Document:

EXECUTION
        COPY

    

     

    WARRANT

     

    THE
      SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
      SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT.

     

    DELEK
      RESOURCES, INC.

     

    Warrant
      To Purchase Common Stock

     

    
      	
              Warrant
                No.: DLKR-3

            	
              Number
                of Shares: 500,000

            
	 	
              Warrant
                Exercise Price: $0.05

            
	 	 
	
              Date
                of Issuance: August 17, 2007

            	
              Expiration
                Date: August 16, 2012

            

    

    

    Delek
      Resources, Inc., a Florida corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, YA
      Global Investments, L.P.
      (the
“Holder”),
      the
      registered holder hereof or its permitted assigns, is entitled, subject to
      the
      terms set forth below, to purchase from the Company upon surrender of this
      Warrant, at any time or times on or after the date hereof, but not after
      11:59 P.M. Eastern Time on the Expiration Date (as defined herein) Five
      Hundred Thousand (500,000) fully paid and nonassessable shares of Common
      Stock (as defined herein) of the Company (the “Warrant
      Shares”)
      at the
      exercise price per share provided in Section 1(b) below or as subsequently
      adjusted; provided, however, that in no event shall the holder be entitled
      to
      exercise this Warrant for a number of Warrant Shares in excess of that number
      of
      Warrant Shares which, upon giving effect to such exercise, would cause the
      aggregate number of shares of Common Stock beneficially owned by the holder
      and
      its affiliates to exceed 4.99% of the outstanding shares of the Common Stock
      following such exercise, except within sixty (60) days of the Expiration Date
      (however, such restriction may be waived by Holder (but only as to itself and
      not to any other holder) upon not less than 65 days prior notice to the
      Company). For purposes of the foregoing proviso, the aggregate number of shares
      of Common Stock beneficially owned by the holder and its affiliates shall
      include the number of shares of Common Stock issuable upon exercise of this
      Warrant with respect to which the determination of such proviso is being made,
      but shall exclude shares of Common Stock which would be issuable upon
      (i) exercise of the remaining, unexercised Warrants beneficially owned by
      the holder and its affiliates and (ii) exercise or conversion of the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by the holder and its affiliates (including, without
      limitation, any convertible notes or preferred stock) subject to a limitation
      on
      conversion or exercise analogous to the limitation contained herein. Except
      as
      set forth in the preceding sentence, for purposes of this paragraph, beneficial
      ownership shall be calculated in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended. For purposes of this Warrant, in determining
      the number of outstanding shares of Common Stock a holder may rely on the number
      of outstanding shares of Common Stock as reflected in (1) the Company’s most
      recent Form 10-QSB or Form 10-KSB, as the case may be, (2) a more recent public
      announcement by the Company or (3) any other notice by the Company or its
      transfer agent setting forth the number of shares of Common Stock outstanding.
      Upon the written request of any holder, the Company shall promptly, but in
      no
      event later than one (1) Business Day following the receipt of such notice,
      confirm in writing to any such holder the number of shares of Common Stock
      then
      outstanding. In any case, the number of outstanding shares of Common Stock
      shall
      be determined after giving effect to the exercise of Warrants (as defined below)
      by such holder and its affiliates since the date as of which such number of
      outstanding shares of Common Stock was reported.

     

    
      
         

      

      
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    Section
      1.

     

    (a) This
      Warrant is one of the warrants issued pursuant to the Purchase Agreement
      (“Purchase
      Agreement”)
      dated
      the date hereof between the Company and the Holder or issued in exchange or
      substitution thereafter or replacement thereof. Each Capitalized term used,
      and
      not otherwise defined herein, shall have the meaning ascribed thereto in the
      Purchase Agreement.

     

    (b) Definitions.
      The
      following words and terms as used in this Warrant shall have the following
      meanings:

     

    (i) “Approved
      Stock Plan”
means
      a
      stock option plan that has been approved by the Board of Directors of the
      Company prior to the date of the Purchase Agreement, pursuant to which the
      Company’s securities may be issued only to any employee, officer or director for
      services provided to the Company.

     

    (ii) “Business
      Day”
means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      the City of New York are authorized or required by law to remain
      closed.

     

    (iii) “Closing
      Bid Price”
means
      the closing bid price of Common Stock as quoted on the Principal Market (as
      reported by Bloomberg Financial Markets (“Bloomberg”)
      through its “Volume at Price” function).

     

    (iv) “Common
      Stock”
means
      (i) the Company’s common stock, no par value per share, and (ii) any
      capital stock into which such Common Stock shall have been changed or any
      capital stock resulting from a reclassification of such Common
      Stock.

     

    (v) “Event
      of Default”
means
      an event of default under the Purchase Agreement or the Convertible Debentures
      issued in connection therewith.

     

    
      
         

      

      
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    (vi) “Excluded
      Securities”
means,
      (a) shares issued or deemed to have been issued by the Company pursuant to
      an
      Approved Stock Plan, (b) shares of Common Stock issued or deemed to be issued
      by
      the Company upon the conversion, exchange or exercise of any right, option,
      obligation or security outstanding on the date prior to date of the Purchase
      Agreement, provided that the terms of such right, option, obligation or security
      are not amended or otherwise modified on or after the date of the Purchase
      Agreement, and provided that the conversion price, exchange price, exercise
      price or other purchase price is not reduced, adjusted or otherwise modified
      and
      the number of shares of Common Stock issued or issuable is not increased
      (whether by operation of, or in accordance with, the relevant governing
      documents or otherwise) on or after the date of the Purchase Agreement, and
      (c) the shares of Common Stock issued or deemed to be issued by the Company
      upon conversion of the Convertible Debentures or exercise of the Warrants.
      

     

    (vii) “Expiration
      Date”
means
      August 16, 2012.

     

    (viii) “Issuance
      Date”
means
      the date hereof.

     

    (ix) “Options”
means
      any rights, warrants or options to subscribe for or purchase Common Stock or
      Convertible Securities. 

     

    (x) “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    (xi) “Principal
      Market”
means
      on any of (a) the American Stock Exchange, (b) New York Stock Exchange, (c)
      the
      Nasdaq National Market, (d) the Nasdaq Capital Market, or (e) the Nasdaq OTC
      Bulletin Board (“OTCBB”)
      

     

    (xii) “Securities
      Act”
means
      the Securities Act of 1933, as amended. 

     

    (xiii) “Warrant”
means
      this Warrant and all Warrants issued in exchange, transfer or replacement
      thereof. 

     

    (xiv) “Warrant
      Exercise Price”
shall
      be $0.05 or as subsequently adjusted as provided in Section 8 hereof.

     

    (c) Other
      Definitional Provisions.
      

     

    (i) Except
      as
      otherwise specified herein, all references herein (A) to the Company shall
      be deemed to include the Company’s successors and (B) to any applicable law
      defined or referred to herein shall be deemed references to such applicable
      law
      as the same may have been or may be amended or supplemented from time to time.
      

     

    (ii) When
      used
      in this Warrant, the words “herein”,
      “hereof”,
      and
“hereunder”
      and
      words of similar import, shall refer to this Warrant as a whole and not to
      any
      provision of this Warrant, and the words “Section”,
      “Schedule”,
      and
“Exhibit”
shall
      refer to Sections of, and Schedules and Exhibits to, this Warrant unless
      otherwise specified. 

     

    
      
         

      

      
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    (iii) Whenever
      the context so requires, the neuter gender includes the masculine or feminine,
      and the singular number includes the plural, and vice versa. 

     

    Section
      2. Exercise
      of Warrant.
      

     

    (a) Subject
      to the terms and conditions hereof, this Warrant may be exercised by the holder
      hereof then registered on the books of the Company, pro rata as hereinafter
      provided, at any time on any Business Day on or after the opening of business
      on
      such Business Day, commencing with the first day after the date hereof, and
      prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by delivery of
      a written notice, in the form of the subscription notice attached as
Exhibit
      A
      hereto
      (the “Exercise
      Notice”),
      of
      such holder’s election to exercise this Warrant, which notice shall specify the
      number of Warrant Shares to be purchased, payment to the Company of an
      amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares
      being purchased, multiplied by the number of Warrant Shares (at the
      applicable Warrant Exercise Price) as to which this Warrant is being
      exercised (plus any applicable issue or transfer taxes) (the “Aggregate
      Exercise Price”)
      in
      cash or wire transfer of immediately available funds and the surrender of this
      Warrant (or an indemnification undertaking with respect to this Warrant in
      the
      case of its loss, theft or destruction) to a common carrier for overnight
      delivery to the Company as soon as practicable following such date
      (“Cash
      Basis”)
      or
      (ii) if at the time of exercise, the Warrant Shares are not subject to an
      effective registration statement or if an Event of Default has occurred, by
      delivering an Exercise Notice and in lieu of making payment of the Aggregate
      Exercise Price in cash or wire transfer, elect instead to receive upon such
      exercise the “Net Number” of shares of Common Stock determined according to the
      following formula (the “Cashless
      Exercise”):
      

     

    
      	 	
              Net
                Number =

            	
              (A
                x B) - (A x C)

            	 
	 	 	
              B

            	 
	 	 	 	 
	 	 	
              For
                purposes of the foregoing formula:

            	 
	 	 	 	 
	 	 	
              A
                =
                the total number of Warrant Shares with respect to which this Warrant
                is
                then being exercised.

            	 
	 	 	 	 
	 	 	
              B
                =
                the Closing Bid Price of the Common Stock on the date of exercise
                of the
                Warrant.

            	 
	 	 	 	 
	 	 	
              C
                =
                the Warrant Exercise Price then in effect for the applicable Warrant
                Shares at the time of such exercise.

            	 
	 	 	 	 

    

    In
      the
      event of any exercise of the rights represented by this Warrant in compliance
      with this Section 2, the Company shall on or before the fifth (5th)
      Business Day following the date of receipt of the Exercise Notice, the Aggregate
      Exercise Price and this Warrant (or an indemnification undertaking with respect
      to this Warrant in the case of its loss, theft or destruction) and the receipt
      of the representations of the holder specified in Section 6 hereof, if requested
      by the Company (the “Exercise
      Delivery Documents”),
      and
      if the Common Stock is DTC eligible, credit such aggregate number of shares
      of
      Common Stock to which the holder shall be entitled to the holder’s or its
      designee’s balance account with The Depository Trust Company; provided, however,
      if the holder who submitted the Exercise Notice requested physical delivery
      of
      any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
      then the Company shall, on or before the fifth (5th)
      Business Day following receipt of the Exercise Delivery Documents, issue and
      surrender to a common carrier for overnight delivery to the address specified
      in
      the Exercise Notice, a certificate, registered in the name of the holder, for
      the number of shares of Common Stock to which the holder shall be entitled
      pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
      Exercise Price referred to in clause (i) or (ii) above the holder of this
      Warrant shall be deemed for all corporate purposes to have become the holder
      of
      record of the Warrant Shares with respect to which this Warrant has been
      exercised. In the case of a dispute as to the determination of the Warrant
      Exercise Price, the Closing Bid Price or the arithmetic calculation of the
      Warrant Shares, the Company shall promptly issue to the holder the number of
      Warrant Shares that is not disputed and shall submit the disputed determinations
      or arithmetic calculations to the holder via facsimile within one (1) Business
      Day of receipt of the holder’s Exercise Notice. 

     

    
      
         

      

      
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    (b) If
      the
      holder and the Company are unable to agree upon the determination of the Warrant
      Exercise Price or arithmetic calculation of the Warrant Shares within one (1)
      day of such disputed determination or arithmetic calculation being submitted
      to
      the holder, then the Company shall immediately submit via facsimile (i) the
      disputed determination of the Warrant Exercise Price or the Closing Bid Price
      to
      an independent, reputable investment banking firm or (ii) the disputed
      arithmetic calculation of the Warrant Shares to its independent, outside
      accountant. The Company shall cause the investment banking firm or the
      accountant, as the case may be, to perform the determinations or calculations
      and notify the Company and the holder of the results no later than forty-eight
      (48) hours from the time it receives the disputed determinations or
      calculations. Such investment banking firm’s or accountant’s determination or
      calculation, as the case may be, shall be deemed conclusive absent manifest
      error.

     

    (c) Unless
      the rights represented by this Warrant shall have expired or shall have been
      fully exercised, the Company shall, as soon as practicable and in no event
      later
      than five (5) Business Days after any exercise and at its own expense, issue
      a
      new Warrant identical in all respects to this Warrant exercised except it shall
      represent rights to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant exercised, less the number
      of Warrant Shares with respect to which such Warrant is exercised.

     

    (d) No
      fractional Warrant Shares are to be issued upon any pro rata exercise of this
      Warrant, but rather the number of Warrant Shares issued upon such exercise
      of
      this Warrant shall be rounded up or down to the nearest whole
      number.

     

    (e) If
      the
      Company or its Transfer Agent shall fail for any reason or for no reason to
      issue to the holder within ten (10) days of receipt of the Exercise
      Delivery Documents, a certificate for the number of Warrant Shares to which
      the
      holder is entitled or to credit the holder’s balance account with The Depository
      Trust Company for such number of Warrant Shares to which the holder is entitled
      upon the holder’s exercise of this Warrant, the Company shall, in addition to
      any other remedies under this Warrant or otherwise available to such holder,
      pay
      as additional damages in cash to such holder on each day the issuance of such
      certificate for Warrant Shares is not timely effected an amount equal to 0.025%
      of the product of (A) the sum of the number of Warrant Shares not issued to
      the
      holder on a timely basis and to which the holder is entitled, and (B) the
      Closing Bid Price of the Common Stock for the trading day immediately preceding
      the last possible date which the Company could have issued such Common Stock
      to
      the holder without violating this Section 2.

     

    
      
         

      

      
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    (f) If
      within
      ten (10) days after the Company’s receipt of the Exercise Delivery Documents,
      the Company fails to deliver a new Warrant to the holder for the number of
      Warrant Shares to which such holder is entitled pursuant to Section 2 hereof,
      then, in addition to any other available remedies under this Warrant, or
      otherwise available to such holder, the Company shall pay as additional damages
      in cash to such holder on each day after such tenth (10th)
      day
      that such delivery of such new Warrant is not timely effected in an amount
      equal
      to 0.25% of the product of (A) the number of Warrant Shares represented by
      the portion of this Warrant which is not being exercised and (B) the
      Closing Bid Price of the Common Stock for the trading day immediately preceding
      the last possible date which the Company could have issued such Warrant to
      the
      holder without violating this Section 2.

     

    Section
      3. Covenants
      as to Common Stock.
      The
      Company hereby covenants and agrees as follows:

     

    (a) This
      Warrant is, and any Warrants issued in substitution for or replacement of this
      Warrant will upon issuance be, duly authorized and validly issued.

     

    (b) All
      Warrant Shares which may be issued upon the exercise of the rights represented
      by this Warrant will, upon issuance, be validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof.

     

    (c) During
      the period within which the rights represented by this Warrant may be exercised,
      the Company will at all times have authorized and reserved at least one hundred
      percent (100%) of the number of shares of Common Stock needed to provide for
      the
      exercise of the rights then represented by this Warrant and the par value of
      said shares will at all times be less than or equal to the applicable Warrant
      Exercise Price. If at any time the Company does not have a sufficient number
      of
      shares of Common Stock authorized and available, then the Company shall call
      and
      hold a special meeting of its stockholders within sixty (60) days of that
      time for the sole purpose of increasing the number of authorized shares of
      Common Stock.

     

    (d) If
      at any
      time after the date hereof the Company shall file a registration statement,
      the
      Company shall include the Warrant Shares issuable to the holder, pursuant to
      the
      terms of this Warrant and shall maintain, so long as any other shares of Common
      Stock shall be so listed, such listing of all Warrant Shares from time to time
      issuable upon the exercise of this Warrant; and the Company shall so list on
      each national securities exchange or automated quotation system, as the case
      may
      be, and shall maintain such listing of, any other shares of capital stock of
      the
      Company issuable upon the exercise of this Warrant if and so long as any shares
      of the same class shall be listed on such national securities exchange or
      automated quotation system.

     

    (e) The
      Company will not, by amendment of its Articles of Incorporation or through
      any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities, or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms to be observed or performed by
      it
      hereunder, but will at all times in good faith assist in the carrying out of
      all
      the provisions of this Warrant and in the taking of all such action as may
      reasonably be requested by the holder of this Warrant in order to protect the
      exercise privilege of the holder of this Warrant against dilution or other
      impairment, consistent with the tenor and purpose of this Warrant. The Company
      will not increase the par value of any shares of Common Stock receivable upon
      the exercise of this Warrant above the Warrant Exercise Price then in effect,
      and (ii) will take all such actions as may be necessary or appropriate in
      order that the Company may validly and legally issue fully paid and
      nonassessable shares of Common Stock upon the exercise of this
      Warrant.

     

    
      
         

      

      
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    (f) This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s
      assets.

     

    Section
      4. Taxes.
      The
      Company shall pay any and all taxes, except any applicable withholding, which
      may be payable with respect to the issuance and delivery of Warrant Shares
      upon
      exercise of this Warrant.

     

    Section
      5. Warrant
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Warrant
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of capital stock of the Company for any purpose, nor shall anything contained
      in
      this Warrant be construed to confer upon the holder hereof, as such, any of
      the
      rights of a stockholder of the Company or any right to vote, give or withhold
      consent to any corporate action (whether any reorganization, issue of stock,
      reclassification of stock, consolidation, merger, conveyance or otherwise),
      receive notice of meetings, receive dividends or subscription rights, or
      otherwise, prior to the issuance to the holder of this Warrant of the Warrant
      Shares which he or she is then entitled to receive upon the due exercise of
      this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on such holder to purchase any securities (upon
      exercise of this Warrant or otherwise) or as a stockholder of the Company,
      whether such liabilities are asserted by the Company or by creditors of the
      Company. Notwithstanding this Section 5, the Company will provide the holder
      of
      this Warrant with copies of the same notices and other information given to
      the
      stockholders of the Company generally, contemporaneously with the giving thereof
      to the stockholders.

     

    Section
      6. Representations
      of Holder.
      The
      holder of this Warrant, by the acceptance hereof, represents that it is
      acquiring this Warrant and the Warrant Shares for its own account for investment
      only and not with a view towards, or for resale in connection with, the public
      sale or distribution of this Warrant or the Warrant Shares, except pursuant
      to
      sales registered or exempted under the Securities Act; provided, however, that
      by making the representations herein, the holder does not agree to hold this
      Warrant or any of the Warrant Shares for any minimum or other specific term
      and
      reserves the right to dispose of this Warrant and the Warrant Shares at any
      time
      in accordance with or pursuant to a registration statement or an exemption
      under
      the Securities Act. The holder of this Warrant further represents, by acceptance
      hereof, that, as of this date, such holder is an “accredited investor” as such
      term is defined in Rule 501(a)(1) of Regulation D promulgated by the
      Securities and Exchange Commission under the Securities Act (an “Accredited
      Investor”).
      Upon
      exercise of this Warrant the holder shall, if requested by the Company, confirm
      in writing, in a form satisfactory to the Company, that the Warrant Shares
      so
      purchased are being acquired solely for the holder’s own account and not as a
      nominee for any other party, for investment, and not with a view toward
      distribution or resale and that such holder is an Accredited Investor. If such
      holder cannot make such representations because they would be factually
      incorrect, it shall be a condition to such holder’s exercise of this Warrant
      that the Company receive such other representations as the Company considers
      reasonably necessary to assure the Company that the issuance of its securities
      upon exercise of this Warrant shall not violate any United States or state
      securities laws.

     

    
      
         

      

      
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    Section
      7. Ownership
      and Transfer.

     

    (a) The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee. The Company may treat the person in whose
      name any Warrant is registered on the register as the owner and holder thereof
      for all purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

     

    Section
      8. Adjustment
      of Warrant Exercise Price and Number of Shares.
      The
      Warrant Exercise Price and the number of shares of Common Stock issuable upon
      exercise of this Warrant shall be adjusted from time to time as
      follows:

     

    (a) Adjustment
      of Warrant Exercise Price and Number of Shares upon Issuance of Common
      Stock.
      If and
      whenever on or after the Issuance Date of this Warrant, the Company issues
      or
      sells, or is deemed to have issued or sold, any shares of Common
      Stock (other than Excluded Securities) for a consideration per share less
      than a price (the “Applicable
      Price”)
      equal
      to the Warrant Exercise Price in effect immediately prior to such issuance
      or
      sale, then immediately after such issue or sale the Warrant Exercise Price
      then
      in effect shall be reduced to an amount equal to such consideration per share.
      Upon each such adjustment of the Warrant Exercise Price hereunder, the number
      of
      Warrant Shares issuable upon exercise of this Warrant shall be adjusted to
      the
      number of shares determined by multiplying the Warrant Exercise Price in effect
      immediately prior to such adjustment by the number of Warrant Shares issuable
      upon exercise of this Warrant immediately prior to such adjustment and dividing
      the product thereof by the Warrant Exercise Price resulting from such
      adjustment.

     

    (b) Effect
      on Warrant Exercise Price of Certain Events.
      For
      purposes of determining the adjusted Warrant Exercise Price under Section 8(a)
      above, the following shall be applicable:

     

    (i) Issuance
      of Options.
      If
      after the date hereof, the Company in any manner grants any Options and the
      lowest price per share for which one share of Common Stock is issuable upon
      the
      exercise of any such Option or upon conversion or exchange of any convertible
      securities issuable upon exercise of any such Option is less than the Applicable
      Price, then such share of Common Stock shall be deemed to be outstanding and
      to
      have been issued and sold by the Company at the time of the granting or sale
      of
      such Option for such price per share. For purposes of this Section 8(b)(i),
      the
      lowest price per share for which one share of Common Stock is issuable upon
      exercise of such Options or upon conversion or exchange of such Convertible
      Securities shall be equal to the sum of the lowest amounts of consideration
      (if
      any) received or receivable by the Company with respect to any one share of
      Common Stock upon the granting or sale of the Option, upon exercise of the
      Option or upon conversion or exchange of any convertible security issuable
      upon
      exercise of such Option. No further adjustment of the Warrant Exercise Price
      shall be made upon the actual issuance of such Common Stock or of such
      convertible securities upon the exercise of such Options or upon the actual
      issuance of such Common Stock upon conversion or exchange of such convertible
      securities.

     

    
      
         

      

      
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    (ii) Issuance
      of Convertible Securities.
      If the
      Company in any manner issues or sells any convertible securities and the lowest
      price per share for which one share of Common Stock is issuable upon the
      conversion or exchange thereof is less than the Applicable Price, then such
      share of Common Stock shall be deemed to be outstanding and to have been issued
      and sold by the Company at the time of the issuance or sale of such convertible
      securities for such price per share. For the purposes of this
      Section 8(b)(ii), the lowest price per share for which one share of Common
      Stock is issuable upon such conversion or exchange shall be equal to the sum
      of
      the lowest amounts of consideration (if any) received or receivable by the
      Company with respect to one share of Common Stock upon the issuance or sale
      of
      the convertible security and upon conversion or exchange of such convertible
      security. No further adjustment of the Warrant Exercise Price shall be made
      upon
      the actual issuance of such Common Stock upon conversion or exchange of such
      convertible securities, and if any such issue or sale of such convertible
      securities is made upon exercise of any Options for which adjustment of the
      Warrant Exercise Price had been or are to be made pursuant to other provisions
      of this Section 8(b), no further adjustment of the Warrant Exercise Price shall
      be made by reason of such issue or sale. 

     

    (iii) Change
      in Option Price or Rate of Conversion.
      If the
      purchase price provided for in any Options, the additional consideration, if
      any, payable upon the issue, conversion or exchange of any convertible
      securities, or the rate at which any convertible securities are convertible
      into
      or exchangeable for Common Stock changes at any time, the Warrant Exercise
      Price
      in effect at the time of such change shall be adjusted to the Warrant Exercise
      Price which would have been in effect at such time had such Options or
      convertible securities provided for such changed purchase price, additional
      consideration or changed conversion rate, as the case may be, at the time
      initially granted, issued or sold and the number of Warrant Shares issuable
      upon
      exercise of this Warrant shall be correspondingly readjusted. For purposes
      of
      this Section 8(b)(iii), if the terms of any Option or convertible security
      that
      was outstanding as of the Issuance Date of this Warrant are changed in the
      manner described in the immediately preceding sentence, then such Option or
      convertible security and the Common Stock deemed issuable upon exercise,
      conversion or exchange thereof shall be deemed to have been issued as of the
      date of such change. No adjustment pursuant to this Section 8(b) shall be
      made if such adjustment would result in an increase of the Warrant Exercise
      Price then in effect.

     

    (iv) Calculation
      of Consideration Received.
      If any
      Common Stock, Options or convertible securities are issued or sold or deemed
      to
      have been issued or sold for cash, the consideration received therefore will
      be
      deemed to be the net amount received by the Company therefore. If any Common
      Stock, Options or convertible securities are issued or sold for a consideration
      other than cash, the amount of such consideration received by the Company will
      be the fair value of such consideration, except where such consideration
      consists of marketable securities, in which case the amount of consideration
      received by the Company will be the market price of such securities on the
      date
      of receipt of such securities. If any Common Stock, Options or convertible
      securities are issued to the owners of the non-surviving entity in connection
      with any merger in which the Company is the surviving entity, the amount of
      consideration therefore will be deemed to be the fair value of such portion
      of
      the net assets and business of the non-surviving entity as is attributable
      to
      such Common Stock, Options or convertible securities, as the case may be. The
      fair value of any consideration other than cash or securities will be determined
      jointly by the Company and the holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then
      outstanding. If such parties are unable to reach agreement within ten (10)
      days after the occurrence of an event requiring valuation (the “Valuation
      Event”),
      the
      fair value of such consideration will be determined within five (5) Business
      Days after the tenth (10th)
      day
      following the Valuation Event by an independent, reputable appraiser jointly
      selected by the Company and the holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then
      outstanding. The determination of such appraiser shall be final and binding
      upon
      all parties and the fees and expenses of such appraiser shall be borne jointly
      by the Company and the holders of Warrants.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (v) Integrated
      Transactions.
      In case
      any Option is issued in connection with the issue or sale of other securities
      of
      the Company, together comprising one integrated transaction in which no specific
      consideration is allocated to such Options by the parties thereto, the Options
      will be deemed to have been issued for a consideration of $.01.

     

    (vi) Treasury
      Shares.
      The
      number of shares of Common Stock outstanding at any given time does not include
      shares owned or held by or for the account of the Company, and the disposition
      of any shares so owned or held will be considered an issue or sale of Common
      Stock.

     

    (vii) Record
      Date.
      If the
      Company takes a record of the holders of Common Stock for the purpose of
      entitling them (1) to receive a dividend or other distribution payable in
      Common Stock, Options or in convertible securities or (2) to subscribe for
      or purchase Common Stock, Options or convertible securities, then such record
      date will be deemed to be the date of the issue or sale of the shares of Common
      Stock deemed to have been issued or sold upon the declaration of such dividend
      or the making of such other distribution or the date of the granting of such
      right of subscription or purchase, as the case may be.

     

    (c) Adjustment
      of Warrant Exercise Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, stock dividend, recapitalization or otherwise) one or more
      classes of its outstanding shares of Common Stock into a greater number of
      shares, any Warrant Exercise Price in effect immediately prior to such
      subdivision will be proportionately reduced and the number of shares of Common
      Stock obtainable upon exercise of this Warrant will be proportionately
      increased. If the Company at any time after the date of issuance of this Warrant
      combines (by combination, reverse stock split or otherwise) one or more classes
      of its outstanding shares of Common Stock into a smaller number of shares,
      any
      Warrant Exercise Price in effect immediately prior to such combination will
      be
      proportionately increased and the number of Warrant Shares issuable upon
      exercise of this Warrant will be proportionately decreased. Any adjustment
      under
      this Section 8(c) shall become effective at the close of business on the
      date the subdivision or combination becomes effective.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (d) Distribution
      of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of Common Stock, by way of return
      of capital or otherwise (including, without limitation, any distribution of
      cash, stock or other securities, property or options by way of a dividend,
      spin
      off, reclassification, corporate rearrangement or other similar transaction)
      (a
“Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (i) any
      Warrant Exercise Price in effect immediately prior to the close of business
      on
      the record date fixed for the determination of holders of Common Stock
      entitled to
      receive the Distribution shall be reduced, effective as of the close of business
      on such record date, to a price determined by multiplying such Warrant Exercise
      Price by a fraction of which (A) the numerator shall be the Closing Sale Price
      of the Common Stock on the trading day immediately preceding such record date
      minus the value of the Distribution (as determined in good faith by the
      Company’s Board of Directors) applicable to one share of Common Stock, and (B)
      the denominator shall be the Closing Sale Price of the Common Stock on the
      trading day immediately preceding such record date; and

     

    (ii) either
      (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall
      be increased to a number of shares equal to the number of shares of Common
      Stock
      obtainable immediately prior to the close of business on the record date fixed
      for the determination of holders of Common Stock entitled to receive the
      Distribution multiplied by the reciprocal of the fraction set forth in the
      immediately preceding clause (i), or (B) in the event that the Distribution
      is
      of common stock of a company whose common stock is traded on a national
      securities exchange or a national automated quotation system, then the holder
      of
      this Warrant shall receive an additional warrant to purchase Common Stock,
      the
      terms of which shall be identical to those of this Warrant, except that such
      warrant shall be exercisable into the amount of the assets that would have
      been
      payable to the holder of this Warrant pursuant to the Distribution had the
      holder exercised this Warrant immediately prior to such record date and with
      an
      exercise price equal to the amount by which the exercise price of this Warrant
      was decreased with respect to the Distribution pursuant to the terms of the
      immediately preceding clause (i).

     

    (e) Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 8
      but not expressly provided for by such provisions (including, without
      limitation, the granting of stock appreciation rights, phantom stock rights
      or
      other rights with equity features), then the Company’s Board of Directors will
      make an appropriate adjustment in the Warrant Exercise Price and the number
      of
      shares of Common Stock obtainable upon exercise of this Warrant so as to protect
      the rights of the holders of the Warrants; provided, except as set forth in
      section 8(c),that no such adjustment pursuant to this Section 8(e) will increase
      the Warrant Exercise Price or decrease the number of shares of Common Stock
      obtainable as otherwise determined pursuant to this Section 8.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (f) Notices.

     

    (i) Immediately
      upon any adjustment of the Warrant Exercise Price, the Company will give written
      notice thereof to the holder of this Warrant, setting forth in reasonable
      detail, and certifying, the calculation of such adjustment.

     

    (ii) The
      Company will give written notice to the holder of this Warrant at least ten
      (10)
      days prior to the date on which the Company closes its books or takes a record
      (A) with respect to any dividend or distribution upon the Common Stock,
      (B) with respect to any pro rata subscription offer to holders of Common
      Stock or (C) for determining rights to vote with respect to any Organic
      Change (as defined below), dissolution or liquidation, provided that such
      information shall be made known to the public prior to or in conjunction with
      such notice being provided to such holder.

     

    (iii) The
      Company will also give written notice to the holder of this Warrant at least
      ten
      (10) days prior to the date on which any Organic Change, dissolution or
      liquidation will take place, provided that such information shall be made known
      to the public prior to or in conjunction with such notice being provided to
      such
      holder.

     

    Section
      9. Purchase
      Rights; Reorganization, Reclassification, Consolidation, Merger or
      Sale.

     

    (a) In
      addition to any adjustments pursuant to Section 8 above, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of Common Stock (the “Purchase
      Rights”),
      then
      the holder of this Warrant will be entitled to acquire, upon the terms
      applicable to such Purchase Rights, the aggregate Purchase Rights which such
      holder could have acquired if such holder had held the number of shares of
      Common Stock acquirable upon complete exercise of this Warrant immediately
      before the date on which a record is taken for the grant, issuance or sale
      of
      such Purchase Rights, or, if no such record is taken, the date as of which
      the
      record holders of Common Stock are to be determined for the grant, issue or
      sale
      of such Purchase Rights.

     

    (b) Any
      recapitalization, reorganization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets to another Person or other
      transaction in each case which is effected in such a way that holders of Common
      Stock are entitled to receive (either directly or upon subsequent liquidation)
      stock, securities or assets with respect to or in exchange for Common Stock
      is
      referred to herein as an “Organic
      Change.”
Prior
      to the consummation of any (i) sale of all or substantially all of the Company’s
      assets to an acquiring Person or (ii) other Organic Change following which
      the
      Company is not a surviving entity, the Company will secure from the Person
      purchasing such assets or the successor resulting from such Organic Change
      (in
      each case, the “Acquiring
      Entity”)
      a
      written agreement (in form and substance satisfactory to the holders of Warrants
      representing at least two-thirds (iii) of the Warrant Shares issuable upon
      exercise of the Warrants then outstanding) to deliver to each holder of Warrants
      in exchange for such Warrants, a security of the Acquiring Entity evidenced
      by a
      written instrument substantially similar in form and substance to this Warrant
      and satisfactory to the holders of the Warrants (including an adjusted warrant
      exercise price equal to the value for the Common Stock reflected by the terms
      of
      such consolidation, merger or sale, and exercisable for a corresponding number
      of shares of Common Stock acquirable and receivable upon exercise of the
      Warrants without regard to any limitations on exercise, if the value so
      reflected is less than any Applicable Warrant Exercise Price immediately prior
      to such consolidation, merger or sale). Prior to the consummation of any other
      Organic Change, the Company shall make appropriate provision (in form and
      substance satisfactory to the holders of Warrants representing a
      majority of
      the
      Warrant Shares issuable upon exercise of the Warrants then outstanding) to
      insure that each of the holders of the Warrants will thereafter have the right
      to acquire and receive in lieu of or in addition to (as the case may be) the
      Warrant Shares immediately theretofore issuable and receivable upon the exercise
      of such holder’s Warrants (without regard to any limitations on exercise),
      such shares of stock, securities or assets that would have been issued or
      payable in such Organic Change with respect to or in exchange for the number
      of
      Warrant Shares which would have been issuable and receivable upon the exercise
      of such holder’s Warrant as of the date of such Organic Change (without taking
      into account any limitations or restrictions on the exercisability of this
      Warrant).

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    Section
      10. Lost,
      Stolen, Mutilated or Destroyed Warrant.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
      on
      receipt of an indemnification undertaking (or, in the case of a mutilated
      Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
      this Warrant so lost, stolen, mutilated or destroyed.

     

    Section
      11. Notice.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Warrant 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 receipt
      is received by the sending party transmission is mechanically or electronically
      generated and kept on file by the sending party); or (iii) one Business 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:

     

    
      	
              If
                to Holder:

            	
              YA
                Global Investments, L.P.

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Attention: Mark
                A. Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	
              With
                Copy to:

            	
              David
                Gonzalez, Esq.

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            

    

     

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

     

    
      	
              If
                to the Company, to:

            	
              Delek
                Resources, Inc.

            
	 	
              1224
                Washington Avenue

            
	 	
              Miami
                Beach, FL 33319

            
	 	
              Attention: Leonard
                Sternheim

            
	 	
              Telephone: (305)
                531-1174

            
	 	
              Facsimile: (305)
                531-1274

            
	 	 
	
              With
                a copy to:

            	 
	 	 
	 	 
	 	 

    

    

    If
      to a
      holder of this Warrant, to it at the address and facsimile number set forth
      on
Exhibit C
      hereto,
      with copies to such holder’s representatives as set forth on Exhibit C,
      or at
      such other address and facsimile as shall be delivered to the Company upon
      the
      issuance or transfer of this Warrant. Each party shall provide five days’ prior
      written notice to the other party of any change in address or facsimile number.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, facsimile, waiver or other communication, (or (B) 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
      12. Date.
      The
      date of this Warrant is set forth on page 1 hereof. This Warrant, in all
      events, shall be wholly void and of no effect after the close of business on
      the
      Expiration Date, except that notwithstanding any other provisions hereof, the
      provisions of Section 8(b) shall continue in full force and effect after
      such date as to any Warrant Shares or other securities issued upon the exercise
      of this Warrant.

     

    Section
      13. Amendment
      and Waiver.
      Except
      as otherwise provided herein, the provisions of the Warrants may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, only if the Company has obtained the
      written consent of the holders of Warrants representing at least two-thirds
      of
      the Warrant Shares issuable upon exercise of the Warrants then outstanding;
      provided that, except for Section 8(d), no such action may increase the Warrant
      Exercise Price or decrease the number of shares or class of stock obtainable
      upon exercise of any Warrant without the written consent of the holder of such
      Warrant.

     

    Section
      14. Descriptive
      Headings; Governing Law.
      The
      descriptive headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      The
      corporate laws of the State of New Jersey shall govern all issues concerning
      the
      relative rights of the Company and its stockholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of New Jersey,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of New Jersey or any other jurisdictions) that would
      cause
      the application of the laws of any jurisdictions other than the State of New
      Jersey. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in Hudson County and the United States
      District Court for the District of New Jersey, for the adjudication of any
      dispute hereunder or in connection herewith or therewith, or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. 

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    Section
      15. Waiver
      of Jury Trial.
      AS
      A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
      PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION.

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed as of the date first set forth
      above.

     

    
      	 	 	 
	 	
              DELEK
                RESOURCES, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name: Leonard
                Sternheim

            
	 	
              Title: Chief
                Executive Officer

            

    

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    DELEK
      RESOURCES, INC.

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Warrant
      Shares”)
      of
      Delek Resources, Inc. (the “Company”),
      evidenced by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

     

    Specify
      Method of exercise by check mark:

     

    
      	
              1.

            	
              o

            	
              Cash
                Exercise

            
	 	 	 
	 	 	
              (a)
                Payment
                of Warrant Exercise Price.
                The holder shall pay the Aggregate Exercise Price of $______________
                to
                the Company in accordance with the terms of the
                Warrant.

            
	 	 	 
	 	 	
              (b)
                Delivery
                of Warrant Shares.
                The Company shall deliver to the holder __________ Warrant Shares
                in
                accordance with the terms of the Warrant.

            
	 	 	 
	
              2.

            	
              
                o

              

            	
              Cashless
                Exercise

            
	 	 	 
	 	 	
              (a)
                Payment
                of Warrant Exercise Price.
                In lieu of making payment of the Aggregate Exercise Price, the holder
                elects to receive upon such exercise the Net Number of shares of
                Common
                Stock determined in accordance with the terms of the
                Warrant.

            
	 	 	 
	 	 	
              (b)
                Delivery
                of Warrant Shares.
                The Company shall deliver to the holder __________Warrant Shares
                in
                accordance with the terms of the
                Warrant.

            

    

    

    Date:
      _______________ __, ______

    

    Name
      of
      Registered Holder

    
      	 	 	 	 
	 	 	 	 
	By:	 	 	
            
	
              
                

              

            	 	 	
            
	Name:	 	 	
            
	
              
                

              

            	 	 	 
	Title:	 	 	 
	
              
                

              

            	 	 	 

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

         

    EXHIBIT
      B TO WARRANT

     

    FORM
      OF WARRANT POWER

     

    FOR
      VALUE RECEIVED,
      the
      undersigned does hereby assign and transfer to ________________, Federal
      Identification No. __________, a warrant to purchase ____________ shares of
      the capital stock of Delek Resources, Inc. represented by warrant certificate
      no. _____, standing in the name of the undersigned on the books of said
      corporation. The undersigned does hereby irrevocably constitute and appoint
      ______________, attorney to transfer the warrants of said corporation, with
      full
      power of substitution in the premises.

     

     

    
      	
              Dated:

            	 	 
	
              
                

              

            	
              

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	 	
              

            
	 	Name:  	 
	 	 	
              

            
	 	Title: 	 
	 	
              

            

    

     

     

    
      
         

      

      
        B-1SECURITIES
      PURCHASE AGREEMENT

    

    This
      SECURITIES PURCHASE AGREEMENT,
      dated
      as of September 6, 2007 (the “Agreement”),
      by
      and among TXP Corporation, a Nevada corporation (the “Company”)
      and
      Dyna Porter International Limited, a British Virgin Islands company (the
“Investor”).

     

    BACKGROUND

     

    WHEREAS,
      the
      Company wishes to sell, and the Investor wishes to purchase, up to an aggregate
      of $1,000,000 (the “Purchase
      Price”
      ) in
      shares of the Company's common stock, par value $.001 per share, for a total
      of
      4,000,000 shares (the “Shares”)
      at a
      per share purchase price of $0.25, together with warrants to purchase 1,000,000
      shares of Common Stock, in the form annexed hereto as
      Exhibit “A”,
      at an
      exercise price equal to $0.65 per share, warrants to purchase 1,000,000 shares
      of Common Stock, in the form annexed hereto as
      Exhibit “B”,
      at an
      exercise price equal to $0.75 per share, warrants to purchase 1,000,000 shares
      of Common Stock, in the form annexed hereto as
      Exhibit “C”,
      at an
      exercise price equal to $0.85 per share, and warrants to purchase 1,000,000
      shares of Common Stock, in the form annexed hereto as
      Exhibit “D”,
      at an
      exercise price equal to $1.00 per share. The warrants and the shares of Common
      Stock issuable upon exercise of the warrants shall be referred to herein as
      the
“Warrants”
and
      the
“Warrant
      Shares”,
      respectively.

    

    WHEREAS,
      the
      issuance of the Shares and the Warrants will be made in reliance upon the
      provisions of Section 4(2) ("Section
      4(2)")
      of the
      United States Securities Act of 1933, as amended, and/or Regulation D
      ("Regulation
      D")
      and
      the other rules and regulations promulgated thereunder (the "Securities
      Act"),
      and/or upon such other exemption from the registration requirements of the
      Securities Act as may be available with respect to any or all of the investments
      in securities to be made hereunder.

    

    This
      Agreement and the Warrants shall collectively be referred to herein at the
      (“Transaction
      Documents”).
      All
      capitalized terms not otherwise defined herein shall have the meanings given
      to
      them in the Transaction Documents.

     

    NOW
      THEREFORE
      in
      consideration of the premises and the mutual covenants, agreements,
      representations and warranties contained herein, and other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      parties hereto hereby agree as follows:

    

    ARTICLE
      1.

    CLOSING

     

    1.1
       Closing
      Date.
      Subject
      to the satisfaction or waiver of the terms and conditions of this Agreement
      and
      the satisfaction or waiver of the conditions to Closing as set forth in Section
      1.2 and 1.3 below, within five (5) business days from the execution of this
      Agreement (the“Closing
      Date”),
      the
      Investor agrees to purchase from the Company, and the Company agrees to sell
      to
      the Investor, up to an aggregate of $1,000,000 in Shares at per share purchase
      price of $0.25, together with warrants to purchase 1,000,000 shares of Common
      Stock at an exercise price equal to $0.65 per share, warrants to purchase
      1,000,000 shares of Common Stock at an exercise price equal to $0.75 per share,
      warrants to purchase 1,000,000 shares of Common Stock at an exercise price
      equal
      to $0.85 per share and warrants to purchase 1,000,000 shares of Common Stock
      at
      an exercise price equal to $1.00 per share.

     

    1.2 
      Company
      Closing Conditions.
      The
      obligation of the Company hereunder to issue and sell the Shares and Warrants
      to
      the Investor at the Closing is subject to the satisfaction, at or before the
      Closing Date, of each of the following conditions, provided that these
      conditions are for the Company's sole benefit and may be waived by the Company
      at any time in its sole discretion by providing the Investor with prior written
      notice thereof:

    

    (i) The
      Investor shall have executed each of the Transaction Documents to be executed
      by
      them and delivered the same to the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) The
      Investor shall have completed and executed the Confidential Investor
      Questionnaire, annexed hereto as
      Exhibit “E”,
      and
      delivered the same to the Company.

    

    (iii) The
      Investor shall have delivered to the Company the Purchase Price for the Shares
      and the Warrants being purchased by the Investor by wire transfer of immediately
      available funds pursuant to the written wire instructions provided by the
      Company.

    

    (iv) The
      representations and warranties of the Investor shall be true and correct as
      of
      the date when made and as of the Closing Date as though made at that time
      (except for representations and warranties that speak as of a specific date),
      and the Investor shall have performed, satisfied and complied with the
      covenants, agreements and conditions required by the Transaction Documents
      to be
      performed, satisfied or complied with by it at or prior to the Closing
      Date.

    

    1.3 Investor
      Closing Conditions.
      The
      obligation of the Investor hereunder to purchase the Shares and Warrants at
      the
      Closing is subject to the satisfaction, at or before the Closing Date thereof,
      of each of the following conditions, provided that these conditions are for
      the
      Investor's sole benefit and may be waived by the Investor at any time in its
      sole discretion by providing the Company with prior written notice
      thereof:

    

    (i) The
      Company shall have executed each of the Transaction Documents to be executed
      by
      it and delivered the same to the Investor.

    

    (ii) The
      Common Stock shall be authorized for quotation on the Principal Market, trading
      in the Common Stock shall not have been suspended by the Principal Market (as
      defined in Section 3.3 of this Agreement) or the Securities and Exchange
      Commission (the “Commission”)
      at any
      time beginning on the date hereof and through and including the Closing Date,
      and the Company shall not have been notified of any pending or threatened
      proceeding or other action to de-list or suspend trading in the Common
      Stock.

    

    (iii) The
      representations and warranties of the Company shall be true and correct as
      of
      the date when made and as of the Closing Date as though made at that time
      (except for representations and warranties that speak as of a specific date),
      and the Company shall have performed, satisfied and complied with the covenants,
      agreements and conditions required by the Transaction Documents to be performed,
      satisfied or complied with by the Company at or prior to the Closing
      Date.

     

       (iv) The
      Company shall have delivered to the Investor the Shares being purchased by
      the
      Investor at the Closing.

    

    (v) The
      Company shall have executed and delivered to the Investor the Warrants being
      purchased by the Investor at the Closing.

    

    ARTICLE
      2.

    REPRESENTATIONS
      AND WARRANTIES OF THE INVESTOR

    

    2.1
       Organization
      and Standing of the Subscribers.
      The
      Investor is a corporation, partnership or other entity duly incorporated or
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or organization. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.2 Compliance
      with Law.
      The
      Investor's trading activities with respect to Shares and the Warrant Shares
      will
      be in compliance with all applicable state and federal securities laws, rules
      and regulations and rules and regulations of the principal market on which
      the
      Company's Common Stock is listed.

    

    2.3
       Intent.
      The
      Investor is entering into this Agreement for his own account for investment
      purposes only and not with a view to or for sale in connection with any
      distribution of the Shares, the Warrants or the Warrant Shares. The Investor
      has
      no present arrangement (whether or not legally binding) at any time to sell
      the
      Shares, the Warrants or the Warrant Shares to or through any person or entity;
      provided, however, that by making the representations herein, the Investor
      does
      not agree to hold such securities for any minimum or other specific term and
      reserves the right to dispose of the Shares, the Warrants and the Warrant Shares
      at any time in accordance with federal and state securities laws applicable
      to
      such disposition.

    

    2.4 Investment
      Experience.
      The
      Investor acknowledges that he can bear the economic risk and complete loss
      of
      its investment in the securities and has such knowledge and experience in
      financial or business matters that it is capable of evaluating the merits and
      risks of the investment contemplated hereby.

    

    2.5
       Authorization
      and Power.
      The
      Investor has the requisite power and authority to enter into and perform this
      Agreement and to purchase the Shares and acquire the Warrants being issued
      to it
      hereunder. This Agreement has been duly authorized, executed and delivered
      by
      all necessary corporate or partnership action, and no further consent or
      authorization of the Investor or its Board of Directors, stockholders, partners,
      members, as the case may be, is required and constitutes, or shall constitute
      when executed and delivered, a valid and binding obligation of the Investor
      enforceable against the Investor in accordance with the terms thereof, subject
      to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
      and
      similar laws of general applicability relating to or affecting creditors' rights
      generally and to general principles of equity.

    

    2.6 No
      Conflicts.
      The
      execution, delivery and performance of this Agreement and the consummation
      by
      the Investor of the transactions contemplated hereby or relating hereto do
      not
      and will not (i) result in a violation of the Investor's charter documents
      or
      bylaws or other organizational documents or (ii) conflict with, or constitute
      a
      default (or an event which with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation of any agreement, indenture or instrument or
      obligation to which the Investor is a party or by which its properties or assets
      are bound, or result in a violation of any law, rule, or regulation, or any
      order, judgment or decree of any court or governmental agency applicable to
      the
      Investor or its properties (except for such conflicts, defaults and violations
      as would not, individually or in the aggregate, have a material adverse effect
      on the Investor). The Investor is not required to obtain any consent,
      authorization or order of, or make any filing or registration with, any court
      or
      governmental agency in order for it to execute, deliver or perform any of its
      obligations under this Agreement or to purchase the Shares or acquire the
      Warrants in accordance with the terms hereof, provided that for purposes of
      the
      representation made in this sentence, the Investor is assuming and relying
      upon
      the accuracy of the relevant representations and agreements of the Company
      herein.

      

    2.7. Information
      on Company.
      The
      Investor has been furnished with or has had access at the EDGAR Website of
      the
      Commission to the Company's Form 10-KSB for the year ended December 31, 2006
      as
      filed with the Commission, together with all subsequently filed Forms 10-QSB,
      8-K, and filings made with the Commission available at the EDGAR website,
      (hereinafter referred to collectively as the "SEC
      Reports").
      In
      addition, the Investor has received in writing from the Company such other
      information concerning its operations, financial condition and other matters
      as
      the Investor has requested in writing (such other information is collectively,
      the "Other
      Written Information"),
      and
      considered all factors the Investor deems material in deciding on the
      advisability of investing in the securities. The Investor has had full
      opportunity to conduct a complete and thorough due diligence investigation
      of
      the Company, and such opportunity has been made available to the Investor's
      professional representative(s) to ask questions of and receive answers from
      representatives of the Company concerning the Company and its financial
      condition and prospects, request additional information necessary to verify
      the
      accuracy of the SEC Reports and Other Written Information provided to Investor.
      The foregoing, however, does not limit or modify the representations and
      warranties of the Company contained in this Agreement or the right of Investor
      to rely thereon. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.8. Information
      on Investor.
      The
      Investor is, and will be at the time of the issuance of the Shares and the
      Warrants, an "accredited investor", as such term is defined in Regulation D
      promulgated by the Commission under the Securities Act, is experienced in
      investments and business matters, has made investments of a speculative nature
      and has purchased securities of United States publicly-owned companies in
      private placements in the past and, with its representatives, has such knowledge
      and experience in financial, tax and other business matters as to enable the
      Investor to utilize the information made available by the Company to evaluate
      the merits and risks of and to make an informed investment decision with respect
      to the proposed purchase, which represents a speculative investment. The
      Investor has the authority and is duly and legally qualified to purchase and
      own
      the Shares and the Warrants. The Investor is able to bear the risk of such
      investment for an indefinite period and to afford a complete loss thereof.
      The
      information set forth on the signature page hereto regarding the Investor is
      accurate. 

    

    2.9. Purchase
      of Shares and Receipt of Warrants.
      The
      Investor will purchase the Shares and receive the Warrants as principal for
      his
      own account for investment only and not with a view toward, or for resale in
      connection with, the public sale or any distribution thereof.

     

    2.10. Compliance
      with Securities Act.
      The
      Investor understands and agrees that the Shares and the Warrants have not been
      registered under the Securities Act or any applicable state securities laws,
      by
      reason of their issuance in a transaction that does not require registration
      under the Securities Act (based in part on the accuracy of the representations
      and warranties of Investor contained herein), and that such securities must
      be
      held indefinitely unless a subsequent disposition is registered under the
      Securities Act or any applicable state securities laws or is exempt from such
      registration. Resales of the securities by the Investor will be made in
      compliance with all applicable securities laws.

     

    2.11. Communication
      of Offer.
      The
      offer to sell the securities was directly communicated to the Investor by the
      Company. At no time was the Investor presented with or solicited by any leaflet,
      newspaper or magazine article, radio or television advertisement, or any other
      form of general advertising or solicited or invited to attend a promotional
      meeting otherwise than in connection and concurrently with such communicated
      offer.

    

    2.12. Confidentiality/Public
      Announcement.
      From the
      date of this Agreement and until the Company makes a public announcement of
      the
      transactions contemplated by this Agreement by filing a Form 8-K, Investor
      agrees he will not disclose publicly or privately the nature of the transactions
      contemplated under this Agreement unless expressly agreed to in writing by
      the
      Company, or only to the extent required by law.

     

    2.13. No
      Governmental Review.
      The
      Investor understands that no United States federal or state agency or any other
      governmental or state agency has passed on or made recommendations or
      endorsement of the securities or the suitability of the investment in the
      securities nor have such authorities passed upon or endorsed the merits of
      the
      offering of the securities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.14.
      No
      Market Manipulation.
      The
      Investor has not taken, and will not take, directly or indirectly, any action
      designed to, or that might reasonably be expected to, cause or result in
      stabilization or manipulation of the price of the Common Stock to facilitate
      the
      sale or resale of the securities or affect the price at which the securities
      may
      be issued or resold.

    

    2.15.
      Short
      Position and Short Sales.
      The
      Investor covenants that neither he nor any of his affiliates will engage in
      any
      illegal short sales of or illegal hedging transactions with respect to the
      Common Stock.

    

    2.16 Restricted
      Securities.
      The
      Investor understands that the securities have not been registered under the
      Securities Act and the Investor will not sell, offer to sell, assign, pledge,
      hypothecate or otherwise transfer any of the securities unless pursuant to
      an
      effective registration statement under the Securities Act. Notwithstanding
      anything to the contrary contained in this Agreement, the Investor may transfer
      (without restriction but with the need for an opinion of counsel) the securities
      to its Affiliates (as defined below) provided that each such Affiliate is an
      “accredited investor” under Regulation D and such Affiliate agrees to be bound
      by the terms and conditions of this Agreement. For the purposes of this
      Agreement, an“Affiliate”
      of any
      person or entity means any other person or entity directly or indirectly
      controlling, controlled by or under direct or indirect common control with
      such
      person or entity. Affiliate includes each subsidiary of the Company. For
      purposes of this definition,“control”
      means
      the power to direct the management and policies of such person or firm, directly
      or indirectly, whether through the ownership of voting securities, by contract
      or otherwise.

     

    2.17. Survival.
      The
      foregoing representations and warranties shall survive for a period of one
      year
      from the date hereof.

    

    ARTICLE
      3.

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

    

    3.1. Organization
      of the Company.
      The
      Company is a corporation duly incorporated and existing in good standing under
      the laws of the State of Nevada and has all requisite corporate authority to
      own
      its properties and to carry on its business as now being
      conducted.

    

    3.2. Authority.
      (i) The
      Company has the requisite corporate power and corporate authority to enter
      into
      and perform its obligations under this Agreement and to issue the Shares, the
      Warrants and the Warrant Shares pursuant to their respective terms,
      (ii) the
      execution, issuance and delivery of the this Agreement, the Warrants by the
      Company and the consummation by it of the transactions contemplated thereby
      have
      been duly authorized by all necessary corporate action and no further consent
      or
      authorization of the Company or its Board of Directors or stockholders is
      required, and
      (iii)
      this Agreement and the Warrants have been duly executed and delivered by the
      Company and shall constitute valid and binding obligations of the Company
      enforceable against the Company in accordance with their terms, except as such
      enforceability may be limited by applicable bankruptcy, insolvency, or similar
      laws relating to, or affecting generally the enforcement of, creditors' rights
      and remedies or by other equitable principles of general application. The
      Company has duly and validly authorized and reserved for issuance shares of
      Common Stock sufficient in number for the conversion of the exercise of the
      Warrants. The Company further acknowledges that its obligation to issue Warrant
      Shares upon exercise of the Warrants in accordance with this Agreement is
      absolute and unconditional regardless of the dilutive effect that such issuance
      may have on the ownership interests of other stockholders of the
      Company. 

    

    3.3. Common
      Stock.
      The
      Company has registered its Common Stock pursuant to Section
      12(b)
      or
      12(g) of
      the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”) and
      is in
      full compliance with all reporting requirements of the Exchange Act, and the
      Company is in compliance with all requirements for the continued listing or
      quotation of its Common Stock, and such Common Stock is currently listed or
      quoted on, the Principal Market. As of the date hereof, the “Principal Market”
is defined as the OTC Bulletin Board and the Company has not received any notice
      regarding, and to its knowledge there is no threat of, the termination or
      discontinuance of the eligibility of the Common Stock for such posting or
      listing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.4. SEC
      Documents.
      The SEC
      Reports contain all material information relating to the Company and its
      operations and financial condition as of their respective dates which
      information is required to be disclosed therein and do not contain any untrue
      statement of a material fact or omit to state a material fact necessary in
      order
      to make the statements contained therein not misleading in light of the
      circumstances under which they were made. Since the date of the financial
      statements included in the SEC Reports, there has been no material adverse
      event
      relating to the Company's business, financial condition or affairs not disclosed
      in the SEC Reports. The SEC Reports do not contain any untrue statement of
      a
      material fact.

     

    3.5. Exemption
      from Registration; Valid Issuances.
      Subject
      to the accuracy of the Investor's representations in Article 2, the sale of
      the
      Shares and the Warrants will not require registration under the Securities
      Act
      and/or any applicable state securities law (other than any Commission, Principal
      Market or state securities filings that may be required to be made by the
      Company subsequent to closing and any registration statement that may be filed
      pursuant hereto). Shares and Warrants will be duly and validly issued, fully
      paid and non-assessable. When issued and paid for in accordance with the
      Warrants, the Warrant Shares will be duly and validly issued, fully paid, and
      non-assessable. Shares, Warrants and Warrant Shares will be free from any liens,
      charges, claims or other encumbrances upon issuance. Neither the sales of the
      Shares and the Warrants pursuant to, nor the Company's performance of its
      obligations under this Agreement and the Warrants will
      (i)
      result in the creation or imposition by the Company of any liens, charges,
      claims or other encumbrances upon the Shares, the Warrants or the Warrant Shares
      or any of the assets of the Company, or
      (ii)
      entitle the holders of outstanding capital shares to preemptive or other rights
      to subscribe for or acquire the capital shares or other securities of the
      Company. None of the securities shall subject the Investor to personal liability
      to the Company or its creditors by reason of the possession
      thereof.

    

    3.6. No
      Directed Selling, General Solicitation or Advertising in Regard to this
      Transaction.
      Neither
      the Company nor any of its affiliates nor, to the knowledge of the Company,
      any
      person acting on its or their behalf
      (i) has
      conducted or will conduct any general solicitation (as that term is used in
      Rule
      502(c)
      of Regulation
      D) or
      general advertising with respect to the sale of the Shares and the Warrants,
      or
      (ii) has
      made or will make any offers or sales of any security or solicited any offers
      to
      buy any security under any circumstances that would require registration of
      the
      sale of the securities under the Securities Act.

    

    3.7. No
      Conflicts.
      The
      execution, delivery and performance of this Agreement and the consummation
      by
      the Company of the transactions contemplated hereby or relating hereto do not
      and will not (i) result in a violation of the Company's charter documents or
      bylaws or other organizational documents or (ii) conflict with, or constitute
      a
      default (or an event which with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation of any agreement, indenture or instrument or
      obligation to which the Company is a party or by which its properties or assets
      are bound, or result in a violation of any law, rule, or regulation, or any
      order, judgment or decree of any court or governmental agency applicable to
      the
      Investor or its properties (except for such conflicts, defaults and violations
      as would not, individually or in the aggregate, have a material adverse effect
      on the Company). The Company is not required to obtain any consent,
      authorization or order of, or make any filing or registration with, any court
      or
      governmental agency in order for it to execute, deliver or perform any of its
      obligations under this Agreement or to sell the Shares and/or Warrants in
      accordance with the terms hereof, provided that for purposes of the
      representation made in this sentence, the Company is assuming and relying upon
      the accuracy of the relevant representations and agreements of the Investor
      herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.8. No
      Material Adverse Change.
      Since
      December 31, 2006 no material adverse effect has occurred or exists with respect
      to the Company, except as disclosed in the SEC Reports filed prior to the date
      hereof and available on EDGAR.

    

    3.9. Litigation
      and Other Proceedings.
      Except
      as disclosed in the SEC Reports, there are no lawsuits or proceedings pending
      or, to the knowledge of the Company, threatened, against the Company, nor has
      the Company received any written or oral notice of any such action, suit,
      proceeding or investigation, which could reasonably be expected to have a
      material adverse effect. Except as set forth in the SEC Reports, no judgment,
      order, writ, injunction or decree or award has been issued by or, to the
      knowledge of the Company, requested of any court, arbitrator or governmental
      agency which could result in a material adverse effect. There is no action,
      proceeding or investigation by the Company currently pending or that the Company
      intends to initiate.

    

    3.10. No
      Misleading or Untrue Communication.
      The
      Company and any person representing the Company, or any other person selling
      or
      offering to sell the Warrants in connection with the transaction contemplated
      by
      this Agreement, have not made, at any time, any oral communication in connection
      with the offer or sale of the same which, together with all such communications,
      including the SEC Reports, taken as a whole, contained any untrue statement
      of a
      material fact or omits to state a material fact necessary in order to make
      the
      statements contained herein or therein not misleading in light of the
      circumstances under which they were made.

    

    3.11 Reservation
      of Common Stock.
      As of
      the date hereof, the Company has reserved and the Company shall continue to
      reserve and keep available at all times shares of Common Stock for the purpose
      of enabling the Company to issue the Warrant Shares pursuant to any exercise
      of
      the Warrants in an amount not less than the number needed to provide for the
      issuance of Warrant Shares, as may be adjusted from time to time. The Company
      further agrees that if at any time the number of shares of Common Stock
      issuable
      upon conversion of the Warrants would cause the Company to be obligated to
      issue
      a number of shares of Common Stock in excess of its authorized capital (after
      taking into account all other capital shares equivalents then existing), it
      shall promptly commence all necessary corporate and stockholder action necessary
      to increase its authorized capital so as to eliminate the aforesaid
      condition.

     

    3.12. Listing
      of Common Stock.
      The
      Company hereby agrees to maintain the listing or quotation of the Common Stock
      on a principal market, and as soon as required by the rules of the principal
      market to list the Shares and the Warrant Shares on the principal market. The
      Company further agrees, if the Company applies to have the Common Stock traded
      on any other principal market, it will include in such application the Shares
      and the Warrant Shares, and will take such other action as is necessary or
      desirable in the opinion of the Investor to cause the Shares and the Warrant
      Shares to be listed on such other principal market as promptly as possible.
      The
      Company will take all action necessary to continue the listing and trading
      of
      its Common Stock on a principal market and will comply in all respects with
      the
      Company's reporting, filing and other obligations under the bylaws or rules
      of
      the principal market.

     

    3.13. Exchange
      Act
      Registration.
      The
      Company will cause its Common Stock to continue to be registered under
      Section
      12(b)
      or
      12(g) of
      the Exchange Act, will use its best efforts to comply in all respects with
      its
      reporting and filing obligations under the Exchange Act.

    

    3.14. Corporate
      Existence; Conflicting Agreements.
      The
      Company will take all steps necessary to preserve and continue the corporate
      existence of the Company. The Company shall not enter into any agreement, the
      terms of which agreement would restrict or impair the right or ability of the
      Company to perform any of its obligations under this Agreement or any of the
      other Transaction Documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.15. Issuance
      of Shares and Warrant Shares.
      The
      sale of the Shares and the Warrants and the issuance of the Warrant Shares
      pursuant to exercise of the Warrants shall be made in accordance with the
      provisions and requirements Section
      4(2)
      or
      Regulation
      D of the
      Securities Act and any applicable state securities law. The Company shall make
      any necessary Commission and “blue sky” filings required to be made by the
      Company in connection with the sale of such securities to the Investor as
      required by all applicable laws.

    

    ARTICLE
      4.

    LEGENDS

    

    4.1 
      Shares
      Legend.
      The
      Shares and the Warrant Shares shall bear the following or similar
      legend:

     

    "THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE STATE SECURITIES LAWS. THESE
      SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
      OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY
      APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
      TO TXP CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED."

     

    

    (i) Warrants
      Legend.
      The
      Warrants shall bear the following or similar legend:

    

    "THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR APPLICABLE
      STATE
      SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
      OF
      THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID
      ACT
      OR ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO TXP CORPORATION THAT SUCH REGISTRATION IS NOT
      REQUIRED."

     

    ARTICLE
      5.

    REGISTRATION
      RIGHTS

    

    5.1
       Mandatory
      Registration.
      The
      Company shall prepare, and, as soon as practicable, but in no event later than
      December 15, 2007 (the“Scheduled
      Filing Date”),
      file
      with the Commission a registration statement on Form SB-2 (the“Registration
      Statement”)
      covering the resale of all of the Shares and the Warrant Shares. In the event
      that Form SB-2 is unavailable for such registration, the Company shall use
      such
      other form as is available for such registration. The Registration Statement
      prepared pursuant hereto shall register for resale that number of shares of
      Common Stock equal to the number of Shares and Warrant Shares as of the
      Scheduled Filing Date. The Company shall use its best efforts to respond to
      any
      comments issued by the Commission with respect to the Registration Statement
      as
      soon as practicable after receipt of such comments and shall use its best
      efforts to cause the Registration Statement to be declared effective by the
      Commission as soon as practicable, but no later than ninety (90) days after
      the
      Scheduled Filing Date (the“Scheduled
      Effectiveness Date”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.2 Non-Registration
      Event.
      The
      Company and the Investor agree that the Investor will suffer damages if the
      Registration Statement is not declared effective by the Commission by the
      Scheduled Effectiveness Date (a “Non-Registration
      Event”)
      and it
      would not be feasible to ascertain the extent of such damages with precision.
      Accordingly, if the Registration Statement is not declared effective on or
      before the Scheduled Effectiveness Date, then the Company shall deliver to
      the
      Investor, as liquidated damages, an amount equal to one percent (1%) for each
      thirty (30) days or part thereof of the Purchase Price for the first sixty
      (60)
      days after the occurrence of a Non-Registration Event. If there is an ongoing
      and uncured Non-Registration Event (an “Ongoing
      Non-Registration Event”)
      during
      the period beginning sixty one (61) days after the Non-Registration Event,
      then
      the Company shall deliver to the Investor, as liquidated damages, an amount
      equal to two percent (2%) for each thirty (30) days or part thereof of the
      Purchase Price after the occurrence of an Ongoing Non-Registration Event.
      Notwithstanding the foregoing, Liquidated Damages shall only accrue during
      a
      Non-Registration Event or Ongoing Non-Registration Event until twelve (12)
      months from the Closing Date. The Company must pay the Liquidated Damages in
      cash or at the Investor's election with shares of Common Stock valued at the
      closing bid price of the Common Stock on the first trading day of each thirty
      day or shorter period for which liquidated damages are payable. Notwithstanding
      the foregoing, the Company shall not be liable to the Investor under this
      Section 5.2 for any events or delays occurring as a consequence of the acts
      or
      omissions of the Investor contrary to the obligations undertaken by Investor
      in
      this Agreement. Liquidated Damages will not accrue nor be payable pursuant
      to
      this Section 5.2 nor will a Non-Registration Event be deemed to have occurred
      for times during which Securities are transferable by the Investor pursuant
      to
      Rule 144(k) under the Securities Act.

     

    5.3 Piggy-Back
      Registrations.
      If, at
      any time prior to the expiration of the Registration Period (as hereinafter
      defined) that there is not an effective Registration Statement covering all
      of
      the Shares and the Warrant Shares, the Company proposes to file with the
      Commission a Registration Statement for its own account or the account of others
      under the Securities Act of any of its securities (other than a Registration
      Statement on Form S-4 or Form S-8 (or their equivalents at such time) relating
      to securities to be issued solely in connection with any acquisition of any
      entity or business or equity securities issuable in connection with stock option
      or other employee benefit plans), the Company shall promptly send to the
      Investor written notice of the Company's intention to file a Registration
      Statement and of the Investor's rights under this Section 5.3 and, if within
      five (5) days after receipt of such notice, the Investor shall so request in
      writing, the Company shall include in such Registration Statement all or any
      part of the Shares and the Warrant Shares the Investor requests to be registered
      for resale, subject to the priorities set forth in this Section 5.3. No right
      to
      registration of the Shares and the Warrant Shares under this Section 5.3 shall
      be construed to limit any registration required under Section 5.1. The
      obligations of the Company under this Section 5.2 may be waived by the Investor.
      In the event that the Registration Statement being filed by the Company under
      this Section 5.3 is for an underwritten offering, the Investor shall, unless
      otherwise agreed to by the Company, offer and sell the Shares and the Warrant
      Shares in an underwritten offering using the same underwriter or underwriters
      and, subject to the provisions of this Agreement, on the same terms and
      conditions as other shares of Common Stock included in such underwritten
      offering. If the managing underwriter(s) advise the Company, in writing, that
      in
      their reasonable good faith opinion, marketing or other factors dictate that
      a
      limitation on the number of shares of Common Stock which may be included in
      the
      Registration Statement is necessary to facilitate and not adversely affect
      the
      proposed offering, then the Company shall include in such
      registration:

    

    (1) 
      first, all securities the Company proposes to sell for its own
      account;

    

    (2) second,
      all of the securities the Investor requests to be registered for his account;
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (3) third,
      up to the full number of securities proposed to be registered for the account
      of
      the holders of securities entitled to inclusion of their securities in the
      Registration Statement by reason of demand or mandatory registration
      rights.

    

    5.4
       The Company shall keep each of the Registration Statement required to be
      filed hereunder effective pursuant to Rule 415 at all times until (i) the date
      as of which the Investor may sell all of the Shares and the Warrant Shares
      covered by such Registration Statement pursuant to Rule 144(k) promulgated
      under
      the Securities Act (or successor thereto) or (ii) the date on which (A) the
      Investor shall have sold all of the Shares and the Warrant Shares covered by
      such Registration Statement and (B) none of the Shares and the Warrants are
      outstanding (the "Registration
      Period"),
      each
      of which Registration Statements (including any amendments or supplements
      thereto and prospectuses contained therein) shall not contain any untrue
      statement of a material fact or omit to state a material fact required to be
      stated therein, or necessary to make the statements therein, in light of the
      circumstances in which they were made, not misleading.

     

    5.5 The
      Company shall prepare and file with the Commission such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      the
      prospectus used in connection with such Registration Statement, which prospectus
      is to be filed pursuant to Rule 424 promulgated under the Securities Act, as
      may
      be necessary to keep such Registration Statement effective at all times during
      the Registration Period, and, during such period, comply with the provisions
      of
      the Securities Act with respect to the disposition of all the Shares and the
      Warrant Shares covered by such Registration Statement until such time as all
      of
      such Shares and Warrant Shares shall have been disposed of in accordance with
      the intended methods of disposition by the Investor as set forth in such
      Registration Statement.

    

    5.6 The
      Investor agrees that the Company shall not be precluded from registering any
      additional shares of its Common Stock underlying securities of the Company
      in
      the Registration Statement.

    

    5.7 All
      expenses incurred in connection with registrations, filings, or qualifications
      pursuant to Article 5, including all registration, filing, and qualification
      fees; printers' and accounting fees; fees and disbursements of counsel for
      the
      Company shall be borne and paid by the Company.  

     

    ARTICLE
      6.

    GENERAL
      PROVISIONS

     

    6.1 Specific
      Performance. The
      parties hereto acknowledge and agree that the breach of this Agreement would
      cause irreparable damage to the non-breaching parties and that the non-breaching
      parties will not have an adequate remedy at law. Therefore, the obligations
      of
      each of the parties under this Agreement, shall be enforceable by a decree
      of
      specific performance issued by any court of competent jurisdiction, and
      appropriate injunctive relief may be applied for and granted in connection
      therewith. Such remedies shall, however, be cumulative and not exclusive and
      shall be in addition to any other remedies which any party may have under this
      Agreement or otherwise.

     

    6.2 Further
      Assurances. The
      parties hereto each agree to execute and deliver such other documents or
      agreements and to take such other action as may be reasonably necessary or
      desirable for the implementation of this Agreement and the consummation of
      the
      transactions contemplated hereby.

     

    6.3 Governing
      Law; Venue.
      This
      Agreement and the rights of the parties hereunder shall be governed solely
      by,
      and shall be interpreted and enforced solely in accordance with, the laws of
      the
      State of Texas, without regard to the principles of conflicts of laws thereof.
      Any disputes that may result between the Parties shall be related to this
      Agreement shall be exclusively resolved using binding Arbitration according
      to
      the rules of the American Arbitration Association. The arbitrators ruling for
      any such disputes shall be deemed final and not subject to appeal. Venue for
      such proceeding shall be in Dallas County, Texas.  

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.4 Headings. Section
      headings of this Agreement are for reference purposes only and are to be given
      no effect in the construction or interpretation of this Agreement.

     

    6.5 Binding
      Effect. This
      Agreement is irrevocable and shall be binding upon and inure to the benefit
      of
      the parties and their respective successors and permitted assigns.

     

    6.6 Counterparts.
      This
      Agreement may be executed in counterparts, each of which when executed by any
      party will be deemed to be an original and all of which counterparts will
      together constitute one and the same Agreement. Delivery of executed copies
      of
      this Agreement by telecopier will constitute proper delivery, provided that
      originally executed counterparts are delivered to the parties within a
      reasonable time thereafter.

     

    6.7 Expenses.
      Each
      party shall pay its own expenses incident to the negotiation, preparation and
      performance of this Agreement and the transactions contemplated hereby,
      including all fees and expenses of its counsel and accountants for all
      activities of such counsel and accountants undertaken pursuant to this
      Agreement, whether or not the transactions contemplated hereby are
      consummated.

     

    6.8 Amendments;
      Waivers.
      This
      Agreement may not be amended or modified, nor may compliance with any condition
      or covenant set forth herein be waived, except by a writing duly and validly
      executed by Investor and the Company, or, in the case of a waiver, the party
      waiving compliance. No delay on the part of any party in exercising any right,
      power or privilege hereunder shall operate as a waiver thereof, nor shall any
      waiver on the part of any party of any such right, power or privilege, or any
      single or partial exercise of any such right, power or privilege, preclude
      any
      further exercise thereof or the exercise of any other such right, power or
      privilege.

     

    5.10 Notices.
      All
      notices, requests, and other communications given or made pursuant to this
      Agreement shall be in writing and shall be deemed effectively given, delivered
      and received (i) upon personal delivery to the party to be notified; (ii) when
      sent by confirmed electronic mail or facsimile if sent during normal business
      hours of the recipient, and if not so confirmed, then on the next business
      day;
      (iii) five (5) days after having been sent by registered or certified mail,
      return receipt requested, postage prepaid; or (iv) one (1) business day after
      the business day of deposit with a nationally recognized overnight courier,
      specifying next-day delivery, with written verification of receipt. All
      communications shall be sent to the respective parties at their addresses as
      set
      forth on the signature page hereto or to such email address, facsimile number,
      or address as subsequently modified by written notice given in accordance with
      this Section 5.10.

     

    [Remainder
      of page intentionally left blank.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, this Agreement has been duly executed as of the day and year
      first written above.

     

    
      
        	 	 	 
	 	
                TXP
                  CORPORATION

              
	 
 	 
 	 
 
	
              	
              	/s/
                Michael C.
                Shores
	 	
                

                Name:
                  Michael C. Shores

              
	 	
                Title:
                  Chief Executive Officer

              

      

    

     

    
      
        
          	 	 	 
	 	
                  
                    DYNA
                      PORTER INTERNATIONAL LIMITED

                  

                
	 
 	 
 	 
 
	
                	
                	/s/ Feng Li-Ting
	 	
                  

                  Name:
                    Feng Li-Ting

                
	 	
                  Title:
                    Director

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      “E”

     

    CONFIDENTIAL
      INVESTOR QUESTIONNAIRE

    

    The
      Subscriber represents and warrants that he, she or it comes within one category
      marked below, and that for any category marked, he, she or it has truthfully
      set
      forth, where applicable, the factual basis or reason the Subscriber comes within
      that category. ALL INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY
      CONFIDENTIAL. The undersigned agrees to furnish any additional information
      which
      the Company deems necessary in order to verify the answers set forth
      below.

     

    Category
      A _____     The undersigned is an individual (not
      a partnership, corporation, etc.) whose individual net worth, or joint net
      worth
      with his or her spouse, presently exceeds $1,000,000.

    

    Explanation.
      In calculating net worth you may include equity in personal property and real
      estate, including your principal residence, cash, short-term investments, stock
      and securities. Equity in personal property and real estate should be based
      on
      the fair market value of such property less debt secured by such
      property.

    

    Category
      B _____     The undersigned is an individual (not
      a partnership, corporation, etc.) who had an income in excess of $200,000 in
      each of the two most recent years, or joint income with his or her spouse in
      excess of $300,000 in each of those years (in each case including foreign
      income, tax exempt income and full amount of capital gains and losses but
      excluding any income of other family members and any unrealized capital
      appreciation) and has a reasonable expectation of reaching the same income
      level
      in the current year.

    

    Category
      C _____     The undersigned is a director or executive
      officer of the Company which is issuing and selling the Securities.

    

    Category
      D _____     The undersigned is a bank; a savings and
      loan association; insurance company; registered investment company; registered
      business development company; licensed small business investment company
      (“SBIC”); or employee benefit plan within the meaning of Title 1 of ERISA and
      (a) the investment decision is made by a plan fiduciary which is either a bank,
      savings and loan association, insurance company or registered investment
      advisor, or (b) the plan has total assets in excess of $5,000,000 or (c) is
      a
      self directed plan with investment decisions made solely by persons that are
      accredited investors. (describe entity)

    
      _________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

    Category
      E _____     The undersigned is a private business
      development company as defined in section 202(a)(22) of the Investment Advisors
      Act of 1940. (describe entity)

    
      _________________________________________________________________________________________________________________________________
        
        _________________________________________________________________________________________________________________________________

         

      

    

    Category
      F _____     The undersigned is either a corporation,
      partnership, Massachusetts business trust, or non-profit organization within
      the
      meaning of Section 501(c)(3) of the Internal Revenue Code, in each case not
      formed for the specific purpose of acquiring the Common Stock and with total
      assets in
      excess
      of $5,000,000.
(describe
      entity)

    _________________________________________________________________________________________________________________________________
      
      
      

      
        
          _________________________________________________________________________________________________________________________________

           

        

      

    

    
    

    Category
      G _____     The undersigned is a trust with total
      assets in excess of $5,000,000, not formed for the specific purpose of acquiring
      the Securities, where the purchase is directed by a “sophisticated investor” as
      defined in Regulation 506(b)(2)(ii) under the Act.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Category
      H _____     The undersigned is an entity (other than a
      trust) in which all of the equity owners are “accredited investors” within one
      or more of the above categories. If relying upon this Category alone, each
      equity owner must complete a separate copy of this Agreement. (describe
      entity)

    
      _________________________________________________________________________________________________________________________________

      _________________________________________________________________________________________________________________________________

    

     

    Category
      I _____       The undersigned is not within any of
      the categories above and is therefore not an accredited investor.

     

    The
      undersigned agrees that the undersigned will notify the Company at any time
      on
      or prior to the Closing Date in the event that the representations and
      warranties in this Agreement shall cease to be true, accurate and
      complete.

     

    6.9 SUITABILITY
      (please
      answer each question)

     

    (a) For
      an individual Subscriber, please describe your current employment, including
      the
      company by which you are employed and its principal business:

    
      _________________________________________________________________________________________________________________________________
        
        _________________________________________________________________________________________________________________________________
          
          _________________________________________________________________________________________________________________________________
            
            _________________________________________________________________________________________________________________________________

             

          

        

      

    

    (b) For
      an individual Subscriber, please describe any college or graduate degrees held
      by you:

    
      _________________________________________________________________________________________________________________________________
        
        _________________________________________________________________________________________________________________________________
          
          _________________________________________________________________________________________________________________________________
            
            _________________________________________________________________________________________________________________________________

             

          

        

      

    

    (c) For
      all Subscribers, please list types of prior investments:

    
      _________________________________________________________________________________________________________________________________
        
        _________________________________________________________________________________________________________________________________
          
          _________________________________________________________________________________________________________________________________
            
            _________________________________________________________________________________________________________________________________
  

        

      

    

    (d) For
      all Subscribers, please state whether you have participated in other
      private placements
      before:

     

    YES_______   NO_______

     

    (e) If
      your answer to question (d) above was “YES”, please indicate frequency of such
      prior participation in
      private placements
      of:

     

    
      	
               

            	 	
              Public

              Companiesss

            	 	
              Private

              Companies

            	 	
              Public
                or Private VoIP or other

              Communications
                Companies

            
	
              Frequently

            	 	
               

            	 	
               

            	 	
               

            
	
              Occasionally

            	 	
               

            	 	
               

            	 	
               

            
	
              Never

            	 	
               

            	 	
               

            	 	
               

            

    

    

    (f) For
      individual Subscribers, do you expect your current level of income to
      significantly decrease in the foreseeable future:

     

    YES_______   NO_______

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g) For
      trust, corporate, partnership and other institutional Subscribers, do you expect
      your total assets to significantly decrease in the foreseeable
      future:

     

    YES_______   NO_______

     

    (h) For
      all Subscribers, do you have any other investments or contingent liabilities
      which you reasonably anticipate could cause you to need sudden cash requirements
      in excess of cash readily available to you:

     

    YES_______   NO_______

     

    (i) For
      all Subscribers, are you familiar with the risk aspects and the non-liquidity
of
      investments such as the securities for which you seek to subscribe?

     

    YES_______   NO_______

     

    (j) 
      For all Subscribers, do you understand that there is no guarantee of financial
      return on this investment and that you run the risk of losing your entire
      investment?

     

    YES_______   NO_______

     

    6.10 MANNER
      IN WHICH TITLE IS TO BE HELD.
      (circle
      one)

     

    (a) Individual
      Ownership

     

    (b) Community
      Property

     

    (c) Joint
      Tenant with Right of  Survivorship (both parties must sign)

     

    (d) Partnership*

     

    (e) Tenants
      in Common

     

    (f) Company*

     

    (g) Trust*

     

    (h) Other*

     

    *If
      Securities are being subscribed for by an entity, the attached Certificate
      of
      Signatory must also be completed.

     

    6.11 NASD
      AFFILIATION.

     

    Are
      you
      affiliated or associated with an NASD member firm (please check
      one):

     

    Yes
      _________  No __________

     

    If
      Yes,
      please describe:

    
      _________________________________________________________________________________________________________________________________
        
        _________________________________________________________________________________________________________________________________
          
          _________________________________________________________________________________________________________________________________

          *If
            Subscriber is a Registered Representative with an NASD member firm, have
            the
            following acknowledgment signed by the appropriate
            party:

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      undersigned NASD member firm acknowledges receipt of the notice required by
      Article 3, Sections 28(a) and (b) of the Rules of Fair Practice.

     

    
      	
            	 	 	
            
	
              

              Name
                of NASD Member Firm

            	 	 	
            
	 	 	 	 
	
              By: 

              
                

              
Authorized Officer	 	 	 
	 	 	 	 
	Date:
              ____________________________	 	 	 
	
            	 	 	
            

    

     

    6.12 The
      undersigned is informed of the significance to the Company of the foregoing
      representations and answers contained in the Confidential Investor Questionnaire
      contained in this Article VII and such answers have been provided under the
      assumption that the Company will rely on them.

     

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      OF PAGE INTENTIONALLY LEFT BLANK]

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