without notice or resort to
legal process, (ii) to exercise its right of set-off or bank lien as to any
monies of Debtor deposited in accounts of any nature maintained by Debtor with
Bank or affiliates of Bank, without advance notice, regardless of whether such
accounts are general or special; (iii) to dispose of Collateral in any county or
place to be selected by Bank, at either private or public sale (at which public
sale Bank may be the purchaser) (iv) to apply toward and set-off against and
apply to the then unpaid balance of the Obligations the Assigned Deposits
(accelerated to maturity if necessary), even if effecting such set-off results
in a loss or reduction of interest or the imposition of a penalty applicable to
the early withdrawal of time deposits; (v) to receive any interest or payments
in respect of the Assigned Deposits and apply such amounts and the Assigned
Deposits to the Obligations in such manner as Bank, in its sole discretion, may
determine. In addition to the foregoing, Bank shall be authorized to: transfer
into Bank's name or the name of its nominee, all or any part of the Collateral;
receive all interest, dividends, and other proceeds of the Collateral; notify
any person obligated on any Collateral of the security interest of Bank therein
and require such person to make payment directly to Bank; demand, sue for,
collect or receive the Collateral and any proceeds thereof, and/or make any
settlement or compromise as Bank deems desirable with respect to any Collateral;
and exercise any voting, conversion, registration, purchase or other rights of
an owner, holder or entitlement holder of the Collateral. Debtor agrees that
Bank may exercise its rights under this Security Agreement without regard for
the actual or potential tax consequences to Debtor under federal or state law
and without regard to any instructions or directives given Bank by Debtor.

Any notice of sale, disposition or other action by Bank required by law and sent
to Debtor at Debtor's address shown above, or at such other address of Debtor as
may from time to time be shown on the records of Bank, at least 5 days prior to
such action, shall constitute reasonable notice to Debtor. Notice shall be
deemed given or sent when mailed postage prepaid to Debtor's address as provided
herein. Bank shall be entitled to apply the proceeds of any sale or other
disposition of the Collateral, and the payments received by Bank with respect to
any of the Collateral, to Obligations in such order and manner as Bank may
determine. Collateral that is subject to rapid declines in value and is
customarily sold in recognized markets may be disposed of by Bank in a
recognized market for such collateral without providing notice of sale. Debtor
waives any and all requirements that the Bank sell or dispose of all or any part
of the Collateral at any particular time, regardless of whether Debtor has
requested such sale or disposition.

16. REMEDIES ARE CUMULATIVE. No failure on the part of Bank to exercise, and no
delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise by Bank or any right,
power or remedy hereunder preclude any other or further exercise thereof or the
exercise of any right, power or remedy. The remedies herein provided are
cumulative and are not exclusive of any remedies provided by law, in equity, or
in other Loan Documents.

17. MISCELLANEOUS. (i) AMENDMENTS AND WAIVERS. No waiver, amendment or
modification of any provision of this Security Agreement shall be valid unless
in writing and signed by Debtor and an officer of Bank. No waiver by Bank of any
Default shall operate as a waiver of any other Default or of the same Default on
a future occasion. (ii) ASSIGNMENT. All rights of Bank hereunder are freely
assignable, in whole or in part, and shall inure to the benefit of and be
enforceable by Bank, its successors, assigns and affiliates. Debtor shall not
assign its rights and interest hereunder without the prior written consent of
Bank, and any attempt by Debtor to assign without Bank's prior written consent
is null and void. Any assignment shall not release Debtor from the Obligations.
This Security Agreement shall be binding upon Debtor, and the heirs, personal
representatives, successors, and assigns of Debtor. (iii) APPLICABLE LAW;
CONFLICT BETWEEN DOCUMENTS. This Security Agreement shall be governed by and
construed under the law of the jurisdiction named in the address of the Bank
first shown above (the "Jurisdiction") without regard to that Jurisdiction's
conflict of laws principles, except to the extent that the UCC requires the
application of the law of a different jurisdiction. If any terms of this
Security Agreement conflict with the terms of any commitment letter or loan
proposal, the terms of this Security Agreement shall control. (iv) JURISDICTION.
Debtor irrevocably agrees to non-exclusive personal jurisdiction in the
Jurisdiction in which

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the office of Bank as stated above is located. (v) SEVERABILITY. If any
provision of this Security Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective but only to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Security Agreement. (vi) NOTICES.
Any notices to Debtor shall be sufficiently given, if in writing and mailed or
delivered to the address of Debtor shown above or such other address as provided
hereunder; and to Bank, if in writing and mailed or delivered to Bank's office
address shown above or such other address as Bank may specify in writing from
time to time. In the event that Debtor changes Debtor's mailing address at any
time prior to the date the Obligations are paid in full, Debtor agrees to
promptly give written notice of said change of address by registered or
certified mail, return receipt requested, all charges prepaid. (vii) CAPTIONS.
The captions contained herein are inserted for convenience only and shall not
affect the meaning or interpretation of this Security Agreement or any provision
hereof. The use of the plural shall also mean the singular, and vice versa.
(viii) JOINT AND SEVERAL LIABILITY. If more than one party has signed this
Security Agreement, such parties are jointly and severally obligated hereunder.
(ix) BINDING CONTRACT. Debtor by execution and Bank by acceptance of this
Security Agreement, agree that each party is bound by all terms and provisions
of this Security Agreement.

18. DEFINITIONS. LOAN DOCUMENTS. The term "Loan Documents" refers to all
documents, including this Agreement, whether now or hereafter existing, executed
in connection with or related to the Obligations, and may include, without
limitation and whether executed by Debtor or others, commitment letters that
survive closing, loan agreements, promissory notes, guaranty agreements, deposit
or other similar agreements, other security agreements, applications and
agreements for letters of credit, security instruments, financing statements,
mortgage instruments, any renewals or modifications, whenever any of the
foregoing are executed, but does not include swap agreements (as defined in 11
U.S.C. Section 101). THIRD PARTY. The term "Third Party" means each and every
Broker, Collateral Agent or Securities Intermediary maintaining a securities
account, and acting in such capacity, for Debtor with respect to some or all of
the Collateral. UCC. "UCC" means the Uniform Commercial Code as presently and
hereafter enacted in the Jurisdiction. TERMS DEFINED IN THE UCC. Any term used
in this Agreement and in any financing statement filed in connection herewith
which is defined in the UCC and not otherwise defined in this Agreement or any
other Loan Document has the meaning given to the term in the UCC.

IN WITNESS WHEREOF, Debtor, on the day and year first written above, has caused
this Security Agreement to be executed under seal.

                               Millennium Cell Inc.
                               Taxpayer Identification Number: XXXXXXXXXXXXX

                               By: /s/ Norman R. Harpster, Jr.(SEAL)
                                   --------------------------------------------
                                   Name:  Norman R. Harpster, Jr.
                                   Title: VP, International Business Management
                                          CFO, Corporate Secretary

                                       6
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                                SCHEDULE A TO UCC

Schedule A to UCC from Millennium Cell Inc. ("Debtor") and for the benefit of
Wachovia Bank, National Association ("Secured Party").

The following described property whether now owned or hereafter acquired, and
any additions, replacements, accessions, or substitutions thereof and all cash
and non-cash proceeds and products thereof.

Description of Collateral:

Deposit account number XXXX of Debtor at Secured Party and all amounts at any
time on deposit therein ("Assigned Deposits").

Any term which is defined in the Uniform Commercial Code (UCC) has the meaning
given to the term in the UCC.

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      PAYER'S REQUEST FOR TAXPAYERS IDENTIFICATION NUMBER AND CERTIFICATION

Account Name  Millennium Cell Inc.
Address       1 Industrial Way West
              Eatontown, New Jersey 07724

                                 W-9 Substitute

Taxpayer Identification Number:  XXXX

Check this box if you are not subject to backup withholding under the
provisions of Section 3406(a)(1)(C) of the Internal Revenue Code             [ ]

Check this box if you qualify as a Non-Resident Alien                        [ ]

Date

Certification- Under penalties of perjury, I certify that the information
provided on this form is true, correct and complete.

                              Signature: /s/ Norman R. Harpster, Jr.
                                         --------------------------------------
                              Print name: Norman R. Harpster Jr.
                                          -------------------------------------
                                          VP, International Business Management
                                          CFO, Corporate Secretary

                                       8<PAGE>
                                                                   Exhibit 10.23

<TABLE>
<CAPTION>
OUR CREDIT NO.      ISSUE DATE        EXPIRY DATE       LETTER OF CREDIT AMOUNT
--------------      ----------        -----------       -----------------------
<S>                 <C>               <C>               <C>
XXX                 1/30/2003         1/30/2004             USD $8,500,000
</TABLE>

<TABLE>
<CAPTION>
BENEFICIARY                               APPLICANT
-----------                               ---------
<S>                                       <C>
PINE RIDGE FINANCIAL, INC.                MILLENNIUM CELL INC.
C/O CAVALLO CAPITAL CORP.                 1 INDUSTRIAL WAY WEST
660 MADISON AVENUE, 18TH FLOOR            EATONTOWN, NJ 07724
NEW YORK, NEW YORK 10022
</TABLE>

DEAR BENEFICIARY:

WE HEREBY ESTABLISH OUR CLEAN STANDBY LETTER OF CREDIT IN YOUR FAVOR, AS
BENEFICIARY, WHICH IS AVAILABLE BY PAYMENT AGAINST THE FOLLOWING DOCUMENTS:

1)    A DOCUMENT TITLED ON ITS FACE "SIGHT DRAFT" IN ACCORDANCE WITH EXHIBIT A,
      ATTACHED HERETO AND APPROPRIATELY COMPLETED.

2)    AN ORIGINAL OF A "CERTIFICATE OF DRAW", IN THE FORM OF EXHIBIT B, ATTACHED
      HERETO, APPROPRIATELY COMPLETED AND SIGNED BY AN AUTHORIZED OFFICER OF THE
      BENEFICIARY.

3)    THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENTS, IF ANY, FOR
      OUR ENDORSEMENT. (IF YOUR DEMAND REPRESENTS A PARTIAL DRAWING HEREUNDER,
      WE WILL ENDORSE THE ORIGINAL CREDIT AND RETURN SAME TO YOU FOR POSSIBLE
      FUTURE CLAIMS. IF, HOWEVER, YOUR DEMAND REPRESENTS A FULL DRAWING OR IF
      SUCH DRAWING IS PRESENTED ON THE DAY OF THE RELEVANT EXPIRATION DATE
      HEREOF, WE WILL HOLD THE ORIGINAL FOR OUR FILES AND REMOVE SAME FROM
      CIRCULATION.)

THIS LETTER OF CREDIT SETS FORTH IN FULL THE TERMS OF OUR UNDERTAKING AND SUCH
UNDERTAKING SHALL NOT IN ANY WAY BE MODIFIED, AMENDED OR AMPLIFIED BY REFERENCE
TO ANY DOCUMENT OR INSTRUMENT REFERRED TO HEREIN OR IN WHICH THIS LETTER OF
CREDIT IS REFERRED TO OR TO WHICH THIS LETTER OF CREDIT RELATES AND ANY SUCH
REFERENCE SHALL NOT BE DEEMED TO INCORPORATE HEREIN BY REFERENCE ANY DOCUMENT OR
INSTRUMENT.

IT IS A CONDITION OF THIS LETTER OF CREDIT THAT IT SHALL BE DEEMED AUTOMATICALLY
EXTENDED WITHOUT AMENDMENT FOR ONE YEAR FROM THE PRESENT OR ANY FUTURE EXPIRY
DATE UNLESS AT LEAST 60 DAYS (SIXTY DAYS) PRIOR TO SUCH EXPIRATION DATE, WE
NOTIFY YOU IN WRITING BY CERTIFIED MAIL OR EXPRESS COURIER THAT WE ELECT NOT
TO RENEW THIS LETTER OF CREDIT FOR ANY SUCH ADDITIONAL ONE YEAR PERIOD. HOWEVER,
THIS STANDBY LETTER OF CREDIT SHALL NOT BE EXTENDED BEYOND 2/10/2006* WHICH
WILL BE CONSIDERED THE FINAL EXPIRATION DATE.

WE ENGAGE WITH YOU THAT ALL DOCUMENTS PRESENTED IN COMPLIANCE WITH THE TERMS OF
THIS LETTER OF CREDIT WILL BE DULY HONORED BY US IF DELIVERED TO WACHOVIA BANK,
NATIONAL ASSOCIATION, ATTN: LETTER OF CREDIT DEPARTMENT, MAIL CODE NC 6034, 401
LINDEN STREET, WINSTON-SALEM, NORTH CAROLINA 27101, PRIOR TO 3 P.M. ON OR BEFORE
THE EXPIRATION DATE HEREOF.

  CONTINUED ON NEXT PAGE WHICH FORMS AN INTEGRAL PART OF THIS LETTER OF CREDIT
<PAGE>
IRREVOCABLE STANDBY LETTER OF CREDIT NO. XXX                          PAGE NO. 2

UPON RECEIPT BY THE UNDERSIGNED OF A CERTIFICATE IN THE FORM OF EXHIBIT C
ATTACHED HERETO SIGNED BY AN AUTHORIZED OFFICER OF BENEFICIARY AND APPLICANT,
STATING THAT THE AGGREGATE OUTSTANDING PRINCIPAL AMOUNT OF THE DEBENTURE HAS
BEEN REDUCED BY EITHER PAYMENT OR CONVERSION INTO CAPITAL STOCK OR UNSECURED
CONVERTIBLE DEBENTURES AND SETTING FORTH THE AMOUNT OF SUCH REDUCTION, THE
AMOUNT OF THIS LETTER OF CREDIT WILL BE AUTOMATICALLY REDUCED WITHOUT AMENDMENT.
IT IS A CONDITION OF THIS LETTER OF CREDIT THAT DOCUMENTS MAY ALSO BE PRESENTED
AT THE COUNTERS OF OUR NEW YORK BRANCH LOCATED AT 11 PENN PLAZA, NEW YORK, NY
10001 FOR FURTHER DELIVERY TO WACHOVIA BANK, NATIONAL ASSOCIATION, ATTN: LETTER
OF CREDIT DEPARTMENT, MAIL CODE NC 6034, 401 LINDEN STREET, WINSTON-SALEM, NORTH
CAROLINA 27101.

NOTE: IN THE EVENT THAT THE BENEFICIARY ELECTS TO PRESENT DOCUMENTS AT THE
COUNTER OF OUR NEW YORK BRANCH, THE BENEFICIARY MUST IMMEDIATELY INSTRUCT THE
BRANCH MANAGER TO CONTACT ONE OF THE FOLLOWING PERSONS IN THE STANDBY LETTER OF
CREDIT DEPARTMENT:

1) LUISA CIARDI (336) 735-3365
2) RHONDA SULIER (336) 735-3370

EXCEPT SO FAR AS OTHERWISE EXPRESSLY STATED HEREIN THIS LETTER OF CREDIT IS
SUBJECT TO THE "INTERNATIONAL STANDBY PRACTICES 1998 (ISP 98), PUBLICATION NO.
590."

ALL INQUIRIES REGARDING THIS CREDIT SHOULD BE DIRECTED TO US AT OUR
PHONE NUMBER 1-800-776-3862.

/s/ Luisa Ciardi
------------------------------
AUTHORIZED SIGNATURE
<PAGE>
                                   EXHIBIT A

                                  SIGHT DRAFT

$                                               [CITY), [STATE]
                                                [MONTH]     , 200

      AT SIGHT, PAY TO THE ORDER OF PINE RIDGE FINANCIAL INC. THE SUM OF
[AMOUNT IN WORDS] DOLLARS ($             ).

      VALUE RECEIVED, AND CHARGE TO THE ACCOUNT OF MILLENNIUM CELL INC.

      DRAWN UNDER WACHOVIA BANK, NATIONAL ASSOCIATION STANDBY LETTER OF CREDIT
NO. SM201862W, DATED JANUARY 30, 2003, ISSUED BY WACHOVIA BANK, NATIONAL
ASSOCIATION IN FAVOR OF PINE RIDGE FINANCIAL, INC. FOR THE ACCOUNT OF MILLENNIUM
CELL INC.

                                         PINE RIDGE FINANCIAL, INC.

                                         BY:
                                            -----------------------------------
                                         NAME:
                                         TITLE:

PLEASE REMIT PROCEEDS TO OUR ACCOUNT AT:
<PAGE>
                                    EXHIBIT B

                              CERTIFICATE OF DRAW

      THE UNDERSIGNED HEREBY CERTIFIES TO WACHOVIA BANK, NATIONAL ASSOCIATION
(THE "BANK") WITH REFERENCE TO THE STANDBY LETTER OF CREDIT NO. SM201862W (THE
"LETTER OF CREDIT") ISSUED BY THE BANK IN FAVOR OF PINE RIDGE FINANCIAL, INC.,
THAT:

1.    I AM THE       OF PINE RIDGE FINANCIAL, INC. AND AM AUTHORIZED TO EXECUTE
      AND DELIVER THIS CERTIFICATE TO THE BANK ON BEHALF OF PINE RIDGE
      FINANCIAL, INC.

2.    PURSUANT TO SECTION 2(d) OF THE SECURED CONVERTIBLE DEBENTURE DATED
      JANUARY 27, 2003, MADE BY MILLENNIUM CELL INC. PAYABLE TO THE ORDER OF
      PINE RIDGE FINANCIAL, INC. IN THE ORIGINAL PRINCIPAL AMOUNT OF
      $8,500,000.00 (THE "DEBENTURE"), PINE RIDGE FINANCIAL, INC. IS ENTITLED TO
      $               UNDER THE LETTER OF CREDIT.

3.    THE AMOUNT OF THE LETTER OF CREDIT DISBURSEMENT DEMANDED HEREBY IS
      $                 .

  IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS     DAY OF       200 .

                                          PINE RIDGE FINANCIAL, INC.

                                          BY:
                                             ----------------------------------
                                          NAME:
                                          TITLE:
<PAGE>
                                    EXHIBIT C

                            CERTIFICATE OF REDUCTION

      THE UNDERSIGNED HEREBY CERTIFIES TO WACHOVIA BANK, NATIONAL ASSOCIATION
(THE "BANK") WITH REFERENCE TO THE STANDBY LETTER OF CREDIT NO. SM201862W (THE
"LETTER OF CREDIT") ISSUED BY THE BANK IN FAVOR OF PINE RIDGE FINANCIAL, INC.,
THAT:

1.    I AM THE          OF PINE RIDGE FINANCIAL, INC. AND AM AUTHORIZED TO
      EXECUTE AND DELIVER THIS CERTIFICATE TO THE BANK ON BEHALF OF PINE RIDGE
      FINANCIAL, INC.

2.    THE UNDRAWN FACE AMOUNT OF THE LETTER OF CREDIT AS OF THE DATE HEREOF
      EQUALS $         .

3.    THE AGGREGATE OUTSTANDING PRINCIPAL AMOUNT UNDER THE SECURED CONVERTIBLE
      DEBENTURE DATED JANUARY 30, 2003 MADE BY MILLENNIUM CELL INC. PAYABLE TO
      THE ORDER OF PINE RIDGE FINANCIAL, INC. IN THE ORIGINAL PRINCIPAL AMOUNT
      OF $8,500,000 (THE "DEBENTURE") HAS BEEN REDUCED BY [PAYMENT IN THE AMOUNT
      OF $              BY MILLENNIUM CELL INC.] [VIRTUE OF THE CONVERSION OF
      $     OF SUCH PRINCIPAL AMOUNT OUTSTANDING ON THE DEBENTURE INTO SHARES OF
      CAPITAL STOCK OR UNSECURED CONVERTIBLE DEBENTURES OF MILLENNIUM CELL INC.]
      ON        , 200_.

4.    WE CONSENT TO A REDUCTION IN THE UNDRAWN FACE AMOUNT OF THE LETTER OF
      CREDIT TO $        , REPRESENTING THE OUTSTANDING PRINCIPAL AMOUNT OF THE
      LETTER OF CREDIT AS OF [INSERT DATE SET FORTH IN PARAGRAPH 3 ABOVE].

  IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND THIS     DAY OF       200 .

                                        PINE RIDGE FINANCIAL, INC.

                                        BY:
                                           ------------------------------------
                                        NAME:
                                        TITLE:

                                        MILLENNIUM CELL INC.

                                        BY:
                                           ------------------------------------
                                        NAME:
                                        TITLE:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]