Document:

THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
      UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH
      ACT.

     

    CONVERTIBLE
      PROMISSORY
      NOTE

     

    
      	$250,000	 	
              June
                26,
                2007

            

    

     

     

    FOR
      VALUE
      RECEIVED, the undersigned, Trulite, Inc., a Delaware corporation (“Debtor”),
      for
      good and valuable consideration, promises to pay to the order of
      ________________(“Lender”),
      at
      ________________________, or at such other place as Lender may designate, the
      principal sum of Two Hundred Fifty Thousand and No/100 Dollars ($250,000),
      in
      lawful currency of the United States of America, together with interest accrued
      thereon (the “Note”).

     

    

     

    1.  Payment.
      Subject
      to the provisions of Section 3 hereof, all accrued but unpaid interest on the
      outstanding principal balance of this Note shall be due and payable on June
      26,
      2008 (the “Maturity
      Date”),
      when
      the outstanding principal balance of this Note and any and all accrued but
      unpaid interest hereon shall be due and payable in full.

     

    2.  Interest
      Rate.
      The
      principal balance of this Note from time to time remaining unpaid prior to
      maturity shall bear interest at the rate of fifteen percent (15.0%) per
      annum.

     

    3.  Optional
      Prepayment.
      Debtor
      may at its sole option prepay all or any part of the principal of this Note,
      together will all accrued but unpaid interest thereon, before the Maturity
      Date
      without penalty or premium.

     

    4.  Conversion.
      (a)
      The
      unpaid principal balance due under this Note, together with any then accrued
      but
      unpaid interest, may at the option of Lender, be converted into unregistered
      shares of Common Stock, $0.0001 par value (“Common Stock,” with the shares of
      Common Stock issuable on conversion of this Note being referred to herein as
      the
“Shares”), of Debtor. The conversion price for such conversion shall be $0.75
      per share (the “Conversion Price”), subject to adjustment as set forth below.
      Notice of intent to exercise (a “Conversion Notice”) such conversion privilege
      may be provided to Debtor at any time after the date of this Note but must
      be
      provided at least five (5) days before the Maturity Date. Such Conversion Notice
      shall be irrevocable and shall be accompanied by the original of this Note
      and a
      completed and executed surrender form (in the form attached hereto). The
      conversion of the principal balance and accrued but unpaid interest on this
      Note
      will be effective on the fifth (5th) day following delivery to Debtor of the
      Conversion Notice.

     

    (b)  In
      the
      event Debtor changes the number of shares of Common Stock issued and outstanding
      as a result of a stock split, reverse stock split, stock dividend or other
      similar transaction, the Conversion Price shall be appropriately adjusted as
      determined in good faith by the Board of Directors of the Debtor.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  In
      the
      case of any reclassification, capital reorganization or change in capital stock
      of the Debtor (other than as a result of a subdivision, combination or stock
      dividend provided for in Section 4(b) above), then, as a condition of such
      reclassification, reorganization, or change, lawful provision shall be made,
      and
      duly executed documents evidencing the same from the Debtor or its successor
      shall be delivered to the Lender, so that Lender shall have the right at any
      time prior to the retirement of this Note to convert the principal balance
      of
      and accrued but unpaid interest on this Note at the Conversion Price into the
      kind and amount of shares of stock or other securities or property Lender would
      have received had it held Shares immediately
      prior to such reclassification, reorganization or change. In any such case
      appropriate provisions shall be made with respect to the rights and interest
      of
      the Lender so that the provisions hereof shall thereafter be applicable with
      respect to any shares of stock or other securities or property deliverable
      upon
      exercise hereof, and appropriate adjustments shall be made to the Conversion
      payable hereunder, provided the aggregate Conversion Price shall remain the
      same.

     

    (d)  In
      the
      event the Debtor shall after the date of this Note issue Additional Shares
      of
      Common Stock (hereafter defined), without consideration or for a consideration
      per share less than the Conversion Price in effect immediately prior to such
      issuance, then, and in each such case, the Conversion Price shall be reduced,
      concurrently with such issuance, to the consideration per share received by
      the
      Debtor in the issuance triggering the adjustment set forth in this Section
      4(d).

     

    (i)  For
      purposes of this Section 4(d), the following definitions shall
      apply:

     

    (1)  “Option”
      shall mean rights, options or warrants to subscribe for, purchase or otherwise
      acquire Common Stock or Convertible Securities (as defined).

     

    (2)  “Convertible
      Securities” shall mean any evidences of indebtedness, shares or other securities
      directly or indirectly convertible into or exchangeable for Common
      Stock.

     

    (3)  “Additional
      Shares of Common Stock” shall mean all shares of Common Stock issued (or,
      pursuant to subparagraph (iii) below, deemed to be issued) by the Debtor after
      the date of this Note, other than shares of Common Stock issued or issuable
      (or
      pursuant to subparagraph (iii) below, deemed to be issued):

     

    (A)  upon
      the
      exercise or conversion of Options or Convertible Securities issued and
      outstanding as of the date of this Note; and

     

    (B)  to
      directors of, employees of, and consultants of the Debtor pursuant to restricted
      stock purchase agreements, stock option plans, or similar arrangements if
      approved by the Board of Directors of the Debtor in its reasonable
      discretion;

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (ii)  If
      the
      Debtor at any time or from time to time after the date of this Note shall issue
      any Options or Convertible Securities, then the maximum number of shares of
      Common Stock (as set forth in the instrument relating thereto without regard
      to
      any provision contained therein for a subsequent adjustment of such number)
      issuable upon the exercise of such Options or, in the case of Convertible
      Securities and Options therefor, the conversion or exchange of such Convertible
      Securities, shall be deemed to be Additional Shares of Common Stock issued
      as of
      the time of such issuance, provided
      that
      in any
      such case in which shares are deemed to be issued:

     

    (1)  No
      further adjustment in the Conversion Price shall be made upon the subsequent
      issuance of Convertible Securities or shares of Common Stock upon the exercise
      of such Options or conversion or exchange of such Convertible
      Securities;

     

    (2)  If
      such
      Options or Convertible Securities by their terms provide, with the passage
      of
      time or otherwise, for any change in the consideration payable to the Debtor,
      or
      decrease in the number of shares of Common Stock issuable, upon the exercise,
      conversion or exchange thereof, the Conversion Price and any subsequent
      adjustments thereon shall be recomputed to reflect such change(s) as if such
      change(s) had been in effect as of the original issue thereof (or the occurrence
      of the record date with respect thereto); and

     

    (3)  No
      readjustment pursuant to clause (2) above shall have the effect of increasing
      the Conversion Price to an amount which exceeds the Conversion Price that would
      have resulted from any other issuances of Additional Shares of Common Stock
      and
      any other adjustments provided for herein between the original adjustment date
      and such readjustment date.

     

    (iii)  For
      purposes of this Section 4(d), the consideration received by the Debtor for
      the
      issuance of any Additional Shares of Common Stock shall be computed as
      follows:

     

    (1)  Such
      consideration shall:

     

    (A)  insofar
      as it consists of cash, be computed at the aggregate of cash received by the
      Debtor in connection with such issuance;

     

    (B)  insofar
      as it consists of property other than cash, be computed at the fair market
      value
      thereof at the time of such issuance, as is reasonably determined by the Board
      of Directors of the Debtor; and

     

    (C)  in
      the
      event Additional Shares of Common Stock are issued together with other shares
      of
      securities or other assets of the Debtor for consideration which covers both,
      be
      the proportion of such consideration so received, computed as provided in
      clauses (1) and (2) above, as is reasonably determined by the Board of Directors
      of the Debtor.

     

    (2)  The
      consideration per share received by the Debtor for Additional Shares of Common
      Stock deemed to have been issued pursuant to subparagraph (iii) above, relating
      to Options and Convertible Securities, shall be determined by
      dividing:

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (A)  the
      total
      amount, if any, received or receivable by the Debtor as consideration for the
      issuance of such Options or Convertible Securities, plus the minimum aggregate
      amount of additional consideration (as set forth in the instruments relating
      thereto, without regard to any provision contained therein for a subsequent
      adjustment of such consideration) payable to the Debtor upon the exercise of
      such Options or the conversion or exchange of such Convertible Securities,
      or in
      the case of Options for Convertible Securities, the exercise of such Options
      for
      Convertible Securities and the conversion or exchange of such Convertible
      Securities, by

     

    (B)  the
      maximum number of shares of Common Stock (as set forth in the instruments
      relating thereto, without regard to any provision contained therein for a
      subsequent adjustment of such number) issuable upon the exercise of such Options
      or the conversion or exchange of such Convertible Securities.

     

    (e)  When
      any
      adjustment is required to be made in the number or kind of Shares issuable
      on
      conversion of this Note, or in the Conversion Price, the Debtor shall promptly
      notify Lender of such event and of the number of Shares or other securities
      or
      property thereafter issuable upon conversion of this Note.

     

    5.  Events
      of Default and Remedies.
      At the
      option of Lender the entire principal balance of this Note shall at once become
      due and payable, without further notice or demand, upon the occurrence at any
      time of any of the following events of default (“Events
      of Default”):

     

    (a)  failure
      of Debtor to make any payment of interest or principal when due hereunder;
      or

     

    (b)  Debtor
      shall (i) voluntarily seek, consent to, acquiesce in the benefit or benefits
      of
      any Debtor Relief Law (as hereinafter defined) or (ii) become party to (or
      be
      made the subject of) any proceeding provided by any Debtor Relief Law, other
      than as a creditor or claimant, that could suspend or otherwise adversely affect
      the rights of Lender granted hereunder (unless in the event such proceeding
      is
      involuntary, the petition instituting the same is dismissed within sixty (60)
      days of the filing of same). As used herein, the term “Debtor
      Relief Law”
means
      the Bankruptcy Code of the United States of America and all other applicable
      liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
      receivership, insolvency, reorgani-zation or similar debtor relief laws from
      time to time in effect affecting the rights of creditors generally.

     

    In
      the
      event any one or more of the Events of Default specified above shall have
      happened, the holder of this Note may (y) enforce its rights, if any, under
      this
      Note and (z) proceed to protect and enforce its rights either by suit in equity
      and by action at law, or by other appropriate proceedings, whether for the
      specific performance of any covenant or agreement contained in this Note or
      in
      aid of the exercise of any power or right granted by this Note, or to enforce
      any other legal and equitable right of the holder of this Note.

     

    6.  Cumulative
      Rights.
      No
      delay on the part of the holder of this Note in the exercise of any power or
      right under this Note shall operate as a waiver thereof, nor shall a single
      or
      partial exercise of any other power or right.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    7.  Notices.
      Any
      notice or demand given hereunder by the holder hereof shall be deemed to have
      been given and received (i) when actually received by Debtor, if delivered
      in
      person or by facsimile transmission, or (ii) if mailed, on the earlier of the
      date actually received or (whether received or not) three (3) Business Days
      (as
      hereinafter defined) after a letter containing such notice, certified or
      registered, with postage prepaid, addressed to Debtor, is deposited in the
      United States mail. Debtor’s mailing address for purposes of this Section 6 is
      1401 McKinney Street, Suite 900 Houston, Texas 77010, or such other address
      as
      Debtor shall advise the holder hereof by certified or registered letter by
      this
      same procedure. “Business
      Day” means
      every day which is not a Saturday, Sunday or legal holiday.

     

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

     

    9.  Usury
      Savings Clause.
      Any
      provision in this Note or in any other document executed in connection herewith,
      or in any other agreement or commitment, whether written or oral, express or
      implied, to the contrary notwithstanding, Lender shall not in any event be
      entitled to receive or collect, nor shall or may amounts received hereunder
      be
      credited, so that Lender shall be paid, as interest, a sum greater than the
      maximum rate of interest permitted by applicable law. If any construction of
      this Note, or any and all other papers, agreements or commitments, indicates
      a
      different right given to Lender to ask for, demand or receive any larger sum
      as
      interest, such is a mistake in calculation or wording, which this clause shall
      override and control; it being the intention of the parties that this Note
      and
      all other instruments relating to this Note shall in all things comply with
      applicable law, and proper adjustment shall automatically be made accordingly.
      In the event Lender ever receives, collects or applies as interest, any sum
      in
      excess of the maximum rate of interest permitted by applicable law, such excess
      amount shall be applied to the reduction of the unpaid principal balance of
      this
      Note in the inverse order of maturity, and if this Note is paid in full, any
      remaining excess shall be paid to Debtor. In determining whether or not the
      interest paid or payable, under any specific contingency, exceeds the maximum
      rate of interest permitted by applicable law, Debtor and Lender shall, to the
      maximum extent permitted under applicable law (a) characterize any nonprincipal
      payment as an expense, fee or premium rather than as interest, (b) exclude
      voluntary prepayments and the effects thereof, and (c) “spread” the total amount
      of interest throughout the entire term of this Note so that the interest rate
      is
      uniform throughout the entire term hereof.

     

    10.  Modification.
      None of
      the terms or provisions of this Note may be excluded, modified or amended except
      by a written instrument duly executed on behalf of Debtor and Lender expressly
      referring to this Note and setting forth the provision so excluded, modified,
      or
      amended.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    11.  Headings.
      The
      headings of the sections of this Note are inserted for convenience only and
      shall not be deemed to constitute a part hereof.

     

    12.  Collection
      Costs.
      Debtor
      agrees to pay the fees and expenses, including fees and expenses of an attorney,
      of Lender in connection with any action for collection, payment or compromise
      of
      this note.

     

    13.  Counterparts.
      This
      Note may be executed in one or more counterparts, all of which shall constitute
      one and the same agreement. Signature pages to any counterpart may be detached,
      executed and attached to a single counterpart with the same force and effect
      as
      if all parties had executed a single signature page hereof.

     

    [Signature
      Page Follows]

     

     

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    EXECUTED
      to be effective as of the day and year first above written.

     

    
      	 	 	 
	 	 	
              DEBTOR:

              

              Trulite,
                Inc.

              (a
                Delaware corporation)

              
 

              By:
                __________________________________

              Title:
                _________________________________ 

            
	 	 	 

    

     

    
 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    SURRENDER
      FORM

     

    (To
      be
      executed upon conversion by Lender of Convertible Note)

     

    

     

    The
      undersigned hereby acknowledges the conversion of the attached Convertible
      Note
      into Common Stock in accordance with the terms thereof. The undersigned requests
      that a certificate for such Common Stock be registered in the name of
      ______________________ whose address is
      ___________________________________________________ and that such certificate
      be
      delivered to______________ whose address is
      ____________________________.

     

    Executed
      as of the _____ day of __________________.

     

    

    

    
      	 	 	
              Signature:
                ____________________________________

              

              Printed
                Name:
                __________________________________

            

    

    

     

    

    
      
         

      

      
        8THIS
      WARRANT AND THE COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
      LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR
      HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT
      TO THE SECURITIES UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW OR
      PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
      SUCH REGISTRATION IS NOT REQUIRED.

    

    
      	
              Date
                of Issuance

            	 	
              Void
                after

            
	
              June
                26, 2007

            	 	
              June
                26, 2010

            

    

    

    TRULITE,
      INC.

    

    WARRANT
      TO PURCHASE SHARES OF COMMON STOCK

     

    This
      Warrant is issued to _________________ (the “Holder”)
      by
      Trulite, Inc., a Delaware corporation (the “Company”).

    

    1. Purchase
      of Shares.

     

    (a) Number
      of Shares.
      Subject
      to the terms and conditions set forth herein, the Holder is entitled, upon
      surrender of this Warrant at the principal office of the Company (or at such
      other place as the Company shall notify the Holder in writing), to purchase
      from
      the Company up to Three Hundred Thirty Three Thousand Three Hundred Thirty
      Three
      (333,333) fully paid and nonassessable shares of the Company’s common stock, par
      value $0.0001 per share (the “Common
      Stock”).

     

    (b) Exercise
      Price.
      The
      exercise price for the shares of Common Stock issuable pursuant to this Section
      1 (the “Shares”)
      shall
      be One Dollar ($1.00) per share (the “Exercise
      Price”).
      The
      Shares and the Exercise Price shall be subject to adjustment pursuant to
      Section 7 hereof.

     

    2. Exercise
      Period.
      This
      Warrant shall be exercisable, in whole or in part, during the term commencing
      on
      the date hereof and ending at 5:00 p.m. CDT on June 26, 2010 (the “Exercise
      Period”);
      provided, however, that this Warrant shall no longer be exercisable and become
      null and void upon the consummation of any “Termination
      Event”
defined
      as (a) the closing of the sale, transfer or other disposition of all or
      substantially all of the Company’s assets, (b) the consummation of the
      merger or consolidation of the Company with or into another entity (except
      a
      merger or consolidation in which the holders of Company’ Common Stock
      immediately prior to such merger or consolidation continue to hold at least
      50%
      of the equity interest of the Company or the surviving or acquiring entity),
      (c) the closing of the transfer (whether by merger, consolidation or
      otherwise), in one transaction or a series of related transactions, to a person
      or group of affiliated persons (other than an underwriter of the Company’s
      securities), of the Company’s securities if, after such closing, such person or
      group of affiliated persons would hold more than 50% of the outstanding Common
      Stock of the Company, or (e) a liquidation, dissolution or winding up of the
      Company; provided, however, that a transaction shall not constitute a
      Termination Event if its sole purpose is to change the state of the Company’s
      organization or to create a holding company that will be owned in substantially
      the same proportions by the persons who held the Company’s securities
      immediately prior to such transaction. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3. Method
      of Exercise.

     

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

     

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

     

    (ii) the
      payment of the Exercise Price, which shall be payable in cash, or by certified
      or official bank check, or, if the fair market value of one share of Common
      Stock is greater than the Exercise Price (at the date of the calculation set
      forth below), in lieu of exercising this Warrant for cash, the Holder may elect
      to receive a number of Shares computed using the following formula:

     

    Where

     

    X
      =
      Y(A-B)/A

     

    X
      = the
      number of Shares to be issued to the Holder

     

    Y
      = the
      number of Shares issuable on exercise of the Warrant, or if only a portion
      of
      the Warrant is being exercised, the portion of the Warrant being exercised
      (at
      the date of such calculation)

     

    A
      = the
      fair market value of one Share (at the date of such calculation)

     

    B
      = the
      Exercise Price (as adjusted to the date of calculation)

     

    If
      the
      Shares are publicly traded at the time of the foregoing calculation (whether
      quoted on the over-the-counter bulletin board, or traded in an over-the-counter
      market or on an exchange) the fair market value per Share shall be the average
      closing price for the Common Stock for the ten (10) trading days immediately
      preceding the date of the calculation. Otherwise, the Board of Directors of
      the
      Company shall determine the fair market value of a Share in its reasonable
      judgment.

     

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

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

     

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

     

    (d) Investment
      Experience.
      The
      Holder is an investor in securities of companies in the development stage and
      acknowledges that it is able to fend for itself, can bear the economic risk
      of
      its investment, and has such knowledge and experience in financial or business
      matters that it is capable of evaluating the merits and risks of the investment
      in the Securities and recognizes that it may realize a loss of its entire
      investment in the Securities. If other than an individual, the Holder also
      represents it has not been organized solely for the purpose of acquiring the
      Securities.

     

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

     

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

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

    6. Covenants
      of the Company.

     

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

     

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

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    (c) Upon
      Issuance of Additional Shares of Common Stock. 

     

    (i) In
      the
      event the Company shall after the date of this Warrant issue Additional Shares
      of Common Stock (hereafter defined), without consideration or for a
      consideration per share less than the Exercise Price in effect immediately
      prior
      to such issuance, then, and in each such case, the Exercise Price shall be
      reduced, concurrently with such issuance, to the consideration per share
      received by the Company in the issuance triggering the adjustment set forth
      in
      this Section 7(c).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

     

    (ii) For
      purposes of this Section 7(c),
      the
      following definitions shall apply:

     

    (1) “Option”
      shall mean rights, options or warrants to subscribe for, purchase or otherwise
      acquire Common Stock or Convertible Securities (as defined).

     

    (2) “Convertible
      Securities” shall mean any evidences of indebtedness, shares or other securities
      directly or indirectly convertible into or exchangeable for Common
      Stock.

     

    (3) “Additional
      Shares of Common Stock” shall mean all shares of Common Stock issued (or,
      pursuant to subparagraph (iii) below, deemed to be issued) by the Company after
      the date of this Warrant, other than shares of Common Stock issued or issuable
      (or pursuant to subparagraph (iii) below, deemed to be issued):

     

    (A) upon
      the
      exercise or conversion of Options or Convertible Securities issued and
      outstanding as of the date of this Warrant;

     

    (B) to
      directors of, employees of, and consultants of the Company pursuant to
      restricted stock purchase agreements, stock option plans, or similar
      arrangements if approved by the Board of Directors of the Company in its
      reasonable discretion;

     

    (iii) If
      the
      Company at any time or from time to time after the date of this Warrant shall
      issue any Options or Convertible Securities, then the maximum number of shares
      of Common Stock (as set forth in the instrument relating thereto without regard
      to any provision contained therein for a subsequent adjustment of such number)
      issuable upon the exercise of such Options or, in the case of Convertible
      Securities and Options therefor, the conversion or exchange of such Convertible
      Securities, shall be deemed to be Additional Shares of Common Stock issued
      as of
      the time of such issuance, provided
      that
      in any
      such case in which shares are deemed to be issued:

     

    (1) No
      further adjustment in the Conversion Price shall be made upon the subsequent
      issuance of Convertible Securities or shares of Common Stock upon the exercise
      of such Options or conversion or exchange of such Convertible
      Securities;

     

    (2) If
      such
      Options or Convertible Securities by their terms provide, with the passage
      of
      time or otherwise, for any change in the consideration payable to the Company,
      or decrease in the number of shares of Common Stock issuable, upon the exercise,
      conversion or exchange thereof, the Exercise Price and any subsequent
      adjustments thereon shall be recomputed to reflect such change(s) as if such
      change(s) had been in effect as of the original issue thereof (or the occurrence
      of the record date with respect thereto); and

     

    (3) No
      readjustment pursuant to clause (2) above shall have the effect of increasing
      the Conversion Price to an amount which exceeds the Conversion Price that would
      have resulted from any other issuances of Additional Shares of Common Stock
      and
      any other adjustments provided for herein between the original adjustment date
      and such readjustment date.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (iv) For
      purposes of this Section 7(c),
      the
      consideration received by the Company for the issuance of any Additional Shares
      of Common Stock shall be computed as follows:

     

    (1) Such
      consideration shall:

     

    (A) insofar
      as it consists of cash, be computed at the aggregate of cash received by the
      Company in connection with such issuance;

     

    (B) insofar
      as it consists of property other than cash, be computed at the fair market
      value
      thereof at the time of such issuance, as is reasonably determined by the Board
      of Directors of the Company; and

     

    (C) in
      the
      event Additional Shares of Common Stock are issued together with other shares
      of
      securities or other assets of the Company for consideration which covers both,
      be the proportion of such consideration so received, computed as provided in
      clauses (1) and (2) above, as is reasonably determined by the Board of Directors
      of the Company.

     

    (2) The
      consideration per share received by the Company for Additional Shares of Common
      Stock deemed to have been issued pursuant to subparagraph (iii) above, relating
      to Options and Convertible Securities, shall be determined by
      dividing:

     

    (A) the
      total
      amount, if any, received or receivable by the Company as consideration for
      the
      issuance of such Options or Convertible Securities, plus the minimum aggregate
      amount of additional consideration (as set forth in the instruments relating
      thereto, without regard to any provision contained therein for a subsequent
      adjustment of such consideration) payable to the Company upon the exercise
      of
      such Options or the conversion or exchange of such Convertible Securities,
      or in
      the case of Options for Convertible Securities, the exercise of such Options
      for
      Convertible Securities and the conversion or exchange of such Convertible
      Securities, by

     

    (B) the
      maximum number of shares of Common Stock (as set forth in the instruments
      relating thereto, without regard to any provision contained therein for a
      subsequent adjustment of such number) issuable upon the exercise of such Options
      or the conversion or exchange of such Convertible Securities.

     

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

     

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

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    
      	
              If
                to the Company:

            
	
            
	
              Trulite,
                Inc.

            
	
              1401
                McKinney Street, Suite 900

            
	
              Houston,
                Texas 77010

            
	
              Attention:
                President

            
	
            
	
              If
                to Holder:

            
	
            
	
              ___________________

            
	
              ___________________

            
	
              ___________________

            

    

    

     

    12. Finder’s
      Fee.
      The
      Holder agrees to indemnify and to hold harmless the Company from any liability
      for any commission or compensation in the nature of a finder’s fee (and the
      costs and expenses of defending against such liability or asserted liability)
      for which the Holder or any of its officers, partners, employees or
      representatives is responsible. The Company agrees to indemnify and hold
      harmless the Holder from any liability for any commission or compensation in
      the
      nature of a finder’s fee (and the costs and expenses of defending against such
      liability or asserted liability) for which the Company or any of its officers,
      employees or representatives is responsible.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

     

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

    

    
      	
               

            	
              COMPANY:

            
	
            	
            	
            
	
               

            	
              Trulite,
                Inc.

            
	
               

            	
              (a
                Delaware corporation)

            
	
            	
            	
            
	
            	
            	
            
	
               

            	
              By:

            	
               

            
	
               

            	
              Title:

            	
               

            
	
            	
            	
            
	
            	
            	
            
	 	
              Address:

            	
              1401
                McKinney, Suite 900

            
	 	 	
              Houston,
                Texas 77010

            

    

     

    
 

    ACKNOWLEDGED
      AND AGREED:

     

    

    HOLDER:
      

     

    
 

    
      
        

      

    

    [holder]

    

    
      
        
        

      

      
        Signature
          Page

        
          

        

      

      
        
        

      

    

    

    

    

    NOTICE
      OF EXERCISE

     

    Trulite,
      Inc.

    Attention:
      Corporate Secretary

     

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

    _____________
      shares of Common Stock pursuant to the terms of the attached Warrant, and
[(a)
      tenders herewith payment in cash of the Exercise Price of such Shares in full,
      or (b) elects to make a “cashless” exercise in accordance with the provisions of
      Section 3(a) of the attached warrant],
      together with all applicable transfer taxes, if any.

     

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

     

     

    
      	 	HOLDER:
	 	
            
	 	
            
	 	
            
	
              Date:___________________

            	
              By:_______________________________________

            
	
               

            	
            
	 	
            
	 	
              Address:_____________________________________

            
	 	
              ________________________________

            
	
               

            	
              ________________________________

            
	 	 
	
              Name
                in which shares should be registered:

            	
            
	
            	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    ASSIGNMENT
      FORM

     

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

     

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

     

    
      	
              Name:
                

            	
            
	
               

            	
              (Please
                Print)
 
	
              Address:
                

            	
               

            
	
               

            	
              (Please
                Print)
 
	
              Dated:

            	
              _________________________

            
	 	
            
	 	
            
	
              Holder’s

            	
            
	
              Signature:

            	_______________________________________
	
            	 
	
            	 
	
              Holder’s

            	 
	
              Address:

            	_______________________________________

    

     

     

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

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