Document:

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.

     

    TXP
      CORPORATION

     

    Warrant
      To Purchase Common Stock

     

    
      	Warrant No.: KEF-001 	
              Number
                of Shares:
                2,343,750

            

    

     

    Date
      of
      Issuance: October 11, 2006

    

    TXP
      CORPORATION, a Nevada corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Kuekenhof
      Equity Fund, L.P.
      (the
“Holder”),
      the
      registered holder hereof or his 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) Two
      Million Three Hundred Forty Three Thousand Seven Hundred Fifty (2,343,750)
      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.

     

    Section
      1.  

     

    (a)  This
      Warrant is the common stock purchase warrant (the “Warrant”)
      issued
      pursuant to a certain Agreement (“Agreement”)
      dated
      the date hereof between the Company and the Buyer.

     

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

     

    (i)  “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.

     

    
      
         

      

      
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    (ii)  “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).

     

    (iii)  “Common
      Stock”
means
      (i) the Company’s common stock, par value $0.001 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.

     

    (iv)  “Expiration
      Date”
means
      the date five (5) years from the Issuance Date of this Warrant or, if such
      date
      falls on a Saturday, Sunday or other day on which banks are required or
      authorized to be closed in the City of New York or the State of New York or
      on
      which trading does not take place on the Principal Exchange or automated
      quotation system on which the Common Stock is traded (a “Holiday”),
      the
      next date that is not a Holiday.

     

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

     

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

     

    (vii)  “Other
      Securities”
means
      (i) those options and warrants of the Company issued prior to, and
      outstanding on, the Issuance Date of this Warrant, (ii) the shares of Common
      Stock issuable on exercise of such options and warrants, provided such options
      and warrants are not amended after the Issuance Date of this Warrant and
      (iii) the shares of Common Stock issuable upon exercise of this Warrant.

     

    (viii)  “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.

     

    (ix)  “Principal
      Market”
means
      the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
      Market, the Nasdaq SmallCap Market, whichever is at the time the principal
      trading exchange or market for such security, or the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg or,
      if
      no bid or sale information is reported for such security by Bloomberg, then
      the
      average of the bid prices of each of the market makers for such security as
      reported in the “pink sheets” by the National Quotation Bureau,
      Inc.

     

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

     

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

     

    (xii)  “Warrant
      Exercise Price”
shall
      be $1.00 or as subsequently adjusted as provided in Section 8 hereof.

     

    (xiii)  “Warrant
      Shares”
means
      the shares of Common Stock issuable at any time upon exercise of this Warrant.
      

     

    
      
         

      

      
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    (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. 

     

    (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.
      

     

    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. In lieu
      of
      exercising this Warrant for cash as specified in the preceding sentence, Holder
      may from time to time convert this Warrant, in whole or in part, as a “cashless
      exercise” into a number of Warrant Shares determined by dividing (a) the
      aggregate fair market value of the Warrant Shares or other securities otherwise
      issuable upon exercise of this Warrant minus the aggregate Warrant Exercise
      Price of such Warrant Shares by (b) the fair market value of one Warrant
      Share. 

    

    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 his
      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 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,
      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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    (a)  If
      the
      holder and the Company are unable to agree upon the determination of the Warrant
      Exercise Price within one (1) day of such disputed determination being submitted
      to the holder, then the Company shall immediately submit via facsimile the
      disputed determination of the Warrant Exercise Price or the Closing Bid Price
      to
      an independent, reputable investment banking firm. The Company shall cause
      the
      investment banking firm or the accountant, as the case may be, to perform the
      determinations 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. Such investment banking firm’s or accountant’s determination or
      calculation, as the case may be, shall be deemed conclusive absent manifest
      error.

     

    (b)  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.

     

    (c)  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.

     

    Call
      Option of the Company.
       The
      Company shall have the option to call all or a portion of this Warrant so long
      as (i) the closing bid price of the Company’s Common Stock is trading at or
      above $1.50 for twenty (20) consecutive trading days immediately preceding
      the
      call date, and (ii) the Warrant Shares are registered under an effective
      registration statement on the call date.

     

    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.

     

    
      
         

      

      
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    (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. 

     

    (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.

     

    (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.

     

    
      
         

      

      
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    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 his 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.

     

    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 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(a) shall become effective at the close of business on the
      date the subdivision or combination becomes effective.

     

    
      
         

      

      
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    (b)  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).

     

    (c)  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(d),that no such adjustment pursuant to this Section 8(f) will increase
      the Warrant Exercise Price or decrease the number of shares of Common Stock
      obtainable as otherwise determined pursuant to this Section 8.

     

    
      
         

      

      
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    (d)  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 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)  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) to deliver
      to Holder in exchange for the 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 Holder (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 Holder) to insure that the Holder 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 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 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).

     

    
      
         

      

      
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    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:

            	
              Kuekenhof
                Equity Fund, L.P.

            
	 	 
	 	 
	 	
              Attention:
                Michael James

            
	 	
              Telephone: 

            
	 	
              Facsimile: 

            
	 	 
	
              If
                to the Company, to:

            	
              TXP
                Corporation

            
	 	
              1299
                Commerce Drive

            
	 	
              Richardson,
                TX 75081

            
	 	
              Attention: Michael
                Shores

            
	 	
              Telephone: (214)
                575-9300

            
	 	
              Facsimile: (214)
                575-9314

            
	 	 
	
              With
                a copy to:

            	
              Sichenzia
                Ross Friedman Ference LLP

            
	 	
              1065
                Avenue of the Americas

            
	 	
              New
                York, NY 10018

            
	 	
              Attention: Gregory
                Sichenzia, Esq.

            
	 	
              Telephone: (212)
                930-9700

            
	 	
              Facsimile: (212)
                930-9725

            

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    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.

     

    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 Nevada 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 Texas, without
      giving effect to any choice of law or conflict of law provision or rule (whether
      of the State of Texas or any other jurisdictions) that would cause the
      application of the laws of any jurisdictions other than the State of Texas.
      Each
      party hereby irrevocably submits to the exclusive jurisdiction of the state
      and
      federal courts sitting in Dallas County, Texas, 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. 

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    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.

    

    Section
      16. Automatic
      Conversion upon Expiration.
      In the
      event that, upon the Expiration Date, the fair market value of one share of
      Common Stock (or other security issuable upon the exercise hereof) is greater
      than the Warrant Exercise Price in effect on the Expiration Date, then this
      Warrant shall automatically be deemed on and as of the Business Day immediately
      prior to the Expiration Date to be exercised pursuant to the “cashless” exercise
      provision of Section 2 hereof as to all Warrant Shares (or such other
      securities) for which it shall not previously have been exercised or converted,
      and the Company shall promptly deliver a certificate representing the Warrant
      Shares Stock (or such other securities) issued upon such conversion to the
      Holder.

     

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

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

     

    
      	 	
              TXP
                CORPORATION

            
	 	 
	 	
              By: 
                /s/
                Michael Shores

              
                

              

              Name: Michael
                Shores

            
	 	
              Title: Chief
                Executive Officer

            

    

     

    
      
         

      

      
        12

        
          

        

      

       

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    TXP
      CORPORATION

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Warrant
      Shares”)
      of TXP
      CORPORATION (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.
      ___ 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. 

     

    

    Date:
      _______________ __, ______

    

    Name
      of
      Registered Holder

    

    By:
      _______________________________________     

    Name:
      _____________________________________      

    Title:
      ______________________________________      

     

    
      
         

      

      
        
        

        
          

        

      

       

    

     

    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 TXP CORPORATION 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-1AGREEMENT

    

    This
      AGREEMENT,
      dated
      as of October 12, 2006 (the “Agreement”),
      by
      and among TXP Corporation, a Nevada corporation (the “Company”) and James Von
      Ehr II (collectively, the “
      Investor”).

     

    BACKGROUND

     

    WHEREAS,
      the
      Investor desires to pledge an aggregate of $2,000,000 in free-trading shares
      of
      common stock of Adobe Systems Incorporated (NASDAQ:ADBE), Fossil Incorporated
      (NASDAQ:FOSL) or such other shares of free-trading common stock having a value
      of $2,000,000 in the aggregate as may be agreed upon after the date hereof
      between the parties hereto (the “
      Collateral”),
      on
      behalf of the Company in favor of First Bank of Canyon Creek, or such other
      lending or financing institution as may be agreed upon after the date hereof
      between the parties hereto (a “
      Lender”),
      as
      Collateral for a loan to the Company from a Lender in an amount up to $2,000,000
      (the “
      Loan”),
      which will be further guaranteed personally and through the pledge of Common
      Stock (as defined below) beneficially owned by Michael Shores, the Company's
      Chief Executive Officer.

    

    WHEREAS,
      the
      Company wishes to issue to the Investor warrants (the “Warrants”),
      in
      the form annexed hereto as
      Exhibit “A”,
      to
      purchase 640,000 shares (the “
      Warrant Shares”)
      of
      the Company's common stock, par value $.001 per share (the “Common Stock),
      exercisable into shares of the Company's Common Stock at a price equal to $0.50,
      subject to adjustment as set forth in the Warrants, as consideration and in
      exchange for the Investor agreeing to: (i) pledge the Collateral on behalf
      of
      the Company for the Loan, and (ii) execute such additional documentation as
      may
      be required to effectuate the pledge of the Collateral to a Lender
      (collectively, the “
      Transaction Documents”).

    

    WHEREAS,
      the
      issuance of the Warrants will be made in reliance upon the provisions of Section
      4(2) ("Section
      4(2)")
      and/or
      Section 4(6) 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.

    

    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.

    THE
      AGREEMENTS

    

    1.1
      Agreements.
      Subject
      to the terms and conditions set forth in this Agreement, the Warrants, and
      Transaction Documents, the Company and the Investor hereby agree to execute
      this
      Agreement containing the following provisions which shall be effective as of
      the
      date hereof:

    

    1.2
      Consideration.
      In
      consideration of the Investors agreement to pledge the Collateral to a Lender,
      the Company agrees to:

     

    (a) issue
      to the Investor the Warrants; and

    

    (b) pay
      to the Investor a one-time commitment fee during the Term (as defined in Section
      1.4(a) of this Agreement) equal to 125,000 shares of common stock of the company
      (the “
      Commitment Fee”),
      no
      later than 90 days after the Collateral is deposited into the account of a
      Lender; provided, however, that the Company shall pay an additional Commitment
      Fee within 90 days after the renewal of the Loan by a Lender. The commitment
      fee
      will be fully-earned as of the date of each such deposit and not subject to
      any
      refund as a result of the subsequent termination of the Loan or
      otherwise.

    

    1.3
      Registration Rights.
      (a)
      Mandatory Registration.
      The
      Company shall prepare, and, as soon as practicable, but in no event later than
      sixty five (65) days after the date hereof (the“Scheduled
      Filing Date”
      ), file
      with the SEC a separate Registration Statement on Form SB-2 covering the resale
      of all of 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
      Warrant Shares as of the Scheduled Filing Date. The Company shall use its best
      efforts to have the Registration Statement declared effective by the SEC as
      soon
      as practicable, but in no event later than one hundred twenty (120) days after
      the Scheduled Filing Date (the“Scheduled
      Effective Date”
      ).

    

    (b) 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 Warrant Shares, the Company proposes to file with the SEC a Registration
      Statement for its own account or the account of others under the 1933 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 1.3(b) 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 Warrant shares the
      Investor requests to be registered for resale, subject to the priorities set
      forth in this Section 1.3 (b). No right to registration of Warrant Shares under
      this Section 1.3(b) shall be construed to limit any registration required under
      Section 1.3(a). The obligations of the Company under this Section 1.3(b) may
      be
      waived by the Investor. In the event that the Registration Statement being
      filed
      by the Company under this Section 1.3(b) is for an underwritten offering, the
      Investor shall, unless otherwise agreed to by the Company, offer and sell 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:

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (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.

    

    (c)
       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 Warrant Shares covered by such
      Registration Statement pursuant to Rule 144(k) promulgated under the 1933 Act
      (or successor thereto) or (ii) the date on which (A) the Investor shall have
      sold all of the Warrant Shares covered by such Registration Statement and (B)
      none of 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.

    

    (d) The
      Company shall prepare and file with the SEC 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 1933 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
      1933 Act with respect to the disposition of all Warrant Shares covered by such
      Registration Statement until such time as all of such 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.

    

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

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (f) All
      expenses incurred in connection with registrations, filings, or qualifications
      pursuant to Section 1.3, 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.   (h)
  From and after the date of this Agreement, the Company shall not, without
      the prior written consent of Investor, enter into any agreement with any holder
      or prospective holder of any securities of the Company that would allow such
      holder or prospective holder to include such securities in any registration
      unless, under the terms of such agreement, such holder or prospective holder
      may
      include such securities in any such registration only to the extent that the
      inclusion of such securities will not reduce the number of the Warrant Shares
      of
      the Investor that are included.

    

    1.4          
      The
      Loan.

    

    (a) Term
      of the Loan. The
      Company agrees that the term of the Loan shall not exceed 12 months (the
“
      Term”).

    

    (b) Investor
      Approval.
       The Company agrees that it shall not procure any Loan with a Lender, or
      execute any definitive documentation in connection with a proposed Loan, without
      the prior written consent of the Investor, which shall not be unreasonably
      withheld;
      provided,
      however,
      that
      any request by a Lender of Investor to provide additional credit support or
      enhancement for any such Loan shall be grounds for Investor withholding consent
      to any such Loan. The Company shall provide written notice to the Investor
      which
      sets forth the terms of a proposed Loan at least 5 business days prior to the
      execution of definitive documentation in connection with such proposed Loan.
      The
      Investor shall have 3 business days following receipt of the notice to
      reasonably object to the terms proposed Loan. In the event such terms and
      conditions are modified during the notice period, the Investors shall be given
      prompt notice of such modification and shall have the right during the 3
      business days following the notice of modification, whichever is longer, to
      reasonably object to the terms proposed Loan.  

    

    (c)  Pledge
      and Guaranty of the Company's Chief Executive Officer.
      It
      shall be a condition precedent to any Loan that (i) Michael Shores pledge such
      number of shares of Common Stock beneficially owned by him equal to 100% of
      the
      initial amount of the Collateral pledged by the Investor at a price of $.50
      per
      share, as further collateral for the Loan with such collateral being required
      to
      first be exhausted before a Lender looks to the Collateral for payment or
      satisfaction, and (ii) Michael Shores personally and unconditionally guarantee
      the Loan.

    

    ARTICLE
      2.

    REPRESENTATIONS
      AND WARRANTIES OF THE INVESTORS

    

    2.1
      Compliance with Law.
      The
      Investor's trading activities with respect to shares of the Company's Common
      Stock 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.

    

    2.2
      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 Warrants. The Investor has no present arrangement (whether
      or not legally binding) at any time to sell the Warrants 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 underlying the
      Warrants at any time in accordance with federal and state securities laws
      applicable to such disposition.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    2.3 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.

    

    2.4.
       Authorization
      and Power.
      The
      Investor has the requisite power and authority to enter into and perform this
      Agreement and to purchase the Warrants being issued to him hereunder. This
      Agreement has been duly executed and delivered by the Investor 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.

    

    2.5. 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, 2005
      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, and has conducted, 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, as well as 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.

     

    2.6. Information
      on Investor.
      The
      Investor is, and will be at the time of the issuance of the Warrants, an
      "accredited investor", as such term is defined in Regulation D promulgated
      by
      the Commission under the 1933 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 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.  

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    2.7. Receipt
      of Warrants.
      The
      Investor will 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.

     

    2.8. Compliance
      with Securities Act.
      The
      Investor understands and agrees that the Warrants have not been registered
      under
      the 1933 Act or any applicable state securities laws, by reason of their
      issuance in a transaction that does not require registration under the 1933
      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 1933 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.

     

    2.9. 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.

    

    2.10. 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.

     

    2.11. 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.

     

    2.12.
      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.

    

    2.13.
      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.

    

    2.14. Survival.
      The
      foregoing representations and warranties shall survive for a period of two
      years
      from the date hereof.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    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 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
      (g) of
      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 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
      Warrants and the Warrant Shares will not require registration under the
      Securities Act and/or any applicable state securities law (other than any SEC,
      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). When issued and paid for in accordance with the
      Warrants, the Warrant Shares will be duly and validly issued, fully paid, and
      non-assessable. Neither the sales of the Warrants or the Warrant Shares 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 Warrants or the Warrant Shares or, except
      as contemplated herein, 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.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    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 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 sell the 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, 2005 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.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    3.10. No
      Misleading or Untrue Communication.
      The
      Company and, to the knowledge of the Company, 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 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 Warrant Shares, and
      will take such other action as is necessary or desirable in the opinion of
      the
      Investor to cause 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.

    

    3.12. Exchange
      Act
      Registration.
      The
      Company will cause its Common Stock to continue to be registered under
      Section
      12(b)
      or
      (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.

    

    3.13. 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.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    3.14.     
      Issuance of Warrant Shares.
      The
      sale of 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), 
      4(6) or
      Regulation
      D and
      any applicable state securities law. The Company shall make any necessary SEC
      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          
      Legends.
      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.

    GENERAL
      PROVISIONS

     

    5.1  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.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    5.2  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.

     

    5.3  Governing
      Law; Venue.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Texas.
      Venue
      . The
      parties (a) hereby irrevocably and unconditionally submit to the jurisdiction
      of
      the state and federal courts sitting in Dallas County, Texas for the purpose
      of
      any suit, action or other proceeding arising out of or based upon this
      Agreement, (b) agree not to commence any suit, action or other proceeding
      arising out of or based upon this Agreement except in the state and federal
      courts sitting in Dallas County, Texas, and (c) hereby waive, and agree not
      to
      assert, by way of motion, as a defense, or otherwise, in any such suit, action
      or proceeding, any claim that it is not subject personally to the jurisdiction
      of the above-referenced courts, that its property is exempt or immune from
      attachment or execution, that the suit, action or proceeding is brought in
      an
      inconvenient forum, that the venue of the suit, action or proceeding is improper
      or that this Agreement or the subject matter hereof may not be enforced in
      or by
      such court.

     

    5.4  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.

     

    5.5  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.

     

    5.6  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.

     

    5.7  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.

     

    5.8  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.]

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

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

     

    
      	
               

            	
               

            	
               

            
	
               

            	
              TXP
                CORPORATION

            
	
               

               

            	
               

               

            	
               

               

            
	
               

            	
              By:  

            	
              /s/ Michael
                Shores

            
	
               

            	
              
                

              

              Name:
                Michael Shores

            
	
               

            	
              Title:
                Chief Executive Officere 

            

    

     

    
      	
               

            	
               

            	
               

            
	
               

            	
               

            	
              /s/ James
                Von Ehr, II

            
	
               

            	
              
                
James
                Von Ehr, II

            

    

     

    
      
         

      

      
        12

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