Document:

EXHBIT 10.6

                      TECHNOLGY SHARING WARRANT TO PURCHASE
                           COMMON STOCK OF XSUNX, INC.

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EXHIBIT 10.6

Warrant Grant # 02-2004

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS
AND UNTIL REGISTERED UNDER THE SECURITIES ACT OR UNLESS AN EXEMPTION THEREFROM
IS AVAILABLE.

                      TECHNOLGY SHARING WARRANT TO PURCHASE
                           COMMON STOCK OF XSUNX, INC.

         This Technology Sharing Warrant ("Warrant") is issued as consideration
for access to MVS know how and services at cost pursuant to that certain
Technology Sharing and License Agreement effective September 17, 2004 as set
forth at Paragraph 17 hereof .

         This Warrant certifies that MVSystems, Inc. (the "Holder") for value
received, is entitled to purchase from Xsunx, Inc. (the "Company") One Million
(1,000,000) shares of the Company's Common Stock (the "Common Stock") for a per
share exercise price equal to $ .15 (the "Per Share Exercise Price"). This right
may be exercised subject to the conditional vesting provisions of Paragraph 1
below, and upon surrender to the Company at its principal office (or at such
other location as the Company may advise the Holder in writing) of this Warrant,
properly endorsed, with the Notice of Exercise and Subscription Form attached
hereto duly filled in and signed, if applicable, and upon payment in cash or
other form of good and immediately available funds reasonably satisfactory to
the Company of the aggregate Per Share Exercise Price for the full number of
shares for which this Warrant is being exercised determined in accordance with
the provisions hereof.

1.       RIGHT TO EXERCISE

         Subject to the Vesting Schedule 1.1. below and the other conditions set
         forth in this Agreement, all or part of this Warrant may be exercised
         prior to its expiration from the date hereof up to and including 5:00
         p.m. (Denver City time) on September 17, 2009 (the "Expiration Date")at
         the time or times set forth herein.

                           1.1 Vesting Schedule.

                           (i) This Warrant shall become exercisable in the
                           amount of 250,000 shares upon the satisfactory
                           completion of Phase 2 under the MVS Phase 2
                           Development Agreement.

                           (ii) This Warrant shall become exercisable in the
                           amount of 250,000 shares upon the satisfactory
                           completion, as reasonably determined by the XsunX

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                           Board of Directors, of any subsequent phase of
                           development as may be defined under the an MVS future
                           development proposal.

                           (iii) The Warrant shall become exercisable in the
                           amount of 500,000 shares upon the Commercialization
                           of an XsunX process.

2.       ISSUANCE OF CERTIFICATES.

         Certificates for the shares of Common Stock acquired upon exercise of
this Warrant, together with any other securities or property to which the Holder
is entitled upon such exercise, will be delivered to the Holder by the Company
at the Company's expense within a reasonable time after this Warrant has been so
exercised and payment of the full Per Share Exercise Price has been delivered to
the Company as set forth above and such funds have been confirmed to the account
of the Company. The Company will deliver authorization instructions to its share
transfer agent for the issuance of the above referenced Common Stock within
three (3) business days of satisfaction of the above requirements.

         Each stock certificate so delivered will be in such denominations of
Common Stock as may be requested by the Holder and will be registered in the
name of the Holder. In case of a purchase of less than all the shares that may
be purchased under this Warrant, the Company will cancel this Warrant and
execute and deliver a new Warrant or Warrants of like tenor for the balance of
the shares purchasable under this Warrant to the Holder within a reasonable time
after surrender of this Warrant.

3.       SHARES FULLY-PAID, NONASSESSABLE, ETC.

         All shares of Common Stock issued upon exercise of this Warrant will,
upon issuance, be duly authorized, validly issued, fully-paid and nonassessable
and free of all taxes, liens and charges with respect to the issue thereof. The
Company will use reasonable commercial efforts to reserve and keep available out
of its authorized but unissued shares of Common Stock, solely for the purpose of
effecting the exercise of this Warrant, such number of its shares of Common
Stock as from time to time are sufficient to effect the full exercise of this
Warrant. If at any time the number of authorized but unissued shares of Common
Stock are not sufficient to effect the exercise of this Warrant, the Company
will use reasonable commercial efforts to take such corporate action as may, in
the opinion of its counsel, be reasonably necessary to increase its authorized
but unissued shares of Common Stock to such number of shares as are sufficient
for such purpose.

4.       NET ISSUE EXERCISE.

         Notwithstanding any provisions herein to the contrary, if the fair
market value of one share of the Company's Common Stock is greater than the Per
Share Exercise Price (at the date of calculation as set forth below), in lieu of
exercising this Warrant for cash, the Holder may elect to receive shares equal
to the value (as determined below) of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company,

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together with the properly endorsed Notice of Exercise and Subscription Form and
notice of such election, in which event the Company will issue to the Holder a
number of shares of Common Stock computed using the following formula:

                  X = Y (A-B)
                      --------
                           A

         Where    X = the number of shares of Common Stock to be issued to the
Holder

                  Y = the number of shares of Common Stock purchasable under
this Warrant or, if only a portion of this Warrant is being exercised, the
portion of this Warrant being canceled (at the date of such calculation)

                  A = the fair market value of one share of the Company's Common
Stock (at the date of such calculation)

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

         For purposes of the above calculation, fair market value of one share
of Common Stock will be the average of the closing bid prices of the Company's
shares of Common Stock as quoted on the New York Stock Exchange (the "NYSE") (or
on such other United States stock exchange or public trading market on which the
shares of the Company trade if, at the time of the election, they are not
trading on the NYSE), for the five (5) consecutive trading days immediately
preceding the date of the date the completed, executed Notice of Exercise and
Subscription Form is received, or (ii) in the absence of an established market
or public marketability for the Stock due to trading restrictions, the fair
market value shall be determined in good faith by the Administrator and such
determination shall be conclusive and binding on all persons.

5.       ADJUSTMENTS.

         5.1 Adjustment for Stock Splits and Combinations. If the Company at any
time or from time to time during the term of this Warrant effects a subdivision
of the outstanding Common Stock, the Per Share Exercise Price in effect
immediately before that subdivision will be proportionately decreased and the
number of remaining shares that can be purchased under this warrant shall be
proportionatly increased to effect the same subdivision of warrants as with the
outstanding Common Stock. Conversely, if the Company at any time or from time to
time during the term of this Warrant combines the outstanding shares of Common
Stock into a smaller number of shares, the Per Share Exercise Price in effect
immediately before the combination will be proportionately increased and the
number of remaining shares that can be purchased under this warrant shall be
proportionatly decreased to effect the same subdivision of warrants as with the
outstanding Common Stock. Any adjustment under this Section 5.1 will become
effective at the close of business on the date the subdivision or combination
becomes effective.

         5.2 Adjustment for Reclassification, Exchange and Substitution. If at
any time or from time to time during the term of this Warrant the Common Stock
issuable upon the exercise of this Warrant is changed into the same or a
different number of shares of any class or classes of stock, whether by
recapitalization, reclassification or otherwise (other than a recapitalization,

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subdivision, combination, reclassification or exchange provided for elsewhere in
this Section 5), the Holder will have the right thereafter to exercise this
Warrant for the kind and amount of stock and other securities and property
receivable upon such recapitalization, reclassification or other change into
which the shares of Common Stock issuable upon exercise of this Warrant
immediately prior to such recapitalization, reclassification or change could
have been converted, all subject to further adjustment as provided herein or
with respect to such other securities or property by the terms thereof.

         5.3 Reorganizations. If at any time or from time to time during the
term of this Warrant there is a capital reorganization of the Common Stock
(other than a recapitalization, subdivision, combination, reclassification or
exchange provided for elsewhere in this Section 5), as a part of such capital
reorganization, provision will be made so that the Holder will thereafter be
entitled to receive upon exercise of this Warrant the number of shares of stock
or other securities or property of the Company to which a holder of the number
of shares of Common Stock deliverable upon exercise of this Warrant would have
been entitled on such capitalization reorganization, subject to adjustment in
respect of such stock or securities by the terms thereof.

6.       OBLIGATION TO SELL.

         Notwithstanding anything herein to the contrary, if at any time
following Holder's acquisition of Shares hereunder, stockholders of the Company
owning 51% or more of the shares of the Company (on a fully diluted basis) (the
"Control Sellers") enter into an agreement (including any agreement in
principal) to transfer all of their shares to any person or group of persons who
are not affiliated with the Control Sellers, such Control Sellers may require
each stockholder who is not a Control Seller (a "Non-Control Seller") to sell
all of their shares to such person or group of persons at a price and on terms
and conditions the same as those on which such Control Sellers have agreed to
sell their shares, other than terms and conditions relating to the performance
or non-performance of services. For the purposes of the preceding sentence, an
affiliate of a Control Seller is a person who controls, which is controlled by,
or which is under common control with, the Control Seller.

7.       STOCKHOLDERS AGREEMENT

         As a condition to the transfer of Stock pursuant to this Warrant, the
Company, in its sole and absolute discretion, may require the Holder to execute
and become a party to any agreement by and among the Company and a material
number of its stockholders which exists on or after the effective date of this
Warrant (the "Stockholders Agreement"). If the Holder becomes a party to a
Stockholders Agreement, in addition to the terms of this Warrant, the terms and
conditions of Stockholders Agreement shall govern Holders's rights in and to the
Stock; and if there is any conflict between the provisions of the

Stockholders Agreement and this Warrant, the provisions of the Stockholders
Agreement shall be controlling. Notwithstanding anything to the contrary in this
Section 7, if the Stockholders Agreement contains any provisions which would
violate Colorado corporate law if applied to the participant, the terms of this
Warrant shall govern the participant's rights with respect to such provisions.

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8.       TAXES.

         The Company shall not become obligated for or pay any taxes imposed
upon the Holders by reason of the issuance of this Warrant or the exercise
hereof or otherwise in connection with the shares of Common Stock to be issued
upon exercise of this Warrant. Notwithstanding the foregoing, the Company may
withhold from any shares of Common Stock to be issued upon exercise of this
Warrant such amounts as may be reasonably required to satisfy any backup
withholding or other withholding obligation of the Company with regard to the
issuance of this Warrant or the exercise hereof or otherwise in connection with
the shares of Common Stock to be issued upon exercise of this Warrant.

9.       NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY.

         Nothing contained in this Warrant will be construed as conferring upon
the Holder the right to vote or to consent or to receive notice as a shareholder
of the Company or any other matters or any rights whatsoever as a shareholder of
the Company. No dividends or interest will be payable or accrued in respect of
this Warrant or the interest represented hereby or the shares purchasable
hereunder until, and only to the extent that, this Warrant has been exercised.

10.      TRANSFER OR ASSIGNMENT OF Warrant

         Except as provided herein, the Holder may not assign, sell or transfer
the Warrant, in whole or in part. The Company may however, in its sole
discretion permit the transfer or assignment of this Warrant and all rights
hereunder subject to any other written agreement between the Holder and the
Company and compliance with applicable Federal and state securities laws and the
restrictions.

11.      MODIFICATION AND WAIVER.

         This Warrant and any provision hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of the same is sought.

12.      NOTICES.

         Any notice required by the provisions of this Warrant will be in
writing and will be deemed effectively given: (a) upon personal delivery to the
party to be notified; (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient; if not, then on the next business
day; (c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid; or (d) one (1) day after deposit with
a nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt. All notices will be addressed to the Holder at
the address of the Holder appearing on the books of the Company.

Notice shall be addressed to the Company at:

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                                    XsunX, Inc
                                    Att: President
                                    65 Enterprise
                                    Aliso Viejo, CA 92656
                                    Fax: (949) 330-8061

                                    With copy to (which copy shall not
constitute notice):

                                    Michael A. Littman, Attorney
                                    7609 Ralston Road
                                    Arvada, CO 80002
                                    Fax: (303) 431-1567

13.      LOST WARRANTS.

         Upon receipt of evidence reasonably satisfactory to the Company of the
loss, theft, destruction, or mutilation of this Warrant, and upon receipt of an
indemnity, surety, undertaking or security reasonably satisfactory to the
Company (and in the case of any such mutilation upon surrender and cancellation
of the original mutilated Warrant), the Company shall, in accordance with
applicable law, make and deliver a new Warrant, of like tenor, in lieu of the
lost, stolen, destroyed or mutilated Warrant. The Company may, as a condition
precedent to making or delivering a new Warrant, reasonably require that the
Holder make and deliver to the Company an affidavit or declaration made under
penalty of perjury, as to the loss, theft, destruction, or mutilation of this
Warrant.

14.      FRACTIONAL SHARES.

         No fractional shares of Common Stock will be issued upon exercise of
this Warrant. If the conversion would result in the issuance of any fractional
share, the Company may, in lieu of issuing any fractional share, pay cash equal
to the product of such fraction multiplied by the closing bid price of the
Company's Common Stock on the date of conversion.

15.      NO REGISTRATION RIGHTS

         The Company may, but shall not be obligated to, register or qualify the
sale of Shares under the Securities Act or any other applicable law. The Company
shall not be obligated to take any affirmative action in order to cause the sale
of Shares under this Warrant to comply with any law.

16.      RESTRICTIONS ON TRANSFER

         16.1 Securities Law Restrictions. Regardless of whether the offering
and sale of Shares under this Warrant have been registered under the Securities
Act or have been registered or qualified under the securities laws of any state,
the Company, at its discretion, may impose restrictions upon the sale, pledge or
other transfer of such Shares (including the placement of appropriate legends on

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stock certificates or the imposition of stop-transfer instructions) if, in the
judgment of the Company, such restrictions are necessary or desirable in order
to achieve compliance with the Securities Act, the securities laws of any state
or any other law.

         16.2 Market Stand-Off. In the event of an underwritten public offering
by the Company of its equity securities pursuant to an effective registration
statement filed under the Act, including the Company's initial public offering
(a "Public Offering"), the Holder shall not transfer for value any shares of
Stock without the prior written consent of the Company or its underwriters, for
such period of time from and after the effective date of such registration
statement as may be requested by the Company or such underwriters (the "Market
Stand-Off"). The Market Stand-off shall be in effect for such period of time
following the date of the final prospectus for the offering as may be requested
by the Company or such underwriters. In the event of the declaration of a stock
dividend, a spin-off, a stock split, an adjustment in conversion ratio, a
recapitalization or a similar transaction affecting the Company's outstanding
securities without receipt of consideration, any new, substituted or additional
securities which are by reason of such transaction distributed with respect to
any Shares subject to the Market Stand-Off, or into which such Shares thereby
become convertible, shall immediately be subject to the Market Stand-Off. In
order to enforce the Market Stand-Off, the Company may impose stop-transfer
instructions with respect to the Shares acquired under this Warrant until the
end of the applicable stand-off period.

         16.3 Investment Intent at Grant. The Holder represents and agrees that
the Shares to be acquired upon exercising this Warrant will be acquired for
investment, and not with a view to the sale or distribution thereof.

         16.4 Investment Intent at Exercise. In the event that the sale of
Shares under this Warrant is not registered under the Securities Act but an
exemption is available which requires an investment representation or other
representation, the Holder shall represent and agree at the time of exercise
that the Shares being acquired upon exercising this option are being acquired
for investment, and not with a view to the sale or distribution thereof, and
shall make such other representations as are deemed necessary or appropriate by
the Company and its counsel.

         16.5 Rule 144. Holder acknowledges and understands that the Shares may
be subject to transfer and sale restrictions imposed pursuant to SEC Rule 144 of
the Rules promulgated under the Securities Act of 1933 ("Act") and the
regulations promulgated thereunder. Holder shall comply with Rule 144 and with
all policies and procedures established by the Company with regard to Rule 144
matters. Holder acknowledged that in the event that the sale of Shares under
this Warrant is not registered under the Securities Act the Company or its
attorneys or transfer agent will require a restrictive legend on the certificate
or certificates representing restrictions on transfer of the Shares imposed by
Rule 144.

         16.6 Legends. All certificates evidencing Shares purchased under this
Warrant in an unregistered transaction shall bear the following legend (and such
other restrictive legends as are required or deemed advisable under the
provisions of any applicable law):

"THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF

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COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS
NOT REQUIRED."

         16.7 Removal of Legends. If, in the opinion of the Company and its
counsel, any legend placed on a stock certificate representing Shares sold under
this Warrant no longer is required, the holder of such certificate shall be
entitled to exchange such certificate for a certificate representing the same
number of Shares but without such legend.

         16.8 Administration. Any determination by the Company and its counsel
in connection with any of the matters set forth in this Section 16 shall be
conclusive and binding on the Holder and all other persons.

17.      Technology Sharing and License Agreement

         This Warrant is issued pursuant to that certain Technology Sharing and
License Agreement effective September 17, 2004. The terms of the Technology
Sharing and License Agreement shall control over any conflicting terms in this
Warrant. Any breach under the Technology Sharing and License Agreement shall
constitue a breach under this Warrant and allows the Company to terminate this
Warrant in whole or in part.

18.      GOVERNING LAW; VENUE.

         This Warrant will be construed and enforced in accordance with, and the
rights of the parties will be governed by, the laws of the State of Colorado
without regard to conflict of laws principles. Venue in any action arising by
reason of this Warrant shall lie exclusively in Orange County, California.

                          [See Attached Signature Page]

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This Warrant is made effective as of this 17th day of September, 2004.

                              COMPANY:   Xsunx, Inc., a Colorado corporation

                                         By: /s/ Tom M. Djokovich
                                             ---------------------------------
                                         Name:  Tom M. Djokovich
                                         Title:   Chief Executive Officer

                              HOLDER:    MVSystems, Inc., a Colorado Corporation

                                         By: ________________________________

                                         Name:

                                         Title:

                                         ------------------------------------
                                         [Address]

                                         ------------------------------------
                                         [Address]

                                         ------------------------------------
                                         [Address]

                                         ------------------------------------
                                         [Tax Identification]

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                               EXHIBIT TO WARRANT

                    SUBSCRIPTION FORM AND NOTICE OF EXERCISE

Xsunx, Inc.                                               Date:
Attn: President
65 Enterprise
Aliso Viejo, CA 92656

Ladies and Gentlemen:

                  The undersigned, the holder of the enclosed Warrant, hereby
irrevocably elects to exercise the purchase rights represented by the Warrant
and to purchase thereunder __________ shares of Common Stock of XSUNX, INC. (the
"Company"), and herewith encloses payment of $___________ and/or ___________
shares of the Company's common stock, (the "Purchase Price") in full payment of
the Purchase Price of such shares being purchased.

Exercise of the Warrant shall not be deemed effective unless and until good and
immediately available funds in the full amount of the Purchase Price have been
confirmed in the account of the Company. The original Warrant shall be presented
with this Subscription Form and Notice of Exercise.

         The Company may, in its discretion, withhold a portion of some or all
of the exercised shares or other amounts for the payment of taxes or other
items. Holder represents that Holder is not subject to any backup withholding
requirements. Holder acknowledges that the shares of stock of the Company issued
upon exercise will not be entitled to any dividend declared upon such stock
prior to the effective date of exercise of the Warrant.

         Holder hereby constitutes this Subscription Form and Notice of Exercise
as an assignment, deposit tender, and transfer in blank of the Warrant as set
forth therein. Holder hereby irrevocably constitutes and appoints the secretary
of the Company as Holder's attorney in fact to issue shares upon the exercise of
the Warrant and reflect the same on the books and records of the Company, cancel
the Warrant, issue a new Warrant, if applicable, and perform any necessary act
on behalf of Holder, with full power substitution.

                                Very truly yours,

                                -------------------------------------

                                By: __________________________________

                                Title: _________________________________EXHIBIT 10.7

                         TRANSFER OF TRADEMARK AGREEMENT

<PAGE>

EXHIBIT 10.7

                         TRANSFER OF TRADEMARK AGREEMENT

     THIS  AGREEMENT  ("Agreement")  is made  effective as of May 6, 2004 by and
between  XsunX,  Inc.,  a Colorado  corporation  ("XsunX"),  and Western Gas and
Electric Company, a California  corporation  ("Western").  XsunX and Western are
sometimes  herein referred to individually as a "party" and  collectively as the
"parties."

                                 R E C I T A L S

     A.  WHEREAS,  Western  solely owns all rights and  interests  in and to the
registered  trademark consisting of printed words styled as "POWERGLASS" as more
fully set forth herein ("Trademark");

     B. WHEREAS,  Western  desires to assign and transfer,  subject to the terms
and  conditions  set forth  herein,  all rights and interest in the Trademark to
XsunX in exchange for the payment set forth in this Agreement; and

     C. WHEREAS,  XsunX desires to acquire,  subject to the terms and conditions
set forth  herein,  all rights and interest in the Trademark in exchange for the
payment set forth in this Agreement.

     NOW,  THEREFORE,  in consideration of the mutual promises contained herein,
and other good and valuable consideration,  the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows:

                                   ARTICLE 1.

                             ASSIGNMENT OF TRADEMARK

1.1. Assignment of Registered Trademark. Subject to the terms and conditions set
forth in this  Agreement,  including the payment set forth below,  Western shall
execute,  acknowledge, and deliver to XsunX: (i) The separate form of assignment
attached hereto as Exhibit "A;" (ii) all assignment  instruments required by the
United States Patent and Trademark  Office to fully  effectuate  assignment  and
transfer  of the  Trademark  to  XsunX;  and (iii)  any  other  instruments  and
documents  reasonably  required  to  accomplish  the intent and  purpose of this
Agreement.

1.2.  Re-Assignment  of  Trademark.  If  XsunX  should  default  in any  payment
obligation  hereunder  (i.e.,  fail to make payment prior to the expiration of 3
years and 6 months after the effective date of this  Agreement),  become subject
to a bankruptcy proceeding or petition which is not dismissed within 90 days, or
cease to  conduct  business  at any time  prior  to the  latest  due date of any
payment hereunder, XsunX shall execute, acknowledge, and deliver to Western: (i)
a separate form of assignment in the form of the assignment  attached  hereto as
Exhibit "A" but  configured  so as to  constitute an assignment of the Trademark
from XsunX back to  Western  (ii) all  assignment  instruments  required  by the
United States Patent and Trademark  Office to fully  effectuate  assignment  and
transfer of the  Trademark to back to Western;  and (iii) any other  instruments
and documents  reasonably  required to accomplish the intent and purpose of this
Agreement.  XsunX shall have no further  obligation or liability to Western with
regard to the  Trademark.  The  interest  of  Western  in  re-assignment  of the

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Trademark as set forth herein shall be senior to all other interests  granted or
created  by XsunX in the  Trademark,  and XsunX  shall not  pledge or  otherwise
encumber  the  Trademark  in any  manner  which will  violate  the terms of this
Agreement or prevent the above re-assignment to Western.

                                   ARTICLE 2.

                                     PAYMENT

2.1.  Payment.  The purchase  price for the  Trademark  shall be: (i) the sum of
$10,000.00  if  paid  within  one  (1)  year  from  the  effective  date of this
Agreement;  (ii) the sum of $20,000.00 if paid after the conclusion of the first
(1st)  year but prior to the  conclusion  of the  second  (2nd)  year  after the
effective date of this Agreement;  (iii) the sum of $35,000.00 if paid after the
conclusion  of the second (2nd) year but prior to the  conclusion of third (3rd)
year after the effective date of this  Agreement;  or (iv) the sum of $50,000.00
if paid after the conclusion of the third (3rd) year but prior to the conclusion
of  three  (3)  years  and six  (6)  months  after  the  effective  date of this
Agreement. If payment is not made prior to the conclusion of three (3) years and
six (6) months after the effective date of this Agreement, XsunX shall re-assign
the Trademark back to Western as set forth herein.

                                   ARTICLE 3.

                     GENERAL REPRESENTATIONS AND WARRANTIES

3.1. Representations of Western. Western hereby represents and warrants to XsunX
as follows:

     3.1.1 Standing. Western is a corporation duly organized,  validly existing,
and in good standing under the laws of the State of  California,  with corporate
power to own property and carry on its business as it is now being  conducted in
the state of California.

     3.1.2  Authorization  of Transaction.  Western has full power and authority
(including  full  corporate  power and  authority)  to execute and deliver  this
Agreement  and to  perform  its  obligations  hereunder.  Without  limiting  the
generality  of the  foregoing,  the  board  of  directors  of  Western  has duly
authorized  the  execution,  delivery,  and  performance  of this  Agreement  by
Western.  This Agreement constitutes the valid and legally binding obligation of
Western, enforceable in accordance with its terms and conditions.

3.2.  Representations  of XsunX. XsunX hereby represents and warrants to Western
as follows:

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     3.2.1 Standing.  XsunX is a corporation duly organized,  validly  existing,
and in good  standing  under the laws of the State of Colorado,  with  corporate
power to own property and carry on its business as it is now being  conducted in
the state of California.

     3.2.2  Authorization  of  Transaction.  XsunX has full power and  authority
(including  full  corporate  power and  authority)  to execute and deliver  this
Agreement  and to  perform  its  obligations  hereunder.  Without  limiting  the
generality of the foregoing, the board of directors of XsunX has duly authorized
the  execution,  delivery,  and  performance  of this  Agreement by XsunX.  This
Agreement  constitutes  the valid and  legally  binding  obligation  of Western,
enforceable in accordance with its terms and conditions.

                                   ARTICLE 4.

                          INTELLECTUAL PROPERTY MATTERS

4.1. Registration and Prior Assignment. Western represents and warrants that the
Trademark  is a trademark  duly  registered  with the United  States  Patent and
Trademark Office  ("USPTO") and known as "POWERGLASS"  consisting of words only,
as registered  with the USPTO on June 7, 1988 by Utility Power Group pursuant to
registration number 1490978,  serial number 73688747, and as assigned to Western
pursuant to that certain assignment filed with the USPTO as and at reel 2243 and
frame 0449 recorded on February 22, 2001.

4.2. Ownership of Trademark.  Western represents and warrants that Western,  and
Western alone, owns the Trademark free and clear of all liens, encumbrances, and
security and other interests,  and has the right to use and assign the Trademark
without the need for any other license,  sublicense,  agreement,  or permission.
Western has taken all necessary and desirable action to prosecute, maintain, and
protect the Trademark.

4.3. No  Infringement.  Western  warrants and represents that the Trademark does
not infringe or conflict with any intellectual property rights of third parties.
Western has not interfered with, infringed upon,  misappropriated,  or otherwise
come into conflict with any intellectual  property rights of third parties,  and
none of the  directors  and officers  (and  employees  with  responsibility  for
intellectual  property  matters)  of  Western  has  ever  received  any  charge,
complaint,   claim,   demand,   or  notice   alleging  any  such   interference,
infringement,  misappropriation,  or violation (including any claim that Western
must  license or  refrain  from using the  Trademark  or any other  intellectual
property rights of any third party).  To the best knowledge of Western,  and the
directors and officers  (and  employees  with  responsibility  for  intellectual
property  matters) of Western,  no third party has  interfered  with,  infringed
upon, misappropriated, or otherwise come into conflict with the Trademark or any
other  intellectual  property  rights of Western.  With regard to the Trademark,
Western represents that:

     4.3.1. To the best knowledge of Western,  Western possess all right, title,
and  interest  in and to the  item,  free and  clear of any  Security  Interest,
license, or other restriction;

     4.3.2.  To the best  knowledge of Western,  the Trademark is not subject to
any outstanding injunction, judgment, order, decree, ruling, or charge;

                                                                               4

<PAGE>

     4.3.3.  To the best  knowledge  of Western,  no action,  suit,  proceeding,
hearing,  investigation,  charge, complaint,  claim, or demand is pending or, to
the best  knowledge  of Western or any of Western's  directors or officers  (and
employees with  responsibility for intellectual  property matters) of Western is
threatened  which  challenges the legality,  validity,  enforceability,  use, or
ownership of the Trademark; and

     4.3.4.  To the best  knowledge  of  Western,  Western  has never  agreed to
indemnify  any person or entity for or against any  interference,  infringement,
misappropriation, or other conflict with respect to the Trademark.

4.4. Title Remedies. XsunX may notify Western of the assertion of any claim that
the Trademark or the use thereof infringes or violates or is alleged to infringe
upon or  violate  any  trade  secret,  trademark,  copyright,  patent,  or other
proprietary  right of any other party and Western shall  cooperate with XsunX in
the investigation and resolution of any such claim.

4.5. Delivery of Documents. Attached hereto as Exhibit "B" is a true and correct
copy of an assignment  document or other  evidence of ownership of the Trademark
by Western  showing  the  print,  font,  type,  and style of the  Trademark  (if
applicable),  and setting forth all identifying information needed to reasonably
establish  and  defend  ownership  of  the  Trademark.  Western  has  heretofore
identified and delivered to XsunX all  registrations,  assignments,  prosecution
documents,  and all other documents and instruments  pertaining to the Trademark
pertaining  to Western or in the  possession  of Western,  including any and all
licenses, agreements, or other permissions which Western may have granted to any
third party with respect to the  Trademark or any of its  intellectual  property
(together with any exceptions).

                                   ARTICLE 5.

                               GENERAL PROVISIONS

5.1.  Recitals.  The  recitals set forth above are  incorporated  herein by this
reference and made a part of this Agreement.

5.2. Advice of Counsel. Each party has been advised of and understands the terms
and conditions of this Agreement. This Agreement has been freely and voluntarily
entered into and executed by the parties,  each of the parties hereto being duly
represented by counsel or having the benefit of advice of counsel.

5.3.  Amendments.  This Agreement may be amended only by written consent of each
of the parties hereto.

                                                                               4

<PAGE>

5.4.  Further  Acts.  The parties  hereto  shall  cooperate  with each other and
execute such  additional  documents or instruments and perform such further acts
as may  be  reasonably  necessary  to  affect  the  purpose  and  intent  of the
Agreement.

5.5.   Effect  of  Headings.   The  subject   headings  of  the  paragraphs  and
subparagraphs  of this Agreement are included for purposes of convenience  only,
and  shall  not  affect  the  construction  or  interpretation  of  any  of  its
provisions.

5.6. Entire  Agreement;  Modification,  Waiver.  This Agreement  constitutes the
entire agreement between the parties  pertaining to the subject matter contained
in it and supersedes all prior and  contemporaneous  agreement,  representations
and  understandings  of the parties.  No waiver of any of the provisions of this
Agreement shall be deemed,  or shall constitute a waiver of any other provision,
whether or not similar,  nor shall any waiver constitute a continuing waiver. No
waiver  shall be binding  unless  executed  in  writing by the party  making the
waiver.

5.7. Severability.  Should any provision or portion of this Agreement be held or
otherwise  become  unenforceable  or  invalid  for  any  reason,  the  remaining
provisions  and  portions  of  this  Agreement   shall  be  unaffected  by  such
unenforceability or invalidity.

5.8. Counterparts.  This Agreement may be executed simultaneously in one or more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall  constitute one and the same  instrument.  The exhibits  attached
hereto and  initialed  by the parties  are made a part  hereof and  incorporated
herein by this reference.

5.9. Parties in Interest. Nothing in this Agreement, whether express or implied,
is  intended  to  confer  any  rights  or  remedies  under or by  reason of this
Agreement  on any  persons  other than the  parties  to it and their  respective
successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligation or liability of any third party to this Agreement,  nor
shall any  provision  give any third person any right of  subrogation  or action
over against any party to this Agreement.

5.10.  Assignment.  This  Agreement  shall be binding on, and shall inure to the
benefit of, the parties to it and their respective heirs, legal representatives,
successors and assigns.

5.11.  Specific  Performance.  Each party's obligations under this Agreement are
unique. If any party should default in its obligations under this Agreement, the
parties each acknowledge that it would be extremely impracticable to measure the
resulting  damages;  accordingly,  the  nondefaulting  party, in addition to any
other available rights or remedies,  may sue in equity for specific  performance
without the necessity of posting a bond or other security,  and the parties each
expressly waive the defense that a remedy in damages will be adequate.

5.12.  Recovery of Litigation  Costs.  If any legal action or any arbitration or
other proceeding is brought for the enforcement of this Agreement, or because of
an alleged dispute,  breach, default or misrepresentation in connection with any
of the  provisions of this  Agreement,  the  successful  or prevailing  party or

                                                                               5

<PAGE>

parties shall be entitled to recover as an element of their damages,  reasonable
attorneys'  fees and other  costs  incurred  in that  action or  proceeding,  in
addition to any other relief to which they may be entitled.

5.13.  Survival  of  Representations  and  Obligations.   All   representations,
warranties and agreements of the parties contained in this Agreement,  or in any
instrument,  certificate,  opinion or other  writing  provided  for in it, shall
survive the assignment of the Trademark as contemplated herein.

5.14.  Gender;  Number.  Whenever the context of this  Agreement  requires,  the
masculine gender includes the feminine or neuter gender, and the singular number
includes the plural.

5.15.  Governing Law. This Agreement shall be construed in accordance  with, and
governed by, the laws of the State of California.

5.16.  Venue.  This Agreement is to be performed at Orange  County,  California.
Therefore,  venue  for  any  action  brought  regarding  the  interpretation  or
enforcement  of  this  Agreement   shall  lie   exclusively  in  Orange  County,
California.

         IN WITNESS WHEREOF, this Agreement is made effective as of the date
first set forth above.

                                 XsunX:

                                 XsunX, Inc., a Colorado corporation

                                 By: /s/ Tom Djokovich
                                     ---------------------------------
                                     Tom Djokovich, President

                                 Western:

                                 Western Gas and Electric Company, a California
                                 corporation

                                 By: ________________________________

                                     ________________________________
                                       (Print Name and Title)

                                                                               6

<PAGE>

                                   EXHIBIT "A"

                               FORM OF ASSIGNMENT

                                                                               7

<PAGE>

                       ASSIGNMENT OF REGISTERED TRADEMARK

                                  "POWERGLASS"

         For good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Western Gas and Electric Company, a California
corporation ("Western"), hereby sells, assigns, and transfers to XsunX, Inc., a
Colorado corporation ("XsunX"), all right, title, and interest in and to that
certain registered trademark known as "POWERGLASS" consisting of words only, as
registered with the United States Patent and Trademark Office ("USPTO") on June
7, 1988 pursuant to registration number 1490978, serial number 73688747, and as
assigned to Western pursuant to that certain assignment filed with the USPTO as
and at reel 2243 and frame 0449 recorded on February 22, 2001 ("Trademark").

         Western, and Western alone, owns the Trademark free and clear of all
liens, encumbrances, and security and other interests, and has the right to use
and assign the Trademark without the need for any other license, sublicense,
agreement, or permission. Western has taken all necessary and desirable action
to prosecute, maintain, and protect the Trademark.

         This Assignment is made pursuant that certain Transfer of Trademark
Agreement by and between Western and XsunX. The above Transfer of Trademark
Agreement shall control over this Assignment. This Assignment shall be construed
in accordance with, and governed by, the laws of the State of California. This
Assignment is to be performed at Orange County, California. Therefore, venue for
any action brought regarding the interpretation or enforcement of this
Assignment shall lie exclusively in Orange County, California.

         Date:   May __, 2004        Assingor:

                                           Western Gas and Electric Company,
                                           a California corporation

                                           By: ______________________________

                                               ______________________________
                                                 (Print Name and Title)

         Accepted by:                      Assingee:

                                           XsunX, Inc., a Colorado corporation

                                           By: /s/ Tom Djokovich
                                               ------------------------------
                                                  Tom Djokovich, President

                                                                               8

<PAGE>

                                   EXHIBIT "B"

                       EVIDENCE OF OWNERSHIP OF TRADEMARK

                                                                               9

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