Document:

COMMON
      STOCK PURCHASE OPTION

     

    THE
      SECURITIES REPRESENTED BY THIS OPTION HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
      SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT. 

     

    Option
      To Purchase Common Stock of TXP Corporation

     

    
      	
              Option
                No.: SHORES 1

            	
              Number
                of Shares:

            	
              35,000,000

            
	 	
              Exercise
                Price:

            	
              $0.01

            
	 	
              Expiration
                Date:

            	
              May
                29, 2013

            

    

    

    Date
      of
      Issuance: May 29, 2008

    

    Michael
      C. Shores
      (the
“Grantor”)
      hereby
      grants, for good and valuable consideration, the receipt and sufficiency of
      which are hereby acknowledged, to YA
      Global Investments, L.P.
      (the
“Holder”),
      the
      registered holder hereof or its permitted assigns, the option, subject to the
      terms of this Common Stock Purchase Option (the “Option”),
      to
      purchase from the Grantor upon, at any time or times on or after the date
      hereof, but not after 11:59 P.M. Eastern Time on the Expiration Date (as
      defined herein) up to 35,000,000
      of the
      Grantor’s shares (the “Option
      Shares”)
      of
      Common Stock (as defined herein) of TXP Corporation, a Nevada corporation (the
      “Company”)
      at the
      Exercise Price per share (as defined herein) or as subsequently adjusted. The
      Grantor acknowledges that the Holder has extended financial accommodations
      to
      the Company and is making additional loans to the Company pursuant to the
      Securities Purchase Agreement entered into between the Company and the Holder
      on
      the date hereof, and the Grantor, as the majority shareholder of the Company
      will directly benefit from the extension of such financial accommodation and
      acknowledges that without the grant of this Option, the Holder would not be
      willing to enter into the Securities Purchase Agreement. The Grantor
      acknowledges that this Option is irrevocable. 

     

    Section
      1. Definitions.
      The
      following words and terms as used in this Option shall have the following
      meanings:

     

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

    (c) “Common
      Stock”
means
      (i) the Company’s common stock, par value $.001 per share.

     

    (d) “Escrow
      Agent”
shall
      mean the escrow agent appointed by the Grantor and the Holder pursuant to the
      escrow agreement dated May 29, 2008 to hold the shares of Common Stock
      underlying this Option for delivery to the Holder upon exercise. 

     

    (e) “Exercise
      Price”
shall
      be $0.01 or as subsequently adjusted as provided in hereof.

     

    (f) “Expiration
      Date”
means
      the date written on the first page of this Option.

     

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

     

    (h) “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

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

     

    (j) “Securities
      Purchase Agreement”
means
      the Securities Purchase Agreement between the Company and the Holder dated
      May
      29, 2008. 

     

    Section
      2. Exercise
      of Option.
      

     

    (a) Vesting
      Schedule. The
      Option to purchase the number of Option Shares set forth herein shall vest
      and
      become exercisable pursuant to the following schedule:

     

    
      	
              Vesting Date

            	 	
              Option Shares Vested

            	 
	 	 	 	 
	
              The
                Issuance Date

            	 	 	
              18,261,000

            	 
	 	 	 	 	 
	
              The
                Second Closing Date (as defined in the Securities Purchase
                Agreement)

            	 	 	
              9,130,000

            	 
	 	 	 	 	 
	
              The
                Third Closing Date (as defined in the Securities Purchase
                Agreement)

            	 	 	
              7,609,000

            	 

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (b) Exercise
      Procedures.
      Subject
      to the terms and conditions hereof, this Option may be exercised with respected
      to vested Option Shares by the Holder hereof, at any time on any Business Day
      on
      or after the opening of business on such Business Day, commencing with the
      first
      day after the date hereof, and prior to 11:59 P.M. Eastern Time on the
      Expiration Date (i) by delivery of a written notice, in the form of the exercise
      notice attached as Exhibit
      A
      hereto
      (the “Exercise
      Notice”),
      of
      such holder’s election to exercise this Option, which notice shall specify the
      number of Option Shares to be purchased, and payment to the Grantor of an
      amount equal to the Exercise Price applicable to the Option Shares being
      purchased, multiplied by the number of Option Shares (at the applicable
      Exercise Price) as to which this Option is being exercised (plus any
      applicable issue or transfer taxes) (the “Aggregate
      Exercise Price”)
      in
      cash or wire transfer of immediately available funds (“Cash
      Basis”)
      or
      (ii) if at the time of exercise, the Option Shares are not subject to an
      effective registration statement, by delivering an Exercise Notice and in lieu
      of making payment of the Aggregate Exercise Price in cash or wire transfer,
      elect instead to receive upon such exercise the “Net Number” of shares of Common
      Stock determined according to the following formula (the “Cashless
      Exercise”):
      

     

    Net
      Number = (A
      x
      B) – (A x C)

                                        
      B

     

    For
      purposes of the foregoing formula: 

    

    A
      = the
      total number of Option Shares with respect to which this Option is then being
      exercised. 

    

    B
      = the
      Closing Bid Price of the Common Stock on the date of exercise of the
      Option.

    

    C
      = the
      Exercise Price then in effect for the applicable Option Shares at the time
      of
      such exercise. 

    

    In
      the
      event of any exercise of the rights represented by this Option in compliance
      with this Section 2, the Holder shall deliver the Exercise Notice to the Escrow
      Agent, with a copy to the Grantor, which Exercise Notice shall represent and
      warrant that either the Aggregate Exercise Price has been paid to the Grantor
      or
      that such exercise is a Cashless Exercise and the Holder elects to receive
      the
      Net Number of Option Shares, the Escrow Agent shall deliver to the Holder the
      Option Shares as set forth in the Exercise Notice. Upon delivery of the Exercise
      Notice and either payment of the Aggregate Exercise Price or election of a
      Cashless Exercise, the Holder of this Option shall be deemed for all corporate
      purposes to have become the holder of record of the Option Shares with respect
      to which this Option has been exercised. 

     

    (c) If
      the
      holder and the Grantor are unable to agree upon the determination of the
      Exercise Price or arithmetic calculation of the Option Shares within one (1)
      day
      of such disputed determination or arithmetic calculation being submitted to
      the
      holder, then the Grantor shall immediately submit via facsimile (i) the disputed
      determination of the Exercise Price or the Closing Bid Price to an independent,
      reputable investment banking firm. The Grantor shall cause the investment
      banking firm to perform the determinations or calculations and notify the
      Grantor and the Holder of the results no later than forty-eight (48) hours
      from
      the time it receives the disputed determinations or calculations. Such
      investment banking firm’s determination or calculation, as the case may be,
      shall be deemed conclusive absent manifest error.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (d) No
      fractional Option Shares are to be issued upon any pro rata exercise of this
      Option, but rather the number of Option Shares issued upon such exercise of
      this
      Option shall be rounded down to the nearest whole number.

     

    (e) Beneficial
      Ownership Limitation.
      The
      Holder shall not have the right to exercise any portion of this Option to the
      extent that after giving effect to such exercise, the Holder, together with
      any
      affiliate thereof, would beneficially own (as determined in accordance with
      Section 13(d) of the Exchange Act and the rules promulgated thereunder) in
      excess of 4.99% of the number of shares of Common Stock outstanding. For
      purposes of this Option, in determining the number of outstanding shares of
      Common Stock the Holder may rely on the number of outstanding shares of Common
      Stock as reflected in (1) the Company’s most recent Form 10-Q or Form 10-K, as
      the case may be, (2) a more recent public announcement by the Company or (3)
      any
      other notice by the Company or its transfer agent setting forth the number
      of
      shares of Common Stock outstanding. 

     

    Section
      3. Option
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Option
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of capital stock of the Company for any purpose, nor shall anything contained
      in
      this Option be construed to confer upon the holder hereof, as such, any of
      the
      rights of a stockholder of the Company or any right to vote, give or withhold
      consent to any corporate action (whether any reorganization, issue of stock,
      reclassification of stock, consolidation, merger, conveyance or otherwise),
      receive notice of meetings, receive dividends or subscription rights, or
      otherwise, prior to the exercise by the holder of this Option of Option Shares.
      

     

    Section
      4. Subdivision.
      If, and
      whenever, prior to the expiration of the Option or distribution to the Holder
      of
      all the Option Shares, the Company shall effect a subdivision or consolidation
      of shares of Common Stock or the payment of a stock dividend on Common Stock
      without receipt of consideration by the Company, the number of shares of Common
      Stock with respect to which this Options may thereafter be exercised or
      satisfied, as applicable, (a) in the event of an increase in the number of
      outstanding shares, shall be proportionately increased, and the purchase price
      per share shall be proportionately reduced, and (b) in the event of a reduction
      in the number of outstanding shares, shall be proportionately reduced, and
      the
      purchase price per share shall be proportionately increased.

     

    Section
      5.  Recapitalization.
      If the
      Company recapitalizes or otherwise changes it capital structure, thereafter
      upon
      any exercise of the Option, the Holder shall be entitled to receive under such
      Options, in lieu of the number of shares of Common Stock then covered by such
      Options, the number and class of shares of stock and securities to which the
      Holder would have been entitled pursuant to the terms of the recapitalization
      if, immediately prior to such recapitalization, the Holder had been the holder
      of record of the number of shares of Common Stock then covered by such
      Options.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Section
      6. Representations
      of Holder.
      The
      holder of this Option, by the acceptance hereof, represents that it is acquiring
      this Option and the Option Shares for its own account for investment only and
      not with a view towards, or for resale in connection with, the public sale
      or
      distribution of this Option or the Option Shares, except pursuant to sales
      registered or exempted under the Securities Act; provided, however, that by
      making the representations herein, the Holder does not agree to hold this Option
      or any of the Option Shares for any minimum or other specific term and reserves
      the right to dispose of this Option and the Option Shares at any time in
      accordance with or pursuant to a registration statement or an exemption under
      the Securities Act. The holder of this Option further represents, by acceptance
      hereof, that, as of this date, such holder is an “accredited investor” as such
      term is defined in Rule 501(a)(1) of Regulation D promulgated by the
      Securities and Exchange Commission under the Securities Act (an “Accredited
      Investor”).
      

     

    Section
      7. Notice.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Option must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally;
      (ii) upon receipt, when sent by facsimile (provided confirmation of receipt
      is received by the sending party transmission is mechanically or electronically
      generated and kept on file by the sending party); or (iii) one Business Day
      after deposit with a nationally recognized overnight delivery service, in each
      case properly addressed to the party to receive the same. The addresses and
      facsimile numbers for such communications shall be:

     

    
      	
              If
                to Holder:

            	
              YA
                Global Investments, L.P.

            
	 	
              101
                Hudson Street – Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Attention: Mark
                A. Angelo

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	
              With
                Copy to:

            	
              David
                Gonzalez, Esq.

            
	 	
              101
                Hudson Street – Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	
              If
                to the Grantor, to:

            	
              Michael
                Shores

            
	 	
              c/o
                TXP Corporation

            
	 	
              1299
                Commerce Drive

            
	 	
              Richardson,
                Texas 75081

            
	 	
              Attention:
                Michael Shores

            
	 	
              Telephone:
                (214) 575-9300

            
	 	
              Facsimile:
                (214) 575-9314

            
	 	 
	
              With
                a copy to:

            	
              Hodgson
                Russ LLP

            
	 	
              1540
                Broadway, 24th
                Floor

            
	 	
              New
                York, New York 10036

            
	 	
              Attention:
                Eric Pinero, Esq.

            
	 	
              Telephone:
                (212) 751-4300

            
	 	
              Facsimile:
                (212) 751-0928

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    Each
      party shall provide five days’ prior written notice to the other party of any
      change in address or facsimile number. Written confirmation of receipt
      (A) given by the recipient of such notice, consent, facsimile, waiver or
      other communication, (or (B) provided by a nationally recognized overnight
      delivery service shall be rebuttable evidence of personal service, receipt
      by
      facsimile or receipt from a nationally recognized overnight delivery service
      in
      accordance with clause (i), (ii) or (iii) above, respectively.

     

    Section
      8. Waiver
      of Jury Trial.
      AS
      A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS OPTION, THE
      PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS OPTION AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION.

     

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

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

     

    
      	 	
              /s/
                Michael C. Shores

            
	 	
              Michael
                C. Shores

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A TO OPTION

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED
BY
      THE REGISTERED HOLDER TO EXERCISE THIS OPTION

     

    TO
      PURCHASE SHARES OF TXP CORPORATION

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Option
      Shares”)
      of TXP
      Corporation (the “Company”)
      from
      Michael C. Shores (the “Grantor”),
      evidenced by the attached Option (the “Option”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Option.

     

    Specify
      Method of exercise by check mark:

     

    1.
      ___ Cash
      Exercise

     

    (a)
      Payment
      of Exercise Price.
      The
      holder has paid the Aggregate Exercise Price of $______________ to the Grantor
      in accordance with the terms of the Option. 

     

    (b)
      Delivery
      of Option Shares.
      The
      Grantor shall deliver to the holder _________
      Option
      Shares in accordance with the terms of the Option. 

     

    2.
      ___ Cashless
      Exercise

     

    (a)
      Payment
      of Exercise Price.
      In lieu
      of making payment of the Aggregate Exercise Price, the holder elects to receive
      upon such exercise the Net Number of shares of Common Stock determined in
      accordance with the terms of the Option. 

     

    (b)
      Delivery
      of Option Shares.
      The
      Grantor shall deliver to the holder _________
      Option
      Shares in accordance with the terms of the Option. 

     

    Date:
      _______________ __, ______

    

    Name
      of
      Registered Holder

    

    
      	
              By:

            	 

	
              Name:

            	 
	
              Title:GUARANTY

     

    GUARANTY,
      dated
      as of May 29, 2008 made by each of the undersigned (each a "Guarantor",
      and
      collectively, the "Guarantors"),
      in
      favor of YA
      GLOBAL INVESTMENTS, L.P.
      (the
“Buyer”).

     

    WHEREAS,
      TXP
      Corporation, a Nevada corporation (the "Debtor"),
      and
      the Buyer are parties to the Securities Purchase Agreement of even date herewith
      (the “Securities
      Purchase Agreement”);

     

    WHEREAS,
      it is a
      condition precedent to the Buyer purchasing the Debentures (as defined below)
      that the Guarantors execute and deliver to the Buyer a guaranty guaranteeing
      a
      portion of the Obligations (as defined below) of the Debtor; 

     

    WHEREAS,
      each
      Guarantor has determined that the execution, delivery and performance of this
      Guaranty directly benefits, and is in the best interest of, such
      Guarantor;

     

    WHEREAS,
      the
      Company has an outstanding loan (the “A/R
      Loan”)
      from a
      bank in the amount of $500,000 which is secured by, among other things, its
      accounts receivable, and guaranteed by the Guarantor; 

     

    WHEREAS,
      the
      A/R
      Loan is due on June 1, 2008 and the Company intends to repay the loan from
      the
      proceeds of the Debentures and subsequently enter into a similar replacement
      loan. 

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the agreements herein and in order to induce
      the Buyer to perform under the Securities Purchase Agreement, each Guarantor
      hereby agrees with each Buyer as follows:

     

    SECTION
      1. Definitions.
      Reference is hereby made to the Securities Purchase Agreement and the
      "Convertible Debentures" (as defined therein) issued pursuant thereto
      (collectively, the "Debentures")
      for a
      statement of the terms thereof. All terms used in this Guaranty, which are
      defined in the Securities Purchase Agreement or the Debentures and not otherwise
      defined herein, shall have the same meanings herein as set forth therein.

     

    SECTION
      2. Guaranty.
      The
      Guarantors, jointly and severally, hereby unconditionally and irrevocably,
      guaranty the punctual payment, as and when due and payable, by stated maturity
      or otherwise, of all Obligations (as defined in the Security Agreement between
      the Debtor and the Buyer of even date herewith) of the Debtor (such Obligations,
      to the extent not paid by the Debtor, being the "Guaranteed
      Obligations"),
      up to
      a maximum of $500,000, and agrees to pay any and all expenses (including
      reasonable counsel fees and expenses) reasonably incurred by the Buyer in
      enforcing any rights under this Guaranty. Without limiting the generality of
      the
      foregoing, each Guarantor's liability hereunder shall extend to all amounts
      that
      constitute part of the Guaranteed Obligations and would be owed by the Debtor
      to
      the Buyer but for the fact that they are unenforceable or not allowable due
      to
      the existence of an insolvency proceeding involving any Guarantor or the Debtor
      (each, a "Transaction
      Party").

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      3. Guaranty
      Absolute; Continuing Guaranty; Assignments.

     

    (a)
       The
      Guarantors, jointly and severally, guaranty that the Guaranteed Obligations
      will
      be paid strictly in accordance with the terms such obligations regardless of
      any
      law, regulation or order now or hereafter in effect in any jurisdiction
      affecting any of such terms or the rights of the Buyer with respect thereto.
      The
      obligations of each Guarantor under this Guaranty are independent of the
      Guaranteed Obligations, and a separate action or actions may be brought and
      prosecuted against any Guarantor to enforce such obligations, irrespective
      of
      whether any action is brought against any Transaction Party or whether any
      Transaction Party is joined in any such action or actions. The liability of
      any
      Guarantor under this Guaranty shall be irrevocable, absolute and unconditional
      irrespective of, and each Guarantor hereby irrevocably waives, to the extent
      permitted by law, any defenses it may now or hereafter have in any way relating
      to, any or all of the following:

     

    (i) any
      lack
      of validity or enforceability of the Debentures or any agreement or instrument
      relating thereto;

     

    (ii) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Guaranteed Obligations, or any other amendment or waiver of or
      any
      consent to departure from the Debentures, including, without limitation, any
      increase in the Guaranteed Obligations resulting from the extension of
      additional credit to any Transaction Party or otherwise;

     

    (iii) any
      taking, exchange, release or non-perfection of any Collateral (as defined in
      the
      Security Documents), or any taking, release or amendment or waiver of or consent
      to departure from any other guaranty, for all or any of the Guaranteed
      Obligations;

     

    (iv) any
      change, restructuring or termination of the corporate, limited liability company
      or partnership structure or existence of any Transaction Party; or

     

    (v) any
      other
      circumstance (including any statute of limitations) or any existence of or
      reliance on any representation by the Buyer that might otherwise constitute
      a
      defense available to, or a discharge of, any Transaction Party or any other
      guarantor or surety.

     

    (b)
       This
      Guaranty shall continue to be effective or be reinstated, as the case may be,
      if
      at any time any payment of any of the Guaranteed Obligations is rescinded or
      must otherwise be returned by the Buyer or any other Person upon the insolvency,
      bankruptcy or reorganization of any Transaction Party or otherwise, all as
      though such payment had not been made.

     

    (c)
       This
      Guaranty is a continuing guaranty and shall (i) subject to Section 3(d) below,
      remain in full force and effect until the payment in full of the Guaranteed
      Obligations (other than inchoate indemnity obligations) and payment of all
      other
      amounts payable under this Guaranty (other than inchoate indemnity obligations)
      and shall not terminate for any reason prior to the payment in full of the
      Obligations or the Guaranteed Obligations, and (ii) be binding upon each
      Guarantor and its respective successors and assigns. For the sake of clarity,
      the payment or satisfaction in full or conversion in full of the Debentures
      shall be deemed as payment in full of the Guaranteed Obligations and shall
      immediately terminate this Guaranty automatically. This Guaranty shall inure
      to
      the benefit of and be enforceable by the Buyer
      and its
      successors, and permitted pledgees, transferees and assigns. Without limiting
      the generality of the foregoing sentence, the Buyer or any Buyer may pledge,
      assign or otherwise transfer all or any portion of its rights and obligations
      hereunder to any other Person, and such other Person shall thereupon become
      vested with all the benefits in respect thereof granted to such Buyer herein
      or
      otherwise.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)
       This
      Guaranty shall automatically terminate upon the satisfaction of the following
      condition: the Company has entered into a replacement loan to the A/R Loan
      on
      similar terms which are acceptable to the Buyer and the Company has received
      proceeds from such loan of at least $500,000. 

     

    SECTION
      4. Waivers.
      To the
      extent permitted by applicable law, each Guarantor hereby waives promptness,
      diligence, notice of acceptance and any other notice with respect to any of
      the
      Guaranteed Obligations and this Guaranty and any requirement that the Buyer
      exhaust any right or take any action against any Transaction Party or any other
      Person or any Collateral. The Guarantor acknowledges that it will receive direct
      and indirect benefits from the financing arrangements contemplated herein and
      that the waiver set forth in this Section 4 is knowingly made in contemplation
      of such benefits. The Guarantors hereby waive any right to revoke this Guaranty,
      and acknowledges that this Guaranty is continuing in nature and applies to
      all
      Guaranteed Obligations, whether existing now or in the future.

     

    SECTION
      5. Subrogation.
      No
      Guarantor may exercise any rights that it may now or hereafter acquire against
      any Transaction Party or any other guarantor that arise from the existence,
      payment, performance or enforcement of any Guarantor's obligations under this
      Guaranty, including, without limitation, any right of subrogation,
      reimbursement, exoneration, contribution or indemnification and any right to
      participate in any claim or remedy of the Buyer against any Transaction Party
      or
      any other guarantor or any Collateral, whether or not such claim, remedy or
      right arises in equity or under contract, statute or common law, including,
      without limitation, the right to take or receive from any Transaction Party
      or
      any other guarantor, directly or indirectly, in cash or other property or by
      set-off or in any other manner, payment or security solely on account of such
      claim, remedy or right, unless and until all of the Guaranteed Obligations
      (other than inchoate indemnity obligations) and all other amounts payable under
      this Guaranty (other than inchoate indemnity obligations) shall have
      indefeasibly been paid in full in cash. If any amount shall be paid to the
      Guarantor in violation of the immediately preceding sentence at any time prior
      to the later of the payment in full in cash of the Guaranteed Obligations and
      all other amounts payable under this Guaranty, such amount shall be held in
      trust for the benefit of the Buyer and shall forthwith be paid to the Buyer
      to
      be credited and applied to the Guaranteed Obligations and all other amounts
      payable under this Guaranty, whether matured or unmatured, in accordance with
      the terms of the Debenture, or to be held as Collateral for any Guaranteed
      Obligations or other amounts payable under this Guaranty thereafter arising.
      If
      (a) any Guarantor shall make payment to the Buyer of all or any part of the
      Guaranteed Obligations, and (b) all of the Guaranteed Obligations (other
      than inchoate indemnity obligations) and all other amounts payable under this
      Guaranty (other than inchoate indemnity obligations) shall indefeasibly be
      paid
      in full in cash, the Buyer will, at such Guarantor's request and expense,
      execute and deliver to such Guarantor appropriate documents, without recourse
      and without representation or warranty, necessary to evidence the transfer
      by
      subrogation to such Guarantor of an interest in the Guaranteed Obligations
      resulting from such payment by such Guarantor.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      6. Representations,
      Warranties and Covenants.
      

     

    (a) Each
      Guarantor hereby represents and warrants as of the date first written above
      as
      follows:

     

    (i) RESERVED.

     

    (ii) The
      execution, delivery and performance by the Guarantor of this Guaranty to which
      the Guarantor is a party (A) have been duly authorized by all necessary
      corporate, limited liability company or limited partnership action, if
      applicable, (B) do not and will not contravene its charter or by-laws, its
      limited liability company or operating agreement or its certificate of
      partnership or partnership agreement, as applicable, or any applicable law
      or
      any contractual restriction binding on the Guarantor or its properties (except
      where the contravention of such contractual restriction would not result in
      a
      Material Adverse Effect), (C) do not and will not result in or require the
      creation of any lien (other than pursuant to any Transaction Document) upon
      or
      with respect to any of its properties, and (D) do not and will not result in
      any
      default, noncompliance, suspension, revocation, impairment, forfeiture or
      nonrenewal of any material permit, license, authorization or approval applicable
      to it or its operations or any of its properties.

     

    (iii) No
      authorization or approval or other action by, and no notice to or filing with,
      any governmental authority is required in connection with the due execution,
      delivery and performance by the Guarantor of this Guaranty or any of the other
      Transaction Documents to which the Guarantor is a party (other than expressly
      provided for in any of the Transaction Documents).

     

    (iv) Each
      of
      this Guaranty and the other Transaction Documents to which the Guarantor is
      or
      will be a party, when delivered, will be, a legal, valid and binding obligation
      of the Guarantor, enforceable against the Guarantor in accordance with its
      terms, except as may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, fraudulent conveyance, suretyship or other similar
      laws and equitable principles (regardless of whether enforcement is sought
      in
      equity or at law). 

     

    (v) There
      is
      no pending or, to the knowledge of the Guarantor, threatened action, suit or
      proceeding against the Guarantor or to which any of the properties of the
      Guarantor is subject, before any court or other governmental authority or any
      arbitrator that (A) if adversely determined, could reasonably be expected to
      have a Material Adverse Effect or (B) relates to this Guaranty or any of the
      other Transaction Documents to which the Guarantor is a party or any transaction
      contemplated hereby or thereby. 

     

    (vi) The
      Guarantor (A) has read and understands the terms and conditions of the
      Securities Purchase Agreement and the other Transaction Documents, and (B)
      now
      has and will continue to have independent means of obtaining information
      concerning the affairs, financial condition and business of the Debtor and
      the
      other Transaction Parties, and has no need of, or right to obtain from any
      Buyer, any credit or other information concerning the affairs, financial
      condition or business of the Debtor or the other Transaction Parties that may
      come under the control of any Buyer.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      7. Right
      of Set-off.
      Upon
      the occurrence and during the continuance of any Event of Default, any
      Buyer may, and is hereby authorized to, at any time and from time to time,
      without notice to the Guarantors (any such notice being expressly waived by
      each
      Guarantor) and to the fullest extent permitted by law, set-off and apply any
      and
      all deposits (general or special, time or demand, provisional or final) at
      any
      time held and other indebtedness at any time owing by any Buyer to or for the
      credit or the account of any Guarantor against any and all obligations of the
      Guarantors now or hereafter existing under this Guaranty or any other
      Transaction Document, irrespective of whether or not any Buyer shall have made
      any demand under this Guaranty or any other Transaction Document and although
      such obligations may be contingent or unmatured. Each Buyer agrees to notify
      the
      relevant Guarantor promptly after any such set-off and application made by
      such
      Buyer, provided that the failure to give such notice shall not affect the
      validity of such set-off and application. The rights of any Buyer under this
      Section 7 are in addition to other rights and remedies (including, without
      limitation, other rights of set-off) which such Buyer may have under this
      Guaranty or any other Transaction Document in law or otherwise.

     

    SECTION
      8. Notices,
      Etc.
      All
      notices and other communications provided for hereunder shall be in writing
      and
      shall be mailed, telecopied or delivered, if to any Guarantor, to it at its
      address set forth on the signature page hereto, or if to the Buyer or any Buyer,
      to it at its respective address set forth in the Securities Purchase Agreement;
      or as to either such Person at such other address as shall be designated by
      such
      Person in a written notice to such other Person complying as to delivery with
      the terms of this Section 8. All such notices and other communications shall
      be
      effective (i) if mailed (by certified mail, postage prepaid and return receipt
      requested), when received or three Business Days after deposited in the mails,
      whichever occurs first; (ii) if telecopied, when transmitted and confirmation
      is
      received, provided same is on a Business Day and, if not, on the next Business
      Day; or (iii) if delivered by hand, upon delivery, provided same is on a
      Business Day and, if not, on the next Business Day.

     

    SECTION
      9. Governing
      Law.
      This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New Jersey without regard to the principles of conflict of laws.
      The parties further agree that any action between them shall be heard in Hudson
      County, New Jersey, and expressly consent to the jurisdiction and venue of
      the
      Superior Court of New Jersey, sitting in Hudson County and the United States
      District Court for the District of New Jersey sitting in Newark, New Jersey
      for
      the adjudication of any civil action asserted pursuant to this
      Paragraph.

     

    SECTION
      10. Miscellaneous.
      

     

    (a)
       Each
      Guarantor will make each payment hereunder in lawful money of the United States
      of America and in immediately available funds to each Buyer, at such address
      specified by such Buyer from time to time by notice to the
      Guarantors.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)
       No
      amendment or waiver of any provision of this Guaranty and no consent to any
      departure by any Guarantor therefrom shall in any event be effective unless
      the
      same shall be in writing and signed by each Guarantor and each Buyer, and then
      such waiver or consent shall be effective only in the specific instance and
      for
      the specific purpose for which given.

     

    (c)
       No
      failure on the part of any Buyer to exercise, and no delay in exercising, any
      right hereunder or under any other Transaction Document shall operate as a
      waiver thereof, nor shall any single or partial exercise of any right hereunder
      or under any Transaction Document preclude any other or further exercise thereof
      or the exercise of any other right. The rights and remedies of the Buyer and
      the
      Buyer provided herein and in the other Transaction Documents are cumulative
      and
      are in addition to, and not exclusive of, any rights or remedies provided by
      law. The rights of the Buyer and the Buyer under any Transaction Document
      against any party thereto are not conditional or contingent on any attempt
      by
      the Buyer or any Buyer to exercise any of their respective rights under any
      other Transaction Document against such party or against any other
      Person.

     

    (d)
       Any
      provision of this Guaranty that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining portions
      hereof or affecting the validity or enforceability of such provision in any
      other jurisdiction.

     

    (e)
       This
      Guaranty shall (i) be binding on each Guarantor and its respective successors
      and assigns, and (ii) inure, together with all rights and remedies of the Buyer
      hereunder, to the benefit of the Buyer, the Buyer and their respective
      successors, transferees and assigns. None of the rights or obligations of any
      Guarantor hereunder may be assigned or otherwise transferred without the prior
      written consent of each Buyer.

     

    (f)
       This
      Guaranty reflects the entire understanding of the transaction contemplated
      hereby and shall not be contradicted or qualified by any other agreement, oral
      or written, entered into before the date hereof.

     

    (g)
       Section
      headings herein are included for convenience of reference only and shall not
      constitute a part of this Agreement for any other purpose.

     

    SECTION
      11. WAIVER
      OF JURY TRIAL, ETC.
      EACH
      GUARANTOR HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
      OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS GUARANTY, OR UNDER ANY
      AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED
      OR
      WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH, AND
      AGREES THAT ANY SUCH ACTION, PROCEEDING OR COUNTERCLAIM SHALL BE TRIED BEFORE
      A
      COURT AND NOT BEFORE A JURY. EACH GUARANTOR CERTIFIES THAT NO OFFICER,
      REPRESENTATIVE, AGENT OR ATTORNEY OF THE BUYER HAS REPRESENTED, EXPRESSLY OR
      OTHERWISE, THAT ANY BUYER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING
      OR
      COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH GUARANTOR HEREBY
      ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BUYER
      ENTERING
      INTO THIS AGREEMENT.

     

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      each
      Guarantor has caused this Guaranty to be executed by its respective duly
      authorized officer, as of the date first above written.

     

    
      	
              Guarantor
                

            
	 
	
              By: 

            	
              /s/
                Michael C. Shores

            
	
              Name:
                Michael C. Shores

            
	 
	
              Address:
                

            
	
              c/o
                TXP Corporation

            
	
              1299
                Commerce Drive

            
	
              Richardson,
                Texas 75081

            
	
              Attention:
                Michael C. Shores

            
	
              Telephone:
                (214) 575-9300

            
	
              Facsimile:
                (214) 575-9314

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]