Document:

ex10-1.htm

    THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”). IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENTS AS TO THE NOTE UNDER THE ACT OR
AN OPINION OF COUNSEL SATISFACTORY TO THE BORROWER THAT REGISTRATION IS NOT
REQUIRED.

    

    

    CONVERTIBLE
PROMISSORY NOTE

    

    
      	
              $25,000.00

            	
              FEBRUARY           
      , 2008

            

    

    

    1.              Promise to
Repay.  Theater Xtreme Entertainment Group, inc., a Florida
Corporation (the “Borrower”), promises to
pay                
(“Lender”), or
its registered assigns, the principal sum of Twenty-Five Thousand Dollars
($25,00.00) together with interest thereon at the rate hereinafter specified and
any and all other sums which may be due and owing to the Lender in accordance
with the terms contained herein (including, without limitation, the issuance of
a warrant to Lender as contemplated in Section 6 below) as repayment of the loan
that the Lender has made to Borrower on the date hereof.

     

    2.              Interest.  Borrower
shall pay interest from the date of this Convertible Promissory Note (this
“Note”) on the principal
amount outstanding from time to time at a rate per annum equal to Twenty-One
percent (21%), compounded monthly. The interest shall be due on the first to
occur of (i) the Maturity Date (as defined below), (ii) upon repayment of the
Note in full, or (iii) on conversion of the principal amount plus accrued
interest, if any, of the Note to Common Shares in Borrower (“Financing Offering”), as
provided in Section 7 below.

     

    3.              Calculation of
Interest.  Interest on the principal amount of this Note shall
be calculated on the basis of a 360 day year factor applied to the actual days
on which there exists an unpaid principal balance due under this
Note.

     

    4.              Maturity.  The
principal balance of this Note, together with all then unpaid and accrued
interest, shall be due and payable in full on the date that is one hundred
twenty (120) days from the date of this Note (the “Maturity Date”).

     

    5.              Prepayment.  The
Borrower may prepay this Note, together with all then unpaid and accrued
interest, in whole or in part at any time or from time to time without penalty
or additional interest. Any amounts prepaid hereunder shall be applied as
provided in Section 9 below.

     

    6.              Warrant.  Simultaneously
with the issuance of this Note, the Borrower hereby grants to the Lender a
warrant to purchase 25,000 Common Shares with an exercise price equal to Fifty
Cents ($0.50) per share (the “Warrant”). The Warrant shall
be in substantial form and substance as Exhibit A, attached hereto.

     

    7.              Conversion.  Lender
may convert the principal balance plus accrued interest, if any, in whole or in
part, into Common Shares, at its election at any time prior to payment (the
“Conversion”). The
conversion price for this Note shall be equal to Ten Cents ($0.10) per
share.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If Lender
undertakes the Conversion, Lender shall notify Borrower of the Conversion (the
“Conversion Notice”)
including the amount of the principal balance of the Note plus accrued interest
up to, but not including, the Note Conversion Date (as defined below) to be
converted.  The effective date of the Conversion shall be the date of
the Conversion Notice (the “Note Conversion Date”). Any
amounts so converted to Common Shares shall reduce on a dollar for dollar basis
the outstanding principal balance and accrued interest, if any, of this
Note.

     

    On full conversion of the Note, Lender
shall surrender this Note at Borrower’s principal executive office, or, if this
Note has been lost, stolen, destroyed or mutilated, then, in the case of loss,
theft or destruction, Lender shall deliver an indemnity agreement reasonably
satisfactory in form and substance to Borrower or, in case of mutilation, Lender
shall surrender and cancel this Note. On Conversion, Lender will be entitled to
any accrued but unpaid interest on the converted principal amount of this Note
which has not been converted into Common Shares as described above through the
Note Conversion Date. Borrower warrants that Common Shares issuable on the
Conversion will, upon Conversion, be validly issued, fully paid and
non-assessable and free from all taxes, liens and charges in respect to issue
thereof.

     

    8.               
Representations
and Warranties of Lender.  To induce
Borrower to accept the loan evidenced by this Note, Lender represents and
warrants to Borrower as follows:

     

    (a)              Own Account.  Lender
understands that the shares of Common Stock into which this Note is convertible,
and the shares underlying the Warrant referred to in Section 6 have not been
registered under the Act or any applicable state securities law.  If
Lender acquires any such shares Lender will do so as principal for Lender’s own
account and not with a view to or for distributing or reselling any such
securities or any part thereof, has no present intention of distributing any of
such securities in violation of the Act or any applicable state securities law
and has no direct or indirect arrangement or understanding with any other person
or entity to distribute or regarding the distribution of any of such securities
in violation of the Act or any applicable state securities law.

     

    (b)              Borrower Status. Lender is an
“accredited investor” as defined in Rule 501(a) promulgated under the
Act.

     

    (c)              Experience of
Borrower.  Lender has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating
the merits and risks of the investment in Borrower (including the making of the
loan evidenced by this Note) and has evaluated the merits and risks of such
investment.  Lender is able to bear the economic risk of an investment
in this Note and such other securities of the Borrower and, at the present time,
is able to afford a complete loss of such investment.

     

    (d)              Available
Information.  Lender understands and acknowledges
that:

     

    (i)              Lender
has been given access to, and prior to the execution of this Note, performed its
own due diligence investigation and has had the opportunity to ask questions of
and receive answers from, Borrower (and to analyze its responses) concerning the
business and operations of the Borrower and to obtain any other information that
Lender requested with respect to the Borrower’s operations and Lender’s proposed
loan to the Borrower in order to evaluate the investment and verify the accuracy
of all information furnished to the Lender regarding the Borrower;
and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii)              Lender
has been given access to and has read all of the Borrower’s SEC
filings.

     

    (e)              Residence. Lender is a bona fide resident at the
address indicated for Lender in Section 15.

     

    (f)              Insufficient Authorized
Shares.  Lender understands that the Borrower does not have
enough authorized shares of common stock to allow full Conversion of this Note
and full exercise of the Warrant referred to in Section 6 while Lender is
completing a currently contemplated offering of Preferred Stock and
Warrants.  Consequently, Lender understands and acknowledges that
Lender may not be able to obtain all such shares on Conversion or on such
exercise in the absence of shareholder approval of an amendment of the Articles
of Incorporation of Borrower.

     

    9.              Payments.  Payments
of interest must be made in such coin or currency of the United States of
America as at the time of payment is legal tender of the payment of public and
private debts. Payments received after 2:00 P.M. will be treated as being
received on the next banking day If any interest is paid on this Note that is
deemed to exceed the then legal maximum rate, that portion of the interest
payment representing an amount in excess of the then legal maximum rate will be
credited and applied to the next payment of interest due under this Note, if
any, or otherwise returned to Borrower.

     

    10.              Cure
Period.  If any payment is not paid by the due date set forth
herein, Lender shall notify Borrower in writing. Borrower shall have five (5)
business days from the date of such notification to make full payment (the
“Cure
Period”).

     

    11.              Default and
Remedies.  Any failure to make any payments due under this Note
when due or within the applicable Cure Period or upon the failure to comply with
any other terms and provisions of this Note shall be a default under this Note
and shall entitle Lender to all of the rights and remedies specified herein or
otherwise available under applicable law. Upon a default, the entire unpaid
principal balance of this Note, together with all accrued but unpaid interest
and other sums due hereunder shall immediately become due and payable in full
and Lender shall have the right to bring suit for such amount and to exercise
any other remedies available. The Borrower hereby waives presentment, demand for
payment, notice of dishonor, notice of protest, and all other notices of demands
in connection with the delivery, acceptance and performance of this
Note.

     

    12.              Costs of
Collection.  If at any time the indebtedness evidenced by this
Note is collected through legal proceedings or this Note is placed in the hands
of an attorney or attorneys for collection, borrower hereby agrees to pay all
reasonable costs and expenses (including attorneys’ fees) incurred by the Lender
in collecting or attempting to collect such indebtedness.

     

    13.              Governing
Law.  This Note and all actions arising out of or in connection
with this Note shall be governed by and construed in accordance with the laws of
the State of Maryland.

     

    14.              No
Waiver.  The delay or failure of Lender to exercise its rights
hereunder shall not be deemed a waiver thereof. No waiver of any rights of the
Lender shall be effective unless in writing and signed by Lender and any waiver
of any right shall not apply to any other right or to such right in any
subsequent event or circumstance not specifically included in such
waiver.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15.              Notices.  Any
Notices or other communication required hereunder shall be deemed properly given
if delivered in person or if mailed by registered or certified mail. Postage
prepaid, return receipt requested to the parties at the following
addresses:

     

    If to the Borrower, to:

    

    Theater Xtreme Entertainment Group,
Inc.

    250 Corporate Boulevard

    Suites E&F

    Newark,
DE  19702

    Attention: CFO

    Facsimile:  312-455-1612

    

    With a copy to:

    

    Ballard Spahr Andrews &
Ingersoll LLP

    1735 Market Street

    51st
Floor

    Philadelphia,
PA  19103

    Attention: Steven B. King,
Esq.

    Facsimile:  215-864-9961

     

    if to
Lender:

     

                                           

     

    With a
copy to:

     

                                                                  

     

                                                                   

    
       

    

    
                                                                     

    

     

                                                                   

     

    

    

    

    

    IN WITNESS WHEREOF,
 Borrower has caused this Note to be executed on its behalf by its
duly authorized officer as of the day and year first above written.

    

    

    
      	 
      	
              Theater
      Xtreme Entertainment Group. Inc., a Florida
corporation,

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/ Scott R.
      Oglum

            
	 
      	 
      	
              Scott
      R. Oglum

            
	 
      	 
      	
              Chairman
      and Chief Executive Officerex10-2.htm

    Exhibit
A

    

    WARRANT

    

    VOID
AFTER 5:00 P.M., EASTERN TIME, ON FEBRUARY          
 , 2013, OR IF NOT A BUSINESS DAY, AS DEFINED HEREIN, AT 5:00 P.M.,
EASTERN TIME ON THE NEXT BUSINESS DAY.

    

    WARRANT
TO PURCHASE 25,000 SHARES OF COMMON STOCK OF

     

    THEATER
XTREME ENTERTAINMENT GROUP, INC.

     

    
      	
              NO.
      W-         
      

            	
              February         
      , 2008

            
	 
      	 
      

    

     

    TRANSFER
RESTRICTED - - SEE
SECTION 6.02

    

    For good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged by Theater Xtreme Entertainment Group,
Inc., a Florida corporation (the “Company”), and intending to
be legally bound hereby, the Company hereby grants to                      
, and its registered, permitted assigns (collectively, the “Warrantholder”), subject to
the terms and conditions hereof, the right and option to purchase Twenty-Five Thousand (25,000)
fully-paid and nonassessable shares of the Company’s common stock, par value
($.001) per share (the “Common
Stock”).

    

    ARTICLE
I

     

    Section 1.01.  Definition of
Terms.  As used in this Warrant, the following capitalized
terms shall have the following respective meanings:

     

    (a)           Business Day:  A day
other than a Saturday, Sunday or other day on which banks in the State of Delaware are authorized by law
to remain closed.

     

    (b)           Common Stock
Equivalents:  Securities that are convertible into or
exercisable or exchangeable for shares of Common Stock or of which Common Stock
is a part.

     

    (c)           Exercise Price Per
Share:  Fifty Cents ($0.50), subject to adjustment as provided
in Article III hereof.

     

    (d)           Securities Act:  The
Securities Act of 1933, as amended.

     

    (e)           Warrant:  This
warrant, and all other warrants that may be issued in its place or in exchange
or satisfaction therefor, including without limitation, any issued pursuant to
Section 2.02(c) hereof.

     

    (f)           Warrant Expiration
Date:  5:00 P.M., Eastern time, on February, 2013 or, if such day is not
a Business Day, the next day which is a Business Day.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)           Warrantholder:  The
person(s) or entity(ies) to whom this Warrant is originally issued, or any
successor in interest thereto, or any assignee or transferee thereof, in whose
name this Warrant is registered upon the Warrant Register or other books
maintained by the Company for that purpose.

     

    ARTICLE
II

     

    Duration and Exercise of
Warrant

    

    Section 2.01.  Duration of
Warrant.  Subject to the terms contained herein, this Warrant
may be exercised from time to time, on or before the Warrant Expiration
Date.  If this Warrant is not exercised in full on or before the
Warrant Expiration Date, it shall become void to the extent not exercised, and
all unexercised rights hereunder shall thereupon cease.

     

    Section 2.02.  Exercise of
Warrant.  a) The Warrantholder may exercise this Warrant, in
whole or in part by presentation and surrender of this Warrant to the Company at
its corporate office at 250
Corporate Boulevard, Suite E, Newark, DE 19702, with the Subscription
Form annexed hereto duly executed and accompanied by payment (by certified or
official bank check payable to the order of the Company) of the Exercise Price
Per Share for each share to be purchased pursuant to such Subscription
Form.

     

    (b)           Upon
the Company's receipt of this Warrant with the Subscription Form duly executed
and accompanied by payment of the Exercise Price Per Share for each share to be
purchased pursuant to such Subscription Form as set forth in subsection (a) of
this Section 2.02, the Company shall promptly cause to be issued certificates
for the total number of whole shares of Common Stock which constitute the number
of shares for which this Warrant is being exercised (adjusted to reflect the
effect of the antidilution provisions contained in Article III hereof, if any,
and as provided in Section 4.04 hereof) in such denominations as have been
requested on the Subscription Form, and the Company shall thereupon cause such
certificates to be delivered to the Warrantholder promptly.

     

    (c)           In
case the Warrantholder shall exercise this Warrant with respect to fewer than
all of the shares which may be purchased under this Warrant, the Company shall
promptly execute a new warrant in the form of this Warrant for the balance of
such shares and promptly deliver such new warrant to the
Warrantholder.

     

    (d)           The
Company shall pay any and all documentary, stamp, transfer or other
transactional taxes attributable to the issuance of this Warrant or any shares
issuable upon exercise of this Warrant.  The Company shall not,
however, be required to pay any tax imposed on income or gross receipts of the
Warrantholder or any tax which may be payable by the Warrantholder in respect of
any transfer involved in the issuance or delivery of this Warrant in a name
other than that of the Warrantholder at the time of surrender and, until the
payment of such tax, shall not be required to issue any such
securities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    ARTICLE
III

     

    Adjustment
of Shares of Common Stock

    Purchasable and of Exercise
Price

    

    The
Exercise Price Per Share and the number and kind of shares of capital stock
issuable upon exercise of this Warrant shall be subject to adjustment from time
to time upon the happening of certain events as provided in this Article
III.

    

    Section 3.01.  Adjustments. (a) If at any time prior to the
exercise of this Warrant in full, the Company shall (i) pay a dividend or make a
distribution on its shares of Common Stock in either case in shares of Common
Stock or other securities of the Company; (ii) subdivide, reclassify or
recapitalize its outstanding Common Stock into a greater number of shares; (iii)
combine, reclassify or recapitalize its outstanding Common Stock into a smaller
number of shares; or (iv) issue by reclassification of its Common Stock any
shares of capital stock of the Company, then the Exercise Price Per Share in
effect at the time of the record date of such dividend, distribution,
subdivision, combination, reclassification or recapitalization, and the
aggregate number and kind of securities purchasable hereunder shall be equitably
adjusted to the extent (if any) necessary so that the Warrantholder shall be
entitled to receive, upon exercise of this Warrant, the aggregate number and
kind of securities which, if this Warrant had been exercised in full immediately
prior to the time of such dividend, distribution, subdivision, combination,
reclassification, or recapitalization such Warrantholder would have owned upon
such exercise(s) and been entitled to receive upon such dividend, distribution,
subdivision, combination, reclassification or recapitalization in exchange for
the aggregate exercise price which would have been required to be paid by the
Warrantholder.  Any adjustment required by this subsection (a) shall
be made each time an event listed in this subsection (a) shall
occur.

     

    (b)           No
adjustment in the Exercise Price Per Share shall be required unless such
adjustment would require an increase or decrease of at least five cents ($.05)
in such price; provided, however, that any
adjustment which by reason of this subsection (c) is not required to be made
shall be carried forward and taken into account in any subsequent
adjustment.  All calculations under this Section 3.01 shall be made to
the nearest cent or to the nearest one-hundredth of a share, as the case may
be.

     

    (c)           If
at any time, as a result of any adjustment made pursuant to subsection (a) of
this Section 3.01, the Warrantholder shall become entitled to receive any
securities of the Company other than Common Stock, thereafter the number of such
securities so receivable upon exercise of any Warrant shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Common Stock contained in this
Section 3.01.

     

    (d)           If,
as a result of an adjustment made pursuant to this Article III, the
Warrantholder shall become entitled to receive shares of two or more classes of
capital stock or shares of Common Stock and other securities of the Company
(other than as may be contemplated by this Warrant), the Board of Directors
(whose determination shall be conclusive and shall be described in a written
notice to the Warrantholder promptly after such adjustment) shall determine in
good faith the allocation of the adjusted per share price between or among such
shares or classes of capital stock or shares of Common Stock and of other
securities, as the case may be.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section 3.02.  Notice of
Adjustment.  Whenever the number of shares purchasable
hereunder or the Exercise Price Per Share is adjusted as herein provided, the
Company shall prepare and deliver to the Warrantholder a certificate signed by
its President or a Vice President and by its Treasurer or Secretary, setting
forth the adjusted number of shares purchasable upon exercise of this Warrant,
and the Exercise Price of such securities after such adjustment, setting forth a
brief statement of the facts requiring such adjustment and setting forth the
computation by which such adjustment was made.

     

    Section 3.03.  No Adjustment for
Dividends.  No adjustment in respect of any cash dividends
shall be made during the term of this Warrant or upon the exercise of this
Warrant.

     

    Section 3.04.  Preservation of Purchase Rights in
Certain Transactions.  In case of any capital reorganization,
or any consolidation or merger to which the Company is a party, or in case of
any sale or conveyance to another entity of all or substantially all of the
assets of the Company, or in the case of any statutory exchange of securities
with another entity (including any exchange effected in connection with a merger
of another corporation into the Company), the Warrantholder shall have the right
thereafter to receive on the exercise of this Warrant the kind and amount of
securities, cash or other property which the Warrantholder would have owned or
have been entitled to receive immediately after such reorganization,
consolidation, merger, exchange, sale or conveyance if this Warrant had been
exercised immediately prior to the effective date of such reorganization,
consolidation, merger, exchange, sale or conveyance and in any such case, if
necessary, appropriate adjustment shall be made in the application of the
provisions set forth in this Article III with respect to the rights and
interests thereafter of the Warrantholder to the end that the provisions set
forth in this Article III shall thereafter correspondingly be made applicable,
as nearly as may reasonably be possible, in relation to any shares of stock or
other securities or property thereafter deliverable on the exercise of this
Warrant.  The provisions of this Section 3.04 shall similarly apply to
successive reorganizations, consolidations, mergers, exchanges, sales or
conveyances which occur prior to the exercise, repurchase or expiration of this
Warrant.  The issuer of any shares of capital stock or other
securities or property thereafter deliverable on the exercise of this Warrant
shall be jointly and severally liable for all of the agreements and obligations
of the Company hereunder.

     

    Section 3.05. 
 Form of Warrant
After Adjustments.  The form of this Warrant need not be
changed because of any adjustments in the Exercise Price Per Share or the number
or kind of shares or other securities purchasable hereunder.

     

    ARTICLE
IV

     

    Other
Provisions Relating

    to Rights of
Warrantholder

    

    Section 4.01. 
 No Rights
as Stockholders; Notice to Warrantholder.  Nothing contained in
this Warrant shall be construed as conferring on the Warrantholder in its
position as such or upon its transferees the right to vote or to receive
dividends or to consent or to receive notice as a stockholder in respect of any
meeting of stockholders for the election of directors of the Company or of any
other matter, or any other rights whatsoever as stockholders of the
Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section 4.02. 
 Lost, Stolen,
Mutilated or Destroyed Warrants.  If this Warrant is lost,
stolen, mutilated or destroyed, the Company may, on such terms as to indemnity
or otherwise as it may in its reasonable discretion impose (which shall, in the
case of a mutilated Warrant, include the surrender thereof), issue a new Warrant
of like denomination and tenor as, and in substitution for, this
Warrant.

     

    Section 4.03.  No Fractional
Shares.  Anything contained herein to the contrary
notwithstanding, the Company shall not be required to issue any fraction of a
share in connection with the exercise of this Warrant, and in any case where the
Warrantholder would, except for the provisions of this Section 4.04, be entitled
under the terms of this Warrant to receive a fraction of a share upon the
exercise of this Warrant, the Company shall, upon the exercise of this Warrant
and receipt of the Exercise Price Per Share, issue the smaller number of whole
shares purchasable upon exercise of this Warrant and shall make an equitable
cash adjustment in respect of such fraction of a share to which the
Warrantholder would otherwise be entitled.

     

    ARTICLE
V

     

    Treatment of
Warrantholder

    

    Prior to
due presentment for registration or transfer of all or any portion of this
Warrant in compliance with Section 6.02 hereof, the Company may deem and treat
the Warrantholder as the absolute owner of this Warrant (notwithstanding any
notation of ownership or other writing hereon) for all purposes and shall not be
affected by any notice to the contrary.  Upon such due presentment,
the Company shall register the transfer and the assignee on its books and
records.

    

    ARTICLE
VI

     

    Split-Up,
Combination.

    Exchange and Transfer of
Warrants

    

    Section 6.01.  Split-Up,
Combination, Exchange and Transfer of Warrants. Subject to the provisions
of Section 6.02 hereof, this Warrant may be split up, combined or exchanged for
another Warrant or Warrants containing the same terms to purchase a like
aggregate number of shares of Common Stock.  If the Warrantholder
desires to split up, combine or exchange this Warrant, it shall make such
request in writing delivered to the Company and shall surrender to the Company
this Warrant and any other Warrant to be so split up, combined or
exchanged.  Upon any such surrender for a split up, combination or
exchange, the Company shall execute and deliver to the person entitled thereto a
Warrant or Warrants, as the case may be, as so requested.  The Company
shall not be required to effect any split up, combination or exchange which will
result in the issuance of a Warrant entitling the Warrantholder to purchase upon
exercise a fraction of a share of Common Stock.  The Company may
require such Warrantholder to pay a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any split up,
combination or exchange of Warrants.  This Warrant may be transferred
by a Holder in whole or in part, at any time and
from time to time, subject to the restrictions set forth in Section
6.02.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section 6.02. 
 Restrictions on
Transfer.  Neither this Warrant nor any of the shares of Common
Stock issuable upon the exercise hereof may be sold, hypothecated, assigned or
transferred (any such action, a "Transfer"), unless (i) the
Company has received from counsel satisfactory to the Company an opinion
reasonably satisfactory to the Company that such Transfer may be made without
compliance with the registration provisions of the Securities Act or any other
applicable securities law and that the proposed Transfer may be made without
violation of the Securities Act or any other applicable securities law, or (ii)
a registration statement filed by the Company covering the securities to be
Transferred is in effect under the Securities Act and all other applicable
securities laws.

     

    

    ARTICLE
VII

     

    Securities
Laws Compliance Procedures

    

    Section 7.01.  Securities Laws Compliance
Procedures. Warrantholder represents and acknowledges that (i) he or she
knows, or has had the opportunity to acquire, all information concerning the
business, affairs, financial condition and prospects of the Company which it
deems relevant to making a fully informed decision regarding the consummation of
the transactions contemplated hereby and (ii) it has been supplied with copies
of the Company's latest annual report on Form 10-K, the Company's latest
quarterly report on Form 10-Q, the Company's latest proxy statement, and the
Company's latest annual report to stockholders.  Without intending any
limitation on the generality of the foregoing, Warrantholder understands and
acknowledges that neither the Company nor anyone acting on its behalf has made
any representations or warranties other than those contained herein respecting
the Company or the future conduct of Company's business and Warrantholder has
not relied upon any representations or warranties other than those contained
herein in the belief that they were made on behalf of the Company.

     

    Section 7.02. 
 No Registration
Obligation. Warrantholder understands and acknowledges that neither this
Warrant nor any of the shares issuable upon exercise of this Warrant have been
registered under the Securities Act or any state securities law and that the
Company has no obligation to effect any such registration.

     

    ARTICLE
VIII

     

    Other
Matters

     

    Section 8.01. 
 Expenses of
Transfer.  The Company shall from time to time promptly pay,
subject to the provisions of Section 6.01 and subsection (d) of Section 2.02,
all documentary, stamp, transfer or other transactional taxes that may be
imposed upon the Company in respect to the issuance or delivery of securities
issuable upon the exercise of this Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section 8.02. 
 Successors and
Assigns.  All the covenants, obligations and provisions of this
Warrant by or for the benefit of the Company and the Warrantholder shall also
bind and inure to the benefit of their respective successors and assigns
hereunder.

     

    Section 8.03.  Governing Law.  This
Warrant shall be governed by and construed in accordance with the laws of the
State of Delaware,
without regard to the law of conflicts.

     

    Section 8.04. 
 Severabilitiy.  In
the event that any one or more of the provisions contained herein, or the
application thereof in any circumstances, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provisions
in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby.

     

    Section 8.05. 
 Integration/Entire
Agreement.  This Warrant is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein.  This Warrant supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

     

    Section 8.06.  Notices.  Notice or
demand pursuant to this Warrant to be given or made shall be sufficiently given
or made if sent by registered or certified mail, postage prepaid, or by
overnight courier, addressed, until another address is designated in writing by
the intended recipient in the manner set forth in this Section 8.06, as
follows:

     

    

    
      	
              As
      to Company:

            	
              Theater
      Xtreme Entertainment Group, Inc.

            
	 
      	
              250
      Corporate Blvd, Suite E

            
	 
      	
              Newark,
      DE  19702

            
	 
      	
              Attn:
      Chief Financial Officer

            
	 
      	 
      

    

     

     

    As to
Warrantholder:

     

                                         

                                          

     

    

    

    

    Section 8.07.  Headings.  The
headings herein have been inserted for convenience of reference only and are not
part of this Warrant and shall not affect the interpretation
thereof.

     

    IN WITNESS WHEREOF, this
Warrant has been duly executed by the Company as of the day and year first above
written.

     

    THEATER
XTREME ENTERTAINMENT GROUP, INC.

    

    

    

    
      	
              By:

            	
              /s/ Scott R.
      Oglum

            
	
              Name:

            	
              Scott
      R. Oglum

            
	
              Title:

            	
              CEO

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSIGNMENT

    

    

    

    (To be
executed only upon assignment of Warrant Certificate)

    

    

    

    For value received, _______________
hereby sells, assigns and transfers unto _____ the within Warrant No. _______,
together with all right, title and interest therein, and does hereby irrevocably
constitute and appoint ___________ attorney, to transfer the said Warrant
Certificate on the books of ___________________________, Inc. with respect to
the number of shares set forth below, with full power of substitution in the
premises:

    

    
      	
              Name(s)

              of
      Assignee(s)

            	
              Address

            	
              No.

              of
      Shares

            	
              Taxpayer

              Identification
      No.

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

    

    

    If this
Assignment shall not be for the right to purchase all the shares under the
Warrant, a new Warrant shall be issued in the name of the undersigned for the
remaining balance of such shares.

    

    
      	
              Name:
      __________________________

            	
              Name:
      ____________________________

            
	
              Address:
      _________________________

            	
              Address:
      __________________________

            
	
                             _________________________

            	
                             _________________________

            
	 
      	 
      
	
              Signature_________________________

            	
              Signature
      __________________________

            

    

    

    
      	
               
      

            	
              Note:

            	
              The
      above signature(s) should correspond exactly with the name on the first
      page of this Warrant.  If the Warrant is in more than one name,
      all holders must sign.

            

    

    

    

    

    Dated:
___________________, ____

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SUBSCRIPTION
FORM

    (To be
executed upon exercise of Warrant)

    

    

    
      	
              To:

            	
              Theater
      Xtreme Entertainment Group, Inc.

            
	 
      	
              250
      Corporate Boulevard Suite, E&F

            
	 
      	
              Newark,
      DE  19702

            
	 
      	
              ATTN:
      CFO

            

    

    

    The
undersigned hereby irrevocably elects to exercise the right of purchase
represented by the within Warrant No. __________ for, and to purchase
thereunder, __________* shares of Common Stock as provided for therein, and
tenders herewith payment of the purchase price in full in the form of a
certified or official bank check in the amount of $_____________

    

    The
undersigned understands that the Shares have not been registered under the
Securities Act of 1933, as amended (the "Act") or under any state securities
law, and the Company is under no obligation to do so.  The undersigned
understands that the Shares may not be resold or otherwise transferred in the
absence of such applicable registrations or exemptions from the registration
requirements.  The undersigned understands that it may have to hold
the Shares for the indefinite future.  The undersigned understands
that the Shares are "restricted securities" within the meaning of Rule 144
promulgated under the Act and the Company has no obligation to make any
information available or to file any reports to permit sales to be made under
such rule.

    

    The
undersigned represents and warrants to the Company that it (a) has been advised
and understands that the Shares may not be transferred without compliance with
all applicable Federal and state securities laws; and (b) has had all material
information about the Company's business and financial condition made available
to it prior to exercise of the Warrant, and that it was afforded the opportunity
to ask questions of and receive answers from the officers and directors of the
Company with respect to the Company's business affairs and
prospects.

    

    The
undersigned represents and warrants that it is acquiring the Shares for its own
account as principal for investment and not with a view to resale or
distribution, and that it has such knowledge and experience in financial and
business matters as will enable it to evaluate the merits and risks of the
proposed investment in the Shares.

    

    The
undersigned understands that the Share certificate shall bear a restrictive
legend with respect to the transferability of the Shares.

    

    Please
issue a certificate or certificates for such shares of Common Stock in the name
of _____________ with an address of ____________ in the following
denominations:

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
               

              Number of
      Certificate(s)

            	
              Shares
      Evidenced by

              Each
      Certificate

            	
               

              Total

            
	 
      	 
      	 
      
	 
      	 
      	
              ____________

            
	
              Total

            	 
      	
              ____________

            

    

    

    

    
      	
              Name:
      _____________________

            	
              Name:____________________________

            
	
              Address:
      ___________________

            	
              Address:
      __________________________

            
	
              Taxpayer
      Identification No.____

            	
              Taxpayer
      Identification No.___________

            
	
              Signature
      ___________________

            	
              Signature
      __________________________

            
	 
      	 
      

    

    
      	
               
      

            	
              Note:

            	
              The
      above signature(s) should correspond exactly with the name on the first
      page of this Warrant.  If the Warrant is in more than one name,
      all holders must sign.

            

    

    

    

    *If such
number of shares shall not be all the shares of Common Stock purchasable under
the within Warrant Certificate, a new Warrant Certificate shall be issued in the
name of the undersigned for the balance remaining of the shares of Common Stock
purchasable thereunder.

    

    

    

    

    Dated:
____________, ____

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]