AMENDMENT NO. 1 TO
 
SECURITIES PURCHASE AGREEMENT
 
THIS AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT (this “Amendment”), is
entered into by and between TXP CORPORATION, a Nevada corporation (the
“Company”), and YA GLOBAL INVESTMENTS, L.P. (F/K/A CORNELL CAPITAL PARTNERS,
L.P.) (the “Buyer”).
 
WHEREAS:
 
A. The parties hereto previously entered into that certain Securities Purchase
Agreement dated as of March 30, 2007 (the "Agreement").
 
B. The parties to the Agreement now desire to amend certain provisions set forth
in the Agreement as more fully described herein.
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Buyer hereby
agree as follows:
 
1. AMENDMENT OF SECOND “WHEREAS” CLAUSE. The second “Whereas” clause of the
Agreement is hereby amended and replaced in its entirety with the following:
 
“WHEREAS, the parties desire that, upon the terms and subject to the conditions
contained herein, the Company shall issue and sell to the Buyer(s), as provided
herein, and the Buyer(s) shall purchase (i) up to Five Million Dollars
($5,000,000) of secured convertible notes in the form attached hereto as
“Exhibit A” (the “Convertible Notes”), which shall be convertible into shares of
the Company’s common stock, par value $0.001 (the “Common Stock”) (as converted,
the “Conversion Shares”), and (ii) warrants substantially in the form attached
hereto as “Exhibit B” (the “Warrants”), to acquire up to that number of
additional shares of Common Stock set forth opposite such Buyer’s name in column
(5) of the Schedule I (as exercised, the “Warrant Shares”) of which Four Million
Dollars ($4,000,000) shall be funded within five (5) business days following the
date hereof (the “First Closing”) and One Million Dollars ($1,000,000) shall be
funded on or before December 15, 2007 (or one hundred eighty (180) days prior to
the filing of the registration statement (the “Registration Statement”) pursuant
to the Registration Rights Agreement dated March 30, 2007, with the SEC) (the
“Second Closing”) (individually referred to as a “Closing” collectively referred
to as the “Closings”), for a total purchase price of up to Five Million Dollars
($5,000,000), (the “Purchase Price”) in the respective amounts set forth
opposite each Buyer(s) name on Schedule I (the “Subscription Amount”);”
 
2. AMENDMENT OF SECTION 1(b). Section 1(b) of the Agreement is hereby amended
and replaced in its entirety with the following:
 
“(b) Closing Dates. The First Closing of the purchase and sale of the
Convertible Notes and Warrants shall take place at 10:00 a.m. Eastern Standard
Time on the fifth (5th) business day following the date hereof, subject to
notification of satisfaction of the conditions to the First Closing set forth
herein and in Sections 6 and 7 below (or such later date as is mutually agreed
to by the Company and the Buyer(s)) (the “First Closing Date”) and the Second
Closing of the purchase and sale of the Convertible Notes shall take place on or
before December 15, 2007 (or one hundred eighty (180) days prior to the filing
of the registration statement (the “Registration Statement”) pursuant to the
Registration Rights Agreement dated March 30, 2007, with the SEC), subject to
notification of satisfaction of the conditions to the Second Closing set forth
herein and in Sections 6 and 7 below (or such later date as is mutually agreed
to by the Company and the Buyer(s)) (the “Second Closing Date”) (collectively
referred to a the “Closing Dates”). The Closings shall occur on the respective
Closing Dates at the offices of Yorkville Advisors, LLC, 3700 Hudson Street,
Suite 3700, Jersey City, New Jersey 07302 (or such other place as is mutually
agreed to by the Company and the Buyer(s)).”
 
 
 

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3. AMENDMENT OF SECTION 7(b)(iv). Section 7(b)(iv) of the Agreement is hereby
amended and replaced in its entirety with the following:
 
“(iv) The Company certifies that it will file, within one hundred eighty (180)
days of the Second Closing Date, the Registration Statement with the SEC,
materially in compliance with the rules and regulations promulgated by the SEC
for filing thereof.”
 
4. EFFECT ON OTHER TERMS. This Amendment shall be deemed effective as of
December 13, 2007, as if entered into on such date. All other terms set forth in
the Agreement shall remain unchanged and this Amendment and the Agreement shall
be deemed a single integrated agreement for all purposes.

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IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to Securities
Purchase Agreement to be duly executed as of day and year first above written.
 

   
COMPANY:
   
TXP CORPORATION
         
By:   /s/ Michael Shores 
   

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Name: Michael Shores
   
Title: Chief Executive Officer
         
BUYER:
   
YA GLOBAL INVESTMENTS, L.P.
   
By: Yorkville Advisors, LLC
 
 
Its: Investment Manager
         
By:   /s/ Mark A. Angelo
   

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Name: Mark A. Angelo
   
Its: President & Portfolio Manager

 
 
 

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