Document:

EXHIBIT 10.4

                        CONSULTING AND ADVISORY AGREEMENT

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EXHIBIT 10.4

                        CONSULTING AND ADVISORY AGREEMENT

                                 BY AND BETWEEN

                                   XSUNX, INC.

                                       AND

                                 DR. ARUN MADAN

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                        CONSULTING AND ADVISORY AGREEMENT

         THIS CONSULTING AGREEMENT ("Agreement"), made effective as of the 17th
day of September, 2004, is entered into by and between Xsunx, Inc., a Colorado
corporation ("Company"), and Dr. Arun Madan, an individual ("Consultant"). The
Company and Consultant are sometimes herein referred to individually as a
"party" and collectively as the "parties".

                                 R E C I T A L S

         WHEREAS, Consultant is currently a shareholder of, and employed by,
MVSystems, Inc. a Colorado corporation ("MVS") which has developed technology
pertaining to solar cells, thin film resistors, imaging, spatial light
modulators, memory devices, and other technology related to amorphous silicon
and related alloys which is of interest to the Company;

         WHEREAS, the Company, Consultant, and MVS have entered into a
Technology Sharing and License Agreement ("Technology Agreement") which
contemplates that the company will retain the services of the Consultant for the
purposes stated herein. Capitalized terms herein will have the same meaning as
those in the Technology Agreement;

         WHEREAS, Consultant is a part time research professor at Colorado
School of Mines and is engaged in research in the technology of MVS and other
related fields and shall also continue to be employed as the President and CEO
of MVS; and

         WHEREAS, the Company desires to obtain the services of Consultant and
Consultant desires to provide the Company with consultancy and advisory services
as contemplated in the Technology Agreement and pursuant to the terms and
conditions contained herein; and

         WHEREAS, the undersigned parties desire to formalize such consultant
relationship;

         NOW, THEREFORE, in consideration of the promises, mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to this
Agreement agree as follows:

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         1. Engagement of Services. The Company hereby engages Consultant as an
independent contractor to provide consulting and advisory services as set forth
herein. All such consulting and services shall be performed in accordance with
the terms and conditions contained herein. Consultant hereby accepts such
engagement in accordance with such terms and conditions.

         2. Services of Consultant. Consultant shall, in its sole discretion,
provide consultancy and advisory services under the title of Chairman of the
Scientific Advisory Board. Notwithstanding the foregoing title Consultant shall
remain an independent contractor. Consultant shall provide such services
incident thereto as may be necessary from time to time which services shall
include, without limitation, providing the Company with his best efforts and
technical expertise in advising the Company in the areas of research &
development, process development, planning, product specifications, third party
technical and resource requirements, scheduling, and management of developing
intellectual assets pertaining to the Business of XsunX and the XsunX Field of
Use. Consultant is not a corporate officer or director of XsunX and will not be
represented as such.

         2.1. Consultant shall provide such other related services as may be
requested of Consultant by the Company and as are not inconsistent with the
provisions of this Agreement or the Technology Agreement. Consultant agrees to
devote Consultant's best efforts, skills, and technical expertise to the
business of the Company, to do Consultant's utmost to further enhance and
develop the interests and welfare of the Company, and to devote necessary time
and attention to the business of the Company, while recognizing Consultant's
duties to MVS.

         2.2. Consultant shall truthfully and accurately make, maintain and
preserve all records and reports that the Company may, from time to time,
request or require, and shall fully account for all money, records, equipment,
materials or other property belonging to the Company of which Consultant may
have custody and shall pay over and deliver same promptly whenever and however
Consultant may be directed to do so.

         2.3. Consultant shall make available to the Company any and all
information of which Consultant has knowledge that is relevant to the Company's
business, but is not otherwise prohibited from disclosing, and make all
suggestions and recommendation which Consultant believes will be of benefit to
the Company.

         2.4. Consultant shall, at his own cost, prepare for and attend such
meetings as may be reasonably requested by the Company, provided, however, that
the Company shall pay for the reasonable travel and lodging costs incurred by
Consultant in regard to the foregoing. The Company may request at least one
meeting per month for the purpose of discussion of the development matters
referenced hereinabove, and the conformance or variance of the foregoing to or
with the Business of XsunX.

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         3. Duty to MVS. The parties recognize that Consultant is and shall
remain employed by MVS and that as a shareholder, officer, director, and/or
employee of MVS, Consultant shall devote time and effort to the business of MVS.
Notwithstanding the same, Consultant shall conform Consultants' conduct to the
fiduciary duties of confidentiality and loyalty owed to the Company. In that
regard, Consultant shall inform the Company at the earliest opportunity at such
time as Consultant may perceive a potential conflict of interest with regard to
Consultant's duties to MVS and Consultant's duties to the Company. Consultant
shall not make any unauthorized disclosure of the confidential information of
MVS to the Company. Consultant shall not make any unauthorized disclosure of the
confidential information of the Company to MVS (or any other party not permitted
to receive such information).

         4. Compensation.  For and in consideration of the performance by
Consultant of the services, terms, conditions, covenants and promises herein
recited, the Company agrees and promises to pay to Consultant at the times and
in the manner herein stated and as set forth below:

         4.1. As the principal consideration of the services to be performed by
Consultant hereunder during the term of this Agreement, Consultant shall receive
from the Company a grant of a Consultancy and Advisory Warrant for the purchase
of up to One Million (1,000,000) shares of common voting stock of the Company.
Such warrant will vest in accordance with the vesting provisions set for within
an appropriate warrant agreement ("Warrant Instrument"). Except as otherwise set
forth herein, the warrant shall constitute the sole compensation of Consultant
hereunder. Such compensation may sometimes be herein referred to as Consultant's
"Base Compensation".

         4.2. The Company will, in addition to Consultant's Base Compensation,
pay Consultant a cash bonus if the Company realizes certain minimum gross profit
attainment during the term of each full fiscal year during the term of
Consultants engagement. The cash bonus will be based upon the following
schedule:

Year End Projected Gross Profit   Minimum Attainment        Cash Bonus

9/30/05  $    1,300,000                   30% Minimum     $  10,000.00
                                          100% Maximum    $  50,000.00
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9/30/06  $  17,400,000                    30% Minimum    $  80,000.00
                                          100% Maximum    $250,000.00
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The foregoing schedule shall apply with regard to the first two (2) years of
Consultants engagement under this Agreement. During this term Consultant shall
be entitled to the specified minimum cash bonus upon the Company's attainment of
at least thirty (30%) percent of the projected gross profit for that year. The
Consultant may receive up to the maximum cash bonus or the apportioned amount
thereof for each percent of attained projected gross profits above 30% up to
100%. This additional compensation will be computed on an annual basis upon the

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end of the Company's fiscal year end and paid to Consultant within sixty days of
completion of an annual audit specific to the performance of Consultant and the
books of the Company.

         4.3. Starting in the third (3rd) year, and continuing for the term of
this Agreement, the Consultants cash bonus will be adjusted either up to reflect
an increase in gross profit or down to reflect a decrease in gross profit by a
percentage amount equal to the realized increase or decrease thereof as compared
to the actual amounts from the preceding year.

          4.4. The Company shall reimburse Consultant, from time to time, upon
Consultant's submission of expense account and supporting documents as required
by the Internal Revenue Service, for all reasonable out of town travel,
entertainment, and other ordinary, reasonable and necessary business expenses
incurred by Consultant as part of and in connection with the direct performance
of duties specified herein.

          5.      Relationship of the Parties

          5.1 Legal Status. Consultant shall be an independent contractor of the
Company in accordance with the provisions of Sections 2750.5 and 3353 of the
California Labor Code, or any other corresponding provision of the Colorado
Revised Statutes, and not an employee, agent, or partner. It is expressly
declared that such independent contractor status is bona fide and not a
subterfuge to avoid employee status. This Agreement shall not create an
employer-employee relationship and shall not constitute a hiring of such nature
by either party.

          5.2. Items Furnished to Consultant. Unless expressly agreed in writing
otherwise by the parties, the Company shall not provide any telephone equipment
or services, office equipment, stationery, secretarial or office support
services or other items or services for the benefit of Consultant. Consultant
shall, at its own expense, provide and make arrangement for all equipment,
stationery, secretarial and office support services.

          5.3. Consent of Company. Consultant shall have no right or authority
at any time to make any contract or binding promise of any nature on behalf of
the Company, whether oral or written, without the express prior written consent
of the Company.

          5.4. Manner of Performing Services. Consultant shall retain all
discretion and judgment in regard to the manner and means of carrying out its
duties hereunder subject, however, to the reasonable requests of the Company.
Consultant shall have the right to control and discretion as to the manner of
performance of its services hereunder in that the result of the work and not the
means by which it is accomplished shall be the primary factor for which the
parties have bargained hereunder in accordance with Sections 2750.5 and 3353 of
the California Labor Code or any corresponding provision in the Colorado Revised
Statutes. Consultant's obligations for performance of services hereunder shall
be limited to the completion of the consultation and services described above in
accordance with the Business of XsunX and the XsunX Field of Use. Consultant

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shall have no obligation to work any particular hours or days or any particular
number of hours or days. The Company shall have no right to control or direct
the details, manner or means by which Consultant accomplishes the results of the
services performed hereunder.

          5.5. Payment of Taxes. Consultant shall be responsible for and pay
Consultant's own self-employment taxes, estimated tax liabilities, business
equipment or personal property taxes and other similar obligations, whether
federal, state or local. The Company shall not pay or withhold any FICA, SDI,
federal or state income tax or unemployment insurance or tax or any other
amounts because the relationship of the parties hereto is not that of
employer-employee, but that of independent contractor. Consultant shall be
solely responsible for the payment of all taxes, withholdings and other amounts
due in regard to Consultant's own employees.

          5.6. Employees of Consultant.  Consultant may subcontract with and/or
employ such parties upon such terms and conditions as it may deem proper or
necessary.

          6.      Warranties and Indemnification

          6.1. Warranties. Consultant warrants and represents that the services
of Consultant's subcontractors or employees shall be performed in full
compliance with the terms and conditions of this Agreement, and, that all
services performed hereunder shall be performed in accordance with all federal,
state and local laws, rules or regulations.

          6.2. Indemnification by Consultant. Consultant shall indemnify, defend
and hold the Company and the property of the Company, free and harmless from any
and all claims, losses, damages, injuries, and liabilities, including the
Company's reasonable attorney fees and costs (the Company may choose its own
counsel when defended hereunder), arising from or in any way connected with the
performance of services under this Agreement or any other act or omission by
Consultant, its agents, subcontractors, or employees.

          6.3. Indemnification by the Company. The Company shall indemnify,
defend and hold Consultant and the property of Consultant, free and harmless
from any and all claims, losses, damages, injuries, and liabilities, including
Consultant's reasonable attorney fees and costs, arising from or in any way
connected with any act or omission on the part of the Company, its constituent
partners, agents, subcontractors, or employees.

         7. Term. Consultant's engagement pursuant to this Agreement shall be
for a period of five (5) years and shall commence upon the date of execution
hereof (the "Commencement Date") and shall continue to and including September
17, 2009 (the "Termination Date") unless earlier terminated in accordance with
the provisions of Paragraph 8 of this Agreement; provided further that the term
of this Agreement may be extended by the mutual agreement of the parties hereto.

                  8. Termination. Notwithstanding any other provision of this
Agreement to the contrary, either party may terminate this Agreement at any time
upon ninety (90) days prior written notice to the other. This Agreement may also
be terminated by the Company, at its option, at any time during the term of this

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Agreement without notice, for good cause. Termination for good cause shall
include, but not be limited to, any of the following:

         8.1. The commission by Consultant of an act of fraud or other act
materially evidencing bad faith or dishonesty;

         8.2. The misappropriation by Consultant of any funds or property or
other rights of the Company;

         8.3. The suspension or removal or termination of Consultant by or at
the request or requirement of any governmental authority having jurisdiction
over the Company;

         8.4. The breach by Consultant of any material terms of this Agreement
or any other agreement between Consultant on the one hand and the Company, or
any affiliate of the Company, on the other hand, including, but not limited to,
the Technology Agreement;

         8.5. Upon the death of the Consultant.

         9. Confidentiality.  Information derived or provided as part of the pro
-visions of the Technology Agreement specific to the Licensed Patents and Tech-
nology, the Derivative Works, and the intellectual property of MVS and Dr.
Madan, shall be governed by the terms of the Technology Agreement.

         9.1 All information derived or provided to Consultant under the terms
and specific to the performance of this Agreement, including lists and
databases, and any part of such lists, databases, or information, pertaining to
customers, merchants, salespersons, financial records, computer software
programs, strategic plans, contracts, agreements, literature, manuals,
brochures, books, records, correspondence, computer programs, software, source
codes, computations, data files, algorithms, techniques, processes, designs,
specifications, drawings, charts, plans, schematics, computer disks, magnetic
tapes, books, files, records, reports, documents, Instruments, agreements,
contracts, correspondence, letters, memoranda, financial, accounting, sales,
purchase and consultant data, capital structure information, corporate
organizational information, identities, names and address of, and any
information pertaining to, shareholders, directors, officers, consultants,
contractors, vendors, suppliers, customers, clients, lenders, financing and
business participants, and all persons associated with the Company, information
pertaining to business models, business plans, projections, assumptions and
analyses, particular projects, and all other data and information and similar
items relating to the business of the Company and all other data and information
and similar items relating to the Company of whatever kind or nature and whether
or not prepared or compiled by the Company and all other materials furnished or
made available to Consultant by the Company or any of its affiliates (as
hereinafter defined) relating to the business conducted by the Company
("Confidential Information"), is and are proprietary and confidential and are
and shall remain the sole property of the Company. Affiliate as used in this

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section shall mean the Company, any entity in which Company owns a majority
ownership (directly or indirectly), or any entity which owns a majority
ownership of Company (directly or indirectly). Consultant acknowledges that the
Confidential Information derives independent economic value, actual or
potential, from not being generally known to the public or to other persons who
can obtain economic value from its disclosure or use and that this
confidentiality provision constitutes efforts that are reasonable under the
circumstances to maintain the secrecy thereof. Consultant further acknowledges
that the Confidential Information constitutes trade secrets pursuant to
California Civil Code ss.3426.1. Consultant shall not, directly or indirectly,
at any time during or after termination of consultant use or reveal, divulge,
disclose, disseminate, distribute, license, sell, transfer, assign or otherwise
make known, directly or indirectly, the Confidential Information to any person
or entity not expressly authorized by the Company to receive such Confidential
Information.

         9.2 Consultant shall exercise the highest degree of care and discretion
in accordance with the duty of Consultant hereunder to prevent improper use or
disclosure of the Confidential Information and will retain all such Confidential
Information in trust in a fiduciary capacity unless: (i) such use or disclosure
has been authorized in writing by the Company through an officer or director, or
(ii) is required to be disclosed by law, a court of competent jurisdiction or a
governmental or regulatory agency. Further, Consultant shall return and deliver
all such materials, including all copies, remnants, or derivatives thereof to
the Company upon the termination of consultant with the Company or at any other
time upon request by the Company.

         10. Patents and Inventions. Other than for Derivative Works as
contemplated and governed under the terms and conditions of the Technology
Agreement any interest in patents, patent applications, inventions,
technological innovations, copyrights, copyrightable works, developments,
discoveries, designs, and processes which Consultant now or hereafter during the
period Consultant is retained by the Company under this Agreement or otherwise
and for three (3) years thereafter may own, conceive of, or develop and either
relating to the fields in which the Company may then be engaged or contemplates
(as demonstrated by the records of the Company) being engaged or conceived of or
developed utilizing the time, material, facilities, or information of the
Company ("Inventions") derived outside of the specific performance under the
terms of the Technology Agreement shall belong to the Company. As soon as
Consultant owns, conceives of, or develops any such Invention, Consultant agrees
immediately to communicate such fact in writing to the Secretary of the Company,
and without further compensation, but at the Company's expense (except as
otherwise set forth herein), immediately upon request of the Company, Consultant
shall execute all such assignments and other documents (including applications
for patents, copyrights, trademarks, and assignments thereof) and perform any
and all acts as the Company may reasonably request in order (a) to vest in the

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Company all Consultant's right, title, and interest in and to such Inventions,
free and clear of liens, mortgages, security interests, pledges, charges, and
encumbrances arising from the acts of Consultant and (b), if patentable or
copyrightable, to obtain patents or copyrights (including extensions and
renewals) therefore in any and all countries in such name as the Company shall
determine.

         11. Assignment. The obligations of Consultant under this Agreement are
unique and may not be assigned.

         12. Securities Compliance. No Offer or Sale. This Agreement is not
intended to be an offer for the sale or issuance of securities, whether
pertaining to stock, options, or otherwise, unless the same is exempt from
registration and qualification pursuant to an applicable exemption. The issuance
of stock and warrants is expressly subject to compliance with all state and
federal securities laws, rules and regulations by the parties. While the Company
does not consider this Agreement itself to be a securities or offer of any
securities, whether pertaining to stock, warrants, or otherwise, in the event
that this letter is construed to be an offer, the parties acknowledge the
following disclosure in accordance with Section 25102(a) of the California
Corporations Code:

                  The sale of the securities which are the subject of this
                  agreement has not been qualified with the Commissioner of
                  Corporation of the State of California and the issuance of
                  such securities or the payment or receipt of any part of the
                  consideration therefore prior to such qualification is
                  unlawful, unless the sale of securities is exempt from the
                  qualification by Section 25100, 25102, or 25105 of the
                  California Corporations Code. The rights of all parties to
                  this agreement are expressly conditions upon such
                  qualification being obtained unless the sale is so exempt.

         12.1 General Securities Compliance. Notwithstanding anything contained
in this Agreement to the contrary, this Agreement, and the stock warrants
discussed herein, shall be, and are, expressly subject to all SEC and
securities, laws, rules, regulations and reporting and disclosure requirements,
to the extent applicable to the Company as a reporting company, the shares,
and\or any party hereto, including, but not limited to, shareholder voting and
proxy solicitation rules. All issuances, sales, transfers, or other dispositions
of shares of the Company shall be made in compliance with all applicable
securities laws, rules and regulations, and pursuant to registration of
securities under the Securities Act of 1933 ("Act") (and qualification under
General Corporation Law of California) or pursuant to an exemption from
registration under the Act (and qualification under General Corporation Law of
California). Notwithstanding the foregoing, nothing in this Agreement shall
obligate the Company to seek registration or qualification of any of its shares,
and, to the extent that any obligation hereunder cannot be performed without
registration or qualification of any of its shares, such obligation shall be
excused on the part of the Company to the extent that the Company provides other
adequate consideration therefore.

         13. Rule 144.  Dr. Madan acknowledges that the shares of the Company
may be subject to the restrictions on transfer set forth in Rule 144 of the

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Rules promulgated under the Act. Any and all offers, sales, transfer or other
dispositions of shares of the Company shall be made only in compliance with Rule
144. Dr. Madan agrees to comply with all policies and procedures established by
the Company with regard to Rule 144 matters.  Dr. Madan acknowledges that the
Company or its attorneys or transfer agent may require a restrictive legend on
the certificate or certificates representing the shares pursuant to the restric-
tions on transfer of the shares imposed by Rule 144.

         14.  Amendments.  This Agreement may be amended only in writing execut-
ed by Consultant and Company and approved in writing by the majority vote of the
Board of Directors of the Company.

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

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

         17. Recovery of Litigation Costs. If any legal action or any
arbitration or other proceeding is brought for the enforcement of this
Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any of the provisions of this Agreement,
the successful or prevailing party or parties shall be entitled to recover as an
element of their damages, reasonable attorneys' fees and other costs incurred in
that action or proceeding, in addition to any other relief to which they may be
entitled.

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

         19.  Time of Essence.  Time shall be of the essence in all things
pertaining to the performance of this Agreement unless waived in writing by the
undersigned parties.

         20. Authority. The parties to this Agreement warrant and represent that
they have the power and authority to enter into this Agreement in the names,
titles and capacitates herein stated and on behalf of any entities, persons or
firms represented or purported to be represented by each respective party.

         21. Waiver. A Waiver by either party of any of the terms and conditions
of this Agreement in any instance shall not be deemed or construed to a waiver
of such terms of condition for the future, or of any subsequent breach thereof,

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or of any other term and condition of this Agreement. All waivers must be made
in writing executed by the waiving party.

         22. Entire Agreement. This Agreement and the Technology Agreement
constitute the entire agreement between the parties respecting the subject
matter hereof, and there are no representations, warranties, agreements or
commitments between the parties hereto except as set forth herein and therein;
provided that the terms of any Option or Award may be set forth in a Grant
Instrument, which shall be read in conjunction with this Agreement and the
Technology Agreement. This Agreement shall control over any and all provisions
or guidelines contained in any Consultant Manual, Consultant Handbook, Company
Policy Manual or other similar document. Consultant expressly acknowledges that
no Consultant Manual, Consultant Handbook, Company Policy Manual or other
similar document is or shall become a contract between the Company and
Consultant.

         23. Notices. Any notice, request, demand or other communication
permitted to be given hereunder shall be in writing and shall be deemed to be
duly given when personally delivered to an Consultant officer of the Company or
to Consultant, as the case may be, or when deposited in the United States mail,
by certified or registered mail, return receipt requested, postage prepaid, at
the respective addresses of the Company and Consultant as shown on the signature
page hereto. Either party may change by notice the address to which notices are
to be sent.

         24.  Severability.  If any provision of this Agreement shall, for any
reason, be held unenforceable, such provision shall be severed from the
contract.  The invalidity of such specific provision, however, shall not affect
the enforceability of any other provision herein, and the remaining provision
shall remain in full force and effect.

         25. Choice of Law and Venue. This Agreement shall, to the fullest
extent allowed by law, be construed, interpreted and enforced in accordance with
the laws of the State of Colorado, without regard to or application of conflict
of law rules, and the venue in regard to any disputes arising hereunder shall,
to the fullest extent allowed by law, be in Jefferson County, Colorado.

         26. Press Releases. Any press release, company disclosures and
advertisement made by the Company relating to Consultant shall be subject to the
approval of Consultant prior to public release. Consultant will not unreasonably
withhold such approval and agrees to respond to such requests for approval
within two (2) business days.

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IN WITNESS WHEREOF, this Agreement is made effective by Consultant and the
Company on the date set first forth above.

                                                 COMPANY:

                                                 Xsunx, Inc.,
                                                 a Colorado corporation

                                                 By: /s/ Tom M. Djokovich
                                                     ---------------------------
                                                     Tom M. Djokovich, as CEO

                                                 CONSULTANT:

                                                 /s/ Dr. Arun Madan
                                                 ----------------------------
                                                 Dr. Arun Madan, as Consultant

                                       11EXHIBIT 10.5

                      LICENSE AGREEMENT WARRANT TO PURCHASE
                           COMMON STOCK OF XSUNX, INC.

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EXHIBIT 10.5

 Warrant Grant # 01-2004 Warrant Grant # 02-2004

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

                      LICENSE AGREEMENT WARRANT TO PURCHASE
                           COMMON STOCK OF XSUNX, INC.

         This License Agreement Warrant ("Warrant") is issued as consideration
for the grant of License pursuant to that certain Technology Sharing and License
Agreement effective September 17, 2004 as set forth at Paragraph 16 hereof .

         This certifies that MVSystems, Inc. (the "Holder") for value received,
is entitled to purchase from Xsunx, Inc. (the "Company") Five Million
(5,000,000) shares of the Company's Common Stock (the "Common Stock") for a per
share exercise price equal to $ .15 (the "Per Share Exercise Price"). This right
may be exercised at any time from the date hereof up to and including 5:00 p.m.
(Denver City time) on September 17, 2009 (the "Expiration Date"), upon surrender
to the Company at its principal office (or at such other location as the Company
may advise the Holder in writing) of this Warrant, properly endorsed, with the
Notice of Exercise and Subscription Form attached hereto duly filled in and
signed, if applicable, and upon payment in cash or other form of good and
immediately available funds reasonably satisfactory to the Company of the
aggregate Per Share Exercise Price for the full number of shares for which this
Warrant is being exercised determined in accordance with the provisions hereof.

1.       ISSUANCE OF CERTIFICATES.

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

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

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the shares purchasable under this Warrant to the Holder within a reasonable time
after surrender of this Warrant.

2.       SHARES FULLY-PAID, NONASSESSABLE, ETC.

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

3.       NET ISSUE EXERCISE.

         Notwithstanding any provisions herein to the contrary, if the fair
market value of one share of the Company's Common Stock is greater than the Per
Share Exercise Price (at the date of calculation as set forth below), in lieu of
exercising this Warrant for cash, the Holder may elect to receive shares equal
to the value (as determined below) of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company,
together with the properly endorsed Notice of Exercise and Subscription Form and
notice of such election, in which event the Company will issue to the Holder a
number of shares of Common Stock computed using the following formula:

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

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

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

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

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

         For purposes of the above calculation, fair market value of one share
of Common Stock will be the average of the closing bid prices of the Company's
shares of Common Stock as quoted on the New York Stock Exchange (the "NYSE") (or
on such other United States stock exchange or public trading market on which the
shares of the Company trade if, at the time of the election, they are not

                                       2

<PAGE>

trading on the NYSE), for the five (5) consecutive trading days immediately
preceding the date of the date the completed, executed Notice of Exercise and
Subscription Form is received, or (ii) in the absence of an established market
or public marketability for the Stock due to trading restrictions, the fair
market value shall be determined in good faith by the Administrator and such
determination shall be conclusive and binding on all persons.

4.       ADJUSTMENTS.

         4.1      Adjustment for Stock Splits and Combinations.  If the Company
at any time or from time to time during the term of this Warrant effects a sub-
division of the outstanding Common Stock, the Per Share Exercise Price in effect
immediately before that subdivision will be proportionately decreased and the
number of remaining shares that can be purchased under this warrant shall be
proportionatly increased to effect the same subdivision of warrants as with the
outstanding Common Stock. Conversely, if the Company at any time or from time to
time during the term of this Warrant combines the outstanding shares of Common
Stock into a smaller number of shares, the Per Share Exercise Price in effect
immediately before the combination will be proportionately increased and the
number of remaining shares that can be purchased under this warrant shall be
proportionatly decreased to effect the same subdivision of warrants as with the
outstanding Common Stock. Any adjustment under this Section 4.1 will become
effective at the close of business on the date the subdivision or combination
becomes effective.

         4.2 Adjustment for Reclassification, Exchange and Substitution. If at
any time or from time to time during the term of this Warrant the Common Stock
issuable upon the exercise of this Warrant is changed into the same or a
different number of shares of any class or classes of stock, whether by
recapitalization, reclassification or otherwise (other than a recapitalization,
subdivision, combination, reclassification or exchange provided for elsewhere in
this Section 4), the Holder will have the right thereafter to exercise this
Warrant for the kind and amount of stock and other securities and property
receivable upon such recapitalization, reclassification or other change into
which the shares of Common Stock issuable upon exercise of this Warrant
immediately prior to such recapitalization, reclassification or change could
have been converted, all subject to further adjustment as provided herein or
with respect to such other securities or property by the terms thereof.

         4.3 Reorganizations. If at any time or from time to time during the
term of this Warrant there is a capital reorganization of the Common Stock
(other than a recapitalization, subdivision, combination, reclassification or
exchange provided for elsewhere in this Section 4), as a part of such capital
reorganization, provision will be made so that the Holder will thereafter be
entitled to receive upon exercise of this Warrant the number of shares of stock
or other securities or property of the Company to which a holder of the number
of shares of Common Stock deliverable upon exercise of this Warrant would have
been entitled on such capitalization reorganization, subject to adjustment in
respect of such stock or securities by the terms thereof.

                                       3

<PAGE>

5.       OBLIGATION TO SELL.

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

6.       STOCKHOLDERS AGREEMENT

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

Stockholders Agreement and this Warrant, the provisions of the Stockholders
Agreement shall be controlling. Notwithstanding anything to the contrary in this
Section 6, if the Stockholders Agreement contains any provisions which would
violate Colorado corporate law if applied to the participant, the terms of this
Warrant shall govern the participant's rights with respect to such provisions.

7.       TAXES.

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

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

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

                                       4

<PAGE>

9.       TRANSFER OR ASSIGNMENT OF Warrant

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

10.      MODIFICATION AND WAIVER.

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

11.      NOTICES.

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

Notice shall be addressed to the Company at:

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

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

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

12.      LOST WARRANTS.

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

                                       5

<PAGE>

precedent to making or delivering a new Warrant, reasonably require that the
Holder make and deliver to the Company an affidavit or declaration made under
penalty of perjury, as to the loss, theft, destruction, or mutilation of this
Warrant.

13.      FRACTIONAL SHARES.

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

14.      NO REGISTRATION RIGHTS

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

15.      RESTRICTIONS ON TRANSFER

         15.1 Securities Law Restrictions. Regardless of whether the offering
and sale of Shares under this Warrant have been registered under the Securities
Act or have been registered or qualified under the securities laws of any state,
the Company, at its discretion, may impose restrictions upon the sale, pledge or
other transfer of such Shares (including the placement of appropriate legends on
stock certificates or the imposition of stop-transfer instructions) if, in the
judgment of the Company, such restrictions are necessary or desirable in order
to achieve compliance with the Securities Act, the securities laws of any state
or any other law.

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

                                       6

<PAGE>

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

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

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

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

"THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF
COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS
NOT REQUIRED."

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

         15.8 Administration. Any determination by the Company and its counsel
in connection with any of the matters set forth in this Section 15 shall be
conclusive and binding on the Holder and all other persons.

16.      Technology Sharing and License Agreement

         This Warrant is issued pursuant to that certain Technology Sharing and
License Agreement effective September 17, 2004. The terms of the Technology
Sharing and License Agreement shall control over any conflicting terms in this

                                       7

<PAGE>

Warrant. Any breach under the Technology Sharing and License Agreement shall
constitue a breach under this Warrant and allows the Company to terminate this
Warrant in whole or in part.

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

                          [See Attached Signature Page]

                                       8

<PAGE>

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

                                    COMPANY: Xsunx, Inc., a Colorado corporation

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

                                    HOLDER:  MVSystems, Inc., a Colorado Corpora
                                             -tion

                                             By: _______________________________

                                             Name:

                                             Title:

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

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

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

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

                                       9

<PAGE>

                               EXHIBIT TO WARRANT

                    SUBSCRIPTION FORM AND NOTICE OF EXERCISE

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

Ladies and Gentlemen:

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

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

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

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

                                   Very truly yours,

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

                                   By: __________________________________
                                   Title: _________________________________

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