Document:

Exhibit 10.1
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                             SUBSCRIPTION AGREEMENT

Basic Empire Corporation
211 West Wall Street
Midland, Texas 79701-4556

Ladies and Gentlemen:

         The   undersigned   subscriber   ("Subscriber")   hereby  tenders  this
Subscription  Agreement (this "Agreement") in accordance with and subject to the
terms and conditions set forth herein:

1.       Subscription.

         1.1 Subscriber  hereby subscribes for and agrees to purchase the number
of shares  (the  "Shares")  of  common  shares,  $.001 par value per share  (the
"Common  Shares"),  of  Basic  Empire  Corporation,  a Nevada  corporation  (the
"Company"),  indicated on the  signature  page  attached  hereto at the purchase
price set forth on such  signature page (the  "Purchase  Price"),  such Purchase
Price being equal to the product of (i) the number of Common  Shares  subscribed
for by the Subscriber and (ii) current fair market value of the shares of Common
Shares.  Subscriber  has made or will make payment by wire  transfer of funds in
accordance with instructions from the Company in the full amount of the Purchase
Price of the Common Shares for which Subscriber is subscribing (the "Payment").

         1.2 This  Agreement  is part of an isolated  offering of Common  Shares
being  conducted  by the  Company  in  reliance  upon  the  exemption  from  the
registration  requirements  of the  Securities  Act of 1933,  as  amended  ( the
"Act"), afforded by Section 4(2) thereunder.

         1.3 The Company will hold closing of the offering  (the  "Closing")  at
any mutually  agreeable time,  hereinafter  sometimes  referred to as a "Closing
Date."  Upon  receipt by the  Company of the  requisite  payment  for all Common
Shares to be purchased by the Subscriber, the Common Shares so purchased will be
issued in the name of the  Subscriber,  and the name of the  Subscriber  will be
registered  on the stock  transfer  books of the Company as the record  owner of
such Common Shares. The Company will promptly thereafter issue to the Subscriber
participating  in such  closing a stock  certificate  for the  Common  Shares so
purchased.

         1.4 Subscriber  hereby agrees to be bound hereby upon (i) execution and
delivery to the Company of the signature page to this Agreement and (ii) written
acceptance  on the  Closing  Date by the Company of  Subscriber's  subscription,
which shall be confirmed by faxing to the  Subscriber the signature page to this
Agreement that has been executed by the Company (the "Subscription").

2.       Offering Material.

         2.1  Subscriber  represents  and warrants  that it is in receipt of and
that  it has  carefully  read  all  documents  filed  by the  Company  with  the
Commission prior to the date of this Agreement.

         Said  documents   shall  be  referred  to  herein  as  the  "Disclosure
Documents."

3.       Conditions to Subscriber's Obligations.

         3.1 The obligation of Subscriber to close the transaction  contemplated
by this Agreement (the "Transaction") is subject to the satisfaction on or prior
to the Closing  Date of the  conditions  set forth in  Sections  3.2 through 3.5
hereof and the satisfaction of Section 3.6 on and as of the Closing Date.

         3.2 The Company shall have  executed  this  Agreement and delivered the
same to the Subscriber.

         3.3  The  Board  of  Directors  of  the  Company   shall  have  adopted
resolutions consistent with Section 4.1(e) below in a form reasonably acceptable
to the Subscriber.

         3.4  Subscriber  shall  have  received  copies  of  all  documents  and
information  which it may  have  reasonably  requested  in  connection  with the
Offering.

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         3.5 No stop order or  suspension  of trading shall have been imposed by
the Securities and Exchange  Commission (the "SEC"),  or any other  governmental
regulatory body with respect to public trading in Common Shares of the Company.

         3.6 The representations and warranties of the Company shall be true and
correct on and as of the Closing Date as though made on and as of such date.

4.       Representations and Warranties; Covenants; Survival.

         4.1 The Company represents and warrants to Subscriber that, at the date
of this Agreement and at the Closing Date on which  Subscriber  purchases Common
Shares:

                  (a) The  Company has the full power and  authority  to execute
and deliver  this  Agreement  and to perform  its  obligations  hereunder.  This
Agreement  constitutes the valid and legally binding  obligation of the Company,
enforceable in accordance  with its terms.  The Company need not give any notice
to, make any filings with, or obtain any authorization,  consent, or approval of
any government or  governmental  agency in order to consummate the  transactions
contemplated by this Agreement.

                  (b) The Company and each of its  subsidiaries are corporations
duly  organized,  validly  existing and in good standing under the laws of their
states of  incorporation,  with all requisite  corporate  power and authority to
carry on the business in which they are engaged and to own the  properties  they
own,  and the  Company  has all  requisite  power and  authority  to execute and
deliver this Agreement and to consummate the transactions  contemplated  hereby.
The Company and each of its  subsidiaries  are duly qualified and licensed to do
business and are in good standing in all jurisdictions where the nature of their
business  makes such  qualification  necessary,  except  where the failure to be
qualified or licensed  would not have a material  adverse effect on the business
of the Company and its subsidiaries, taken as a whole.

                  (c) Except as set forth in the Company's filings with the SEC,
there are no legal  actions  or  administrative  proceedings  or  investigations
instituted,  or to the best  knowledge  of the Company  threatened,  against the
Company,  that could reasonably be expected to have a material adverse effect on
the Company or any subsidiary,  any of the Common Shares, or the business of the
Company and its subsidiaries, or which concerns the transactions contemplated by
this Agreement.

                  (d) The Company, by appropriate and required corporate action,
has, or will have prior to the Closing,  duly  authorized  the execution of this
Agreement and the issuance and delivery of the Common Shares.  The Common Shares
are not subject to preemptive or other rights of any stockholders of the Company
and  when  issued  in  accordance  with  the  terms  of this  Agreement  and the
Certificate of Incorporation of the Company, as amended and currently in effect,
the Common Shares will be validly issued,  fully paid and nonassessable and free
and clear of all  pledges,  liens and  encumbrances.  The issuance of the Common
Shares hereunder will not trigger any outstanding antidilution rights.

                  (e)  Performance  of this  Agreement and  compliance  with the
provisions hereof will not violate any provision of any applicable law or of the
Certificate  of  Incorporation  or  Bylaws  of  the  Company,  or of  any of its
subsidiaries,  and, will not conflict with or result in any breach of any of the
terms,  conditions or provisions of, or constitute a default under, or result in
the creation or imposition of any lien,  charge or encumbrance  upon, any of the
properties or assets of the Company, or of any of its subsidiaries,  pursuant to
the  terms of any  indenture,  mortgage,  deed of trust  or other  agreement  or
instrument binding upon the Company, or any of its subsidiaries, other than such
breaches,  defaults or liens which would not have a material  adverse  effect on
the Company and its subsidiaries taken as a whole. The Company is not in default
under any provision of its charter or by-laws or other organizational  documents
or under any  provision of any  agreement or other  instrument  to which it is a
party  or by  which it is  bound  or of any  law,  governmental  order,  rule or
regulation  so as to affect  adversely  in any  material  manner its business or
assets or its condition, financial or otherwise.

                  (f) The Disclosure  Documents,  taken together, do not contain
any  untrue  statement  of a  material  fact or omit to  state a  material  fact
required  to be stated  therein to make the  statements  contained  therein  not
misleading.

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                  (g) The  Company has  provided  Subscriber  with all  material
public  information  in  connection  with the  business  of the  Company and the
transactions  contemplated by this Agreement,  and no representation or warranty
made, nor any document,  statement, or financial statement prepared or furnished
by the Company in connection  herewith contains any untrue statement of material
fact,  or omits to state a material  fact  necessary to make the  statements  or
facts contained herein or therein not misleading.

                  (h) This Agreement has been duly executed and delivered by the
Company  and  constitutes  a  valid  and  binding  obligation  of  the  Company,
enforceable against the Company in accordance with its terms.

                  (i) No registration, authorization, approval, qualification or
consent  of any  court or  governmental  authority  or agency  is  necessary  in
connection  with the execution  and delivery of this  Agreement or the offering,
issuance or sale of the Common Shares under this Agreement.

                  (j) The  Company is not now,  and after the sale of the Common
Shares under this Agreement and under all other  agreements and the  application
of the net  proceeds  from  the  sale  of the  Common  Shares  will  not be,  an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

                  (k) The Company has filed all material tax returns required to
be filed, which returns are true and correct in all material  respects,  and the
Company is not in default in the payment of any taxes,  including  penalties and
interest,  assessments,  fees and other charges,  shown thereon due or otherwise
assessed,  other than those being contested in good faith and for which adequate
reserves have been provided or those currently  payable  without  interest which
were payable pursuant to said returns or any assessments with respect thereto.

                  (l) The Company has not taken any action  outside the ordinary
course of business  designed to or that might reasonably be expected to cause or
result in  stabilization  or  manipulation  of the price of the Common Shares to
facilitate   the  sale  or  resale  of  the  Common  Shares  in  any  manner  in
contravention of applicable securities laws.

                  (m)   Subject   to   the   accuracy   of   the    Subscriber's
representations and warranties in Section 7 of this Agreement,  the offer, sale,
and issuance of the Common Shares in conformity with the terms of this Agreement
constitute  transactions exempt from the registration  requirements of Section 5
of the Act and from the registration or  qualification  requirements of the laws
of any applicable state or United States jurisdiction.

                  (n) 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 in any  security  or  solicited  any offers to buy any  security  under
circumstances  that would require  registration  under the Securities Act of the
issuance  of the Shares to the  Subscriber.  The  issuance  of the Shares to the
Subscriber  will not be  integrated  with any other  issuance  of the  Company's
securities  (past,  current or future) for purposes of the  Securities  Act. The
Company will not make any offers or sales of any security (other than the Common
Shares) that would cause the offering of the Common Shares to be integrated with
any other offering of securities by the Company for purposes of any registration
requirement under the Securities Act or any applicable rules of Nasdaq.

                  (o) The Company is in material  compliance with all applicable
securities (or "Blue Sky") laws of the states of the United States in connection
with the issuance and sale of the Common Shares to Subscriber.

                  (p) The Company shall use all commercially  reasonable efforts
to keep the Common Shares quoted on the OTC Bulletin Board.

5.       Transfer and Registration Rights.

         5.1 Subscriber  acknowledges that it is acquiring the Common Shares for
its own  account and for the  purpose of  investment  and not with a view to any
distribution  or resale thereof within the meaning of the Act and any applicable
state or other securities laws ("State Acts"). Subscriber further agrees that it
will not sell, assign, transfer or otherwise dispose of any of the Common Shares
in  violation  of the  Act or  State  Acts  and  acknowledges  that,  in  taking
unregistered  Common Shares, it must continue to bear economic risk in regard to
its  investment  for an indefinite  period of time because of the fact that such
Common Shares have not been  registered  under the Act or State Acts and further

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realizes that such Common Shares cannot be sold unless  subsequently  registered
under  the  Act and  State  Acts  or an  exemption  from  such  registration  is
available.  Subscriber  further  recognizes that the Company is not assuming any
obligation to register such Common Shares.  Subscriber  also  acknowledges  that
appropriate legends reflecting the status of the Common Shares under the Act and
State Acts may be placed on the face of the  certificates for such Common Shares
at the time of their transfer and delivery to the holder thereof. This Agreement
is made with Subscriber in reliance upon Subscriber's above representations.

         5.2  Mandatory  Registration.  Upon  receipt of  written  demand by the
Subscriber,  the Company shall prepare,  and, as soon as  practicable  but in no
event later than 60 calendar  days after the date of such notice,  file with the
SEC a  Registration  Statement or  Registration  Statements (as is necessary) on
Form S-3 (or if such form is  unavailable,  such other form as is available  for
registration) covering the resale of all of the Shares. The initial Registration
Statement  prepared  pursuant  hereto  shall  register  for resale at least that
number of Company  common  stock  shares equal to the number of Shares as of the
date  immediately  preceding  the date the  Registration  Statement is initially
filed  with the SEC,  subject  to  adjustment.  The  Company  shall use its best
efforts to have the Registration Statement declared effective by the SEC as soon
as  practicable,  but in no event  later than 120  calendar  days after the date
notice is received.

5.3      Piggy Back Registration Rights.

         (a) If the Company  decides,  including  as  required  under any demand
registration rights agreement, to register any of its common stock or securities
convertible  into or exchangeable for common stock under the Securities Act on a
form which is suitable for an offering for cash or shares of the Company held by
third  parties and which is not a  registration  solely to implement an employee
benefit  plan, a  registration  statement on Form S-4 (or  successor  form) or a
transaction  to  which  Rule  145 or  any  other  similar  rule  of  the  SEC is
applicable,  the Company will promptly give written  notice to the Subscriber of
its intention to effect such a registration.  Subject to Section 4(b) below, the
Company  shall  include  all of the Shares  that the  Subscriber  requests to be
included in such a  registration  by a written  notice  delivered to the Company
within fifteen (15) days after the notice given by the Company.

         (b) If the registration, as described in Section 5.3(a) above, involves
an underwritten offering, the Company will not be required to register Shares in
excess of the amount that the principal underwriter reasonably and in good faith
recommends may be included in such offering (a "Cutback"), which recommendation,
and  supporting  reasoning,  shall be  delivered  to the  Subscriber.  If such a
Cutback  occurs,  the number of shares  that are  entitled  to  included  in the
registration and underwriting  shall be allocated in the following  manner:  (i)
first,  to the  Company  for any  securities  it  proposes  to sell  for its own
account,  (ii) second, to the Subscriber requiring such registration,  and (iii)
third,  to other  holders of stock of the Company  requesting  inclusion  in the
registration,  pro rata among the respective holders thereof on the basis of the
number  of  shares  for  which  each  such   requesting   holder  has  requested
registration.

         5.4 The Common  Shares  issued  pursuant to this  Agreement  may not be
transferred  except in a  transaction  which is in  compliance  with the Act and
State Acts.

6.       Closing.

         6.1 The Closing of the sale of the Common  Shares to  Subscriber  shall
take  place at the  offices  of the  Company  at such  time as the  Company  and
Subscriber shall mutually agree.

7.       Subscriber Representations.  Subscriber hereby represents, warrants and
acknowledges and agrees with the Company as follows:

         7.1  Subscriber  has been  furnished  with and has  carefully  read the
Disclosure Documents as set forth in Section 2.1 hereto and is familiar with the
terms of the Offering.  With respect to individual or partnership  tax and other
economic considerations  involved in this investment,  Subscriber is not relying
on the  Company  (or  any  agent  or  representative  of  any  of the  Company).
Subscriber has carefully  considered and has, to the extent Subscriber  believes
such discussion  necessary,  discussed with Subscriber's  legal, tax, accounting
and financial advisers the suitability of an investment in the Common Shares for
Subscriber's particular tax and financial situation.

         7.2 Subscriber has had an  opportunity  to inspect  relevant  documents
relating  to  the  organization  and  operations  of  the  Company.   Subscriber
acknowledges that all documents, records and books pertaining to this investment
which  Subscriber  has  requested  have been made  available  for  inspection by
Subscriber and Subscriber's attorney, accountant or other adviser(s).

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         7.3 Subscriber and/or Subscriber's advisor(s) has/have had a reasonable
opportunity  to ask questions of and receive  answers and to request  additional
relevant  information  from a person or persons  acting on behalf of the Company
concerning the offering.

         7.4 Subscriber is not  subscribing for the Common Shares as a result of
or  subsequent  to any  advertisement,  article,  notice or other  communication
published  in any  newspaper,  magazine  or  similar  media  or  broadcast  over
television or radio or presented at any seminar.

         7.5 Subscriber is an "accredited  investor," within the meaning of Rule
501(a) of Regulation D under the Securities Act ("Regulation D"). Subscriber, by
reason of  Subscriber's  business or  financial  experience  or the  business or
financial experience of Subscriber's  professional advisers who are unaffiliated
with and who are not  compensated  by the Company or any  affiliate of either of
them, directly or indirectly,  can be reasonably assumed to have the capacity to
protect   Subscriber's   own  interests  in  connection  with  the  transaction.
Subscriber  further  acknowledges that Subscriber has read the written materials
provided by the Company.

         7.6 Subscriber has adequate means of providing for Subscriber's current
financial  needs and  contingencies,  is able to bear the  substantial  economic
risks of an investment  in the Common  Shares for an indefinite  period of time,
has no need for liquidity in such  investment  and, at the present  time,  could
afford a complete loss of such investment.

         7.7 Subscriber has such knowledge and experience in financial,  tax and
business  matters  so as to  enable  Subscriber  to  use  the  information  made
available to Subscriber  in connection  with the offering to evaluate the merits
and  risks  of an  investment  in the  Common  Shares  and to make  an  informed
investment decision with respect thereto.

         7.8 Subscriber  acknowledges  that the Common Shares herein  subscribed
for have not been  registered  under the Act or under any State Act.  Subscriber
understands further that in absence of an effective Registration Statement,  the
Common Shares can only be sold  pursuant to some  exemption  from  registration,
such as Rule 144 of the Act, which requires,  among other  conditions,  that the
Common Shares must be held for a minimum of one (1) year.

         7.9 Subscriber recognizes that investment in the Common Shares involves
substantial risks. Subscriber acknowledges that Subscriber has reviewed the risk
factors   identified  within  the  Disclosure   Documents.   Subscriber  further
recognizes  that no Federal or state  agencies have passed upon this offering of
the Common  Shares or made any finding or  determination  as to the  fairness of
this investment.

         7.10 Subscriber  acknowledges  that each  certificate  representing the
Common Shares shall contain a legend substantially in the following form:

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
         ACT OF 1933 (THE  "SECURITIES  ACT") OR UNDER APPLICABLE STATE
         SECURITIES LAWS AND MAY NOT BE SOLD,  TRANSFERRED OR OTHERWISE
         DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY
         APPLICABLE  STATE  SECURITIES  LAWS OR PURSUANT  TO  AVAILABLE
         EXEMPTIONS  FROM SUCH  REGISTRATION,  PROVIDED THAT THE SELLER
         DELIVERS TO THE COMPANY AN OPINION OF COUNSEL  (WHICH  OPINION
         AND  COUNSEL  ARE  REASONABLY  SATISFACTORY  TO  THE  COMPANY)
         CONFIRMING  THE  AVAILABILITY  OF  SUCH  EXEMPTION.  INVESTORS
         SHOULD  BE  AWARE  THAT  THEY  MAY BE  REQUIRED  TO  BEAR  THE
         FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
         TIME.

         7.11 If this  Agreement  is  executed  and  delivered  on  behalf  of a
partnership,  corporation,  trust or estate: (i) such partnership,  corporation,
trust or  estate  has the full  legal  right and  power  and all  authority  and
approval  required  (a) to execute  and  deliver,  or  authorize  execution  and
delivery of, this Agreement and all other instruments  executed and delivered by
or on behalf of such  partnership,  corporation,  trust or estate in  connection
with the purchase of the Common Shares,  (b) to delegate authority pursuant to a
power of attorney  and (c) to purchase  and hold such  Common  Shares;  (ii) the
signature of the party signing on behalf of such partnership, corporation, trust
or estate is binding upon such partnership,  corporation,  trust or estate;  and

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(iii)  such  partnership,  corporation  or  trust  has not been  formed  for the
specific purpose of acquiring the Common Shares, unless each beneficial owner of
such  entity is  qualified  as an  "accredited  investor"  within the meaning of
Regulation  D and  has  submitted  information  substantiating  such  individual
qualification.

         7.12 If Subscriber is a retirement  plan or is investing on behalf of a
retirement plan,  Subscriber  acknowledges  that investment in the Common Shares
poses risks in addition to those  associated with other  investments,  including
the  inability to use losses  generated by an investment in the Common Shares to
offset taxable income.

8.       Understandings.

         Subscriber  understands,  acknowledges  and agrees  with the Company as
follows:

         8.1  Subscriber  hereby  acknowledges  and agrees  that upon  notice of
acceptance from the Company pursuant to Section 1.4, the Subscription  hereunder
is irrevocable by Subscriber, that, except as required by law, Subscriber is not
entitled to cancel,  terminate  or revoke this  Agreement or any  agreements  of
Subscriber  hereunder  and that  this  Subscription  Agreement  and  such  other
agreements  shall survive the death or  disability  of  Subscriber  and shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs,  executors,   administrators,   successors,   legal  representatives  and
permitted  assigns.  If Subscriber is more than one person,  the  obligations of
Subscriber   hereunder   shall  be  joint  and  several   and  the   agreements,
representations, warranties and acknowledgments herein contained shall be deemed
to be made  by and be  binding  upon  each  such  person  and his or her  heirs,
executors,  administrators,  successors,  legal  representatives  and  permitted
assigns.

         8.2 No federal or state agency has made any  findings or  determination
as to the  fairness  of the  terms  of  this  offering  for  investment  nor any
recommendations or endorsement of the Common Shares.

         8.3 The Offering is intended to be exempt from  registration  under the
Securities  Act by  virtue  of  Section  4(2)  of the  Securities  Act  and  the
provisions of Rule 506 of Regulation D thereunder

         8.4 It is  understood  that in order not to jeopardize  the  offering's
exempt status under  Section 4(2) of the  Securities  Act and  Regulation D, any
transferee  may, at a minimum,  be required to fulfill the investor  suitability
requirements thereunder.

         8.5 No person or entity acting on behalf,  or under the  authority,  of
Subscriber  is or will be entitled to any  broker's,  finder's or similar fee or
commission in connection with this Subscription.

         8.6  Subscriber  acknowledges  that the  information  furnished in this
Agreement by the Company to Subscriber  or its advisers in  connection  with the
Offering,  is  confidential  and  nonpublic  and  agrees  that all such  written
information  which is material and not yet publicly  disseminated by the Company
shall be kept in  confidence by  Subscriber  and neither used by Subscriber  for
Subscriber's personal benefit (other than in connection with this Subscription),
nor disclosed to any third party,  except  Subscriber's legal and other advisers
who shall be advised of the  confidential  nature of such  information,  for any
reason;  provided,  however,  that this  obligation  shall not apply to any such
information  that (i) is part of the public  knowledge or literature and readily
accessible  at the date hereof,  (ii) becomes a part of the public  knowledge or
literature and readily accessible by publication (except as a result of a breach
of this provision) or (iii) is received from third parties (except third parties
who disclose such information in violation of any confidentiality  agreements or
obligations,  including,  without limitation, any subscription agreement entered
into with the  Company).  The  representations,  warranties  and  agreements  of
Subscriber and the Company  contained herein and in any other writing  delivered
in  connection  with the  offering  shall be true and  correct  in all  material
respects on and as of the Closing Date of such Subscription as if made on and as
of the date the Company  executes this Agreement and shall survive the execution
and delivery of this Agreement and the purchase of the Common Shares.

         8.7 IN MAKING AN INVESTMENT  DECISION,  SUBSCRIBER MUST RELY ON ITS OWN
EXAMINATION  OF THE COMPANY AND THE TERMS OF THE OFFERING,  INCLUDING THE MERITS
AND RISKS INVOLVED.  THE COMMON SHARES HAVE NOT BEEN  RECOMMENDED BY ANY FEDERAL
OR STATE SECURITIES  COMMISSION OR REGULATORY  AUTHORITY.  ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

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9.       Miscellaneous.

         9.1 Except as set forth  elsewhere  herein,  any notice or demand to be
given or served in connection  herewith shall be deemed to be sufficiently given
or served for all purposes by being sent as registered or certified mail, return
receipt requested,  postage prepaid, in the case of the Company, addressed to it
at the address set forth above.  As to the  Subscriber  to the address set forth
below:

                          Halter Financial Group, Inc.
                          12890 Hilltop Road
                          Argyle, Texas  76226
                          Attn: Timothy P. Halter, President

         9.2 This  Agreement  shall be enforced,  governed and  construed in all
respects in accordance with the laws of the State of Texas, and shall be binding
upon and  inure to the  benefit  of the  parties  hereto  and  their  respective
successors  and  assigns.  If any  provision  of this  Agreement  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 to be modified to conform  with such statute or rule of law. Any
provision hereof that may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision hereof.

         9.3 In any action, proceeding or counterclaim brought to enforce any of
the  provisions of this Agreement or to recover  damages,  costs and expenses in
connection  with any breach of the  Agreement,  the  prevailing  party  shall be
entitled  to be  reimbursed  by the  opposing  party  for all of the  prevailing
party's  reasonable  outside  attorneys'  fees,  costs and  other  out-of-pocket
expenses incurred in connection with such action, proceeding or counterclaim.

         9.4 This Agreement  constitutes the entire  agreement among the parties
hereto with respect to the subject  matter  hereof.  There are no  restrictions,
promises,  warranties or  undertakings,  other than those set forth herein.  The
Company acknowledges that all material facts upon which it has relied in forming
its decision to enter into this  Agreement  are  expressly  set forth herein and
further  acknowledges  that the  Subscriber  has not  made any  representations,
express or implied, which are not set expressly set forth herein. This Agreement
supercedes all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof.

         9.5 The Company shall  indemnify,  defend and hold harmless  Subscriber
and each of its agents, partners, members, officers, directors, representatives,
or affiliates  (collectively,  the "Subscriber Indemnities") against any and all
losses, liabilities,  claims and expenses,  including reasonable attorneys' fees
("Losses"),  sustained by Subscriber Indemnities resulting from, arising out of,
or connected with any material  inaccuracy in, breach of, or  nonfulfillment  of
any representation,  warranty, covenant or agreement made by or other obligation
of the Company  contained  in this  Agreement  or in any  document  delivered in
connection herewith.

         9.6 The Company shall not issue any public  statement or press release,
or  otherwise  disclose  in any manner the  identity of the  Subscriber  or that
Subscriber has purchased the Common Shares, without the prior written consent of
the Subscriber, except as may be required by applicable law.

10.      Signature. The signature page of this Agreement is contained as part of
the applicable Subscription Package, entitled "Signature Page."

                                       7
<PAGE>

                   SUBSCRIPTION AGREEMENT GENERAL INSTRUCTIONS
                   -------------------------------------------

General Instructions

         These  Subscription   Documents  contain  all  documents  necessary  to
subscribe for Common Shares, $.001 par value ("Common Shares"),  of Basic Empire
Corporation, a Nevada corporation (the "Company").

         You may subscribe for Common Shares by completing the Subscription
Agreement in the following manner:

         1. On line (a) of the signature  page state the number of Common Shares
you wish to purchase.

         2. On line (b) of the signature page state the total cost of the Common
Shares you wish to purchase.  To obtain the cost,  multiply the number of Common
Shares you desire to purchase by the  purchase  price per Common Share set forth
therein.

         3. Sign and state your address, telephone number and social security or
other taxpayer identification number on the lines provided on the signature page
to the Subscription  Agreement and deliver the completed  Subscription Agreement
with payment of the entire purchase price of the Common Shares subscribed for as
set forth below. Payment should be made in United States Dollars:

The Subscription Agreement Signature Page must be completed and signed. Send all
documents to:

                  Halter Financial Group, Inc.
                  12890 Hilltop Road
                  Argyle, Texas  76226
                  Attention:  Timothy P. Halter, President
                  Facsimile No.:  940-455-7337

         THE COMPLETED SUBSCRIPTION AGREEMENT SHOULD BE RETURNED IN ITS ENTIRETY
TO THE COMPANY ABOVE.

Acceptance of Delivery

         All questions as to the validity,  form, eligibility (including time of
receipt)  and  acceptance  of  the  completed  Subscription  Agreement  will  be
reasonably determined by the Company. The Company reserves the absolute right to
reject  the  completed  Subscription   Agreement,   in  its  sole  and  absolute
discretion.  The Company also reserves the right to waive any irregularities in,
or  conditions  of, the  submission  of completed  Subscription  Agreement.  The
Company shall be under no duty to give any  notification  of  irregularities  in
connection  with any  attempted  subscription  for  Common  Shares  or incur any
liability for failure to give such notification.  Until such irregularities have
been cured or waived,  no subscription for Common Shares shall be deemed to have
been made.  If the  Subscription  Agreement is not properly  completed and as to
which  defects  have not been cured or waived will be returned by the Company to
the Subscriber as soon as practicable.

                                       8
<PAGE>

                      SUBSCRIPTION AGREEMENT SIGNATURE PAGE

         The  undersigned  investor  hereby  certifies  that  he or she  (i) has
received and relied solely upon information provided by the Company, (ii) agrees
to all the terms and conditions of this Subscription Agreement,  (iii) meets the
suitability  standards  set forth in this  Subscription  Agreement and (iv) is a
resident of the state or foreign jurisdiction indicated below.

(a) The undersigned subscribes for 714,285 Common Shares.
(b) The total  cost of the  Common  Shares  subscribed  for,  at $.28 per Common
Share, is $200,000 (the "Purchase Price").

Halter Financial Group, Inc.     If other than Individual check one and indicate
-----------------------------    capacity of signatory under the signature:

                                 [_] Trust
                                 [_] Estate
-----------------------------    [_] Uniform Gifts to Minors Act of State of
Name of Subscriber (Print)       [_] Attorney-in-fact                        ---
                                 [X] Corporation
                                 [_] Other
                                          --------------------------------------

-----------------------------    If Joint Ownership, check one:
Name of Joint Subscriber
(if any) (Print)
                                 [_] Joint Tenants with Right of Survivorship
 /s/ Timothy P. Halter           [_] Tenants in Common
-----------------------------    [_] Tenants by Entirety
Signature of Subscriber          [_] Community Property

-----------------------------
Signature of Joint Subscriber
(if any)

President
-----------------------------
Capacity of Signatory
(if applicable)

-----------------------------    Backup Withholding Statement:
Social Security or               Please check this box only if the investor
Taxpayer Identification Number   is subject to:

                                 [_] backup withholding.
12890 Hilltop Road
-----------------------------
Address                          Foreign Person:
                                 Please check this box only if
                                 the investor is a:

Argyle     TX        76266       [_] nonresident  alien,  foreign  corporation,
-----------------------------        foreign  partnership,   foreign  trust  or
City      State     Zip Code         foreign estate.

Telephone (   )
Telecopy No. (940) 455-7337

The investor agrees to the terms of this Subscription Agreement and, as required
by the  Regulations  pursuant to the  Internal  Revenue  Code,  certifies  under
penalty  of  perjury   that  (1)  the  Social   Security   Number  or   Taxpayer
Identification Number and address provided above is correct, (2) the investor is
not subject to backup withholding  (unless the Backup Withholding  Statement box
is checked) either because he has not been notified that he is subject to backup
withholding  as a result of a failure to report all  interest  or  dividends  or
because  the  Internal  Revenue  Service has  notified  him that he is no longer
subject to backup  withholding  and (3) the investor  (unless the Foreign Person
box above is checked) is not a nonresident alien, foreign  partnership,  foreign
trust or foreign estate.

         THE SUBSCRIPTION FOR 714,285 COMMON SHARES OF BASIC EMPIRE  CORPORATION
BY THE ABOVE NAMED SUBSCRIBER(S) IS ACCEPTED AS OF MAY 25, 2004.

                                     BASIC EMPIRE CORPORATION

                                     By: /s/ Glenn A. Little
                                        ----------------------------------------
                                        Glenn A. Little, Chief Executive Officer

                                       9WARRANT AGREEMENT

THE SECURITIES  REPRESENTED BY THIS WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS. THE
SECURITIES  HAVE BEEN ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  ASSIGNED  IN THE  ABSENCE OF AN  EFFECTIVE  REGISTRATION
STATEMENT FOR THE  SECURITIES  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"1933 ACT"), OR APPLICABLE  STATE  SECURITIES  LAWS, OR AN OPINION OF COUNSEL IN
FORM,  REASONABLY  ACCEPTABLE  TO THE ISSUER THAT  REGISTRATION  IS NOT REQUIRED
UNDER THE 1933 ACT OR UNLESS SOLD  PURSUANT TO RULE 144 UNDER SAID ACT. ANY SUCH
OFFER,  SALE,  ASSIGNMENT OR TRANSFER MUST ALSO COMPLY WITH THE APPLICABLE STATE
SECURITIES LAWS.

                            BASIC EMPIRE CORPORATION

               WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK

Date of Issuance:  May 26, 2004                        Number of Shares:  89,285

         Basic Empire Corporation, a Nevada corporation (the "Company"),  hereby
certifies  that,  for Ten  United  States  Dollars  ($10.00)  and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged,  Timothy P. Halter,  the registered holder hereof or his permitted
assigns, is entitled, subject to the terms set forth below, to purchase from the
Company  upon  surrender of this  Warrant,  at any time or times on or after the
date of issuance,  but not after 5:00 P.M.  Central Time on the Expiration  Date
(as defined herein) 89,285 fully paid  nonassessable  shares of Common Stock (as
defined herein) of the Company (the "Warrant  Shares") at the purchase price per
share provided in Section 1 below.

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

         (a)  "Business  Day" means any day that is not a Saturday,  Sunday or a
day on which the banks in the Dallas metropolitan area are generally closed.

         (b) "Common  Stock" means (i) the  Company's  common  stock,  par value
$0.001 per share,  and (ii) any capital stock into which such Common Stock shall
have been changed or any capital stock resulting from a reclassification of such
Common Stock.

         (c)  "Expiration  Date" means the date three (3) years from the date of
this Warrant or, if such date falls on a Saturday,  Sunday or other day on which
banks are required or authorized to be closed in the City of Dallas or the State
of Texas or on which  trading does not take place on the  principal  exchange or
automated  quotation  system on which the Common Stock is traded (a  "Holiday"),
the next date that is not a Holiday.

                                       1
<PAGE>

         (d)  "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.

         (e) "Securities Act" means the Securities Act of 1933, as amended.

         (f) "Warrant"  means this Warrant and all Warrants  issued in exchange,
transfer or replacement of any thereof.

         (g) "Warrant  Exercise Price" shall be $0.28 per share of Common Stock,
which price is the current fair market value of shares of Common Stock.

         Section 2. Exercise of Warrant.

         (a) Subject to the terms and  conditions  hereof,  this  Warrant may be
exercised by the holder hereof then  registered on the books of the Company,  in
whole  or in  part,  at any time on any  Business  Day on or  after  the date of
issuance of this Warrant and prior to 5:00 P.M.  Eastern Time on the  Expiration
Date by (i) delivery of a written notice, in the form of the subscription notice
attached as Exhibit A hereto (the "Exercise Notice"),  of such holder's election
to exercise  this  Warrant,  which  notice  shall  specify the number of Warrant
Shares to be  purchased,  (ii)  payment to the Company of an amount equal to the
Warrant  Exercise  Price  multiplied by the number of Warrant Shares as to which
this Warrant is being  exercised  (plus any applicable  issue or transfer taxes)
(the "Aggregate Exercise Price") in cash or by check or wire transfer, and (iii)
the  surrender  to a common  carrier  for  delivery  to the  Company  as soon as
practicable following such date, this Warrant (or an indemnification undertaking
with  respect to this  Warrant in the case of its loss,  theft or  destruction);
provided,  that if such  Warrant  Shares are to be issued in any name other than
that of the registered  holder of this Warrant,  such issuance shall be deemed a
transfer and the  provisions of Section 8 shall be  applicable.  In the event of
any exercise of the rights  represented by this Warrant in compliance  with this
Section 2(a), a certificate or certificates for the Warrant Shares so purchased,
in such denominations as may be requested by the holder hereof and registered in
the name of, or as directed by, the holder,  shall be delivered at the Company's
expense to, or as directed  by,  such holder as soon as  practicable,  and in no
event later than ten (10)  Business  Days,  after the  Company's  receipt of the
Exercise  Notice,   the  Aggregate  Exercise  Price  and  this  Warrant  (or  an
indemnification  undertaking  with  respect  to this  Warrant in the case of its
loss, theft or destruction).  Upon delivery of the Exercise Notice and Aggregate
Exercise  Price  referred to in clause (ii)  above,  the holder of this  Warrant
shall be deemed for all  corporate  purposes to have become the holder of record
of the Warrant  Shares with  respect to which this  Warrant has been  exercised,
irrespective of the date of delivery of this Warrant as required by clause (iii)
above or the certificates evidencing such Warrant Shares.

         (b) Unless the rights represented by this Warrant shall have expired or
shall have been fully  exercised,  the Company shall, as soon as practicable and
in no event later than ten (10)  Business Days after any exercise and at its own
expense, issue a new Warrant identical in all respects to this Warrant exercised
except it shall  represent  rights to  purchase  the  number of  Warrant  Shares
purchasable  immediately  prior to such exercise  under this Warrant  exercised,
less the  number of  Warrant  Shares  with  respect  to which  such  Warrant  is
exercised.

                                       2
<PAGE>

         (c) No  fractional  shares  of Common  Stock are to be issued  upon the
exercise of this Warrant, but rather the number of shares of Common Stock issued
upon  exercise of this Warrant  shall be rounded up or down to the nearest whole
number.

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

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

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

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

         (d) If the Company  proposes at any time (a) to declare any dividend or
distribution upon any of its stock, whether in cash,  property,  stock, or other
securities  and whether or not a regular  cash  dividend;  (b) to offer for sale
additional  shares of any class or series of the Company's  stock; (c) to effect
any  reclassification  or  recapitalization of any of its stock; (d) to merge or
consolidate with or into any other  corporation,  or sell,  lease,  license,  or
convey all or substantially all of its assets, or to liquidate, dissolve or wind
up; or (e) offer holders of  registration  rights the opportunity to participate
in an underwritten  public offering of the company's  securities for cash, then,
in connection with each such event, the Company shall give Holder:  (1) at least
10 days  prior  written  notice of the date on which a record  will be taken for
such dividend,  distribution, or subscription rights (and specifying the date on
which the holders of common stock will be entitled  thereto) or for  determining
rights to vote,  if any,  in respect of the  matters  referred to in (c) and (d)
above;  (2) in the case of the matters referred to in (c) and (d) above at least
10 days  prior  written  notice of the date when the same will take  place  (and
specifying  the date on which the  holders of common  stock will be  entitled to
exchange their common stock for securities or other  property  deliverable  upon
the occurrence of such event);  and (3) in the case of the matter referred to in
(e)  above,  the same  notice as is given to the  holders  of such  registration
rights.

         Section 4. Registration of Warrant Shares

         (a) Mandatory Registration.  The Company shall prepare, and, as soon as
practicable  but in no event later than sixty (60)  calendar days after the date
the holder exercises this Warrant, file with the SEC a Registration Statement or
Registration  Statements  (as is  necessary)  on Form  S-8  (or if such  form is
unavailable,  such other form as is  available  for  registration)  covering the
resale of all of the Warrant Shares. The initial Registration Statement prepared
pursuant hereto shall register for resale at least that number of Company common
stock  shares equal to the number of Warrant  Shares as of the date  immediately
preceding the date the  Registration  Statement is initially filed with the SEC,
subject  to  adjustment.  The  Company  shall use its best  efforts  to have the
Registration Statement declared effective by the SEC as soon as practicable, but
in no event  later than 120  calendar  days after the date the holder  exercises
this Warrant.

                                       3
<PAGE>

         (b) Piggy Back Registration  Rights. If the Company decides,  including
as required under any demand registration  rights agreement,  to register any of
its common stock or securities convertible into or exchangeable for common stock
under the Securities Act on a form which is suitable for an offering for cash or
shares of the  Company  held by third  parties  and which is not a  registration
solely to implement an employee  benefit plan, a registration  statement on Form
S-4 (or successor  form) or a transaction to which Rule 145 or any other similar
rule of the SEC is applicable,  the Company will promptly give written notice to
the  holder of this  Warrant of its  intention  to effect  such a  registration.
Subject to Section  4(c)  below,  the Company  shall  include all of the Warrant
Shares  that the holder  requests to be  included  in such a  registration  by a
written  notice  delivered  to the Company  within  fifteen  (15) days after the
notice given by the Company.

         (c) If the registration,  as described in Section 4(b) above,  involves
an underwritten  offering,  the Company will not be required to register Warrant
Shares in excess of the amount that the principal underwriter  reasonably and in
good faith  recommends  may be included in such  offering (a  "Cutback"),  which
recommendation,  and supporting  reasoning,  shall be delivered to the holder of
this Warrant.  If such a Cutback occurs,  the number of shares that are entitled
to included in the  registration  and  underwriting  shall be  allocated  in the
following  manner:  (i) first,  to the Company for any securities it proposes to
sell for its own account,  (ii) second,  to the holder of this Warrant requiring
such  registration,  and (iii) third,  to other  holders of stock of the Company
requesting inclusion in the registration,  pro rata among the respective holders
thereof  on the basis of the  number of shares  for which  each such  requesting
holder has requested registration.

         Section 5. Taxes.  The Company shall pay any and all taxes which may be
payable  with  respect to the  issuance  and  delivery  of Warrant  Shares  upon
exercise of this Warrant.

         Section 6. Warrant Holder Not Deemed a Stockholder. Except as otherwise
specifically  provided  herein,  no holder,  as such,  of this Warrant  shall be
entitled to vote or receive  dividends  or be deemed the holder of shares of the
Company  for any  purpose,  nor shall  anything  contained  in this  Warrant  be
construed  to confer  upon the holder  hereof,  as such,  any of the rights of a
stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization,  issue of stock,  reclassification
of stock,  consolidation,  merger,  conveyance or otherwise),  receive notice of
meetings,  receive dividends or subscription rights, or otherwise,  prior to the
issuance to the holder of this Warrant of the Warrant  Shares which he or she is
then  entitled to receive  upon the due exercise of this  Warrant.  In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities
on such holder to purchase  any  securities  (upon  exercise of this  Warrant or
otherwise)  or as a stockholder  of the Company,  whether such  liabilities  are
asserted by the Company or by creditors of the Company.

         Section 7.  Representations of Holder.  The holder of this Warrant,  by
the  acceptance  hereof,  represents  that it is acquiring  this Warrant and the
Warrant  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  Warrant or the Warrant  Shares,  except  pursuant to sales  registered  or
exempted  under the  Securities  Act;  provided,  however,  that by  making  the
representations herein, the holder does not agree to hold this Warrant or any of
the Warrant Shares for any minimum or other specific term and reserves the right
to dispose of this Warrant and the Warrant Shares at any time in accordance with
or pursuant to a  registration  statement or an exemption  under the  Securities
Act.

                                       4
<PAGE>

         Section 8. Ownership and Transfer.

         (a) The Company shall maintain at its principal  executive  offices (or
such other office or agency of the Company as it may  designate by notice to the
holder hereof),  a register for this Warrant,  in which the Company shall record
the name and address of the Person in whose name this  Warrant has been  issued,
as well as the name and  address of each  transferee.  The Company may treat the
Person in whose name any Warrant is  registered on the register as the owner and
holder thereof for all purposes, notwithstanding any notice to the contrary, but
in all events  recognizing  any transfers  made in accordance  with the terms of
this Warrant.

         (b) This  Warrant  and the  rights  granted  to the  holder  hereof are
transferable, in whole or in part, upon surrender of this Warrant, together with
a properly  executed  warrant  power in the form of  Exhibit B attached  hereto;
provided,  however,  that any  transfer  or  assignment  shall be subject to the
conditions set forth in Section 8(c) below.

         (c) The holder of this  Warrant  understands  that this Warrant has not
been and is not expected to be, registered under the Securities Act or any state
securities laws, and may not be offered for sale, sold,  assigned or transferred
unless (a)  subsequently  registered  thereunder,  or (b) such holder shall have
delivered to the Company an opinion of counsel, in generally acceptable form, to
the effect that the securities to be sold,  assigned or transferred may be sold,
assigned  or  transferred  pursuant  to an  exemption  from  such  registration;
provided  that  (i) any sale of such  securities  made in  reliance  on Rule 144
promulgated  under the  Securities  Act may be made only in accordance  with the
terms of said Rule and further,  if said Rule is not  applicable,  any resale of
such securities  under  circumstances in which the seller (or the person through
whom the sale is made)  may be  deemed  to be an  underwriter  (as that  term is
defined in the Securities Act) may require  compliance with some other exemption
under the  Securities  Act or the rules and  regulations  of the  Securities and
Exchange  Commission  thereunder;  and (ii)  neither  the  Company nor any other
person is under any obligation to register the Warrants under the Securities Act
or any state  securities  laws or to comply with the terms and conditions of any
exemption thereunder.

         Section 9. Adjustment to the Shares. The Warrant Exercise Price and the
number of shares of Common Stock issuable upon exercise of this Warrant shall be
adjusted from time to time as follows:

         (a)  Adjustment  of  Warrant   Exercise   Price  upon   Subdivision  or
Combination  of  Common  Stock.  If the  Company  at  anytime  after the date of
issuance  of this  Warrant  subdivides  (by any  stock  split,  stock  dividend,
recapitulation  or otherwise) one or more classes of its  outstanding  shares of
Common  Stock into a greater  number of shares,  the Warrant  Exercise  Price in
effect immediately prior to such subdivision will be proportionately reduced and
the  number of  shares of Common  Stock  obtainable  upon the  exercise  of this
Warrant will be proportionately  increased. If the Company at any time after the
date of issuance of this Warrant combines (by  combination,  reverse stock split
or otherwise) one or more classes of its outstanding shares of Common Stock into
a smaller number of shares,  the Warrant  Exercise  Price in effect  immediately
prior to such  combination will be  proportionately  increased and the number of
shares  of  Common  Stock  obtainable  upon  exercise  of this  Warrant  will be
proportionately decreased.

                                       5
<PAGE>

         (b) Reclassification,  Exchange, Combinations or Substitution. Upon any
reclassification,  exchange,  substitution,  or other  event  that  results in a
change of the number  and/or class of the  securities  issuable upon exercise or
conversion  of this  Warrant,  the holder of this  Warrant  shall be entitled to
receive,  upon exercise or  conversion  of this Warrant,  the number and kind of
securities  and property that the holder of this Warrant would have received for
the shares of Common Stock if this Warrant had been exercised immediately before
such reclassification,  exchange,  substitution,  or other event. The Company or
its successor  shall  promptly issue to holder of this Warrant a new Warrant for
such new  securities  or other  property.  The new  Warrant  shall  provide  for
adjustments  which shall be as nearly  equivalent as may be  practicable  to the
adjustments  provided  for in this  Section  9  including,  without  limitation,
adjustments  to the Warrant  Exercise  Price and to the number of  securities or
property  issuable  upon  exercise of the new Warrant.  The  provisions  of this
Section 9(b) shall similarly apply to successive  reclassifications,  exchanges,
substitutions, or other events.

         (c) Adjustments for Diluting Issuances.  The Warrant Exercise Price and
the number of shares of Common  Stock  issuable  upon  exercise of this  Warrant
shall be subject to adjustment, from time to time in the manner set forth in the
Company's  Articles or Certificate of  Incorporation  as if the shares of Common
Stock were  issued and  outstanding  on and as of the date of any such  required
adjustment.  The  provisions  set  forth for the  shares of Common  Stock in the
Company's  Articles or Certificate (as applicable) of Incorporation  relating to
the above in effect as of the date of issuance  may not be amended,  modified or
waived,  without the prior written  consent of the holder of this Warrant unless
such amendment,  modification  or waiver affects the rights  associated with the
Warrant  Shares in the same  manner as such  amendment,  modification  or waiver
affects the rights associated with all other shares of the same series and class
as the shares granted to the holder.

         (d) No Impairment.  The Company shall not, by amendment of its Articles
or Certificate (as  applicable) of  Incorporation  or through a  reorganization,
transfer  of  assets,  consolidation,  merger,  dissolution,  issue,  or sale of
securities or any other voluntary action,  avoid or seek to avoid the observance
or  performance  of any of the terms to be  observed  or  performed  under  this
Warrant by the Company,  but shall at all times in good faith assist in carrying
out of all the provisions of this Section 9 and in taking all such action as may
be  necessary  or  appropriate  to protect  Holder's  rights  under this Section
against impairment.

         (e) Certificate as to Adjustments.  Upon each adjustment of the Warrant
Exercise Price, the Company shall promptly notify the holder in writing, and, at
the Company's  expense,  promptly  compute such  adjustment,  and furnish to the
holder with a  certificate  of its Chief  Financial  Officer  setting forth such
adjustment and the facts upon which such adjustment is based. The Company shall,
upon written  request,  furnish to the holder a  certificate  setting  forth the
Warrant  Exercise  Price in  effect  upon the date  thereof  and the  series  of
adjustments leading to such Warrant Exercise Price.

                                       6
<PAGE>

         Section 10.  Lost,  Stolen,  Mutilated or  Destroyed  Warrant.  If this
Warrant is lost, stolen,  mutilated or destroyed,  the Company shall, on receipt
of an indemnification undertaking,  issue a new Warrant of like denomination and
tenor as this Warrant so lost, stolen, mutilated or destroyed.

         Section  11.   Notice.   Any  notices,   consents,   waivers  or  other
communications required or permitted to be given under the terms of this Warrant
must be in writing and will be deemed to have been delivered:  (i) upon receipt,
when delivered  personally;  (ii) upon receipt, when sent by facsimile (provided
confirmation of 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 the Company:

                           Basic Empire Corporation
                           211 West Wall Street
                           Midland, Texas  79701-4556
                           Telephone: ______________
                           Facsimile: ______________
                           Attention: ______________

                  Notice to the holder of this  Warrant  shall be  addressed  as
                  follows  until  the  Company  receives  notice  of a change in
                  address:

                           Timothy P. Halter
                           12890 Hilltop Road
                           Argyle, Texas  76226
                           Telephone:_______________
                           Facsimile:_______________
                           Attention:_______________

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,  waiver or other communication,
(B) mechanically or electronically  generated by the sender's  facsimile machine
containing the time, date,  recipient facsimile number and an image of the first
page of such transmission or (C) provided by a nationally  recognized  overnight
delivery service shall be rebuttable  evidence of personal  service,  receipt by
facsimile or receipt from a nationally  recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

         Section  12.  Date.  The date of this  Warrant  is  May 26, 2004.  This
Warrant, in all events, shall be wholly void and of no effect after the close of
business on the Expiration Date.

         Section 13. Amendment and Waiver.  Except as otherwise provided herein,
the  provisions  of this  Warrant  may be amended  and the  Company may take any
action  herein  prohibited,  or omit to perform  any act herein  required  to be
performed  by it, only if the Company has  obtained  the written  consent of the
holder of this Warrant.

                                       7
<PAGE>

         Section  14.  Descriptive  Headings  The  descriptive  headings  of the
several  Sections and  paragraphs  of this Warrant are inserted for  convenience
only and do not constitute a part of this Warrant.

         Section  15.  Governing  Law.  This  Warrant  shall be  governed by and
construed  and  enforced  in  accordance  with the laws of the  State of  Texas,
without  giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Texas or any other  jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of Texas.

         This Warrant has been duly executed by the Company as of the date first
set forth above.

                                                     BASIC EMPIRE CORPORATION

                                                     By: /s/ Glenn A. Little
                                                        ------------------------
                                                        Glenn A. Little
                                                        Chief Executive Officer

                                       8
<PAGE>

                              EXHIBIT A TO WARRANT

                                SUBSCRIPTION FORM

        TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                            BASIC EMPIRE CORPORATION

         The  undersigned   holder  hereby   exercises  the  right  to  purchase
_________________  of the shares of Common  Stock  ("Warrant  Shares")  of Basic
Empire  Corporation,  a Nevada  corporation  (the  "Company"),  evidenced by the
attached  Warrant  (the  "Warrant").  Capitalized  terms  used  herein  and  not
otherwise defined shall have the respective meanings set forth in the Warrant.

         1. Payment of Warrant  Exercise Price.  The holder shall pay the sum of
$___________________ to the Company in accordance with the terms of the Warrant.

         2. Delivery of Warrant Shares.  The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

Date:______________  ________ , __________________

Name of Registered Holder

_____________________________

Name:________________________

                                      A-1
<PAGE>

                              EXHIBIT B TO WARRANT

                              FORM OF WARRANT POWER

FOR  VALUE  RECEIVED,  the  undersigned  does  hereby  assign  and  transfer  to
________________,  Federal Identification No. __________,  a warrant to purchase
____________ shares of the capital stock of Basic Empire  Corporation,  a Nevada
corporation,  represented by warrant certificate no. _____, standing in the name
of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably  constitute  and appoint  ______________,  attorney to transfer  the
warrants of said corporation, with full power of substitution in the premises.

Dated:  _______________, 200__

                                              __________________________________
                                              Name:_____________________________

                                      B-1

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