Document:

ex10_9.htm

    
      

    

    
      Exhibit
        10.9

       

      NEITHER
        THIS NOTE NOR THE SECURITIES ISSUABLE UPON ITS CONVERSION HAVE BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE
        SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN
        EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN
        OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF
        COUNSEL IN COMPARABLE TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER
        SAID
        ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S UNDER SAID
        ACT.

       

       

      CONVERTIBLE
        PROMISSORY NOTE

       

      Houston,
        Texas

      
        	September
                14, 2006 	
                 $100,000

              

      

       

      FOR
        VALUE RECEIVED, EXOBOX TECHNOLOGIES CORP., a Nevada
        corporation (hereinafter called the “Borrower”), hereby
        promises to pay to the order of Manillo Investors, Ltd. or registered assigns
        (the “Holder”) the sum of One Hundred Thousand Dollars
        ($100,000), on January 1, 2007 (the “Maturity Date”), and to
        pay interest on the unpaid principal balance hereof at the rate of ten percent
        (10%) per annum from the date hereof the “Issue Date”) until
        the same becomes due and payable, whether at maturity or upon acceleration
        or by
        prepayment or otherwise.  Any amount of principal or interest on this
        Note which is not paid when due shall bear interest at the rate of fifteen
        percent (15%) per annum from the due date thereof until the same is paid
        (“Default Interest”).  Interest shall commence
        accruing on the issue date, shall be computed on the basis of a 365-day year
        and
        the actual number of days elapsed and shall be payable, at the option of
        the
        Holder, either at maturity or at the time of conversion of the principal
        to
        which such interest relates in accordance with Article I
        below.  All payments due hereunder (to the extent not converted into
        Series C preferred stock, $.001 par value per share, of the Borrower (the
        “Preferred Stock”) in accordance with the terms hereof) shall
        be made in lawful money of the United States of America or, at the option
        of the
        Borrower, in whole or in part, in shares of Preferred Stock of the Borrower
        at
        the then applicable Conversion Rate (as defined herein). All payments shall
        be
        made at such address as the Holder shall hereafter give to the Borrower by
        written notice made in accordance with the provisions of this
        Note.  Whenever any amount expressed to be due by the terms of this
        Note is due on any day which is not a business day, the same shall instead
        be
        due on the next succeeding day which is a business day and, in the case of
        any
        interest payment date which is not the date on which this Note is paid in
        full,
        the extension of the due date thereof shall not be taken into account for
        purposes of determining the amount of interest due on such date.  As
        used in this Note, the term “business day” shall mean any day other than a
        Saturday, Sunday or a day on which commercial banks in the city of Houston,
        Texas are authorized or required by law or executive order to remain
        closed.

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      This
        Note
        is free from all taxes, liens, claims and encumbrances with respect to the
        issue
        thereof and shall not be subject to preemptive rights or other similar rights
        of
        shareholders of the Borrower and will not impose personal liability upon
        the
        holder thereof.  The obligations of the Borrower under this Note shall
        be secured by that certain Security Agreement dated by and between the Borrower
        and the Holder of even date herewith.

       

      The
        terms
        and conditions of the Securities Purchase Agreement dated as of September
        20,
        2005 by and among the Borrower and the Purchasers (as defined therein) are
        incorporated herein by reference (the Securities Purchase Agreement and the
        exhibits thereto are referred to herein collectively as the “Purchase
        Agreement”).  Terms not defined herein shall have the meanings
        ascribed to them in the Purchase Agreement

       

      The
        following terms shall apply to this Note:

       

       

      ARTICLE
        I.
CONVERSION RIGHTS

       

      1.1    
        Conversion
        Right.  Provided that, and only to the
        extent that, the Borrower has a sufficient number of shares of authorized
        but
        unissued and unreserved shares of Series C Convertible Preferred Stock
        (“Preferred Stock”) available to issue upon conversion, the Holder shall have
        the right from time to time,on the earlier of (i) the Maturity Date or (ii)
        the
        date of payment of the Default Amount (as defined in Article III) pursuant
        to
        Section 1.6(a) or Article III, the Optional Prepayment Amount (as defined
        in
        Section 5.1 or any payments pursuant to Section 1.7, each in respect of the
        remaining outstanding principal amount of this Note to convert all or any
        part
        of the outstanding and unpaid principal amount of this Note into fully paid
        and
        non-assessable shares of Preferred Stock as such Preferred Stock exists on
        the
        Issue Date, or any shares of capital stock or other securities of the Borrower
        into which such Preferred Stock shall hereafter be changed or reclassified
        at
        the conversion rate (the “Conversion Rate”) determined as
        provided herein (a “Conversion”).  The number of
        shares of Preferred Stock to be issued upon each conversion of this Note
        shall
        be the pro rata part of the total number of fully paid and nonassessable
        shares
        of Preferred Stock issuable upon conversion of the original principal hereof
        based upon the Conversion Rate.  In the event the Conversion Amount
        (as defined below) is more that the original principal of this Note, the
        number
        of shares of Preferred Stock issuable upon conversion shall be increased
        ratably. The term “Conversion Amount” means, with respect to
        any conversion of this Note, the sum of (1) the principal amount of this
        Note to
        be converted in such conversion plus (2) accrued and unpaid interest, if
        any, on such principal amount at the interest rates provided in this Note
        to the
        Conversion Date plus (3) Default Interest, if any, on the amounts
        referred to in the immediately preceding clauses (1) and/or (2) plus (4)
        at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3
        and 1.4(g) hereof.

       

      1.2    
        Conversion Rate.

       

      (a)    Calculation
        of Conversion Rate.

       

      The
        Conversion Rate shall be 4,000 shares of Preferred Stock.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      1.3    
        Authorized
        Shares.  The Borrower covenants that
        during the period the conversion right exists, the Borrower will reserve
        from
        its authorized and unissued Preferred Stock a sufficient number of shares,
        free
        from preemptive rights, to provide for the issuance of Preferred Stock upon
        the
        full conversion of this Note and the other securities issued pursuant to
        the
        Purchase Agreement.  The Borrower is required at all times to have
        authorized and reserved one and one-quarter times the number of shares that
        is
        actually issuable upon full conversion of this note (based on the Conversion
        Rate of this note in effect from time to time) (the “Reserved
        Amount”).  The Borrower represents that upon issuance, such
        shares will be duly and validly issued, fully paid and non-assessable and
        a
        binding obligation of the Borrower.  In addition, if the Borrower
        shall issue any securities or make any change to its capital structure which
        would change the number of shares of Preferred Stock into which this note
        shall
        be convertible at the then current Conversion Rate, the Borrower shall at
        the
        same time make proper provision so that thereafter there shall be a sufficient
        number of shares of Preferred Stock authorized and reserved, free from
        preemptive rights, for conversion of the outstanding Note.  The
        Borrower (i) acknowledges that it has irrevocably instructed its transfer
        agent
        to issue certificates for the Preferred Stock issuable upon conversion of
        this
        Note, and (ii) agrees that its issuance of this Note shall constitute full
        authority to its officers and agents who are charged with the duty of executing
        stock certificates to execute and issue the necessary certificates for shares
        of
        Preferred Stock in accordance with the terms and conditions of this
        Note.

       

      If,
        at
        any time a Holder of this Note submits a Notice of Conversion, and the Borrower
        does not have sufficient authorized but unissued shares of Preferred Stock
        available to effect such conversion in accordance with the provisions of
        this
        Article I (a “Conversion Default”), subject to Section 4.8, the
        Borrower shall issue to the Holder all of the shares of Preferred Stock which
        are then available to effect such conversion.  The portion of this
        Note which the Holder included in its Conversion Notice and which exceeds
        the
        amount which is then convertible into available shares of Preferred Stock
        (the
“Excess Amount”) shall, notwithstanding anything to the
        contrary contained herein, not be convertible into Preferred Stock in accordance
        with the terms hereof until (and at the Holder’s option at any time after) the
        date additional shares of Preferred Stock are authorized by the Borrower
        to
        permit such conversion, at which time the Conversion Rate in respect thereof
        shall be the lesser of (i) the Conversion Rate on the Conversion Default
        Date
        (as defined below) and (ii) the Conversion Rate on the Conversion Date
        thereafter elected by the Holder in respect thereof.  In addition, the
        Borrower shall pay to the Holder payments (“Conversion Default
        Payments”) for a Conversion Default in the amount of (x) the sum
        of (1) the then outstanding principal amount of this Note plus (2)
        accrued and unpaid interest on the unpaid principal amount of this Note through
        the Authorization Date (as defined below) plus (3) Default Interest, if
        any, on the amounts referred to in clauses (1) and/or (2), multiplied by
        (y) .24, multiplied by (z) (N/365), where N = the number of days from the
        day the holder submits a Notice of Conversion giving rise to a Conversion
        Default (the “Conversion Default Date”) to the date (the
“Authorization Date”) that the Borrower authorizes a sufficient
        number of shares of Preferred Stock to effect conversion of the full outstanding
        principal balance of this Note.  The Borrower shall use its best
        efforts to authorize a sufficient number of shares of Preferred Stock as
        soon as
        practicable following the earlier of (i) such time that the Holder notifies
        the
        Borrower or that the Borrower otherwise becomes aware that there are or likely
        will be insufficient authorized and unissued shares to allow full conversion
        thereof and (ii) a Conversion Default.  The Borrower shall send notice
        to the Holder of the authorization of additional shares of Preferred Stock,
        the
        Authorization Date and the amount of Holder’s accrued Conversion Default
        Payments.  The accrued Conversion Default Payments for each calendar
        month shall be paid in cash or shall be convertible into Preferred Stock
        (at
        such time as there are sufficient authorized shares of Preferred Stock) at
        the
        applicable Conversion Rate, at the Holder’s option, as follows:

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (a)    In
        the event Holder elects to take such payment in cash, cash payment shall
        be made
        to Holder by the fifth (5th) day
        of the month
        following the month in which it has accrued; and

       

      (b)    In
        the event Holder elects to take such payment in Preferred Stock, the Holder
        may
        convert such payment amount into Preferred Stock at the Conversion Rate (as
        in
        effect at the time of conversion) at any time after the fifth day of the
        month
        following the month in which it has accrued in accordance with the terms
        of this
        Article I (so long as there is then a sufficient number of authorized shares
        of
        Preferred Stock).

       

      The
        Holder’s election shall be made in writing to the Borrower at any time prior to
        6:00 p.m., Houston, Texas time, on the third day of the month following the
        month in which Conversion Default payments have accrued.  If no
        election is made, the Holder shall be deemed to have elected to receive
        cash.  Nothing herein shall limit the Holder’s right to pursue actual
        damages (to the extent in excess of the Conversion Default Payments) for
        the
        Borrower’s failure to maintain a sufficient number of authorized shares of
        Preferred Stock, and each holder shall have the right to pursue all remedies
        available at law or in equity (including degree of specific performance and/or
        injunctive relief).

       

      1.4    
        Method of Conversion.

       

      (a)    Mechanics
        of Conversion.  Subject to Section 1.1,
        this Note may be converted by the Holder in whole or in part at any time
        from
        time to time after the Issue Date, by (A) submitting to the Borrower a notice
        of
        conversion in the form attached hereto as Exhibit A (the “Notice of
        Conversion”) by facsimile or other reasonable means of communication
        dispatched prior to 6:00 p.m., Houston, Texas time (“Conversion
        Date”) and (B) subject to Section 1.4(b), surrendering this Note at the
        principal office of the Borrower.

       

      (b)    Surrender
        of Note Upon
        Conversion.  Notwithstanding anything to
        the contrary set forth herein, upon conversion of this Note in accordance
        with
        the terms hereof, the Holder shall not be required to physically surrender
        this
        Note to the Borrower unless the entire unpaid principal amount of this Note
        is
        so converted.  The Holder and the Borrower shall maintain records
        showing the principal amount so converted and the dates of such conversions
        or
        shall use such other method, reasonably satisfactory to the Holder and the
        Borrower, so as not to require physical surrender of this Note upon each
        such
        conversion.  In the event of any dispute or discrepancy, such records
        of the Borrower shall be controlling and determinative in the absence of
        manifest error.  Notwithstanding the foregoing, if any portion of this
        Note is converted as aforesaid, the Holder may not transfer this Note unless
        the
        Holder first physically surrenders this Note to the Borrower, whereupon the
        Borrower will forthwith issue and deliver upon the order of the Holder a
        new
        Note of like tenor, registered as the Holder (upon payment by the Holder
        of any
        applicable transfer taxes) may request, representing in the aggregate the
        remaining unpaid principal amount of this Note.  The Holder and any
        assignee, by acceptance of this Note, acknowledge and agree that, by reason
        of
        the provisions of this paragraph, following conversion of a portion of this
        Note, the unpaid and unconverted principal amount of this Note represented
        by
        this Note may be less than the amount stated on the face hereof.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (c)    Payment
        of Taxes.  The Borrower shall not be
        required to pay any tax which may be payable in respect of any transfer involved
        in the issue and delivery of shares of Preferred Stock or other securities
        or
        property on conversion of this Note in a name other than that of the Holder
        (or
        in street name), and the Borrower shall not be required to issue or deliver
        any
        such shares or other securities or property unless and until the person or
        persons (other than the Holder or the custodian in whose street name such
        shares
        are to be held for the Holder’s account) requesting the issuance thereof shall
        have paid to the Borrower the amount of any such tax or shall have established
        to the satisfaction of the Borrower that such tax has been paid.

       

      (d)    Delivery
        of Preferred Stock Upon
        Conversion.  Upon receipt by the
        Borrower from the Holder of a facsimile transmission (or other reasonable
        means
        of communication) of a Notice of Conversion meeting the requirements for
        conversion as provided in this Section 1.4, the Borrower shall issue and
        deliver
        or cause to be issued and delivered to or upon the order of the Holder
        certificates for the Preferred Stock issuable upon such conversion within
        five
        (5) business days after such receipt (and, solely in the case of conversion
        of
        the entire unpaid principal amount hereof, surrender of this Note) (such
        fifth
        business day being hereinafter referred to as the “Deadline”)
        in accordance with the terms hereof and the Purchase Agreement.

       

      (e)    Obligation
        of Borrower to Deliver Preferred
        Stock.  Upon receipt by the Borrower of
        a Notice of Conversion, the Holder shall be deemed to be the holder of record
        of
        the Preferred Stock issuable upon such conversion, the outstanding principal
        amount and the amount of accrued and unpaid interest on this Note shall be
        reduced to reflect such conversion, and, unless the Borrower defaults on
        its
        obligations under this Article I, all rights with respect to the portion
        of this
        Note being so converted shall forthwith terminate except the right to receive
        the Preferred Stock or other securities, cash or other assets, as herein
        provided, on such conversion.  If the Holder shall have given a Notice
        of Conversion as provided herein, the Borrower’s obligation to issue and deliver
        the certificates for Preferred Stock shall be absolute and unconditional,
        irrespective of the absence of any action by the Holder to enforce the same,
        any
        waiver or consent with respect to any provision thereof, the recovery of
        any
        judgment against any person or any action to enforce the same, any failure
        or
        delay in the enforcement of any other obligation of the Borrower to the holder
        of record, or any setoff, counterclaim, recoupment, limitation or termination,
        or any breach or alleged breach by the Holder of any obligation to the Borrower,
        and irrespective of any other circumstance which might otherwise limit such
        obligation of the Borrower to the Holder in connection with such
        conversion.  The Conversion Date specified in the Notice of Conversion
        shall be the Conversion Date so long as the Notice of Conversion is received
        by
        the Borrower before 6:00 p.m., Houston, Texas time, on such date.

       

      (f)    Failure
        to Deliver Preferred Stock Prior to
        Deadline.  Without in any way limiting
        the Holder’s right to pursue other remedies, including actual damages and/or
        equitable relief, the parties agree that if delivery of the Preferred Stock
        issuable upon conversion of this Note is more than two (2) days after the
        Deadline because of the fault of Borrower (other than a failure due to the
        circumstances described in Section 1.3 above, which failure shall be governed
        by
        such Section) the Borrower shall pay to the Holder $2,000 per day in cash,
        for
        each day beyond the Deadline that the Borrower fails to deliver such Preferred
        Stock.  Such cash amount shall be paid to Holder by the fifth day of
        the month following the month in which it has accrued or, at the option of
        the
        Holder (by written notice to the Borrower by the first day of the month
        following the month in which it has accrued), shall be added to the principal
        amount of this Note, in which event interest shall accrue thereon in accordance
        with the terms of this Note and such additional principal amount shall be
        convertible into Preferred Stock in accordance with the terms of this
        Note.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      1.5    
        Concerning the
        Shares.  The shares of Preferred Stock
        issuable upon conversion of this Note may not be sold or transferred
        unless  (i) such shares are sold pursuant to an effective registration
        statement under the Act or (ii) the Borrower or its transfer agent shall
        have
        been furnished with an opinion of  counsel (which opinion shall be in
        form, substance and scope customary for opinions of counsel in comparable
        transactions) to the effect that the shares to be sold or transferred may
        be
        sold or transferred pursuant to an exemption from such registration or
        (iii) such shares are sold or transferred pursuant to Rule 144 under the
        Act (or a successor rule) (“Rule 144”) or (iv) such shares are
        transferred to an “affiliate” (as defined in Rule 144) of the Borrower who
        agrees to sell or otherwise transfer the shares only in accordance with this
        Section 1.5 and who is an Accredited Investor (as defined in Section 6(b)
        of the
        Purchase Agreement).  Except as otherwise provided in the Purchase
        Agreement (and subject to the removal provisions set forth below), until
        such
        time as the shares of Preferred Stock issuable upon conversion of this Note
        have
        been registered under the Act or otherwise may be sold pursuant to Rule 144
        without any restriction as to the number of securities as of a particular
        date
        that can then be immediately sold, each certificate for shares of Preferred
        Stock issuable upon conversion of this Note that has not been so included
        in an
        effective registration statement or that has not been sold pursuant to an
        effective registration statement or an exemption that permits removal of
        the
        legend, shall bear a legend substantially in the following form, as
        appropriate:

       

      “NEITHER
        THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE
        UPON
        THEIR CONVERSION HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED.  THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN
        THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
        SAID
        ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR
        OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT
        REQUIRED UNDER SAID ACT UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S
        UNDER
        SAID ACT.”

       

      The
        legend set forth above shall be removed and the Borrower shall issue to the
        Holder a new certificate therefor free of any transfer legend if (i) the
        Borrower or its transfer agent shall have received an opinion of counsel,
        in
        form, substance and scope customary for opinions of counsel in comparable
        transactions, to the effect that a public sale or transfer of such Preferred
        Stock may be made without registration under the Act and the shares are so
        sold
        or transferred, (ii) such Holder provides the Borrower or its transfer agent
        with reasonable assurances that the Preferred Stock issuable upon conversion
        of
        this Note (to the extent such securities are deemed to have been acquired
        on the
        same date) can be sold pursuant to Rule 144 or (iii) in the case of the
        Preferred Stock issuable upon conversion of this Note, such security is
        registered for sale by the Holder under an effective registration statement
        filed under the Act or otherwise may be sold pursuant to Rule 144 without
        any
        restriction as to the number of securities as of a particular date that can
        then
        be immediately sold.  Nothing in this Note shall affect in any way the
        Holder’s obligations to comply with applicable prospectus delivery requirements
        upon the resale of the securities referred to herein.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      1.6    
        Effect of Certain Events.

       

      (a)    Effect
        of Merger, Consolidation, Etc.  At the option of the
        Holder, the sale, conveyance or disposition of all or substantially all of
        the
        assets of the Borrower, the effectuation by the Borrower of a transaction
        or
        series of related transactions in which more than 50% of the voting power
        of the
        Borrower is disposed of, or the consolidation, merger or other business
        combination of the Borrower with or into any other Person (as defined below)
        or
        Persons when the Borrower is not the survivor shall either:  (i) be
        deemed to be an Event of Default (as defined in Article III) pursuant to
        which
        the Borrower shall be required to pay to the Holder upon the consummation
        of and
        as a condition to such transaction an amount equal to the Default Amount
        (as
        defined in Article III) or (ii) be treated pursuant to Section 1.6(b)
        hereof.  “Person” shall mean any individual,
        corporation, limited liability company, partnership, association, trust or
        other
        entity or organization.

       

      (b)    Adjustment
        Due to Merger, Consolidation, Etc. If, at any
        time when this Note is issued and outstanding and prior to conversion of
        all of
        this note, there shall be any merger, consolidation, exchange of shares,
        recapitalization, reorganization, or other similar event, as a result of
        which
        shares of Preferred Stock of the Borrower shall be changed into the same
        or a
        different number of shares of another class or classes of stock or securities
        of
        the Borrower or another entity, or in case of any sale or conveyance of all
        or
        substantially all of the assets of the Borrower other than in connection
        with a
        plan of complete liquidation of the Borrower, then the Holder of this Note
        shall
        thereafter have the right to receive upon conversion of this Note, upon the
        basis and upon the terms and conditions specified herein and in lieu of the
        shares of Preferred Stock immediately theretofore issuable upon conversion,
        such
        stock, securities or assets which the Holder would have been entitled to
        receive
        in such transaction had this Note been converted in full immediately prior
        to
        such transaction (without regard to any limitations on conversion set forth
        herein), and in any such case appropriate provisions shall be made with respect
        to the rights and interests of the Holder of this Note to the end that the
        provisions hereof (including, without limitation, provisions for adjustment
        of
        the Conversion Rate and of the number of shares issuable upon conversion
        of this
        note) shall thereafter be applicable, as nearly as may be practicable in
        relation to any securities or assets thereafter deliverable upon the conversion
        hereof.  The Borrower shall not effect any transaction described in
        this Section 1.6(b) unless (a) it first gives, to the extent practicable,
        thirty
        (30) days prior written notice (but in any event at least fifteen (15) days
        prior written notice) of the record date of the special meeting of shareholders
        to approve, or if there is no such record date, the consummation of, such
        merger, consolidation, exchange of shares, recapitalization, reorganization
        or
        other similar event or sale of assets (during which time the Holder shall
        be
        entitled to convert this Note) and (b) the resulting successor or acquiring
        entity (if not the Borrower) assumes by written instrument the obligations
        of
        this Section 1.6(b).  The above provisions shall similarly apply to
        successive consolidations, mergers, sales, transfers or share
        exchanges.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (c)    Adjustment
        Due to Distribution.  If the Borrower
        shall declare or make any distribution of its assets (or rights to acquire
        its
        assets) to holders of Preferred Stock as a dividend, stock repurchase, by
        way of
        return of capital or otherwise (including any dividend or distribution to
        the
        Borrower’s shareholders in cash or shares (or rights to acquire shares) of
        capital stock of a subsidiary (i.e., a spin-off)) (a
“Distribution”), then the Holder of this Note shall be
        entitled, upon any conversion of this Note after the date of record for
        determining shareholders entitled to such Distribution, to receive the amount
        of
        such assets which would have been payable to the Holder with respect to the
        shares of Preferred Stock issuable upon such conversion had such Holder been
        the
        holder of such shares of Preferred Stock on the record date for the
        determination of shareholders entitled to such Distribution.

       

      (d)    Adjustment
        Due to Dilutive Issuance.  If, at any
        time when this Note is issued and outstanding, the Borrower issues or sells,
        or
        in accordance with this Section 1.6(d) hereof is deemed to have issued or
        sold,
        any shares of Preferred Stock (a “Dilutive Issuance”), then
        immediately upon the Dilutive Issuance, the Conversion Rate will be adjusted
        in
        order to maintain the same Conversion Rate.

       

      The
        Borrower shall be deemed to have issued or sold shares of Preferred Stock
        if the
        Borrower in any manner issues or grants any warrants, rights or options,
        whether
        or not immediately exercisable, to subscribe for or to purchase Preferred
        Stock
        or other securities convertible into or exchangeable for Preferred Stock
        (“Convertible Securities”) (such warrants, rights and options
        to purchase Preferred Stock or Convertible Securities are hereinafter referred
        to as “Options”).  No further adjustment to the
        Conversion Rate will be made upon the actual issuance of such Preferred Stock
        upon the exercise of such Options or upon the conversion or exchange of
        Convertible Securities issuable upon exercise of such Options.

       

      Additionally,
        the Borrower shall be deemed to have issued or sold shares of Preferred Stock
        if
        the Borrower in any manner issues or sells any Convertible Securities, whether
        or not immediately convertible (other than where the same are issuable upon
        the
        exercise of Options).

       

      No
        adjustment to the Conversion Rate will be made upon the exercise of any
        warrants, options or convertible securities granted, issued and outstanding
        on
        the date of issuance of this Note.

       

      (e)    Purchase
        Rights.  If, at any time when this Note
        is issued and outstanding, the Borrower issues any convertible securities
        or
        rights to purchase stock, warrants, securities or other property (the
“Purchase Rights”) pro rata to the record holders of any class
        of Preferred Stock, then the Holder of this Note and the holders of the Series
        C
        Convertible Preferred Stock will be entitled to acquire, upon the terms
        applicable to such Purchase Rights, the aggregate Purchase Rights which such
        Holder could have acquired if such Holder had held the number of shares of
        Preferred Stock acquirable upon complete conversion of this Note or the Series
        C
        Convertible Preferred Stock (without regard to any limitations on conversion
        contained herein) immediately before the date on which a record is taken
        for the
        grant, issuance or sale of such Purchase Rights or, if no such record is
        taken,
        the date as of which the record holders of Preferred Stock are to be determined
        for the grant, issue or sale of such Purchase Rights.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (f)    Notice
        of Adjustments.  Upon the occurrence of
        each adjustment or readjustment of the Conversion Rate as a result of the
        events
        described in this Section 1.6, the Borrower, at its expense, shall promptly
        compute such adjustment or readjustment and prepare and furnish to the Holder
        of
        a certificate setting forth such adjustment or readjustment and showing in
        detail the facts upon which such adjustment or readjustment is
        based.  The Borrower shall, upon the written request at any time of
        the Holder, furnish to such Holder a like certificate setting forth (i) such
        adjustment or readjustment, (ii) the Conversion Rate at the time in effect
        and
        (iii) the number of shares of Preferred Stock and the amount, if any, of
        other
        securities or property which at the time would be received upon conversion
        of
        this note.

       

      1.7     
        Trading Market Limitations.
Unless permitted
        by the applicable rules and regulations of the
        principal securities market on which the Preferred Stock is then listed or
        traded, in no event shall the Borrower issue upon conversion of or otherwise
        pursuant to this Note and the other convertible securities issued pursuant
        to
        the Purchase Agreement more than the maximum number of shares of Preferred
        Stock
        that the Borrower can issue pursuant to any rule of the principal United
        States
        securities market on which the Preferred Stock is then traded (the
“Maximum Share Amount”), which, as of the Issue Date shall be
        19.99% of the total shares outstanding on the Issue Date), subject to equitable
        adjustment from time to time for stock splits, stock dividends, combinations,
        capital reorganizations and similar events relating to the Preferred Stock
        occurring after the date hereof.  Once the Maximum Share Amount has
        been issued (the date of which is hereinafter referred to as the
“Maximum Conversion Date”), if the Borrower fails to eliminate
        any prohibitions under applicable law or the rules or regulations of any
        stock
        exchange, interdealer quotation system or other self-regulatory organization
        with jurisdiction over the Borrower or any of its securities on the Borrower’s
        ability to issue shares of Preferred Stock in excess of the Maximum Share
        Amount
        (a “Trading Market Prepayment Event”), in lieu of any further
        right to convert this Note, and in full satisfaction of the Borrower’s
        obligations under this Note, the Borrower shall pay to the Holder, within
        fifteen (15) business days of the Maximum Conversion Date (the “Trading
        Market Prepayment Date”), an amount equal to 130% times the
sum of (a) the then outstanding principal amount of
        this Note immediately
        following the Maximum Conversion Date, plus (b) accrued and unpaid
        interest on the unpaid principal amount of this Note to the Trading Market
        Prepayment Date, plus (c) Default Interest, if any, on the amounts
        referred to in clause (a) and/or (b) above, plus (d) any optional amounts
        that may be added thereto at the Maximum Conversion Date by the Holder in
        accordance with the terms hereof (the then outstanding principal amount of
        this
        Note immediately following the Maximum Conversion Date, plus the amounts
        referred to in clauses (b), (c) and (d) above shall collectively be referred
        to
        as the “Remaining Convertible Amount”).  With respect
        to each Holder of Note, the Maximum Share Amount shall refer to such Holder’s
prorata share thereof determined in accordance with Section 4.8
        below.  In the event that the sum of (x) the aggregate number of
        shares of Preferred Stock issued upon conversion of this Note and the other
        convertible securities issued pursuant to the Purchase Agreement plus (y)
        the aggregate number of shares of Preferred Stock that remain issuable upon
        conversion of this Note and the other convertible securities issued pursuant
        to
        the Purchase Agreement, represents at least one hundred percent (100%) of
        the
        Maximum Share Amount (the “Triggering Event”), the Borrower
        will use its best efforts to seek and obtain Shareholder Approval (or obtain
        such other relief as will allow conversions hereunder in excess of the Maximum
        Share Amount) as soon as practicable following the Triggering Event and before
        the Maximum Conversion Date.  As used herein, “Shareholder
        Approval” means approval by the shareholders of the Borrower to
        authorize the issuance of the full number of shares of Preferred Stock which
        would be issuable upon full conversion of the then outstanding Note but for
        the
        Maximum Share Amount.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      1.8     Status
        as Shareholder.  Upon submission of a
        Notice of Conversion by a Holder, (i) the shares covered thereby (other than
        the
        shares, if any, which cannot be issued because their issuance would exceed
        such
        Holder’s allocated portion of the Reserved Amount or Maximum Share Amount) shall
        be deemed converted into shares of Preferred Stock and (ii) the Holder’s rights
        as a Holder of such converted portion of this Note shall cease and terminate,
        excepting only the right to receive certificates for such shares of Preferred
        Stock and to any remedies provided herein or otherwise available at law or
        in
        equity to such Holder because of a failure by the Borrower to comply with
        the
        terms  of this Note.  Notwithstanding the foregoing, if a
        Holder has not received certificates for all shares of Preferred Stock prior
        to
        the tenth (10th) business day after the expiration of the Deadline with respect
        to a conversion of any portion of this Note for any reason, then (unless
        the
        Holder otherwise elects to retain its status as a holder of Preferred Stock
        by
        so notifying the Borrower) the Holder shall regain the rights of a Holder
        of
        this Note with respect to such unconverted portions of this Note and the
        Borrower shall, as soon as practicable, return such unconverted Note to the
        Holder or, if this note has not been surrendered, adjust its records to reflect
        that such portion of this Note has not been converted.  In all cases,
        the Holder shall retain all of its rights and remedies (including, without
        limitation, (i) the right to receive Conversion Default Payments pursuant
        to
        Section 1.3 to the extent required thereby for such Conversion Default and
        any
        subsequent Conversion Default and (ii) the right to have the Conversion Rate
        with respect to subsequent conversions determined in accordance with Section
        1.3) for the Borrower’s failure to convert this Note.

       

       

      ARTICLE
        II.
CERTAIN COVENANTS

       

      2.1    
        Distributions on Capital
        Stock.  So long as the Borrower shall
        have any obligation under this Note, the Borrower shall not without the Holder’s
        written consent (a) pay, declare or set apart for such payment, any dividend
        or
        other distribution (whether in cash, property or other securities) on shares
        of
        capital stock other than dividends on shares of Common Stock solely in the
        form
        of additional shares of Common Stock or (b) directly or indirectly or through
        any subsidiary make any other payment or distribution in respect of its capital
        stock except for distributions pursuant to any shareholders’ rights plan which
        is approved by a majority of the Borrower’s disinterested
        directors.

       

      2.2    
        Restriction on Stock
        Repurchases.  So long as the Borrower
        shall have any obligation under this Note, the Borrower shall not without
        the
        Holder’s written consent redeem, repurchase or otherwise acquire (whether for
        cash or in exchange for property or other securities or otherwise) in any
        one
        transaction or series of related transactions any shares of capital stock
        of the
        Borrower or any warrants, rights or options to purchase or acquire any such
        shares.

       

      2.3    
        Borrowings.  So
        long as the Borrower shall have any obligation under this Note, the Borrower
        shall not, without the Holder’s written consent, create, incur, assume or suffer
        to exist any liability for borrowed money, except (a) borrowings in existence
        or
        committed on the date hereof and of which the Borrower has informed Holder
        in
        writing prior to the date hereof, (b) indebtedness to trade creditors or
        financial institutions incurred in the ordinary course of business or (c)
        borrowings, the proceeds of which shall be used to repay this Note.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      2.4    
        Sale of
        Assets.  So long as the Borrower shall
        have any obligation under this Note, the Borrower shall not, without the
        Holder’s written consent, sell, lease or otherwise dispose of any significant
        portion of its assets outside the ordinary course of business.  Any
        consent to the disposition of any assets may be conditioned on a specified
        use
        of the proceeds of disposition.

       

      2.5    
        Advances and
        Loans.  So long as the Borrower shall
        have any obligation under this Note, the Borrower shall not, without the
        Holder’s written consent, lend money, give credit or make advances to any
        person, firm, joint venture or corporation, including, without limitation,
        officers, directors, employees, subsidiaries and affiliates of the Borrower,
        except loans, credits or advances (a) in existence or committed on the date
        hereof and which the Borrower has informed Holder in writing prior to the
        date
        hereof, (b) made in the ordinary course of business or (c) not in excess
        of
        $50,000.

       

      2.6    
        Contingent
        Liabilities.  So long as the Borrower
        shall have any obligation under this Note, the Borrower shall not, without
        the
        Holder’s written consent, assume, guarantee, endorse, contingently agree to
        purchase or otherwise become liable upon the obligation of any person, firm,
        partnership, joint venture or corporation, except by the endorsement of
        negotiable instruments for deposit or collection and except assumptions,
        guarantees, endorsements and contingencies (a) in existence or committed
        on the
        date hereof and which the Borrower has informed Holder in writing prior to
        the
        date hereof, and (b) similar transactions in the ordinary course of
        business.

       

       

      ARTICLE
        III.
EVENTS OF DEFAULT

       

      If
        any of
        the following events of default (each, an “Event of Default”)
        shall occur:

       

      3.1    
        Failure to Pay Principal or
        Interest.  The Borrower fails to pay the
        principal hereof or interest thereon when due on this Note, whether at maturity,
        upon a Trading Market Prepayment Event pursuant to Section 1.7, upon
        acceleration or otherwise;

       

      3.2    
        Conversion and the
        Shares.  The Borrower fails to issue
        shares of Preferred Stock to the Holder (or announces or threatens that it
        will
        not honor its obligation to do so) upon exercise by the Holder of the conversion
        rights of the Holder in accordance with the terms of this Note (for a period
        of
        at least sixty (60) days, if such failure is solely as a result of the
        circumstances governed by Section 1.3 and the Borrower is using its best
        efforts
        to authorize a sufficient number of shares of Preferred Stock as soon as
        practicable), fails to transfer or cause its transfer agent to transfer
        (electronically or in certificated form) any certificate for shares of Preferred
        Stock issued to the Holder upon conversion of or otherwise pursuant to this
        Note
        as and when required by this Note or fails to remove any restrictive legend
        (or
        to withdraw any stop transfer instructions in respect thereof) on any
        certificate for any shares of Preferred Stock issued to the Holder upon
        conversion of or otherwise pursuant to this Note as and when required by
        this
        Note (or makes any announcement, statement or threat that it does not intend
        to
        honor the obligations described in this paragraph) and any such failure shall
        continue uncured (or any announcement, statement or threat not to honor its
        obligations shall not be rescinded in writing) for ten (10) days after the
        Borrower shall have been notified thereof in writing by the Holder;

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      3.3    
        Breach of
        Covenants.  The Borrower breaches any
        material covenant or other material term or condition contained in Sections
        1.3,
        1.6 or 1.7 of this Note, or Sections 7(d), 7(g), 7(h), 7(i), 7(k) or 8 of
        the
        Purchase Agreement and such breach continues for a period of ten (10) days
        after
        written notice thereof to the Borrower from the Holder;

       

      3.4    
        Breach of Representations and
        Warranties.  Any representation or
        warranty of the Borrower made herein or in any agreement, statement or
        certificate given in writing pursuant hereto or in connection herewith
        (including, without limitation, the Purchase Agreement), shall be false or
        misleading in any material respect when made and the breach of which has
        (or
        with the passage of time will have) a material adverse effect on the rights
        of
        the Holder with respect to this Note or the Purchase Agreement;

       

      3.5    
        Receiver or
        Trustee.  The Borrower or any subsidiary
        of the Borrower shall make an assignment for the benefit of creditors, or
        apply
        for or consent to the appointment of a receiver or trustee for it or for
        a
        substantial part of its property or business, or such a receiver or trustee
        shall otherwise be appointed;

       

      3.6    
        Judgments.  Any
        money judgment, writ or similar process shall be entered or filed against
        the
        Borrower or any subsidiary of the Borrower or any of its property or other
        assets for more than $50,000, and shall remain unvacated, unbonded or unstayed
        for a period of twenty (20) days unless otherwise consented to by the Holder,
        which consent will not be unreasonably withheld;

       

      3.7    
        Bankruptcy.  Bankruptcy,
        insolvency, reorganization or liquidation proceedings or other proceedings
        for
        relief under any bankruptcy law or any law for the relief of debtors shall
        be
        instituted by or against the Borrower or any subsidiary of the Borrower;
        or

       

      3.8    
        Default Under Other
        Securities.  An Event of Default has
        occurred and is continuing under any of the other securities issued pursuant
        to
        the Purchase Agreement then, upon the occurrence and during the continuation
        of
        any Event of Default specified in Section 3.1, 3.2, 3.3, 3.4, 3.6, 3.7, or
        3.9,
        at the option of the Holders of a majority of the aggregate principal amount
        of
        the outstanding Note or other securities issued pursuant to the Purchase
        Agreement exercisable through the delivery of written notice to the Borrower
        by
        such Holders (the “Default Notice”), and upon the occurrence of
        an Event of Default specified in Section 3.6 or 3.8, this note shall become
        immediately due and payable and the Borrower shall pay to the Holder, in
        full
        satisfaction of its obligations hereunder, an amount equal to the greater
        of (i)
        130% times the sum of (w) the then outstanding principal amount of
        this Note plus (x) accrued and unpaid interest on the unpaid principal
        amount of this Note to the date of payment (the “Mandatory Prepayment
        Date”) plus (y) Default Interest, if any, on the amounts
        referred to in clauses (w) (the then outstanding principal amount of this
        Note
        to the date of payment plus the amounts referred to in clauses (x)
        and  (y) shall collectively be known as the “Default
        Sum”) or (ii) the “parity value” of the Default Sum to be prepaid,
        where parity value means (a) the highest number of shares of Preferred Stock
        issuable upon conversion of or otherwise pursuant to such Default Sum in
        accordance with Article I, treating the Trading Day immediately preceding
        the
        Mandatory Prepayment Date as the “Conversion Date” for purposes of determining
        the lowest applicable Conversion Rate, unless the Default Event arises as
        a
        result of a breach in respect of a specific Conversion Date in which case
        such
        Conversion Date shall be the Conversion Date), multiplied by (b) the
        highest Closing Price for the Preferred Stock during the period beginning
        on the
        date of first occurrence of the Event of Default and ending one day prior
        to the
        Mandatory Prepayment Date (the “Default Amount”) and all other
        amounts payable hereunder shall immediately become due and payable, all without
        demand, presentment or notice, all of which hereby are expressly waived,
        together with all costs, including, without limitation, legal fees and expenses,
        of collection, and the Holder shall be entitled to exercise all other rights
        and
        remedies available at law or in equity.  If the Borrower fails to pay
        the Default Amount within five (5) business days of written notice that such
        amount is due and payable, then the Holder shall have the right at any time,
        so
        long as the Borrower remains in default (and so long and to the extent that
        there are sufficient authorized shares), to require the Borrower, upon written
        notice, to immediately issue, in lieu of the Default Amount, the number of
        shares of Preferred Stock of the Borrower equal to the Default Amount divided
        by
        the Conversion Rate then in effect.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        IV.
MISCELLANEOUS

       

      4.1    
        Failure or Indulgence Not
        Waiver.  No failure or delay on the part
        of the Holder in the exercise of any power, right or privilege hereunder
        shall
        operate as a waiver thereof, nor shall any single or partial exercise of
        any
        such power, right or privilege preclude other or further exercise thereof
        or of
        any other right, power or privileges.  All rights and remedies
        existing hereunder are cumulative to, and not exclusive of, any rights or
        remedies otherwise available.

       

      4.2     Notices.  Any
        notice herein required or permitted to be given shall be in writing and may
        be
        personally served or delivered by courier or sent by United States mail and
        shall be deemed to have been given upon receipt if personally served (which
        shall include telephone line facsimile transmission) or sent by courier or
        three
        (3) days after being deposited in the United States mail, certified, with
        postage pre-paid and properly addressed, if sent by mail.  For the
        purposes hereof, the address of the Holder shall be as shown on the records
        of
        the Borrower; and the address of the Borrower shall be 6303 Beverly Hill,
        Suite
        210, Houston, Texas 77057, with a copy not constituting notice sent to Douglas
        J, Dillon, Andrews Kurth, LLP, 600 Travis, Houston, Texas 77002.  Both
        the Holder and the Borrower may change the address for service by service
        of
        written notice to the other as herein provided.

       

      4.3    
        Amendments.  This
        Note and any provision hereof may only be amended by an instrument in writing
        signed by the Borrower and the Holder.  The term “Note” and all
        reference thereto, as used throughout this instrument, shall mean this
        instrument (and the other Note issued pursuant to the Purchase Agreement)
        as
        originally executed, or if later amended or supplemented, then as so amended
        or
        supplemented.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      4.4    
        Assignability.  This
        Note shall be binding upon the Borrower and its successors and assigns, and
        shall inure to be the benefit of the Holder and its successors and
        assigns.  Each transferee of this Note must be an “accredited
        investor” (as defined in Rule 501(a) of the 1933
        Act).  Notwithstanding anything in this Note to the contrary, this
        Note may be pledged as collateral in connection with a bonafide
        margin account or other lending arrangement.

       

      4.5    
        Cost of
        Collection.  If default is made in the
        payment of this Note, the Borrower shall pay the Holder hereof costs of
        collection, including reasonable attorneys’ fees.

       

      4.6    
        Governing
        Law.  THIS NOTE SHALL BE ENFORCED,
        GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA
        APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE,
        WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.  THE BORROWER
        HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL
        COURTS
        LOCATED IN HOUSTON, TEXAS WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS
        NOTE,
        THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS
        CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE
        OF AN
        INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR
        PROCEEDING.  BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A
        PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
        SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
        PROCEEDING.  NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE
        PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  BOTH PARTIES AGREE THAT
        A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE
        CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT
        OR IN ANY OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN
        ANY DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND
        EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN
        CONNECTION WITH SUCH DISPUTE.

       

      4.7     Certain
        Amounts.  Whenever pursuant to this Note
        the Borrower is required to pay an amount in excess of the outstanding principal
        amount (or the portion thereof required to be paid at that time) plus accrued
        and unpaid interest plus Default Interest on such interest, the Borrower
        and the
        Holder agree that the actual damages to the Holder from the receipt of cash
        payment on this Note may be difficult to determine and the amount to be so
        paid
        by the Borrower represents stipulated damages and not a penalty and is intended
        to compensate the Holder in part for loss of the opportunity to convert this
        Note and to earn a return from the sale of shares of Preferred Stock acquired
        upon conversion of this Note at a price in excess of the price paid for such
        shares pursuant to this Note.  The Borrower and the Holder hereby
        agree that such amount of stipulated damages is not plainly disproportionate
        to
        the possible loss to the Holder from the receipt of a cash payment without
        the
        opportunity to convert this Note into shares of Preferred Stock.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      4.8    
        Allocations of Maximum Share Amount and Reserved
        Amount.  The Maximum Share Amount and
        Reserved Amount shall be allocated pro rata among the Holders of Note based
        on
        the principal amount of such Note issued to each Holder.  Each
        increase to the Maximum Share Amount and Reserved Amount shall be allocated
        pro
        rata among the Holders of Note based on the principal amount of such Note
        held
        by each Holder at the time of the increase in the Maximum Share Amount or
        Reserved Amount.  In the event a Holder shall sell or otherwise
        transfer any of such Holder’s Note, each transferee shall be allocated a pro
        rata portion of such transferor’s Maximum Share Amount and Reserved
        Amount.  Any portion of the Maximum Share Amount or Reserved Amount
        which remains allocated to any person or entity which does not hold any Note
        shall be allocated to the remaining Holders of Note, pro rata based on the
        principal amount of such Note then held by such Holders.

       

      4.9    
        Damages
        Shares.  The shares of Preferred Stock
        that may be issuable to the Holder pursuant to Sections 1.3 and 1.4(f)
        (“Damages Shares”) shall be treated as Preferred Stock issuable
        upon conversion of this Note for all purposes hereof and shall be subject
        to all
        of the limitations and afforded all of the rights of the other shares of
        Preferred Stock issuable hereunder.  For purposes of calculating
        interest payable on the outstanding principal amount hereof, except as otherwise
        provided herein, amounts convertible into Damages Shares (“Damages
        Amounts”) shall not bear interest but must be converted prior to the
        conversion of any outstanding principal amount hereof, until the outstanding
        Damages Amounts is zero.

       

      4.10  
        Denominations.  At
        the request of the Holder, upon surrender of this Note, the Borrower shall
        promptly issue a new Note in the aggregate outstanding principal amount hereof,
        in the form hereof, in such denominations as the Holder shall
        request.

       

      4.11  
        Purchase
        Agreement.  By its acceptance of this
        Note, each Holder agrees to be bound by the applicable terms of the Purchase
        Agreement.

       

      4.12  
        Notice of Corporate
        Events.  Except as otherwise provided
        below, the Holder of this Note shall have no rights as a Holder of Preferred
        Stock unless and only to the extent that it converts this Note into Preferred
        Stock.  The Borrower shall provide the Holder with prior notification
        of any meeting of the Borrower’s shareholders (and copies of proxy materials and
        other information sent to shareholders).  In the event of any taking
        by the Borrower of a record of its shareholders for the purpose of determining
        shareholders who are entitled to receive payment of any dividend or other
        distribution, any right to subscribe for, purchase or otherwise acquire
        (including by way of merger, consolidation, reclassification or
        recapitalization) any share of any class or any other securities or property,
        or
        to receive any other right, or for the purpose of determining shareholders
        who
        are entitled to vote in connection with any proposed sale, lease or conveyance
        of all or substantially all of the assets of the Borrower or any proposed
        liquidation, dissolution or winding up of the Borrower, the Borrower shall
        mail
        a notice to the Holder, at least twenty (20) days prior to the record date
        specified therein (or thirty (30) days prior to the consummation of the
        transaction or event, whichever is earlier), of the date on which any such
        record is to be taken for the purpose of such dividend, distribution, right
        or
        other event, and a brief statement regarding the amount and character of
        such
        dividend, distribution, right or other event to the extent known at such
        time.  The Borrower shall make a public announcement of any event
        requiring notification to the Holder hereunder substantially simultaneously
        with
        the notification to the Holder in accordance with the terms of this Section
        4.12.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      4.13 
        Remedies.  The
        Borrower acknowledges that a breach by it of its obligations hereunder will
        cause irreparable harm to the Holder, by vitiating the intent and purpose
        of the
        transaction contemplated hereby.  Accordingly, the Borrower
        acknowledges that the remedy at law for a breach of its obligations under
        this
        Note will be inadequate and agrees, in the event of a breach or threatened
        breach by the Borrower of the provisions of this Note, that the Holder shall
        be
        entitled, in addition to all other available remedies at law or in equity,
        and
        in addition to the penalties assessable herein, to an injunction or injunctions
        restraining, preventing or curing any breach of this Note and to enforce
        specifically the terms and provisions thereof, without the necessity of showing
        economic loss and without any bond or other security being
        required.

       

       

      ARTICLE
        V.
OPTIONAL PREPAYMENT

       

      5.1    
        Optional
        Prepayment.  Notwithstanding anything to
        the contrary contained in this Note, the Borrower shall have the unilateral
        right at its sole election to prepay all of this outstanding Note in accordance
        with this Section 5.1.  Any notice of prepayment hereunder (an
“Optional Prepayment”) shall be delivered to the Holders of
        this Note at their registered addresses appearing on the books and records
        of
        the Borrower and shall state (1) that the Borrower is exercising its right
        to
        prepay all of this Note issued on the Issue Date and (2) the date of prepayment
        (the “Optional Prepayment Notice”).  On the date
        fixed for prepayment (the “Optional Prepayment Date”), the
        Borrower shall make payment of the unpaid principal balance and accrued interest
        and other amounts, if any, owing under the terms of this Note.

       

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, Borrower has caused this Note to be signed in its name
        by its duly authorized officer this 14th day of
        September,
        2006.

       

      
        	 	 	
                EXOBOX
                  TECHNOLOGIES CORP.

              
	 	 	 
	 	 	 
	 	 	 
	 	
                By:

              	 
	 	 	
                Robert
                  B. Dillon, President

              

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

       

      NOTICE
        OF CONVERSION

       

      (To
        be
        Executed by the Registered Holder

       

      in
        order
        to Convert this note)

       

      The
        undersigned hereby irrevocably elects to convert $__________ principal amount
        of
        this note (defined below) into shares of common stock, par value $.001 per
        share
        (“Preferred Stock”), of Exobox Technologies Corp., a Nevada
        corporation (the “Borrower”) according to the conditions of the
        convertible Note of the Borrower dated as of September ___, 2006 (the “Note”),
        as of the date written below.  If securities are to be issued in the
        name of a person other than the undersigned, the undersigned will pay all
        transfer taxes payable with respect thereto and is delivering herewith such
        certificates.  No fee will be charged to the Holder for any
        conversion, except for transfer taxes, if any.  A copy of each Note is
        attached hereto (or evidence of loss, theft or destruction
        thereof).

       

      The
        Borrower shall electronically transmit the Preferred Stock issuable pursuant
        to
        this Notice of Conversion to the account of the undersigned or its nominee
        with
        DTC through its Deposit Withdrawal Agent Commission system (“DWAC
        Transfer”).

       

      
        	
                Name
                  of DTC Prime Broker:

              	 
	
                Account
                  Number:

              	 

      

      In
        lieu
        of receiving shares of Preferred Stock issuable pursuant to this Notice of
        Conversion by way of a DWAC Transfer, the undersigned hereby requests that
        the
        Borrower issue a certificate or certificates for the number of shares of
        Preferred Stock set forth below (which numbers are based on the Holder’s
        calculation attached hereto) in the name(s) specified immediately below or,
        if
        additional space is necessary, on an attachment hereto:

       

      
        	
                Name:

              	 
	
                Address:

              	 

      

      The
        undersigned represents and warrants that all offers and sales by the undersigned
        of the securities issuable to the undersigned upon conversion of this Note
        shall
        be made pursuant to registration of the securities under the Securities Act
        of
        1933, as amended (the “Act”), or pursuant to an exemption from
        registration under the Act.

       

      
        	
                Date
                  of Conversion:

              	 
	
                Applicable
                  Conversion Rate:

              	 
	
                Number
                  of Shares of Preferred Stock to be Issued Pursuant to 
                  

              
	
                Conversion
                  of this note:

              	 
	
                Signature:

              	 
	
                Name:

              	 
	
                Address:

              	 

      

      The
        Borrower shall issue and deliver shares of Preferred Stock to an overnight
        courier not later than three business days following receipt of the original
        Note(s) to be converted, and shall make payments pursuant to this Note for
        the
        number of business days such issuance and delivery is late.

    

     

    
       

      18ex10_10.htm

    
      

    

    
      Exhibit
        10.10

       

      THIS
        WARRANT AND THE SHARES OF COMMON STOCK WHICH MAY BE PURCHASED UPON THE EXERCISE
        OF THIS WARRANT HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND HAVE NOT BEEN
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
        STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE,
        PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION
        OF
        COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH SALE, OFFER,
        PLEDGE OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
        REQUIREMENTS OF THE ACT AND OF ANY APPLICABLE STATE SECURITIES LAWS. UPON
        THE
        FULFILLMENT OF CERTAIN OF SUCH CONDITIONS EXOBOX TECHNOLOGIES CORP. HAS AGREED
        TO DELIVER TO THE HOLDER HEREOF A NEW WARRANT OR TO THE HOLDER THEREOF A
        NEW
        CERTIFICATE FOR THE SHARES ISSUABLE HEREUNDER, AS APPLICABLE, IN EACH CASE
        NOT
        BEARING THIS LEGEND, FOR THE WARRANT OR SUCH SHARES, AS THE CASE MAY BE,
        REGISTERED IN THE NAME OF THE HOLDER HEREOF OR THEREOF. A COPY OF THE AGREEMENT
        MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD
        OF
        THIS WARRANT OR OF THE SHARES ISSUABLE HEREUNDER TO THE SECRETARY OF EXOBOX
        TECHNOLOGIES CORP.

      

      EXOBOX
        TECHNOLOGIES CORP.

      COMMON
        STOCK PURCHASE WARRANT

      
        
          

        

      

      

      
        	
                No.
                  1

              	 	
                Void
                  after October 31, 2010

              

      

      

      THIS
        CERTIFIES THAT, for value received, ____________________________ (the "Holder")
        is entitled at any time during the 48 month period commencing on October
        31,
        2006 (“Initial Warrant Exercise Date”) to subscribe for and purchase Ninety
        Thousand (90,000) shares of the fully paid and nonassessable Common Stock,
        $.001
        par value (the "Shares"), of EXOBOX TECHNOLOGIES CORP., a Nevada corporation
        (the "Company"), at the per share exercise price of $0.20 (the "Exercise
        Price"), subject to the provisions and upon the terms and conditions hereinafter
        set forth.

      

      
        	
                 

              	
                1.

              	
                Method
                  of Exercise; Payment.

              

      

      

      
        	
                 

              	
                a.

              	
                Cash
                  Exercise. The purchase rights represented by this Warrant
                  may
                  be exercised by the Holder, in whole or in part, by the surrender
                  of this
                  Warrant (with the notice of exercise form attached hereto as Exhibit
                  A
                  duly executed) at the principal office of the Company, and by the
                  payment
                  to the Company, by certified, cashier's or other check acceptable
                  to the
                  Company or by wire transfer to an account designated by the Company,
                  of an
                  amount equal to the aggregate Exercise Price of the Shares being
                  purchased.

              

      

      

      
        	
                 

              	
                b.

              	
                Stock
                  Certificates. In the event of any exercise of the rights
                  represented by this Warrant, certificates for the Shares so purchased
                  shall be delivered to the Holder within a reasonable time and,
                  unless this
                  Warrant has been fully exercised or has expired, a new Warrant
                  representing the shares with respect to which this Warrant shall
                  not have
                  been exercised shall also be issued to the Holder within such
                  time.

              

      

      

      
        	
                 

              	
                2.

              	
                Stock
                  Fully Paid; Reservation of Shares. All of the Shares issuable
                  upon the exercise of the rights represented by this Warrant will,
                  upon
                  issuance and receipt of the Exercise Price therefor, be fully paid
                  and
                  nonassessable, and free from all taxes, liens and charges with
                  respect to
                  the issue thereof. During the period within which the rights represented
                  by this Warrant may be exercised, the Company shall at all times
                  have
                  authorized and reserved for issuance sufficient shares of its Common
                  Stock
                  to provide for the exercise of the rights represented by this
                  Warrant.

              

      

      

      
        	
                 

              	
                3.

              	
                Adjustments.
                  Subject to the provisions of Section 11 hereof, the number and
                  kind of
                  securities purchasable upon the exercise of this Warrant and the
                  Exercise
                  Price therefor shall be subject to adjustment from time to time
                  upon the
                  occurrence of certain events, as
                  follows:

              

      

      
        
          
          

        

        
          Page
            1 of
            7

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                a.

              	
                Reclassification.
                  In the case of any reclassification or change of securities of
                  the class
                  issuable upon exercise of this Warrant (other than a change in
                  par value,
                  or from par value to no par value, or from no par value to par
                  value, or
                  as a result of a subdivision or combination), or in case of any
                  merger of
                  the Company with or into another corporation (other than a merger
                  with
                  another corporation in which the Company is the acquiring and the
                  surviving corporation and which does not result in any reclassification
                  or
                  change of outstanding securities issuable upon exercise of this
                  Warrant),
                  or in case of any sale of all or substantially all of the assets
                  of the
                  Company, the Company, or such successor or purchasing corporation,
                  as the
                  case may be, shall duly execute and deliver to the holder of this
                  Warrant
                  a new Warrant (in form and substance reasonably satisfactory to
                  the holder
                  of this Warrant), or the Company shall make appropriate provision
                  without
                  the issuance of a new Warrant, so that the holder of this Warrant
                  shall
                  have the right to receive, at a total purchase price not to exceed
                  that
                  payable upon the exercise of the unexercised portion of this Warrant,
                  and
                  in lieu of the shares of Common Stock theretofore issuable upon
                  exercise
                  of this Warrant, (i) the kind and amount of shares of stock, other
                  securities, money and property receivable upon such reclassification,
                  change, merger or sale by a holder of the number of shares of Common
                  Stock
                  then purchasable under this Warrant, or (ii) in the case of such
                  a merger
                  or sale in which the consideration paid consists all or in part
                  of assets
                  other than securities of the successor or purchasing corporation,
                  at the
                  option of the Holder of this Warrant, the securities of the successor
                  or
                  purchasing corporation having a value at the time of the transaction
                  equivalent to the fair market value of the Common Stock at the
                  time of the
                  transaction. The provisions of this subparagraph (a) shall similarly
                  apply
                  to successive reclassifications, changes, mergers and
                  transfers.

              

      

      

      
        	
                 

              	
                b.

              	
                Stock
                  Splits, Dividends and Combinations. In the event that the
                  Company shall at any time subdivide the outstanding shares of Common
                  Stock
                  or shall issue a stock dividend on its outstanding shares of Common
                  Stock
                  the number of Shares issuable upon exercise of this Warrant immediately
                  prior to such subdivision or to the issuance of such stock dividend
                  shall
                  be proportionately increased, and the Exercise Price shall be
                  proportionately decreased, and in the event that the Company shall
                  at any
                  time combine the outstanding shares of Common Stock the number
                  of Shares
                  issuable upon exercise of this Warrant immediately prior to such
                  combination shall be proportionately decreased, and the Exercise
                  Price
                  shall be proportionately increased, effective at the close of business
                  on
                  the date of such subdivision, stock dividend or combination, as
                  the case
                  may be.

              

      

      

      
        	
                 

              	
                4.

              	
                Notice
                  of Adjustments. Whenever the number of Shares purchasable
                  hereunder or the Exercise Price thereof shall be adjusted pursuant
                  to
                  Section 3 hereof, the Company shall provide notice to the Holder
                  setting
                  forth, in reasonable detail, the event requiring the adjustment,
                  the
                  amount of the adjustment, the method by which such adjustment was
                  calculated, and the number and class of shares which may be purchased
                  thereafter and the Exercise Price therefor after giving effect
                  to such
                  adjustment.

              

      

      

      
        	
                 

              	
                5.

              	
                Fractional
                  Shares. Whether or not the number of shares purchasable upon
                  the exercise of a Warrant is adjusted pursuant to Section 3 of
                  this
                  Agreement, this Warrant may not be exercised for fractional shares
                  and the
                  Company shall not be required to issue fractions of Shares upon
                  exercise
                  of the Warrants or to distribute Shares certificates that evidence
                  fractional Shares.  In lieu of fractional Shares, there shall be
                  returned to exercising Registered Holders of the Warrants upon
                  such
                  exercise an amount in cash, in United States dollars, equal to
                  the amount
                  in excess of that required to purchase the largest number of full
                  Shares.

              

      

      

      
        	
                 

              	
                6.

              	
                Representations
                  of the Company. The Company represents that all corporate
                  actions on the part of the Company, its officers, directors and
                  shareholders necessary for the sale and issuance of the Shares
                  pursuant
                  hereto and the performance of the Company's obligations hereunder
                  were
                  taken prior to and are effective as of the effective date of this
                  Warrant.

              

      

      
        
          
          

        

        
          Page
            2 of
            7

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                7.

              	
                Representations
                  and Warranties by the Holder. The Holder represents and
                  warrants to the Company as follows:

              

      

      

      
        	
                 

              	
                a.

              	
                This
                  Warrant and the Shares issuable upon exercise thereof are being
                  acquired
                  for its own account, for investment and not with a view to, or
                  for resale
                  in connection with, any distribution or public offering thereof
                  within the
                  meaning of the Securities Act of 1933, as amended (the "Act").
                  Upon
                  exercise of this Warrant, the Holder shall, if so requested by
                  the
                  Company, confirm in writing, in a form satisfactory to the Company,
                  that
                  the securities issuable upon exercise of this Warrant are being
                  acquired
                  for investment and not with a view toward distribution or
                  resale.

              

      

      

      
        	
                 

              	
                b.

              	
                The
                  Holder understands that the Warrant and the Shares have not been
                  registered under the Act by reason of their issuance in a transaction
                  exempt from the registration and prospectus delivery requirements
                  of the
                  Act pursuant to Section 4(2) thereof, and that they must be held
                  by the
                  Holder indefinitely, and that the Holder must therefore bear the
                  economic
                  risk of such investment indefinitely, unless a subsequent disposition
                  thereof is registered under the Act or is exempted from such
                  registration.

              

      

      

      
        	
                 

              	
                c.

              	
                The
                  Holder has such knowledge and experience in financial and business
                  matters
                  that it is capable of evaluating the merits and risks of the purchase
                  of
                  this Warrant and the Shares purchasable pursuant to the terms of
                  this
                  Warrant and of protecting its interests in connection
                  therewith.

              

      

      

      
        	
                 

              	
                d.

              	
                The
                  Holder is able to bear the economic risk of the purchase of the
                  Shares
                  pursuant to the terms of this
                  Warrant.

              

      

      

      
        	
                 

              	
                8.

              	
                Restrictive
                  Legend. The Shares (unless registered under the Act) shall
                  be
                  stamped or imprinted with a legend in substantially the following
                  form:
                  THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
                  INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
                  OR
                  DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED
                  IN THE
                  ABSENCE OF SUCH REGISTRATION OR UNLESS THE COMPANY RECEIVES AN
                  OPINION OF
                  COUNSEL REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR TRANSFER
                  IS
                  EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS
                  OF THE
                  ACT. UPON THE FULFILLMENT OF CERTAIN OF SUCH CONDITIONS EXOBOX
                  TECHNOLOGIES CORP. HAS AGREED TO DELIVER TO THE HOLDER HEREOF A
                  NEW
                  CERTIFICATE NOT BEARING THIS LEGEND FOR THE SECURITIES REPRESENTED
                  HEREBY
                  REGISTERED IN THE NAME OF THE HOLDER HEREOF. A COPY OF THE AGREEMENT
                  MAY
                  BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF
                  RECORD OF
                  THIS CERTIFICATE TO THE SECRETARY OF EXOBOX TECHNOLOGIES
                  CORP.

              

      

      

      
        	
                 

              	
                9.

              	
                Restrictions
                  Upon Transfer and Removal of
                  Legend.

              

      

      

      
        	
                 

              	
                a.

              	
                The
                  Company need not register a transfer of this Warrant or Shares
                  bearing the
                  restrictive legend set forth in Section 8 hereof, unless the conditions
                  specified in such legend are satisfied. The Company may also instruct
                  its
                  transfer agent not to register the transfer of the Shares, unless
                  one of
                  the conditions specified in the legend referred to in Section 8
                  hereof is
                  satisfied.

              

      

      

      
        	
                 

              	
                b.

              	
                Notwithstanding
                  the provisions of paragraph (a) above, no opinion of counsel shall
                  be
                  necessary for a transfer without consideration by any holder (i)
                  if such
                  holder is a partnership, to a partner or retired partner of such
                  partnership who retires after the date hereof or to the estate
                  of any such
                  partner or retired partner, or (ii) if such holder is a corporation,
                  to a
                  shareholder of such corporation, or to any other corporation under
                  common
                  control, direct or indirect, with such
                  holder.

              

      

      
        
          
          

        

        
          Page
            3 of
            7

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                10.

              	
                Rights
                  of Shareholders. No holder of this Warrant shall be entitled,
                  as a Warrant holder, to vote or receive dividends or be deemed
                  the holder
                  of any Shares or any other securities of the Company which may
                  at any time
                  be issuable on the exercise hereof for any purpose, nor shall anything
                  contained herein be construed to confer upon the holder of this
                  Warrant,
                  as such, any of the rights of a stockholder of the Company or any
                  right to
                  vote for the election of directors or upon any matter submitted
                  to
                  shareholders at any meeting thereof, or to give or withhold consent
                  to any
                  corporate action (whether upon any recapitalization, issuance of
                  stock,
                  reclassification of stock, change of par value, consolidation,
                  merger,
                  conveyance, or otherwise) or to receive notice of meetings, or
                  to receive
                  dividends or subscription rights or otherwise until the Warrant
                  shall have
                  been exercised and the Shares purchasable upon the exercise hereof
                  shall
                  have become deliverable, as provided
                  herein.

              

      

      

      
        	
                 

              	
                11.

              	
                Redemption

              

      

      

      
        	
                 

              	
                a.

              	
                Price  At
                  any time on or after the Initial Warrant Exercise Date the Company
                  may
                  redeem the Warrants, at its option, upon thirty days’ notice at a price of
                  $.001 per Warrant provided that the average closing bid price on
                  the
                  over-the-counter market for the Shares for 10 consecutive trading
                  days
                  immediately prior to the date of notice of redemption shall have
                  been
                  $2.50 or higher.

              

      

      

      
        	
                 

              	
                b.

              	
                Notice
                  of Redemption   If the Company exercises its
                  right to redeem the Warrants, it shall mail a notice of redemption
                  to
                  Registered Holders of the Warrants proposed for redemption, first
                  class,
                  postage prepaid, not later than thirty days before the date fixed
                  for
                  redemption, at the Registered Holders’ last addresses as shall appear on
                  the records of the Warrant Agent.  Any notice mailed in the
                  manner provided herein shall be conclusively presumed to have been
                  duly
                  given whether or not the Registered Holder receives such
                  notice.

              

      

      

      
        	
                 

              	
                c.

              	
                Contents
                  of Notice  The notice of redemption shall specify
                  the redemption price, date fixed for redemption, the place where
                  the
                  Warrant shall be delivered and the redemption price shall be paid,
                  and
                  that the right to exercise the Warrant shall terminate at 5:00
                  p.m.
                  (Nevada time) on the business day immediately preceding the date
                  fixed for
                  redemption.  The date fixed for the redemption of the Warrants
                  shall be the Redemption Date.

              

      

      

      
        	
                 

              	
                d.

              	
                Early
                  Redemption  The Warrants may be called
                  for redemption prior to the redemption date with respect to an
                  entire
                  class or classes, or in the alternative, with respect to any portion
                  of a
                  class or classes (and if called with respect to a portion of a
                  class, such
                  call shall be on a pro rata basis as to the holdings of each Registered
                  Holder within such class).

              

      

      

      
        	
                 

              	
                e.

              	
                Effect
                  of Redemption  Any right to exercise a Warrant
                  shall terminate at 5:00 p.m. (Nevada time) on the business day
                  immediately
                  preceding the Redemption Date.  On and after the Redemption
                  Date, Holders of the Warrants shall have no further rights except
                  to
                  receive, upon surrender of the Warrant, the redemption price of
                  $.001,
                  without interest, per Warrant.

              

      

      

      
        	
                 

              	
                12.

              	
                Notices.
                  All notices and other communications required or permitted hereunder
                  shall
                  be in writing, shall be effective when given, and shall in any
                  event be
                  deemed to be given upon receipt or, if earlier, (a) five (5) days
                  after
                  deposit with the U.S. Postal Service or other applicable postal
                  service,
                  if delivered by first class mail, postage prepaid, (b) upon delivery,
                  if
                  delivered by hand, (c) one business day after the business day
                  of deposit
                  with Federal Express or similar overnight courier, freight prepaid
                  or (d)
                  one business day after the business day of facsimile transmission,
                  if
                  delivered by facsimile transmission with copy by first class mail,
                  postage
                  prepaid, and shall be addressed (i) if to the Holder, at the Holder's
                  address as set forth on the books of the Company, and (ii) if to
                  the
                  Company, at the address of its principal corporate offices (attention:
                  President) or at such other address as a party may designate by
                  ten days
                  advance written notice to the other party pursuant to the provisions
                  above.

              

      

      

      
        	
                 

              	
                13.

              	
                Registration
                  Rights Agreement. The registration rights of the Holder
                  (including Holders' successors) with respect to the stock underlying
                  this
                  warrant will be the same as granted to the holders of the Company's
                  Common
                  Stock.

              

      

      
        
          
          

        

        
          Page
            4 of
            7

          
            

          

        

        
          
          

        

      

      

      
        	
                 

              	
                14.

              	
                Governing
                  Law. This Warrant and all actions arising out of or in
                  connection with this Agreement shall be governed by and construed
                  in
                  accordance with the laws of the State of Nevada, without regard
                  to the
                  conflicts of law provisions of the State of Nevada or of any other
                  state.

              

      

      

      
        	
                 

              	
                15.

              	
                Entire
                  Agreement; Modification; Waivers  This Agreement
                  contains the entire agreement of the parties, and supersedes any
                  prior
                  agreements with respect to its subject matter. Except for the provisions
                  of subsection 4.2, the Warrant Agent and the Company, by supplemental
                  agreement, may make any changes in this Agreement (i) that they
                  shall deem
                  appropriate to cure any ambiguity or to correct any defective or
                  inconsistent provision or manifest mistake or error herein contained;
                  or
                  (ii) that they may deem necessary or desirable and that shall not
                  adversely affect the interests of the Registered Holders of Warrant
                  Certificates (this provision, for instance, shall permit the Exercise
                  Price to be decreased at the Company’s
                  option).

              

      

      

      
        	
                 

              	
                16.

              	
                Jurisdiction
                  and Venue  The courts of the State of Nevada,
                  sitting in the City of Las Vegas, (the “Nevada Courts”) shall have
                  exclusive jurisdiction to hear, adjudicate, decide, determine and
                  enter
                  final judgment in any action, suit, proceeding, case, controversy
                  or
                  dispute, whether at law or in equity or both, and whether in contract
                  or
                  tort or both, arising out of or related to this Agreement, or the
                  construction or enforcement hereof or thereof (any such action,
                  suit,
                  proceeding, case, controversy or dispute, a “Related
                  Action”).  The Company and the Registered Holder hereby
                  irrevocably consent and submit to the exclusive personal jurisdiction
                  of
                  the Nevada Courts to hear, adjudicate, decide, determine and enter
                  final
                  judgment in any Related Action.  The Company and the Registered
                  Holder hereby irrevocably waive and agree not to assert any right
                  or claim
                  that it is not personally subject to the jurisdiction of the Nevada
                  Courts
                  in any Related Action, including any claim of forum non conveniens
                  or that the Nevada Courts are not the proper venue or form
                  to
                  adjudicate any Related Action.  If any Related Action is brought
                  or maintained in any court other than the Nevada Courts, then that
                  court
                  shall, at the request of the Company or the Registered Holder,
                  dismiss
                  that action.

              

      

      

      
        	
                 

              	
                17.

              	
                Specific
                  Performance  The Company hereby acknowledges and
                  agrees that it is difficult, if not impossible to measure in money
                  the
                  damages that will accrue to the Registered Holder by reason of
                  a failure
                  to issue the Shares under this Agreement, and that the Registered
                  Holder
                  may seek to specifically enforce the Company’s obligation to issue the
                  Shares.  Therefore, if the Registered Holder shall institute any
                  action or proceeding to enforce the provisions hereof, the Company
                  hereby
                  waives all claims or defenses therein that the Registered Holder
                  has an
                  adequate remedy at law, and hereby agrees not to assert or otherwise
                  raise
                  any such claim or defense.

              

      

      

      
        	
                 

              	
                18.

              	
                Waiver
                  of Jury Trial  The Company and the Registered
                  Holder hereby waive trial by jury in any Related
                  Action.

              

      

      

      
        	
                 

              	
                19.

              	
                Attorney’s
                  Fees  The prevailing party in any Related Action
                  shall be entitled to recover that party’s costs of suit, including
                  reasonable attorney’s fees.

              

      

      

      
        	
                 

              	
                20.

              	
                Binding
                  Effect  This Agreement shall be binding on, and
                  shall inure to the benefit of the parties and their respective
                  successors
                  in interest.

              

      

      

      
        	
                 

              	
                21.

              	
                Construction,
                  Counterparts  This Agreement shall be construed as
                  a whole and in favor of the validity and enforceability of each
                  of its
                  provisions, so as to carry out the intent of the parties as expressed
                  herein. Heading are for the convenience of reference, and the meaning
                  and
                  interpretation of the text of any provision shall take precedence
                  over its
                  heading. This Agreement may be signed in one or more counterparts,
                  each of
                  which shall constitute an original, but all of which, taken together
                  shall
                  constitute one agreement. A faxed copy or photocopy of a party’s signature
                  shall be deemed an original for all
                  purposes.

              

      

      
        
          
          

        

        
          Page
            5 of
            7

          
            

          

        

        
          
          

        

      

       

      Issued
        this ___ day of October, 2005.

      
        	 	
                EXOBOX
                  TECHNOLOGIES CORP.

              
	 	 	 
	 	
                By:

              	 
	 	
                Name:

              	 
	 	
                Title:

              	 

      

       

      
        
          
          

        

        
          Page
            6 of
            7

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

      NOTICE
        OF
        EXERCISE

      

      TO:      EXOBOX
        TECHNOLOGIES CORP.

      6303
        Beverly Hill, Suite 210

      Houston,
        Texas 77057

      Attention:
        Robert B. Dillon

      

      
        	
                1.

              	
                The
                  undersigned hereby elects to purchase __________ Shares of EXOBOX
                  TECHNOLOGIES CORP. pursuant to the terms of the attached
                  Warrant.

              

      

      

      
        	
                2.

              	
                Method
                  of Exercise (Please initial the applicable
                  blank):

              

      

      

      
        	
                o

              	
                The
                  undersigned elects to exercise the attached Warrant by means of
                  a cash
                  payment, and tenders herewith or by concurrent wire transfer payment
                  in
                  full for the purchase price of the shares being purchased, together
                  with
                  all applicable transfer taxes, if
                  any.

              

      

      

      
        	
                3.

              	
                Please
                  issue a certificate or certificates representing said Shares in
                  the name
                  of the undersigned or in such other name as is specified
                  below:

              

      

      

      

      _________________________________

      (Name)

      _________________________________

      

      _________________________________

      (Address)

      

      
        	
                4.

              	
                The
                  undersigned hereby represents and warrants that the aforesaid Shares
                  are
                  being acquired for the account of the undersigned for investment
                  and not
                  with a view to, or for resale, in connection with the distribution
                  thereof, and that the undersigned has no present intention of distributing
                  or reselling such shares and all representations and warranties
                  of the
                  undersigned set forth in Section 7 of the attached Warrant are
                  true and
                  correct as of the date hereof.

              

      

      

      

        
          	 	 	 	 
	 	 	 	
                  (Signature)

                
	 	 	 	
                  Title: 
                    

                	 
	 	 	 	 	 
	
                  (Date)

                	 	 	 	 

        

      

    

     

     

    Page 7
      of 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]