Document:

SUBORDINATION
      AGREEMENT

    

    THIS
      SUBORDINATION AGREEMENT
      (this
“Agreement”),
      dated
      as of June 6, 2006 (the “Effective
      Date”),
      is
      made by and between Alan
      E.
      Morelli (“Senior
      Creditor”)
      and
Herbert
      Langsam Revocable Trust
      (together with its successors and assigns, “Subordinated
      Creditor”).
      

    

    RECITALS

    

    A. Patient
      Safety Technologies, Inc., a Delaware corporation (“Borrower”),
      and
      Senior Creditor propose to enter into that certain Secured Convertible Note
      and
      Warrant Purchase Agreement dated as of June 6, 2006 (as the same may be amended,
      restated, or otherwise modified from time to time, the “Senior
      Creditor Agreement”),
      pursuant to which Borrower will execute and deliver a Secured Convertible
      Promissory Note in the amount of $1,100,000 (the “Senior
      Note”).
      The
      funds advanced to or owed by Borrower under the Senior Note shall be referred
      to
      collectively herein as the “Senior
      Loans.”
To
      secure the Senior Loans, Borrower will grant to Senior Creditor a security
      interest in certain of Borrower’s real and personal property assets. Capitalized
      terms used herein without definition have the meanings assigned thereto in
      the
      Senior Creditor Agreement.

     

    B. Borrower
      has entered that certain Secured Promissory Note dated May 1, 2006 in the
      principal amount of $500,000 (the “Subordinated
      Note”)
      in
      favor of Subordinated Creditor and that certain Security Agreement dated as
      of
      such date (the “Subordinated
      Security Agreement”)
      by and
      between Subordinated Creditor and Borrower.

    

    C. Subordinated
      Creditor and Senior Creditor desire to establish and agree upon their respective
      rights, priorities and interests governing their respective relationships with
      Borrower and any collateral for the loans granted pursuant to the Subordinated
      Loan Documents and the Senior Loan Documents at all times on and after the
      Effective Date.

    

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the foregoing, Senior Creditor and Subordinated
      Creditor hereby agree as follows:

    

    1. DEFINITIONS

    

    As
      used
      herein, the following terms shall have the following meanings:

    

    “Senior
      Debt”
means
      any and the indebtedness and obligations evidenced by the Senior Note
      (including, without limitation, $1,100,000 of principal, premium (if any),
      interest (including any capitalized interest), fees, charges, expenses, costs,
      professional fees and expenses, and reimbursement obligations, but excluding
      any
      increase in the principal amount advanced thereunder) at any time or from time
      to time owing from Borrower to Senior Creditor under the Senior Loan Documents
      or otherwise, including but not limited to such amounts as may accrue or be
      incurred before or after default or workout or the commencement of any
      liquidation, dissolution, bankruptcy, receivership, or reorganization case
      by or
      against Borrower, whether or not allowed by the court in any such
      proceeding.

    

    
      
         

      

      
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    “Senior
      Loan Documents”
means
      the Senior Note, the Senior Creditor Agreement, the Collateral Documents and
      any
      other security agreement, promissory note, UCC financing statement, or any
      other
      agreement, instrument or document executed by Borrower pursuant to or in
      connection with the Senior Debt or the Senior Creditor Agreement, as any of
      the
      foregoing may from time to time be amended, modified, supplemented, extended,
      renewed, restated or replaced.

    

    “Subordinated
      Debt”
means
      any and all indebtedness and obligations (including, without limitation,
      principal, premium (if any), interest, fees, charges, expenses, costs,
      professional fees and expenses, and reimbursement obligations) at any time
      or
      from time to time owing from Borrower to Subordinated Creditor under the
      Subordinated Loan Documents or otherwise, including but not limited to such
      amounts as may accrue or be incurred before or after default or workout or
      the
      commencement of any liquidation, dissolution, bankruptcy, receivership, or
      reorganization case by or against Borrower.

    

    “Subordinated
      Loan Documents”
means
      the Subordinated Note, the Subordinated Security Agreement and any promissory
      note, loan or credit or similar agreement, any financing statement, or any
      other
      agreement, instrument or document executed by Borrower in favor of Subordinated
      Creditor, as the same may from time to time be amended, modified, supplemented,
      extended, renewed, restated or replaced.

    

    Unless
      otherwise specified, all references in this Agreement to a “Section” shall refer
      to the corresponding Section in or to this Agreement. Other capitalized terms
      used herein and not otherwise defined herein shall have the meaning given such
      terms in the Uniform Commercial Code as in effect in the State of California,
      as
      in effect from time to time (the “UCC”).

    

    2. SUBORDINATION

    

    (a) On
      the
      terms and conditions set forth below, Subordinated Creditor’s right to payment
      and performance of the Subordinated Debt and any and all liens and security
      interests securing the Subordinated Debt are hereby subordinated to Senior
      Creditor’s right to full and indefeasible payment and performance of the Senior
      Debt and all liens and security interests securing the Senior Debt. Subject
      to
      and except as set forth in Section 3, Subordinated Creditor shall not ask,
      demand, sue for, take or receive from Borrower, by setoff or in any other
      manner, the whole or any part of any monies which may now or hereafter be owing
      by Borrower to Subordinated Creditor, or be owing by any other person to
      Subordinated Creditor under a guaranty or similar instrument, on account of
      the
      Subordinated Debt, nor any collateral security for any of the foregoing,
      including, without limitation, any personal property collateral granted to
      Subordinated Creditor pursuant to the Subordinated Loan Documents, unless and
      until the Senior Debt shall have been fully paid in cash or converted to common
      stock of Borrower pursuant to the terms of the Senior Note.

     

    
      
         

      

      
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    (b) Subordinated
      Creditor shall not create, maintain or perfect any security interest in or
      lien
      on any property of Borrower (other than any security interests or liens that
      may
      exist and be perfected on the date hereof in favor of Subordinated Creditor
      in
      certain of Borrower’s personal property under and as described in the
      Subordinated Loan Documents, which liens and security interests shall be, and
      hereby are agreed to be, junior and subordinated to the security interests
      and
      liens securing the Senior Debt). If, notwithstanding the foregoing, any lien
      shall be created or shall arise in favor of Subordinated Creditor, whether
      by
      operation of law or otherwise, in or on any property of Borrower or any of
      its
      subsidiaries or affiliates to secure all or any portion of the Subordinated
      Debt, then the liens granted by Borrower in any such property in favor of Senior
      Creditor to secure the Senior Debt shall in all respects be first and senior
      liens, superior to such liens that may be created or arise, and superior to
      any
      security interest or lien that may exist on the date hereof, in either case
      which liens are in favor of Subordinated Creditor securing the Subordinated
      Debt
      notwithstanding (i) the date, manner or order of creation, attachment or
      perfection of any such security interests or liens, (ii) the provisions of
      the UCC or any other applicable statutes or court decisions that would provide
      otherwise in the absence of this agreement, (iii) the provisions of any contract
      between Subordinated Creditor, on the one hand, and Borrower or any subsidiary
      or affiliate thereof, on the other, and (iv) whether Subordinated Creditor
      or any agent or bailee thereof holds possession of any part any such collateral.
      In the event Subordinated Creditor shall have or obtain possession of any such
      property or shall, in contravention of this agreement, foreclose upon or enforce
      its security interest or lien upon any such property, whether by self-help,
      judicial action or otherwise, then (i) all such property shall be immediately
      delivered to Senior Creditor or, if not deliverable, all cash or non-cash
      proceeds and profits of such property shall be paid over to Senior Creditor,
      without any deduction or offset, and (ii) until duly deliver or paid to Senior
      Creditor, any such property or cash or non-cash proceeds and profits of such
      property shall be held in trust for the benefit of Senior Creditor, in the
      case
      of each of clause (i) and clause (ii), unless and until all of the Senior Debt
      shall have been paid in cash in full or converted to common stock of Borrower
      pursuant to the terms of the Senior Note.

    

    (c) The
      subordination contained in this Agreement is intended to define the rights
      and
      duties of Subordinated Creditor and Senior Creditor; it is not intended that
      any
      third party (including Borrower or any of its subsidiaries or affiliates, any
      bankruptcy trustee, receiver, or debtor-in-possession) shall benefit from it.
      If
      the effect of the subordination contained in this Agreement would be to give
      any
      third party a priority status to which that party would not otherwise be
      entitled, then that provision shall, to the extent necessary to avoid that
      priority, be given no effect and the rights and priorities of Senior Creditor
      and Subordinated Creditor shall be determined in accordance with applicable
      law
      and this Agreement.

    

    3. ASSIGNMENT
      OF SUBORDINATED DEBT

    

    Subordinated
      Creditor hereby covenants to Senior Creditor that prior to the termination
      of
      this Agreement in accordance with Section 8, the entire Subordinated Debt
      created in favor of Subordinated Creditor shall continue to be owing only to
      Subordinated Creditor, and any collateral security therefor (including, without
      limitation, any collateral security granted to Subordinated Creditor pursuant
      to
      the Subordinated Loan Documents) shall continue to be held solely for the
      benefit of Subordinated Creditor, unless assigned pursuant to an assignment
      in
      which the assignee agrees in writing to be bound by all of the terms and
      provisions of this Agreement. Any promissory note issued pursuant to the
      Subordinated Loan Documents shall be legended to expressly state that it is
      subject to this Agreement.

     

    
      
         

      

      
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    4. SENIOR
      CREDITOR’S PRIORITY

    

    In
      the
      event of any distribution, division, or application, partial or complete,
      voluntary or involuntary, by operation of law or otherwise, of all or any part
      of the property of Borrower or any of its subsidiaries or affiliates or the
      proceeds thereof to the creditors of Borrower or any of its subsidiaries or
      affiliates, or the readjustment of the Senior Debt and the Subordinated Debt,
      whether by reason of liquidation, bankruptcy, arrangement, receivership,
      assignment for the benefit of creditors or any other action or proceeding
      involving the readjustment of all or any part of the Senior Debt or the
      Subordinated Debt, or the application of the property of Borrower or any of
      its
      subsidiaries or affiliates to the payment or liquidation thereof, or upon the
      dissolution, liquidation, reorganization, or other winding up of Borrower’s or
      any of its subsidiaries’ or affiliates’ business, or upon the sale of all or any
      substantial part of Borrower’s or any of its subsidiaries’ or affiliates’
property (any of the foregoing being hereinafter referred to as an “Insolvency
      Event”),
      then,
      and in any such event, Senior Creditor shall be entitled to receive the
      indefeasible payment in full of the Senior Debt before Subordinated Creditor
      shall be entitled to receive any payment on account of the Subordinated Debt,
      and to that end and in furtherance thereof:

    

    (a) All
      payments and distributions of any kind or character, whether in cash, property,
      or securities, in respect of the Subordinated Debt to which Subordinated
      Creditor would be entitled if the Subordinated Debt were not subordinated
      pursuant to this Agreement, shall be paid to Senior Creditor and applied in
      payment of the Senior Debt;

    

    (b) Subordinated
      Creditor shall file a claim or claims, on the form required in such proceedings,
      on or before thirty (30) days prior to the last date such claims or proofs
      of
      claim may be filed pursuant to law or the order of any court exercising
      jurisdiction over such proceeding; and

    

    (c) Notwithstanding
      the foregoing, if any payment or distribution of any kind or character, whether
      in cash, properties or securities, shall be received by Subordinated Creditor
      on
      account of the Subordinated Debt before all of the Senior Debt has been paid,
      then such payment or distribution shall be received by Subordinated Creditor
      in
      trust for and shall be immediately paid over to Senior Creditor for application
      to the payments of amounts due on the Senior Debt until the Senior Debt shall
      have been paid in cash in full.

    

    This
      Agreement is a subordination agreement within the meaning of Section 510(a)
      of
      the United States Bankruptcy Code and shall continue in full force and effect
      after the occurrence of any Insolvency Event, including, without limitation,
      after the filing of any petition by or against Borrower under the United States
      Bankruptcy Code and all converted or succeeding cases in respect thereof. All
      references herein to Borrower shall be deemed to apply to Borrower as
      debtor-in-possession and to any trustee in any insolvency proceeding relating
      to
      such obligor. 

    
       

      
         

      

      
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    5. GRANT
      OF AUTHORITY

    

    In
      the
      event of the occurrence of an Insolvency Event, and to enable Senior Creditor
      to
      enforce its rights hereunder in any of the aforesaid actions or proceedings,
      Senior Creditor is hereby irrevocably authorized and empowered, in Senior
      Creditor’s discretion (in its own name or in the name of Subordinated Creditor
      or otherwise), but shall have no obligation (a) to demand, sue for, collect
      and receive every payment or distribution referred to in Section 4, and give
      acquittance therefor and (b) to file claims and proofs of claim
      if Subordinated Creditor has failed to file claims or proofs of claim on or
      before thirty (30) days prior to the last date such claims or proofs of
      claim may be filed pursuant to law or the order of any court exercising
      jurisdiction over such proceeding, and (c) to take such other action
      (including, without limitation, enforcing any lien securing payment of the
      Subordinated Debt) as it may deem necessary or advisable for the exercise or
      enforcement of any of the rights or interests of Senior Creditor hereunder.
      Subordinated Creditor shall duly and promptly take such action as Senior
      Creditor may reasonably request to execute and deliver to Senior Creditor such
      authorizations, endorsements, assignments, or other instruments as Senior
      Creditor may reasonably request in order to enable Senior Creditor to enforce
      any and all claims with respect to, and any liens securing payment of, the
      Subordinated Debt as such enforcement is contemplated herein.

    

    To
      the
      extent that payments or distributions on account of the Subordinated Debt are
      made in property or securities other than cash, Subordinated Creditor authorizes
      Senior Creditor to sell or dispose of such property or securities on such terms
      as are commercially reasonable in the situation in question. Following full
      and
      indefeasible payment in cash of the Senior Debt and the termination of all
      commitments related thereto, Senior Creditor shall remit to the Subordinated
      Creditor (with all necessary endorsements), to the extent of Subordinated
      Creditor’s interest therein, all payments and distributions of cash, property,
      or securities paid to and held by Senior Creditor in excess of the allowed
      amount of the Senior Debt.

    

    6. PAYMENTS
      RECEIVED BY SUBORDINATED CREDITOR

    

    Should
      any payment, distribution, or security be received by the Subordinated Creditor
      upon or with respect to the Subordinated Debt in contravention of this Agreement
      prior to termination of this Agreement in accordance with Section 8,
      Subordinated Creditor shall receive and hold the same in trust for the benefit
      of Senior Creditor and shall immediately deliver the same to Senior Creditor
      in
      precisely the form received (except for the endorsement or assignment of
      Subordinated Creditor where necessary) for application to the Senior Debt,
      and,
      until so delivered, the same shall be held in trust by such Subordinated
      Creditor for the benefit of Senior Creditor.

    

    7. FURTHER
      ASSURANCES; COOPERATION

    

    Subordinated
      Creditor agrees to cooperate with Senior Creditor and to take all actions that
      Senior Creditor may reasonably require to enable Senior Creditor to realize
      the
      full benefits of this Agreement.

    
       

      
         

      

      
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    8. TERMINATION
      OR AMENDMENT OF AGREEMENT; NO AMENDMENTS

    

    This
      Agreement shall be effective upon its execution by each of Senior Creditor
      and
      Subordinated Creditor. After the Effective Date, this Agreement shall remain
      in
      effect and shall not be revoked or amended by Subordinated Creditor, except
      with
      the prior written consent of the Senior Creditor. Senior Creditor and
      Subordinated Creditor agree that no amendment hereto shall be binding upon
      Borrower unless Borrower shall have received notice of such amendment. Subject
      to Section 12, this Agreement shall terminate upon the earlier to occur of
      the
      following: (a) the date on which the Senior Debt shall have been paid in
      cash in full or converted to common stock of Borrower pursuant to the terms
      of
      the Senior Note or (b) the date on which the Subordinated Debt shall have
      been either converted into common stock of Borrower or otherwise paid in cash
      in
      full. Subordinated Creditor shall not amend, supplement or otherwise modify
      any
      of the Subordinated Loan Documents without the written consent of Senior
      Creditor.

    

    9. ADDITIONAL
      AGREEMENTS FOR SENIOR CREDITOR 

    

    Senior
      Creditor may administer and manage its credit and other relationships with
      Borrower in its own best interest, without notice to or consent of Subordinated
      Creditor. At any time and from time to time, Senior Creditor may enter into
      any
      amendment or agreement with Borrower as Senior Creditor may deem proper,
      extending the time of payment of or renewing or otherwise altering the terms
      of
      all or any of the obligations constituting Senior Debt or affecting the
      collateral security for, supporting or underlying any or all of the Senior
      Debt,
      and may exchange, sell, release, surrender or otherwise deal with any such
      collateral without in any way thereby impairing or affecting this Agreement,
      and
      all such additional agreements and amendments shall be Senior Loan Documents
      evidencing the Senior Debt.

    

    10. SUBROGATION

    

    If
      cash
      or other property otherwise payable or deliverable to the Subordinated Creditor
      or on account of the Subordinated Debt shall have been applied pursuant to
      this
      Agreement to the payment of the Senior Debt, and if the Senior Debt shall have
      been paid in cash in full, then Subordinated Creditor shall be subrogated to
      any
      rights of Senior Creditor to receive further payments or distributions
      applicable to the Senior Debt until the Subordinated Debt shall have been fully
      paid. No such payments or distributions received by the Subordinated Creditor
      by
      reason of such subrogation shall, as between Borrower and its creditors other
      than Senior Creditor, on the one hand, and Subordinated Creditor, on the other
      hand, be deemed to be a payment by Borrower on account of the Subordinated
      Debt
      owed to Subordinated Creditor.

    

    11. SUBORDINATED
      CREDITOR’S WAIVERS AND COVENANTS

    

    (a) Without
      limiting the generality of any other waiver made by Subordinated Creditor in
      this Agreement, Subordinated Creditor hereby expressly waives (i) reliance
      by
      Senior Creditor upon the subordination and other agreements herein provided,
      (ii) any and all rights to require
      Senior Creditor to marshal any property or assets of Borrower or to resort
      to
      any of the property or assets of Borrower in any particular order or manner,
      (iv) any and all rights to bring any action to contest the validity, legality,
      enforceability, perfection, priority or avoidability of any of the obligations
      under any or all of the Senior Loan Documents or any of the security interest
      and/or liens of the Senior Creditor in or on any of the collateral for the
      Senior Debt and
      (v)
      any claim that Subordinated Creditor may now or hereafter have against Senior
      Creditor arising out of any and all actions that Senior Creditor, in good faith,
      takes or omits to take (A) with respect to the creation, perfection or
      continuation of liens in or on any collateral security for the Senior Debt,
      (B)
      with respect to the foreclosure upon, sale, release, or depreciation of, or
      failure to realize upon, any of the collateral security for the Senior Debt,
      (C)
      with respect to the collection of any claim for all or any part of the Senior
      Debt from any account debtor, guarantor or any other third party and (D) with
      respect to the valuation, use, protection or release of any collateral security
      for the Senior Debt.

    

    
      
         

      

      
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    (b) Without
      limiting the generality of any other covenant or agreement made by Subordinated
      Creditor in this Agreement, Subordinated Creditor hereby covenants and agrees
      that (i) Senior Creditor has not made any warranties or representations with
      respect to the due execution, legality, validity, completeness or enforceability
      of the Senior Creditor Agreement or any of the other Senior Loan Documents,
      or
      the collectibility of the Senior Debt; and (ii) Subordinated Creditor will
      not interfere with or in any manner oppose a disposition of any collateral
      security for the Senior Debt by Senior Creditor.

    

    12. DEFAULTS
      ON SUBORDINATED NOTE

    

    If
      a
      default occurs under the Subordinated Note or, until such time as the Senior
      Debt is paid in full in cash or converted to common stock of Borrower pursuant
      to the terms of the Senior Note:
      (a) the
      Subordinated Creditor shall not take any action in connection with the
      foreclosure of the Subordinated Note, and
      (b) the
      Subordinated Creditor shall not exercise or enforce, by subrogation or
      otherwise, any lien, estate, right or other interest that the Subordinated
      Creditor may have or obtain pursuant to the exercise of any right or remedy
      under the Subordinated Note (including, without limitation, its right to cure
      defaults of Borrower or pay or satisfy liens which Borrower is otherwise
      required to pay or satisfy) which is or may be prior in right or in lien to
      the
      rights under the Senior Loan Documents. The foregoing provisions are solely
      for
      the benefit of the Senior Creditor, and Borrower shall not be entitled to rely
      thereon or be entitled to the benefit thereof. Borrower shall promptly give
      Senior Creditor written notice of any default under the Subordinated
      Note.

    

    13. REINSTATEMENT
      OF SENIOR DEBT

    

    To
      the
      extent that Senior Creditor receives payments on or in respect of the Senior
      Debt or proceeds of any collateral security for the Senior Debt, which payments
      or proceeds are subsequently invalidated, declared to be fraudulent or
      preferential, set aside or required to be repaid to a trustee, receiver or
      any
      other party under any bankruptcy law, state or federal law, common law, or
      equitable cause, then, to the extent of such payments or proceeds invalidated,
      declared to be fraudulent or preferential, set aside or required to be repaid,
      the Senior Debt, or part thereof, intended to be satisfied shall be revived
      and
      continue in full force and effect as if such payments or proceeds had not been
      received by Senior Creditor.

    
       

      
         

      

      
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    14. NO
      WAIVERS

    

    Senior
      Creditor shall not be prejudiced in its rights under this Agreement by any
      act
      or failure to act of Borrower or Subordinated Creditor or any noncompliance
      of
      Borrower or Subordinated Creditor with any agreement or obligation, regardless
      of any knowledge thereof which Senior Creditor may have, or with which Senior
      Creditor may be charged; no action permitted hereunder that has been taken
      by
      Senior Creditor shall in any way affect or impair the rights or remedies of
      Senior Creditor in the exercise of any other right or remedy or shall operate
      as
      a waiver thereof; no single or partial exercise by Senior Creditor of any right
      or remedy shall preclude any other or further exercise thereof; and no
      modification or waiver of any of the provisions of this Agreement shall be
      binding upon Senior Creditor, in each case except as expressly set forth in
      a
      writing duly signed and delivered by Senior Creditor.

    

    15. INFORMATION
      CONCERNING BORROWER; CREDIT ADMINISTRATION

    

    Subordinated
      Creditor hereby assumes responsibility for keeping itself informed of the
      financial condition of Borrower, its subsidiaries and affiliates, any and all
      endorsers and any and all guarantors of the Senior Debt and of all other
      circumstances bearing upon the risk of nonpayment of the Senior Debt or the
      Subordinated Debt that diligent inquiry would reveal, and Subordinated Creditor
      hereby agrees that Senior Creditor shall not have any duty to advise the
      Subordinated Creditor of information known to Senior Creditor regarding such
      condition.

    

    16. NOTICES

    

    Except
      as
      otherwise provided herein, all notices and service of process required,
      contemplated, or permitted hereunder or with respect to the subject matter
      hereof shall be in writing, and shall be deemed to have been validly served,
      given or delivered upon the earlier of: (i) the first business day after
      transmission by facsimile or hand delivery or deposit with an overnight express
      service or overnight mail delivery service; or (ii) the third business day
      after
      deposit in the United States mails, with proper first class postage prepaid,
      and
      shall be addressed to the party to be notified as follows:

    

    If
      to Senior Creditor:

    

    Alan
      E.
      Morelli

    225
      Mantau Road

    Pacific
      Palisades, CA 90272

    Facsimile:
      (310) 231-5520

    

    If
      to Subordinated Creditor:

    

    Herbert
      Langsam Revocable Trust

    5300
      Wisteria Drive

    Oklahoma
      City, OK 73142

    Attention:
      Herbert Langsam

    Facsimile:
      (405) 947-0651

    

    
      
         

      

      
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    17. SEVERABILITY

    

    Wherever
      possible, each provision of this Agreement shall be interpreted in such manner
      as to be effective and valid under applicable law, but if any provision of
      this
      Agreement shall be prohibited by or invalid under applicable law, such provision
      shall be ineffective to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provision or the remaining provisions of
      this
      Agreement.

    

    18. GOVERNING
      LAW 

    

    This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of California without regard to principles of conflict of laws that
      would cause the application of laws of any other jurisdiction.

    

    19. ASSIGNMENT

    

    This
      Agreement shall be binding upon Subordinated Creditor and its respective
      successors and assigns, and shall inure to the benefit of and be enforceable
      by
      Senior Creditor and its successors and assigns.

    

    20. MUTUAL
      WAIVER OF JURY TRIAL

    

    EACH
      OF
      SUBORDINATED CREDITOR AND SENIOR CREDITOR SPECIFICALLY WAIVES ITS RIGHT TO
      TRIAL
      BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY
      CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”)
      ASSERTED BY BORROWER, SUBORDINATED CREDITOR, OR SENIOR CREDITOR AGAINST THE
      OTHER PARTY OR PARTIES TO THIS AGREEMENT. This waiver extends to all such
      claims, including, without limitation, claims which involve persons or entities
      other than Borrower, the Subordinated Creditor, and Senior Creditor; claims
      which arise out of or are in any way connected to the relationships between
      or
      among Borrower, the Subordinated Creditor, and Senior Creditor; and any claims
      for damages, breach of contract, specific performance, or any equitable or
      legal
      relief of any kind.

    

    21. COUNTERPARTS

    

    This
      Agreement and any amendments, waivers, consents or supplements hereto may be
      executed in any number of counterparts, and by different parties hereto in
      separate counterparts, each of which when so executed and delivered shall be
      deemed an original, but all of which counterparts together shall constitute
      but
      one and the same instrument.

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF,
      this
      Agreement has been executed as of the date first above written.

    

    
      	
              SENIOR
                CREDITOR:

               

               

               

               

              Signature:    
                _________________________

              Print
                Name:  ALAN
                E. MORELLI

              Title:             
                _________________________

            	
              SUBORDINATED
                CREDITOR:

               

              HERBERT
                LANGSAM IRREVOCABLE TRUST

               

               

              Signature:   
                /s/
                Herbert
                Langsam                         
                

              Print
                Name: Herbert
                Langsam                               

              Title:            Trustee                                                 
                

            

    

    

    The
      undersigned hereby accepts and consents to the foregoing Agreement and agrees
      to
      be bound by all of the provisions thereof and to recognize all priorities and
      other rights granted by Subordinated Creditor thereby or thereunder to Senior
      Creditor and to pay Senior Creditor in accordance therewith.

    

    BORROWER:

     

    
      PATIENT
        SAFETY TECHNOLOGIES, INC.

       

      By:
        /s/
        Lynne
        Silverstein                       

      Name:Lynne
        Silverstein                        

      Title: President                                         
        

      
        
           

        

        
          10Dated:
      June 5, 2006

     

    NEITHER
      THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE
      HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS.

     

    
      	
              No.
                CCP-4

            	
              $_________

            

    

    YTXP
      CORPORATION

     

    Secured
      Convertible Debenture

     

     

    Due
      June 5, 2009

     

    This
      Secured Convertible Debenture (the “Debenture”)
      is
      issued by YTXP
      CORPORATION (f/k/a Stock Market Solutions, Inc.), a
      Nevada
      corporation (the “Obligor”),
      to
CORNELL
      CAPITAL PARTNERS, LP
      (the
“Holder”),
      pursuant to that certain Securities Purchase Agreement (the “Securities
      Purchase Agreement”)
      of
      even date herewith. 

     

    FOR
      VALUE RECEIVED,
      the
      Obligor hereby promises to pay to the Holder or its successors and assigns
      the
      principal sum of ________________ Dollars ($__________) together with accrued
      but unpaid interest on or before June 5, 2009 (the “Maturity
      Date”)
      in
      accordance with the following terms:

     

    Interest.
      Interest shall accrue on the outstanding principal balance hereof at an annual
      rate equal to ten percent (10%). Interest shall be calculated on the basis
      of a
      365-day year and the actual number of days elapsed, to the extent permitted
      by
      applicable law. Interest hereunder will be paid to the Holder or its assignee
      (as defined in Section
      5)
      in
      whose name this Debenture is registered on the records of the Obligor regarding
      registration and transfers of Debentures (the “Debenture
      Register”).

     

    Right
      of Redemption.
      The
      Obligor at its option shall have the right, with three (3) business days advance
      written notice (the “Redemption
      Notice”),
      to
      redeem a portion or all amounts outstanding under this Debenture prior to the
      Maturity Date provided that the Closing Bid Price of the of the Obligor’s Common
      Stock, as reported by Bloomberg, LP, is less than the Fixed Conversion Price
      at
      the time of the Redemption Notice. The Obligor shall pay an amount equal to
      the
      principal amount being redeemed plus a redemption premium (“Redemption
      Premium”)
      equal
      to twenty percent (20%) of the principal amount being redeemed, and accrued
      interest, (collectively referred to as the “Redemption
      Amount”).
      The
      Obligor shall deliver to the Holder the Redemption Amount on the third
      (3rd)
      business day after the Redemption Notice. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the foregoing in the event that the Obligor has elected to redeem a portion
      of
      the outstanding principal amount and accrued interest under this Debenture
      the
      Holder shall be permitted to convert all or any portion of this Debenture during
      such three business day period. 

     

    Security
      Agreements.
      This
      Debenture is secured by a Security Agreement (the “Security
      Agreement”)
      of
      even date herewith between the Obligor and the Holder and that certain Security
      Agreement dated August 25, 2004 by and between Texas Prototypes, Inc.
      (“TXP”)
      and
      the Obligor, and as amended and restated on the date hereof (the “Subsidiary
      Security Agreement”).

     

    Consent
      of Holder to Sell Capital Stock or Grant Security Interests.
      So
      long
      as any of the principal amount or interest on this Debenture remains unpaid
      and
      unconverted, the Obligor shall not, without the prior consent of the Holder,
      (i) issue or sell any shares of Common Stock or preferred stock without
      consideration or for consideration per share less than the Closing Bid Price
      of
      the Common Stock determined immediately prior to its issuance, (ii) issue
      or sell any preferred stock, warrant, option, right, contract, call, or other
      security or instrument granting the holder thereof the right to acquire Common
      Stock without consideration or for consideration per share less than the Closing
      Bid Price of the Common Stock determined immediately prior to its issuance,
      (iii)
      enter into any security instrument granting the holder a security interest
      in
      any of the assets of the Obligor, or
      (iv)
      file any
      registration statements on Form S-8, other than in connection with the
      registration of shares of Common Stock issued under a bona fide Employee Stock
      Option Plan, which excludes consultants, up to a maximum of 10,000,000 shares
      of
      Common Stock.

     

    Rights
      of First Refusal. 
      For a period if eighteen (18) months after the Closing Date, if the Obligor
      intends to raise additional capital by the issuance or sale of capital stock
      of
      the Obligor, including without limitation shares of any class of Common Stock,
      any class of preferred stock, options, warrants or any other securities
      convertible or exercisable into shares of Common Stock (whether the offering
      is
      conducted by the Obligor, underwriter, placement agent or any third party)
      the
      Obligor shall be obligated to offer to the Holder such issuance or sale of
      capital stock, by providing in writing the principal amount of capital it
      intends to raise and outline of the material terms of such capital raise, prior
      to the offering such issuance or sale of capital stock  to any third
      parties including, but not limited to, current or former officers or directors,
      current or former shareholders and/or investors of the obligor, underwriters,
      brokers, agents or other third parties.  The Holder shall have ten (10)
      business days from receipt of such notice of the sale or issuance of capital
      stock to accept or reject all or a portion of such capital raising
      offer.

     

    This
      Debenture is subject to the following additional provisions:

     

    Section
      1. This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be made for such registration of transfer
      or
      exchange.

     

    Section
      2. Events
      of Default.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a) An
      “Event
      of Default”,
      wherever used herein, means any one of the following events (whatever the reason
      and whether it shall be voluntary or involuntary or effected by operation of
      law
      or pursuant to any judgment, decree or order of any court, or any order, rule
      or
      regulation of any administrative or governmental body):

     

    (i) Any
      default in the payment of the principal of, interest on or other charges in
      respect of this Debenture, any convertible debenture issued by the Obligor
      to
      the Holder, or any convertible debenture previously issued by TXP to the Holder,
      of which the obligations of TXP have been assumed by the Obligor pursuant to
      the
      Assignment and Assumption Agreement dated April 28, 2006 by and between Obligor
      and TXP and consented to by the Holder, free of any claim of subordination,
      as
      and when the same shall become due and payable (whether on a Conversion Date
      or
      the Maturity Date or by acceleration or otherwise);

     

    (ii) The
      Obligor shall fail to observe or perform any other covenant, agreement or
      warranty contained in, or otherwise commit any breach or default of any
      provision of this Debenture (except as may be covered by Section
      2(a)(i)
      hereof)
      or any Transaction Document (as defined in Section
      5)
      which
      is not cured with in the time prescribed;

     

    (iii) The
      Obligor or any subsidiary of the Obligor shall commence, or there shall be
      commenced against the Obligor or any subsidiary of the Obligor under any
      applicable bankruptcy or insolvency laws as now or hereafter in effect or any
      successor thereto, or the Obligor or any subsidiary of the Obligor commences
      any
      other proceeding under any reorganization, arrangement, adjustment of debt,
      relief of debtors, dissolution, insolvency or liquidation or similar law of
      any
      jurisdiction whether now or hereafter in effect relating to the Obligor or
      any
      subsidiary of the Obligor or there is commenced against the Obligor or any
      subsidiary of the Obligor any such bankruptcy, insolvency or other proceeding
      which remains undismissed for a period of 61 days; or the Obligor or any
      subsidiary of the Obligor is adjudicated insolvent or bankrupt; or any order
      of
      relief or other order approving any such case or proceeding is entered; or
      the
      Obligor or any subsidiary of the Obligor suffers any appointment of any
      custodian, private or court appointed receiver or the like for it or any
      substantial part of its property which continues undischarged or unstayed for
      a
      period of sixty one (61) days; or the Obligor or any subsidiary of the Obligor
      makes a general assignment for the benefit of creditors; or the Obligor or
      any
      subsidiary of the Obligor shall fail to pay, or shall state that it is unable
      to
      pay, or shall be unable to pay, its debts generally as they become due; or
      the
      Obligor or any subsidiary of the Obligor shall call a meeting of its creditors
      with a view to arranging a composition, adjustment or restructuring of its
      debts; or the Obligor or any subsidiary of the Obligor shall by any act or
      failure to act expressly indicate its consent to, approval of or acquiescence
      in
      any of the foregoing; or any corporate or other action is taken by the Obligor
      or any subsidiary of the Obligor for the purpose of effecting any of the
      foregoing;

     

    (iv) The
      Obligor or any subsidiary of the Obligor shall default in any of its obligations
      under any other debenture or any mortgage, credit agreement or other facility,
      indenture agreement, factoring agreement or other instrument under which there
      may be issued, or by which there may be secured or evidenced any indebtedness
      for borrowed money or money due under any long term leasing or factoring
      arrangement of the Obligor or any subsidiary of the Obligor in an amount
      exceeding $100,000, whether such indebtedness now exists or shall hereafter
      be
      created and such default shall result in such indebtedness becoming or being
      declared due and payable prior to the date on which it would otherwise become
      due and payable;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (v) The
      Common Stock shall cease to be quoted for trading or listing for trading on
      either the Nasdaq OTC Bulletin Board (“OTC”),
      or if
      then listed on Nasdaq Capital Market, New York Stock Exchange, American Stock
      Exchange or the Nasdaq National Market (each, a “Subsequent
      Market”)
      shall
      cease to be quoted for trading or listing on such Subsequent Market and shall
      not again be quoted or listed for trading thereon within five (5) Trading Days
      of such delisting;

     

    (vi) The
      Obligor or any subsidiary of the Obligor shall be a party to any Change of
      Control Transaction (as defined in Section
      5);
      

     

    (vii) The
      Obligor shall fail to file the Underlying Shares Registration Statement (as
      defined in Section
      5)
      with
      the Commission (as defined in Section
      5),
      or the
      Underlying Shares Registration Statement shall not have been declared effective
      by the Commission, in each case within the time periods set forth in the
      Investor Registration Rights Agreement (“Registration
      Rights Agreement”)
      of
      even date herewith between the Obligor and the Holder;

     

    (viii) If
      the
      effectiveness of the Underlying Shares Registration Statement lapses for any
      reason or the Holder shall not be permitted to resell the shares of Common
      Stock
      underlying this Debenture under the Underlying Shares Registration Statement,
      in
      either case, for more than five (5) consecutive Trading Days or an aggregate
      of
      eight Trading Days (which need not be consecutive Trading Days);

     

    (ix) The
      Obligor shall fail for any reason to deliver Common Stock certificates to a
      Holder prior to the fifth (5th)
      Trading
      Day after a Conversion Date or the Obligor shall provide notice to the Holder,
      including by way of public announcement, at any time, of its intention not
      to
      comply with requests for conversions of this Debenture in accordance with the
      terms hereof; 

     

    (x)
      The
      Obligor shall fail for any reason to deliver the payment in cash pursuant to
      a
      Buy-In (as defined herein) within three (3) days after notice is claimed
      delivered hereunder; 

     

    (b) During
      the time that any portion of this Debenture is outstanding, if any Event of
      Default has occurred and shall continue for a period of ten (10) days after
      a
      notice of such default has been delivered by the Holder to the Obligor (the
      “Notice
      Period”),
      the
      full principal amount of this Debenture, together with interest and other
      amounts owing in respect thereof, to the date of acceleration shall become
      at
      the Holder's election, immediately due and payable in cash, provided
      however,
      the
      Holder may request (but shall have no obligation to request) payment of such
      amounts in Common Stock of the Obligor. In addition to any other remedies,
      the
      Holder shall have the right (but not the obligation) to convert this Debenture
      at any time after (x) an Event of Default or (y) the Maturity Date at the
      Conversion Price then in-effect. The Holder need not provide and the Obligor
      hereby waives any presentment, demand, protest or other notice of any kind,
      and
      the Holder may immediately and without expiration of any grace period (other
      than the Notice
      Period)
      enforce
      any and all of its rights and remedies hereunder and all other remedies
      available to it under applicable law. Such declaration may be rescinded and
      annulled by Holder at any time prior to payment hereunder. No such rescission
      or
      annulment shall affect any subsequent Event of Default or impair any right
      consequent thereon. Upon an Event of Default, notwithstanding any other
      provision of this Debenture or any Transaction Document, the Holder shall have
      no obligation to comply with or adhere to any limitations, if any, on the
      conversion of this Debenture or the sale of the Underlying Shares. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Section
      3. Conversion.

     

    (a) Conversion
      at Option of Holder.

     

    (i) This
      Debenture shall be convertible into shares of Common Stock at the option of
      the
      Holder, in whole or in part at any time and from time to time, after the
      Original Issue Date (as defined in Section
      5)
      (subject to the limitations on conversion set forth in Section
      3(b)
      hereof).
      The number of shares of Common Stock issuable upon a conversion hereunder equals
      the quotient obtained by dividing (x) the outstanding amount of this Debenture
      to be converted by (y) the Conversion Price (as defined in Section
      3(c)(i)).
      The
      Obligor shall deliver Common Stock certificates to the Holder prior to the
      Fifth
      (5th)
      Trading
      Day after a Conversion Date.

     

    (ii) Notwithstanding
      anything to the contrary contained herein, if on any Conversion Date: (1) the
      number of shares of Common Stock at the time authorized, unissued and unreserved
      for all purposes, or held as treasury stock, is insufficient to pay principal
      and interest hereunder in shares of Common Stock; (2) the Common Stock is not
      listed or quoted for trading on the OTC or on a Subsequent Market; (3) the
      Obligor has failed to timely satisfy its conversion; or (4) the issuance of
      such
      shares of Common Stock would result in a violation of Section
      3(b),
      then,
      at the option of the Holder, the Obligor, in lieu of delivering shares of Common
      Stock pursuant to Section
      3(a)(i),
      shall
      deliver, within three (3) Trading Days of each applicable Conversion Date,
      an
      amount in cash equal to the product of the outstanding principal amount to
      be
      converted plus any interest due therein divided by the Conversion Price, chosen
      by the Holder, and multiplied by the highest closing price of the stock from
      date of the conversion notice till the date that such cash payment is
      made.

     

    Further,
      if the Obligor shall not have delivered any cash due in respect of conversion
      of
      this Debenture or as payment of interest thereon by the fifth (5th)
      Trading
      Day after the Conversion Date, the Holder may, by notice to the Obligor, require
      the Obligor to issue shares of Common Stock pursuant to Section
      3(c),
      except
      that for such purpose the Conversion Price applicable thereto shall be the
      lesser of the Conversion Price on the Conversion Date and the Conversion Price
      on the date of such Holder demand. Any such shares will be subject to the
      provisions of this Section.

     

    (iii) The
      Holder shall effect conversions by delivering to the Obligor a completed notice
      in the form attached hereto as Exhibit A (a “Conversion
      Notice”).
      The
      date on which a Conversion Notice is delivered is the “Conversion
      Date.”
Unless
      the Holder is converting the entire principal amount outstanding under this
      Debenture, the Holder is not required to physically surrender this Debenture
      to
      the Obligor in order to effect conversions. Conversions hereunder shall have
      the
      effect of lowering the outstanding principal amount of this Debenture plus
      all
      accrued and unpaid interest thereon in an amount equal to the applicable
      conversion. The Holder and the Obligor shall maintain records showing the
      principal amount converted and the date of such conversions. In the event of
      any
      dispute or discrepancy, the records of the Holder shall be controlling and
      determinative in the absence of manifest error.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (b) Certain
      Conversion Restrictions.

     

    (i) A
      Holder
      may not convert this Debenture or receive shares of Common Stock as payment
      of
      interest hereunder to the extent such conversion or receipt of such interest
      payment would result in the Holder, together with any affiliate thereof,
      beneficially owning (as determined in accordance with Section 13(d) of the
      Exchange Act and the rules promulgated thereunder) in excess of 4.99% of the
      then issued and outstanding shares of Common Stock, including shares issuable
      upon conversion of, and payment of interest on, this Debenture held by such
      Holder after application of this Section. Since the Holder will not be obligated
      to report to the Obligor the number of shares of Common Stock it may hold at
      the
      time of a conversion hereunder, unless the conversion at issue would result
      in
      the issuance of shares of Common Stock in excess of 4.99% of the then
      outstanding shares of Common Stock without regard to any other shares which
      may
      be beneficially owned by the Holder or an affiliate thereof, the Holder shall
      have the authority and obligation to determine whether the restriction contained
      in this Section will limit any particular conversion hereunder and to the extent
      that the Holder determines that the limitation contained in this Section
      applies, the determination of which portion of the principal amount of this
      Debenture is convertible shall be the responsibility and obligation of the
      Holder. If the Holder has delivered a Conversion Notice for a principal amount
      of this Debenture that, without regard to any other shares that the Holder
      or
      its affiliates may beneficially own, would result in the issuance in excess
      of
      the permitted amount hereunder, the Obligor shall notify the Holder of this
      fact
      and shall honor the conversion for the maximum principal amount permitted to
      be
      converted on such Conversion Date in accordance with the periods described
      in
Section
      3(a)(i)
      and, at
      the option of the Holder, either retain any principal amount tendered for
      conversion in excess of the permitted amount hereunder for future conversions
      or
      return such excess principal amount to the Holder. The provisions of this
      Section may be waived by a Holder (but only as to itself and not to any other
      Holder) upon not less than 65 days prior notice to the Obligor. Other Holders
      shall be unaffected by any such waiver. 

     

    (ii)
      The
      Holder shall not convert in excess of One Hundred Fifty Thousand Dollars
      ($150,000) of principal amount of this Debenture at the Market Conversion Price
      in any thirty (30) day period. Notwithstanding the forgoing, this conversion
      restriction shall not apply upon the occurrence of an Event of Default or if
      waived in writing by the Company. 

     

    (c) Conversion
      Price and Adjustments to Conversion Price.

     

    (i) The
      conversion price in effect on any Conversion Date shall be, at the sole option
      of the Holder, equal to the lesser of: (a) $0.50 (the “Fixed
      Conversion Price”)
      or (b)
      ninety five percent (95%) of the lowest Volume Weighted Average Price of
      the Common Stock during the thirty (30) trading days immediately preceding
      the
      Conversion Date as quoted by Bloomberg, LP (the “Market
      Conversion Price”).
      The
      Fixed Conversion Price and the Market Conversion Price are collectively referred
      to as the “Conversion
      Price.”
The
      Conversion Price may be adjusted pursuant to the other terms of this Debenture.
      

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (ii) If
      the
      Obligor, at any time while this Debenture is outstanding, shall (a) pay a
      stock dividend or otherwise make a distribution or distributions on shares
      of
      its Common Stock or any other equity or equity equivalent securities payable
      in
      shares of Common Stock, (b) subdivide outstanding shares of Common Stock into
      a
      larger number of shares, (c) combine (including by way of reverse stock split)
      outstanding shares of Common Stock into a smaller number of shares, or (d)
      issue
      by reclassification of shares of the Common Stock any shares of capital stock
      of
      the Obligor, then the Fixed Conversion Price shall be multiplied by a fraction
      of which the numerator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding after
      such
      event. Any adjustment made pursuant to this Section shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution and shall become effective immediately
      after the effective date in the case of a subdivision, combination or
      re-classification.

     

    (iii) If
      the
      Obligor, at any time while this Debenture is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to the Holder)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the Fixed Conversion Price, then the Fixed Conversion Price
      shall be multiplied by a fraction, of which the denominator shall be the number
      of shares of the Common Stock (excluding treasury shares, if any) outstanding
      on
      the date of issuance of such rights or warrants (plus the number of additional
      shares of Common Stock offered for subscription or purchase), and of which
      the
      numerator shall be the number of shares of the Common Stock (excluding treasury
      shares, if any) outstanding on the date of issuance of such rights or warrants,
      plus the number of shares which the aggregate offering price of the total number
      of shares so offered would purchase at the Fixed Conversion Price. Such
      adjustment shall be made whenever such rights or warrants are issued, and shall
      become effective immediately after the record date for the determination of
      stockholders entitled to receive such rights, options or warrants. However,
      upon
      the expiration of any such right, option or warrant to purchase shares of the
      Common Stock the issuance of which resulted in an adjustment in the Fixed
      Conversion Price pursuant to this Section, if any such right, option or warrant
      shall expire and shall not have been exercised, the Fixed Conversion Price
      shall
      immediately upon such expiration be recomputed and effective immediately upon
      such expiration be increased to the price which it would have been (but
      reflecting any other adjustments in the Fixed Conversion Price made pursuant
      to
      the provisions of this Section after the issuance of such rights or warrants)
      had the adjustment of the Fixed Conversion Price made upon the issuance of
      such
      rights, options or warrants been made on the basis of offering for subscription
      or purchase only that number of shares of the Common Stock actually purchased
      upon the exercise of such rights, options or warrants actually
      exercised.

     

    (iv) Other
      than in connection with Excluded Securities, if the Obligor or any subsidiary
      thereof, as applicable, at any time while this Debenture is outstanding, shall
      issue shares of Common Stock or rights, warrants, options or other securities
      or
      debt that are convertible into or exchangeable for shares of Common Stock
      (“Common
      Stock Equivalents”)
      entitling any Person to acquire shares of Common Stock, at a price per share
      less than the Fixed Conversion Price (if the holder of the Common Stock or
      Common Stock Equivalent so issued shall at any time, whether by operation of
      purchase price adjustments, reset provisions, floating conversion, exercise
      or
      exchange prices or otherwise, or due to warrants, options or rights per share
      which is issued in connection with such issuance, be entitled to receive shares
      of Common Stock at a price per share which is less than the Fixed Conversion
      Price, such issuance shall be deemed to have occurred for less than the Fixed
      Conversion Price), then, at the sole option of the Holder, the Fixed Conversion
      Price shall be adjusted to mirror the conversion, exchange or purchase price
      for
      such Common Stock or Common Stock Equivalents (including any reset provisions
      thereof) at issue. Such adjustment shall be made whenever such Common Stock
      or
      Common Stock Equivalents are issued. The Obligor shall notify the Holder in
      writing, no later than one (1) business day following the issuance of any Common
      Stock or Common Stock Equivalent subject to this Section, indicating therein
      the
      applicable issuance price, or of applicable reset price, exchange price,
      conversion price and other pricing terms. No adjustment under this Section
      shall
      be made as a result of issuances and exercises of options to purchase shares
      of
      Common Stock issued for compensatory purposes pursuant to any of the Obligor's
      stock option or stock purchase plans.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (v) If
      the
      Obligor, at any time while this Debenture is outstanding, shall distribute
      to
      all holders of Common Stock (and not to the Holder) evidences of its
      indebtedness or assets or rights or warrants to subscribe for or purchase any
      security, then in each such case the Fixed Conversion Price at which this
      Debenture shall thereafter be convertible shall be determined by multiplying
      the
      Fixed Conversion Price in effect immediately prior to the record date fixed
      for
      determination of stockholders entitled to receive such distribution by a
      fraction of which the denominator shall be the Closing Bid Price determined
      as
      of the record date mentioned above, and of which the numerator shall be such
      Closing Bid Price on such record date less the then fair market value at such
      record date of the portion of such assets or evidence of indebtedness so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

     

    (vi) In
      case
      of any reclassification of the Common Stock or any compulsory share exchange
      pursuant to which the Common Stock is converted into other securities, cash
      or
      property, the Holder shall have the right thereafter to, at its option, (A)
      convert the then outstanding principal amount, together with all accrued but
      unpaid interest and any other amounts then owing hereunder in respect of this
      Debenture into the shares of stock and other securities, cash and property
      receivable upon or deemed to be held by holders of the Common Stock following
      such reclassification or share exchange, and the Holder of this Debenture shall
      be entitled upon such event to receive such amount of securities, cash or
      property as the shares of the Common Stock of the Obligor into which the then
      outstanding principal amount, together with all accrued but unpaid interest
      and
      any other amounts then owing hereunder in respect of this Debenture could have
      been converted immediately prior to such reclassification or share exchange
      would have been entitled, or (B) require the Obligor to prepay the outstanding
      principal amount of this Debenture, plus all interest and other amounts due
      and
      payable thereon. The entire prepayment price shall be paid in cash. This
      provision shall similarly apply to successive reclassifications or share
      exchanges.

     

    (vii) Following
      the increase in the number of authorized shares of Common Stock as set forth
      in
      the Securities Purchase Agreement, the Obligor shall at all times reserve and
      keep available out of its authorized Common Stock the full number of shares
      of
      Common Stock issuable upon conversion of all outstanding amounts under this
      Debenture; and within three (3) Business Days following the receipt by the
      Obligor of a Holder's notice that such minimum number of Underlying Shares
      is
      not so reserved, the Obligor shall promptly reserve a sufficient number of
      shares of Common Stock to comply with such requirement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (viii) All
      calculations under this Section
      3
      shall be
      rounded up to the nearest $0.001 or whole share.

     

    (ix) Whenever
      the Conversion Price is adjusted pursuant to Section
      3
      hereof,
      the Obligor shall promptly mail to the Holder a notice setting forth the
      Conversion Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment.

     

    (x) If
      (A)
      the Obligor shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Obligor shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Obligor shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights; (D) the
      approval of any stockholders of the Obligor shall be required in connection
      with
      any reclassification of the Common Stock, any consolidation or merger to which
      the Obligor is a party, any sale or transfer of all or substantially all of
      the
      assets of the Obligor, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; or (E) the Obligor shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Obligor; then, in each case, the Obligor shall cause to
      be
      filed at each office or agency maintained for the purpose of conversion of
      this
      Debenture, and shall cause to be mailed to the Holder at its last address as
      it
      shall appear upon the stock books of the Obligor, at least twenty (20) calendar
      days prior to the applicable record or effective date hereinafter specified,
      a
      notice stating (x) the date on which a record is to be taken for the purpose
      of
      such dividend, distribution, redemption, rights or warrants, or if a record
      is
      not to be taken, the date as of which the holders of the Common Stock of record
      to be entitled to such dividend, distributions, redemption, rights or warrants
      are to be determined or (y) the date on which such reclassification,
      consolidation, merger, sale, transfer or share exchange is expected to become
      effective or close, and the date as of which it is expected that holders of
      the
      Common Stock of record shall be entitled to exchange their shares of the Common
      Stock for securities, cash or other property deliverable upon such
      reclassification, consolidation, merger, sale, transfer or share exchange,
      provided, that the failure to mail such notice or any defect therein or in
      the
      mailing thereof shall not affect the validity of the corporate action required
      to be specified in such notice. The Holder is entitled to convert this Debenture
      during the 20-day calendar period commencing the date of such notice to the
      effective date of the event triggering such notice.

     

    (xi) In
      case
      of any (1) merger or consolidation of the Obligor or any subsidiary of the
      Obligor with or into another Person, or (2) sale by the Obligor or any
      subsidiary of the Obligor of more than one-half of the assets of the Obligor
      in
      one or a series of related transactions, a Holder shall have the right to (A)
      exercise any rights under Section
      2(b),
      (B)
      convert the aggregate amount of this Debenture then outstanding into the shares
      of stock and other securities, cash and property receivable upon or deemed
      to be
      held by holders of Common Stock following such merger, consolidation or sale,
      and such Holder shall be entitled upon such event or series of related events
      to
      receive such amount of securities, cash and property as the shares of Common
      Stock into which such aggregate principal amount of this Debenture could have
      been converted immediately prior to such merger, consolidation or sales would
      have been entitled, or (C) in the case of a merger or consolidation, require
      the
      surviving entity to issue to the Holder a convertible Debenture with a principal
      amount equal to the aggregate principal amount of this Debenture then held
      by
      such Holder, plus all accrued and unpaid interest and other amounts owing
      thereon, which such newly issued convertible Debenture shall have terms
      identical (including with respect to conversion) to the terms of this Debenture,
      and shall be entitled to all of the rights and privileges of the Holder of
      this
      Debenture set forth herein and the agreements pursuant to which this Debentures
      were issued. In the case of clause (C), the conversion price applicable for
      the
      newly issued shares of convertible preferred stock or convertible Debentures
      shall be based upon the amount of securities, cash and property that each share
      of Common Stock would receive in such transaction and the Conversion Price
      in
      effect immediately prior to the effectiveness or closing date for such
      transaction. The terms of any such merger, sale or consolidation shall include
      such terms so as to continue to give the Holder the right to receive the
      securities, cash and property set forth in this Section upon any conversion
      or
      redemption following such event. This provision shall similarly apply to
      successive such events.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (d) Other
      Provisions.

     

    (i) Following
      the increase in the number of authorized shares of Common Stock as set forth
      in
      the Securities Purchase Agreement, the Obligor covenants that it will at all
      times reserve and keep available out of its authorized and unissued shares
      of
      Common Stock solely for the purpose of issuance upon conversion of this
      Debenture and payment of interest on this Debenture, each as herein provided,
      free from preemptive rights or any other actual contingent purchase rights
      of
      persons other than the Holder, not less than such number of shares of the Common
      Stock as shall (subject to any additional requirements of the Obligor as to
      reservation of such shares set forth in this Debenture) be issuable (taking
      into
      account the adjustments and restrictions of Sections
      2(b) and 3(c))
      upon
      the conversion of the outstanding principal amount of this Debenture and payment
      of interest hereunder. The Obligor covenants that all shares of Common Stock
      that shall be so issuable shall, upon issue, be duly and validly authorized,
      issued and fully paid, nonassessable and, if the Underlying Shares Registration
      Statement has been declared effective under the Securities Act, registered
      for
      public sale in accordance with such Underlying Shares Registration
      Statement.

     

    (ii) Upon
      a
      conversion hereunder the Obligor shall not be required to issue stock
      certificates representing fractions of shares of the Common Stock, but may
      if
      otherwise permitted, make a cash payment in respect of any final fraction of
      a
      share based on the Closing Bid Price at such time. If the Obligor elects not,
      or
      is unable, to make such a cash payment, the Holder shall be entitled to receive,
      in lieu of the final fraction of a share, one whole share of Common
      Stock.

     

    (iii) The
      issuance of certificates for shares of the Common Stock on conversion of this
      Debenture shall be made without charge to the Holder thereof for any documentary
      stamp or similar taxes that may be payable in respect of the issue or delivery
      of such certificate, provided that the Obligor shall not be required to pay
      any
      tax that may be payable in respect of any transfer involved in the issuance
      and
      delivery of any such certificate upon conversion in a name other than that
      of
      the Holder of such Debenture so converted and the Obligor shall not be required
      to issue or deliver such certificates unless or until the person or persons
      requesting the issuance thereof shall have paid to the Obligor the amount of
      such tax or shall have established to the satisfaction of the Obligor that
      such
      tax has been paid.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (iv) Nothing
      herein shall limit a Holder's right to pursue actual damages or declare an
      Event
      of Default pursuant to Section
      2
      herein
      for the Obligor 's failure to deliver certificates representing shares of Common
      Stock upon conversion within the period specified herein and such Holder shall
      have the right to pursue all remedies available to it at law or in equity
      including, without limitation, a decree of specific performance and/or
      injunctive relief, in each case without the need to post a bond or provide
      other
      security. The exercise of any such rights shall not prohibit the Holder from
      seeking to enforce damages pursuant to any other Section hereof or under
      applicable law. 

     

    (v) In
      addition to any other rights available to the Holder, if the Obligor fails
      to
      deliver to the Holder such certificate or certificates pursuant to Section
      3(a)(i) by
      the
      fifth (5th)
      Trading
      Day after the Conversion Date, and if after such fifth (5th)
      Trading
      Day the Holder purchases (in an open market transaction or otherwise) Common
      Stock to deliver in satisfaction of a sale by such Holder of the Underlying
      Shares which the Holder anticipated receiving upon such conversion (a
“Buy-In”),
      then
      the Obligor shall (A) pay in cash to the Holder (in addition to any remedies
      available to or elected by the Holder) the amount by which (x) the Holder's
      total purchase price (including brokerage commissions, if any) for the Common
      Stock so purchased exceeds (y) the product of (1) the aggregate number of shares
      of Common Stock that such Holder anticipated receiving from the conversion
      at
      issue multiplied by (2) the market price of the Common Stock at the time of
      the
      sale giving rise to such purchase obligation and (B) at the option of the
      Holder, either reissue a Debenture in the principal amount equal to the
      principal amount of the attempted conversion or deliver to the Holder the number
      of shares of Common Stock that would have been issued had the Obligor timely
      complied with its delivery requirements under Section
      3(a)(i).
      For
      example, if the Holder purchases Common Stock having a total purchase price
      of
      $11,000 to cover a Buy-In with respect to an attempted conversion of Debentures
      with respect to which the market price of the Underlying Shares on the date
      of
      conversion was a total of $10,000 under clause (A) of the immediately preceding
      sentence, the Obligor shall be required to pay the Holder $1,000. The Holder
      shall provide the Obligor written notice indicating the amounts payable to
      the
      Holder in respect of the Buy-In.

     

    Section
      4. Notices.
       Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms hereof must be in writing and will be deemed to have
      been
      delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
      when
      sent by facsimile (provided confirmation of transmission is mechanically or
      electronically generated and kept on file by the sending party); or (iii) one
      (1) trading day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    
      	
              If
                to the Company, to:

            	
              YTXP
                Corporation

            
	 	
              1299
                Commerce Drive

            
	 	
              Richardson,
                TX 75081

            
	 	
              Attention: Michael
                Shores

            
	 	
              Telephone: (214)
                575-9300

            
	 	
              Facsimile: (214)
                575-9314

            
	 	 
	
              With
                a copy to: 

            	
              Sichenzia
                Ross Friedman Ference LLP

            
	 	
              1065
                Avenue of the Americas

            
	 	
              New
                York, NY 10018

            
	 	
              Attention: Gregory
                Sichenzia, Esq.

            
	 	
              Telephone: (212)
                930-9700

            
	 	
              Facsimile: (212)
                930-9725

            
	 	 
	
              If
                to the Holder:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street, Suite 3700

            
	 	
              Jersey
                City, NJ 07303

            
	 	
              Attention: Mark
                Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	 
	
              With
                a copy to:

            	
              Troy
                Rillo, Esq. 

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 

    

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) business days prior to the effectiveness of such change.
      Written confirmation of receipt (i) given by the recipient of such notice,
      consent, waiver or other communication, (ii) mechanically or electronically
      generated by the sender's facsimile machine containing the time, date, recipient
      facsimile number and an image of the first page of such transmission or (iii)
      provided by a nationally recognized overnight delivery service, shall be
      rebuttable evidence of personal service, receipt by facsimile or receipt from
      a
      nationally recognized overnight delivery service in accordance with clause
      (i),
      (ii) or (iii) above, respectively.

     

    Section
      5. Definitions.
      For the
      purposes hereof, the following terms shall have the following
      meanings:

     

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday in the United States or a day on which banking institutions are
      authorized or required by law or other government action to close.

     

    “Change
      of Control Transaction”
means
      the occurrence of (a) an acquisition after the date hereof by an individual
      or
      legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
      Exchange Act) of effective control (whether through legal or beneficial
      ownership of capital stock of the Obligor, by contract or otherwise) of in
      excess of fifty percent (50%) of the voting securities of the Obligor (except
      that the acquisition of voting securities by the Holder shall not constitute
      a
      Change of Control Transaction for purposes hereof), (b) a replacement at one
      time or over time of more than one-half of the members of the board of directors
      of the Obligor which is not approved by a majority of those individuals who
      are
      members of the board of directors on the date hereof (or by those individuals
      who are serving as members of the board of directors on any date whose
      nomination to the board of directors was approved by a majority of the members
      of the board of directors who are members on the date hereof), (c) the merger,
      consolidation or sale of fifty percent (50%) or more of the assets of the
      Obligor or any subsidiary of the Obligor in one or a series of related
      transactions with or into another entity, or (d) the execution by the Obligor
      of
      an agreement to which the Obligor is a party or by which it is bound, providing
      for any of the events set forth above in (a), (b) or (c).

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    “Closing
      Bid Price”
means
      the price per share in the last reported trade of the Common Stock on the OTC
      or
      on the exchange which the Common Stock is then listed as quoted by Bloomberg,
      LP.

     

    “Commission”
means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
means
      the common stock, par value $0.001, of the Obligor and stock of any other class
      into which such shares may hereafter be changed or reclassified.

     

    “Conversion
      Date”
shall
      mean the date upon which the Holder gives the Obligor notice of their intention
      to effectuate a conversion of this Debenture into shares of the Company’s Common
      Stock as outlined herein.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Excluded
      Securities”
means,
      provided such security is issued at a price which is greater than or equal
      to
      the arithmetic average of the Closing Bid Prices of the Common Stock for the
      ten
      (10) consecutive trading days immediately preceding the date of issuance, any
      of
      the following: (a) any issuance by the Obligor of securities in connection
      with
      a strategic partnership or a joint venture (the primary purpose of which is
      not
      to raise equity capital), (b) any issuance by the Obligor of securities as
      consideration for a merger or consolidation or the acquisition of a business,
      product, license, or other assets of another person or entity (c) options to
      purchase shares of Common Stock, provided (I) such options are issued after
      the
      date hereof to employees of the Obligor within thirty (30) days of such
      employee’s starting his employment with the Obligor, and (II) the exercise price
      of such options is not less than the Closing Bid Price of the Common Stock
      on
      the date of issuance of such option, and (d) shares of Common Stock and/or
      Options issued under a bona fide Employee Stock Option Plan, which includes
      consultants up to a maximum of 10,000,000 shares of Common Stock.

     

    “Original
      Issue Date”
shall
      mean the date of the first issuance of this Debenture regardless of the number
      of transfers and regardless of the number of instruments, which may be issued
      to
      evidence such Debenture.

     

    “Person”
means
      a
      corporation, an association, a partnership, organization, a business, an
      individual, a government or political subdivision thereof or a governmental
      agency.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

     

    “Shareholder
      Approval”
means
      the approval from a majority of the Company’s shareholders to increase its
      authorized Common Stock from 100,000,000 to 300,000,000 shares.

     

    “Trading
      Day”
means
      a
      day on which the shares of Common Stock are quoted on the OTC or quoted or
      traded on such Subsequent Market on which the shares of Common Stock are then
      quoted or listed; provided, that in the event that the shares of Common Stock
      are not listed or quoted, then Trading Day shall mean a Business
      Day.

     

    “Transaction
      Documents”
means
      the Securities Purchase Agreement or any other agreement delivered in connection
      with the Securities Purchase Agreement, including, without limitation, the
      Security Agreement, the Subsidiary Security Agreement, the Irrevocable Transfer
      Agent Instructions, and the Registration Rights Agreement.

     

    “Underlying
      Shares”
means
      the shares of Common Stock issuable upon conversion of this Debenture or as
      payment of interest in accordance with the terms hereof.

     

    “Underlying
      Shares Registration Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement, covering among other things the resale of the Underlying
      Shares and naming the Holder as a “selling stockholder” thereunder.

     

    Section
      6. Except
      as
      expressly provided herein, no provision of this Debenture shall alter or impair
      the obligations of the Obligor, which are absolute and unconditional, to pay
      the
      principal of, interest and other charges (if any) on, this Debenture at the
      time, place, and rate, and in the coin or currency, herein prescribed. This
      Debenture is a direct obligation of the Obligor. This Debenture ranks pari
      passu
      with all other Debentures now or hereafter issued under the terms set forth
      herein. As long as this Debenture is outstanding, the Obligor shall not and
      shall cause their subsidiaries not to, without the consent of the Holder, (i)
      amend its certificate of incorporation, bylaws or other charter documents so
      as
      to adversely affect any rights of the Holder; (ii) repay, repurchase or offer
      to
      repay, repurchase or otherwise acquire shares of its Common Stock or other
      equity securities other than as to the Underlying Shares to the extent permitted
      or required under the Transaction Documents; or (iii) enter into any agreement
      with respect to any of the foregoing. 

     

    Section
      7. This
      Debenture shall not entitle the Holder to any of the rights of a stockholder
      of
      the Obligor, including without limitation, the right to vote, to receive
      dividends and other distributions, or to receive any notice of, or to attend,
      meetings of stockholders or any other proceedings of the Obligor, unless and
      to
      the extent converted into shares of Common Stock in accordance with the terms
      hereof.

     

    Section
      8. If
      this
      Debenture is mutilated, lost, stolen or destroyed, the Obligor shall execute
      and
      deliver, in exchange and substitution for and upon cancellation of the mutilated
      Debenture, or in lieu of or in substitution for a lost, stolen or destroyed
      Debenture, a new Debenture for the principal amount of this Debenture so
      mutilated, lost, stolen or destroyed but only upon receipt of evidence of such
      loss, theft or destruction of such Debenture, and of the ownership hereof,
      and
      indemnity, if requested, all reasonably satisfactory to the
      Obligor.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Section
      9. No
      indebtedness of the Obligor is senior to this Debenture in right of payment,
      whether with respect to interest, damages or upon liquidation or dissolution
      or
      otherwise. Without the Holder’s consent, the Obligor will not and will not
      permit any of their subsidiaries to, directly or indirectly, enter into, create,
      incur, assume or suffer to exist any indebtedness of any kind, on or with
      respect to any of its property or assets now owned or hereafter acquired or
      any
      interest therein or any income or profits there from that is senior in any
      respect to the obligations of the Obligor under this Debenture.

     

    Section
      10. This
      Debenture shall be governed by and construed in accordance with the laws of
      the
      State of New Jersey, without giving effect to conflicts of laws thereof. Each
      of
      the parties consents to the jurisdiction of the Superior Courts of the State
      of
      New Jersey sitting in Hudson County, New Jersey and the U.S. District Court
      for the District of New Jersey sitting in Newark, New Jersey in connection
      with
      any dispute arising under this Debenture and hereby waives, to the maximum
      extent permitted by law, any objection, including any objection based on
forum non conveniens
      to the
      bringing of any such proceeding in such jurisdictions. 

     

    Section
      11. If
      the
      Obligor fails to strictly comply with the terms of this Debenture, then the
      Obligor shall reimburse the Holder promptly for all fees, costs and expenses,
      including, without limitation, attorneys’ fees and expenses incurred by the
      Holder in any action in connection with this Debenture, including, without
      limitation, those incurred: (i) during any workout, attempted workout, and/or
      in
      connection with the rendering of legal advice as to the Holder’s rights,
      remedies and obligations, (ii) collecting any sums which become due to the
      Holder, (iii) defending or prosecuting any proceeding or any counterclaim to
      any
      proceeding or appeal; or (iv) the protection, preservation or enforcement of
      any
      rights or remedies of the Holder.

     

    Section
      12. Any
      waiver by the Holder of a breach of any provision of this Debenture shall not
      operate as or be construed to be a waiver of any other breach of such provision
      or of any breach of any other provision of this Debenture. The failure of the
      Holder to insist upon strict adherence to any term of this Debenture on one
      or
      more occasions shall not be considered a waiver or deprive that party of the
      right thereafter to insist upon strict adherence to that term or any other
      term
      of this Debenture. Any waiver must be in writing.

     

    Section
      13. If
      any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any person or circumstance, it shall nevertheless remain applicable to all
      other
      persons and circumstances. If it shall be found that any interest or other
      amount deemed interest due hereunder shall violate applicable laws governing
      usury, the applicable rate of interest due hereunder shall automatically be
      lowered to equal the maximum permitted rate of interest. The Obligor covenants
      (to the extent that it may lawfully do so) that it shall not at any time insist
      upon, plead, or in any manner whatsoever claim or take the benefit or advantage
      of, any stay, extension or usury law or other law which would prohibit or
      forgive the Obligor from paying all or any portion of the principal of or
      interest on this Debenture as contemplated herein, wherever enacted, now or
      at
      any time hereafter in force, or which may affect the covenants or the
      performance of this indenture, and the Obligor (to the extent it may lawfully
      do
      so) hereby expressly waives all benefits or advantage of any such law, and
      covenants that it will not, by resort to any such law, hinder, delay or impeded
      the execution of any power herein granted to the Holder, but will suffer and
      permit the execution of every such as though no such law has been
      enacted.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Section
      14. Whenever
      any payment or other obligation hereunder shall be due on a day other than
      a
      Business Day, such payment shall be made on the next succeeding Business
      Day.

     

    Section
      15. THE
      PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
      OF
      THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
      OR
      ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
      DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT
      FOR
      THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

     

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        16

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF,
      the
      Obligor has caused this Secured Convertible Debenture to be duly executed by
      a
      duly authorized officer as of the date set forth above.

     

    
      	 	YTXP
              CORPORATION 
	 	 	 
	 	By:	
              /s/
                Michael
                Shores                                            
                

            
	 	Name:	
              Michael
                Shores

            
	 	Title:	
              CEO

            

    

    

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “A”

     

     

    NOTICE
      OF CONVERSION

     

     

    (To
      be executed by the Holder in order to convert the
      Debenture)

     

    

    
      	
              TO:

            	 

    

    

    The
      undersigned hereby irrevocably elects to convert $     
      of the
      principal amount of the above Debenture into Shares of Common Stock of YTXP
      CORPORATION, according to the conditions stated therein, as of the Conversion
      Date written below.

     

    
      	
              Conversion
                Date:

            	 	 
	 	 	 
	
              Applicable
                Conversion Price:

            	 	 
	 	 	 
	
              Signature:

            	 	 
	 	 	 
	
              Name:

            	 	 
	 	 	 
	
              Address:

            	 	 
	 	 	 
	
              Amount
                to be converted:

            	 	
              $          

            
	 	 	 
	
              Amount
                of Debenture unconverted:

            	 	
              $          

            
	 	 	 
	
              Conversion
                Price per share: 

            	 	
              $          

            
	 	 	 
	
              Number
                of shares of Common Stock to be issued:

            	 	 
	 	 	 
	
              Please
                issue the shares of Common Stock in the following name and to the
                following address:

            	 	 
	 	 	 
	
              Issue
                to:

            	 	 
	 	 	 
	
              Authorized
                Signature:

            	 	 
	 	 	 
	
              Name:

            	 	 
	 	 	 
	
              Title:

            	 	 
	 	 	 
	
              Phone
                Number:

            	 	 
	 	 	 
	
              Broker
                DTC Participant Code:

            	 	 
	 	 	 
	
              Account
                Number:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]