Document:

EXHIBIT 10.9

                               SECURITY AGREEMENT

1.    DATE: March 23, 2004

2.    BORROWER: Touchstone Resource USA, Inc.

3.    BORROWER'S MAILING ADDRESS (INCLUDING COUNTY):

      111 Presidential Boulevard
      Suite 165
      Bala Cynwyd, PA 19004

4.    SECURED PARTY AND MAILING ADDRESS (INCLUDING COUNTY):

      Trident Growth Fund, LP
      700 Gemini
      Houston, TX  77058

5.    CLASSIFICATION OF COLLATERAL: Accounts, cash, contract rights, property,
      equipment, general intangibles, inventory, instruments, deposit accounts,
      chattel paper, leases, mineral rights and all other assets.

6.    COLLATERAL (INCLUDING ALL ACCESSIONS): Accounts, cash, contract rights,
      property, equipment, general intangibles (including all trademarks),
      inventory, instruments, deposit accounts, chattel paper, leases, mineral
      rights and all other assets.

      a)    All attachments, accessions accessories, tools, parts supplies,
            increases, and additions to and all replacements of and
            substitutions for any property described above.

      b)    All products and produce of any of the property described in this
            Collateral section.

      c)    All accounts, contracts rights, general intangibles, instruments,
            rents, monies, payments, and all other rights, arising out of a
            sale, lease, or other disposition of any of the property described
            in this Collateral section.

      d)    All proceeds (including insurance proceeds) from the sale,
            destruction, loss, or other deposition of any of the property
            described in this Collateral section.

7.    OBLIGATION: Secured Promissory Note ("Notes"), and all other indebtedness,
      liabilities and obligations of the Borrower to the Secured Party now owing
      or hereinafter incurred.

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                          SECURITY AGREEMENT - Page 1
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      a)    DATE: March 23, 2004

      b)    AMOUNT: $2,100,000

      c)    MAKER: The Borrower

      d)    PAYEE: The Secured Party

      e)    FINAL MATURITY DATE: As therein provided

      f)    TERMS OF PAYMENT (OPTIONAL): As therein provided

     Borrower grants to Secured Party a security  interest in the Collateral and
     all its proceeds to secure payment and performance of Borrower's Obligation
     and all renewals and extensions of any of the Obligation.

8.    BORROWER'S WARRANTIES:

      a)    Ownership. Borrower owns the Collateral and has the authority to
            grant this security interest.

      b)    Financial Statements. All information about Borrower's financial
            condition provided to Secured Party was accurate when submitted, as
            will be any information subsequently provided.

9.    BORROWER'S COVENANTS:

      a)    Protection of Collateral. Borrower will defend the Collateral
            against all claims and demands adverse to Secured Party's interest
            in it and will keep it free from all liens except those for taxes
            not yet due and from all security interests except this one. The
            Collateral will remain in Borrower's possession or control at all
            times, except as otherwise provided in this agreement. Borrower will
            maintain the Collateral in good condition and protect it against
            misuse, abuse, waste and deterioration except for ordinary wear and
            tear resulting from its intended use.

      b)    Insurance. Borrower, in the ordinary course of business, will insure
            the Collateral in accord with Secured Party's reasonable
            requirements.

      c)    Secured Party's Costs. Borrower will pay all expenses incurred by
            Secured Party in obtaining, preserving, perfecting, defending and
            enforcing this security interest or the Collateral and in collecting
            or enforcing the Obligation. Expenses for which Borrower is liable
            include, but are not limited to, taxes, assessments, reasonable
            attorney's fees, and other legal expenses. These expenses will bear
            interest from the dates of payments at the highest rate stated in
            notes that are part of the Obligation, and Borrower will pay Secured
            Party this interest on demand at a time and place reasonably
            specified by Secured Party. These expenses and interest will be part
            of the Obligation and will be recovered as such in all respects.

      d)    Additional Documents. Borrower will sign any papers that Secured
            Party considers necessary to obtain, maintain, and perfect this
            security interest or to comply with any relevant law.

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                          SECURITY AGREEMENT - Page 2
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      e)    Notice of Changes. Borrower will immediately notify Secured Party of
            any material change in the Collateral other than in the ordinary
            course of business; change in Borrower's name, address, or location;
            change in any matter warranted or represented in this agreement;
            change that may affect this security interest; and any Event of
            Default.

      f)    Use and Removal of Collateral. Borrower will use the Collateral
            primarily according to the stated classification unless Secured
            Party consents otherwise in writing. Borrower will not allow the
            Collateral to become an accession to any goods, to be commingled
            with other goods, or to become a fixture, accession, or part of a
            product or mass with other goods except as expressly provided in
            this agreement or in the ordinary course of business.

      g)    Sale. Borrower will not sell, transfer, or encumber any of the
            Collateral without the prior written consent of Secured Party other
            than in the ordinary course of business except the Borrower may
            sell, transfer or encumber Collateral secured by Permitted Liens up
            the value of the secured indebtedness.

      h)    Borrower agrees, with regard to the Collateral and proceeds, from
            time to time when reasonably requested by Secured Party, to prepare
            and deliver a schedule of all Collateral and proceeds subject to
            this agreement and to assign in writing and deliver to secured party
            all accounts, contracts, leases and other chattel paper,
            instruments, documents and other evidences thereof.

      i)    Borrower agrees with regard to the Collateral and proceeds in the
            event Secured Party elects to receive payments of rights to payment
            or proceeds hereunder, to pay all reasonable expenses incurred by
            Secured Party in connection therewith, including reasonable expenses
            of accounting, correspondence, collection efforts, reporting,
            filing, recording, record keeping and expenses incidental thereto.

10.   RIGHTS AND REMEDIES OF SECURED PARTY:

      a)    Generally. Secured Party may exercise the following rights and
            remedies after the occurrence and continuance of an Event of
            Default:

            i.    take control of any proceeds of the Collateral;

            ii.   release any Collateral in Secured Party's possession to any
                  Borrower, temporarily or otherwise;

            iii.  take control of any funds generated by the Collateral, such as
                  refunds from and proceeds of insurance, and reduce any part of
                  the Obligation accordingly or permit Borrower to use such
                  funds to repair or replace damaged or destroyed Collateral
                  covered by insurance; and

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                          SECURITY AGREEMENT - Page 3
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            iv.   demand, collect, convert, redeem, settle, compromise, receipt
                  for, realize on, adjust, sue for, and foreclose on the
                  Collateral as Secured Party desires.

            v.    exercise any of the other remedies available to the Secured
                  Party under the Loan Agreement.

      b)    Insurance. If Borrower fails to maintain insurance as required by
            this agreement or otherwise by Secured Party, then after written
            notice to Borrower, Secured Party may purchase single-interest
            insurance coverage up to the replacement value of the Collateral
            that is insurable that will protect only Secured Party. If Secured
            Party purchases this insurance, its premiums will become part of the
            Obligation.

11.   EVENTS OF DEFAULT: Each of the following events is an Event of Default if
      not cured within twenty days after notice from Secured Party of the
      occurrence of such default:

      a)    if Borrower defaults in timely payment or performance of any
            obligation, covenant, or liability in any written agreement between
            Borrower and Secured Party or in any other transaction secured by
            this agreement;

      b)    if any warranty, covenant or representation made to Secured Party by
            or on behalf of Borrower proves to have been false in any material
            respect when made;

      c)    if a receiver is appointed for Borrower or any of the Collateral;

      d)    if any financing statement regarding the Collateral but not related
            to this security interest and not favoring Secured Party is filed
            other than financing statements for the purpose of noticing
            Permitted Liens;

      e)    if any lien, other than Permitted Liens, attaches to any of the
            Collateral;

      f)    if any material amount of the Collateral is lost, stolen, damaged,
            or destroyed, unless it is promptly replaced with Collateral of like
            quality or restored to its former condition.

      g)    Secured party, in good faith, believes that any or all of the
            Collateral and/or proceeds to be in danger of misuse, dissipation,
            commingling, loss, theft, damage or destruction, or otherwise in
            jeopardy or unsatisfactory in character or value.

      h)    A Default shall occur and be continuing under the Notes.

12.   REMEDIES OF SECURED PARTY ON DEFAULT:

      During the existence of any Event of Default and subject to any applicable
      cure periods, Secured Party may declare the unpaid principal and earned
      interest of the Obligation immediately due in whole or part, enforce the
      Obligation, and exercise any rights and remedies granted by the Uniform
      Commercial Code or by this agreement, including the following:

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                          SECURITY AGREEMENT - Page 4
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      a)    require Borrower to deliver to Secured Party all books and records
            relating to the Collateral;

      b)    require Borrower to assemble the Collateral and make it available to
            Secured Party at a place reasonably convenient to both parties;

      c)    take possession of any of the Collateral and for this purpose enter
            any premises where it is located if this can be done without breach
            of the peace;

      d)    sell, lease, or otherwise dispose of any of the Collateral in accord
            with the rights, remedies, and duties of a secured party under
            chapters 2 and 9 of the Texas Uniform Commercial Code after notice
            as required by those chapters; unless the Collateral threatens to
            decline speedily in value, is perishable, or would typically be sold
            on a recognized market, Secured Party will give Borrower reasonable
            notice of any public sale of the Collateral or of a time after which
            it may be otherwise disposed of without further notice to Borrower;
            in this event, notice will be deemed reasonable if it is mailed,
            postage prepaid, to Borrower at the address specified in this
            agreement at least ten days before any public sale or ten days
            before the time when the Collateral may be otherwise disposed of
            without further notice to Borrower; in this event, notice will be
            deemed reasonable if it is mailed, postage prepaid, to Borrower at
            the address specified in this agreement at least ten days before any
            private sale or ten days before any public sale or ten days before
            time when the Collateral may be otherwise disposed of without
            further notice to Borrower;

      e)    surrender any insurance policies covering the Collateral and receive
            the unearned premium;

      f)    apply any proceeds from disposition of the Collateral after default
            in the manner specified in chapter 9 of the Uniform Commercial Code,
            including payment of Secured Party's reasonable attorney's fees and
            court expenses; and

      g)    if disposition of the Collateral leaves the Obligation unsatisfied,
            collect the deficiency from Borrower.

13.   GENERAL PROVISIONS

      a)    Parties Bound. Secured Party's rights under this agreement shall
            inure to the benefit of its successors and assigns. Assignment of
            any part of the Obligation and delivery by Secured Party of any part
            of the Collateral will fully discharge Secured Party from
            responsibility for that part of the Collateral. If Borrower is more
            than one, all their representations, warranties, and agreements are
            joint and several. Borrower's obligations under this agreement shall
            bind Borrower's personal representatives, successors, and assigns.

      b)    Waiver. Neither delay in exercise nor partial exercise of any
            Secured Party's remedies or rights shall waive further exercise of
            those remedies or rights. Secured Party's failure to exercise
            remedies or rights does not waive subsequent exercise of those
            remedies or rights. Secured Party's waiver of any default does not

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                          SECURITY AGREEMENT - Page 5
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            waive further default. Secured Party's waiver of any right in this
            agreement or of any default is binding only if it is in writing.
            Secured Party may remedy any default without waiving it.

      c)    Reimbursement. If Borrower fails to perform any of Borrower's
            obligations, Secured Party may perform those obligations and be
            reimbursed by Borrower on demand at the place where the note is
            payable for any sums so paid, including attorney's fees and other
            legal expenses, plus interest on those sums from the dates of
            payment at the rate stated in the note for matured, unpaid amounts.
            The sum to be reimbursed shall be secured by this security
            agreement.

      d)    Interest Rate. Interest included in the Obligation shall not exceed
            the maximum amount of non-usurious interest that may be contracted
            for, taken, reserved, charged, or received under law; any interest
            in excess of that maximum amount shall be credited to the principal
            of the obligation or, if that has been paid, refunded. On any
            acceleration or required or permitted prepayment of the Obligation,
            any such excess shall be canceled automatically as of the
            acceleration or prepayment or, if already paid, credited on the
            principal amount of the Obligation or, if the principal amount has
            been paid, refunded.

      e)    Modifications. No provisions of this agreement shall be modified or
            limited except by written agreement.

      f)    Severability. The unenforceability of any provision of this
            agreement will not effect the enforceability or validity of any
            other provision.

      g)    After-Acquired Consumer Goods. This security interest shall attach
            to after-acquired consumer goods only to the extent permitted by
            law.

      h)    Applicable Law. This agreement will be construed according to Texas
            laws.

      i)    Place of Performance. This agreement is to be performed in the
            county of Secured Party's mailing address. In this case, the
            agreement will be performed in Dallas county, Texas.

      j)    Financing Statement. A carbon, photographic, or other reproduction
            of this agreement or any financing statement covering the Collateral
            is sufficient as a financing statement. Borrower authorizes Secured
            Party to file any financing statements Secured Party deems necessary
            to perfect the interests granted herein.

      k)    Presumption of Truth and Validity. If the Collateral is sold after
            default, recitals in the bill of sale or transfer will be prima
            facie evidence of their truth, and all prerequisites to the sale
            specified by this agreement and by the Texas Uniform Commercial Code
            will be presumed satisfied.

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                          SECURITY AGREEMENT - Page 6
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      l)    Singular and Plural. When the context requires, singular nouns and
            pronouns include the plural.

      m)    Cumulative Remedies. Foreclosure of this security interest by suit
            does not limit Secured Party's remedies, including the right to sell
            the Collateral under the terms of this agreement. All remedies of
            Secured Party may be exercised at the same or different times, and
            no remedy shall be a defense to any other. Secured Party's rights
            and remedies include all those granted by law or otherwise, in
            addition to those specified in this agreement.

      n)    Agency. Borrower's appointment of Secured Party as Borrower's agent
            is coupled with an interest and will survive any disability of
            Borrower.

Secured Party:
TRIDENT GROWTH FUND, LP

/s/ Scott Cook

Borrower:
TOUCHSTONE RESOURCES USA, INC.

/s/ Stephen P. Harrington
STEPHEN P. HARRINGTON
PRESIDENT

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                          SECURITY AGREEMENT - Page 7EXHIBIT 10.10

THE  SECURITIES  REPRESENTED  BY THESE  WARRANTS AND THE COMMON  STOCK  ISSUABLE
THEREBY HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES  ACT"), OR ANY OTHER APPLICABLE  SECURITIES LAW. THE SECURITIES
REPRESENTED  BY THESE  WARRANTS MAY NOT BE  TRANSFERRED,  EXCEPT  PURSUANT TO AN
EFFECTIVE REGISTRATION  STATEMENT,  OR IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY OTHER APPLICABLE  SECURITIES
LAWS.

                                    WARRANTS

                           to Purchase Common Stock of

                         Touchstone Resources USA, Inc.
                         f/k/a The Coffee Exchange, Inc.

                           Expiring on March 31, 2014

Warrant No. 2004-1

      This Common Stock  Purchase  Warrant (the  "Warrant")  certifies  that for
value  received,  Trident  Growth Fund,  LP (the  "Holder")  or its assigns,  is
entitled  to  subscribe  for and  purchase  from  the  Company  (as  hereinafter
defined),  in whole or in  part,  250,000  shares  of duly  authorized,  validly
issued,  fully paid and  nonassessable  shares of Common  Stock (as  hereinafter
defined) at an initial  Exercise  Price (as  hereinafter  defined)  per share of
$1.00,  subject,  however,  to the  provisions and upon the terms and conditions
hereinafter  set forth.  The number of Warrants (as  hereinafter  defined),  the
number of shares of Common Stock purchasable  hereunder,  and the Exercise Price
therefore are subject to adjustment as hereinafter set forth. These Warrants and
all rights hereunder shall on March 31, 2014 (the "Expiration Date").

                                    ARTICLE I

                                   Definitions

      As used  herein,  the  following  terms shall have the  meanings set forth
below:

      I.1  "Company"  shall  mean  Touchstone  Resources  USA,  Inc.  a Delaware
corporation,  and shall also include any  successor  thereto with respect to the
obligations hereunder, by merger, consolidation or otherwise.

<PAGE>

      I.2 "Common  Stock"  shall mean and include the  Company's  common  stock,
$0.001  par value per share,  authorized  on the date of the  original  issue of
these  Warrants  and  shall  also  include  (i) in case  of any  reorganization,
reclassification,  consolidation,  merger,  share exchange or sale,  transfer or
other disposition of assets, the stock or other securities  provided for herein,
and (ii) any other  shares of common stock of the Company into which such shares
of Common Stock may be converted.

      I.3 "Exercise  Price" shall mean the initial  purchase  price of $1.00 per
share of Common Stock payable upon  exercise of the  Warrants,  as adjusted from
time to time pursuant to the provisions hereof.

      I.4 "Market  Price" for any day, when used with reference to Common Stock,
shall mean the price of said Common  Stock  determined  by reference to the last
reported sale price for the Common Stock on such day on the principal securities
exchange  on which the Common  Stock is listed or  admitted  to trading or if no
such sale takes  place on such date,  the  average of the  closing bid and asked
prices  thereof as  officially  reported,  or, if not so listed or  admitted  to
trading on any securities exchange,  the last sale price for the Common Stock on
the National  Association of Securities  Dealers  national market system on such
date,  or, if there  shall  have been no  trading  on such date or if the Common
Stock  shall not be listed on such  system,  the  average of the closing bid and
asked prices in the over-the-counter market as furnished by any NASD member firm
selected  from time to time by the  Company  for such  purpose or, if the Common
Stock  is not  traded,  then  such  price  as is  reasonably  determined  by the
Company's Board of Directors.

      I.5  "Warrant"  shall mean the right upon exercise to purchase one Warrant
Share.

      I.6 "Warrant  Shares"  shall mean the shares of Common Stock  purchased or
purchasable by the holder hereof upon the exercise of the Warrants.

                                   ARTICLE II

                              Exercise of Warrants

      II.1 Method of Exercise.  The Warrants represented hereby may be exercised
by the holder hereof,  in whole or in part, at any time and from time to time on
or after the date hereof until 5:00 p.m., Houston, Texas time, on the Expiration
Date. To exercise the Warrants,  the holder hereof shall deliver to the Company,
at the Warrant Office designated herein, (i) a written notice in the form of the
Subscription Notice attached as an exhibit hereto,  stating therein the election
of  such  holder  to  exercise  the  Warrants  in  the  manner  provided  in the
Subscription  Notice;  (ii) payment in full of the Exercise Price (A) in cash or
by bank check for all  Warrant  Shares  purchased  hereunder,  or (B)  through a
"cashless" or "net-issue"  exercise of each such Warrant ("Cashless  Exercise");
the holder shall exchange each Warrant  subject to a Cashless  Exercise for that
number of Warrant Shares  determined by multiplying the number of Warrant Shares
issuable hereunder by a fraction, the numerator of which shall be the difference
between (x) the Market Price and (y) the Exercise  Price for each such  Warrant,
and the denominator of which shall be the Market Price; the Subscription  Notice

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shall set forth the  calculation  upon which the Cashless  Exercise is based, or
(C) a combination of (A) and (B) above;  and (iii) these Warrants.  The Warrants
shall be deemed to be  exercised  on the date of receipt  by the  Company of the
Subscription Notice, accompanied by payment for the Warrant Shares and surrender
of these  Warrants,  as  aforesaid,  and such date is  referred to herein as the
"Exercise  Date".  Upon  such  exercise,  the  Company  shall,  as  promptly  as
practicable  and in any event within five  business  days,  issue and deliver to
such holder a  certificate  or  certificates  for the full number of the Warrant
Shares purchased by such holder hereunder,  and shall,  unless the Warrants have
expired,  deliver to the holder hereof a new Warrant  representing the number of
Warrants,  if any,  that shall not have been  exercised,  in all other  respects
identical to these Warrants. As permitted by applicable law, the person in whose
name the  certificates for Common Stock are to be issued shall be deemed to have
become a holder of record of such Common Stock on the Exercise Date and shall be
entitled to all of the benefits of such holder on the Exercise  Date,  including
without  limitation the right to receive  dividends and other  distributions for
which the record date falls on or after the Exercise Date and to exercise voting
rights.

      II.2  Expenses  and Taxes.  The Company  shall pay all  expenses and taxes
(including,  without  limitation,  all  documentary,  stamp,  transfer  or other
transactional  taxes) other than income taxes  attributable to the  preparation,
issuance or delivery of the Warrants and of the shares of Common Stock  issuable
upon exercise of the Warrants.

      II.3 Reservation of Shares. As of June 30, 2004, the Company shall reserve
at all times so long as the Warrants  remain  outstanding,  free from preemptive

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<PAGE>

rights,  out of its authorized but unissued  shares of Common Stock,  solely for
the purpose of effecting  the exercise of the Warrants,  a sufficient  number of
shares of Common Stock to provide for the exercise of the Warrants.

      II.4 Valid  Issuance.  All shares of Common  Stock that may be issued upon
exercise of the Warrants  will,  upon issuance by the Company and payment by the
Holder  pursuant  to II.1  above,  be duly and  validly  issued,  fully paid and
nonassessable  and free from all taxes,  liens and charges  with  respect to the
issuance  thereof and,  without  limiting the generality of the  foregoing,  the
Company  shall  take no action or fail to take any  action  which  will  cause a
contrary result (including,  without limitation, any action that would cause the
Exercise Price to be less than the par value, if any, of the Common Stock).

      II.5 Loan  Agreement.  The  Warrants  represented  hereby  were  issued on
conjunction  with a Loan  Agreement  dated  around  March 23,  2004  (the  "Loan
Agreement")  between the Company and the Holder. The Holder shall be entitled to
the rights to  registration  under the Securities  Act and any applicable  state
securities or blue sky laws to the extent set forth in the  registration  rights
provision  found in the Loan  Agreement.  The terms of the  registration  rights
provisions  are  hereby  incorporated  herein  for all  purposes  and  shall  be
considered a part of this Warrant as if they had been fully set forth herein.

      II.6 Acknowledgment of Rights. At the time of the exercise of the Warrants
in accordance  with the terms hereof and upon the written  request of the holder
hereof,  the Company will  acknowledge in writing its  continuing  obligation to
afford to such holder any rights (including,  without  limitation,  any right to
registration  of the Warrant  Shares) to which such holder shall  continue to be
entitled  after  such  exercise  in  accordance  with  the  provisions  of these
Warrants;  provided,  however,  that if the Holder hereof shall fail to make any
such  request,  such failure shall not affect the  continuing  obligation of the
Company to afford to such Holder any such rights.

      II.7 No  Fractional  Shares.  The  Company  shall not be required to issue
fractional  shares of Common  Stock on the exercise of these  Warrants.  If more
than one Warrant  shall be  presented  for exercise at the same time by the same
holder,  the number of full shares of Common Stock which shall be issuable  upon
such exercise  shall be computed on the basis of the  aggregate  number of whole
shares of Common Stock purchasable on exercise of the Warrants so presented.  If
any fraction of a share of Common Stock would, except for the provisions of this
Section,  be issuable on the exercise of this Warrant,  the Company shall pay an
amount in cash  calculated by it to be equal to the Market Price of one share of
Common Stock at the time of such exercise  multiplied by such fraction  computed
to the nearest whole cent.

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<PAGE>

                                   ARTICLE III

                                    Transfer

      III.1 Warrant  Office.  The Company  shall  maintain an office for certain
purposes specified herein (the "Warrant  Office"),  which office shall initially
be the Company's offices at 1111 Presidential  Blvd.,  Suite 165 Bala Cynwyd, PA
19004  and may  subsequently  be such  other  office  of the  Company  or of any
transfer agent of the Common Stock in the continental  United States as to which
written  notice has  previously  been given to the  Holder.  The  Company  shall
maintain,  at the  Warrant  Office,  a register  for the  Warrants  in which the
Company  shall  record  the name and  address  of the Person in whose name these
Warrants  has been  issued,  as well as the name and  address of each  permitted
assignee of the rights of the registered owner hereof.

      III.2 Ownership of Warrants.  The Company may deem and treat the Person in
whose name the  Warrants  are  registered  as the holder and owner  hereof until
provided  with notice to the  contrary.  The  Warrants  may be  exercised  by an
assignee for the purchase of Warrant Shares without having new Warrants issued.

      III.3  Restrictions  on  Transfer  of  Warrants.  These  Warrants  may  be
transferred,  in whole or in  part,  by the  Holder,  subject  only to  transfer
restrictions  imposed by  applicable  securities  laws.  The  Company  agrees to
maintain at the Warrant  Office books for the  registration  and transfer of the
Warrants.  The Company,  from time to time,  shall  register the transfer of the
Warrants in such books upon  surrender  of this  Warrant at the  Warrant  Office
properly  endorsed or  accompanied  by  appropriate  instruments of transfer and
written  instructions  for transfer.  Upon any such transfer and upon payment by
the holder or its  transferee of any  applicable  transfer  taxes,  new Warrants
shall be issued  to the  transferee  and the  transferor  (as  their  respective
interests  may appear) and the  surrendered  Warrants  shall be cancelled by the
Company.  The Company shall pay all taxes (other than securities  transfer taxes
or income taxes) and all other expenses and charges  payable in connection  with
the transfer of the Warrants pursuant to this Section.

      III.4  Compliance  with  Securities  Laws.  Subject  to the  terms  of the
Registration Rights Agreement and notwithstanding any other provisions contained
in these  Warrants,  the  Holder  understands  and  agrees  that  the  following
restrictions  and  limitations  shall be applicable to all Warrant Shares and to
all resales or other transfers thereof pursuant to the Securities Act:

            III.4.1 The holder hereof agrees that the Warrant  Shares may not be
sold or otherwise transferred unless the Warrant Shares are registered under the
Securities  Act and applicable  state  securities or blue sky laws or are exempt
therefrom.

            III.4.2 A legend in substantially  the following form will be placed
on the certificate(s) evidencing the Warrant Shares:

         "THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT
         BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT OF  1933,  AS
         AMENDED (THE  "SECURITIES  ACT"),  OR ANY OTHER  APPLICABLE
         SECURITIES LAW AND, ACCORDINGLY, THE SECURITIES REPRESENTED
         BY  THIS  CERTIFICATE  MAY  NOT  BE  RESOLD,   PLEDGED,  OR
         OTHERWISE  TRANSFERRED,  EXCEPT  PURSUANT  TO AN  EFFECTIVE
         REGISTRATION  STATEMENT,  OR IN A  TRANSACTION  EXEMPT FROM
         REGISTRATION  UNDER THE  SECURITIES  ACT AND IN  ACCORDANCE
         WITH ANY OTHER APPLICABLE SECURITIES LAWS."

                                   ARTICLE IV

                                  Anti-Dilution

            IV.1 If and whenever any Additional Common Stock (as herein defined)
shares  shall  be  issued  by  the  Company  (the  "Stock  Issue  Date")  for  a
consideration per share less than the Exercise Price, then in each such case the
initial  Exercise  Price shall be reduced to a new  Exercise  Price in an amount
equal to the  consideration per share received by the Company for the additional
shares of Common  Stock then issued and the number of shares  issuable to Holder
upon conversion shall be proportionately  increased;  and, in the case of shares
issued  without  consideration,  the initial  Exercise Price shall be reduced in
amount and the number of shares issued upon conversion  shall be increased in an
amount so as to maintain for the Holder the right to exercise  into shares equal
in amount to the same percentage  interest in the Common Stock of the Company as
existed for the Holder immediately preceding the Stock Issue Date.

            IV.2 Sale of Shares:  In case of the issuance of  Additional  Common
Stock for a consideration  part or all of which shall be cash, the amount of the
cash  consideration  therefore  shall be  deemed  to be the  amount  of the cash

                                       5
<PAGE>

received by Company for such shares,  after any  compensation or discount in the
sale,  underwriting  or purchase  thereof by  underwriters  or dealers or others
performing   similar  services  or  for  any  expenses  incurred  in  connection
therewith.  In case of the issuance of any shares of Additional Common Stock for
a consideration part or all of which shall be other than cash, the amount of the
consideration  therefore,  other than cash,  shall be deemed to be the then fair
market value of the property  received as determined  by an  investment  banking
firm selected by Lender.

            IV.3  Reclassification of Shares: In case of the reclassification of
securities  into shares of Common  Stock,  the shares of Common  Stock issued in
such  reclassification  shall be deemed to have been issued for a  consideration
other than cash.  Shares of Additional Common Stock issued by way of dividend or
other  distribution on any class of stock of the Company shall be deemed to have
been issued without consideration.

            IV.4  Split  up  or  Combination  of  Shares:  In  case  issued  and
outstanding  shares  of  Common  Stock  shall be  subdivided  or split up into a
greater  number of shares of the  Common  Stock,  the  Exercise  Price  shall be
proportionately  decreased,  and in case issued and outstanding shares of Common
Stock shall be combined  into a smaller  number of shares of Common  Stock,  the
Exercise Price shall be proportionately increased, such increase or decrease, as
the case may be,  becoming  effective  at the time of record of the  split-up or
combination, as the case may be.

            IV.5  Exceptions:  The term  "Additional  Common Stock" herein shall
mean in the most broadest sense all shares of Common Stock  hereafter  issued by
the Company (including,  but not limited to Common Stock held in the treasury of
the Company and common stock  purchasable  via derivative  security or option on
the date of such grant ), except  Common  Stock issued upon the exercise of this
warrant or the Convertible Notes.

            IV.6 In the event of distribution to all Common Stock holders of any
stock,  indebtedness  of the  Company  or  assets or other  rights  to  purchase
securities or assets,  then,  after such event, the Exercise Price reduced to so
as to entitle the Holder to the economic  interest he had  immediately  prior to
the occurrence of such event.

            IV.7 In case of any capital reorganization,  reclassification of the
stock of the Company (other than a change in par value or as a result of a stock
dividend,  subdivision,  split up or combination of shares),  the Exercise Price
reduced  to so as to  entitle  the  Holder  to  the  economic  interest  he  had
immediately  prior to the  occurrence  of such event.  The  provisions  of these
foregoing   sentence  shall  similarly  apply  to  successive   reorganizations,
reclassifications,   consolidations,   exchanges,  leases,  transfers  or  other
dispositions or other share exchanges.

            IV.8  Notice  of  Adjustment.  (A) In the event  the  Company  shall
propose to take any action which shall result in an  adjustment  in the Exercise
Price,  the Company shall give notice to the Holder,  which notice shall specify
the record date,  if any, with respect to such action and the date on which such
action is to take place.  Such notice shall be given on or before the earlier of

                                       6
<PAGE>

10 days  before the record  date or the date which such  action  shall be taken.
Such notice shall also set forth all facts (to the extent known) material to the
effect of such action on the  Exercise  Price and the  number,  kind or class of
shares or other securities or property which shall be deliverable or purchasable
upon the occurrence of such action or deliverable  upon exercise of this warrant
(B)  Following  completion  of an event  wherein  the  Exercise  Price  shall be
adjusted,  the Company  shall  furnish to the Holder a  statement,  signed by an
authorized  officer of the Company of the facts  creating  such  adjustment  and
specifying the resultant adjusted Exercise Price then in effect.

                                    ARTICLE V

                                  Miscellaneous

      V.1 Entire  Agreement.  These  Warrants,  together wit the Loan Agreement,
contain  the entire  agreement  between the holder  hereof and the Company  with
respect to the Warrant Shares  purchasable  upon exercise hereof and the related
transactions  and  supersedes  all prior  arrangements  or  understandings  with
respect thereto.

      V.2  Governing  Law.  This warrant  shall be governed by and  construed in
accordance  with the laws of the State of Texas in the courts located in Dallas,
Texas.

      V.3 Waiver and  Amendment.  Any term or provision of these Warrants may be
waived at any time by the party which is entitled  to the  benefits  thereof and
any term or provision of these  Warrants may be amended or  supplemented  at any
time by agreement of the holder  hereof and the Company,  except that any waiver
of any term or condition, or any amendment or supplementation, of these Warrants
shall be in  writing.  A waiver of any breach or  failure to enforce  any of the
terms or  conditions  of these  Warrants  shall not in any way effect,  limit or
waive a  party's  rights  hereunder  at any time to  enforce  strict  compliance
thereafter with every term or condition of these Warrants.

      V.4  Illegality.  In the  event  that  any one or  more of the  provisions
contained  in this  Warrant  shall  be  determined  to be  invalid,  illegal  or
unenforceable  in any  respect  for  any  reason,  the  validity,  legality  and
enforceability  of any such  provision  in any other  respect and the  remaining
provisions  of these  Warrants  shall not, at the election of the party for whom
the benefit of the provision exists, be in any way impaired.

      V.5 Copy of  Warrant.  A copy of these  Warrants  shall be filed among the
records of the Company.

      V.6 Notice. Any notice or other document required or permitted to be given
or delivered to the holder  hereof shall be in writing and delivered at, or sent
by certified or registered mail to such holder at, the last address shown on the
books of the Company  maintained at the Warrant Office for the  registration  of

                                       7
<PAGE>

these  Warrants or at any more recent  address of which the holder  hereof shall
have notified the Company in writing.

      V.7  Limitation  of  Liability;  Not  Stockholders.  No provision of these
Warrants  shall be construed as  conferring  upon the holder hereof the right to
vote,  consent,  receive  dividends  or receive  notices  (other  than as herein
expressly  provided) in respect of meetings of stockholders  for the election of
directors of the Company or any other matter  whatsoever as a stockholder of the
Company. No provision hereof, in the absence of affirmative action by the holder
hereof to purchase shares of Common Stock, and no mere enumeration herein of the
rights or privileges of the holder  hereof,  shall give rise to any liability of
such  holder  for the  purchase  price of any  shares  of  Common  Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

      V.8 Exchange, Loss, Destruction, etc. of Warrant. Upon receipt of evidence
reasonably  satisfactory  to the  Company  of the  loss,  theft,  mutilation  or
destruction  of  these  Warrants,  and in the case of any  such  loss,  theft or
destruction  upon delivery of an appropriate  affidavit in such form as shall be
reasonably satisfactory to the Company and include reasonable indemnification of
the Company,  or in the event of such mutilation upon surrender and cancellation
of these Warrants, the Company will make and deliver new Warrants of like tenor,
in lieu of such lost,  stolen,  destroyed  or mutilated  Warrants.  Any Warrants
issued under the  provisions of this Section in lieu of any Warrants  alleged to
be lost,  destroyed  or  stolen,  or in lieu of any  mutilated  Warrants,  shall
constitute an original contractual  obligation on the part of the Company. These
Warrants shall be promptly  canceled by the Company upon the surrender hereof in
connection  with any exchange or  replacement.  The Company  shall pay all taxes
(other than  securities  transfer  taxes or income taxes) and all other expenses
and charges payable in connection with the  preparation,  execution and delivery
of Warrants pursuant to this Section.

      V.9 Headings.  The Article and Section and other  headings  herein are for
convenience  only and are not a part of this  Warrant  and shall not  affect the
interpretation thereof.

      IN WITNESS  WHEREOF,  the Company has caused this  Warrant to be signed in
its name dated March 23, 2004

                                          Touchstone Resources USA, Inc.

                                         /s/ Stephen P. Harrington
                                         --------------------------------------
                                         Stephen P. Harrington

                                       8
<PAGE>

                               SUBSCRIPTION NOTICE

       The undersigned,  the holder of the foregoing Warrants,  hereby elects to
exercise purchase rights  represented  thereby for, and to purchase  thereunder,
shares of the Common Stock covered by such Warrants,  and herewith makes payment
in full for such shares, and requests (a) that certificates for such shares (and
any other securities or other property issuable upon such exercise) be issued in
the name of, and  delivered to, and (b), if such shares shall not include all of
the shares  issuable  as provided in such  Warrants,  that new  Warrants of like
tenor and date for the balance of the shares issuable thereunder be delivered to
the undersigned.

Date:
     -----------------------------------------

                                       9
<PAGE>

                                   ASSIGNMENT

      For value  received,__________________________,  hereby sells, assigns and
transfers  unto these  Warrants,  together  with all rights,  title and interest
therein, and does irrevocably constitute and appoint ___________________________
attorney, to transfer such Warrants on the books of the Company, with full power
of substitution.

Date:
     ---------------------------------

                                       10

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