Document:

REGISTRATION
      RIGHTS AGREEMENT

     

    This
      Registration
      Rights
      Agreement (this “Agreement”)
      is
      dated as of June ___, 2006 (the “Effective
      Date”),
      by
      and among United Fuel & Energy Corporation, a Nevada corporation (the
“Company”),
      on
      the one hand, and the holders of the Company’s Common Stock executing the
      signature page to this Agreement (each a “Stockholder”
and
      collectively, the “Stockholders”).

     

    WITNESSETH:

     

    WHEREAS,
      the
      Stockholders have recently acquired shares of the Company’s Common Stock and
      Company is desirous of granting registration and certain other rights to the
      Stockholders and the Stockholders are desirous of receiving such registration
      rights, subject to the terms and conditions contained herein. 

     

    NOW, THEREFORE,
      in
      consideration of the foregoing premises and the mutual covenants and agreements
      hereinafter contained, and for other good and valuable consideration, the
      receipt and sufficiency of which are hereby acknowledged, intending to be
      legally bound, the parties hereto hereby agree as follows:

     

    1.     Registration
      Rights.
      

     

    1.1   Required
      Registration.
      The
      Company shall use its reasonable best efforts to prepare and file with the
      SEC
      within one hundred twenty (120) days after the Effective Date a registration
      statement on Form S-1, S-2 or S-3 (subject to the Company’s eligibility to use
      Form S-2 or S-3) or successor form or another form selected by the Company
      that
      is available to it under the Securities Act which conforms with all applicable
      rules and regulations (the “Required
      Registration Statement”)
      with
      respect to all the Registrable Securities beneficially owned by the Stockholders
      to permit the offer and re-sale from time to time of such Registrable Securities
      in accordance with the methods of distribution provided by the Stockholders.
      The
      Company shall use its reasonable best efforts to cause the Required Registration
      Statement to become effective as promptly as reasonably practicable thereafter.
      The Company shall use its reasonable best efforts to keep such Required
      Registration Statement continuously effective (the “Effective
      Period”)
      until
      the first anniversary of the Effective Date plus
      whatever
      period of time as shall equal any period prior to such first anniversary in
      which the Company was not current with its reporting requirements under the
      Exchange Act. To the extent that the Registrable Securities are not sold under
      the Required Registration Statement, the Stockholders shall have the
      registration rights as enumerated in Section 1.2. 

     

    1.2   Piggyback
      Registrations.

     

    (a)    Right
      to Piggyback.
      Whenever the Company proposes to register any of its securities under the
      Securities Act and the registration form to be used may be used for the
      registration of Registrable Securities, whether or not for sale for its own
      account, the Company will give prompt written notice (but in no event less
      than
      fifteen (15) days before the anticipated filing date) to all holders of
      Registrable Securities, and such notice shall describe the proposed registration
      and distribution and offer to all holders of Registrable Securities the
      opportunity to register the number of Registrable Securities as each such holder
      may request; provided, however, this right shall not apply to any registration
      of securities on a registration statement filed prior to the date on which
      the
      Required Registration Statement is required to be filed (a “Piggyback
      Registration”).
      Subject to paragraph (d) of this Section 1.2, the Company will include in each
      Piggyback Registration all Registrable Securities with respect to which the
      Company has received written requests for inclusion therein within five (5)
      days
      after the holders’ receipt of the Company’s notice. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)    Reasonable
      Efforts.
      The
      Company shall use all reasonable efforts to cause the managing underwriter
      or
      underwriters of a proposed underwritten offering to permit the Registrable
      Securities requested to be included in a Piggyback Registration to be included
      on the same terms and conditions as any similar securities of the Company or
      any
      other security holder included therein and to permit the sale or other
      disposition of such Registrable Securities in accordance with the intended
      method of distribution thereof.

     

    (c)    Withdrawal.
      Any
      holder of Registrable Securities electing to participate in a Piggyback
      Registration (a “Designated
      Holder”)
      shall
      have the right to withdraw its request for inclusion of its Registrable
      Securities in any Registration Statement pursuant to this Section 1.2 by giving
      written notice to the Company of its request to withdraw. The Company may
      withdraw a Piggyback Registration at any time.

     

    (d)    Priority
      in Registrations.
      If a
      Piggyback Registration is an underwritten primary registration on behalf of
      the
      Company or a secondary registration on behalf of a security holder exercising
      demand registration rights (the “Initiating
      Holder”),
      and
      the managing underwriters advise the Company in writing (with a copy to each
      party hereto requesting registration of Registrable Securities) that in their
      opinion the number of Registrable Securities requested to be included in such
      registration exceeds the number which can be sold in such offering without
      materially and adversely affecting the marketability of such primary or
      secondary offering (the “Offering
      Quantity”),
      then
      the Company will include in such registration securities in the following
      priority: 

     

    (i) First,
      the Company will include the securities the Company proposes to sell and, if
      applicable, the securities the Initiating Holder proposes to sell.

     

    (ii) Second,
      the Company will include all Registrable Securities requested to be included
      by
      any Designated Holder and other holders entitled to include securities in such
      Piggyback Registration (collectively, “Subordinate
      Holders”),
      and
      if the number of such Subordinate Holders’ securities requested to be included
      exceeds the Offering Quantity, then the Company shall include only each such
      requesting Subordinate Holders’ pro rata share of the shares available for
      registration by the Stockholders, based on the amount of securities held by
      each
      such Subordinate Holder.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.3   Holdback
      Agreements.
      

     

    (a)    To
      the
      extent not inconsistent with applicable law, upon the request of the Company
      or,
      in the case of an underwritten public offering, the underwriters managing such
      underwritten offering of the Company’s securities, each holder of Registrable
      Securities who owns at least 1% of the outstanding capital stock of the Company
      on an “as-converted” basis or is an officer or director of the Company will not
      effect any public sale or distribution (other than those included in the
      registration) of any securities of the Company, or any securities, options
      or
      rights convertible into or exchangeable or exercisable for such securities
      during the seven (7) days prior to and the ninety (90) day period beginning
      on
      the effective date of the Registration Statement relating to such offering,
      unless (in the case of an underwritten public offering) the managing
      underwriters otherwise agree to a shorter period of time. Notwithstanding the
      foregoing, no Designated Holder shall be required to enter into any such “lock
      up” agreement unless and until all of the Company’s executive officers and
      directors execute identical “lock up” agreements and the Company uses
      commercially reasonable efforts to cause each holder of more than 1% of its
      outstanding capital stock to execute identical “lock up” agreements. Neither the
      Company nor the underwriter shall amend, terminate or waive a “lock up”
agreement unless each “lock up” agreement with a Designated Holder is also
      amended or waived in a similar manner or terminated, as the case may
      be.

     

    (b)    The
      Company shall have the right at any time to require that the Designated Holders
      of Registrable Securities suspend further open market offers and sales of
      Registrable Securities pursuant to a Registration Statement filed hereunder
      whenever in the reasonable judgment of the Company after consultation with
      counsel there is or may be in existence a Changing Event (as defined herein).
      The Company will give the Designated Holders notice of any such suspension
      and
      will use all reasonable best efforts to minimize the length of such
      suspension.

     

    1.4   Registration
      Procedures.
      Whenever any Registrable Securities are required to be registered pursuant
      to
      this Agreement, the Company will use reasonable best efforts to effect the
      registration and the sale of such Registrable Securities in accordance with
      the
      intended methods of disposition thereof, and pursuant thereto the Company will
      as expeditiously as possible:

     

    (a)    prepare
      and file with the SEC on any form, if not so otherwise provided for, for which
      the Company qualifies, as soon as practicable after the end of the period within
      which requests for registration may be given to the Company, a Registration
      Statement with respect to the offer and sale of such Registrable Securities
      and
      thereafter use reasonable best efforts to cause such Registration Statement
      to
      become effective and remain effective until the completion of the distribution
      contemplated thereby or the required time period under this Agreement, whichever
      is shorter (and before filing such Registration Statement, the Company will
      furnish to the counsel selected by the holders of a majority of the Registrable
      Securities initiating such Registration Statement copies of all such documents
      proposed to be filed); provided,
      however,
      that
      the Company may postpone for not more than sixty (60) calendar days the filing
      or effectiveness of the Required Registration Statement if the board of
      directors of the Company, in its good faith judgment, determines that such
      registration could reasonably be expected to have a material adverse effect
      on
      the Company and its stockholders including, but not limited to, any proposal
      or
      plan by the Company to engage in any acquisition of assets (other than in the
      ordinary course of business) or any merger, consolidation, tender offer, stock
      acquisition or similar transaction then under consideration by delivering
      written notice to the holders of Registrable Securities of its determination
      to
      postpone such Registration Statement; provided,
      further,
      that
      (i) the
      Company shall not disclose any information that could be deemed material
      non-public information to any holder of Registrable Securities included in
      a
      Registration Statement that is subject to such postponement, (ii) in no event
      may the Company postpone a filing requested hereunder more than twice;
provided,
      that
      such
      postponements must be at least three (3) months apart; provided,
      further,
      that
      the
      Company may delay the effectiveness of the Required Registration Statement
      if
      the SEC rules and regulations prohibit the Required Registration Statement
      from
      being declared effective because its financial statements are stale at a time
      when its fiscal year has ended or it has made an acquisition reportable under
      Item 2 of Form 8-K or any other similar situation until the earliest time in
      which the SEC would allow the Required Registration Statement to be declared
      effective (provided that the Company shall use its reasonable best efforts
      to
      cure any such situation as soon as possible so that the Registration Statement
      can be declared effective at the earliest possible time);

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)    prepare
      and file with the SEC such amendments and supplements to such Registration
      Statement and the prospectus used in connection therewith as may be necessary
      to
      keep such Registration Statement effective for a period provided for in the
      applicable Section above or, if such Registration Statement relates to an
      underwritten offering, such period as in the opinion of counsel for the
      underwriters a prospectus is required by law to be delivered in connection
      with
      sales of Registrable Securities by an underwriter or dealer or (ii) such shorter
      period as will terminate when all of the securities covered by such Registration
      Statement have been disposed of in accordance with the intended methods of
      disposition by the seller or sellers thereof set forth in such Registration
      Statement (but in any event not before the expiration of any longer period
      required under the Securities Act), and to comply with the provisions of the
      Securities Act with respect to the disposition of all securities covered by
      such
      Registration Statement until such time as all of such securities have been
      disposed of in accordance with the intended methods of disposition by the seller
      or sellers thereof set forth in such Registration Statement;

     

    (c)    furnish
      to each seller of Registrable Securities, prior to filing a Registration
      Statement, such number of copies of such Registration Statement, each amendment
      and supplement thereto, the prospectus included in such Registration Statement
      (including each preliminary prospectus) and such other documents as such seller
      may reasonably request in order to facilitate the disposition of the Registrable
      Securities owned by such seller;

     

    (d)    register
      or qualify such Registrable Securities under such state securities or blue
      sky
      laws of such jurisdictions as any seller reasonably requests and do any and
      all
      other acts and things which may be reasonably necessary or advisable to enable
      such seller to consummate the disposition in such jurisdictions of the
      Registrable Securities owned by such seller and to keep each such registration
      or qualification (or exemption therefrom) effective during the period which
      the
      Registration Statement is required to be kept effective (provided,
      that
      the Company will not be required to (i) qualify generally to do business in
      any
      jurisdiction where it would not otherwise be required to qualify but for this
      subparagraph, (ii) subject itself to taxation in any such jurisdiction or (iii)
      consent to general service of process in any such
      jurisdiction);

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)    notify
      each seller of such Registrable Securities, at any time when a prospectus
      relating thereto is required to be delivered under the Securities Act, of the
      happening of any event (a “Changing
      Event”)
      as a
      result of which, the prospectus included in such Registration Statement contains
      an untrue statement of a material fact or omits any fact necessary to make
      the
      statements therein not misleading in the light of the circumstances under which
      they were made, and, at the request of any such seller, the Company will as
      soon
      as possible prepare and furnish to such seller (a “Correction
      Event”)
      a
      reasonable number of copies of a supplement or amendment to such prospectus
      so
      that, as thereafter delivered to the purchasers of such Registrable Securities,
      such prospectus will not contain an untrue statement of a material fact or
      omit
      to state any fact necessary to make the statements therein not misleading in
      the
      light of the circumstances under which they were made;

     

    (f)    cause
      all
      such Registrable Securities to be listed on each securities exchange on which
      similar securities issued by the Company are then listed and, if not so listed,
      to be listed on The Nasdaq Stock Market or the Nasdaq SmallCap trading system
      or
      qualified for trading on the Nasdaq OTC Bulletin Board;

     

    (g)    provide
      a
      transfer agent and registrar for all such Registrable Securities not later
      than
      the effective date of such Registration Statement;

     

    (h)    before
      filing a Registration Statement or prospectus or any amendments or supplements
      thereto, the Company shall provide counsel selected by the Designated Holders
      holding a majority of the Registrable Securities being registered in such
      registration (“Holders’
      Counsel”)
      and
      any other Inspector (as defined below) with an adequate and appropriate
      opportunity to review and comment on such Registration Statement and each
      prospectus included therein (and each amendment or supplement thereto) to be
      filed with the SEC, subject to such documents being under the Company’s control,
      and the Company shall notify the Holders’ Counsel and each seller of Registrable
      Securities of any stop order issued or threatened by the SEC;

     

    (i)    otherwise
      comply with all applicable rules and regulations of the SEC, and make available
      to its security holders, as soon as reasonably practicable, an earnings
      statement covering the period of at least twelve (12) months beginning with
      the
      first day of the Company’s first full calendar quarter after the effective date
      of the Registration Statement, which earnings statement shall satisfy the
      provisions of Section 11(a) of the Securities Act and Rule 158
      thereunder;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (j)    in
      the
      event of the issuance of any stop order suspending the effectiveness of a
      Registration Statement, or of any order suspending or preventing the use of
      any
      related prospectus or suspending the qualification of any securities included
      in
      such Registration Statement for sale in any jurisdiction, the Company will
      use
      its reasonable best efforts promptly to obtain the withdrawal of such
      order;

     

    (k)    subject
      to execution and delivery of mutually satisfactory confidentiality agreements,
      make available at reasonable times for inspection by any seller of Registrable
      Securities, any managing underwriter participating in any disposition of such
      Registrable Securities pursuant to a Registration Statement, Holders’ Counsel
      and any attorney, accountant or other agent retained by any managing underwriter
      (each, an “Inspector”
and
      collectively, the “Inspectors”),
      all
      financial and other records, pertinent corporate documents and properties of
      the
      Company and its subsidiaries (collectively, the “Records”)
      as
      shall be reasonably necessary to enable them to exercise their due diligence
      responsibility, and cause the Company’s and its subsidiaries’ officers,
      directors and employees, and the independent public accountants of the Company,
      to supply all information reasonably requested by any such Inspector in
      connection with such Registration Statement;

     

    (l)    subject
      to execution and delivery of mutually satisfactory confidentiality agreements,
      keep Holders’ Counsel advised as to the initiation and progress of any
      registration hereunder including, but not limited to, providing Holders’ Counsel
      with all correspondence with the SEC;

     

    (m)    cooperate
      with each seller of Registrable Securities and each underwriter participating
      in
      the disposition of such Registrable Securities and their respective counsel
      in
      connection with any filings required to be made with the National Association
      of
      Securities Dealers; and

     

    (n)    take
      all
      other steps reasonably necessary to effect the registration of the Registrable
      Securities contemplated hereby.

     

    (o)    Registration
      Expenses.
      All
      expenses incident to the Company’s performance of or compliance with this
      Agreement including, without limitation, all registration and filing fees,
      fees
      and expenses of compliance with securities or blue sky laws, printing expenses,
      messenger and delivery expenses, and fees and disbursements of counsel for
      the
      Company and all independent certified public accountants, underwriters
      (excluding discounts and commissions, which will be paid by the sellers of
      Registrable Securities) and other Persons retained by the Company will be borne
      by the Company, and the Company will pay its internal expenses (including,
      without limitation, all salaries and expenses of its Employees performing legal
      or accounting duties), the expense of any annual audit or quarterly review,
      the
      expense of any liability insurance and the expenses and fees for listing the
      securities to be registered on each securities exchange or trading system on
      which similar securities issued by the Company are then listed or qualified
      for
      trading. The Company shall have no obligation to pay any underwriting discounts
      or commissions attributable to the sale of Registrable Securities and any of
      the
      expenses incurred by the Designated Holders, such costs to be borne by such
      Designated Holder or Holders.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.5   Indemnification.

     

    (a)    In
      connection with any Registration Statement in which the holders of Registrable
      Securities are participating pursuant to this Agreement, the holders of
      Registrable Securities will furnish to the Company in writing such information
      as the Company reasonably requests for use in connection with any such
      Registration Statement or prospectus and, to the fullest extent permitted by
      law, each such holder of Registrable Securities will, severally but not jointly,
      indemnify and hold harmless the Company and its stockholders, officers,
      directors, members, managers, employees, advisors, representatives, agents
      and
      Affiliates (collectively, the “Representatives”)
      from
      and against any reasonable loss, claim, damage, liability, a single reasonable
      attorney’s fees, cost or expense and costs and expenses of investigating and
      defending any such claim (collectively, the “Losses”)
      and
      any action in respect thereof to which the Company and its Representatives
      may
      become subject under the Securities Act or otherwise, insofar as such Losses
      (or
      actions or proceedings, whether commenced or threatened, in respect thereof)
      arise out of or are based upon (i) the purchase or sale of Registrable
      Securities during a suspension as set forth in herein after written receipt
      of
      notice of such suspension, (ii) by failure of such holder of Registrable
      Securities to deliver a copy of the Registration Statement or prospectus or
      any
      amendments or supplements thereto after the Company has furnished such holder
      of
      Registrable Securities with a sufficient number of copies of the same, (iii)
      any
      untrue or alleged untrue statement of a material fact contained in the
      Registration Statement, prospectus or preliminary prospectus or any amendment
      or
      supplement thereto, or (iv) any omission or alleged omission of a material
      fact
      required to be stated therein or necessary to make the statements therein not
      misleading, but, with respect to clauses (iii) and (iv) above, only to the
      extent that such untrue statement or omission is made in such Registration
      Statement, any such prospectus or preliminary prospectus or any amendment or
      supplement thereto, in reliance upon and in conformity with written information
      prepared and furnished to the Company by such holder of Registrable Securities
      expressly for use therein; provided,
      however,
      that
      such holder of Registrable Securities shall not be liable in any such case
      to
      the extent that prior to the filing of any such Registration Statement or
      prospectus or amendment or supplement thereto, such holder of Registrable
      Securities has furnished in writing to the Company information expressly for
      use
      in such Registration Statement or prospectus or any amendment or supplement
      thereto which corrected or made not misleading information previously furnished
      to the Company; provided,
      further,
      however,
      that
      the obligation to indemnify will be individual to each such holder of
      Registrable Securities and will be limited to the net amount of proceeds
      received by such holder of Registrable Securities from the sale of Registrable
      Securities pursuant to such Registration Statement. In connection with an
      underwritten offering, each holder of Registrable Securities participating
      in
      such offering will indemnify such underwriters, their officers and directors
      and
      each Person who controls such underwriters (within the meaning of the Securities
      Act) to the same extent as provided above with respect to the indemnification
      of
      the Company.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)    Promptly
      after receipt by the Company of notice of any claim or the commencement of
      any
      action, the Company shall, if a claim in respect thereof is to be made against
      a
      holder of Registrable Securities, promptly notify the holder of Registrable
      Securities in writing of the claim or the commencement of such action;
provided,
      that
      the failure to notify the holder of Registrable Securities shall not relieve
      the
      holder of Registrable Securities from any liability which it may have to an
      the
      Company otherwise than under Section 1.5(a) except to the extent of any actual
      prejudice resulting therefrom. If any such claim or action shall be brought
      against a holder of Registrable Securities, and it shall notify the Company,
      the
      holder of Registrable Securities shall be entitled to participate therein,
      and,
      to the extent that it wishes, jointly with any other similarly notified holders
      of Registrable Securities, to assume the defense thereof with counsel reasonably
      satisfactory to the Company. After notice from the holder of Registrable
      Securities to the Company of its election to assume the defense of such claim
      or
      action, the holder of Registrable Securities shall not be liable to the Company
      for any legal or other expenses subsequently incurred by the Company in
      connection with the defense thereof other than reasonable costs of
      investigation; provided,
      that
      the Company shall have the right to employ separate counsel to represent the
      Company and its Representatives who may be subject to liability arising out
      of
      any claim in respect of which indemnity may be sought by the Company against
      the
      holder of Registrable Securities, but the fees and expenses of such counsel
      shall be for the account of such Company unless (i) the holder of Registrable
      Securities and the Company shall have mutually agreed to the retention of such
      counsel or (ii) in the written opinion of counsel to such Company,
      representation of both parties by the same counsel would be inappropriate due
      to
      actual or potential conflicts of interest between them, it being understood,
      however, that the holder of Registrable Securities shall not, in connection
      with
      any one such claim or action or separate but substantially similar or related
      claims or actions in the same jurisdiction arising out of the same general
      allegations or circumstances, be liable for the fees and expenses of more than
      one separate firm of attorneys (together with appropriate local counsel) at
      any
      time for all Indemnified Parties. No holder of Registrable Securities shall,
      without the prior written consent of the Company, effect any settlement of
      any
      claim or pending or threatened proceeding in respect of which the Company is
      or
      could have been a party and indemnity could have been sought hereunder by such
      Company, unless such settlement includes an unconditional release of such
      Company from all liability arising out of such claim or proceeding other than
      the payment of monetary damages by the holder of Registrable Securities on
      behalf of the Company. Whether or not the defense of any claim or action is
      assumed by the holder of Registrable Securities, such holder of Registrable
      Securities will not be subject to any liability for any settlement made without
      its consent, which consent will not be unreasonably withheld.

     

    (c)    If
      the
      indemnification provided for in this Section 1.5 is unavailable to the
      Indemnified Parties in respect of any Losses referred to herein, then each
      holder of Registrable Securities, in lieu of indemnifying such Company, shall
      contribute to the amount paid or payable by such Company as a result of such
      Losses in such proportion as is appropriate to reflect the relative benefits
      received by the holders of the Registrable Securities from the offering of
      the
      Registrable Securities, or if such allocation is not permitted by applicable
      law, in such proportion as is appropriate to reflect the relative benefits
      of
      the holders of the Registrable Securities in connection with the statements
      or
      omissions which resulted in such Losses, as well as any other relevant equitable
      considerations. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company and the holders of the Registrable Securities agree that it would not
      be
      just and equitable if contribution pursuant to this Section 1.5(d) were
      determined by pro rata allocation or by any other method of allocation which
      does not take account of the equitable considerations referred to in the
      immediately preceding paragraph. The amount paid or payable by an Company as
      a
      result of the Losses referred to in the immediately preceding paragraph shall
      be
      deemed to include, subject to the limitations set forth above, any legal or
      other expenses reasonably incurred by such Company in connection with
      investigating or defending any such action or claim. Notwithstanding the
      provisions of this Section 1.5, no holder of Registrable Securities shall be
      required to contribute any amount in excess of the amount by which the total
      price at which the Registrable Securities of such holder were offered to the
      public exceeds the amount of any Losses which such holder has otherwise paid
      by
      reason of such untrue or alleged untrue statement or omission or alleged
      omission. No Person guilty of fraudulent misrepresentation (within the meaning
      of Section 11(f) of the Securities Act) shall be entitled to contribution from
      any Person who was not guilty of such fraudulent misrepresentation. Each
      holder’s obligations to contribute pursuant to this Section 1.5 is several in
      the proportion that the proceeds of the offering received by such holder of
      Registrable Securities bears to the total proceeds of the offering received
      by
      all the holders of Registrable Securities and not joint.

     

    1.6   Participation
      in Underwritten Registrations.

     

    (a)    No
      Person
      may participate in any registration hereunder which is underwritten unless
      such
      Person (i) agrees to sell such Person’s securities on the basis provided in any
      underwriting arrangements approved by the Person or Persons entitled hereunder
      to approve such arrangements (including, without limitation, pursuant to the
      terms of any over-allotment or “green shoe” option requested by the managing
      underwriter(s), provided,
      that
      each holder of Registrable Securities shall not be required to sell more than
      the number of Registrable Securities that such holder has requested the Company
      to include in any registration) and (ii) completes and executes all
      questionnaires, powers of attorney, custody agreements, indemnities,
      underwriting agreements and other documents reasonably required under the terms
      of such underwriting arrangements and this Agreement.

     

    (b)    Each
      Person that is participating in any registration hereunder agrees that, upon
      receipt of any notice from the Company of the happening of any event of the
      kind
      described in Section 1.4(e) above, such Person will forthwith discontinue the
      disposition of its Registrable Securities pursuant to the Registration Statement
      until such Person’s receipt of the copies of a supplemented or amended
      prospectus as contemplated by such Section 1.4(e).

     

    1.7   Current
      Public Information.
      The
      Company covenants that it will file all reports required to be filed by it
      under
      the Securities Act and the Exchange Act and the rules and regulations adopted
      by
      the SEC thereunder, and will use reasonable best efforts to take such further
      action as the Stockholder may reasonably request, all to the extent required
      to
      enable the holders of Registrable Securities to sell Registrable Securities
      pursuant to Rule 144 or Rule 144A adopted by the SEC under the Securities Act
      or
      any similar rule or regulation hereafter adopted by the SEC. The Company shall,
      upon the request of a Designated Holder, deliver to such Designated Holder
      a
      written statement as to whether it has complied with such
      requirements.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.     Transfers
      of Certain Rights.

     

    2.1   Transfer.
      The
      rights granted to the Stockholder under this Agreement may not be assigned
      or
      transferred without the prior written consent of the Company.

     

    2.2   Transferees.
      Any
      transferee to whom rights under this Agreement are permitted by the Company
      to
      be transferred shall, as a condition to such transfer, deliver to the Company
      a
      written instrument by which such transferee agrees to be bound by the
      obligations imposed upon the Stockholder under this Agreement to the same extent
      as if such transferee were the Stockholder hereunder.

     

    2.3   Subsequent Transferees.
      A
      transferee to whom rights are transferred pursuant to this Section 2 may not
      again transfer such rights to any other person or entity, other than as provided
      in Sections 2.1 and 2.2 above.

     

    3.     Certain
      Definitions.
      The
      following capitalized terms shall have the meanings ascribed to them
      below:

     

    “Affiliate”
      means
      any Person that directly or indirectly controls, or is under common control
      with, or is controlled by such Person. As used in this definition, “control”
(including with its correlative meanings, “controlled by” and “under common
      control with”) shall mean the possession, directly or indirectly, of the power
      to direct or cause the direction of the management or policies of a Person
      (whether through ownership of securities or partnership or other ownership
      interests, by contract or otherwise). 

     

    “Common
      Stock”
      means
      the common stock, par value $.001 per share, of the Company.

     

    “Employees”
      means
      any current, former, or retired employee, office consultant, advisor,
      independent contractor, agent, officer or director of the Company.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      of the SEC promulgated thereunder.

     

    “Person”
      means
      any individual, company, partnership, firm, joint venture, association,
      joint-stock company, trust, unincorporated organization, governmental body
      or
      other entity.

     

    “Registrable
      Securities”
      means,
      subject to the immediately following sentence, (i) shares of Common Stock held
      by the Stockholder as of the Effective Date of this Agreement and (ii) any
      securities issued or issuable directly or indirectly with respect to the
      securities referred to in clause (i) by way of stock dividend or stock split
      or
      in connection with a combination of shares, recapitalization, merger,
      consolidation or other reorganization. As to any particular shares of Common
      Stock constituting Registrable Securities, such shares of Common Stock will
      cease to be Registrable Securities when they (x) have been effectively
      registered under the Securities Act and disposed of in accordance with a
      Registration Statement covering them, (y) have been sold to the public pursuant
      to Rule 144 (or by similar provision under the Securities Act), or (z) are
      eligible for resale under Rule 144(k) (or by similar provision under the
      Securities Act) without any limitation on the amount of securities that may
      be
      sold under paragraph (e) thereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Registration
      Statement”
      means
      any registration statement of the Company filed under the Securities Act which
      covers any of the Registrable Securities pursuant to the provisions of this
      Agreement, including the prospectus, amendments and supplements to such
      registration statement, including post-effective amendments, all exhibits and
      all material incorporated by reference in such registration
      statement.

     

    “SEC”
      means
      the United States Securities and Exchange Commission or any other federal agency
      at the time administering the Securities Act.

     

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

     

    4.     Miscellaneous.
      

     

    4.1   Recapitalizations,
      Exchanges, etc.
      The
      provisions of this Agreement shall apply to the full extent set forth herein
      with respect to (i) the Common Stock, (ii) any and all securities into
      which the Registrable Securities are converted, exchanged or substituted in
      any
recapitalization
      or other capital reorganization by the Company and (iii) any and all equity
      securities of the Company or any successor or assign of the Company (whether
      by
      merger, consolidation, sale of assets or otherwise) which may be issued in
      respect of, in conversion of, in exchange for or in substitution of, the Common
      Stock and shall be appropriately adjusted for any stock dividends, splits,
      reverse splits, combinations, recapitalizations and the like occurring after
      the
      date hereof. The Company shall cause any successor, assign or issuer of
      securities that are Registrable Securities (whether by merger, consolidation,
      sale of assets or otherwise) to enter into a new registration rights agreement
      with the Designated Holders on terms substantially the same as this Agreement
      as
      a condition of any such transaction.

     

    4.2   No
      Inconsistent Agreements.
      The
      Company has not and shall not enter into any agreement with respect to its
      securities that is inconsistent with the rights granted to the Stockholders
      in
      this Agreement or grant any additional registration rights to any Person or
      with
      respect to any securities which are not Registrable Securities which are prior
      in right to or inconsistent with the rights granted in this Agreement. The
      granting of demand registration rights or pari passu piggyback registration
      rights shall be deemed not to be inconsistent with the rights granted to
      Stockholders in this Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.3   Amendments and Waivers.
      The
      provisions of this Agreement may be amended and the Company may take action
      herein prohibited, or omit to perform any act herein required to be performed
      by
      it, if, but only if, the Company has obtained the written consent of holders
      of
      at least a majority of the Registrable Securities then in existence.

     

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

     

    4.5   Counterparts.
      This
      Agreement may be executed in one or more counterparts each of which shall be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    4.6   Notices.
      All
      notices, requests and other communications to any party hereunder shall be
      in
      writing (including telecopy, telex or similar writing) and shall be deemed
      given
      or made as of the date delivered, if delivered personally or by telecopy
      (provided that delivery by telecopy shall be followed by delivery of an
      additional copy personally, by mail or overnight courier), one day after being
      delivered by overnight courier or three days after being mailed by registered
      or
      certified mail (postage prepaid, return receipt requested), to the parties
      at
      the following addresses (or to such other address or telex or telecopy number
      as
      a party may have specified by notice given to the other party pursuant to this
      provision):

     

    If
      to the
      Company, to:

    

    United
      Fuel & Energy Corporation

    405
      North
      Marienfeld

    Suite
      300

    Midland,
      Texas 79701

    Attention:
      President

    

    With
      a
      copy to:

    

    Akin
      Gump
      Strauss Hauer & Feld, LLP

    300
      Convent St., Suite 1500

    San
      Antonio, Texas 78205

    Attention:
      Will Liebmann

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If
      to
      each Stockholder, to:

     

    The
      address or facsimile number of each Stockholder as recorded in the stockholders
      records of the Company.

     

    4.7   Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Texas, without regard to the conflicts of laws rules or
      provisions.

     

    4.8   Forum;
      Service of Process.
      Any
      legal suit, action or proceeding brought by any party or any of its affiliates
      arising out of or based upon this Agreement shall be instituted in any federal
      or state court in Midland County, Texas, and each party waives any objection
      which it may now or hereafter have to the laying of venue or any such
      proceeding, and irrevocably submits to the jurisdiction of such courts in any
      such suit, action or proceeding.

     

    4.9   Captions.
      The
      captions, headings and arrangements used in this Agreement are for convenience
      only and do not in any way limit or amplify the terms and provisions
      hereof.

     

    4.10   No
      Prejudice.
      The
      terms of this Agreement shall not be construed in favor of or against any party
      on account of its participation in the preparation hereof.

     

    4.11   Words
      in Singular and Plural Form.
      Words
      used in the singular form in this Agreement shall be deemed to import the
      plural, and vice versa, as the sense may require.

     

    4.12   Successors
      and Assigns; Third Party Beneficiaries.
      This
      Agreement and all of the provisions hereof shall be binding upon and inure
      to
      the benefit of the parties hereto and their respective successors, permitted
      assigns, executors, administrators and heirs.

     

    4.13   Entire
      Agreement.
      This
      Agreement sets forth the entire agreement and understanding between the parties
      as to the subject matter hereof and merges and supersedes all prior discussions,
      agreements and understandings of any and every nature among them.

     

    [Remainder
      of page intentionally left blank.]THE
      REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES
      THAT
      IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN
      PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL
      NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR
      A
      PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER
      THAN (I) FERRIS, BAKER WATTS, INCORPORATED (“FERRIS”) OR AN UNDERWRITER OR A
      SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER
      OR
      PARTNER OF FERRIS OR OF ANY SUCH UNDERWRITER OR SELECTED
      DEALER.

     

    THIS
      PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF THE CONSUMMATION BY
      CROSSFIRE CAPITAL CORPORATION OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET
      ACQUISITION OR OTHER SIMILAR BUSINESS COMBINATION (“BUSINESS COMBINATION”) (AS
      DESCRIBED MORE FULLY IN THE COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN) OR
      _____________, 2007. VOID AFTER 5:00 P.M. EASTERN TIME, _____________,
      2011.

     

    UNIT
      PURCHASE OPTION

     

    For
      the Purchase of 

     

    500,000
      Units

     

    of

     

    CROSSFIRE
      CAPITAL CORPORATION

     

     

    1.      
Purchase
      Option.
      

     

    THIS
      CERTIFIES THAT, in consideration of $100 duly paid by or on behalf of
      ____________________ (“Holder”), as registered owner of this Purchase Option, to
      Crossfire Capital Corporation (“Company”), Holder is entitled, at any time or
      from time to time upon the later of the consummation of a Business Combination
      or _________, 2007 (“Commencement Date”), and at or before 5:00 p.m., Eastern
      Time, ____________, 2011 (“Expiration Date”), but not thereafter, to subscribe
      for, purchase and receive, in whole or in part, up to Five Hundred Thousand
      (500,000) units (“Units”) of the Company, each Unit consisting of one share of
      common stock of the Company, par value $.0001 per share (“Common Stock”), and
      two warrants (“Warrant(s)”) expiring five years from the effective date
      (“Effective Date”) of the Company’s registration statement on Form S-1
      (“Registration Statement”) pursuant to which Units are offered for sale to the
      public (“Offering”). Each Warrant is the same as the warrant included in the
      Units being registered for sale to the public by way of the Registration
      Statement (“Public Warrants”) except that the Warrants included in the Purchase
      Option have an exercise price of $6.25 per share (125% of the exercise price
      of
      the Public Warrants), subject to adjustment as provided in Section 6 hereof.
      If
      the Expiration Date is a day on which banking institutions are authorized by
      law
      to close, then this Purchase Option may be exercised on the next succeeding
      day
      which is not such a day in accordance with the terms herein. During the period
      ending on the Expiration Date, the Company agrees not to take any action that
      would terminate the Purchase Option. This Purchase Option is initially
      exercisable at $7.50 per Unit (125% of the price of the Units sold in the
      Offering) so purchased; provided, however, that upon the occurrence of any
      of
      the events specified in Section 6 hereof, the rights granted by this Purchase
      Option, including the exercise price per Unit and the number of Units (and
      shares of Common Stock and Warrants) to be received upon such exercise, shall
      be
      adjusted as therein specified. The term “Exercise Price” shall mean the initial
      exercise price or the adjusted exercise price, depending on the
      context.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    2.   Exercise.

     

    2.1       
      Exercise
      Form.
      In
      order to exercise this Purchase Option, the exercise form attached hereto must
      be duly executed and completed and delivered to the Company, together with
      this
      Purchase Option and payment of the Exercise Price for the Units being purchased
      payable in cash or by certified check or official bank check. If the
      subscription rights represented hereby shall not be exercised at or before
      5:00
      p.m., Eastern time, on the Expiration Date this Purchase Option shall become
      and
      be void without further force or effect, and all rights represented hereby
      shall
      cease and expire.

     

    2.2         
      Legend.
      Each
      certificate for the securities purchased under this Purchase Option shall bear
      a
      legend as follows unless such securities have been registered under the
      Securities Act of 1933, as amended (“Act”):

     

    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended (“Act”) or applicable state law. The
      securities may not be offered for sale, sold or otherwise transferred except
      pursuant to an effective registration statement under the Act, or pursuant
      to an
      exemption from registration under the Act and applicable state
      law.”

     

    2.3         
      Cashless
      Exercise.

     

    2.3.1  Determination
      of Amount.
      In lieu
      of the payment of the Exercise Price multiplied by the number of Units for
      which
      this Purchase Option is exercisable (and in lieu of being entitled to receive
      Common Stock and Warrants) in the manner required by Section 2.1, the Holder
      shall have the right (but not the obligation) to convert any exercisable but
      unexercised portion of this Purchase Option into Units (“Conversion Right”) as
      follows: upon exercise of the Conversion Right, the Company shall deliver to
      the
      Holder (without payment by the Holder of any of the Exercise Price in cash)
      that
      number of Units equal to the quotient obtained by dividing (x) the “Value” (as
      defined below) of the portion of the Purchase Option being converted by (y)
      the
      Current Market Price (as defined below) of a Unit. The “Value” of the portion of
      the Purchase Option being converted shall equal the remainder derived from
      subtracting (a) (i) the Exercise Price multiplied by (ii) the number of Units
      underlying the portion of this Purchase Option being converted from (b) the
      Current Market Price of a Unit multiplied by the number of Units underlying
      the
      portion of the Purchase Option being converted. The “Current Market Price” of a
      Unit shall mean (i) if the Unit is listed on a national securities exchange
      or
      quoted on the Nasdaq National Market, Nasdaq SmallCap Market or NASD OTC
      Bulletin Board (or successor such as the Bulletin Board Exchange), the average
      closing price of a Unit for thirty (30) trading days immediately preceding
      the
      date of determination of the Current Market Price in the principal trading
      market for the Unit as reported by the exchange, Nasdaq or the NASD, as the
      case
      may be; (ii) if the Unit is not listed on a national securities exchange or
      quoted on the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC
      Bulletin Board (or successor such as the Bulletin Board Exchange), but is traded
      in the residual over-the-counter market, the closing bid price for the Unit
      on
      the last trading day preceding the date in question for which such quotations
      are reported by the Pink Sheets, LLC or similar publisher of such quotations;
      and (iii) if the fair market value of the Unit cannot be determined pursuant
      to
      clause (i) or (ii) above, such price as the Board of Directors of the Company
      (the “Board”) shall determine, in good faith.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    2.3.2  Mechanics
      of Cashless Exercise.
      The
      Cashless Exercise Right may be exercised by the Holder on any business day
      on or
      after the Commencement Date and not later than the Expiration Date by delivering
      the Purchase Option with a duly executed exercise form attached hereto with
      the
      cashless exercise section completed to the Company, exercising the Cashless
      Exercise Right and specifying the total number of Units the Holder will purchase
      pursuant to such Cashless Exercise Right.

     

    3.   Transfer.
      

     

    3.1  General
      Restrictions.
      The
      registered Holder of this Purchase Option agrees that it will not sell,
      transfer, assign, pledge or hypothecate this Purchase Option for a period of
      one
      year following the Effective Date to anyone other than (i) Ferris or an
      underwriter or a selected dealer participating in the Offering, or (ii) a bona
      fide officer or partner of Ferris or of any such underwriter or selected dealer.
      On and after the first anniversary of the Effective Date, transfers to others
      may be made subject to compliance with or exemptions from applicable securities
      laws. In order to make any permitted assignment, the Holder must deliver to
      the
      Company the assignment form attached hereto duly executed and completed,
      together with the Purchase Option and payment of all transfer taxes, if any,
      payable in connection therewith. The Company shall within five business days
      transfer this Purchase Option on the books of the Company and shall execute
      and
      deliver a new Purchase Option or Purchase Options of like tenor to the
      appropriate assignee(s) expressly evidencing the right to purchase the aggregate
      number of Units purchasable hereunder or such portion of such number as shall
      be
      contemplated by any such assignment.

     

    3.2  Restrictions
      Imposed by the Act.
      The
      securities evidenced by this Purchase Option shall not be transferred unless
      and
      until (i) the Company has received the opinion of counsel for the Holder that
      the securities may be transferred pursuant to an exemption from registration
      under the Act and applicable state securities laws, the availability of which
      is
      established to the reasonable satisfaction of the Company (the Company hereby
      agreeing that the opinion of Gersten Savage LLP shall be deemed satisfactory
      evidence of the availability of an exemption), or (ii) a registration statement
      or a post-effective amendment to the Registration Statement relating to the
      offer and sale of such securities has been filed by the Company and declared
      effective by the Securities and Exchange Commission and compliance with
      applicable state securities law has been established.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.   New
      Purchase Options to be Issued.

     

    4.1  Partial
      Exercise or Transfer.
      Subject
      to the restrictions in Section 3 hereof, this Purchase Option may be exercised
      or assigned in whole or in part. In the event of the exercise or assignment
      hereof in part only, upon surrender of this Purchase Option for cancellation,
      together with the duly executed exercise or assignment form and funds sufficient
      to pay any Exercise Price and/or transfer tax if exercised pursuant to Section
      2.1 hereto, the Company shall cause to be delivered to the Holder without charge
      a new Purchase Option of like tenor to this Purchase Option in the name of
      the
      Holder evidencing the right of the Holder to purchase the number of Units
      purchasable hereunder as to which this Purchase Option has not been exercised
      or
      assigned.

     

    4.2  Lost
      Certificate.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Purchase Option and of reasonably satisfactory
      indemnification or the posting of a bond, the Company shall execute and deliver
      a new Purchase Option of like tenor and date. Any such new Purchase Option
      executed and delivered as a result of such loss, theft, mutilation or
      destruction shall constitute a substitute contractual obligation on the part
      of
      the Company.

     

    5.  
Registration
      Rights.
      

     

    5.1  
Demand
      Registration.
      

     

    5.1.1  Grant
      of Right.
      The
      Company, upon written demand (“Demand Notice”) of the Holder(s) of at least 51%
      of the Purchase Options and/or the underlying Units and/or the underlying
      securities (“Majority Holders”), agrees to register on one occasion, all or any
      portion of the Common Stock, the Warrants and the Common Stock underlying the
      Warrants underlying such Purchase Options (collectively, the “Registrable
      Securities”) as requested by the Majority Holders in the Demand Notice, provided
      that no such registration will be required unless the Holders request
      registration of an aggregate of at least 51% of the outstanding Registrable
      Securities. On such occasion, the Company will file a new registration statement
      or a post-effective amendment to the Registration Statement covering the
      Registrable Securities within sixty days after receipt of the Demand Notice
      and
      use its best efforts to have such registration statement or post-effective
      amendment declared effective as soon as possible thereafter. The demand for
      registration may be made at any time during a period of four years beginning
      on
      the first anniversary of the Effective Date. The Company covenants and agrees
      to
      give written notice of its receipt of any Demand Notice by any Holder(s) to
      all
      other registered Holders of the Purchase Options and/or the Registrable
      Securities within ten days from the date of the receipt of any such Demand
      Notice, who shall have five days from the receipt of such Notice in which to
      notify the Company of their desire to have their Registrable Securities included
      in the Registration Statement. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    5.1.2  Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the reasonable expenses of any legal counsel
      selected by the Holders to represent them in connection with the sale of the
      Registrable Securities, but the Holders shall pay any and all underwriting
      commissions, if any. The Company agrees to use its commercially reasonable
      efforts to qualify or register the Registrable Securities in such States as
      are
      reasonably requested by the Majority Holder(s); provided, however, that in
      no
      event shall the Company be required to register the Registrable Securities
      in a
      State in which such registration would cause (i) the Company to be obligated
      to
      qualify to do business in such State or execute a general consent to service
      of
      process, or would subject the Company to taxation as a foreign corporation
      doing
      business in such jurisdiction or (ii) the principal stockholders of the Company
      to be obligated to escrow their shares of capital stock of the Company. The
      Company shall cause any registration statement or post-effective amendment
      filed
      pursuant to the demand rights granted under Section 5.1.1 to remain effective
      for a period of nine consecutive months from the effective date of such
      registration statement or post-effective amendment or until the Holders have
      completed the distribution of the Registrable Securities included in the
      Registration Statement, whichever occurs first.

     

    5.1.3. Deferred
      Filing.
      If (i)
      in the good faith judgment of the Board, filing a registration statement
      pursuant to Section 5.1 would be seriously detrimental to the Company and the
      Board concludes, as a result, that it is essential to defer the filing of such
      registration statement at such time, and (ii) the Company shall furnish to
      such
      Holders a certificate signed by the President of the Company stating that in
      the
      good faith judgment of the Board it would be seriously detrimental to the
      Company for such registration statement to be filed in the near future and
      that
      it is, therefore, essential to defer the filing of such registration statement,
      then the Company shall have the right to defer such filing on two occasions
      for
      an aggregate of not more than one hundred and twenty (120) days in any
      twelve-month period. 

     

    5.1.4.
      No
      Cash Settlement Option.
      The
      Company is only required to use its best efforts to cause a registration
      statement covering issuance of the Registrable Securities to be declared
      effective, and once effective, only to use its best efforts to maintain the
      effectiveness of the registration statement. The Company will not be obligated
      to deliver securities, and there are no contractual penalties for failure to
      deliver securities, if a registration statement is not effective at the time
      of
      exercise. Additionally, in no event is the Company obligated to settle any
      Purchase Option, in whole or in part, for cash in the event it is unable to
      register the Registrable Securities. 

     

    5.2  
“Piggy-Back”
      Registration.
      

     

    5.2.1  Grant
      of Right.
      In
      addition to the demand right of registration, the Holders of the Purchase
      Options shall have the right for a period of seven years commencing on the
      Effective Date, to include the Registrable Securities as part of any other
      registration of securities filed by the Company (other than in connection with
      a
      transaction contemplated by Rule 145(a) promulgated under the Act or pursuant
      to
      Form S-8 or any successor or equivalent form); provided, however, that if,
      in
      the written opinion of the Company’s managing underwriter or underwriters, if
      any, for such offering, the inclusion of the Registrable Securities, when added
      to the securities being registered by the Company or the selling stockholder(s),
      will exceed the maximum amount of the Company’s securities which can be marketed
      (i) at a price reasonably related to their then current market value, and (ii)
      without materially and adversely affecting the entire offering, then the Company
      will still be required to include the Registrable Securities, but may require
      the Holders to agree, in writing, to delay the sale of all or any portion of
      the
      Registrable Securities for a period of 90 days from the effective date of the
      offering, provided, further, that if the sale of any Registrable Securities
      is
      so delayed, then the number of securities to be sold by all stockholders in
      such
      public offering shall be apportioned pro rata among all such selling
      stockholders, including all holders of the Registrable Securities, according
      to
      the total amount of securities of the Company owned by said selling
      stockholders, including all holders of the Registrable Securities.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    5.2.2  Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the expenses of any legal counsel selected
      by
      the Holders to represent them in connection with the sale of the Registrable
      Securities, but the Holders shall pay any and all underwriting commissions.
      In
      the event of such a proposed registration, the Company shall furnish the then
      Holders of outstanding Registrable Securities with not less than ten days
      written notice prior to the proposed date of filing of such registration
      statement. Such notice to the Holders shall continue to be given for each
      applicable registration statement filed (during the period in which the Purchase
      Option is exercisable) by the Company until such time as all of the Registrable
      Securities have been registered and sold. The holders of the Registrable
      Securities shall exercise the “piggy back” rights provided for herein by giving
      written notice, within ten days of the receipt of the Company’s notice of its
      intention to file a registration statement. The Company shall cause any
      registration statement filed pursuant to the above “piggyback” rights that does
      not relate to a firm commitment underwritten offering to remain effective for
      at
      least nine consecutive months from the effective date of such registration
      statement or until the Holders have completed the distribution of the
      Registrable Securities in the registration statement, whichever occurs
      first.

     

    5.3          
      Damages.
      Intentionally
      omitted.
      

     

    5.4          
      General
      Terms.
      

     

    5.4.1  Indemnification.
      The
      Company shall indemnify the Holder(s) of the Registrable Securities to be sold
      pursuant to any registration statement hereunder and each person, if any, who
      controls such Holders within the meaning of Section 15 of the Act or Section
      20(a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”),
      against all loss, claim, damage, expense or liability (including all reasonable
      attorneys’ fees and other expenses reasonably incurred in investigating,
      preparing or defending against litigation, commenced or threatened, or any
      claim
      whatsoever) to which any of them may become subject under the Act, the Exchange
      Act or otherwise, arising from such registration statement but only to the
      same
      extent and with the same effect as the provisions pursuant to which the Company
      has agreed to indemnify the underwriters contained in Section 5 of the
      Underwriting Agreement in the Offering. The Holder(s) of the Registrable
      Securities to be sold pursuant to such registration statement, and their
      successors and assigns, shall severally, and not jointly, indemnify the Company,
      its officers and directors and each person, if any, who controls the Company
      within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
      Act, against all loss, claim, damage, expense or liability (including all
      reasonable attorneys’ fees and other expenses reasonably incurred in
      investigating, preparing or defending against any claim whatsoever) to which
      they may become subject under the Act, the Exchange Act or otherwise, arising
      from information furnished by or on behalf of such Holders, or their successors
      or assigns, in writing, for specific inclusion in such registration statement
      to
      the same extent and with the same effect as the provisions contained in Section
      5 of the Underwriting Agreement pursuant to which the underwriters have agreed
      to indemnify the Company.

     

    
      
         

      

      
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    5.4.2  Exercise
      of Purchase Options.
      Nothing
      contained in this Purchase Option shall be construed as requiring the Holder(s)
      to exercise their Purchase Options or Warrants underlying such Purchase Options
      prior to or after the initial filing of any registration statement or the
      effectiveness thereof; provided however, that if the Company shall exercise
      its
      right to redeem the Public Warrants, the Holders shall, on or prior to the
      date
      fixed for such redemption, exercise this Unit Purchase Option in
      full.

     

    5.4.3  Documents
      Delivered to Holders.
      The
      Company shall furnish Ferris, as representative of the Holders participating
      in
      any of the foregoing offerings, a signed counterpart, addressed to the
      participating Holders, of (i) an opinion of counsel to the Company, dated the
      effective date of such registration statement (or, if such registration includes
      an underwritten public offering, an opinion dated the date of the closing under
      any underwriting agreement related thereto), and (ii) a “cold comfort” letter
      dated the effective date of such registration statement (and, if such
      registration includes an underwritten public offering, a letter dated the date
      of the closing under the underwriting agreement) signed by the independent
      public accountants who have issued a report on the Company’s financial
      statements included in such registration statement, in each case covering
      substantially the same matters with respect to such registration statement
      (and
      the prospectus included therein) and, in the case of such accountants’ letter,
      with respect to events subsequent to the date of such financial statements,
      as
      are customarily covered in opinions of issuer’s counsel and in accountants’
letters delivered to underwriters in underwritten public offerings of
      securities; provided
      however,
      that in
      the case of an underwritten offering, the provisions of the underwriting
      agreement described in Section 5.4.4 shall control. The Company shall also
      deliver promptly to Ferris, as representative of the Holders participating
      in
      the offering, the correspondence and memoranda described below and copies of
      all
      correspondence between the Commission and the Company, its counsel or auditors
      and all memoranda relating to discussions with the Commission or its staff
      with
      respect to the registration statement and permit Ferris, as representative
      of
      the Holders, to do such investigation, upon reasonable advance notice, with
      respect to information contained in or omitted from the registration statement
      as it deems reasonably necessary to comply with applicable securities laws
      or
      rules of the National Association of Securities Dealers, Inc. (“NASD”). Such
      investigation shall include access to books, records and properties and
      opportunities to discuss the business of the Company with its officers and
      independent auditors, all to such reasonable extent and at such reasonable
      times
      and as often as Ferris, as representative of the Holders, shall reasonably
      request. The Company shall not be required to disclose any confidential
      information or other records to Ferris, as representative of the Holders, or
      to
      any other person, until and unless such persons shall have entered into
      confidentiality agreements (in form and substance reasonably satisfactory to
      the
      Company) with the Company with respect thereto.

     

    
      
         

      

      
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    5.4.4  Underwriting
      Agreement.
      The
      Company shall enter into an underwriting agreement with the managing
      underwriter(s), if any, selected by any Holders whose Registrable Securities
      are
      being registered pursuant to this Section 5, which managing underwriter shall
      be
      reasonably acceptable to the Company. Such agreement shall be reasonably
      satisfactory in form and substance to the Company, each Holder and such managing
      underwriters, and shall contain such representations, warranties and covenants
      by the Company and such other terms as are customarily contained in agreements
      of that type used by the managing underwriter. The Holders shall be parties
      to
      any underwriting agreement relating to an underwritten sale of their Registrable
      Securities and may, at their option, require that any or all the
      representations, warranties and covenants of the Company to or for the benefit
      of such underwriters shall also be made to and for the benefit of such Holders.
      Such Holders shall not be required to make any representations or warranties
      to
      or agreements with the Company or the underwriters except as they may relate
      to
      such Holders and their intended methods of distribution or as are customarily
      required of selling shareholders in a firm commitment underwritten offering.
      Such Holders, however, shall agree to such covenants and indemnification and
      contribution obligations for selling stockholders as are customarily contained
      in agreements of that type used by the managing underwriter. Further, such
      Holders shall execute appropriate custody agreements and otherwise cooperate
      fully in the preparation of the registration statement and other documents
      relating to any offering in which they include securities pursuant to this
      Section 5. Each Holder shall also furnish to the Company such information
      regarding itself, the Registrable Securities held by it, and the intended method
      of disposition of such securities as shall be reasonably required to effect
      the
      registration of the Registrable Securities.

     

    5.4.5  Rule
      144 Sale.
      Notwithstanding anything contained in this Section 5 to the contrary, the
      Company shall have no obligation pursuant to Sections 5.1 or 5.2 for the
      registration of Registrable Securities held by any Holder, where such Holder
      would then be entitled to sell under Rule 144 within any three-month period
      (or
      such other period prescribed under Rule 144 as may be provided by amendment
      thereof) all of the Registrable Securities then held by such
      Holder.

     

    5.4.6  Supplemental
      Prospectus.
      Each
      Holder agrees, that upon receipt of any notice from the Company of the happening
      of any event as a result of which the prospectus included in the Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omits to state a material fact required to be stated therein or necessary to
      make the statements therein not misleading in light of the circumstances then
      existing, or that would otherwise require disclosure of material nonpublic
      information that, if disclosed at such time, would be materially harmful to
      the
      Company, such Holder will immediately discontinue disposition of Registrable
      Securities pursuant to the Registration Statement covering such Registrable
      Securities until such Holder’s receipt of the copies of a supplemental or
      amended prospectus, or the public disclosure and dissemination of such
      information, as the case may be, and, if so desired by the Company, such Holder
      shall deliver to the Company (at the expense of the Company) or destroy (and
      deliver to the Company a certificate of such destruction) all copies, other
      than
      permanent file copies then in such Holder’s possession, of the prospectus
      covering such Registrable Securities current at the time of receipt of such
      notice.

     

    
      
         

      

      
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    6.   Adjustments.

     

    6.1  Adjustments
      to Exercise Price and Number of Securities.
      The
      Exercise Price and the number of Units underlying the Purchase Option shall
      be
      subject to adjustment from time to time as hereinafter set forth:

     

    6.1.1  Stock
      Dividends; Split Ups.
      If
      after the date hereof, and subject to the provisions of Section 6.3 below,
      the
      number of outstanding shares of Common Stock is increased by a stock dividend
      payable in shares of Common Stock or by a split up of shares of Common Stock
      or
      other similar event, then, on the effective day thereof, the number of shares
      of
      Common Stock underlying each of the Units purchasable hereunder shall be
      increased in proportion to such increase in outstanding shares. In such case,
      the number of shares of Common Stock, and the exercise price applicable thereto,
      underlying the Warrants underlying each of the Units purchasable hereunder
      shall
      be adjusted in accordance with the terms of the Warrant Agreement governing
      the
      Warrants (the “Warrant Agreement”). For example, if the Company declares a
      two-for-one stock dividend and at the time of such dividend this Purchase Option
      is for the purchase of one Unit at $7.50 per whole Unit (the Warrant underlying
      the Units is exercisable for $6.25 per share), upon effectiveness of the
      dividend, this Purchase Option will be adjusted to allow for the purchase of
      one
      Unit at $7.50 per Unit, each Unit entitling the holder to receive two shares
      of
      Common Stock and four Warrants (each Warrant exercisable for $3.125 per
      share).

     

    6.1.2  Aggregation
      of Shares.
      If
      after the date hereof, and subject to the provisions of Section 6.3, the number
      of outstanding shares of Common Stock is decreased by a consolidation,
      combination or reclassification of shares of Common Stock or other similar
      event, then, on the effective date thereof, the number of shares of Common
      Stock
      underlying each of the Units purchasable hereunder shall be decreased in
      proportion to such decrease in outstanding shares. In such case, the number
      of
      shares of Common Stock, and the exercise price applicable thereto, underlying
      the Warrants underlying each of the Units purchasable hereunder shall be
      adjusted in accordance with the terms of the Warrants. 

     

    6.1.3  Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding shares of Common
      Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or that
      solely affects the par value of such shares of Common Stock, or in the case
      of
      any merger or consolidation of the Company with or into another corporation
      (other than a consolidation or merger in which the Company is the continuing
      corporation and that does not result in any reclassification or reorganization
      of the outstanding shares of Common Stock), or in the case of any sale or
      conveyance to another corporation or entity of the property of the Company
      as an
      entirety or substantially as an entirety in connection with which the Company
      is
      dissolved, the Holder of this Purchase Option shall have the right thereafter
      (until the expiration of the right of exercise of this Purchase Option) to
      receive upon the exercise hereof, for the same aggregate Exercise Price payable
      hereunder immediately prior to such event, the kind and amount of shares of
      stock or other securities or property (including cash) receivable upon such
      reclassification, reorganization, merger or consolidation, or upon a dissolution
      following any such sale or transfer, by a Holder of the number of shares of
      Common Stock of the Company obtainable upon exercise of this Purchase Option
      and
      the underlying Warrants immediately prior to such event; and if any
      reclassification also results in a change in shares of Common Stock covered
      by
      Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections
      6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall
      similarly apply to successive reclassifications, reorganizations, mergers or
      consolidations, sales or other transfers.

     

    
      
         

      

      
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    6.1.4  Changes
      in Form of Purchase Option.
      This
      form of Purchase Option need not be changed because of any change pursuant
      to
      this Section, and Purchase Options issued after such change may state the same
      Exercise Price and the same number of Units as are stated in the Purchase
      Options initially issued pursuant to this Agreement. The acceptance by any
      Holder of the issuance of new Purchase Options reflecting a required or
      permissive change shall not be deemed to waive any rights to an adjustment
      occurring after the Commencement Date or the computation thereof.

     

    6.2  Substitute
      Purchase Option.
      In case
      of any consolidation of the Company with, or merger of the Company with or
      into,
      another corporation (other than a consolidation or merger which does not result
      in any reclassification or change of the outstanding Common Stock), the
      corporation formed by such consolidation or merger shall execute and deliver
      to
      the Holder a supplemental Purchase Option providing that the holder of each
      Purchase Option then outstanding or to be outstanding shall have the right
      thereafter (until the stated expiration of such Purchase Option) to receive,
      upon exercise of such Purchase Option, the kind and amount of shares of stock
      and other securities and property receivable upon such consolidation or merger,
      by a holder of the number of shares of Common Stock of the Company for which
      such Purchase Option might have been exercised immediately prior to such
      consolidation, merger, sale or transfer. Such supplemental Purchase Option
      shall
      provide for adjustments which shall be identical to the adjustments provided
      in
      Section 6. The above provision of this Section shall similarly apply to
      successive consolidations or mergers.

     

    6.3  Elimination
      of Fractional Interests.
      The
      Company shall not be required to issue certificates representing fractions
      of
      shares of Common Stock or Warrants upon the exercise of the Purchase Option,
      nor
      shall it be required to issue scrip or pay cash in lieu of any fractional
      interests, it being the intent of the parties that all fractional interests
      shall be eliminated by rounding any fraction up to the nearest whole number
      of
      Warrants, shares of Common Stock or other securities, properties or
      rights.

     

    7.  Reservation
      and Listing.
      The
      Company shall at all times reserve and keep available out of its authorized
      shares of Common Stock, solely for the purpose of issuance upon exercise of
      the
      Purchase Options or the Warrants underlying the Purchase Option, such number
      of
      shares of Common Stock or other securities, properties or rights as shall be
      issuable upon the exercise thereof. The Company covenants and agrees that,
      upon
      exercise of the Purchase Options and payment of the Exercise Price therefor,
      in
      accordance with the terms hereby, all shares of Common Stock and other
      securities issuable upon such exercise shall be duly and validly issued, fully
      paid and non-assessable and not subject to preemptive rights of any stockholder.
      The Company further covenants and agrees that upon exercise of the Warrants
      underlying the Purchase Options and payment of the respective Warrant exercise
      price therefor, in accordance with the terms of the Warrant Agreement, all
      shares of Common Stock and other securities issuable upon such exercise shall
      be
      duly and validly issued, fully paid and non-assessable and not subject to
      preemptive rights of any stockholder. As long as the Purchase Options shall
      be
      outstanding, the Company shall use its commercially reasonable efforts to cause
      all (i) shares of Common Stock issuable upon exercise of the Purchase Options,
      (ii) Warrants issuable upon exercise of the Purchase Options and (iii) shares
      of
      Common Stock issuable upon exercise of the Warrants included in the Units
      issuable upon exercise of the Purchase Option to be listed (subject to official
      notice of issuance) on all securities exchanges (or, if applicable on the Nasdaq
      National Market, SmallCap Market, OTC Bulletin Board or any successor trading
      market) on which the Units, Common Stock or the Public Warrants issued to the
      public in the Offering may then be listed and/or quoted.

     

    
      
         

      

      
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    8.  Certain
      Notice Requirements.

     

    8.1  Holder’s
      Right to Receive Notice.
      Nothing
      herein shall be construed as conferring upon the Holders the right to vote
      or
      consent or to receive notice as a stockholder for the election of directors
      or
      any other matter, or as having any rights whatsoever as a stockholder of the
      Company. If, however, at any time prior to the expiration of the Purchase
      Options and their exercise, any of the events described in Section 8.2 shall
      occur, then, in one or more of said events, the Company shall give written
      notice of such event at least fifteen days prior to the date fixed as a record
      date or the date of closing the transfer books for the determination of the
      stockholders entitled to such dividend, distribution, conversion or exchange
      of
      securities or subscription rights, or entitled to vote on such proposed
      dissolution, liquidation, winding up or sale. Such notice shall specify such
      record date or the date of the closing of the transfer books, as the case may
      be. Notwithstanding the foregoing, the Company shall deliver to each Holder
      a
      copy of each notice given to the other stockholders of the Company at the same
      time and in the same manner that such notice is given to the
      stockholders.

     

    8.2  Events
      Requiring Notice.
      The
      Company shall be required to give the notice described in this Section 8 upon
      one or more of the following events: (i) if the Company shall take a record
      of
      the holders of its shares of Common Stock for the purpose of entitling them
      to
      receive a dividend or distribution payable otherwise than in cash, or a cash
      dividend or distribution payable otherwise than out of retained earnings, as
      indicated by the accounting treatment of such dividend or distribution on the
      books of the Company, (ii) the Company shall offer to all the holders of its
      Common Stock any additional shares of capital stock of the Company or securities
      convertible into or exchangeable for shares of capital stock of the Company,
      or
      any option, right or warrant to subscribe therefor, or (iii) a dissolution,
      liquidation or winding up of the Company (other than in connection with a
      consolidation or merger) or a sale of all or substantially all of its property,
      assets and business shall be proposed.

     

    8.3  Notice
      of Change in Exercise Price.
      The
      Company shall, promptly after an event requiring a change in the Exercise Price
      pursuant to Section 6 hereof, send notice to the Holders of such event and
      change (“Price Notice”). The Price Notice shall describe the event causing the
      change and the method of calculating same and shall be certified as being true
      and accurate by the Company’s Chief Financial Officer.

     

    8.4  Transmittal
      of Notices.
      All
      notices, requests, consents and other communications under this Purchase Option
      shall be in writing and shall be deemed to have been duly made when hand
      delivered, or mailed by express mail or private courier service: (i) If to
      the
      registered Holder of the Purchase Option, to the address of such Holder as
      shown
      on the books of the Company, or (ii) if to the Company, to following address
      or
      to such other address as the Company may designate by notice to the Holders:
      

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Crossfire
      Capital Corporation

    950
      Third
      Avenue, Suite 2500

    New
      York,
      NY 10022

    Attn:
      Martin Oliner

     

    9.  
Miscellaneous.

     

    9.1  Amendments.
      The
      Company and Ferris may from time to time supplement or amend this Purchase
      Option without the approval of any of the Holders in order to cure any
      ambiguity, to correct or supplement any provision contained herein that may
      be
      defective or inconsistent with any other provisions herein, or to make any
      other
      provisions in regard to matters or questions arising hereunder that the Company
      and Ferris may deem necessary or desirable and that the Company and Ferris
      deem
      shall not adversely affect the interest of the Holders. All other modifications
      or amendments shall require the written consent of and be signed by the party
      against whom enforcement of the modification or amendment is
      sought.

     

    9.2  Headings.
      The
      headings contained herein are for the sole purpose of convenience of reference,
      and shall not in any way limit or affect the meaning or interpretation of any
      of
      the terms or provisions of this Purchase Option.

     

    10.  Entire
      Agreement.
      This
      Purchase Option (together with the other agreements and documents being
      delivered pursuant to or in connection with this Purchase Option) constitutes
      the entire agreement of the parties hereto with respect to the subject matter
      hereof, and supersedes all prior agreements and understandings of the parties,
      oral and written, with respect to the subject matter hereof.

     

    10.1  Binding
      Effect.
      This
      Purchase Option shall inure solely to the benefit of and shall be binding upon,
      the Holder and the Company and their permitted assignees, respective successors,
      legal representative and assigns, and no other person shall have or be construed
      to have any legal or equitable right, remedy or claim under or in respect of
      or
      by virtue of this Purchase Option or any provisions herein
      contained.

     

    10.2  Governing
      Law; Submission to Jurisdiction.
      This
      Purchase Option shall be governed by and construed and enforced in accordance
      with the laws of the State of Maryland, without giving effect to conflict of
      laws. The Company hereby agrees that any action, proceeding or claim against
      it
      arising out of, or relating in any way to this Purchase Option shall be brought
      and enforced in the courts of the State of Maryland or of the United States
      of
      America for the Southern District of Maryland, and irrevocably submits to such
      jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives
      any objection to such exclusive jurisdiction and that such courts represent
      an
      inconvenient forum. Any process or summons to be served upon the Company may
      be
      served by transmitting a copy thereof by registered or certified mail, return
      receipt requested, postage prepaid, addressed to it at the address set forth
      in
      Section 8 hereof. Such mailing shall be deemed personal service and shall be
      legal and binding upon the Company in any action, proceeding or claim. The
      Company and the Holder agree that the prevailing party(ies) in any such action
      shall be entitled to recover from the other party(ies) all of its reasonable
      attorneys’ fees and expenses relating to such action or proceeding and/or
      incurred in connection with the preparation therefor. 

     

    
      
         

      

      
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    10.3  Waiver,
      Etc.
      The
      failure of the Company or the Holder to at any time enforce any of the
      provisions of this Purchase Option shall not be deemed or construed to be a
      waiver of any such provision, nor to in any way affect the validity of this
      Purchase Option or any provision hereof or the right of the Company or any
      Holder to thereafter enforce each and every provision of this Purchase Option.
      No waiver of any breach, non-compliance or non-fulfillment of any of the
      provisions of this Purchase Option shall be effective unless set forth in a
      written instrument executed by the party or parties against whom or which
      enforcement of such waiver is sought; and no waiver of any such breach,
      non-compliance or non-fulfillment shall be construed or deemed to be a waiver
      of
      any other or subsequent breach, non-compliance or non-fulfillment.

     

    10.4  Execution
      in Counterparts.
      This
      Purchase Option may be executed in one or more counterparts, and by the
      different parties hereto in separate counterparts, each of which shall be deemed
      to be an original, but all of which taken together shall constitute one and
      the
      same agreement, and shall become effective when one or more counterparts has
      been signed by each of the parties hereto and delivered to each of the other
      parties hereto.

     

    10.5  Exchange
      Agreement.
      As a
      condition of the Holder’s receipt and acceptance of this Purchase Option, Holder
      agrees that, at any time prior to the complete exercise of this Purchase Option
      by Holder, if the Company and Ferris enter into an agreement (“Exchange
      Agreement”) pursuant to which they agree that all outstanding Purchase Options
      will be exchanged for securities or cash or a combination of both, then Holder
      shall agree to such exchange and become a party to the Exchange Agreement.
      

     

    

     

    [Remainder
      of page deliberately left blank]

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by
      its
      duly authorized officer as of the ___ day of __________, 2006.

     

                        CROSSFIRE
      CAPITAL
      CORPORATION

     

                        By:_________________________________

                        Name:
      Martin
      Oliner

                        Its:
      President

     

    
      
         

      

      
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    Form
      to be used to exercise Purchase Option:

     

    Crossfire
      Capital Corporation

    950
      Third
      Avenue, Suite 2500

    New
      York,
      NY 10022

    Attn:
      Martin Oliner

     

    Date:_________________,
      200__

     

    The
      undersigned hereby elects irrevocably to exercise the within Purchase Option
      and
      to purchase ____ Units of Crossfire Capital Corporation and hereby makes payment
      of $____________ (at the rate of $_________ per Unit) in payment of the Exercise
      Price pursuant thereto. Please issue the Common Stock and Warrants as to which
      this Purchase Option is exercised in accordance with the instructions given
      below.

     

    or

     

    The
      undersigned hereby elects irrevocably to convert its right to purchase _________
      Units purchasable under the within Purchase Option by surrender of the
      unexercised portion of the attached Purchase Option (with a “Value” based of
      $_______ based on a “Market Price” of $_______). Please issue the securities
      comprising the Units as to which this Purchase Option is exercised in accordance
      with the instructions given below.

     

                            ______________________________

                            Signature

     

                            ______________________________

                            Signature
      Guaranteed

     

    INSTRUCTIONS
      FOR REGISTRATION OF SECURITIES

     

    Name_____________________________________________________________

    (Print
      in
      Block Letters)

     

    Address__________________________________________________________

     

    NOTICE:
      The signature to this form must correspond with the name as written upon the
      face of the within Purchase Option in every particular without alteration or
      enlargement or any change whatsoever, and must be guaranteed by a bank, other
      than a savings bank, or by a trust company or by a firm having membership on
      a
      registered national securities exchange.

     

     

    
      
         

      

      
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    Form
      to be used to assign Purchase Option:

     

    ASSIGNMENT

     

    (To
      be
      executed by the registered Holder to effect a transfer of the within Purchase
      Option):

     

    FOR
      VALUE
      RECEIVED,___________________________________________ does hereby sell, assign
      and transfer unto___________________________________________ the right to
      purchase __________ Units of Crossfire Capital Corporation (“Company”) evidenced
      by the within Purchase Option and does hereby authorize the Company to transfer
      such right on the books of the Company.

     

    Dated:___________________,
      200_

     

                        ______________________________

                        Signature

     

                        ______________________________

                        Signature
      Guaranteed

     

    NOTICE:
      The signature to this form must correspond with the name as written upon the
      face of the within Purchase Option in every particular without alteration or
      enlargement or any change whatsoever, and must be guaranteed by a bank, other
      than a savings bank, or by a trust company or by a firm having membership on
      a
      registered national securities exchange.

     

     

    
      
         

      

      
        16

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