Document:

AGREEMENT

    

    This
      AGREEMENT,
      dated
      as of December 28,
      2007
      (the
      “Agreement”), by and among TXP Corporation, a Nevada corporation (the “Company”)
      and the investors named on the signature pages annexed hereto (collectively,
      the
“Investor”). This agreement will expire on January 16, 2009. This agreement also
      extends the terms of previous JVE-TXP Collateral Agreements dated July 28,
      2006
      and October 12, 2006 to expire concurrently with this agreement on January
      16,
      2009. 

     

    BACKGROUND

     

    WHEREAS,
      the
      Investor desires to pledge an aggregate of $2,000,000 in free-trading shares
      of
      common stock of 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 C. 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 1,280,000 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 $0.40, 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 New 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 Warrants to purchase an aggregate of 1,280,000 shares of Common
      Stock at an exercise price equal to $0.40, subject to adjustment as set forth
      in
      the Warrants; and

    

    (b) pay
      to
      the Investor commitment fee equal of 100,000 shares of TXP stock within 90
      days
      of “FOSL” and/or other shares being deposited into First Bank of Canyon Creek
      and/or any other agreed upon Federally Regulated Banking Institution account
      (such stock deposit date shall be the “Closing Date”)

     

    1.3
      Registration
      Rights.
      (a)
Piggy-Back
      Registrations.
      If, at
      any time (x) prior to the expiration of the Registration Period (as hereinafter
      defined) and (y) after the filing of the initial registration statement by
      the
      Company pursuant to the March 2007 Registration Rights Agreement between the
      Company and YA Global Investments, L.P. 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(a) 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(a). The obligations of the Company under this Section 1.3(a)
      may be waived by the Investor. In the event that the Registration Statement
      being filed by the Company under this Section 1.3(a) 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: 

     

    
      
        
        

      

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

    

    (2) second,
      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.

    

    (b)
       The
      Company shall keep each of the Registration Statement required to be filed
      hereunder effective pursuant to Rule 415 at all times until the earlier of
      (i)
      the life that all or a portion of the Collateral is pledged by the Investor;
      (ii) 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 (iii) 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. 

    

    (c) 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 of the Company
      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.

    

    (d)
       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.

    

    
      	 	
              1.4

            	
              The
                Loan.

            

    

    

    (a) Term
      of the Loan. The
      Company agrees that the term of the Loan shall not exceed January 16th,
      2009
      (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.
      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.  

     

    
      
        
        

      

      
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    (c) Pledge
      and Guaranty of the Company’s Chief Executive Officer. The
      Company shall use its best efforts to cause its Chief Executive Officer to
      pledge such number of shares of Common Stock beneficially owned by the Chief
      Executive Officer 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. In addition, the Company shall use its best efforts to cause its Chief
      Executive Officer to personally 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.

     

    
      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. The
        execution, delivery and performance of this Agreement by the Investor and
        the
        consummation by him of the transactions contemplated hereby and thereby have
        been duly authorized by all necessary corporate or partnership action, and
        no
        further consent or authorization is required. This Agreement has been duly
        authorized, 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.

       

    

    
      2.5.
        No
        Conflicts.
        The
        execution, delivery and performance of this Agreement and the consummation
        by
        the Investor of the transactions contemplated hereby or relating hereto do
        not
        and will not conflict with, or constitute a default (or an event which with
        notice or lapse of time or both would become a default) under, or give to
        others
        any rights of termination, amendment, acceleration or cancellation of any
        agreement, indenture or instrument or obligation to which the Investor is
        a
        party or by which his 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 his properties (except
        for
        such conflicts, defaults and violations as would not, individually or in
        the
        aggregate, have a material adverse effect on the Investor). The Investor
        is not
        required to obtain any consent, authorization or order of, or make any filing
        or
        registration with, any court or governmental agency in order for it to execute,
        deliver or perform any of its obligations under this Agreement or to acquire
        the
        Warrants in accordance with the terms hereof, provided that for purposes
        of the
        representation made in this sentence, the Investor is assuming and relying
        upon
        the accuracy of the relevant representations and agreements of the Company
        herein.

       

    

    
      
        
        

      

      
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    2.6. Information
      on Company.
      The
      Investor has been furnished with or has had access at the EDGAR Website of
      the
      Commission to the Company's Form 10-KSB for the year ended December 31, 2006
      as
      filed with the Commission, together with all subsequently filed Forms 10-QSB,
      8-K, and filings made with the Commission available at the EDGAR website
      (hereinafter referred to collectively as the "SEC Reports"). In addition, the
      Investor has received in writing from the Company such other information
      concerning its operations, financial condition and other matters as the Investor
      has requested in writing (such other information is collectively, the "Other
      Written Information"), and considered all factors the Investor deems material
      in
      deciding on the advisability of investing in the securities. The
      Investor has had full opportunity to conduct, 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.

     

    2.7. 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. 
      The
      Investor is not required to be registered as a broker-dealer under Section
      15 of
      the Securities Exchange Act of 1934, as amended (the "1934 Act") and the
      Investor is not a broker-dealer.

     

    2.8. 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.

     

    
      
        
        

      

      
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    2.9. 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 including Regulation M of the Securities Exchange Act and
      prospectus delivery requirements.

     

    2.10. 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.

    

    2.11. 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.

     

    2.12. Authority;
      Enforceability.
      This
      Agreement and other agreements delivered together with this Agreement or in
      connection herewith have been duly authorized, executed and delivered by the
      Investor and are valid and binding agreements enforceable in accordance with
      their terms, 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;
      and Investor has full corporate power and authority necessary to enter into
      this
      Agreement and such other agreements and to perform his obligations hereunder
      and
      under all other agreements entered into by the Investor relating
      hereto.

    

    2.13. Restricted
      Securities.
      Investor understands that the securities have not been registered under the
      1933
      Act and the Investor will not sell, offer to sell, assign, pledge, hypothecate
      or otherwise transfer any of the securities unless pursuant to an effective
      registration statement under the 1933 Act. Notwithstanding anything to the
      contrary contained in this Agreement, the Investor may transfer (without
      restriction and without the need for an opinion of counsel) the securities
      to
      his Affiliates (as defined below) provided that each such Affiliate is an
“accredited investor” under Regulation D and such Affiliate agrees to be bound
      by the terms and conditions of this Agreement. For the purposes of this
      Agreement, an “Affiliate” of any person or entity means any other person or
      entity directly or indirectly controlling, controlled by or under direct or
      indirect common control with such person or entity. Affiliate includes each
      subsidiary of the Company. For purposes of this definition, “control” means the
      power to direct the management and policies of such person or firm, directly
      or
      indirectly, whether through the ownership of voting securities, by contract
      or
      otherwise.

    

    2.14. 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.

     

    
      
        
        

      

      
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    2.15.
      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.

    

    2.16.
      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.

    

    2.17. Correctness
      of Representations.
      The
      Investor represents that the foregoing representations and warranties are true
      and correct as of the date hereof and, unless the Investor otherwise notifies
      the Company prior to the date hereof, shall be true and correct as of the date
      hereof.

    

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

    

    ARTICLE
      3.

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

    

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

    

    3.2. Authority.
      (i)
      The
      Company has the requisite corporate power and corporate authority to enter
      into
      and perform its obligations under this Agreement and to issue the 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. 

     

    
      
        
        

      

      
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    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. 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.

    

    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)
      made 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.

     

    
      
        
        

      

      
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    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.

    

    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.

    

    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. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    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.

    

    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."

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    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.

     

    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.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York.

     

    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.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    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.

     

    [Remainder
      of page intentionally left blank.]

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

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

    
      	 	 	 
	 	TXP
              CORPORATION
	 
 	 
 	 
 
	
            	By:  	/s/
              Michael C. Shores
	 	
              

              Name:
                Michael C. Shores

              Title:
                Chief Executive Officer

            

    

     

    
      	 	 	/s/
              James Von Ehr II
	 	
              
                

              

                                    
                James Von Ehr II 

            

    

     

    
      
        
        

      

      
        13WARRANT

    

    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.: JVE-003

            	
               

            	
              Number
                of Shares: 1,280,000

            
	
               

            	
               

            	
               

            
	
              Date
                of Issuance: ________ ___, 2007

            	
               

            	
               

            

    

    

    TXP
      CORPORATION, a Nevada corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged,
      James Von Ehr, II
      (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) One
      Million Two Hundred Eighty Thousand (1,280,000) fully paid and nonassessable
      shares of Common Stock (as defined herein) of the Company (the “Warrant
      Shares”)
      at the
      exercise price per share provided in Section 1(b) below or as subsequently
      adjusted; provided, however, that in no event shall the holder be entitled
      to
      exercise this Warrant for a number of Warrant Shares in excess of that number
      of
      Warrant Shares which, upon giving effect to such exercise, would cause the
      aggregate number of shares of Common Stock beneficially owned by the holder
      and
      his affiliates to exceed 4.99% of the outstanding shares of the Common Stock
      following such exercise, except within sixty (60) days of the Expiration Date
      (however, such restriction may be waived by Holder (but only as to itself and
      not to any other holder) upon not less than 65 days prior notice to the
      Company). For purposes of the foregoing proviso, the aggregate number of shares
      of Common Stock beneficially owned by the Holder and his affiliates shall
      include the number of shares of Common Stock issuable upon exercise of this
      Warrant with respect to which the determination of such proviso is being made,
      but shall exclude shares of Common Stock which would be issuable upon
      (i) exercise of the remaining, unexercised Warrants beneficially owned by
      the Holder and his affiliates and (ii) exercise or conversion of the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by the Holder and his affiliates (including, without
      limitation, any convertible notes or preferred stock) subject to a limitation
      on
      conversion or exercise analogous to the limitation contained herein. Except
      as
      set forth in the preceding sentence, for purposes of this paragraph, beneficial
      ownership shall be calculated in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended. For purposes of this Warrant, in determining
      the number of outstanding shares of Common Stock Holder may rely on the number
      of outstanding shares of Common Stock as reflected in (1) the Company's most
      recent Form 10-QSB or Form 10-KSB, as the case may be, (2) a more recent public
      announcement by the Company or (3) any other notice by the Company or its
      transfer agent setting forth the number of shares of Common Stock outstanding.
      Upon the written request of Holder, the Company shall promptly, but in no event
      later than one (1) Business Day following the receipt of such notice, confirm
      in
      writing to Holder the number of shares of Common Stock then outstanding. In
      any
      case, the number of outstanding shares of Common Stock shall be determined
      after
      giving effect to the exercise of Warrants (as defined below) by Holder and
      his
      affiliates since the date as of which such number of outstanding shares of
      Common Stock was reported.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    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)  “Approved
      Stock Plan”
means
      any employee benefit plan which has been approved by the Board of Directors
      of
      the Company, pursuant to which the Company's securities may be issued to any
      employee, officer, or director for services provided to the
      Company.

    

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

    

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

    

    (iv)  “Common
      Stock”
means
      (i) the Company's common stock, 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.

    

    (v)  “Expiration
      Date”
means
      the date seven (7) 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.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

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

    

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

    

    (viii)  “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.

    

    (ix)  “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.

    

    (x)  “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.

    

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

    

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

    

    (xiii)  “Warrant
      Exercise Price”
shall
      be $0.40 or as subsequently adjusted as provided in Section 8
      hereof.

    

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

    

    (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.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (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.

    

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

    

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

    

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

    

    (c)  During
      the period within which the rights represented by this Warrant may be exercised,
      the Company will at all times have authorized and reserved at least one hundred
      percent (100%) of the number of shares of Common Stock needed to provide for
      the
      exercise of the rights then represented by this Warrant and the par value of
      said shares will at all times be less than or equal to the applicable Warrant
      Exercise Price.

    

    (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.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    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.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (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.

    

    (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).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    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:

            	
               

            	
              James
                Von Ehr, II

            
	
               

            	
               

            	
               

            
	
               

            	
               

            	
              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:

            	
               

            	
              Hodgson
                Russ LLP

            
	
               

            	
               

            	
              1540
                Broadway, 24th
                Floor

            
	
               

            	
               

            	
              New
                York, NY 10036

            
	
               

            	
               

            	
              Attention: Eric
                Pinero, Esq.

            
	
               

            	
               

            	
              Telephone: (212)
                751-4300

            
	
               

            	
               

            	
              Facsimile: (212)
                751-0928

            

    

    

    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.

    

    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

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

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

     

    
      	
               

            	
               

            	
              TXP
                CORPORATION

            
	
               

            	
               

            	
               

            
	
               

            	
              By:

            	
            
	 	 	
              
Name: Michael
              Shores
	
               

            	
               

            	
              Title: CEO

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    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:

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