Document:

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                              TUT SYSTEMS, INC.

                        REGISTRATION RIGHTS AGREEMENT

                                May 26, 2000
<PAGE>

                              TUT SYSTEMS, INC.

                        REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is entered into as of
May 26, 2000 by and among TUT SYSTEMS, INC., a Delaware corporation (the
"Company"), and the shareholders of Xstreamis, Plc, a United Kingdom holding
company ("Xstreamis"), listed on Exhibits A and B hereto, (each a "Shareholder,"
                                 ----------------
collectively, the "Shareholders").

                                    RECITALS

     A.  The Shareholders will acquire shares of Common Stock of the Company
(the "Shares") pursuant to the terms of an agreement by and between the Company
and Xstreamis, dated of even date herewith, for the sale and purchase of the
entire issued share capital of Xstreamis (the "Share Purchase Agreement").

     B.  The execution of this Agreement is a condition to the closing of the
transactions contemplated by the Share Purchase Agreement.

     C.  The Company desires to enter into this Agreement and grant the
Shareholders the rights contained herein in order to fulfill such condition.

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

                                  Section 1

                             Certain Definitions
                             -------------------

     As used in this Agreement, the following terms shall have the following
respective meanings:

     1.1  "SEC" shall mean the United States Securities and Exchange
Commission or any other federal agency at the time administering the
Securities Act

     1.2  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder, all
as the same shall be in effect at that time

     1.3  "Form S-3" means such form under the Securities Act as is in effect
on the date hereof or any equivalent or successor registration form under the
Securities Act which permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC

     1.4  "Form S-1" means such form under the Securities Act as is in effect on
the date hereof or any equivalent or successor registration form under the
Securities Act which
<PAGE>

requires full disclosure of Company information in accordance with regulations
promulgated by the SEC.

     1.5  The terms "register", "registered" and "registration" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act (as defined below), and the declaration or
ordering of the effectiveness of such registration statement

     1.6  "Registrable Securities" means the shares of Common Stock of the
Company issued to the Shareholders listed on Exhibit A hereto and twenty (20)
                                             ---------
percent of the shares of Common Stock of the Company issued to the
Shareholders listed on Exhibit B hereto pursuant to the Share Purchase
                       ---------
Agreement, excluding in all cases, however, any Registrable Securities sold by
a person in a transaction in which the Shareholder's rights under this
Agreement are not assigned; provided, however, that Registrable Securities
                            --------  -------
shall only be treated as Registrable Securities if and so long as they have
not been sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction

     1.7  "Securities Act" shall mean the Securities Act of 1933, as amended,
and the rules and regulations of the SEC promulgated thereunder, all as the
same shall be in effect at the time

     1.8  An "Affiliate" of the Shareholder means: (i) as to the Shareholder
which is a partnership, any partner, retired partner or affiliated
partnerships managed by the same management company or managing director or
general partner or by an entity which controls, is controlled by, or is under
common control with such management company or managing director or general
partner; (ii) any member or former member of the Shareholder which is a
limited liability company; (iii) any immediate family member or trust for the
benefit of the Shareholder which is an individual; or (iv) any majority-owned
subsidiary of the Shareholder which is a corporation; or (v) any other entity
which controls, is controlled by or is under common control with the
Shareholder.

                                  Section 2

                              Piggyback Rights
                              ----------------

     2.1  Notice of Registration.  If at any time or from time to time, the
          ----------------------
Company shall determine to register any of its securities pursuant to the
Securities Act, for its own account or for the account of stockholders other
than the Shareholders, in an underwritten public offering, the Company will:

          (i) give Shareholders written notice thereof at least twenty (20) days
prior to the filing of any registration statement under the Securities Act; and

          (ii) include in such registration (and any related qualification under
blue sky laws or other compliance) and underwriting all the Registrable
Securities (subject to cutback as set forth in  Section 2.2) specified in a
written request or requests made within twenty (20) days after receipt of such
written notice from the Company by Shareholders.
<PAGE>

     In connection with any registration pursuant to this Section 2, if any
Shareholder participates in such registration, such Shareholder shall provide
all information to the Company as may be required in order to permit the Company
to comply with all applicable requirements of the SEC in connection with such
registration.

     2.2  Underwriting. The right of any Shareholder to registration pursuant to
          ------------
this Section 2 shall be conditioned upon such Shareholder's participation in
such underwriting and the inclusion of Registrable Securities in the
underwriting to the extent provided herein.  If any Shareholder proposes to
distribute its securities through such underwriting, such Shareholder shall
enter into an underwriting agreement in customary form with the managing
underwriter selected for such underwriting by the Company.  Notwithstanding any
other provision of this Section 2, if the managing underwriter advises the
Shareholders registering Shares in writing that such underwriter has determined
in good faith that marketing factors require a limitation of the number of
shares to be underwritten, then the Registrable Securities of the Shareholders,
the securities of the Company and the securities held by any other stockholders
distributing their securities through such underwriting shall be allocated for
purposes of such underwriting first to the Company for its own account, second,
on a pro rata basis based on the number of shares each Shareholder has requested
to be included in such registration in the written request delivered pursuant to
Section 2.1(ii) hereof, to the Shareholders and to any third parties with
previously granted similar rights pursuant to agreements with the Company dated
prior to the date hereof; and third to any other stockholders distributing their
securities through such underwriting on a pro rata basis among such
stockholders.  To facilitate the allocation of shares in accordance with the
above provisions, the Company or the underwriters may round the number of shares
allocated to the Shareholders or other stockholders to the nearest 100 shares.
If any Shareholder disapproves of the terms of any such underwriting, such
Shareholder may elect to withdraw therefrom by written notice to the Company and
the managing underwriter (not later than twenty (20) days prior to the effective
date of the offering).  If the Shareholders have shares which are included in
such an underwritten public offering, any remaining Shares owned by the
Shareholder which are excluded from such underwriting shall not be transferred
in a public distribution prior to 90 days after the effective date of such
registration, or such other shorter period of time as the underwriters may
require.

     2.3  Right to Terminate Registration.  The Company shall have the right to
          -------------------------------
terminate or withdraw any registration initiated by it under this Section 2
prior to the effectiveness of such registration, whether or not any Shareholders
have elected to include securities in such registration.

                                  Section 3

                             Shelf Registration
                             ------------------

     3.1  Filing.  On or before the date which is eighty (80) days after the
          ------
closing of the Share Purchase Agreement, the Company shall file or cause to be
filed pursuant to Rule 415 (or any successor provision) under the Securities Act
a registration statement on Form S-3 or, if the Company is not eligible to use
Form S-3, on Form S-1, covering the resale of all Registrable Securities by the
Shareholders (the "Shelf Registration Statement") and shall use its commercially
reasonable efforts to cause the Shelf Registration Statement to be declared
effective as soon as possible after the Shelf Registration Statement is filed;
provided,
<PAGE>

however, that the Company shall not be obligated to effect any such
registration pursuant to this Section 3 if the Company shall furnish to the
Shareholders a certificate signed by the President of the Company stating that
in the good faith judgment of the Board of Directors of the Company, it would
be seriously detrimental to the Company and its stockholders for such
registration statement to be effected at such time, in which event the Company
shall have the right to defer the filing of the Shelf Registration Statement
for a period of not more than one hundred ten (110) days after the closing of
the Share Purchase Agreement.

     3.2  Effectiveness.  Once effective, the Company shall cause the Shelf
          -------------
Registration Statement to remain effective until the earlier of (i) the date
upon which the Shelf Registration Statement has been effective for an aggregate
of ninety (90) days, and (ii) the date upon which all Registrable Securities
have been sold pursuant to the Shelf Registration Statement.  The Company shall
use its commercially reasonable efforts to keep the Shelf Registration Statement
effective for an aggregate of at least forty-five (45) days in calendar year
2000 (the "Minimal Shelf Registration Period"), and the Company shall not
suspend use of the Shelf Registration Statement pursuant to Section 5 hereof so
that the Shelf Registration Statement (and any refilings thereof or amendments
thereto to disclose material developments) is not effective for the Minimal
Shelf Registration Period in calendar year 2000, provided, however, that the
sole remedy of the Shareholders in the event the Shelf Registration Statement is
not effective for the Minimal Shelf Registration Period shall be to cause the
Company to repurchase any Registrable Securities which have not otherwise been
sold.  To exercise such repurchase right, a Shareholder must provide written
notice to the Company on or before January 10, 2001, requesting the repurchase
of Registrable Securities.  The repurchase price shall be determined as the
average closing price of the Common Stock of the Company as listed on the NASDAQ
(or if not so listed, as determined in good faith by an independent investment
banking or brokerage firm) for each of the trading days on which the Shelf
Registration Statement is not available for the sale of Registrable Securities
by reason of suspension of the use of the Shelf Registration Statement in
accordance with Section 5 of this Agreement, after the Shelf Registration
Statement is first declared effective by the SEC and before January 1, 2001.  If
the Shelf Registration Statement is filed with the SEC on or before August 12,
2000 but is not declared effective prior to September 15, 2000, then for each
day beginning September 16, 2000 for which the Shelf Registration Statement has
not been declared effective by the SEC, the Minimal Shelf Registration Period
shall be reduced by one day (on a day-for-day basis), provided, however, that
this reduction shall not reduce the obligation of the Company to maintain the
effectiveness of the Shelf Registration Statement for the period specified in
the first sentence of this Section 3.2 or prejudice in any way any of the other
rights of the Shareholders under this Agreement.  The Company and the
Shareholders who desire to sell their Registrable Securities to the Company
pursuant to the foregoing right shall use their commercially reasonable efforts
to complete the repurchase of the Registrable Securities specified in the
notices to the Company no later than January 20, 2001.

                                  Section 4

                           Obligations of Company
                           ----------------------

     Whenever the Company effects a registration of the Registrable Securities,
the Company shall (i) prepare and, as soon as possible, file with the SEC a
registration statement
<PAGE>

with respect to the Registrable Securities, and use its commercially
reasonable efforts to cause such registration statement to become effective
and to keep such registration statement effective until the earlier of the
sale of the Registrable Securities so registered or, with respect to the Shelf
Registration Statement, the period specified in Section 3 hereof; (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 make and to keep such registration statement effective and to comply with
the provisions of the Securities Act with respect to the sale or other
disposition of all securities proposed to be registered in such registration
statement until the earlier of the sale of the Registrable Securities so
registered or, with respect to the Shelf Registration Statement, the period
specified in Section 3 hereof; (iii) furnish to Shareholders such number of
copies of any prospectus (including any preliminary prospectus and any amended
or supplemented prospectus), in conformity with the requirements of the
Securities Act, as Shareholders may reasonably request in order to effect the
offering and sale of the Registrable Securities to be offered and sold, but
only while the Company shall be required under the provisions hereof to cause
the registration statement to remain current; (iv) use its commercially
reasonable efforts to register or qualify the Registrable Securities covered
by such registration statement under the securities or blue sky laws of such
states as Shareholders shall reasonably request, maintain any such
registration or qualification current until the earlier of the sale of the
Registrable Securities so registered or, with respect to the Shelf
Registration Statement, the period specified in Section 3 hereof, and take any
and all other commercially reasonable actions either necessary or advisable to
enable Shareholders to consummate the public sale or other disposition of the
Registrable Securities in jurisdictions where Shareholders desire to effect
such sales or other disposition; and (v) take all such other commercially
reasonable actions either necessary or appropriate to permit the Registrable
Securities held by Shareholders to be registered and disposed of in accordance
with the method of disposition described herein. Notwithstanding the
foregoing, the Company shall not be required to register or to qualify an
offering of the Registrable Securities under the laws of a state if as a
condition to so doing the Company is required to qualify to do business or to
file a general consent to service of process in any such state or
jurisdiction, unless the Company is already subject to service in such
jurisdiction. It shall be a condition precedent to the obligations of the
Company to take any action pursuant to Sections 2, 3 or 4 that selling
Shareholders shall furnish to the Company such information regarding
themselves, the Registrable Securities held by them, and the intended method
of disposition of such securities as shall be required to timely effect the
registration of their Registrable Securities.

                                  Section 5

           Additional Obligations of Shareholders and the Company
           ------------------------------------------------------

     If the Company has delivered a prospectus to any Shareholder and after
having done so the prospectus is amended to comply with the requirements of the
Securities Act, the Company shall promptly notify such Shareholders and, if
requested, such Shareholders shall immediately cease making offers of
Registrable Shares pursuant to the prospectus and return all prospectuses to the
Company.  The Company shall promptly provide such Shareholders with revised
prospectuses and, following receipt of the revised prospectuses, such
Shareholders shall be free to resume making offers of the Registrable Shares.
In the event that, in the reasonable judgement of the Company, it is advisable
to suspend use of a
<PAGE>

prospectus included in a registration statement due to pending material
developments or other events that have not yet been publicly disclosed and as
to which the Company believes public disclosure would be detrimental to the
Company, the Company shall notify Shareholders to such effect, and, upon
receipt of such notice, such Shareholders shall immediately discontinue any
sales of Registrable Shares pursuant to such registration statement until such
Shareholders have received copies of a supplemented or amended prospectus or
until such Shareholders are advised in writing by the Company that the then
current prospectus may be used and have received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such prospectus.

                                   Section 6

                          Expenses of Registration
                          ------------------------

     The Company shall pay all of the out-of-pocket expenses incurred in
connection with any registration statements that are initiated pursuant to
Sections 2, 3 and 4 of this Agreement, including, without limitation, all SEC
and blue sky registration and filing fees, printing expenses, transfer agent and
registrar fees, the fees and disbursements of the Company's outside counsel and
independent accountants.  Any underwriting discounts, fees and disbursements of
counsel to the Shareholders, selling commissions and stock transfer taxes
applicable to the Registrable Securities registered on behalf of the
Shareholders shall be borne by the Shareholders of the Registrable Securities
included in such registration.

                                  Section 7

                               Indemnification
                               ---------------

     7.1  The Company.  In connection with any registration statement, the
          -----------
Company agrees to indemnify and hold harmless the Shareholders, their assignees
and each person, if any, who controls the Shareholders or their assignees within
the meaning of  the Securities Act or the Exchange Act (such persons being
referred to collectively as the "Indemnified Parties") from and against any
losses, claims, damages or liabilities, joint or several, or any actions in
respect thereof (including but not limited to any losses, claims, damages,
liabilities or actions relating to purchases and sales of the Registrable
Securities) to which each Indemnified Party may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in such
registration statement or prospectus or in any amendment or supplement thereto,
or arise out of, or are based upon, the omission or alleged 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 shall reimburse, as incurred, the Indemnified Parties for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action in
respect thereof; provided, however, that (i) the Company shall not be liable in
any such case to the extent that such loss, claim, damage or liability arises
out of or is based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in such registration statement or any
preliminary or final prospectus or in any amendment or supplement thereto in
reliance upon and in conformity with written information pertaining to
<PAGE>

the Shareholders and furnished to the Company by or on behalf of the
Shareholders specifically for inclusion therein, (ii) with respect to any
untrue statement or omission or alleged untrue statement or omission made in
any prospectus relating to such Registration Statement, the indemnity
agreement contained in this subsection (a) shall not inure to the benefit of
any person as to which there is a prospectus delivery requirement (a
"Delivering Seller") that sold the Registrable Shares to the person asserting
any such losses, claims, damages or liabilities to the extent that any such
loss, claim, damage or liability of such Delivering Seller results from the
fact that there was not sent or given to such person, on or prior to the
written confirmation of such sale, a copy of the relevant prospectus, as
amended and supplemented, provided that (I) the Company shall have previously
furnished copies thereof to such Delivering Seller in accordance with this
Agreement and (II) such furnished prospectus, as amended and supplemented,
would have corrected any such untrue statement or omission or alleged untrue
statement or omission, and (iii) this indemnity agreement will be in addition
to any liability which the Company may otherwise have to such Indemnified
Party.

     7.2  The Shareholders.  In connection with any registration statement, the
          ----------------
Shareholders and/or holders of Registrable Securities will indemnify and hold
harmless the Company and each person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act and the directors,
officers, agents and employees of such controlling persons from and against any
losses, claims, damages or liabilities or any actions in respect thereof to
which the Company or any such controlling person or director, officers, agent or
employee of such controlling person may become subject under the Securities Act,
the Exchange Act or otherwise, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained in such registration
statement or preliminary or final prospectus or in any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading, but in each
case only to the extent that the untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with
written information pertaining to the Shareholders and furnished to the Company
by or on behalf of the Shareholders specifically for inclusion therein; and,
subject to the limitation set forth immediately preceding this clause, shall
reimburse, as incurred, the Company for any legal or other expenses reasonably
incurred by the Company or any such controlling person in connection with
investigating or defending any loss, claim, damage, liability or action  in
respect thereof. This indemnity agreement will be in addition to any liability
which the Shareholders may otherwise have to the Company or any of its
controlling persons.

     7.3  Promptly after receipt by an indemnified party under this section of
notice of the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is to
be made against the indemnifying party under this section, notify the
indemnifying party of the commencement thereof; but the omission so to notify
the indemnifying party will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification
obligation provided in subsection 7.1 or 7.2 above, except to the extent that it
is prejudiced or harmed in any material respect by failure to give such prompt
notice. In case any such action is brought against any indemnified party, and it
notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate
<PAGE>

therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with one
counsel (and local counsel as necessary) reasonably satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof the indemnifying party will not be liable to such indemnified
party under this section for any legal or other expenses, other than
reasonable costs of investigation, subsequently incurred by such indemnified
party in connection with the defense thereof. No indemnifying party shall,
without the prior written consent of the indemnified party, not to be
unreasonably withheld, effect any settlement of any pending or threatened
action in respect of which any indemnified party is or could have been a party
and indemnity could have been sought hereunder by such indemnified party
unless such settlement includes an unconditional release of such indemnified
party from all liability on any claims that are the subject matter of such
action. No indemnifying party shall be liable for any amounts paid in
settlement of any action or claim without its written consent, which consent
shall not be unreasonably withheld, but if settled in accordance with its
written consent or if there be a final judgment of the plaintiff in any such
action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such
settlement or judgment.

     7.4  If the indemnification provided for in this section is unavailable or
insufficient to hold harmless an indemnified party under subsections 7.1 or 7.2
above for any reason other than as provided in subsection 7.3 above, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to in subsection 7.1 or 7.2 above (i) in
such proportion as is appropriate to reflect the relative  benefits received by
the indemnifying party or parties on the one hand and the indemnified party on
the other or (ii) if the allocation provided by the foregoing clause (i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the indemnifying party or parties on the one hand and the indemnified
party on the other in connection with the  statements or omissions that resulted
in such  losses, claims, damages or liabilities (or actions in respect thereof)
as well as any other relevant equitable considerations. The relative fault of
the parties shall be determined by  reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Company on the one hand or the Shareholders or such other indemnified person, as
the case may be, on the other, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection 7.4 shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any action or claim which is the subject of this subsection 7.4. Notwithstanding
any other provision of this subsection 7.4, the Shareholders shall not be
required to contribute any amount in excess of the amount by which the net
proceeds received by the Shareholders from the sale of the Registrable
Securities pursuant to the registration statement exceeds the amount of damages
which the Shareholders would have otherwise been required to pay by reason of
such untrue or alleged untrue statement  or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent
<PAGE>

misrepresentation. For purposes of this paragraph 7.4, each officer, director,
employee, representative and agent of an indemnified party and each person, if
any, who controls such indemnified party within the meaning of the Securities
Act or the Exchange Act shall have the same rights to contribution as such
indemnified party, and each officer, director, employee, representative and
agent of the Company and each person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as the Company.

     7.5  The agreements contained in this section shall survive the sale of the
Registrable Securities pursuant to the registration statement, as the case may
be, and shall remain in full force and effect, regardless of any termination or
cancellation of this Agreement or any investigation made by or on behalf of any
indemnified party.

                                  Section 8

                             Rule 144 Reporting
                             ------------------

     With a view to making available the benefits of certain rules and
regulations of the SEC which may at any time permit the sale of the Registrable
Securities to the public without registration, the Company agrees to use its
commercially reasonable efforts to:

          (a) Make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times during
which the Shareholders hold Registrable Securities;

          (b) File with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act
and shall not voluntarily cease to be a reporting company under the Exchange
Act; and

          (c) So long as the Shareholder is entitled to register any Registrable
Securities, furnish to the Shareholder forthwith upon written request a written
statement by the Company as to its compliance with the reporting requirements of
said Rule 144, and of the Securities Act and the Exchange Act, a copy of the
most recent annual or quarterly report of the Company, and such other reports
and documents of the Company, and such other reports and documents so filed as
the Shareholder may reasonably request in availing itself of any rule or
regulation of the SEC allowing the Shareholder to sell any such securities
without registration.

                                  Section 9

                             Standoff Agreement
                             ------------------

     In connection with any underwritten public offering by the Company under
the Securities Act, if the Shareholders have shares which are included in such
an offering, each selling Shareholder agrees not to sell, make any short sale
of, loan, grant any option for the purchase of, or otherwise dispose of any
Registrable Securities (other than those included in the offering, if any)
without the prior written consent of the Company or the managing
<PAGE>

underwriter for such period of time (not to exceed the period beginning seven
(7) days prior to the effective date of the registration statement for the
offering and ending ninety (90) days after the date of the Final Prospectus
relating to such offering), as may be requested by the Company and the
managing underwriter, provided that all other selling stockholders enter into
similar agreements. For the avoidance of doubt, this restriction shall not
apply to Shareholders who are not selling Registrable Securities in such
offering.

                                 Section 10

                   Grant of Additional Registration Rights
                   ---------------------------------------

     The Shareholders acknowledge that the Company may acquire other companies
and in the course of such acquisitions may grant the equity owners thereof
registration rights with respect to their shares of the Company on terms which
would be negotiated at such time and may be materially different than the terms
of this Agreement, provided, however, that the Company shall not grant any
registration rights inconsistent with the rights of the Shareholders under this
Agreement.

                                 Section 11

                                  Legends
                                  -------

     Each certificate representing Registrable Securities shall be stamped or
otherwise imprinted with a legend in the following form (in addition to any
legend required under applicable state securities laws):

     "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF U.S.
PERSONS, EXCEPT (A) TO TUT SYSTEMS, INC. OR ANY SUBSIDIARY THEREOF, (B) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO RULE 144 UNDER THE
SECURITIES ACT, OR (E) PURSUANT TO ANY OTHER EXEMPTION OR SAFE HARBOUR FROM
REGISTRATION UNDER THE SECURITIES ACT (IF AVAILABLE).  PRIOR TO ANY OFFER, SALE
OR OTHER TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE (C), (D) OR (E) ABOVE, THE
HOLDER WILL BE REQUIRED TO DELIVER TO TUT SYSTEMS, INC. SUCH CERTIFICATIONS OR
OTHER INFORMATION AS TUT SYSTEMS, INC. MAY REASONABLY REQUIRE (INCLUDING IN THE
CASE OF (C), (D) or (E) SUCH CERTIFICATIONS AND INFORMATION AS ARE REASONABLY
REQUIRED TO ENABLE COUNSEL FOR THE COMPANY TO RENDER AN OPINION OF COUNSEL) TO
CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM OR IN A
TRANSACTION NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
THE HOLDER ALSO AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS
<PAGE>

TRANSFERRED PURSUANT TO REGULATION S A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND."

                                 Section 12

                            Termination of Rights
                            ---------------------

     The registration rights set forth in this Agreement shall terminate as to
any Shareholder at such time as all of the Registrable Securities then held by
such Shareholder can be sold by such Shareholder in accordance with Rule 144(k)
under the Securities Act.

                                 Section 13

                               Miscellaneous
                               -------------

     13.1  Governing Law.  This Agreement shall be governed by and construed
           -------------
under the laws of the State of California as applied to agreements entered into
solely between residents of, and to be performed entirely within, such state.

     13.2  Counterparts.  This Agreement may be executed in two or more
           ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

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

     13.4  Notices.  ll notices and other communications required or permitted
           -------
under this Agreement or in connection herewith shall be given to or made upon
(i) if to the Shareholders, at the Shareholders' addresses as set forth in the
securities register of the Company or (ii) if to the Company, at 2495 Estand
Way, Pleasant Hill, California 94538, USA, Attention: Chief Financial Officer.

          (b) All notices and other communications given or made in accordance
with the provisions of this Agreement shall be in writing, and shall be sent by
overnight mail, return receipt requested, or by facsimile with confirmation of
receipt, and shall be deemed to be given or made when receipt is so confirmed.

          (c) Any party may, by written notice to the other, alter its address
or respondent, and such notice shall be considered to have been given three (3)
days after the airmailing or faxing thereof.

     13.5  Attorney's Fees.  If any action at law or in equity (including
           ---------------
arbitration) is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which such party may
be entitled.

     13.6  Amendments and Waivers.  Any term of this Agreement may be amended
           ----------------------
and the observance of any term of this Agreement may be waived (either generally
or in a
<PAGE>

particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Shareholders.

     13.7  Severability.  If one or more provisions of this Agreement are held
           ------------
to be unenforceable under applicable law, portions of such provisions, or such
provisions in their entirety, to the extent necessary, shall be severed from
this Agreement, and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

     13.8  Delays or Omissions.  No delay or omission to exercise any right,
           -------------------
power or remedy accruing to any party to this Agreement, upon any breach or
default of the other party, shall impair any such right, power or remedy of such
non-breaching party nor shall it be construed to be a waiver of any such breach
or default, or an acquiescence therein, or of any similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring.  Any waiver, permit, consent or approval of any kind or character on
the part of any party of any breach or default under this Agreement, or any
waiver on the part of any party of any provisions or conditions of this
Agreement, must be made in writing and shall be effective only to the extent
specifically set forth in such writing.  All remedies, either under this
Agreement, or by law or otherwise afforded to the Shareholders, shall be
cumulative and not alternative.

     13.9  Currency.  All references herein to dollar amounts shall be to United
           --------
States dollars.

     13.10  Assignment.  The rights and obligations of the Shareholders under
            ----------
Sections 2, 3 and 4 may only be assigned to a person or entity that (i) is an
Affiliate of the Shareholder; or (ii) acquires not less than 20% of the
Registrable Securities held by the Shareholder.

     13.11  Entire Agreement.  This Agreement and the documents referred to
            ----------------
herein constitute the entire agreement between the parties hereto pertaining to
the subject matter hereof and any other written or oral agreements between the
parties hereto are expressly canceled.

     13.12  Aggregation.  All shares of Registrable Securities held or acquired
            -----------
by affiliated entities shall be aggregated together for the purpose of
determining the availability of any rights under this Agreement which are
conditioned upon the ownership of a specified number of shares by the
Shareholder.
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

COMPANY:

TUT SYSTEMS, INC.

By:
   ---------------------

Name:
     -------------------

Title:
      ------------------

SHAREHOLDERS:

------------------------
Alice Cheng

CLARENDON NOMINEES LIMITED

   Philip Corbishley
   pursuant to Power of Attorney

By:
   ---------------------

   Philip Corbishley
   pursuant to Power of Attorney

CLARENDON TRUST CO LIMITED

By:
   ---------------------

   Philip Corbishley
   pursuant to Power of Attorney

               [Signature Page to Registration Rights Agreement]
<PAGE>

COMMERZ BETEILIGUNGS GMBH

By:
   ---------------------

Name:
     -------------------

Title:
      ------------------

MAKINEN PROPERTIES LIMITED

By:
   ---------------------

   Philip Corbishley
   pursuant to Power of Attorney

MEES PIERSON (CAYMAN) LIMITED, as Trustee for
Sofaer Funds/SCI Global Hedge Fund

By:
   ---------------------

   Philip Corbishley
   pursuant to Power of Attorney

HSBC FINANCIAL SERVICES (CAYMAN) LIMITED,
solely as Trustee for the Abel-Sci Venture Fund

By:
   ---------------------

Name:
     -------------------

Title:
      ------------------

               [Signature Page to Registration Rights Agreement]
<PAGE>

PEARL FINANCE LIMITED

By:
   ---------------------

   Philip Corbishley
   pursuant to Power of Attorney

SANDFORD CHILDREN'S TRUST

By:
   ---------------------

   Philip Corbishley
   pursuant to Power of Attorney

RALEIGH NOMINEES LIMITED

By:
   ---------------------

   Philip Corbishley
   pursuant to Power of Attorney

------------------------
David Birss

------------------------
Jim Chapman

------------------------
Simon Hughes

------------------------
Ian Moir

               [Signature Page to Registration Rights Agreement]
<PAGE>

                                  EXHIBIT A
                                  ---------

                                 Alice Cheng

                         Clarendon Nominees Limited

                         Clarendon Trust Co Limited

                          Commerz Beteiligungs GMBH

                         Makinen Properties Limited

                       Mees Pierson (Cayman) Limited,
              as Trustee for Sofaer Funds/Sci Global Hedge Fund

                  HSBC Financial Services (Cayman) Limited
               solely as Trustee for the Abel-Sci Venture Fund

                            Pearl Finance Limited

                          Sandford Children's Trust

                          Raleigh Nominees Limited
<PAGE>

                                  EXHIBIT B
                                  ---------

                                 David Birss

                                 Jim Chapman

                                Simon Hughes

                                  Ian MoirMASTER FUNDING AGREEMENT
                            ------------------------

     This  Agreement  is  made this 21ST (HANDWRITTEN)day of JULY (HANDWRITTEN),
                                    ------------------       ------------------
2000 by and between TRINITY (TEXAS) ENERGY RESOURCES, INC. ("Trinity"), a Nevada
corporation, with its principal offices in Houston, Harris County, Texas and THE
SALUS  TRUST  ("the  Trust"), a trust established under the laws of the State of
Texas,  with  its  principal  offices  in  Houston,  Harris  County,  Texas.

                                       I.

                                BRIDGE FINANCING
                                ----------------

     The  Trust  agrees  to provide Trinity the following financing (the "bridge
financing")  for  the  purpose  of meeting Trinity's operational commitments and
overhead  expenses  in  connection  with  its  ongoing  business  activities:

     The  sum  of  One Million Dollars ($1,000,000.00) to be funded concurrently
with  the  execution of this Agreement, and which shall bear an interest rate of
fifteen  percent(15%)  annually, with principal to be paid monthly until paid in
full  and  interest  to  be  paid monthly in the form of common stock of Trinity
Energy  Resources,  Inc.  at  a  price  of  $  .25 per share, with no prepayment
penalty.  The  loan  shall  be  represented  by  a  promissory  note in the form
attached as Exhibit "A" executed by Trinity and payableto the order of the Trust
and  secured  by  certain  collateral  hereinafter  described.

     The  collateral  securing  the  loan  made  hereunder  is  as  follows:

     1.  Any  and  all cash flow from all oil and gas wells owned or operated by
Trinity,  wherever  located,  and  subject  to  existing  encumbrances.

     Furthermore,  the  Trust  agrees to purchase One Hundred Thousand (100,000)
shares  of Trinity's 2000 Series of Convertible Redeemable Preferred Stock at an
offering  price  of Ten Dollars ($10.00) per share.  The rights, preferences and
privileges of said shares are more fully described and set forth in the attached
Exhibit  "B"  but  which  are  generally  described  as  follows:

     Each  share  has  a  par  value of $.001 per share, but a stated capital of
$10.00.  Each  share  is  convertible  into 40 shares of Trinity's common stock.
The 2000 Series votes with the Common Stock as a single class and each share has
40 votes.  The dividend payable on the 2000 Series is 7% and is cumulative.  The
holder  may, after a holding period of 12 months, put the shares back to Trinity
at  $10.00  per  share plus a premium calculated at 8% of the stated capital for
the period outstanding less any dividends declared and paid.  Trinity may redeem
the shares at any time after 12 months at a redemptive price of $10.00 per share
plus  a premium calculated as 8% of the stated capital from the date of issuance
less  any  dividends  declared  and  paid.

<PAGE>
     The  Trust  will  execute  an  investor  suitability  questionnaire  and  a
subscription  agreement  in  the form attached as Exhibit "C" and tender same to
Trinity  along  with  payment  for  said  preferred  shares.

     The  promissory  note,  investor suitability questionnaire and subscription
agreement,  evidenced  by  Exhibits  "A",  "B"  and  "C"  attached  hereto, (the
"transaction  documents")  shall  be  executed  at  closing.

                                       II.

                                 LINE OF CREDIT
                                 --------------

     At  closing  or  no later than forty-five (45) days from closing, the Trust
shall  provide to Trinity a line of credit in the amount of Twenty-eight Million
Dollars  ($28,000,000.00)  to  be used by Trinity for the acquisition of gas and
oil  producing  properties,  natural gas storage and/or electrical generation in
the United States of America and for such other ventures as mutually agreed upon
by  Trinity  and  the  Trust.

     Such credit line shall be open for a term of one hundred eighty (180) days.
Trinity shall have the right to use all or any portion of the credit line during
this  time  period.  At  the end of the one hundred eighty (180) day period, any
unused balance remaining on the credit line shall immediately expire and Trinity
shall  have no further rights regarding same, however, the balance of the credit
line,  if  any  there  shall be, may be extended for such additional term as the
parties  may  mutually  agree.

     The  provision  of the line of credit is subject to the following terms and
conditions:

A.  Trinity shall pay interest to the Trust on all amounts borrowed on a monthly
basis.  The  interest rate applicable to this transaction shall be calculated as
the  differential, if any, between the interest earned by the Trust on the funds
on deposit with the lending institution which are used to secure the credit line
and  the  interest  payable  by  the  Trust  to  the  lending  institution  in
consideration  for  providing  the  credit  line,  plus  fifteen  percent (15%).

B.  Trinity  shall  repay  to  the  Trust,  according  to a mutually agreed upon
amortization  schedule,  all principal amounts borrowed plus interest as defined
above  on a monthly basis.  The Trust shall keep all such funds repaid in escrow
until  such  time as it determines, in its sole discretion, to repay the lending
institution  who  provided  the  funds.  Trinity will be held harmless as to any
default  by the Trust to the lending institution nor shall Trinity be liable for
the  payment  of any interest in excess of that stated in paragraph II (A) above
because  of  the  Trust's failure or decision not to make payment to the lending
institution.

<PAGE>
C.  Not  less  than  thirty-five  (35) days prior to any proposed or tentatively
scheduled  closing for the purchase of any property permitted by this Agreement,
Trinity  shall notify the Trust of its intention to make such purchase and shall
provide  the  pertinent  financial details to the Trust.  No later than five (5)
days prior to closing, the Trust shall deliver to Trinity sufficient funds drawn
against  the credit line, or other written assurances that sufficient funds will
be  provided  at  closing.  In the event of any failure or delay by the Trust in
providing  such  funds  to  Trinity,  the  Trust  shall  pay  any  and all fees,
penalties,  charges  or  damages  because  of  such  failure  or  delay.

D.  Before  delivering  its request to the Trust for funding for any acquisition
permitted by this agreement, Trinity shall, at its own expense, conduct or cause
to  be  conducted  all  necessary  and  reasonable  due  diligence regarding the
acquisition  as  is  standard  and  common practice in the energy industry.  The
Trust  retains  the  right  to  inspect  and copy all such records regarding due
diligence  efforts  undertaken  by Trinity.  If necessary to properly secure its
security  interest  in  the  transaction, the Trust may undertake additional due
diligence  efforts  at its sole cost and expense and retains the right to confer
with  the  parties  to  such  transaction.

E.  All  information reviewed, retained or gathered by the Trust regarding these
transactions  and  any  subsequent operations conducted by Trinity shall be kept
confidential  by  the  Trust  for  a  period  of  five  years.

F.  The Trust shall be given a first lien on all properties acquired with credit
line  financing.  Such liens shall be executed and filed by Trinity simultaneous
with  such  closing(s).  The Trust shall have the right to have a representative
attend  the  closing.

G.  At  the option of the Trust, but no later than thirty (30) days after tender
of  repayment by Trinity, all or any part of the funded amounts may be converted
at  any  time prior to principal repayment into shares of Trinity's common stock
at  a  conversion  price  equal  to  $  .25  per  share.

H.  Trinity  shall  be  responsible  for  the  payment of all costs and expenses
associated  with  the  acquisition of properties permitted under this agreement,
including but not limited to filing fees, registration fees, taxes, assessments,
charges  and  miscellaneous  fees.

                                      III.

                           REPRESENTATIONS BY TRINITY
                           --------------------------

Trinity  represents  and  warrants  the  following:

A.  Trinity  has  taken  all  necessary  corporate action for the authorization,
execution,  delivery  and  performance  of  this  agreement  and its obligations
hereunder,  including  but  not limited to the granting of the option to convert
any  or  all  of the financing provided herein into the common stock of Trinity.

B.  The  proceeds  of the Bridge Financing will be applied to the costs directly
associated  with  operations  and administrative (overhead) expenses of Trinity.

C.  There  is  no  fact  which  Trinity  has  not  disclosed  to the Trust which
materially adversely affects, or insofar as Trinity can reasonably foresee could
materially  adversely  affect, the ability of Trinity to perform its obligations
under  this  Agreement.

<PAGE>
D.  The  execution  and performance of this Agreement will not violate or breach
any  other  contract,  order,  judgment,  articles  of  incorporation, bylaws or
shareholders'  agreement  to  which  Trinity  is  a  party.

E.  Trinity  is  a  corporation  duly  organized,  validly  existing and in good
standing  under the laws of the state of its incorporation and has all requisite
corporate  power  and  authority to own, lease and operate its properties and to
carry  on  its  business  as it is now being conducted.  Trinity is licensed and
qualified  to do business as a foreign corporation in each jurisdiction in which
the  character  of  its  properties,  owned  and  leased,  or  the nature of its
activities  make such qualification or license necessary.  Trinity warrants that
it  will  acquire  such  standing,  license  or other qualification necessary to
conduct  business  in any jurisdiction where it seeks to do business pursuant to
this  Agreement  but  currently  lacks  such  authorization.

F.  Trinity  has authorized capital stock of 300,000,000 shares of common stock,
par  value,  $0.001  per  share,  of  which,  as  of  the date hereof, there are
63,430,454  shares  issued  and  outstanding  and 50,000,000 shares of preferred
stock,  par  value  $0.001  per  share, of which, as of the date hereof, 161,750
shares  are issued and outstanding.  All of the issued and outstanding shares of
common stock and preferred stock were duly and validly issued and are fully paid
and non-assessable.  None of the outstanding shares of common stock or preferred
stock  has  been  issued in violation of any preemptive rights of the current or
past  shareholders  of  Trinity.

G.  All of the common stock issuable to the Trust by the terms of this Agreement
will  be  fully  paid,  non-assessable  and  free  and clear of any encumbrances
including  restrictions  pursuant  to  Rule  144  of the Securities and Exchange
Commission.

                                       IV.

                          REPRESENTATIONS BY THE TRUST
                          ----------------------------

The  Trust  represents  and  warrants  to  Trinity  as  follows:

A.  The Trust is duly organized and validly existing pursuant to the laws of the
State of Texas and has all requisite power and authority to conduct its business
as it is now being conducted and to enter into and consummate this Agreement and
the  transactions  contemplated  hereby.

B.  The  execution and delivery of this Agreement, the transaction documents and
the  consummation  of  the  transactions  contemplated  hereby  have  been  duly
authorized  by  all  necessary action.  The transaction documents have been duly
executed  and  delivered  by  the  Trust  and  constitute  the valid and binding
obligations  of  the  Trust.  The  execution  and  delivery  of  the transaction
documents  do  not, and the consummation of the transactions contemplated hereby
will  not,  conflict  with  or  result  in  a  breach or the acceleration of any
obligation under, or constitute a default or an event of default under the Trust
Agreement  of  the  Trust  or  any other material contract to which the Trust is
bound,  the  effect  of  which  would  be  materially  adverse  to  Trinity.

<PAGE>
C.  There  is  no  legal  impediment  to  the  execution  and  delivery  of  the
transaction  documents  by  the Trust or to the consummation of the transactions
contemplated  thereby,  and  no  filing  or registration with, or authorization,
consent  or  approval  of  a  governmental  entity,  or any other third party is
necessary  for  the  consummation  by the Trust of the transactions contemplated
hereby.

D.  The  Trust  has  received and reviewed a copy of Trinity's Private Placement
Memorandum  and  Form  10SB and other written materials required to be furnished
by  Trinity to the Trust in connection with this Agreement and the Trust has had
the  opportunity  to  interview and ask questions of the officers, directors and
representatives  of  Trinity  to  its  satisfaction  prior  to execution of this
Agreement.

E.  The  Trust  has  knowledge  and  experience  in  investments  of  the  type
contemplated by the acquisition of Trinity's securities, is able to evaluate the
merits  and  risks of such investments and is capable of bearing a complete loss
of  investment in Trinity's securities.  The Trust recognizes that an investment
in  Trinity's  securities  is  speculative and involves special risks, including
those  set  forth  in  the  Private  Placement  Memorandum.

F.  There  is  no  fact  which the Trust has not disclosed that would materially
adversely  affect,  or  insofar  as  the  Trust  can reasonablely foresee, could
materially  adversely  affect  the  Trust  in its performance of its obligations
hereunder.

                                       V.

                                   THE CLOSING
                                   -----------

A.  The  closing of the transactions contemplated under this Agreement will take
place  on  dates agreed to by the parties (the "closing date") at the offices of
Trinity,  unless  another  time  and  place  are  agreed  to  by  the  parties.

B.  The  obligation  of  Trinity  to  effect the Closing is subject to the Trust
delivering,  or causing to be delivered, to Trinity at the Closing the following
documents:

     1.  The  transaction  documents  duly  executed  by  the  Trust  and

     2.  The  consideration  or  evidence  confirming  transfer  of  funds  and
establishment  of  the  line  of  credit  in  favor  of  Trinity.

C.  The  obligation  of  the  Trust  to effect the Closing is subject to Trinity
delivering,  or  causing  to  be  delivered,  to  the  Trust  at the Closing the
following  documents:

     1.  The  promissory  note  and  security  interest  and

     2.  The  transaction  documents  duly  executed  by  Trinity.

<PAGE>
                                       VI.

                               GENERAL PROVISIONS
                               ------------------

A.  This  Agreement  is made subject to and shall be governed by and enforced in
accordance  with  the laws of the State of Texas and the applicable federal laws
of  the  United  States.  This  Agreement is fully performable in Harris County,
Texas.

B.  The  terms  and  provisions of this Agreement shall inure to the benefit of,
and  be  binding  upon  the  parties hereto, their successors, assigns and legal
representatives.  The  parties  hereto  agree  to execute such other instruments
which  may  be  necessary  to  carry  out  or  to  make  effective the terms and
provisions  of  this  Agreement.

C.  It  is  agreed  that the terms of this Agreement are final and supercede any
previous  agreement, either oral or in writing, between the parties with respect
to  the  subject  matter  of this Agreement.  This Agreement contains the entire
understanding of the parties and all of the covenants and agreements between the
parties  with  respect  to  the  subject  matter  of  this  Agreement.  No other
representations,  oral or written, shall survive the execution of this Agreement
and  all  representations made by and between the parties respecting the subject
matter  hereof  are  contained  in  this  Agreement.

D.  Notices  required  by  this  Agreement  shall  be  written  and delivered by
certified  U.  S.  Mail,  Federal  Express (or other national or local overnight
delivery  service),  telegram or by facsimile transmission to the parties at the
addresses  set forth on the signature page of this Agreement, or at such address
as  the  parties  may  subsequently  designate in writing.  Such notice shall be
effective  when  received  by  the  addressee.

E.  No  amendments or changes to this Agreement shall be valid unless in writing
and  signed  by  both  parties.

F.  The parties recognize that any release of information to the public or other
third parties with respect to this matter may cause great detriment to either or
both  of  the  parties  and thus agree to keep this Agreement confidential until
mutual agreement of the parties is reached in writing to disclose information to
the  public.

G.  All  claims, disputes or controversies arising out of, or in relation to the
interpretation, application or enforcement of this Agreement shall be decided by
resort  of  either  party  to  arbitration  in  accordance with the Rules of the
American  Arbitration  Association.  The  arbitration  shall be held in Houston,
Texas.  The  proceedings  will be held by a panel of three (3) arbitrators, with
each  party  having  the  right  to select one (1) arbitrator and with the third
arbitrator  being  selected by the two (2) arbitrators appointed by the parties.
The  decision  of the panel shall be final, binding and enforceable in any court
of  competent  jurisdiction.  The  panel,  in  its  sole  discretion,  may award
attorney's  fees  to  the  prevailing  party.

<PAGE>
H.  This  Agreement  may  be  executed  in  one or more counterparts, each which
constitutes  an  original  execution  and, in the aggregate, constitute a single
document.

     IN  WITNESS  WHEREOF, the parties hereunto have caused this Agreement to be
executed by their duly authorized representatives on this 21ST (HANDWRITTEN) day
of  JULY  (HANDWRITTEN),  2000.

TRINITY  (TEXAS)  ENERGY  RESOURCES,  INC.

/S/ DENNIS  E.  HEDKE  (HANDWRITTEN)
---------------------------------------------
by  Dennis  E.  Hedke,  Acting  President  &  CEO
11757  Katy  Freeway,  Suite  1430
Houston,  Texas  77079
281-589-7712  (facsimile)

THE  SALUS  TRUST

/S/ MICHAEL  L.  WALLACE  (HANDWRITTEN)
---------------------------------------------------
by  Michael  L.  Wallace,  Trustee
5292  Memorial  Drive,  Suite  E3
Houston,  Texas  77007

<PAGE>

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