Document:

Exhibit 10.6

       THIS  WARRANT  AND  THE  SHARES  OF  COMMON  STOCK  ISSUABLE  UPON
       EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
       ACT  OF  1933,  AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT
       AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE
       SOLD,  OFFERED  FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
       EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT AND
       ANY  APPLICABLE  STATE  SECURITIES  LAWS  OR  AN  OPINION  OF  COUNSEL
       REASONABLY SATISFACTORY TO TEXHOMA ENERGY, INC. THAT SUCH REGISTRATION
       IS  NOT  REQUIRED.

          Right to Purchase up to 10,625,000 Shares of Common Stock of
                              Texhoma Energy, Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No.                              Issue  Date:  March     ,  2006
   ------------------------                         -----

     Texhoma  Energy,  Inc., a corporation organized under the laws of the State
of  Nevada  (the  "Company"),  hereby certifies that, for value received, LAURUS
MASTER  FUND, LTD., or assigns (the "Holder"), is entitled, subject to the terms
set forth below, to purchase from the Company (as defined herein) from and after
the  Issue Date of this Warrant and at any time or from time to time before 5:00
p.m.,  New  York  time,  through  the  close  of  business  March    , 2011 (the
                                                                 ----
"Expiration  Date"),  up  to  10,625,000  fully paid and nonassessable shares of
Common  Stock  (as  hereinafter  defined),  $.001  par  value  per share, at the
applicable Exercise Price per share (as defined below). The number and character
of  such  shares of Common Stock and the applicable Exercise Price per share are
subject  to  adjustment  as  provided  herein.

     As  used herein the following terms, unless the context otherwise requires,
have  the  following  respective  meanings:

          (a)  The  term  "Company"  shall  include Texhoma Energy, Inc. and any
     person or entity which shall succeed, or assume the obligations of, Texhoma
     Energy,  Inc.  hereunder.

          (b)  The  term "Common Stock" includes (i) the Company's Common Stock,
     par  value $.001 per share; and (ii) any other securities into which or for
     which  any  of  the securities described in the preceding clause (i) may be
     converted  or  exchanged  pursuant  to  a  plan  of  recapitalization,
     reorganization,  merger,  sale  of  assets  or  otherwise.

          (c)  The  term  "Exercise  Price"  means  a price of $.04 per share of
     Common  Stock.

          (d) The term "Other Securities" refers to any stock (other than Common
     Stock)  and  other securities of the Company or any other person (corporate

<PAGE>

     or otherwise) which the holder of the Warrant at any time shall be entitled
     to receive, or shall have received, on the exercise of the Warrant, in lieu
     of  or  in addition to Common Stock, or which at any time shall be issuable
     or shall have been issued in exchange for or in replacement of Common Stock
     or  Other  Securities  pursuant  to  Section  4  or  otherwise.

     1.   Exercise  of  Warrant.
          ---------------------

          1.1  Number  of Shares Issuable upon Exercise. From and after the date
               ----------------------------------------
     hereof  through  and  including  the  Expiration  Date, the Holder shall be
     entitled  to receive, upon exercise of this Warrant in whole or in part, by
     delivery  of  an  original  or  fax  copy of an exercise notice in the form
     attached  hereto  as  Exhibit  A  (the "Exercise Notice"), shares of Common
     Stock  of  the  Company,  subject  to  adjustment  pursuant  to  Section 4.

          1.2 Fair Market Value. For purposes hereof, the "Fair Market Value" of
              -----------------
     a  share of Common Stock as of a particular date (the "Determination Date")
     shall  mean:

          (a)  If  the  Company's  Common  Stock is traded on the American Stock
     Exchange  or  another  national  exchange  or  is quoted on the National or
     Capital  Market  of  The  Nasdaq  Stock  Market,  Inc. ("Nasdaq"), then the
     closing  or  last  sale price, respectively, reported for the last business
     day  immediately  preceding  the  Determination  Date.

          (b)  If the Company's Common Stock is not traded on the American Stock
     Exchange or another national exchange or on the Nasdaq but is traded on the
     NASD Over the Counter Bulletin Board or the "Pink Sheets", then the mean of
     the  average  of  the  closing  bid  and asked prices reported for the last
     business  day  immediately  preceding  the  Determination  Date.

          (c)  Except  as  provided in clause (d) below, if the Company's Common
     Stock  is  not publicly traded, then as the Holder and the Company agree or
     in  the  absence  of  agreement by arbitration in accordance with the rules
     then  in  effect  of  the American Arbitration Association, before a single
     arbitrator  to be chosen from a panel of persons qualified by education and
     training  to  pass  on  the  matter  to  be  decided.

          (d)  If  the  Determination  Date  is  the  date  of  a  liquidation,
     dissolution  or  winding  up,  or  any  event  deemed  to be a liquidation,
     dissolution  or  winding  up  pursuant  to  the Company's charter, then all
     amounts  to be payable per share to holders of the Common Stock pursuant to
     the  charter  in  the event of such liquidation, dissolution or winding up,
     plus  all  other  amounts  to be payable per share in respect of the Common
     Stock  in  liquidation under the charter, assuming for the purposes of this
     clause  (d)  that  all  of  the  shares  of Common Stock then issuable upon
     exercise  of  the  Warrant  are  outstanding  at  the  Determination  Date.

          1.3  Company  Acknowledgment.  The  Company  will,  at the time of the
               -----------------------
     exercise of this Warrant, upon the request of the holder hereof acknowledge
     in writing its continuing obligation to afford to such holder any rights to
     which  such  holder  shall  continue  to be entitled after such exercise in
     accordance with the provisions of this Warrant. If the holder shall fail to
     make  any  such  request,  such  failure  shall  not  affect the continuing
     obligation  of  the  Company  to  afford  to  such  holder any such rights.

          1.4  Trustee  for  Warrant  Holders. In the event that a bank or trust
               ------------------------------
     company  shall  have  been  appointed  as  trustee  for the holders of this
     Warrant  pursuant  to Subsection 3.2, such bank or trust company shall have
     all the powers and duties of a warrant agent (as hereinafter described) and
     shall  accept,  in  its  own  name  for  the account of the Company or such
     successor  person as may be entitled thereto, all amounts otherwise payable
     to  the  Company or such successor, as the case may be, on exercise of this
     Warrant  pursuant  to  this  Section  1.

     2.  Procedure  for  Exercise.
         ------------------------

          2.1  Delivery  of  Stock  Certificates, Etc., on Exercise. The Company
               ---------------------------------------
     agrees  that  the  shares  of  Common Stock purchased upon exercise of this
     Warrant  shall  be deemed to be issued to the Holder as the record owner of
     such  shares  as of the close of business on the date on which this Warrant
     shall  have been surrendered and payment made for such shares in accordance
     herewith. As soon as practicable after the exercise of this Warrant in full
     or in part, and in any event within three (3) business days thereafter, the
     Company at its expense (including the payment by it of any applicable issue
     taxes)  will cause to be issued in the name of and delivered to the Holder,
     or  as  such Holder (upon payment by such Holder of any applicable transfer
     taxes)  may  direct  in  compliance  with  applicable  securities  laws,  a
     certificate  or  certificates  for  the  number of duly and validly issued,
     fully  paid  and nonassessable shares of Common Stock (or Other Securities)
     to  which  such Holder shall be entitled on such exercise, plus, in lieu of
     any fractional share to which such holder would otherwise be entitled, cash
     equal to such fraction multiplied by the then Fair Market Value of one full
     share,  together  with  any  other  stock  or other securities and property
     (including  cash,  where  applicable) to which such Holder is entitled upon
     such  exercise  pursuant  to  Section  1  or  otherwise.

          2.2  Exercise. Payment shall be made either in cash or by certified or
               --------
     official  bank  check  payable  to  the  order  of the Company equal to the
     applicable  aggregate  Exercise  Price  for  the  number  of  Common Shares
     specified  in  such  Exercise  Notice  (as  such  exercise  number shall be
     adjusted  to reflect any adjustment in the total number of shares of Common
     Stock  issuable to the Holder per the terms of this Warrant) and the Holder
     shall  thereupon  be  entitled  to  receive  the number of duly authorized,
     validly  issued,  fully-paid  and non-assessable shares of Common Stock (or
     Other  Securities)  determined  as  provided  herein.

     3.  Effect  of  Reorganization,  Etc.;  Adjustment  of  Exercise  Price.
         -------------------------------------------------------------------

          3.1 Reorganization, Consolidation, Merger, Etc. In case at any time or
              ------------------------------------------
     from  time  to  time,  the  Company  shall (a) effect a reorganization, (b)
     consolidate  with  or  merge  into any other person, or (c) transfer all or
     substantially all of its properties or assets to any other person under any
     plan  or arrangement contemplating the dissolution of the Company, then, in
     each  such  case, as a condition to the consummation of such a transaction,
     proper  and  adequate  provision  shall  be made by the Company whereby the
     Holder,  on  the exercise hereof as provided in Section 1 at any time after
     the  consummation  of  such  reorganization, consolidation or merger or the
     effective  date  of such dissolution, as the case may be, shall receive, in
     lieu  of  the  Common Stock (or Other Securities) issuable on such exercise
     prior  to  such  consummation  or  such effective date, the stock and other
     securities  and  property  (including cash) to which such Holder would have
     been  entitled  upon  such  consummation  or  in  connection  with  such
     dissolution,  as  the  case  may  be,  if such Holder had so exercised this
     Warrant,  immediately  prior  thereto,  all  subject  to further adjustment
     thereafter  as  provided  in  Section  4.

          3.2  Dissolution.  In  the  event  of  any  dissolution of the Company
               -----------
     following  the  transfer  of  all or substantially all of its properties or
     assets, the Company, concurrently with any distributions made to holders of
     its  Common Stock, shall at its expense deliver or cause to be delivered to
     the  Holder  the  stock  and other securities and property (including cash,
     where  applicable) receivable by the Holder pursuant to Section 3.1, or, if
     the  Holder  shall  so  instruct  the  Company,  to a bank or trust company
     specified  by the Holder and having its principal office in New York, NY as
     trustee  for  the  Holder  (the  "Trustee").

          3.3  Continuation  of  Terms.  Upon any reorganization, consolidation,
               -----------------------
     merger or transfer (and any dissolution following any transfer) referred to
     in this Section 3, this Warrant shall continue in full force and effect and
     the  terms  hereof  shall  be  applicable  to the shares of stock and other
     securities  and  property  receivable on the exercise of this Warrant after
     the  consummation  of  such  reorganization, consolidation or merger or the
     effective  date of dissolution following any such transfer, as the case may
     be,  and  shall  be  binding  upon  the  issuer  of any such stock or other
     securities,  including,  in  the  case  of  any  such  transfer, the person
     acquiring  all  or  substantially  all  of  the properties or assets of the
     Company,  whether or not such person shall have expressly assumed the terms
     of  this  Warrant  as provided in Section 4. In the event this Warrant does
     not  continue  in  full  force  and  effect  after  the consummation of the
     transactions described in this Section 3, then the Company's securities and
     property  (including  cash, where applicable) receivable by the Holder will
     be  delivered  to the Holder or the Trustee as contemplated by Section 3.2.

     4.  Extraordinary  Events  Regarding  Common  Stock.  In the event that the
         -----------------------------------------------
Company  shall  (a) issue additional shares of the Common Stock as a dividend or
other  distribution on outstanding Common Stock or any preferred stock issued by
the Company (b) subdivide its outstanding shares of Common Stock, or (c) combine
its  outstanding  shares  of the Common Stock into a smaller number of shares of
the  Common  Stock,  then,  in  each  such  event,  the  Exercise  Price  shall,
simultaneously  with the happening of such event, be adjusted by multiplying the
then Exercise Price by a fraction, the numerator of which shall be the number of
shares  of  Common  Stock  outstanding  immediately  prior to such event and the
denominator  of  which shall be the number of shares of Common Stock outstanding
immediately  after  such  event, and the product so obtained shall thereafter be
the  Exercise Price then in effect. The Exercise Price, as so adjusted, shall be
readjusted  in  the  same  manner  upon the happening of any successive event or
events  described herein in this Section 4. The number of shares of Common Stock
that  the Holder shall thereafter, on the exercise hereof as provided in Section
1,  be  entitled  to  receive  shall  be  adjusted  to  a  number  determined by
multiplying  the  number of shares of Common Stock that would otherwise (but for
the  provisions of this Section 4) be issuable on such exercise by a fraction of
which  (a) the numerator is the Exercise Price that would otherwise (but for the
provisions  of  this  Section  4)  be  in effect, and (b) the denominator is the
Exercise  Price  in effect on the date of such exercise (taking into account the
provisions  of  this  Section  4).

<PAGE>

     5.  Certificate  as  to  Adjustments.  In  each  case  of any adjustment or
         --------------------------------
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise  of  this  Warrant,  the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with  the  terms of this Warrant and prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the  facts  upon  which  such  adjustment  or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to  have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities)  outstanding or deemed to be outstanding, and (c) the Exercise Price
and  the  number  of shares of Common Stock to be received upon exercise of this
Warrant,  in  effect immediately prior to such adjustment or readjustment and as
adjusted  or  readjusted as provided in this Warrant. The Company will forthwith
mail  a copy of each such certificate to the Holder and any Warrant agent of the
Company  (appointed  pursuant  to  Section  11  hereof).

     6. Reservation of Stock, Etc., Issuable on Exercise of Warrant. The Company
        -------------------------
will  at  all times reserve and keep available, solely for issuance and delivery
on  the  exercise  of this Warrant, shares of Common Stock (or Other Securities)
from  time  to  time  issuable  on  the  exercise  of  this  Warrant.

     7.  Assignment;  Exchange of Warrant. Subject to compliance with applicable
         --------------------------------
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by  any  registered  holder  hereof (a "Transferor") in whole or in
part.  On  the  surrender  for  exchange  of this Warrant, with the Transferor's
endorsement  in  the  form  of  Exhibit  B  attached  hereto  (the  "Transferor
Endorsement  Form")  and  together  with evidence reasonably satisfactory to the
Company  demonstrating  compliance  with applicable securities laws, which shall
include,  without  limitation,  the  provision  of  a  legal  opinion  from  the
Transferor's  counsel  (at  the  Company's expense) that such transfer is exempt
from the registration requirements of applicable securities laws, the Company at
its  expense  (but  with  payment  by  the Transferor of any applicable transfer
taxes) will issue and deliver to or on the order of the Transferor thereof a new
Warrant  of  like  tenor, in the name of the Transferor and/or the transferee(s)
specified  in such Transferor Endorsement Form (each a "Transferee"), calling in
the  aggregate  on  the face or faces thereof for the number of shares of Common
Stock  called  for  on  the  face  or faces of the Warrant so surrendered by the
Transferor.

     8.  Replacement  of Warrant. On receipt of evidence reasonably satisfactory
         -----------------------
to  the  Company  of  the loss, theft, destruction or mutilation of this Warrant
and,  in  the  case  of  any such loss, theft or destruction of this Warrant, on
delivery  of  an indemnity agreement or security reasonably satisfactory in form
and  amount  to the Company or, in the case of any such mutilation, on surrender
and  cancellation  of  this Warrant, the Company at its expense will execute and
deliver,  in  lieu  thereof,  a  new  Warrant  of  like  tenor.

     9.  Registration  Rights.  The Holder has been granted certain registration
         --------------------
rights by the Company. These registration rights are set forth in a Registration
Rights  Agreement  entered  into  by the Company and Holder dated as of the date
hereof,  as  the  same may be amended, modified and/or supplemented from time to
time.

<PAGE>

     10.  Maximum  Exercise.  Notwithstanding  anything  contained herein to the
          -----------------
contrary,  the  Holder  shall  not  be  entitled  to  exercise  this  Warrant in
connection  with  that  number  of shares of Common Stock which would exceed the
difference  between  (i)  4.99%  of  the issued and outstanding shares of Common
Stock  and  (ii)  the number of shares of Common Stock beneficially owned by the
Holder. For purposes of the immediately preceding sentence, beneficial ownership
shall  be determined in accordance with Section 13(d) of the Securities Exchange
Act  of  1934,  as  amended,  and  Regulation  13d-3  thereunder. The limitation
described  in  the  first sentence of this Section 10 shall automatically become
null and void following notice to the Company upon the occurrence and during the
continuance  of an Event of Default under and as defined in the Note made by the
Company  to  the  Holder  dated  the date hereof (as amended, modified, restated
and/or supplemented from time to time, the "Note"), or upon 75 days prior notice
to  the  Company.

     11. Warrant Agent. The Company may, by written notice to the each Holder of
         -------------
the  Warrant, appoint an agent for the purpose of issuing Common Stock (or Other
Securities)  on  the  exercise of this Warrant pursuant to Section 1, exchanging
this  Warrant  pursuant  to  Section  7,  and replacing this Warrant pursuant to
Section  8,  or any of the foregoing, and thereafter any such issuance, exchange
or  replacement, as the case may be, shall be made at such office by such agent.

     12.  Transfer  on the Company's Books. Until this Warrant is transferred on
          --------------------------------
the  books of the Company, the Company may treat the registered holder hereof as
the  absolute  owner  hereof for all purposes, notwithstanding any notice to the
contrary.

     13.  Notices, Etc. All notices and other communications from the Company to
          ------------
the  Holder shall be mailed by first class registered or certified mail, postage
prepaid, at such address as may have been furnished to the Company in writing by
such  Holder or, until any such Holder furnishes to the Company an address, then
to,  and  at  the address of, the last Holder who has so furnished an address to
the  Company.

     14. Miscellaneous. This Warrant and any term hereof may be changed, waived,
         -------------
discharged  or  terminated  only by an instrument in writing signed by the party
against  which  enforcement  of such change, waiver, discharge or termination is
sought.  THIS  WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
ANY  ACTION  BROUGHT  CONCERNING  THE  TRANSACTIONS CONTEMPLATED BY THIS WARRANT
SHALL  BE  BROUGHT ONLY IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL COURTS
LOCATED  IN THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE
TO  WAIVE  THIS PROVISION AND BRING AN ACTION OUTSIDE THE STATE OF NEW YORK. The
individuals  executing  this Warrant on behalf of the Company agree to submit to
the  jurisdiction  of  such courts and waive trial by jury. The prevailing party
shall be entitled to recover from the other party its reasonable attorneys' fees
and  costs.  In  the  event  that  any  provision  of this Warrant is invalid or
unenforceable  under  any applicable statute or rule of law, then such provision
shall  be  deemed  inoperative  to the extent that it may conflict therewith and
shall  be  deemed modified to conform with such statute or rule of law. Any such

<PAGE>

provision  which  may  prove  invalid  or  unenforceable under any law shall not
affect  the  validity  or enforceability of any other provision of this Warrant.
The  headings  in this Warrant are for purposes of reference only, and shall not
limit  or  otherwise  affect  any  of  the  terms  hereof.  The  invalidity  or
unenforceability  of any provision hereof shall in no way affect the validity or
enforceability  of  any  other  provision  hereof. The Company acknowledges that
legal  counsel  participated  in the preparation of this Warrant and, therefore,
stipulates  that  the  rule  of construction that ambiguities are to be resolved
against  the  drafting  party shall not be applied in the interpretation of this
Warrant  to  favor  any  party  against  the  other  party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

<PAGE>

     IN  WITNESS  WHEREOF,  the Company has executed this Warrant as of the date
first  written  above.

                                         TEXHOMA  ENERGY,  INC.

WITNESS:
                                         By: /s/ Frank A. Jacobs
                                            -----------------------------
/s/ Dale Wilcox                          Name: Frank A. Jacobs
-----------------------                       ---------------------------
                                         Title: Director
                                               --------------------------

Dale Wilcox
Barrister & Solicitor
Suite 1910-777 Hornby Street
Vancounver, B.C. V6Z 1S4

<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:     Texhoma Energy, Inc.
        2411 Fountanview Drive
        Suite 120
        Houston, Texas 77057

Attention:     Chief  Financial  Officer

     The  undersigned,  pursuant  to  the  provisions  set forth in the attached
Warrant  (No.    ),  hereby  irrevocably elects to purchase shares of the Common
             ----
Stock  covered  by  such  Warrant.

     The  undersigned herewith makes payment of the full Exercise Price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$           .  Such payment takes the form of $           in lawful money of the
 -----------                                   -----------
United  States.

     The undersigned requests that the certificates for such shares be issued in
the  name  of,  and  delivered to
                                 -----------------------------------------------
whose  address  is                                                             .
                   ------------------------------------------------------------

     The  undersigned  represents  and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as  amended  (the  "Securities  Act")  or  pursuant  to an exemption from
registration  under  the  Securities  Act.

Dated:
      -------------------               ----------------------------------------
                                        (Signature  must  conform  to  name  of
                                        holder  as  specified on the face of the
                                        Warrant)

                                        Address:
                                                --------------------------------

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

<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

For  value  received,  the undersigned hereby sells, assigns, and transfers unto
the  person(s) named below under the heading "Transferees" the right represented
by  the within Warrant to purchase the percentage and number of shares of Common
Stock  of  Texhoma  Energy, Inc. into which the within Warrant relates specified
under  the  headings  "Percentage  Transferred"  and  "Number  Transferred,"
respectively,  opposite  the  name(s)  of  such person(s) and appoints each such
person Attorney to transfer its respective right on the books of Texhoma Energy,
Inc.  with  full  power  of  substitution  in  the  premises.

Transferees                Address                 Percentage       Number
                                                  Transferred     Transferred
-----------                -------                -----------     -----------

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

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

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

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

Dated:
      ---------------------                  -----------------------------------
                                             (Signature  must  conform  to
                                             name  of holder as specified on the
                                             face  of  the  Warrant)

                                             Address:
                                                     ---------------------------

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

                                             Address:

                                             SIGNED  IN  THE  PRESENCE  OF:

                                             -------------------------------
                                                          (Name)

ACCEPTED  AND  AGREED:
[TRANSFEREE]

----------------------------
           (Name)

<PAGE>Exhibit 10.7

                          REGISTRATION RIGHTS AGREEMENT

     This  Registration  Rights Agreement (this "Agreement") is made and entered
into  as  of  March      ,  2006,  by and between Texhoma Energy, Inc., a Nevada
                   ------
corporation  (the  "Company"),  and  Laurus Master Fund, Ltd. (the "Purchaser").

     This Agreement is made pursuant to the Securities Purchase Agreement, dated
as of the date hereof, by and between the Purchaser and Texaurus Energy, Inc., a
Delaware  corporation  and a wholly owned subsidiary of the Company (as amended,
modified  or  supplemented  from  time  to  time,  the  "Securities  Purchase
Agreement"),  and  pursuant  to  the  Warrants  referred  to  therein.

     The  Company  and  the  Purchaser  hereby  agree  as  follows:

     1.  DEFINITIONS.  Capitalized  terms  used and not otherwise defined herein
that  are  defined  in the Securities Purchase Agreement shall have the meanings
given  such  terms  in  the  Securities  Purchase  Agreement.  As  used  in this
Agreement,  the  following  terms  shall  have  the  following  meanings:

     "Commission"  means  the  Securities  and  Exchange  Commission.

     "Common  Stock"  means  shares  of  the  Company's  common stock, par value
     $0.001  per  share.

     "Effectiveness  Date"  means  (i)  with respect to the initial Registration
Statement  required  to be filed hereunder, a date no later than one hundred and
eighty  (180)  days  following  the  date  hereof  and (ii) with respect to each
additional  Registration  Statement  required  to  be filed hereunder, a date no
later  than  thirty  (30)  days  following  the  applicable  Filing  Date.

     "Effectiveness  Period"  has  the  meaning  set  forth  in  Section  2(a).

     "Exchange  Act"  means  the  Securities  Exchange  Act of 1934, as amended,
     and  any  successor  statute.

     "Filing  Date"  means,  with  respect  to  (i)  the  shares of Common Stock
issuable  upon  exercise of any Warrant, the date which is sixty (60) days after
the  date  of  the issuance of such Warrant, and (ii) the shares of Common Stock
issuable  to  the  Holder as a result of adjustments to the Exercise Price, made
pursuant to the Warrant or otherwise, thirty (30) days after the occurrence such
event  or  the  date  of  the  adjustment  of  the  Exercise  Price.

     "Holder"  or  "Holders"  means  the  Purchaser  or any of its affiliates or
transferees  to  the  extent any of them hold Registrable Securities, other than
those  purchasing  Registrable  Securities  in  a  market  transaction.

     "Indemnified  Party"  has  the  meaning  set  forth  in  Section  5(c).

     "Indemnifying  Party"  has  the  meaning  set  forth  in  Section  5(c).

<PAGE>

     "Proceeding"  means  an  action,  claim,  suit, investigation or proceeding
(including,  without limitation, an investigation or partial proceeding, such as
a  deposition),  whether  commenced  or  threatened.

     "Prospectus"  means  the  prospectus included in the Registration Statement
(including,  without  limitation,  a  prospectus  that  includes any information
previously  omitted from a prospectus filed as part of an effective registration
statement  in  reliance upon Rule 430A promulgated under the Securities Act), as
amended  or supplemented by any prospectus supplement, with respect to the terms
of  the  offering  of  any  portion of the Registrable Securities covered by the
Registration  Statement,  and  all  other  amendments  and  supplements  to  the
Prospectus,  including  post-effective amendments, and all material incorporated
by  reference  or  deemed  to  be  incorporated by reference in such Prospectus.

     "Registrable  Securities"  means the shares of Common Stock issued upon the
exercise  of  the  Warrants.

     "Registration  Statement"  means each registration statement required to be
filed hereunder, including the Prospectus therein, amendments and supplements to
such  registration  statement  or  Prospectus, including pre- and post-effective
amendments,  all exhibits thereto, and all material incorporated by reference or
deemed  to  be  incorporated  by  reference  in  such  registration  statement.

     "Rule  144"  means  Rule  144 promulgated by the Commission pursuant to the
Securities  Act,  as  such Rule may be amended from time to time, or any similar
rule  or regulation hereafter adopted by the Commission having substantially the
same  effect  as  such  Rule.

     "Rule  415"  means  Rule  415 promulgated by the Commission pursuant to the
Securities  Act,  as  such Rule may be amended from time to time, or any similar
rule  or regulation hereafter adopted by the Commission having substantially the
same  effect  as  such  Rule.

     "Securities  Act"  means  the  Securities  Act of 1933, as amended, and any
     successor  statute.

     "Securities  Purchase  Agreement"  has  the  meaning  given to such term in
     the  Preamble  hereto.

     "Trading  Market"  means  any  of  the "Pink Sheets", NASD Over The Counter
Bulletin  Board,  NASDAQ Capital Market, the NASDAQ National Markets System, the
American  Stock  Exchange  or  the  New  York  Stock  Exchange.

     "Warrants"  means  the  Common Stock purchase warrants issued in connection
with the transactions contemplated by the Securities Purchase Agreement, whether
on  the  date  hereof  or  thereafter.

     2.  REGISTRATION.

          (a)  On or prior to the Filing Date the Company shall prepare and file
     with  the  Commission  a  Registration  Statement  covering the Registrable
     Securities  for  a  selling  stockholder  resale  offering  to be made on a
     continuous  basis pursuant to Rule 415. The Registration Statement shall be

<PAGE>

     on  Form  S-3  (except  if the Company is not then eligible to register for
     resale  the  Registrable  Securities  on  Form  S-3,  in  which  case  such
     registration  shall be on another appropriate form in accordance herewith).
     The Company shall cause each Registration Statement to become effective and
     remain effective as provided herein. The Company shall use its best efforts
     to  cause  each  Registration  Statement to be declared effective under the
     Securities Act as promptly as possible after the filing thereof, but in any
     event  no later than the Effectiveness Date. The Company shall use its best
     efforts  to  keep  each Registration Statement continuously effective under
     the Securities Act until the date which is the earlier date of when (i) all
     Registrable  Securities  have  been sold or (ii) all Registrable Securities
     covered  by  such  Registration  Statement  may be sold immediately without
     registration  under  the  Securities  Act  and  without volume restrictions
     pursuant  to  Rule  144(k),  as  determined  by  the counsel to the Company
     pursuant  to  a  written  opinion  letter  to  such  effect,  addressed and
     acceptable  to  the  Company's transfer agent and the affected Holders (the
     "Effectiveness  Period").

          (b)  Within three business days of the Effectiveness Date, the Company
     shall  cause  its  counsel  to issue a blanket opinion in the form attached
     hereto  as  Exhibit  A,  to  the transfer agent stating that the shares are
     subject  to an effective registration statement and can be reissued free of
     restrictive  legend upon notice of a sale by the Purchaser and confirmation
     by  the  Purchaser  that  it  has  complied  with  the  prospectus delivery
     requirements,  provided that the Company has not advised the transfer agent
     orally  or  in  writing  that the opinion has been withdrawn. Copies of the
     blanket  opinion  required  by  this Section 2(b) shall be delivered to the
     Purchaser  within  the  time  frame  set  forth  above.

     3.  REGISTRATION PROCEDURES. If and whenever the Company is required by the
provisions hereof to effect the registration of any Registrable Securities under
the  Securities  Act,  the  Company  will,  as  expeditiously  as  possible:

          (a) prepare and file with the Commission a Registration Statement with
     respect  to such Registrable Securities, respond as promptly as possible to
     any  comments  received  from  the  Commission, and use its best efforts to
     cause  the  Registration  Statement  to become and remain effective for the
     Effectiveness  Period  with  respect  thereto,  and promptly provide to the
     Purchaser  copies of all filings and Commission letters of comment relating
     thereto;

          (b)  prepare  and  file  with  the  Commission  such  amendments  and
     supplements  to  the  Registration  Statement  and  the  Prospectus used in
     connection  therewith  as may be necessary to comply with the provisions of
     the  Securities  Act  with  respect  to  the disposition of all Registrable
     Securities  covered  by  such  Registration  Statement  and  to  keep  such
     Registration  Statement effective until the expiration of the Effectiveness
     Period  applicable  to  such  Registration  Statement;

          (c) furnish to the Purchaser such number of copies of the Registration
     Statement  and  the Prospectus included therein (including each preliminary
     Prospectus)  as  the  Purchaser  reasonably  may  request to facilitate the
     public  sale  or  disposition  of the Registrable Securities covered by the
     Registration  Statement;

<PAGE>

          (d)  use  its  best  efforts  to  register  or qualify the Purchaser's
     Registrable  Securities  covered  by  such Registration Statement under the
     securities  or  "blue  sky"  laws  of  such jurisdictions within the United
     States as the Purchaser may reasonably request, provided, however, that the
     Company  shall not for any such purpose be required to qualify generally to
     transact  business as a foreign corporation in any jurisdiction where it is
     not  so  qualified  or to consent to general service of process in any such
     jurisdiction;

          (e)  list  the  Registrable  Securities  covered  by such Registration
     Statement  with  any  securities  exchange on which the Common Stock of the
     Company  is  then  listed;

          (f)  immediately  notify  the  Purchaser at any time when a Prospectus
     relating  thereto  is required to be delivered under the Securities Act, of
     the  happening  of any event of which the Company has knowledge as a result
     of  which  the Prospectus contained in such 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;  and

          (g)  make  available for inspection by the Purchaser and any attorney,
     accountant  or  other  agent  retained  by  the  Purchaser,  all  publicly
     available,  non-confidential  financial  and  other  records,  pertinent
     corporate  documents and properties of the Company, and cause the Company's
     officers,  directors  and  employees  to  supply  all  publicly  available,
     non-confidential  information  reasonably  requested  by  the  attorney,
     accountant  or  agent  of  the  Purchaser.

     4. REGISTRATION EXPENSES. All expenses relating to the Company's compliance
with  Sections  2  and 3 hereof, including, without limitation, all registration
and  filing  fees,  printing  expenses,  fees  and  disbursements of counsel and
independent  public  accountants  for  the Company, fees and expenses (including
reasonable  counsel  fees)  incurred  in  connection  with  complying with state
securities  or  "blue  sky"  laws,  fees  of  the  NASD, transfer taxes, fees of
transfer  agents  and  registrars,  fees  of, and disbursements incurred by, one
counsel  for  the  Holders,  are  called  "Registration  Expenses".  All selling
commissions applicable to the sale of Registrable Securities, including any fees
and disbursements of any special counsel to the Holders beyond those included in
Registration  Expenses, are called "Selling Expenses." The Company shall only be
responsible  for  all  Registration  Expenses.

     5.  INDEMNIFICATION.

          (a) In the event of a registration of any Registrable Securities under
     the  Securities  Act pursuant to this Agreement, the Company will indemnify
     and hold harmless the Purchaser, and its officers, directors and each other
     person,  if  any,  who  controls  the  Purchaser  within the meaning of the
     Securities  Act,  against any losses, claims, damages or liabilities, joint
     or  several,  to  which  the  Purchaser, or such persons may become subject
     under  the  Securities  Act  or  otherwise, insofar as such losses, claims,
     damages  or liabilities (or actions in respect thereof) arise out of or are
     based upon any untrue statement or alleged untrue statement of any material
     fact  contained  in any Registration Statement under which such Registrable
     Securities  were  registered  under  the  Securities  Act  pursuant to this
     Agreement,  any  preliminary  Prospectus  or  final  Prospectus  contained

<PAGE>

     therein,  or  any  amendment  or supplement thereof, or arise out of or are
     based  upon  the  omission  or alleged omission to state therein a material
     fact  required  to  be  stated  therein or necessary to make the statements
     therein  not  misleading,  and  will reimburse the Purchaser, and each such
     person  for  any  reasonable  legal  or  other expenses incurred by them in
     connection  with  investigating  or defending any such loss, claim, damage,
     liability or action; provided, however, that the Company will not be liable
                          --------  -------
     in  any such case if and to the extent that any such loss, claim, damage or
     liability  arises  out  of  or is based upon an untrue statement or alleged
     untrue statement or omission or alleged omission so made in conformity with
     information  furnished  by or on behalf of the Purchaser or any such person
     in  writing  specifically  for  use  in  any  such  document.

          (b) In the event of a registration of the Registrable Securities under
     the Securities Act pursuant to this Agreement, the Purchaser will indemnify
     and  hold  harmless the Company, and its officers, directors and each other
     person,  if  any,  who  controls  the  Company  within  the  meaning of the
     Securities  Act,  against all losses, claims, damages or liabilities, joint
     or  several,  to which the Company or such persons may become subject under
     the Securities Act or otherwise, insofar as such losses, claims, damages or
     liabilities  (or actions in respect thereof) arise out of or are based upon
     any untrue statement or alleged untrue statement of any material fact which
     was  furnished in writing by the Purchaser to the Company expressly for use
     in  (and such information is contained in) the Registration Statement under
     which  such Registrable Securities were registered under the Securities Act
     pursuant  to this Agreement, any preliminary Prospectus or final Prospectus
     contained  therein, or any amendment or supplement thereof, or arise out of
     or  are  based  upon  the  omission  or alleged omission to state therein a
     material  fact  required  to  be  stated  therein  or necessary to make the
     statements  therein not misleading, and will reimburse the Company and each
     such  person for any reasonable legal or other expenses incurred by them in
     connection  with  investigating  or defending any such loss, claim, damage,
     liability  or  action, provided, however, that the Purchaser will be liable
                            --------  -------
     in  any  such  case  if  and  only to the extent that any such loss, claim,
     damage  or  liability arises out of or is based upon an untrue statement or
     alleged  untrue  statement  or  omission  or  alleged  omission  so made in
     conformity  with  information  furnished in writing to the Company by or on
     behalf  of  the  Purchaser  specifically  for  use  in  any  such document.
     Notwithstanding  the  provisions of this paragraph, the Purchaser shall not
     be  required  to  indemnify any person or entity in excess of the amount of
     the  aggregate  net  proceeds  received  by  the  Purchaser  in  respect of
     Registrable  Securities  in connection with any such registration under the
     Securities  Act.

          (c)  Promptly  after  receipt  by  a  party  entitled  to  claim
     indemnification  hereunder  (an  "Indemnified  Party")  of  notice  of  the
     commencement  of  any  action, such Indemnified Party shall, if a claim for
     indemnification  in  respect  thereof  is to be made against a party hereto
     obligated  to  indemnify  such Indemnified Party (an "Indemnifying Party"),
     notify  the  Indemnifying  Party in writing thereof, but the omission so to
     notify the Indemnifying Party shall not relieve it from any liability which
     it  may  have  to such Indemnified Party other than under this Section 5(c)
     and  shall  only  relieve  it  from any liability which it may have to such
     Indemnified  Party  under  this  Section  5(c)  if  and  to  the extent the
     Indemnifying  Party is prejudiced by such omission. In case any such action

<PAGE>

     shall  be  brought  against  any  Indemnified Party and it shall notify the
     Indemnifying  Party  of  the  commencement  thereof, the Indemnifying Party
     shall  be  entitled  to participate in and, to the extent it shall wish, to
     assume  and undertake the defense thereof with counsel satisfactory to such
     Indemnified  Party,  and,  after notice from the Indemnifying Party to such
     Indemnified  Party  of  its election so to assume and undertake the defense
     thereof,  the  Indemnifying  Party  shall not be liable to such Indemnified
     Party  under this Section 5(c) for any legal expenses subsequently incurred
     by  such  Indemnified  Party in connection with the defense thereof; if the
     Indemnified Party retains its own counsel, then the Indemnified Party shall
     pay  all fees, costs and expenses of such counsel, provided, however, that,
                                                        --------  -------
     if the defendants in any such action include both the Indemnified Party and
     the  Indemnifying  Party  and  the  Indemnified Party shall have reasonably
     concluded  that  there may be reasonable defenses available to it which are
     different  from  or additional to those available to the Indemnifying Party
     or  if  the  interests of the Indemnified Party reasonably may be deemed to
     conflict  with  the  interests  of  the Indemnifying Party, the Indemnified
     Party  shall  have  the  right to select one separate counsel and to assume
     such  legal  defenses  and  otherwise to participate in the defense of such
     action,  with the reasonable expenses and fees of such separate counsel and
     other  expenses  related  to  such  participation  to  be reimbursed by the
     Indemnifying  Party  as  incurred.

          (d)  In  order  to  provide for just and equitable contribution in the
     event  of  joint  liability  under  the Securities Act in any case in which
     either (i) the Purchaser, or any officer, director or controlling person of
     the Purchaser, makes a claim for indemnification pursuant to this Section 5
     but it is judicially determined (by the entry of a final judgment or decree
     by  a  court of competent jurisdiction and the expiration of time to appeal
     or  the  denial  of the last right of appeal) that such indemnification may
     not  be  enforced in such case notwithstanding the fact that this Section 5
     provides  for  indemnification in such case, or (ii) contribution under the
     Securities  Act  may  be  required  on  the  part  of the Purchaser or such
     officer,  director  or controlling person of the Purchaser in circumstances
     for  which  indemnification  is provided under this Section 5; then, and in
     each  such  case,  the  Company  and  the  Purchaser will contribute to the
     aggregate  losses,  claims,  damages  or  liabilities  to which they may be
     subject  (after  contribution  from  others) in such proportion so that the
     Purchaser is responsible only for the portion represented by the percentage
     that  the  public  offering  price  of  its  securities  offered  by  the
     Registration Statement bears to the public offering price of all securities
     offered  by  such  Registration  Statement, provided, however, that, in any
                                                 --------  -------
     such  case, (A) the Purchaser will not be required to contribute any amount
     in excess of the public offering price of all such securities offered by it
     pursuant to such Registration Statement; and (B) no person or entity guilty
     of fraudulent misrepresentation (within the meaning of Section 10(f) of the
     Act) will be entitled to contribution from any person or entity who was not
     guilty  of  such  fraudulent  misrepresentation.

     6.  REPRESENTATIONS  AND  WARRANTIES.

          (a)  Except  as set forth in Schedule 6(a) hereto, the Common Stock is
     registered  pursuant  to  Section  12(b)  or 12(g) of the Exchange Act and,
     except  with  respect to certain matters which the Company has disclosed to
     the  Purchaser on Schedule 6 hereto, the Company has timely filed all proxy
     statements,  reports,  schedules,  forms,  statements  and  other documents
     required  to  be  filed by it under the Exchange Act. The Company has filed

<PAGE>

     (i)  its  Annual  Report on Form 10-KSB for its fiscal year ended September
     30,  2004  and  (ii)  its  Quarterly  Report  on Form 10-QSB for the fiscal
     quarters  ended  December  31,  2004,  March  31,  2005  and  June 30, 2005
     (collectively,  the "SEC Reports"). Each SEC Report was, at the time of its
     filing,  in  substantial compliance with the requirements of its respective
     form  and  none  of  the SEC Reports, nor the financial statements (and the
     notes  thereto)  included in the SEC Reports, as of their respective filing
     dates,  contained  any  untrue  statement  of a material fact or omitted to
     state  a  material  fact required to be stated therein or necessary to make
     the statements therein, in light of the circumstances under which they were
     made,  not  misleading. The financial statements of the Company included in
     the  SEC Reports comply as to form in all material respects with applicable
     accounting  requirements  and  the  published  rules and regulations of the
     Commission  or other applicable rules and regulations with respect thereto.
     Such  financial  statements have been prepared in accordance with generally
     accepted  accounting  principles  ("GAAP")  applied  on  a consistent basis
     during  the  periods  involved (except (i) as may be otherwise indicated in
     such  financial  statements  or  the  notes  thereto or (ii) in the case of
     unaudited  interim statements, to the extent they may not include footnotes
     or  may  be  condensed)  and  fairly  present  in all material respects the
     financial  condition,  the  results of operations and the cash flows of the
     Company  and its subsidiaries, on a consolidated basis, as of, and for, the
     periods  presented  in  each  such  SEC  Report.

          (b)  The  Common  Stock is quoted for trading on the "Pink Sheets" and
     satisfies  all requirements for the continuation of such quotation, and the
     Company  shall  do  all  things  necessary  for  the  continuation  of such
     quotation.  The  Company  has not received any notice that its Common Stock
     will  no  longer  be  quoted on the "Pink Sheets" (except for prior notices
     which  have been fully remedied) or that the Common Stock does not meet all
     requirements  for  the  continuation  of  such  listing.

          (c)  Neither  the  Company,  nor any of its affiliates, nor any person
     acting  on  its or their behalf, has directly or indirectly made any offers
     or  sales of any security or solicited any offers to buy any security under
     circumstances  that would cause the Registrable Securities to be integrated
     with  prior  offerings  by  the  Company for purposes of the Securities Act
     which  would  prevent the Company from selling the Common Stock pursuant to
     Rule  506  under  the  Securities  Act,  or any applicable exchange-related
     stockholder  approval  provisions,  nor  will  the  Company  or  any of its
     affiliates  or  subsidiaries  take any action or steps that would cause the
     Registrable  Securities  to  be  integrated  with  other  offerings.

          (d)  The  Warrants  and the shares of Common Stock which the Purchaser
     may  acquire  pursuant  to the Warrants are all restricted securities under
     the  Securities  Act as of the date of this Agreement. The Company will not
     issue any stop transfer order or other order impeding the sale and delivery
     of  any  of  the  Registrable  Securities  at such time as such Registrable
     Securities are registered for public sale or an exemption from registration
     is  available,  except  as  required  by  federal or state securities laws.

          (e)  The  Company understands the nature of the Registrable Securities
     issuable  upon the exercise of the Warrant and recognizes that the issuance

<PAGE>

     of  such  Registrable  Securities may have a potential dilutive effect. The
     Company  specifically  acknowledges  that  its  obligation  to  issue  the
     Registrable  Securities  is  binding  upon  the  Company  and  enforceable
     regardless  of  the  dilution  such  issuance  may  have  on  the ownership
     interests  of  other  shareholders  of  the  Company.

          (f)  Except  for  agreements  made in the ordinary course of business,
     there  is  no  agreement  that has not been filed with the Commission as an
     exhibit  to  a  registration statement or to a form required to be filed by
     the Company under the Exchange Act, the breach of which could reasonably be
     expected  to  have  a  material  and  adverse effect on the Company and its
     subsidiaries,  or would prohibit or otherwise interfere with the ability of
     the  Company  to  enter  into and perform any of its obligations under this
     Agreement  in  any  material  respect.

          (g)  The  Company  will  at  all  times have authorized and reserved a
     sufficient  number  of  shares of Common Stock for the full exercise of the
     Warrants.

     7.  MISCELLANEOUS.

          (a)  REMEDIES. In the event of a breach by the Company or by a Holder,
     of any of their respective obligations under this Agreement, each Holder or
     the  Company, as the case may be, in addition to being entitled to exercise
     all  rights  granted by law and under this Agreement, including recovery of
     damages,  will be entitled to specific performance of its rights under this
     Agreement.

          (b)  NO  PIGGYBACK  ON  REGISTRATIONS.  Except  as  and  to the extent
     specified  in  Schedule  7(b)  hereto,  neither  the Company nor any of its
     security  holders (other than the Holders in such capacity pursuant hereto)
     may  include  securities of the Company in any Registration Statement other
     than  the  Registrable Securities, and the Company shall not after the date
     hereof  enter  into any agreement providing any such right for inclusion of
     shares in the Registration Statement to any of its security holders. Except
     as and to the extent specified in Schedule 7(b) hereto, the Company has not
     previously entered into any agreement granting any registration rights with
     respect to any of its securities to any person or entity that have not been
     fully  satisfied.

          (c)  COMPLIANCE.  Each Holder covenants and agrees that it will comply
     with  the  prospectus  delivery  requirements  of  the  Securities  Act  as
     applicable  to  it  in  connection  with  sales  of  Registrable Securities
     pursuant  to  the  Registration  Statement.

          (d) DISCONTINUED DISPOSITION. Each Holder agrees by its acquisition of
     such Registrable Securities that, upon receipt of a notice from the Company
     of  the  occurrence  of  a  Discontinuation  Event (as defined below), such
     Holder  will  forthwith  discontinue  disposition  of  such  Registrable
     Securities  under the applicable Registration Statement until such Holder's
     receipt  of  the  copies  of  the  supplemented  Prospectus  and/or amended
     Registration  Statement or until it is advised in writing (the "Advice") by
     the  Company that the use of the applicable Prospectus may be resumed, and,
     in  either  case,  has  received  copies  of any additional or supplemental
     filings  that are incorporated or deemed to be incorporated by reference in
     such  Prospectus  or  Registration  Statement.  The  Company  may  provide

<PAGE>

     appropriate  stop  orders  to enforce the provisions of this paragraph. For
     purposes  of  this Agreement, a "Discontinuation Event" shall mean (i) when
     the  Commission  notifies  the  Company whether there will be a "review" of
     such Registration Statement and whenever the Commission comments in writing
     on such Registration Statement (the Company shall provide true and complete
     copies  thereof  and all written responses thereto to each of the Holders);
     (ii)  any  request  by  the  Commission  or  any  other  Federal  or  state
     governmental  authority  for amendments or supplements to such Registration
     Statement  or  Prospectus or for additional information; (iii) the issuance
     by  the  Commission  of any stop order suspending the effectiveness of such
     Registration Statement covering any or all of the Registrable Securities or
     the initiation of any Proceedings for that purpose; (iv) the receipt by the
     Company  of  any  notification  with  respect  to  the  suspension  of  the
     qualification  or  exemption  from  qualification of any of the Registrable
     Securities  for  sale in any jurisdiction, or the initiation or threatening
     of  any Proceeding for such purpose; and/or (v) the occurrence of any event
     or  passage  of  time  that makes the financial statements included in such
     Registration  Statement  ineligible  for inclusion therein or any statement
     made  in  such  Registration  Statement  or  Prospectus  or  any  document
     incorporated  or  deemed  to be incorporated therein by reference untrue in
     any  material  respect  or that requires any revisions to such Registration
     Statement,  Prospectus  or  other  documents  so  that, in the case of such
     Registration  Statement  or  Prospectus,  as  the  case may be, it will not
     contain  any  untrue  statement  of  a  material  fact or omit to state any
     material  fact  required  to  be  stated  therein  or necessary to make the
     statements  therein,  in  light  of the circumstances under which they were
     made,  not  misleading.

          (e)  PIGGY-BACK  REGISTRATIONS.  If  at any time after the date hereof
     there  is  not  an  effective  Registration  Statement  covering all of the
     Registrable  Securities and the Company shall determine to prepare and file
     with  the  Commission  a registration statement relating to an offering for
     its own account or the account of others under the Securities Act of any of
     its  equity  securities,  other  than  on  Form  S-4  or  Form S-8 (each as
     promulgated under the Securities Act) or their then equivalents relating to
     equity securities to be issued solely in connection with any acquisition of
     any  entity  or  business  or equity securities issuable in connection with
     stock  option  or other employee benefit plans, then the Company shall send
     to  each Holder written notice of such determination and, if within fifteen
     (15) days after receipt of such notice, any such Holder shall so request in
     writing,  the  Company  shall include in such registration statement all or
     any  part  of  such  Registrable  Securities  such  Holder  requests  to be
     registered  to  the  extent  the  Company  may  do  so  without  violating
     registration rights of others which exist as of the date of this Agreement,
     subject  to  customary  underwriter  cutbacks  applicable to all holders of
     registration  rights  and  subject to obtaining any required consent of any
     selling stockholder(s) to such inclusion under such registration statement.

          (f)  AMENDMENTS  AND  WAIVERS.  The  provisions  of  this  Agreement,
     including  the provisions of this sentence, may not be amended, modified or
     supplemented,  and  waivers  or  consents to departures from the provisions
     hereof  may not be given, unless the same shall be in writing and signed by
     the Company and the Holders of the then outstanding Registrable Securities.
     Notwithstanding  the  foregoing,  a  waiver  or  consent to depart from the
     provisions  hereof with respect to a matter that relates exclusively to the

<PAGE>

     rights  of  certain Holders and that does not directly or indirectly affect
     the  rights of other Holders may be given by Holders of at least a majority
     of  the  Registrable  Securities  to  which such waiver or consent relates;
     provided, however, that the provisions of this sentence may not be amended,
     --------  -------
     modified,  or  supplemented except in accordance with the provisions of the
     immediately  preceding  sentence.

          (g)  NOTICES.  Any  notice  or  request  hereunder may be given to the
     Company  or the Purchaser at the respective addresses set forth below or as
     may  hereafter  be  specified in a notice designated as a change of address
     under  this Section 7(g). Any notice or request hereunder shall be given by
     registered  or  certified  mail,  return  receipt requested, hand delivery,
     overnight  mail,  Federal  Express  or  other  national  overnight next day
     carrier  (collectively, "Courier") or telecopy (confirmed by mail). Notices
     and  requests  shall  be,  in the case of those by hand delivery, deemed to
     have been given when delivered to any party to whom it is addressed, in the
     case  of  those  by mail or overnight mail, deemed to have been given three
     (3)  business  days  after  the date when deposited in the mail or with the
     overnight  mail  carrier,  in  the case of a Courier, the next business day
     following timely delivery of the package with the Courier, and, in the case
     of  a  telecopy,  when  confirmed.  The  address  for  such  notices  and
     communications  shall  be  as  follows:

           If to the Company:             Texhoma Energy, Inc.
                                          2411 Fountainview Drive, Suite 120
                                          Houston, Texas 77057
                                          Attention:     Chief Financial Officer
                                          Facsimile:     604-683-2883

                                          with a copy to:

                                          David M. Loev, Esq.
                                          Attorney at Law
                                          2777 Allen Parkway
                                          Suite 1000
                                          Houston, Texas 77019
                                          Attention:     David M. Loev, Esq.
                                          Facsimile:     713-524-4122

If to a Purchaser:                        To  the  address  set  forth  under
                                          such  Purchaser  name  on  the
                                          signature  pages  hereto.

If to any other Person who is
then the registered Holder:               To  the  address  of  such  Holder
                                          as it appears in the stock transfer
                                          books  of  the  Company

or  such  other  address as may be designated in writing hereafter in accordance
with  this  Section  7(g)  by  such  Person.

          (h)  SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit
     of  and be binding upon the successors and permitted assigns of each of the
     parties  and shall inure to the benefit of each Holder. The Company may not
     assign  its  rights  or  obligations  hereunder  without  the prior written
     consent  of  each  Holder.  Each  Holder may assign their respective rights
     hereunder.

          (i)  EXECUTION AND COUNTERPARTS. This Agreement may be executed in any
     number  of  counterparts, each of which when so executed shall be deemed to

<PAGE>

     be  an  original  and, all of which taken together shall constitute one and
     the  same  agreement.  In  the  event  that  any  signature is delivered by
     facsimile  transmission,  such  signature  shall  create  a  valid  binding
     obligation  of  the  party  executing (or on whose behalf such signature is
     executed)  the  same  with  the  same force and effect as if such facsimile
     signature  were  the  original  thereof.

          (j)  GOVERNING  LAW,  JURISDICTION  AND  WAIVER  OF  JURY  TRIAL. THIS
     AGREEMENT  SHALL  BE  GOVERNED  BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
     WITH  THE  LAWS  OF  THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
     PERFORMED  IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
     The  Company  hereby  consents  and agrees that the state or federal courts
     located  in  the County of New York, State of New York shall have exclusion
     jurisdiction  to  hear and determine any Proceeding between the Company, on
     the  one  hand,  and  the  Purchaser, on the other hand, pertaining to this
     Agreement  or  to  any  matter arising out of or related to this Agreement;
     provided,  that  the Purchaser and the Company acknowledge that any appeals
     from  those  courts  may have to be heard by a court located outside of the
     County  of  New York, State of New York, and further provided, that nothing
                                                  ----------------
     in this Agreement shall be deemed or operate to preclude the Purchaser from
     bringing a Proceeding in any other jurisdiction to collect the obligations,
     to  realize on the Collateral or any other security for the obligations, or
     to  enforce  a judgment or other court order in favor of the Purchaser. The
     Company  expressly  submits and consents in advance to such jurisdiction in
     any  Proceeding  commenced in any such court, and the Company hereby waives
     any  objection  which it may have based upon lack of personal jurisdiction,
     improper  venue or forum non conveniens. The Company hereby waives personal
                        --------------------
     service  of  the  summons,  complaint  and other process issued in any such
     Proceeding  and  agrees  that  service of such summons, complaint and other
     process  may  be  made  by  registered  or  certified mail addressed to the
     Company  at  the address set forth in Section 7(g) and that service so made
     shall  be deemed completed upon the earlier of the Company's actual receipt
     thereof  or  three (3) days after deposit in the U.S. mails, proper postage
     prepaid.  The  parties  hereto  desire that their disputes be resolved by a
     judge  applying  such  applicable  laws.  Therefore,  to  achieve  the best
     combination  of the benefits of the judicial system and of arbitration, the
     parties  hereto waive all rights to trial by jury in any Proceeding brought
     to  resolve  any  dispute,  whether arising in contract, tort, or otherwise
     between  the  Purchaser  and/or the Company arising out of, connected with,
     related  or  incidental  to  the  relationship  established between then in
     connection  with  this  Agreement.  If either party hereto shall commence a
     Proceeding  to  enforce  any  provisions  of this Agreement, the Securities
     Purchase  Agreement  or  any  other  Related Agreement, then the prevailing
     party  in  such  Proceeding  shall be reimbursed by the other party for its
     reasonable  attorneys'  fees and other costs and expenses incurred with the
     investigation,  preparation  and  prosecution  of  such  Proceeding.

<PAGE>

          (k)  CUMULATIVE  REMEDIES. The remedies provided herein are cumulative
     and  not  exclusive  of  any  remedies  provided  by  law.

          (l)  SEVERABILITY.  If any term, provision, covenant or restriction of
     this  Agreement is held by a court of competent jurisdiction to be invalid,
     illegal,  void  or  unenforceable,  the remainder of the terms, provisions,
     covenants  and restrictions set forth herein shall remain in full force and
     effect  and  shall  in no way be affected, impaired or invalidated, and the
     parties  hereto  shall  use  their reasonable efforts to find and employ an
     alternative  means  to achieve the same or substantially the same result as
     that  contemplated  by such term, provision, covenant or restriction. It is
     hereby stipulated and declared to be the intention of the parties that they
     would  have  executed  the  remaining  terms,  provisions,  covenants  and
     restrictions  without  including any of such that may be hereafter declared
     invalid,  illegal,  void  or  unenforceable.

          (m)  HEADINGS.  The  headings in this Agreement are for convenience of
     reference  only and shall not limit or otherwise affect the meaning hereof.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  have executed this Registration Rights
Agreement  as  of  the  date  first  written  above.

TEXHOMA  ENERGY,  INC.                       LAURUS  MASTER  FUND,  LTD.

By: /s/ Frank A. Jacobs                       By: /s/ Eugene Grin
   ----------------------------                 -------------------------------

Name: Frank A. Jacobs                        Name: Eugene Grin
     --------------------------                   -----------------------------

Title: Director                              Title: Director
      -------------------------                   -----------------------------

                                             Address  for  Notices:

                                             825  Third  Avenue,  14th  Floor
                                             New  York,  NY  10022
                                             Attention:  David  Grin
                                             Facsimile:  212-541-4434

<PAGE>

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